Time for another podcast, this time with a Scottish theme. I touch upon how fortunate we are here in Aotearoa to be able to go to the ballet or expos, and, of course, on the US elections (thanks to those who checked out my last podcast entry, which had a record 31 playsâsure beats the single digits!). That leads on to a discussion about A. G. Barr, Richard Madden, and Sir Sean Connery, who never said, ‘The name’s Bond, James Bond.’
My partner Amanda and I are part of Medingeâs presence at Dutch Design Week this year.
Since Medinge couldnât celebrate our 20th anniversary due to COVID-19, some of our Dutch members, helped by many others, took the opportunity to get us into the event, which is virtual this year.
We had done a lot of work on Generation Co earlier in 2020, thanks to a load of Zoom meetings and emails. This takes things even further, but builds on it. The programme can be found here, and is titled âPutting the Planet First: a New Orientationâ.
The description: âInstead of thinking about the 3Psâyour challenge is to adopt a new perspective. Always put Planet first. Then people. Then profit.â
After signing up for free, you can head into our virtual rooms.
From the page: âOnly 21/10/2020, 10:00â13:00 lectures and livestreams from members of the Medinge Think Tank: a group of brand experts and visionaries from around the world whose purpose is to influence business to become more humane and conscious in order to help humanity progress and prosper. With international speakers who have worked on these rights and bring in the perspective from indigenous people who co-exist with the rivers.â
On Tuesday the 21st at 10 a.m. CET is Amandaâs presentation on the Whanganui River, which was given the rights of a legal person in legislation enacted in March 2017.
Amanda worked at the Office of Treaty Settlements at the time, so this is really her talk. I just set the laptop on the table, with a microphone generously lent to me by my friend Brenda Wallace. Then I edited it in video-editing software with all the skill of an amateur.
But thatâs the year of COVID-19 for you.
The way the talk came about was in discussion in 2019 with my colleagues at Medinge Group. The concept of legal rights on natural resources and indigenous rights came up, as did the case of the Whanganui River, which is known beyond our shores.
They had no idea Amanda worked on it, and proudly I mentioned her role.
From then on she was part of the programme, and it all came together last Friday.
In the talk, youâll see me on a much lower chair than her, propped up by a bag of rice that slowly sags as the recording wears on.
Thereâs only so much furniture at her Dadâs studio but it was the most comfortable place we could think of for the filming.
More important are the contents of her talk, which I thoroughly recommend. She worked really hard on the responses over a few weeks to make sure it was thoroughly rigorous.
Itâs followed by a talk from my good friend and colleague Sudhir John Horo. Pop over, itâs going to be a really eventful day in virtual Eindhoven.
I was absolutely shocked to learn this is how Gmail works.
If I read this correctly, #Google lets more than one person use a single email address (in this case, over 200!)? How daft! Why would they do that? pic.twitter.com/KtTO6PnDEI
As youâll read in the thread, this has been confirmed by other Gmail users.
That should rule out ever using Gmail for secure communications. Not that you should be using a service like that for anything important, but the fact is Gmail has become ubiquitous, and I believe a lot of people donât know any better.
Just imagine being able to receive some emails meant for your rival by signing up to an address that varies from it by a full stop or period.
Secondly, we’ve noticed a large amount of spam where we can trace (via Spamcop) the origins back to Gmail. Oftentimes they have Gmail reply addresses, as in the case of 419 scams (where they may use another ISP or email service with a “sacrificial” address to send them). Why would you risk being among that lot?
Add this to the massive list of shortcomings already detailed here and elsewhere and you have a totally unreliable platform that doesnât really give a toss. They didnât care when they removed my friendâs blog in 2009 and then obstructed any attempt to get it back, until a product manager became involved. They didnât care when their website blacklisting service libelled clean sites in 2013, telling people not to visit them or link to them. And they donât care now.
There really is no reason to use Gmail. Youâll risk your emails going to someone else with a similar address, and youâll be among the company of unethical actors. I can truly say that if Gmail werenât this ubiquitous, and used by so many friends, Iâd just set up a rule on our server and block the lot.
I was fascinated to read a New Zealand Herald story on the MÄori asset base, though it wasn’t the financial part that hit me. What was more significant were the principles behind MÄori businesses.
About 15 years ago, when chatting to a woman representing a MÄori winery, I said that she had an amazing opportunity to show that MÄori were far ahead of the game when it came to corporate social responsibility, something that was close to my heart with my work for Medinge Group. Itâs interesting to see that that impression I had in the mid-2000s wasnât wrong, and is now backed up by Dr Maree Roche of Waikato University.
