Swatting a gadfly with a cannon

Keeping a sense of perspective can protect you  from embarrassment, and this holds true in the chaotic world of social media. Goldman Sachs seems to have lost track of what’s important by sending its lawyers after a blogger who is criticizing the company – a “corporate gadfly.”

A gadfly, you know, is a little person with no power but a big mouth (or pen). He complains of some perceived wrong, and pretty much no one listens, unless … well, you can be the judge of the complaints in this case.

This story starts with Mike Morgan, a Florida investment adviser and real estate broker, setting up a blog in March called GoldmanSachs666.com. The name tells you where he’s coming from. Many of America’s corporate giants have spawned critics in the blogosphere – it’s a place outside the control of corporate giants.

But who would have read the 666 guy’s blog? I don’t see anything too interesting. He has posted about 30 times in the three and a half weeks it’s been up, offering conspiracy speculation and links to other blogs and news stories. I can’t find a disclosure of his personal or business agenda, why he’s going after Goldman Sachs.

Then Goldman – actually, its Wall Street law firm – threw down the gauntlet by sending him a cease-and-desist letter claiming he’s violating their trademark by using the company name in his URL. I’m no lawyer and don’t know the legal merits of their position. But this comes across like trying to shut up a critic.

That salvo encouraged Morgan to go into full attack mode. Besides encouraging blog readers to alert the media to his story, he’s filed a pre-emptive suit claiming the GoldmanSachs666 blog is posting news and commentary, not infringing their service mark. Some financial bloggers and the UK’s Telegraph are covering the case. Morgan is recruiting volunteers online, planning a media conference call and so on. He’s campaigning to become a cause celebre.

I don’t know the behind-the-scenes story of Goldman’s contacts with the 666 guy. In general, companies should do one of two things about a corporate protester, online or on the street outside the office:

  • Look for a way to engage and mollify the critic. Go the extra mile in person or by phone to see if there’s a grievance that can be solved, meet with him, offer respectful and factual answers or see where he’s coming from. Or if he seems intractable …
  • Ignore the gadfly, while preparing message points to rapidly respond to the criticism. If the negative chatter spreads to other venues or threatens the company’s business or reputation, provide your message points quickly but one-on-one. Don’t issue a press release or file a lawsuit (both of which just turn up the volume). Answer reporters’ inquiries in a noncombative way. And perhaps comment directly on other blog or Twitter posts as they arise, especially if they overlap into your own social media constituency.

But taking aim with the legal cannons seems to be the surest way to make a big noise and get the wrong kind of attention. It’s like calling the police to arrest someone carrying a picket sign outside the office – guaranteed to make the evening news. Goldman Sachs, with all else that is on its plate these days, has more important things to do.

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One Response to “Swatting a gadfly with a cannon”

  1. Rebecca Mack Says:

    You are spot-on. The response by Goldman Sachs exposes nothing more than their ignorance of new media and the blogosphere and is not going to get them the type of response they desire. This is already devolving into an online p*(&ing contest.

    It couldn’t be more obvious that the response was driven by their stuck-in-an-earlier-era attorneys, combined with a management team that turned a deaf ear to a more sophisticated communications/PR approach that one would hope was also on the table.

    What a great case study for companies on what NOT to do.

    Yesterday there was a great example of how to respond to something negative in the social media arena. Domino’s Pizza. A couple of rogue employees posted on YouTube a “prank” video of shenanigans in the kitchen. (Too gross to mention…do a search on Twitter for Domino’s…) Domino’s responded, very appropriately I thought, by posting a YouTube video response from the company president. The days-of-yore response would have been to issue a press release. Lucky for Domino’s that they have a social-media-savvy agency and accepted their advice.

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