Corporate responsibility in a post-BP Digital Age

Posted by Ahmed on 2:32 PM
NEW YORK--You can never please everyone, especially on the Internet. But at #Promise (yes, with a built-in Twitter hash tag), a Thursday conference about Digital Age corporate responsibility held in conjunction with Internet Week New York, it was evident that consumers are starting to expect more when it comes to companies' attempts to "do good."
"Corporate communications, as such, no longer matter," the conference's keynote speaker, author and business theorist Douglas Rushkoff, said during his midday talk. "The only thing that actually matters is corporate activity...if it's doing something real, that will be communicated. You don't decide to be transparent; you are transparent."
Slightly harsh words, considering Rushkoff's talk was bisecting a morning and afternoon of talks dominated largely by marketing executives from medium-sized to big companies that were talking about how they're reinventing their corporate missions to combat climate change, give back to local communities, and communicate in an age of Facebook and blogs. Rushkoff didn't name names. But he probably didn't believe everything he saw, and neither did everyone present.
The rise of social media has gone hand-in-hand with the ascent of a new breed of mainstream "consciousness" that's one part Whole Foods and one part "Inconvenient Truth"--an emphasis on the local, the sustainable, the future-minded. The combination of the two, in turn, has been a significant public relations win for businesses, including massive corporations, that want to push a progressive image.
This was in full force at #Promise, which was hosted by the Paley Center for Media's ThinkSocial arm and which encouraged each corporate participant to put forth a concrete "promise" of corporate social responsibility in conjunction with its talk. Conference charter sponsor PepsiCo detailed its blog-driven "Refresh Everything" project to support social entrepreneurship, which was just about everywhere at this year's South by Southwest; GE's global director of marketing communications Linda Boff talked about the company's follow-up to its "Ecomagination" campaign with a health care-focused "Healthymagination"; and Twitter's "social innovation" guru talked about its outreach to nonprofits through an internal "Hope140" program.
This digital breed of corporate responsibility--building a "transparent" narrative on Facebook, enlisting celebrity Twitter users to support a cause, and announcing online campaigns to support environmentally-friendly initiatives--has been around for a few years now. The #Promise conference made it very evident that this is something that has been fully pushed into the mainstream of U.S. corporations, and under the surface, even more evident that onlookers are getting skeptical.
You had to look no further than the designated Twitter hash tag for the conference, and the tweets that people were posting. There was plenty of "Surrounded by brilliant, passionate people. Energized," but the critics were everywhere, too. Some took issue with a presentation from boot manufacturer Timberland that detailed its ambitious goal to plant 5 million trees in China and Haiti in the next five years, arguing that there are plenty of places in the U.S. where trees would improve the quality of life in low-income areas or taking issue with the company's selected Haiti charity partner Yele Haiti, which has come under scrutiny for its fiscal practices.
Others wondered why, as PepsiCo talked about its "Dream Machine" recycling initiative, they couldn't find recycling containers in the conference venue. (The organizers hurried to make them more prominent.) The presence of bottled water at the conference left some visibly irked. "Pepsi should promise to stop repackaging tap water in plastic bottles made out of petroleum products from BP," tweeted @pickettfurnitur,
There are those two letters that this post was invariably going to get to: BP.
The Deepwater Horizon oil rig explosion and still-growing crisis in the region have dealt a massive blow to the environmental conditions of thousands of miles of coastline, but they've also hurt the public confidence in corporate attempts to push forth a progressive image. That's because BP hadspent the better part of a decade and millions of marketing dollars rebranding itself as "beyond petroleum" with a green-and-yellow sunburst logo (right). Some oil companies still seem content to be unapologetically evil; this was the first oil company to admit to the realities of global warming, was seemingly candid about the need to invest in alternative energy sources, and earned consumer approval as a "green" brand.
It was, to use the language of the conference itself, a very empty promise.
The truth, which was extremely evident at #Promise but mostly absent from the stage, is that any evil corporation can build a wind farm and call it social responsibility. That doesn't mean it isn't an evil corporation anymore. There's a growing skepticism that in promoting green or "socially responsible" initiatives, big companies aren't necessarily scaling back their own negative impacts in the process. The never-satisfied Twitterer @pickettfurnitur (who eventually left in a huff, citing "corporate greenwashing wearing thin") commented during #Promise that "green manufacturing and reducing consumption: conspicuously absent from sustainability presentations"--i.e. things that would change longstanding negative business practices rather than paper them over with charity dollars.
One issue that came up via Twitter: if supporting health care entrepreneurship is part of PepsiCo's Project Refresh, how does the company reconcile that with its status as the manufacturer of some wildly unhealthy foods and beverages?
"One thing I can reassure is part of our 'human sustainability' efforts is a massive transition of our portfolio in order to address those challenges," PepsiCo's Jeremy Cage, who spearheads the company's "Dream Machine" initiative, responded. "What we call 'Nutrico,' the most nutritional part of our businesses, is currently about $10 billion, and (PepsiCo CEO Indra Nooyi) has publicly made a commitment to get that to $30 billion in short order."
Sometimes, it seems, it's only in the wake of embarrassing scandal that big changes are put into effect in an attempt to save face. Food conglomerate Nestle was assailed by environmental activists on Facebook and Twitter for business practices that contribute to deforestation; within weeks, Nestle had announced a partnership with an independent nonprofit to eliminate its dependence on unsustainable forest products.
Maybe, the next promise (hash tag not necessary) of social media as a corporate marketing tool could be as an honest medium to chronicle the sometimes-excruciating stories behind shaking off some of the 20th century's uglier business strategies--whether a big scandal put a spotlight on them or not.
"Imagine if when (the BP) disaster happened, think about what would have happened if they embraced the social networks," Ogilvy planning director Evan Slater said during a panel at #Promise. "Instead of telling people, 'you can't come research this'...imagine if they had gone out to the social networks and said, 'We're going to take $30 million and put out a reward for the group of individuals, the organization, the company, that can find a solution to this problem.' I think the difference would have been phenomenal."
There were still critics. During Slater's panel, another conference speaker, IBM digital strategy director Adam Christensen, tweeted: "What could BP do differently? Not blow up a well. Beyond that, nothing matters."
Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.

