Online Public Relations Thoughts

Former President Trump has been indicted on more than 30 counts of business fraud.  Trump claims it is a political smear from a partisan district attorney.  Whether it is or not, Trump's reputation hangs in a balance with followers and independents, both of whom he needs if he wants to get re-elected. Trump has long skirted the law in his business and personal dealings.  It has yet to be proven that he crossed the line into illegality but his past actions just don't look right.  A lengthy trial raising his dubious behavior won't sit well with voters and might open the door for another Republican candidate for President.  Look for Trump to motivate his voters in his defense and for waves of propaganda to flow from him.  

The Vatican has formally rejected the Discovery Doctrine that justified conquering and enslaving indigenous peoples in Latin America and elsewhere.  It was about time.  The doctrine had been promulgated in three Papal Bulls in the 15th Century.  The abrogation was in response to long-time requests and protests from indigenous peoples in the Americas.  It followed on the heels of a formal apology from the Pope to the tribes in Canada that had their children forcibly taken away to be educated in schools that would "civilize" them.  It is one more example of a more powerful group dominating a weaker one -- a dynamic the Vatican has condemned for some time but never got around to acknowledging its past errors.  It has now done so in a move that could be painted as an empty communications gesture because the enslavement of indigenous peoples happened so long ago.  

This opinion piece argues that Republicans don't care about gun control and are dismissive of the tragedies of mass shootings and of crime.  Perhaps so, but it is a case of deadly partisanship that Congress fails to come to solutions for uncontrolled use of weapons.  Gun manufacturers are concerned for their business and advocate along with the NRA for more guns to stop crime.  Arm everyone.  That this argument is foolhardy fails to dent the dividing line between Republicans and Democrats.  It is time for business to step up and push Congress forward.  It is time for citizens to protest until something is done.  

Unlike Europe, tipping is not mandatory in the US.  A consumer can add to a bill in appreciation of service or walk away.  With debit cards and digital cash, the chance to tip has expanded and the screens of payment systems offer a range of amounts -- 15%, 20%, 30%.  Customers, so far, don't like the prompts and walk away. Yes, they still tip in restaurants but they are not rewarding baristas -- not yet anyway.  This is a cultural change and it is bound to be slow.  People have to be educated from transaction to transaction that tipping is part of compensation and not just a reward for good service.  Expanded tipping will make slow but steady process and eventually will be the norm, but it will take years, if not decades. 

In the face of regional bank meltdowns, the Federal Reserve raised the interest rate by a quarter of a percentage point.  That only adds to the stress of imperiled institutions but the Fed was making a statement: "We're serious about inflation."  It was a message the markets needed to hear because there was speculation the Fed would halt the rise.  Are other smaller banks going to follow the demise of Silicon Valley Bank?  It is too early to know but the Fed is on alert and is under pressure from Congress for its oversight of SVB.  The Fed repeatedly warned the bank that it was at risk but the executives did nothing before closing its doors.  There is need for another message now.  "The banking system is stable."  

Ford Motor is in a semi-transparent mode.  It is breaking out the P&L and balance sheet of its vehicle manufacturing by electric, gas-powered and commercial lines, but at the same time it is taking away regional numbers that analysts use to compare auto manufacturers globally.  Investors are "grumpy."  They will have to do extra work to produce estimates of vehicle sales geographically.  One wonders why a company would do that.  Ford offers no apologies.  It simply states the move was necessary.  From a communications perspective, Ford's decision will allow analysts to see clearly how well the company is doing with sales of EVs.  That might salve investors' discontent -- for awhile, anyway.  But, eventually, it would serve the company better if it would give both breakouts.  

Amazon's decision to lay off 27,000 employees is a blow to its reputation as a growth company and a recognition that it grew too fast during the pandemic. It was past time for the company to become a mature business growing with the overall market and shrinking when the economy turns down.  The company has had a good and long run, topping out at 1.6 million employees.  It functioned as its own force buoying the job market and helping keep national unemployment statistics down.  It is still a large presence but not as much as before.  The company now has a challenge of communicating to the public of just what it is and plans to become.  It will be interesting to watch.   

As bankers know and are learning once again, financial systems run on trust and reputation.  A bank run cuts through numbers and math and strikes at the fear the public and institutions have of losing money. The banks in trouble today are upsetting the system of trust and there are additional fears of contagion -- one bank falling after another because the public no longer believes their assets are safe.  The FDIC has put in guard rails to slow such runs but it hasn't stopped them and bailouts are still a feature of the financial world.  It is a brutal reminder that at the heart of a multi-trillion dollar segment of the economy is old-fashioned human emotion and always will be.  

I'm taking 10 days off, starting tomorrow.  Time to refresh.  

Walgreen's is in a PR and marketing bind.  Although an abortion pill has been authorized by the FDA for home use, 20 states have banned it.  Walgreen's has decided not to sell the pill in those states, touching off outrage from abortion advocates and causing California's governor to stop doing business with the pharmacy.  There is nothing the company can do to wiggle out of the situation.  If it sells the pill in the restricted states, it risks legal action.  By electing not to sell, it risks major business.  The company is trapped and there is no easy way out of the situation.  Neither side of the abortion issue is empathetic with Walgreen's plight, so it is on its own in a nasty climate.  

Tesla is sending a message to would-be car buyers that it is getting more affordable.  It is cutting prices.   Elon Musk rightly commented that more people will buy electric cars if the vehicles cost less.  The fact about Tesla is that its first models were for the rich.  They cost over $100,000, far out of reach for most consumers.  Since then, Tesla has introduced new lower-cost cars that have spurred buying and production.  Tesla is also aware that it is no longer the only electric maker in the market.  It is becoming a crowded field.  Like it or not, the company will have to compete on price. 

The House Ethics Committee has opened an investigation into Congressman George Santos who lied his way through an election.  Meanwhile, the Speaker of the House, Kevin McCarthy, says Santos is a member in good standing until the investigation is complete.  That is hypocritical at best.  The facts are clear that Santos made up his resume and used funds that were not his to spend on campaigning.  He has been black-balled by his own Republican leadership in New York and yet, he is in good standing?  The message McCarthy is sending is one of desperation.  He needs votes with his tenuous hold on the House.  McCarthy's decision harms his own reputation because the facts are glaring that Santos lied about nearly everything.  At least, McCarthy should have sanctioned Santos in every way possible, but he didn't and that is to the discredit of Republicans.