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Business’s Best Path to Racial Justice

6/27/2020

by Abbigail Jones, former customer solutions specialist at Webstaurant Store;
current co-youth director at Middletown Presbyterian Church and mom

Although profitability is a priority for any successful business, it’s narrow to overlook the capacity that companies have to change the world for the better: to lift communities of color out of poverty and provide economic opportunity.

As an African American woman, a Christian, and a millennial, social justice is near and dear to my heart. When working for a company, I want to know that it cares about addressing the legacy of inequality in our nation, one hire at a time. The recruitment, hiring, and retention of persons of color is a vital factor in ensuring economic development and justice for all.

By interacting intentionally with their surrounding communities, businesses can help heal broken relationships, including those that cross racial lines. Now more than ever, business leaders must expand their rubric for success beyond financial achievement and assess how their firms function as responsible citizens, consistent with Elkington’s “triple bottom line.”

It’s difficult to embrace such outcomes, however, without first acknowledging that the great racial divide within our country and lack of representation of black and brown Americans in the workplace stems from structural inequalities deeply entrenched in society. We continue to reap a harvest of racism sown by a legacy of slavery, segregation, violence, and voter suppression.

The consequences of Jim Crow laws and red-lining have endured for generations along with the outcomes of other systematic efforts to exclude black and brown people from the American dream. Just as these injustices were not casually implemented, measures to undo them also must be comprehensive.

According to MarketWatch, for the past 70 years a wealth gap has existed that’s seen black households remain 80% poorer than white ones. Put another way, the typical white family has wealth of $171,000 versus $17,150 for an average black family. The National Economic Association, formed by black economists in 1969, suggests that the current widespread protests against police brutality are related to this wealth gap and as a result, racial conflict will likely continue until fundamental inequities are addressed.

But, why should businesses attempt to address deep-seated issues that span centuries and defy easy answers? Aren’t there governmental organizations and nonprofits already dedicated to solving this problem? I believe businesses are uniquely equipped to propel entire communities forward, thereby closing the wealth gap and making a lasting difference for people of color.

Furthermore, businesses that care about both the prosperity and unity of our nation can wield their economic influence to play a much-needed reconciling role. By tackling this issue of inequality, they will create stakeholder value even as they promote positive societal values.

Firms that employ a diverse workforce, benefit from a range of perspectives that ultimately make the organization stronger. Likewise, today’s customers increasingly care about the ethos of the brands they support. Millennials believe small acts of enlightenment can add up to larger societal change, while Gen Z sees its buying power as a means of activism: According to Forbes, 76% of this age cohort says it’s purchased from a brand in order to support the issues it espouses.

In the wake of George Floyd’s death at the hands of a white police officer, we have seen CEOs across the county issue company-wide and public statements condemning racism within society as well as within their organizations.

I celebrate these leaders who have leveraged their influence to stand against injustice. These statements not only reflect sound leadership, they have allowed conversations against injustice to continue in the marketplace.

I would also encourage those same leaders to continue on this journey of racial reconciliation and racial justice even as this topic moves out of media coverage. It will take hard, long-term work and commitment in order to combat deep-seated and systemic racism. However, on the other side of this endeavor are meaningful relationships and networks with communities of color.

Businesses can accomplish this transformation most effectively by nurturing an employee base that gives meaningful work opportunities to people society has historically marginalized. People of color need access to quality, life-sustaining jobs with fair wages, as well as benefits like healthcare, retirement plans, childcare, and tuition assistance so they can begin to close the wealth gap and gain financial freedom.

Here are seven steps that businesses should take to market themselves as employers of choice who offer real economic opportunity to people of color:

Assess the current organizational climate: Evaluate existing recruitment practices and organizational culture by asking, “Is our workplace one where an individual from a minority group feels welcomed and accepted? and “Is there no tolerance for racist rhetoric or innuendo?” Answers to such questions will help to clarify community-building goals and to determine if the workplace is an inviting one, likely to retain people of color once they are hired.
Enlist internal champions: While your goal may be for everyone in your organization to embrace the idea of racial reconciliation, not all will be equipped or enthusiastic about this plan. Consequently, it’s important to identify and engage specific leaders: individuals who are well-suited and passionate about the initiative and who can garner support from entire teams.
Build external relationships: Partner with civic organizations and non-profits that focus on placing qualified, ethnically diverse people into corporate environments. Also, solicit the aid of local government in tackling this societal issue. Ask each entity for initial input and ongoing support, including leveraging their networks to help identify qualified people of color for particular positions.
Develop a strategic diversity and inclusion plan: Using feedback from internal and external stakeholders, draft a document that outlines the general strategies and specific tactics the organization should implement in order to achieve measurable outcomes for diversity and inclusion.
Create a roadmap for success: Develop strategies that will help retain people of color within your organization. While each new hire’s needs may be different, recognize that their new position likely will pose a major life transition; for example, the employee may need to relocate. Provide the new hire with real estate contacts in the area or even an apartment to rent in order to make relocation easier.
Keep the conversation going: At the launch of the initiative and thereafter, host regular discussions aimed at encouraging racial reconciliation in the workplace and at ensuring that restorative programs continue to be seen as top priorities.
Make higher education possible for employees’ children: To truly break the pattern of wealth disparity, it’s important to provide educational opportunities for future generations, which can happen by offering current employees support in saving for their children’s education. By the way, those children may even decide to join the same organization when it’s their time to enter the workforce.

By intentionally reaching out to communities of color with offers of gainful employment, organizations clearly communicate that they see injustice in society, they understand that separate is not equal, and they are willing to do everything they can to make opportunities available to those often marginalized, because they care.

Committing to a more diverse workforce can bring its own set of challenges, which may at times cause business leaders to wonder if their effort is worth the reward. Ultimately, though, the investment in inclusive excellence will pay generous dividends to those organizations and our world, making employment initiatives aimed at racial restoration “Mindful Marketing.”

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Listen and Act, for Marketing and Racial Reconciliation

6/13/2020

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by Will Young IV, business administration major, marketing minor,
and member of the men's basketball team at Messiah College

As a Christian, to consider marketing’s role in racial reconciliation means understanding reconciliation from a biblical perspective. Four times in his letters to the early Church, the apostle Paul used the Greek word katallage, which means to exchange one thing for another. That definition of reconciliation reminds me of my first marketing class in which we discussed the discipline being about “mutually valuable exchange,” powered by two important activities: listening and doing.

Business transactions often culminate with the exchange of need-satisfying products, but they begin with more basic exchanges of time, questions, answers, and ideas. Driving the process is one critical activity—listening: offering one’s ears along with a genuine desire to understand.

Just as listening sustains good marketing, listening is the first step toward racial reconciliation.

Thich Nhat Hanh, a Vietnamese peace activist once said, “In order to reconcile, you have to possess the art of deep listening.” Following the tragic murder of George Floyd, the world, specifically the black community, was outraged. The reason was not necessarily that we were shocked it had happened because, quite frankly, there has been a plethora of deaths of unarmed black men and women throughout the years, many a result of police brutality. The uproar, protests and rioting were infused with so much force and rage because for years we had been trying to call attention not just to police brutality but to other racial injustices, but we were never really heard. Very few would listen.

The nation’s collective failure to listen to the voices of those crying out about racism has allowed many senseless events, like the killing of Floyd, to happen time and time again. Martin Luther King Jr. predicted what happens when injustice meets apathy when he said, “A riot is the language of the unheard.” While I in no way support rioting or looting, it is important to note that such actions typically don’t happen when people feel like they’re being heard—when others are listening.

No competent marketers ignore the needs of their consumers. No country should ignore the needs of its citizens, particularly those crying out about racial injustices. Both fail to create mutual value. Businesses have a unique opportunity to hear the voices of the black community and others crying out for change by having open and honest conversations with their employees, customers, and other stakeholders. Large and small companies are in prime positions to break down the racial barriers they once avoided by genuinely listening.

As important as listening is to marketing and racial reconciliation, it only gets you in the room. Action is what allows you to stay there.

People say, “be the change you want to see,” but actually being the change involves effort and often uncomfortableness. If marketers want to play a role in racial reconciliation, they need to move beyond words and model what racial reconciliation looks like.

Ben & Jerry’s is a good example of such action. The company’s website displays a staff composed of many different races, from African-American, to White, to Asian, to American Indian. The firm shows the world that despite our nation’s racial and political divisions, people of all races, cultures, and ethnicities can work together to achieve a common goal. Ben & Jerry’s is not just speaking about the change that should occur. It is clear the company is intentional in hiring so it can be the change.