Google kills background images on home page

Posted by Ahmed on 2:32 PM
Google.com
Background images were the temporary default look for Google.com before being pulled earlier than expected.
(Credit: Screenshot by Tom Krazit/CNET)
Fourteen hours into a 24-hour experiment with background imagery, Google's home page is once again stark white.
Design guru Marissa Mayer confirmed that Google was ending the experiment early due to what she called a "bug," which erased a link underneath the search bar on google.com that explained why Google's famously spartan home page had taken on a colorful look. Apparently many searchers on Google.com Thursday morning missed the company's blog post Wednesday night, and were confused and annoyed at the change, turning "remove google background" into the seventh-most-popular search on Google Thursday.
Last week Google announced that it would begin providing its users with the option of setting their own background image behind the home page, but last night it forced an image to appear for all users signed into a Google account to highlight the feature. That didn't sit well with many grown used to Google's clean white design, especially when Google's explanation of why it was forcing this look vanished from the home page.
It also gave fans of Microsoft's Bing search engine a chance to crow, given that one of Bing's most noticeable features is a striking background image behind Bing.com that contains links to searches about the image.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.

Report: Motorola iPhone 4 killer in the works

Posted by Ahmed on 2:31 PM

Motorola is looking to trump the iPhone 4 by raising the performance bar for high-end Android smartphones, according to a report.
Sanjay K. Jha, CEO, Motorola's Mobile Devices and Home business division, says future smartphones will replace laptops.
(Credit: Motorola)
Conceivably Tech, a technology blog, cited general comments about the future phone from Sanjay Jha, the CEO of Motorola's Mobile Devices Division, who was speaking at the Executives Club of Chicago Wednesday.
The report went on to say that another Motorola executive, "who asked to remain anonymous," said that the phone would include "everything that is technologically possible in a smartphone today" and will be based on Android, like the current Motorola Droid. Unlike the Droid, it will pack an Nvidia processor and integrate a gyroscope--like the iPhone 4.
The Nvidia chip will support full Flash 10.1 hardware acceleration, a feature the iPhone notoriously lacks.
In January, Nvidia announced its Tegra 250 processor which is a cutting-edge dual-core ARM Cortex-A9 processor running at speeds of up to 1.0 GHz--and one of the first dual-core ARM Cortex-A9 processors. It is not clear if the future Motorola phone would use this chip or a future Nvidia Tegra processor.
What is clear is that future smartphones packing dual-core processors will be powerful devices. Along these lines, Jha talked about his vision for mobile devices, predicting that within two years many companies will give their employees smartphones instead of laptops, as smartphones take on many of the attributes of mobile computers, according to the report, which was also later blogged about by CNET's Bonnie Cha.
Brooke Crothers has been an editor at large at CNET News, an analyst at IDC Japan, and an editor at The Asian Wall Street Journal Weekly, among other endeavors, including co-manager of an after-school math-and-reading center. He writes for the CNET Blog Network and is not a current employee of CNET. Disclosure.