She identifies five values behind MÄori leadership, which blends their needs to support marginalized communities, kaupapa, and contemporary influences.
The values are:
whakaiti (humility): the leader enables others but doesnât take credit themselves;
ko tau rourou and manaakitanga (altruism): ensuring the well-being of others and the generosity of spirit;
whanaungatanga (others): collectivism and relationships with past, present and future generations;
tÄria te wÄ and kaitiakitanga (long-term thinking and guardianship);
tikanga MÄori (cultural authenticity).
Youâll recognize a lot of the same words used in much of Medingeâs work on humanistic branding: the need for serving communities; to consider far more than the immediate quarter (âfinance is brokenâ); and being authentic.
MÄori may find themselves better equipped with their newer organizations to weave in a message about CSR, considering the successful ones already practise it for their own people. Translating that in an export market, for instance, to serving a cause that is of concern to that market, should be comparatively easier than for a company so entrenched in delivering quarterly results to shareholders. Promoting ties between tangata whenua and the export market could be of interest, especially in Asia where many of the same ideas about family, whÄnau and community are shared. They are in an advantageous position and those of us in New Zealand would be foolish to ignore it.
Facebookâs woes over Cambridge Analytica have only prompted one reaction from me: I told you so. While I never seized upon this example, bravely revealed to us by whistleblower Christopher Wylie and reported by Carole Cadwalladr and Emma Graham-Harrison of The Guardian, Facebook has shown itself to be callous about private data, mining preferences even after users have opted out, as I have proved on more than one occasion on this blog. They donât care what your preferences are, and for a long time changed them quietly when you werenât looking.
And itâs nothing new: in October 2010, Emily Steel wrote, in The Wall Street Journal, about a data firm called Rapleaf that harvested Facebook information to target political advertisements (hat tip here to Jack Martin Leith).
Facebook knew of a data breach years ago and failed to report it as required under law. The firm never acts, as we have seen, when everyday people complain. It only acts when it faces potential bad press, such as finally ceasing, after nearly five years, its forced malware downloads after I tipped off Wiredâs Louise Matsakis about them earlier this year. Soon after Louiseâs article went live, the malware downloads ceased.
Like all these problems, if the stick isnât big enough, Facebook will just hope things go away, or complain, as it did today, that itâs the victim. Sorry, youâre not. Youâve been complicit more than once, and violating user privacy, as I have charged on this blog many times, is part of your business practice.
In this environment, I am also not surprised that US$37,000 million has been wiped off Facebookâs value and CEO Mark Zuckerberg saw his net worth decline by US$5,000 million.
Those who kept buying Facebook shares, I would argue, were unreasonably optimistic. The writing surely was on the wall in January at the very latest (though I would have said it was much earlier myself), when I wrote, âAll these things should have been sending signals to the investor community a long time ago, and as weâve discussed at Medinge Group for many years, companies would be more accurately valued if we examined their contribution to humanity, and measuring the ingredients of branding and relationships with people. Sooner or later, the truth will out, and finance will follow what brand already knew. Facebookâs record on this front, especially when you consider how we at Medinge value brands and a companyâs promise-keeping, has been astonishingly poor. People do not trust Facebook, and in my book: no trust means poor brand equity.â
This sounds like my going back to my very first Medinge meeting in 2002, when we concluded, at the end of the conference, three simple words: âFinance is broken.â Itâs not a useful measure of a company, certainly not the human relationships that exist within. But brand has been giving us this heads-up for a long time: if you canât trust a company, then it follows that its brand equity is reduced. That means its overall value is reduced. And time after time, finance follows what brand already knew. Even those who tolerate dishonestyâand millions doâwill find it easy to depart from a product or service along with the rest of the mob. Thereâs less and less for them to justify staying with it. The reasons get worn down one by one: Iâm here because of my kidsâtill the kids depart; Iâm here because of my friendsâtill the friends depart. If you don’t create transparency, you risk someone knocking back the wall.
We always knew Facebookâs user numbers were bogus, considering how many bots there are on the system. It would be more when people wanted to buy advertising, and it would be less when US government panels charged with investigating Facebook were asking awkward questions. I would love to know how many people are really on there, and the truth probably lies between the two extremes. Facebook probably should revise its claimed numbers down by 50 per cent.
Itâs a very simplified analysisâof course brand equity is made up of far more than trustâand doubters will point to the fact Facebookâs stock had been rising through 2017.