The firm also has introduced an ice cream flavor called “Pecan Resist,” centered on exchanging narratives of exclusiveness for inclusivity, equality, and justice for people of color. In many ways, this product represents the gold standard of what marketing should do to be the change.

Businesses wondering about the role they can play in racial reconciliation should recognize that people have largely done their part. Movements like Black Lives Matter have expressed anger and voiced concerns, upholding their role of the exchange. They’re now looking for something in return for their voice, which, again, first means others who will listen. Businesses should lead by example in lending an ear, but not stopping there.

After listening, organizations and individuals must go a step beyond and act on what they’ve learned, which is strengthened by understanding the history of racism, having uncomfortable workplace conversations, and donating to movements that advocate for racial equality and shared justice. Simply stated: They must do something. Don’t leave the exchange relationship one-sided; make it mutually-beneficial, thereby encouraging racial reconciliation and creating priceless value for generations to come.

No two companies are the same. Likewise, every business that chooses to listen and act will play a different yet important role on the road to racial reconciliation. All such actions, however, must uphold common values: fairness, honesty, and respect. Whatever their specific role, companies that facilitate mutually beneficial exchange leading to racial reconciliation create a life-giving legacy of “Mindful Marketing.”

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Can Marketing Make a Difference?

6/13/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

When considering our world’s challenges, people tend to see marketing as part of the problem, not the solution. Such perceptions surface in Gallup’s annual poll about the honesty and ethics of various occupations: Respondents consistently rank marketing roles like advertising practitioner, insurance agent, and car salesperson near the bottom of the list. So, who would ever claim that marketing can combat prejudice and even encourage racial reconciliation?

One of those marketing optimists is me. More than a decade ago, I wrote a paper about marketing and reconciliation in which I made a rather simple observation: People who buy and sell from each other tend to stay on good terms and build healthy bonds. In contrast, fractured relationships often lack any meaningful exchange: verbal, material, or other.

Marketing often brings together people from different backgrounds, whose paths wouldn’t otherwise cross, for shared economic gain as well as other mutual benefit. For instance, a white family enjoys food from a restaurant owned by an Indian couple; a black salesperson appreciates her Asian client, and vice versa; a Hispanic CEO values contributions from hundreds of employees representing an array of race and ethnicity.

Business, in general, and marketing, specifically, are catalysts for countless positive interracial interactions and relationships. As people’s lives interlace with individuals who are different than them, while partnering for a common purpose, they often come to respect and appreciate their differences.

There’s also the notion that racial equality is closely tied to economic opportunity. When people can work in well-paying jobs or even start their own companies, aspirations and optimism replace desperation and despair. Marketing helps provide such hope-inspiring possibilities.

While I truly believe all I’ve just shared, I need to remind myself and disclaim that these words come from someone who, because of his own background, has not experienced significant racial prejudice and who will never truly understand the struggles that the black community and other people of color have endured for centuries.

One thing I can do is share this platform of Mindful Marketing with some who have experienced racial injustice firsthand, who wake up each morning to its effects, and who, also importantly, see business and marketing as a way forward—not necessarily as “the” answer, but as part of it.

I recently reached out to a few black friends, asking if they would be willing to share their perspectives on the roles that business and marketing may play in racial reconciliation. I received four enthusiastic and thoughtful responses from: a current student, a former student, a college classmate, and a research partner. My intent is to share each person’s reflection in its entirety over the next several blog posts.

It's a small gesture that I feel led to make for several reasons:

I care about these friends and their families.
I want to understand the current situation from the perspectives of those most affected.
Our opinions impact what others believe and do.

In an age of social media, the third bullet point may seem glaringly obvious; however, it takes me back fourteen years to my doctoral dissertation in which I applied Ajzen’s (1991) Theory of Planned Behavior (TPB) to accounting clients’ referral intentions. Key to the TPB, which hundreds of studies have validated, is that our intent to do anything is impacted by societal (subjective) norms, or what we perceive others believe is good or bad.

So, even if I’m not promoting racism, my silence might lead others to believe that I think it’s okay, which is not okay. I want to use my voice to help establish the social norm that racism is wrong and that respecting others, regardless of their skin color, is right. My friends who have kindly accepted the offer to share this platform want to do the same.

In my Marketing Principles classes, students learn that people can market three types of “products”: physical goods, intangible services, and ideas. Now is the time for all of us to leverage our own social influence to market reconciliation—one of the most important applications of “ Mindful Marketing .”