AT&T Web site exposes data of 114,000 iPad users

Posted by Ahmed on 2:30 PM
A group of hackers exploited a hole in an AT&T Web site to get e-mail addresses of about 114,000 iPad users, including what appears to be top officials in government, finance, media, technology, and military.
The leak could have affected all iPad 3G subscribers in the U.S., according to Gawker, which broke the story on Wednesday. Among the iPad users who appeared to have been affected were White House Chief of Staff Rahm Emanuel, journalist Diane Sawyer, New York Mayor Michael Bloomberg, movie producer Harvey Weinstein, and New York Times CEO Janet Robinson.
A group that calls itself Goatse Security tricked the AT&T site into disclosing the e-mail addresses by sending HTTP (hyper text transport protocol) requests that included SIM card serial numbers for iPads, the report said. Because the serial numbers, called ICC-IDs (integrated circuit card identifiers), are generated sequentially, the researchers were able to guess thousands of them and then ran a program to extract the data by going down the list.
The hole in the AT&T Web site exposed e-mail addresses that correlated with serial numbers in iPads.
(Credit: Gawker)
AT&T spokesman Mark Siegel confirmed the breach to CNET, saying the company turned off the feature that provided e-mail addresses on Tuesday, one day after learning of the problem from someone not affiliated with the hacker group.
"AT&T was informed by a business customer on Monday of the potential exposure of their iPad ICC IDS. The only information that can be derived from the ICC IDS is the e-mail address attached to that device," he said in a statement.
"We are continuing to investigate and will inform all customers whose e-mail addresses and ICC IDS may have been obtained," he added. "At this point, there is no evidence that any other customer information was shared."
Representatives from Goatse Security did not respond to an e-mail or phone call seeking comment, but Goatse analyst Jim Jeffers gave an interview to CBS News. The group, whose name references an Internet shock Web site, looks for security holes in software, including browsers.
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Jeffers said the attack could have allowed someone to take control of the iPad and that potentially every 3G iPad subscriber was affected. Although AT&T maintains that only e-mail addresses were compromised, Jeffers said "it will allow someone who does the proper research to possibly target iPad 3G users and take over their iPads, and they could sniff traffic, they could act as the user of the iPad."
Jeffers also said the group had contacted AT&T and waited until the company fixed the hole before going public with it.
Representatives from Apple did not respond to a request for comment.
A Web site issue
The problem is solely related to security on AT&T's Web site and not Apple's tablet, security experts stressed. Meanwhile, the type of weakness discovered in the AT&T site is fairly common, they said.
"It is an authentication error to not require user authentication before returning private data," said Chris Wysopal, chief technology officer at Veracode. "This is the type of vulnerability that would be found with a very basic Web application assessment. Apple should require its service providers to show proof of an assessment of its Web apps if sensitive Apple customer is stored there."
Neither e-mail addresses nor SIM serial numbers are considered to be sensitive information, experts said.
"Doesn't seem like a huge deal to me," said Charlie Miller of Independent Security Evaluators. "It's not like peoples' Social Security or credit card numbers were compromised."
But try telling that to Rahm Emanuel or any of the officials in the Defense Department, federal court system, or Goldman Sachs whose e-mail addresses could be targeted for phishing and other attacks.
"Now everyone in the world knows these people have iPads, and here's their serial number and here's their e-mail address," said Bill Pennington, chief strategy officer at White Hat Security. "This puts them in a more vulnerable state."
There is also the possibility that a SIM serial number could be used to get other customer information through this or other vulnerabilities on the AT&T site, he said. And there's a chance that not only iPad users were put at risk. "I believe this number could identify any 3G device on the AT&T network," not just iPads, Pennington said.
"Obviously, AT&T is using the ICC-ID as some sort of authentication mechanism," said Kevin Mahaffey, chief technology officer at mobile security firm Lookout.
"The question is: in the back-end are there other systems that are using the number as an identifier for other things?" he said. "There is a trend to use identifiers associated with devices as a way to trigger billing or interact with the account. There is some trust associated with these numbers."
Another security expert said the breach revealed enough information that a determined attacker could use to target the specific device.
"At least in the United States, some major GSM providers are known to use ICCID values that contain the lower nine digits of the International Mobile Subscriber Identity (IMSI), which is considered to be a protected value. The other digits that make up an IMSI are either known or can be easily guessed by an attacker," said Don Bailey, a security consultant at iSEC Partners.
"Knowing a subscriber's IMSI allows a potential attacker to target that specific subscriber's GSM handsets or devices using an IMSI catcher, which itself is a device that can intercept or manipulate GSM traffic," Bailey said. "An attacker with access to an IMSI catcher can intercept the traffic of high-profile targets potentially leading to a loss of privacy. With the lowering cost of IMSI catching equipment, the ability for an attacker to correlate ICCIDs with high-profile individuals, then derive the IMSI from each ICCID, is a substantial threat to both corporate and personal privacy."
According to Gawker, Goatse Security shared the exploit it wrote for the AT&T site with others. But Pennington said it seemed like the hackers were more interested in shaming AT&T over lax security than making money off the situation.
"I don't think the data would have a lot of value in the underground," Pennington said. "I think their primary motivation is shame and guilt."
Updated June 10 at 7:30 a.m. PDT: Added comment from Don Bailey at iSEC Partners and additional comments from Goatse analyst Jim Jeffers.
CNET's Erica Ogg contributed to this report.
Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service, and the Associated Press. E-mail Elinor.

