When it comes to ubiquitous fame and notoriety, nothing has upped the ante like the Internet. If you’ve got something to say, you’ve got an audience online. And its not just celebs and politicians that own the online communities – even business tycoons have a hand in the game, authoring blogs, posting YouTube clips and appearing as regulars in online chat forums.
A little fame is intoxicating – even liberating. It feels even better when you can spin it into a competitive strategy to raise your company’s stock prices, and undermine your biggest competitor. Case in point: John Mackey, co-founder and CEO of Whole Foods.
But this online personality did things a little differently. He hid his identity.
For the past 8 years Mackey has been an avid poster on Yahoo Finance stock forums. (See LA Times article, CEO postings can be hits or headaches). He wrote under the pseudonym Rahodeb (a play on his wife’s name “Deborah”), and used his online alter-ego to unabashedly attack Whole Food’s most significant competitor in the organic food market – Wild Oats.
Mackey trashed Wild Oats’ management, questioned their corporate structure, and constantly undermined the value of the company’s stock. On the flip side, he praised Whole Foods, commented on the efficacy of his own financial models, predicted stock increases, and even defended his own looks when online posters made fund of his not-so-celebrity hair cut.
Mackey’s online tirades were so supportive of Whole Foods, and so critical of Wild Oats, that a few people started to suspect his real identity. When questioned directly in 2003 by another poster, his response revealed a steadfast and shameless commitment to deception:
"If you really believe I'm John Mackey you should probably pay more attention to what I say on this board. I would be the ultimate Whole Foods Insider!"
Web Postings Can Create Real Liability for Your Organization
Regardless of whether the writer is an employee or the CEO, online postings can create significant liability for your organization. This is especially true when a person’s “private” web authoring walks the knife’s edge between personal and professional life. Many employees include detailed information about their work lives in their blogs, their MySpace profiles and their chat room posts without fully recognizing that a line may have been crossed.
For Whole Foods, the line was crystal clear – and Mackey’s online masquerading was nothing but purposeful. His postings have harmed the reputation of the organization, undermined the general public’s trust in the company, and resulted in very bad press. Mackey’s deceptive rants may also derail Whole Foods’ attempt to acquire Wild Oats. (See Guardian Unlimited’s article Takeover at risk from Whole Foods boss’s web ranks). Only time will tell how the FTC will react to Mackey’s antics.
Online postings like Mackey’s can also create serious legal risks for an organization – from defamation and loss of trade secrets, to improper disclosure of confidential information and violations of antitrust and insider trading laws.
An Employer’s Best Defense
The best way to head off problems (and to protect your organization’s reputation and integrity) is to let your employees know the do’s and don’ts of online conduct.
While those employees intent on engaging in deception may not be completely deterred by some of the basics detailed below, you can make an impact on the most common online transgressors -- employees who are unaware of the rules, or the risks they may be creating for them themselves, as well as the organization. And with these basic steps, even your conscious offenders will at least know the potential consequences of their behavior.
Step One: Develop a Comprehensive “Cyber” Policy (or Electronic Resources Policy)
A forward thinking policy should:
- Address the employer’s right to control communications; dispel “free speech” myths
- Set clear rules for making statements about the workplace, employees, clients etc.
- Set clear rules about accessing sites during working time
- Explain privacy rights and responsibilities
- Remind employees about trademark and confidentiality issues
- Clearly explain the consequences for violating the policy
Step Two: Periodically Train Your Employees So They Understand the Policy and Your Expectations
Trainings should at a minimum:
- Explain workplace rules
- Demonstrate how off-duty conduct can create workplace issues
- Explain the risk of certain forms of online expression
- Address new technologies (like blogs and social networking sites), but always tie them back to core values that do not change
- Clearly describe the consequences for policy violations