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Some Good Payout for John Krasinski

5/31/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Life for Dunder Mifflin paper salesman Jim Halpert revolved around two things: pleasing Pam and pranking Dwight; it was never about the money. Now some suggest that John Krasinski's acting is even better than we believed after he surprisingly cashed-in on his homespun, positivity-in-the-face-of-a-pandemic YouTube program. Millions enjoyed watching Some Good News, and many people contributed content, so should Krasinski pocket millions for selling the series?

It was seven years ago when Krasinski first had the idea for Some Good News (SGN), but he only decided to capitalize on the concept after an isolation-induced tweet on March 25, in which he asked his followers to share things that made them feel good or smile. The tweet astoundingly received over 3,000 comments and nearly 20,000 likes.

Seeing the virus-plagued public’s voracious appetite for feel-good stories, the actor/director/producer launched SGN on March 29, with production partner Allyson Seeger. Together they aired eight YouTube episodes, overflowing with pleasant programming from regular people, as well as occasional celebrity cameos by the likes of Oprah Winfrey, Brad Pit, and former Krasinski coworkers from The Office.

In the first episode, former Dunder Mifflin manager Steve Carell (aka Michael Scott) stopped by to chat about favorite Office memories, which garnered over 17 million YouTube views. The other seven SGN installments also drew big audiences, each in the millions.

That kind of instant internet success rarely goes unnoticed, especially when featuring a star like Krasinski. Soon corporate sponsors such as AT&T and the Boston Red Sox entered the action with giveaways, while others floated a much bigger proposition—purchasing the series.

At first, Krasinski resisted the “wave of incoming calls from a wide variety of suitors,” but at some point, in the midst of a “massive bidding war,” the paper salesman conceded and decided to close “an expansive deal with ViacomCBS,” the value of which “has yet to be reported,” but is very likely “rich.”

For many, Krasinski’s media contract changed the narrative from Some Good News to One Big Sellout. Fueling the social media storm were tweets of disappointment and anger, some snarky, others more serious:

So he made 8 YouTube videos comprised largely of unpaid contributions from fans, sold the brand to a major conglomerate, and isn't even going to make it anymore? Just cashed out? Does this rub anyone else the wrong way, kinda? (@Lons, May 22)
Remember when he created this free feel good YouTube show to “make people feel good” and now he is................selling it for $$$? really cool, 100% honorable (@lindseyweber, May 21).
Super awesome how you found a way to take a genuinely heartwarming viral series and sell out to the highest bidder (@kswa1987, May 22).
This whole 'Some Good News' sh-- was so transparent. John Krasinski basically monetized feel good stories when there was an opportunity to do so. It's just all about money while, appearing relatable to the unwashed masses, and it's super obvious (@EckhartsLadder, May 26).
You are profiting off Some Good News!?! I bought you hook like me and sinker... believed you were just trying to bring goodnesses to light. Going from YouTube (free) to a pay service...so disappointed...sellout!!! (@hydenson, May 22).
The "Good News" that @johnkrasinski had on his program is that he is now a sell out and putting his program behind a paid service so way less people can see it. He has made money off his "Good News" program while people are dying, laid off, can't get food, etc. Smart, John (@JustAHikerinVA, May 22).

When so much harsh criticism is hurled at one of America’s most admired celebrities, one has to wonder if maybe there’s some merit to the sentiment: Did Jim Halpert’s biggest sale come at the people’s expense? Answering four key questions may help clarify the controversy:

1) Was creating SGN part of some diabolical plan? Lest we forget, the same actor who played Jim now portrays a more cold and calculating character, CIA analyst Jack Ryan. In fact, Krasinski has blamed Jack Ryan for selling SGN; although, it’s not exactly like it sounds—more to come below.

It's hard to know for sure, but there’s little to suggest that it was Krasinski’s original intent to build up SGN only so he could sell it to the highest bidder. In fact, most evidence points to the opposite, for instance:

He launched the first episode saying, “I am John Krasinski, and if it isn’t clear yet, I have absolutely no idea what I’m doing.”
Among the show’s “low production values,” his daughters drew the SGN signage behind the ‘news desk’ and his own hand held the spinning globe used in the show’s opening.
The Hollywood Reporter claims that “His original plan was to continue to make SGN for the free and wide audience that YouTube provided” and that he “initially resisted the urge to sell the series.”

