Risks in Social Media

Social Media final presentation risks

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Buzz In... Buzz Out...

Chavez anti-American sentiments
have undermined Citgo's image.

The buzz in social media about most companies presented in our class' monitoring assignment originates from situations related to customer service. In the case of Citgo, the root of its not-so-good public image relies in the continuous anti-American slogans by Venezuelan President Hugo Chavez and his threats of suspending the flow of crude to the US.

The Citgo sign over Fenway Park has
been a Boston landmark for decades.

Citgo is a formerly American company headquartered in Houston. It is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. It has been wholly owned by PDV America, a subsidiary of Petróleos de Venezuela, S.A. (PDVSA) since 1990. PDVSA is Venezuela’s state-owned petroleum company.

Citgo’s public image took a nosedive when Venezuelan President Chavez called then President George W. Bush a devil and an alcoholic during a speech in the United Nations. Immediately after Chavez's speech, a groundswell emerged urging a Citgo boycott, the removal of Citgo service stations from the Florida’s turnpike, the cancelation of 7-Eleven contracts with stores with Citgo and even the removal of the famous Citgo sign outside Fenway Park.

Since 2006, the buzz about Citgo has steadily decreased.

To alleviate the social media turmoil, Citgo issued press releases and invested heavily in an advertising to portray it as a good corporate citizen. For example, Citgo ran several full-page ads in two major newspapers in Boston, advertising its deliveries of free oil to poor New England residents, promoting the move as “humanitarian aid” and a “simple act of generosity.” Although those good deeds appeared to not be enugh to convince everybody in the US to continue their support for the company, following Chavez condemnation of all things American, they did help diminish public criticism of the company.

Fueling Good campaign helps Citgo create a positive buzz,
before winter cold, as evidenced by Compete.com.

This strategy has worked, as the buzz about Citgo has diminished since steadily since 2006 (the year of the incident at the United Nations), as reported by Icerocket. It can be said that the campaigns against Citgo did not have much impact. The company didn't have to deal with a boycott and it gasoline sales continue to do well as most consumers base on price and convenience their purchases of gasoline.

Many critics suggest the Fueling Good campaign is simply a ploy to take consumers’ minds off of record high oil prices and its anti-American tendencies, but at the same time the campaign has achieved to reduce negative comments about Citgo as it is portrayed as helping underprivileged people. Fueling Good is a campaign that gives non-profit organizations a chance to win Citgo fuel simply by telling their do-gooding stories on their website. The success of this campaign can be evidenced by the fact that President Chavez was awarded the United Nations' Jose Marti prize for promoting Latin American unity.This award proves that an intelligent use of social media can help create a positive buzz or mitigate the effects of a negative one, even when a company's top management conspire against the company's public image or do not attempt to embrace the groundswell. It also proves the power of social media, as we have agreed in our class discussions.

Citgo needs to track "people-to-people" activities in order to detect patterns of technology behavior, continuing to target its most loyal customers, employees, political and business allies. 

In the US Citgo has gained support from
customers, business and political allies.

A recent glance at Citgo’s Twitter news feed and Facebook pages show an abundance of self-promotional updates, but not a single acknowledgement of recent image problems.

Citgo promotes its Fueling Good campaign in its
recently designed Facebook page.

Citgo has been cited for its lack of environmental reporting. It does not report its total greenhouse gas emissions (something that every other company reported one way or another). Also, it was charged with negligent discharge of pollutants in two rivers in Louisiana, resulting in the largest fine ever for a criminal misdemeanor violation of the Clean Water Act, and it faces a lawsuit for conspiring to drive up the price of fuel.

Citgo's old Facebook page

Citgo uses self-promotional updates.

Citgo already tried to avoid the many risks related to social media use by attempting to ban employees from accessing social media on company time or equipment and by retaliating against citizens criticizing Chavez or Venezuelan government policies and officials in social media. However, failing to exploit the opportunities social media provides for building a brand, attracting new customers, and retaining current customers exposes companies to risks, too, especially when Chavez continues to be a big, sloppy elephant in Citgo’s room.

Attempting to ban people’s participation in social media ignores the positive effects of using a powerful channel appropriately to build relationships with stakeholders, customers, potential employees, and other affiliates, as we learned while reading the book Groundswell. Citgo would give up the ability to use a potent communication tool and expand its reach a quick and cost-effective manner.