But, as I said, finance follows brand, and Facebook is fairly under assault from many quarters. It has ignored many problems for over a decade, its culture borne of arrogance, and you can only do this for so long before people wise up. In the Trump era, with the US ever more divided, there were political forces that even Facebook could not ignore. Zuckerberg wonât be poor, and Facebook, Inc. has plenty of assets, so theyâre not going away. But Facebook, as we know it, isnât the darling that it was a decade ago, and what we are seeing, and what I have been talking about for years, are just the tip of the iceberg.
Mark Zuckerbergâs promise to fix Facebook in 2018 is, in my opinion, too little, too late.
However, since I ceased updating my Facebook profile last month, Iâve come across many people who tell me the only reason they stay on it is to keep in touch with family and friends, so Zuckerbergâs intention to refocus his site on that is the right thing to do. Heâs also right to admit that Facebook has made âerrors enforcing our policies and preventing misuse of our tools.â
Interestingly, Facebookâs stock has fallen since his announcement, wiping milliards off Zuckerbergâs own fortune. Investors are likely nervous that this refocusing will hurt brands who pay to advertise on the platform, who might now reconsider using it. Itâs a decidedly short-term outlook based on short-term memory, but thatâs Wall Street for you. Come to think of it, thatâs humanity for you.
But letâs look at this a bit more dispassionately. Despite my no longer updating Facebook, Iâm continuing to get a lot of friend requests. And those requests are coming from bots. Facebook hasnât fixed its bot problemâfar from it. This reached epidemic levels in 2014, and itâs continued in 2018âfour years and one US presidential election later. As discussed earlier on this blog, Facebook has been found to have lied about user numbers: it claims more people in certain demographics than there are people. If its stock was to fall, that should have done it. But nothing happened: investors are keen to maintain delusions if it helps their interests. But it needs to be fixed.
If Zuckerberg is sincere, Facebook also needs to fix its endless databasing issues and to come clean on its bogus malware warnings, forcing people to download âscannersâ that are hidden on their computers. This should have hit the tech media but no one seems to have the guts to report on it. Thatâs not a huge deal, I suppose, since it has meant tens of thousands have come to my blog instead, but again, that was a big red flag that, if reported, should have had investors worried. And that needs to be fixed.
Others Iâve discussed this with inform me that Facebook needs to do a far better job of removing porn, including kiddie porn, and if it werenât for a lot of pressure, it tends to leave bullying and sexist comments up as well.
All these things should have been sending signals to the investor community a long time ago, and as weâve discussed at Medinge Group for many years, companies would be more accurately valued if we examined their contribution to humanity, and measuring the ingredients of branding and relationships with people. Sooner or later, the truth will out, and finance will follow what brand already knew. Facebookâs record on this front, especially when you consider how we at Medinge value brands and a companyâs promise-keeping, has been astonishingly poor. People do not trust Facebook, and in my book: no trust means poor brand equity.
But the notion that businesses will suddenly desert Facebook is an interesting one to me, because, frankly, Facebook has been a lousy referrer of traffic, and has been for years. We have little financial incentive to remain on the site for some of our ventures.
Those of us with functioning memories will remember when Facebook killed the sharing from our fan pages by 90 per cent overnight some years ago. The aim was to get us to pay for sharing, and for many businesses, that worked.
But it meant users who wanted to hear from these brands no longer did, and I believe thatâs where the one of the first declines began.
People support brands for many reasons but Iâm willing to bet that their respective advertising budgets isnât one of them. They follow them for their values and what they represent. Or they follow them for their products and services. Those who couldnât afford to advertise, or opted to spend outside social media, lost a link with those users. And I believe users lost one of their reasons for remaining on Facebook, because their favourite brands were no longer showing up in their news feeds.
(Instagram, incidentally, has the opposite problem: thanks to Facebookâs suspect profiling, users are being bombarded with promotions from companies they are not fans of; Instagramâs claim that they rely on Facebookâs ad preferences, and Facebookâs claim that you can opt out of these, are also highly questionable. I get that people should be shown ads from companies they could become fans of; but why annoy them to this extent? Instagram also tracks the IP where you are surfing from, and ignores the geographical location you freely give either Instagram or Facebook for advertising purposes.)