2) Did Krasinski ‘use’ people to make the program? There’s little doubt that SGN wouldn’t have succeeded without the voluntary contributions of a wide variety of regular people. Did the unpaid populace get a raw deal in that exchange? Probably not, for these reasons:

It’s unlikely that anyone was promised compensation for their participation, i.e., they did so eagerly for free.
Those whose content SGN featured enjoyed what was likely for them a very exciting once-in-a-lifetime experience.
No one needed to pay to watch SGN. People could view it for free on YouTube.
Krasinski gave far more to SGN than anyone else. For instance, he “self-financed and self-produced” the show from his own home; he utilized his considerable professional talent; he leveraged his own fame to attract followers and his personal connections to enlist other A-List celebrities. Which of us can get the casts of Hamilton or The Office to show up on our Zoom calls?

3) Did Krasinski have a right to sell the series? It certainly seems like he was entitled to monetize his investment for the reasons suggested above and because of the following two points:

The show was his baby. He created and developed it through much of his own time, talent, and resources.
He made no promises about what he would do or not do with the show. A few of the negative reactions shared above suggest there was some sort of implied social contract: “John, you keep producing SGN at your expense, a few of us will contribute content to each show, and millions of people will watch if for free, indefinitely.”

4) Did his reasons for selling make sense? Most people, understandably, have focused on the considerable cash Krasinski will likely collect from the sale. As the first point below expounds, there’s nothing inherently wrong with making money, but there are also other reasons why selling SGN was the sensible thing for him to do.

This blog has suggested many times: If you can give someone good value in an exchange and make money for yourself, it's a good thing. Furthermore, unless someone else is supporting us, we all need to make money in order to take care of our own needs and hopefully help others in need. Even if Krasinski doesn’t need more money, it doesn’t mean he shouldn’t earn more and maybe use it to benefit others. The fact that he had the conscience to create SGN suggests he’s the type of person who is likely to do so.
Krasinski is a busy man. Besides being an actor (e.g., Jack Ryan), a director, and a producer, he’s a husband and a father, and he probably plays several other significant life roles. So, we can believe him when he recently explained that continuing to produce SGN “wouldn’t be sustainable with my prior commitments.”
More people may be exposed to good news. In justifying his decision to sell, Krasinski added that he was excited about the potential for SGN to be seen by “so many more people.” Of course, millions were already watching the show for free on YouTube, but his suggestion is more than a convenient excuse or wishful thinking. It’s reasonable to believe that an organization with the experience, resources, and reach of ViacomCBS could carry the concept of SGN much further than a guy (even a top celebrity) working out of his living room. Plus, if SGN gains even broader appeal, it’s likely to attract knockoffs from other media, which wouldn’t be a bad thing for a society desperately needing to focus more on the positive.

Do all the above bullets mean that Krasinski’s decision-making was perfect? No. Before the sale was announced, he could have clearly communicated his intentions, which wouldn’t have satisfied everyone, but it would have significantly softened the blow. As such, my own takeaway from the events are:

Good marketing communication responds considerately in a crisis.
Great marketing communication avoids a crisis by anticipating reaction and proactively shaping the narrative.

As a rule, people are much more accepting of unpleasant information when we tell them in advance, rather than letting them hear it later from someone else.

So, back at Dunder Mifflin, maybe Michael gives Jim a little grief for not telling him he had such a big deal in the works. Still, The Office’s manager is elated that Halpert scores the Scranton White Pages (it’s a hypothetical metaphor; you have to watch the show). In the end, everyone can appreciate that John Krasinski’s sale of SGN was “Mindful Marketing.”

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Profiting on Others' Pain

5/17/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

You’ve heard the saying, “Misery loves company.” Here’s an even hotter take: Misery makes money. Oftentimes the bigger the problem, the bigger the payout for solving it, but is it right for companies to monetize consumer misfortune, particularly during a pandemic?

Even as industries from airlines to entertainment struggle to survive the COVID-economy, some firms are enjoying record levels of revenue. For instance, Peloton, maker of those expensive in-home ‘exer-cycles,’ has seen sales surge so much that it plans to reduce advertising spending by 50% over the next three months.

“Spinning” isn’t the only pastime the pandemic has accelerated. People are more often binge-watching movies, having dinner delivered, and meeting friends online, which have boosted the bottom-lines of companies like Netflix, DoorDash, and Zoom.

