The document explores the controversy involving Burson-Marsteller's attempt to undermine Google through a smear campaign related to Facebook's privacy practices. It compares the ethical standards and responses of Google, Facebook, and Burson-Marsteller amidst the incident that backfired on them. Ultimately, the case is deemed unethical and reflects poorly on the public relations firm and its clients.

1. BURSON-MARSTELLER
& FACEBOOK:
A CAUTIONARY TALE
By: Alexandria Chong, Nailah McKesey, Nicole
Troelstrup, Greg Wilson & Ni Zeng

2. Agenda
1. Background Information
2. Two Tech Giants Compared
3. Case Description and Responses
4. Evidence
5. Ethics Comparison
6. Our Verdict
7. Q&A

3. THE MAJOR PLAYERS

4. Burson-Marsteller
 Founded in 1953 by Harold Burson and William "Bill"
Marsteller
 One of the “Top 5 PR Firms”
 Operating in 67 wholly owned offices and 71 affiliate
offices
 98 countries across 6 continents
 Owned by WPP – Wire and Plastic Products

5. What are they about?
"We have a clear vision: To provide gold standard
performance - for our clients, our people and our
shareowners - as one seamless, global business
with a single culture.“

6. Google
 Founded in 1995 at Stanford University by Larry Page
and Sergey Brin
 Top used search engine
 Named after “Googol” - a term defined as the number 1
followed by 100 zeros representing “a nod to the
company’s vast goal of organizing all of the internet’s
data”
 “Don’t Be Evil” – mantra explaining their relationships
and view of competitors

7. What are they about?
"Don't Be Evil"
Originally stated by two Google employees
Buchheit and Patel

8. Facebook
 Founded in 2004 by Mark Zuckerberg
 Top used social networking service
 In September 2012, had over one billion active users
 In a study in December 2011, Facebook is the 2nd most
accessed website in the US
 Users create a personal profile, add other users as
friends, exchange messages

9. What are they about?
"Facebook's mission is to give people the
power to share and make the world more
open and connected.”

10. The Two Tech Giants Compared
Facebook Google
 Facebook has risen to  Dominates search
become the second- advertising: 65% of U.S.
most important online market and more than
property, behind Google. 50% of the global market
 Undermines Google’s  Reaction to Facebook:
communication tools. Launches Google+
 Could jeopardize Google  A $40 billion company
by developing its own built on innovation and
search capabilities execution in advertising

11. WHAT HAPPENED?

12. The Smear Campaign
1. Burson-Marsteller aims at getting newspapers to run stories
about how Social Circle infringes on privacy and violates
FTC rules
2. Spearheaded by B-M’s Jim Goldman and former political
columnist John Mercurio on behalf of an unnamed client
3. Goldman and Mercurio began engaging reporters and
technologists
4. Mercurio offered to help a blogger…
5. And the blogger turned the tables, posting Mercurio’s
embarrassing email pitch online
6. A few days later, USA Today broke the story

13. Google’s Response
"We have seen this email reportedly sent by a
representative of the PR firm Burson-Marsteller.
We're not going to comment further. Our focus is on
delighting people with great products.”

14. Burson-Marsteller’s Response
“Whatever the rationale, this was not at all standard
operating procedure and is against our policies,
and the assignment on those terms should have
been declined. When talking to the media, we need
to adhere to strict standards of transparency about
clients, and this incident underscores the absolute
importance of that principle.”

15. Facebook’s Response
"No 'smear' campaign was authorized or intended.
Instead, we wanted third parties to verify that people
did not approve of the collection and use of
information from their accounts on Facebook and
other services for inclusion in Google Social
Circles—just as Facebook did not approve of use or
collection for this purpose"

16. MERCURIO’S E-MAILS
REVEALED

18. BURSON-MARSTELLER &
FACEBOOK
CODES OF ETHICS

19. Facebook vs. Industry Standards
Leading Tech Companies Honesty and Competition
Facebook “Facebook personnel must always
abide by laws related to competition...
including predatory conduct intended
to exclude a competitor from a market"
Linked In "LinkedIn employees are expected to
act and perform their duties ethically,
honestly and with integrity - doing the
right thing even when "no one is
looking."
Google "We respect our competitors and want to
compete with them fairly. But we don’t want
their confidential information. The same
goes for confidential information belonging
to any Googler’s former employers.”

20. Burson-Marsteller vs. Industry Standards
Public Relations Codes Honesty and Transparency
Burson-Marsteller We will not undertake work which is
intended or designed to mislead,
including in relation to social,
environmental and human rights
issues
Arthur W. Paige Society Tell the truth
PRSA We adhere to the highest standards of
accuracy and truth in advancing the
interests of those we represent and in
communicating with the public

21. UNETHICAL OR NOT?

22. The Charges…
1. Facebook and B-M launched a smear
campaign: a campaign aimed at damaging
someone's reputation by making accusations
and/or spreading rumors.
2. The smear campaign included false and
inaccurate information.
3. The campaign was used to gain a competitive
advantage.

23. The Verdict…
On the whole:
Unethical and Not Very Smart
PRSA CEO/Chair Weighs In:
http://www.prdaily.com/Main/Articles/8232.aspx

24. Q&A
Thanks for listening!