Re: Delta vs Kelloggs
Dex
5/10/2012 8:05:17 AM
Kelloggs confirmed it's ethical ranking in my mind. The decision to let the consumers -- the target of the advertising -- decide what they want to watch seems sound. Advertisers shouldn't be the morality police. Just place the ads on programs or publications you expect will enhance your sales, and find a different advertising medium if sales slump.
Ha ha @Scott. Very funny.
I have only good things to say about Delta. They get me to where I'm trying to go with my bag. That's all you can ask for these days! In fact last time they allowed me to switch flights at the last minute without paying a fee -- can you imagine that!!??
Attention Delta: Don't you think this message deserves extra frequent flier miles?
And what Scott? Are you worried they will give you even crappier than usual service?
I cannot comment because this week I will be flying Delta home from the Interop show here in Vegas.
Ok -- consider this.
Delta Air Lines has pulled its advertising from cable TV's "The Daily Show with Jon Stewart ," following fallout from the host's reference to a controversial Nativity scene as a "vagina manger."
The "Daily Show" segment, which aired April 16 segment on the Comedy Central show, featured Stewart mocking the Fox News Channel for not covering a so-called Republican "war on women." He said, "Maybe women could protect their reproductive organs from unwanted medical intrusions with vagina mangers."
Kelloggs, one of the companies on the Most Ethical List, also advertises on the same show. It, however, is not pulling its ads. Cereal maker Kellogg said in a statement: "Consumers speak most loudly when they vote with their remote control and change the channel or turn off the TV if a program does not fit their personal criteria."
My question to you: Which company acted the most ethically? Both? Neither? Why?
I think the bottom line is this: I personally favor socially responsible companies, But that can't be the only metric to consider. I think the key is to look for a company that has executives with heart -- but are still focused on the business enough to make decisions with their heads.
Re: Good vs good returns
Broadway
5/9/2012 3:00:15 PM
I'd like to see a meta-review of studies looking at stock/corporate performance and corporate responsibility. I swear I've seen results with positive correlations, though don't ask me to remember what study and where/when I saw it.
Isn't the real reason that Wall Street continually blows up is the bonus structure? As Nicholas Taleb pointed out in his book The Black Swan, most bankers and Wall Street traders follow this process:
1) Get client/institutional money to trade.
2) Leverage that up with cheap interest rates.
3) Trade!
They are bonused on a calendar year, so the idea is to get leveraged into trades at some point in the year so that you can make a lot of money and get a big bonus at the end of the year.
What is the downside here? You are using "OPM" -- other people's money -- so if you blow up or make a few bad trades, at worst you lose your job -- and the bank goes best (MF Global model). At best, if you can lever up real big and make a winner, you get a huge bonus payoff.
This kind of structure is not incentivized to protect against risk.
Re: Good vs good returns
Phoenix
5/9/2012 11:36:35 AM
Yes I agree organisations who practise good ethical values tend to make their employees develop the same mindset. I think this prevents them from unethical behaviour which they might have otherwise been tempted to indulge in as you mention.
There is also the opportunity for the organisation to receive good publicity and maintain good public relations as a result of their good ethical conduct. We have also given them good publicity through this article. This means that there are many opportunities to get rewarded for ethical behaviour. The question is how much do organisations really value it?
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