Of course, there also are firms that have benefited even more directly from people’s fear of infection: those manufacturing face masks, hand sanitizer, etc. Clorox and Lysol, in fact, are selling antibacterial wipes so fast, their production can’t keep pace with demand.

In a non-pandemic world, the notion of companies making money gives many people pause, so the illness-associated timing of the latest corporate windfall has likely caused even more to wonder: Is it right for firms to profit from people’s pain?

When you start to think about it, there are actually a number of businesses that appear to profit perpetually from consumers’ misfortunes, for example:

Auto collision centers
Divorce attorneys
Fire and flood restoration firms
Funeral homes
Pest control companies

These enterprises don’t exist unless individuals experience: crashed cars, ruptured relationships, domestic disasters, lost loved ones, and belligerent bugs. How do the owners of these organizations sleep at night, knowing that their gain comes from their own customers’ pain?

The third industry on the above list reminds me of a disastrous event our family experienced on a cold January morning several years ago. A pipe burst in our house, sending water streaming through several rooms. The remedy included, among other disruptions, gutting our kitchen and having workers walking around our home for several months. Fortunately, insurance covered the costs and the recovery company did a great job.

Did the restoration firm profit from our pain? I’m sure it did, but it also ‘healed our house’ and helped us recover from the catastrophe. When you think about it, all of the companies on the list above do the same sort of thing in different ways. They’re all in the ‘restoration business.’

If one defines pain as an unmet need, or when an actual state is different than a desired state, almost every organization is in the pain management business. Hospitals help people recover from physical and mental pain, grocery stores and restaurants overcome hunger pains, and educators try to alleviate the prospective pains of ignorance and unemployment.

So, it’s not just organizations that profit from other’s pain, individual consumers do too. When I buy a pair of shoes that work well, the benefits I enjoy exceed the price I paid, meaning I profited from the retailer’s pain—its need to sell shoes.

Provided that the pain management goes both ways, or there’s mutual benefit, profiting from others’ pain is a good thing,

Unfortunately, however, there can be cases in which rewards are one-sided, such as when a firm’s business model depends on its own customers’ failure, thus purposefully prolonging their pain.

One example involves predatory lenders. Such financiers intentionally choose customers who hold high credit risk and, therefore, are unlikely to meet their payment obligations. When the debtor defaults, the lender comes out ahead by foreclosing on the home, repossessing the car, etc. Any business model based on win-lose outcomes is unconscionable.

Another more controversial example involves casinos. I have no firsthand experience, but it seems self-evident that these companies don’t make money unless the vast majority of their patrons lose theirs.

A reasonable argument may be made that gamblers are really purchasing entertainment and an adrenalin rush, just like spectators at an exciting sporting event or theater performance. A telltale sign of the difference, though, is that ads for Broadway shows don’t carry a disclaimer, “Musical addiction? Dial 1-800-HAM-ILTON.”

Is it wrong for companies to profit from people during a pandemic or any other time? It’s fine if firms enable win-win outcomes in which consumers profit back by getting good value from the hand sanitizer, face masks, food, clothing, Netflix, or whatever else they need. Mutual profit is often a sign of “Mindful Marketing.”

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Coopting Commencement

5/3/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

People are missing out on many favorite activities because of the pandemic, but not being able to eat in a restaurant or go to the movies are small sacrifices compared to the major life events some have been forced to forgo: weddings, honeymoons, graduations. Some caring companies have stepped in to ease the pain, but could their efforts actually be causing more harm?

As one who’s taught in higher education for two decades, I certainly appreciate the significance of college commencement. I’ve had a front row seat to thousands of students’ struggles and success over their four-year college careers, as well as to their graduation days, which are meaningful tributes marking the culmination of a lifetime of formal education.

When students’ academic journeys conclude, there’s tremendous relief and joy! The about-to-be graduates are excited, and their proud parents and grandparents are often even more animated—sometimes embarrassingly so. Families and friends want to be together to witness their loved one walk across the stage and to celebrate their momentous accomplishment.

Tragically, those celebrations will not happen on most college campuses this spring, as the coronavirus has pulled the plug on virtually all large group gatherings for the foreseeable future. While many formerly in-person experiences have been moved online, some with very little distortion, it seems impossible to replicate electronically the sights, sounds, and feelings of an on-campus commencement ceremony.