Whether Citgo management and President Chavez want it or not, social media channels have become part of social interaction for an increasing segment of the population and it’s impossible to put the social media genie back in the bottle. As we have learned through the class, organizations that formally assess the risks of social media and implement guidelines that promote its responsible use will be better equipped to reap the benefits of these new tools.

Social Mention reports Citgo generates a steady traffic with small variations.

Although other companies might have worse public images than Citgo (Bank of America, Direct Air, Charter, Wal-Mart and BP come rapidly to mind), Citgo could still benefit from attempting to repair its image.The question is how Citgo can revive its public image. There are several possibilities. 

Citgo has many options to improve its
image by using social media and listening.

The first thing I’d recommend Citgo is to stop worrying about salvaging their public image in the US. I’m afraid that ship has already sailed, as evidenced by the refusal of free home-heating oil by Citgo by natives in remote Alaskan villages or the fact that even many Venezuelan nationals would support a boycott of Citgo to prevent Chavez from receiving more money to support his communist revolution. If Citgo genuinely uses its communications with the public to help ease people’s lives and solve problems, eventually, they may find that ship returning to port.

"Fueling Good" campaign has been costly
but beneficial for Citgo's image

The second thing I’d recommend Citgo is to stop buying ads to tell people how good Citgo is. There is plenty of press out there to cover that. Buying advertising to inform people is self-serving, and a waste of money. It hasn't worked for BP; it won’t work for Citgo.

Finally, I'd suggest Citgo to continue its “Fueling Good” campaign. I think Citgo could do weekly briefings, and give the press abundant access to participants in Citgo campaigns to help the poor. I believe the more forthcoming the target of public scrutiny is, the less suspicious they appear to people. There is some damage that can’t be undone: the insults to US presidents, the aid to countries opposing the US, the threats to cut supply of oil. Revisiting those issues would be like pouring lemon juice over a paper cut.

CITGO

I decided to monitor oil company Citgo for several reasons. First, Citgo is Venezuelan, just like I am. Second, I expected to find an intensive media battle between Citgo, its customers and US and Venezuelan government officials. Thirdly, I expected to see a creative use of the groundswell by all sides in a dispute generated by the use of Citgo as a political tool. In some cases I found what I expected, in others I was surprised.

Citgo is a formerly American company headquartered in Houston. It is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. It has been wholly owned by PDV America, a subsidiary of Petróleos de Venezuela, S.A. (PDVSA) since 1990. PDVSA is Venezuela’s state-owned petroleum company.

Venezuela is located in the northern tip of South America. For many years before Chavez it had been a dependable provider of crude oil to the US and many other countries. Politically it has drifted away from the US and neighboring Colombia, its two most important business partners, and forged close ties with Belarus, China, Cuba, Iran, Nicaragua and even Northern Korea.

Since 2006 the buzz about Citgo has steadily declined,
as reported by the search engine Icerocket.

Most of the controversy surrounding Citgo began six years ago, and the buzz about it has been declining every year. The crisis began in 2006 when, during a speech in the United Nations, Venezuelan President Hugo Chavez insulted then US President George W. Bush by calling him the devil and alcoholic. `Listen to me, Mr. Bush, Mr. Danger,'' Chavez said when he threatened to cut Venezuelan oil exports to the U.S, a threat that has been repeated many times during the last decade. Venezuela is the US fourth-biggest supplier of foreign crude. 

Venezuela's President Chavez calls US President George W. Bush "The Devil"

Chavez has always been an effusive anti-American. He began using Citgo as a political tool since he became Venezuela’s president in 1999. Chavez has achieved absolute power all over state institutions that might check his power. He controls the legislature, the Supreme Court, the institution that monitors electoral rules and the armed forces. 

Venezuela’s government attempted to scare people away from denouncing through social media corruption and political activism in Citgo. Chavez’s government enacted media laws allowing the government to supervise media content. Also, a revised criminal court permit the government to imprison any citizen for showing “disrespect” toward government officials in public media. There is also political retaliation. For example, because I signed a referendum to ask for the early removal of Chavez from office, I cannot work for any public institution nor receive credit from any public bank.

When people continued to blog and tweet inviting customers to boycott Citgo, Venezuelan government compiled and posted on the internet lists of voters and political tendencies (including whether they comment negatively on Citgo, Chavez or any state official or institution. In this way, Venezuela’s government achieved reverse accountability: the government is watching and punishing citizens and companies for political actions it disapproves of rather than the other way around.

