Don’t be a dope: drug scandal leads to sponsor fall out

Lance Armstrong. American professional road racing cyclist. Seven-time winner of the Tour de France. World champion of the sport. And a bona fide dope.

In light of strong evidence of the use of performing-enhancing drugs, the U.S. Anti-Doping Agency has banned Lance Armstrong from competing and will strip away all his titles earned throughout his career.

For years Armstrong has craved the spotlight, but now he’s making front-page coverage in leading media across the country for all the wrong reasons. And sponsors are taking notice. Endorsers – such as RadioShack, Anheuser-Busch, and longtime friend Nike – are bailing on the popular former cyclist in light of these allegations.

This controversy surrounding Lance Armstrong shows how a reputation built over time can be destroyed in mere seconds. Especially in today’s digital world where headlines jump from your computer screen to your daily morning paper in less than a day, it can be hard to hide from the truth.

“There is a permanent record today and it is called the Internet”

Privacy is a commodity. In today’s world dominated by the Internet, anything and everything can be posted instantaneously and shared with millions in mere seconds. David from “David After Dentist” would agree. However, privacy concerns are no laughing matter. Vigilance should be taken to ensure that the next breaking news scandal that hits the front page of Yahoo does not revolve around you, which is why we’re shaking our heads at Mitt Romney this week.

After secretly recorded comments from a private Boca Raton fundraiser leaked of Mitt Romney saying that 47% of Americans are victims dependent on the government, we can’t help but wonder why the aspiring President would vocally disparage almost half of his country. Here’s a tip for you Mitt Romney: if you are running for President, everything you say and do WILL be held against you in the court of public opinion, thanks to the Internet. The video was leaked to the press, and now everyone from Jon Stewart to Diane Sawyer is spreading the remarks to their audiences; meanwhile the Mitt Romney campaign has spun its gears to full-on damage control.

Another unfortunate recent example of the royal lack of privacy today comes from an Italian magazine publishing topless photos of Kate Middleton. The Duchess of Cambridge was simply enjoying a sunbathing session on a secluded French chateau getaway when a paparazzi photographer captured the scene. Now, the British royal family is taking the matter to court with hopes to stop further publications from printing the photos, but you can’t take back what has already been done. Amazing what a zoom lens and internet connection can do to the public image of a Princess.

Even the common person is not immune to the repercussions of online activity. Everything that you post, from Facebook cover photos to the latest Tweet about what you had for dinner, becomes fair game when you click “publish.” Alan Dershowitz, a Harvard law professor and lawyer for high-profile defendants, says that young people nowadays don’t seem to value privacy. “They put stuff on Facebook that 15 years from now will prevent them from getting the jobs they want,” he said. “They don’t understand that they are mortgaging their future for a quick laugh from a friend.”

And that’s nothing to laugh about.

Mac users steer to more expensive hotels on Orbitz

Many Mac users are fanatical about their computer and are willing to pay extra to own the brand.

Those same Mac users apparently also like to spend a little more on hotel rooms. The online travel agency Orbitz says Mac users spend as much as 30 percent more than PC users on the average hotel booking. The Wall Street Journal reports that the online travel service is showing Mac users more expensive properties.

Orbitz is experimenting with showing different hotel offers to Mac and PC visitors. The move is raising eyebrows and attracting front-page attention. The online travel agency is following a growing trend using predictive analytics to target potential buyers. Orbitz is quick to point out that both Mac and PC users can still rank hotels by price if they wish.

Companies used to just track what websites were being looked at, now they are tracking what computing system are being use.

Budget conscious Mac users should be cautious. Orbitz is likely to begin using the same algorithms to show rental cars and airline flights.

For PC users – especially those with broken hinges on their three-year-old laptop – expect to see more budget-friendly options on the front page of your online travel agency.

Social media a part of FCAT’s Path to Success to better communication

In light of public outrage from FCAT scores drastically plunging this year, the Florida Department of Education launched two websites Monday as part of its campaign to communicate with parents. One website, floridapathtosuccess.org, provides them with information about the department’s goal of transitioning to tougher standards, while the other, parents.fldoe.org/home, serves as an outlet for them to ask questions and express concerns on a discussion board. In less than 24 hours of its debut, three topics were posed by parents on the discussion forum, with a FLDOE representative already replying to two of them.

This response by the Florida Department of Education showcases how the organization is taking steps to communicate better with its core audience and increase transparency in the communication process. At a time when many parents are up in arms about recent headlines, creating these channels to interact directly with parents is a smart move on FLDOE’s part to take control of the situation. Instead of letting all the worry and frustration from parents fester, the department is tackling this challenge head on and trying to remedy the situation by supplying an appropriate space for them to vent and get answers to their questions from an authorized source – a commendable effort by the FLDOE and certainly a good public relations example of using online resources to foster two-way communication.

Groupon: Accounting principles up to 50 percent off

Ok, so maybe the headline of this is tad unfair and technically incorrect. However, there is no denying that Groupon’s reputation has stung in recent days because the popular Chicago-based online coupon company overstated its financial position in its first quarter as a public company.

The Wall Street Journal reported that Groupon’s auditors discovered that the coupon company suffered a “material weakness in its internal controls” and did not set aside enough money for customer refunds.  The size of this oops-worthy mistake was more than $14 million, the newspaper reported.

For companies that are trying to polish their accounting numbers to make them look as good as possible, there is a deep downside – bad PR that travels quickly. Reputations are hard to earn and quickly lost.

The numbers might have frustrated Google’s investors if the company had recorded their financials right the first time; however, it would also not be shown in a negative light at the front page of the leading financial newspaper.

Groupon should leave the deep discounting to specials. Deep discounting on accounting practices will lead to negative publicity that will last longer than the daily deal.

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