However, one ‘institution’ is making a great effort to ensure that this spring everyone’s graduation (high school, college, or other) is memorable. It’s not an organization you’d likely guess, but it is one with which you’re probably familiar: Anheuser-Busch. The King of Beers will play the role of principal and president at a very unique commencement event.

Natural Light, one of Anheuser-Busch’s many beer brands, will host “a virtual college commencement ceremony on Facebook Live to celebrate graduates around the world.” The ceremony will take place at 7:00 pm Eastern Time on Thursday, May 14, on Natural Light’s Facebook Page.

Graduating seniors who sign up in advance will have their names read on a “branded commencement microsite” by celebrities Shep Rose and Arianny Celeste. The event’s speakers will include, among others, Dallas Mavericks owner Mark Cuban and ESPN sports commentator Stephen A. Smith.

It’s great to see companies giving to those who tragedy has impacted physically, emotionally, and socially. Anheuser-Busch has a history of such corporate social responsibility; for instance, it has “donated nearly 83 million cans of emergency drinking water to disaster relief since 1988.”

Given the personalities employed, “Natty’s Worldwide Commencement” is likely to be an expensive event for its sponsor, even though done entirely online. It looks like the company wants to lift the spirits of soon-to-be grads, but are there other reasons Anheuser-Busch is willing to go to such effort and expense to offer an education-related event for free?

The rather obvious answer is that the firm wants to ‘teach’ young people to drink more Natural Light. A recent article in Marketing Dive suggests the same motive:

“Natural Light is attempting to make up for [coronavirus-related] losses while drumming up brand awareness among its core college-aged consumers. By providing this experience to young consumers during a difficult time, the brand could build good will and position itself in a positive light to help it nurture a loyal following of beer drinkers in the future.”

The fact that Anheuser-Busch’s motives for the commencement ceremony are not solely altruistic isn’t necessarily a problem. I, for one, am a firm believer that individuals and organizations can and often do successfully maintain more than one motive at a time, i.e., they can realize multiple goals simultaneously. Whether it’s a marriage relationship or a customer relationship, people often receive benefits from others, even as they give them.

There’s also not necessarily anything wrong with a beer company building pandemic-era brand equity by tapping positive consumer sentiment. Miller High Life, for instance, is running a contest to help couples get married at home. Thanks to the Miller Brewing Company, three engaged couples will win a “Wedding at Your Doorstep,” which includes beer, a photographer, an officiant, and $10,000 for honeymoon expenses. The company even promises to cover cancelled wedding costs.

So, what could be problematic with Anheuser-Busch’s product positioning? The issue is the target market. The company seems to be specifically targeting college students and is likely appealing to those even younger with its Natural Light line, which contains teen-friendly flavors like Strawberry Lemonade Beer and Strawberry Kiwi [hard] Seltzer.

Natty’s Worldwide Commencement is one piece of evidence that supports the college-targeting claim, but there’s more, such as an Anheuser-Busch promotion offering free beer to anyone turning 21, and a YouTube-based campaign to find a summer intern. Based on such evidence, Marketing Dive has deduced: “Natural Light in recent years has narrowed its marketing focus to reach college students.”

What’s more, aspirational purchase behavior often leads to target market creep: People who technically are not part of a target market buy its products because they want to be like those who are the ‘in’ group. For teens, this behavior often translates into wanting a more mature appearance and purchasing items aimed at those older than them.

What’s the connection to Natural Light’s Worldwide Commencement? It has to do with demographics. The National Center for Education Statistics projected that about 19.9 million students attended degree-granting postsecondary institutions in the fall of 2019. Of them, approximately 4.27 million (21.45%) were 19 years old or younger.

Another 4.47 million were either 20 or 21 years old. A conservative estimate is that 25% of those students, or 1.1 million, will not turn 21 by the end of May, which means nearly 27% of college students in the 2019-2020 academic year are 20 years old or younger (4.27 + 1.1 = 5.37 million / 19.9 million = 26.98%). In addition, almost all high school seniors are just 17 or 18 years old.

Anheuser-Busch’s target market for Natural Light is troubling in two ways. First, other than some rare exceptions, the legal drinking age in the United States is 21. For older college students, that’s not an issue, but for 27% of them and virtually all high school students, alcohol consumption is illegal.