But these measures did not affect the groundswell, especially in the US. Many American and Venezuelan citizens started to ask people and business to boycott Citgo and inspired anti-Citgo proposals. For example, a Boston politician wanted to tear down a Citgo sign that’s a prominent landmark on the city’s skyline. Citgo’s service stations were kicked off Florida's Turnpike, where Citgo had operated since 1994. For similar reasons, 7-Eleven dropped Citgo as its gasoline supplier after more than 20 years, as the company feared anti-American comments made by Chavez might prompt motorists to fill-up elsewhere. A 7-Eleven spokesperson said. "Certainly Chavez's position and statements over the past year or so didn't tempt us to stay with Citgo.

Anti-Citgo sentiment

The anti-Citgo reaction was so intense that the company launched a campaign to counteract its effects. Citgo began investing millions of dollars to buy full-page advertisements in major newspapers and TV commercials touting its U.S. employees, its program to provide discounted heating oil to needy Americans, and work on behalf of charitable causes such as disaster relief and fighting muscular dystrophy.

Citgo has failed to create a positive buzz.

In October 2006 Citgo began a campaign called “Fueling Good.”  The program delivers free or cheap heating oil to low-income Americans. It attempted to create a word-of-mouth effect to offset the critical tweets and blogs. The intentions of the partnership are unclear. While the controversial program does offer much-needed relief to poor American families, Venezuela’s president Chavez has been accused of using the program for political grandstanding, attempting to discredit capitalism while building his own power and prestige.

In Masachusetts  Citgo has provided funds for Joe Kennedy, a former US representative. Kennedy has used the proceeds of Chávez’s donated oil to fund millions in advertising for the heating oil charity. Those ads, in turn, prominently feature Mr. Kennedy, often personally delivering Chávez-funded oil to needy recipients in several New England communities. Although the campaign has not created a buzz in favor of Citgo, as we can see by the few "likes" in its Facebook page, it has significantly diminished the negative comments.

There are are many questions on whether Citgo's Free Heating Oil Program is an admirable charity or just political posturing. The program, which delivers free or cheap heating oil to low-income Americans, has been hailed by some as an important humanitarian enterprise. Others call it a ploy by Venezuela’s socialist leader, Hugo Chavez, to discredit America and the capitalist system. 

Analysis of Joe Kennedy's Citgo commercial

Connie Mack, a Florida Republican and U.S. Representative pounded President Barack Obama for his handling of Venezuelan affairs. He also criticized the US President because supposedly he is in negociations with Venezuela's President to dump cheap gas before elections.  I will be listening to what the ground will say.

Two Heads Are Better Than One

After reading the last two chapters of the book by Charlene Li, I remember a quote attributed to both Albert Einstein and Thomas Edison. The quote says, “Genius is 1% inspiration and 99% transpiration." It is based on the idea that to succeed it is not necessary to be geniuses; it’s much better to work hard and with passion.

To me that conviction can be projected to the groundswell thinking, in the sense that successful companies don’t need to have geniuses as employees; the employees only need to work hard at listening to customers and helping their organizations to evolve efficiently in a timely manner.

Of all the principles of groundswell thinking, to me the most important is being a good listener. When employees understand and accept that customers must be part of the innovation process, companies are able to evolve and adapt more quickly. The cooperative interaction between clients and customers promoted by the groundswell creates an enhanced combined effect that can help companies be more successful or productive. 

Customers and employees working together create synergism, defined as a creative cooperation between customers and employees that generates an open-mindedness that allows companies to find new and better solutions. Truly embracing the groundswell help companies discover things that would take time and money without a joint effort with customers.

Before reading chapter 11, I thought that listening to customers would have required large investments, many people and lots of time. I was surprised to learn that in several cases it only took a few weeks, a couple of proactive employees and a computer to establish a listening network that in many cases amounted to the survival of the organizations. When employees begin to interact genuinely with customers, they begin to gain new insight.

The same trends that empower customers in the groundswell also empower employees. When organizations promote the participation of employees in the designing of strategies allow the creation of new approaches and exponentially improve the moral and productivity of the organization. When organizations honestly listen to their employees, it creates an environment where employees want to work. This enthusiasm enables the organization exceptional customer service, not just good customer service.