Net neutrality group signals cooling of hostilities

Posted by Ahmed on 2:29 PM
A new industry effort that bypasses Washington politicians and regulators indicates a cooling of hostilities over Net neutrality rules is underway.
Longtime political rivals including AT&T, Google, Comcast, Verizon, and Microsoft, announced Tuesday they had joined together to form a technical advisory group to "develop consensus on broadband network management practices or other related technical issues that can affect users' Internet experience," including applications and devices.
The formal name of the effort is the Broadband Internet Technical Advisory Group (BITAG), which will be chaired by Dale Hatfield of the University of Colorado at Boulder, a former chief technologist of the Federal Communications Commission.
Tuesday's announcement was, in retrospect, almost inevitable. After a majority of the U.S. Congress told the Democrat-controlled FCC not to slap strict Net neutrality rules on broadband providers, there was little chance of new regulations. And in an election year dominated by discussions of jobs, the economy, and health care, regulating broadband providers is hardly a congressional priority.
Supporters of Net neutrality say that new Internet regulations or laws are necessary to prevent broadband providers from restricting content or prioritizing one type of traffic over another. Broadband providers and many conservative and free-market groups, on the other hand, say that some of the proposed regulations would choke off new innovations and could even require awarding e-mail spam and telemedicine the identical priorities.
If Congress does return to the topic in 2011, it's difficult to predict what might happen, and whether the Google-eBay-Amazon.com axis would prevail over broadband providers. Which is why both sides appear to have decided that having a series of informal discussions--far away from the halls of the FCC and Capitol Hill--might be more productive.
Adam Thierer, president of the free-market Progress and Freedom Foundationcalled the BITAG a way to de-politicize "Internet engineering issues by offering an independent forum for parties to have technical disputes mediated and resolved--without government involvement or onerous rulemakings."
The plan is for BITAG to "function as a neutral, expert technical forum and promote a greater consensus around technical practices within the Internet community," Hatfield said. Among the factors that will be considered: whether a practice is commonplace, whether alternative technical approaches are available, and whether a technical practice is aimed at specific content, applications, or companies.
This is in part a reference to Comcast's controversial throttling of some BitTorrent transfers during periods of network congestion, which led to the FCC declaring the practice to be illegal. Comcast sued, and a federal appeals court in April unanimously sided with the broadband provider. (By then, Comcast and BitTorrent had long since reached a peace accord.)
For the last few years, liberal advocacy groups including Free Press and Public Knowledge had enjoyed a close alliance with Google and other Web companies on the topic. (Some money has changed hands: Public Knowledge acknowledges receiving funds from Google, but won't reveal how much, and says Google's rivals also give undisclosed sums, which could be larger or smaller.)
Coalitions remain influential only if they can limit defections. For these advocacy groups, the danger is that their corporate allies might conclude the BITAG's work is sufficient and withdraw support for new laws and regulations, making their enactment much less likely.
And in fact, Free Press responded on Tuesday by claiming "this or any other voluntary effort is not a substitute for the government setting basic rules of the road for the Internet" and "there must be a separate FCC rulemaking process." Public Knowledge, too, said BITAG is "not a substitute for FCC rules and enforcement procedures."
In theory, many Democrats favor Net neutrality. President Obama recently reiterated through a spokesman that he remains "committed" to the idea, as have some Democratic committee chairmen.
But theory doesn't always mesh with political practice. Rank-and-file Dems are clamoring for Net neutrality about as much as Bush-era Republicans were clamoring for limited government: it's a valuable talking point, but if Silicon Valley has reached a working detente with broadband providers, well, there may be no need to do anything hasty.
Disclosure: Declan McCullagh is married to a Google employee.
Declan McCullagh has covered the intersectio