What then surfaced in news feeds? Since Facebook became Digg, namely a repository of links (something I also said many years ago, long before the term âfake newsâ was coined), feeds became littered with news articles (real and bogus) and people began to be âbubbledâ, seeing things that supported their own world-views, because Facebookâs profiling sent those things to them. As T. S. Eliot once wrote, âNothing pleases people more than to go on thinking what they have always thought, and at the same time imagine that they are thinking something new and daring: it combines the advantage of security and the delight of adventure.â
This, as Facebook has discovered, was dangerous to democracy and entire groupsâpeople have died because of itâand thinking people questioned whether there was much value staying on the site.
From memory, and speaking for myself, Facebook probably had the balance of personal, brand and news right in 2010.
But I doubt that even if Facebook were to go back to something like the turn of the decade, it will entice me back. Itâs a thing of the past, something that might have been fun once, like Myspace. It didnât take long to wean me off that.
Even Zuckerberg notes that technology should decentralize and democratize, and that big tech has failed people on this front. I can foresee an attempt to decentralize Facebook, but with a caveat: theyâll want to continue gathering data on us as part of the deal. Itâll be an interesting gamble to take, unless it’s willing to give up its biggest asset: its claim to understanding individual profiles, even if many of its accounts aren’t human.
To me, the brand is tarnished. Every measure we have at Medinge Group suggests to me Facebook is a poor corporate citizen, and itâs going to take not just a turnaround in database stability or the enforcement of T&Cs, but a whole reconsideration of its raison dâĂȘtreto serve the masses. Honesty and transparency can save itâtwo things that I havenât seen Facebook exhibit much of in the 10-plus years I have used it.
Interesting to get this perspective on âBig Techâ from The Guardian, on how itâs become tempting to blame the big Silicon Valley players for some of the problems we have today. The angle Moira Weigel takes is that there needs to be more democracy in the system, where workers need to unite and respecting those who shape the technologies that are being used.
I want to add a few far simpler thoughts.
At the turn of the century, our branding profession was under assault from No Logo and others, showing that certain brands were not what they were cracked up to be. Medinge Group was formed in part because we, as practitioners, saw nothing wrong with branding per se, and that the tools could be used for good. Not everyone was Enron or Nike. There are Patagonia and Dilmah. That led to the original brand manifesto, on what branding should accomplish. (I was generously given credit for authoring this at one point, but I was simply the person who put the thoughts of my colleagues into eight points. In fact, we collectively gathered our ideas into eight groups, so I canât even take credit for the fact there are eight points.)
In 2017, we may look at Ăberâs sexism or Facebookâs willingness to accept and distribute malware-laden ads, and charge tech with damaging the fabric of society. Those who dislike President Trump in the US want someone to blame, and Facebookâs and Googleâs contributions to their election in 2016 are a matter of record. But itâs not that online advertising is a bad thing. Or that social media are bad things. The issue is that the players arenât socially responsible: none of them exist for any other purpose than to make their owners and shareholders rich, and the odd concession to not doing evil doesnât really make up for the list of misdeeds that these firms add to. Many of them have been recorded over the years on this very blog. Much of what we have been working toward at Medinge is showing that socially responsible organizations actually do better, because they find accord with their consumers, who want to do business or engage with those who share their values; and, as Nicholas Ind has been showing in his latest book, Branding Inside Out, these players are more harmonious internally. In the case of Stella McCartney, sticking to socially responsible values earns her brand a premiumâand sheâs one of the wealthiest fashion designers in the world.
I just canât see some of the big tech players acting the same way. Google doesnât pay much tax, for instance, and the misuse of Adwords aside, there are allegations that it hasnât done enough to combat child exploitation and it has not been a fair player when it comes to rewarding and acknowledging media outlets that break the news, instead siding with corporate media. Google may have open-source projects out there, but its behaviour is old-school corporatism these days, a far cry from its first five years when even I would have said they were one of the good guys.
Facebookâs problems are too numerous to list, though I attempted to do so here, but it can be summed up as: a company that will do nothing unless it faces embarrassment from enough people in a position of power. Weâve seen it tolerate kiddie porn and sexual harassment, giving both a âpassâ when reported.
Yet, for all that they make, it would be reasonable to expect that they put more people on the job in places where it mattered. The notion that three volunteers monitor complaints of child exploitation videos at YouTube is ridiculous but, for anyone who has complained about removing offensive content online, instantly believable; why there were not more is open to question. Anyone who has ventured on to a Google forum to complain about a Google product will also know that inaction is the norm there, unless you happen to get to someone senior and caring enough. Similarly, increasing resources toward monitoring advertising, and ensuring that complaints are properly dealt with would be helpful.
Googleâs failure to remove content mills from its News is contributing to âfake newsâ, yet its method of combatting that appears to be taking people away from legitimate media and ranking corporate players more highly.