At the end of the book the authors attempt to predict the future of the groundswell. I agree that through the use of social media techniques it’s possible to revive a dying business, as in the case presented in the book of the owner of a small winery who used blogging to successfully promote his business. But with the speed of technological advances in social media and the growing power of customers, I can only conclude that embracing the groundswell will be more critical for the survival of companies and organizations. Companies and employees need to prepare, accept change and innovation and continue working with customers. After all, "Two Heads Are Better Than One."

Blogging Can Be Dangerous

Most blogs I have read talk about popular subjects such as health, beauty, hobbies and finance. In our class, almost all original blogs have been about entertainment, how to or technological innovations. We all posted our comments and reflections on the groundswell and the growth of social media. But to me it's obvious most take for granted the possibility of constantly being able to blog, tweet, text or email. The fact is that access to social media is not easy in many regions of the world.

 

Journalist Antony Loewenstein, author of The Blogging Revolution,

talks about bloggers around the world who live and write under repressive regimes.

Many bloggers have to struggle to reach their audiences, not because of technological problems or lack of computer skills but because deliberate action on the part of government censors that attempt to block all blogs, tweets and even emails when they consider opposing views might be presented. Many people risk their lives every day by writing blogs, not to entertain or make money but attempting to inform the world about what they consider injustices and political repression in their countries.  A recent report by the Committee to Protect Journalists says more internet journalists are jailed today than journalists in any other medium. 


For example, in Iran Mohamad Nasab was imprisoned for posting an open letter to a religious leader.  His pregnant wife and other bloggers who commented on the arrest were also imprisoned.  In Egypt, Abdul Nabeel and other bloggers were convicted to over four years in prison for criticizing the treatment of women by Hosni Mubarak’s government. In Cuba, Yoani Sanchez and Miriam Celaya have been prosecuted and their blogs blocked from reaching the internet because they speak out against the oppression in the island nation. Fearing the effect of blogs and twitters, the Cuban government has prevented most of its citizens from having access to the Internet. 

As several of my Chinese classmates have confirmed, China’s government monitors electronic communications to censor and limit the flow of information.  The use of words such as “Tiananmen Square” could cause prosecution and even jail time.  Blogger Liu Shaokun received a one year sentence for publishing pictures of a collapsed school in the Sichuan province as the government feared being accused of poor construction. 

Collapsed School in Sichuan Province

In my home country of Venezuela, many bloggers who oppose Hugo Chavez’s government are being persecuted for attempts to bypass government controls of the news and social media.  There are an increasing number of laws to prohibit or restrict the expression of political views through social media, defend political prisoners, report crimes and denounce corruption. Venezuelan blogger Martha Colmenares continuous to report human rights violations, ignoring threats against her and her relatives. Bloggers face similar or worse dangers in many other countries, including Greece, Ecuador, Haiti, Jakarta, Nicaragua, Saudi Arabia, Syria and Vietnam. 

Luckily, no government or organization has found a way to silence social media or even deter its growth. It’s very difficult to stop the millions of people from sharing their opinions and point of views. Perhaps some governments could attempt to block some of the media sites, but those governments are more occupied prosecuting people than developing technical advances to block smart phones, tablets or computers. The preoccupation of these governments to repress bloggers and social media confirm what we have been repeating during the class: using the immense power of social media, ordinary citizen can mobilize the groundswell to challenge the power of giant companies and even powerful governments. Meanwhile, those of us who have the privilege of  access to Internet should continue developing our skills to write professional and effective blogs and learning how to join and influence the groundswell.

Size Does Not Matter

Source: www.metrolic.com

Charles Darwin once said:  “It is not the strongest of the species that survives.  It is the one that is the most adaptable to change.”  After reading chapter nine in the book Groundswell I believe a similar analogy can be applied to companies using social media. 

I think it’s accurate to say that it’s not the biggest companies that survive, but the fastest to adapt to the growing social media environment.  Company's size does not matter to benefit from Social Media.  Not long ago it used to be said that big companies would take over smaller ones.  Not anymore.   Just see what has happened to former giants AOL or MySpace for failing to listen to the groundswell and properly anticipate their competitors.  Even monstrous Walmart has been slow to react to the buzz about accusations it exploits workers and damages local business.

A joke illustrates a point made by this chapter. Once two explorers in Africa heard the ferocious roar of an approaching lion.  One explorer quickly starts putting on running shoes. “You must be crazy if you think you can outrun a Lion” says the second explorer. “I don’t need to outrun the lion” responded the first explorer, “I just have to run faster than you.”  