None of these are the actions of companies that want to do right by netizens.
As Weigel notes, thereâs a cost to abandoning Facebook and Google. But equally there are opportunities if these firms cannot provide the sort of moral, socially responsible leadership modern audiences demand. In my opinion, they do not actually command brand loyaltyâa key ingredient of brand equityâif true alternatives existed. Duck Duck Go might only have a fraction of the traffic Google gets in search, but despite a good mission its results arenât always as good, and its search index is smaller. But we probably should look to it as a real alternative to search, knowing that our support can help it grow and attract more investment. There is room for a rival to Google News that allows legitimate media and takes reports of fake news sites more seriously. If social media are democratizingâand there are signs that they are, certainly with some of the writings by Doc Searls and Richard MacManusâthen there is room for people to form their own social networks that are decentralized, and where we hold the keys to our identity, able to take them wherever we please (Hubzilla is a prime example; you can read more about its protocol here). The internet can be a place which serves society.
It might all come back to education; in fact, we might even say Confucius was right. If youâre smart enough, youâll see a positive resource and decide that it would not be in the best interests of society to debase it. Civility and respect should be the order of the day. If these tools hadnât been used by the privileged few to line their pockets at the expense of the manyâor, for that matter, the democratic processes of their nationsâwouldnât we be in a better place? They capitalized on divisions in society (and even deepened them), when there is far more for all of us to gain if we looked to unity. Why should we allow the concentration of power (and wealth) to rest at the top of tech’s food chain? Right now, all I see of Google and Facebookâs brands are faceless, impersonal and detached giants, with no human accountability, humming on algorithms that are broken, and in Facebookâs case, potentially having databases that have been built on so much, that it doesnât function properly any more. Yet they could have been so much more to society.
Not possible to unseat such big players? We might have thought once that Altavista would remain the world’s biggest website; who knew Google would topple it in such a short time? But closer to home, and speaking for myself, I see The Spinoff and Newsroom as two news media brands that engender far greater trust than Fairfax’s Stuff or The New Zealand Herald. I am more likely to click on a link on Twitter if I see it is to one of the newer sites. They, too, have challenged the status quo in a short space of time, something which I didn’t believe would be possible a decade ago when a couple of people proposed that I create a locally owned alternative.
We donât say email is bad because there is spam. We accept that the good outweighs the bad and, for the most part, we have succeeded in building filters that get rid of the unwanted. We donât say the web is bad because it has allowed piracy or pornography; its legitimate uses far outweigh its shady ones. But we should be supporting, or trying to find, new ways to advertise, innovate and network (socially or otherwise). Right now, Iâm willing to bet that the next big thing (and it might not even be one player, but a multitude of individuals working in unison) is one where its values are so clear and transparent that they inspire us to live our full potential. I remain an optimist when it comes to human potential, if we set our sights on making something better.
Above: Simon Anholt, giving a talk at TEDSalon Berlin.
Out today: my friend Simon Anholtâs Good Country Index, with the Netherlands taking the top spot from Sweden, which drops to sixth. New Zealand is in 17th, failing in prosperity and equality, and in cultural contribution (previously we had been 5th and 12th). On the plus side, we are doing reasonably well in health and well-being, and in science and technology. Itâs a challenge for us as we arenât keeping up with certain aspects of the game by international standards. Have a readâit’s all properly referenced and sourced.
I know we all get these emails from time to time, but they still annoy me.
If âPeterâ had visited this blog, he would know that every single post since 2006 has been my own, unpaid, unsponsored thoughts. Why would I change that now?
You may say itâs a fair question, and maybe in his case it is, if I had to be generous. Peter mightn’t have had the time to analyse every entry I’ve made.
But itâs not just this one. Medinge gets these requests, too: again, itâs not something you would have asked if you had actually visited the site, when everything on the blog has been members-only, and when the philosophy of the organization would probably tell you that we couldnât be bought or endorse any products.
The most ridiculous would be Beyond Brandingâs blog getting these requestsâwhen that blog hasnât been updated since 2006. We were still receiving requests in 2017.
I know, some of these people found us through blog directories, and there was probably an email address tied to each entry.
However, if they havenât the courtesy to check us out, can I really trust that they would even pay up? And if Peter were legit, these unsolicited approaches have been coloured by the ridiculous ones we receive for a blog that hasn’t been updated in 11 (and almost 12) years.
Incidentally, our commercial publications do carry paid content, and advertorials (‘native advertising’), by law, are clearly marked as such.