Source: www.cartoonstock.com

Companies might frequently face  dangers such as consumers’ complaints and questions, but when they embrace the groundswell, they can move more quickly and be more successful that those that ignore consumers.

This chapter goes on to explain that properly embracing the groundswell can turn negative opinion into a passionate support for the company, helping companies spring back from adversity and adapt to new challenges, but only if the company can sincerely demonstrate that it appreciates what its customers say.  “Love is the only force capable of transforming an enemy into a friend,” once said Martin Luther King. In the following video you will be surprised with the reaction of a fierce lion when it's reunited in Colombia with Ana Julia Torres, a woman who saved his life after the lion had escaped from a circus. It made me reflect that wild animals and angry customers can react positively to kindness and sincerity.

Love Changes Attitudes  

In chapter 10 the book explains how connecting with the groundswell can gradually transform any company. It explains that most consumers are willing to talk to companies and say what they want, and frequently they have the knowledge, experience and solutions to solve problems and improve service.  I am living proof of that widely used strategy.  Having spent only one year in Worcester, I have been interviewed and surveyed several times by a variety of industries, from supermarket chains to radio stations.

Source: http://4.bp.blogspot.com

This section of the book presents several companies, including two I used to work for, to illustrate the importance for companies' survival to really listen to the Groundswell and emphasize the convenience of showing feedback online, so customers can see that the companies are responsive.  This reminded me a quote from Jack Welch, former GE's CEO; “The desire, and the ability, of an organization to continuously learn from any ... learning into action - is its ultimate competitive advantage."

Source: http://rlv.zcache.com

In conclusion, size of companies is irrelevant when it has to do with learning to benefit from the groundswell.  What is important for their survival is listening to the groundswell and learning to adapt.  Feedback from customers can help companies from designing products to anticipate problems.

On Valentine's Day, Give Me a Hug, Not an Email

Most people would agree that the Social Media has changed the way we live our lives and the way we relate to others.  Many might say that thanks to Social Media they have more friends.  But to me, more contacts do not necessarily mean more friends. 

In my opinion, personal relations are being negatively affected by the excessive use of technological devices in detriment of personal relationships.  I cannot feel as friends people whose faces I don't know, whose profiles I fear might contain many lies.  Many “likes” can never replace a direct compliment.  Many emails cannot have the same encouraging effect of seeing people’s smiles.  Text messages cannot give me the comfort of holding a friend’s hand.  Perhaps it’s because I come from a very collective culture.

I feel that time that used to be spent talking on the phone or visiting relatives has been replaced with the more common and impersonal texting and instant messaging.  It is evident Facebook or Twitter interferes with many people’s personal relations and even job performance.  People spend several hours a day online, surfing from site to site without a specific purpose.  And I later see the same people complain of not having time to help their children with their homework, visit sick friends or eat with older relatives.

Many of my friends go out and instead of enjoying each other’s companion they constantly check their smart phones and worry if several minutes past before their chat is responded.  What happened to the old fashion but still nice conversation over dinner?  I do not understand how many people can be satisfied to wish a happy birthday with an email instead of giving a warm hug and sharing a piece of cake.  I fondly remember the enjoyment of going out to with a movie or for ice cream, without fearing an interruption from a smartphone or tablet.

Many of classmates cannot stop texting, even in classrooms or while driving, in spite of the risks of flunking the class, getting a traffic ticket or being killed in an accident.

A recent study classifies internet addiction among the top five addictions in America (http://addictnation.org/top-5-addictions-in-the-u-s). 

Internet addiction has caused many divorces.  Facebook has been reported to negatively affect personal relationships.  I like Facebook, but I would not depend on it to keep in touch with friends and family. 

A website called Retrevo reported that half of the people surveyed update their Facebook or Twitter status during the night or first thing in the morning.  About one third of iPhone users confessed to checking these sites before they even got out of bed.

I hope I learn to use and benefit from Social Media.  I agree that many technological changes are good.  That’s why I enrolled in this class.  I want to be an active part of the new world.  In class we have learned the versatility of smart phones and other technological devices to catapult our careers.   But too much of a good thing can also be bad.  I hope when I complete this class I will receive a kiss on the cheek or pat on the back instead of an email or a text message.