Second, although many people do drink responsibly, there are potentially serious risks associated alcohol abuse, to which teens are especially susceptible. Here are some of the ‘sobering’ statistics from the Centers for Disease Control and Prevention:

Alcohol is the most commonly used and abused drug among youth in the United States.
On average, underage drinkers consume more drinks per drinking occasion than adult drinkers.
Those aged 12 to 20 years drink 11% of all alcohol consumed in the United States and more than 90% of the time are involved in binge drinking.
After drinking, 6% of youth drove and 17% rode with a driver who had been drinking.
Outcomes of underage drinking include changes in brain development, poor academic performance, social and legal problems, imprudent sexual practices, physical and sexual assault, and higher instances of suicide and homicide.
Every year, more the 4,300 underage youth die from excessive drinking.

Those who read my blog regularly might remember another time I took issue with marketers associating alcohol and academia. In January of 2017, I wrote a piece, “Alcohol Ads and College Athletics Don't Mix,” that questioned the NCAA’s designation of Dos Equis as “The Official Beer Sponsor of the College Football Playoff.”

It’s not that I thought another beer brand would be a better sponsor. I argued that having any alcohol company as an official sponsor of college athletics was “a paradoxical distinction that further propagates the false compatibility of beer and books, drunkenness and diligence, wasted-ness and wellness.”

In some ways, I believe Anheuser-Busch’s decision to sponsor a college commencement ceremony is even worse. First, its positioning as an event for ‘all graduates’ means it may reach an even younger demographic, which definitely doesn’t need any additional enticement to drink.

Second, while a graduation is a celebration, it should be a dignified one. Yes, people of age can choose to drink beer during a football game or soccer match, but they shouldn’t be drinking during a high school graduation or college commencement. Yet, that’s exactly what Natural Light encouraged in a Facebook post on April 9:

“Graduation ceremony cancelled? Sucks, but we got your back. We’re throwing a worldwide commencement ceremony for the class of 2020 . . . Plus, you get to drink beer.”

Another significant part of commencement is the stole that drapes over certain graduates’ shoulders, conveying special honors or individual achievement. As shown in a Facebook post on April 24, Anheuser-Busch has diminished that symbol of “prestigious recognition” by silk-screening Natural Light logos on a custom-made stole that it “might” send to those who like or share the post. Perhaps it's a stole for those who 'minored in binge drinking' and 'majored in partying.'

Finally, important but sometimes overlooked roles in a commencement ceremony are the people who read the names of the graduates. Where I work, those individuals are the deans of our various schools. As a graduate, it’s an honor to have your name read by an accomplished scholar or respected teacher. It’s another thing to have it ready by someone who’s resume includes “UFC ring girl” and “Playboy model.”

As a college professor and a marketer, I appreciate the need for partnerships between corporations and higher education. In fact, without the former’s support, most colleges and universities either could not exist or could not begin to serve students in the ways that they do. Tuition revenue typically cannot cover all operating costs or fund large capital projects like academic buildings, dormitories, and sports complexes.

Higher education needs business, and business needs higher education, for instance, to help prepare the next generation of employees. Everyone needs companies that respect the educational process and the people who participate in it, especially its young and most malleable consumers. Unfortunately, Anheuser-Busch’s global graduation ceremony is a thinly-veiled promotional-grab that offers no genuine respect for either.

Over the last month-and-a-half, I’ve been meeting via video conference twice a week with the students in our capstone marketing class, all of whom are seniors. Each time I see their faces on a computer screen, I feel for their loss—unable to enjoy campus life for their final semester. However, I’m sure each of these marketing majors, who have learned what it means to market for mutual benefit, can see past Natural Light’s benevolence façade and recognize the long-term risk its pop-culture ceremony holds for their peers.

It's nice that a star-studded event may temporarily lift the spirits of some of those most regrettably impacted by COVID-19. However, disregard for educational decorum and the well-being of those most vulnerable to alcohol’s harmful effects, earns Anheuser-Busch a degree in “Single-Minded Marketing.”

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The Business of Forgiveness?

4/18/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

“To err is human, to forgive is divine.” Alexander Pope’s adage applies to every person who has overlooked another’s offense or asked for forgiveness of their own, yet organizations often seem immune to any such ‘mercy mandate.’ At a time when many people are showing others unusual grace, should companies also be forgiving others?

The COVID-19-induced economic slowdown has derailed demand in most industries, leaving some businesses on the brink of insolvency. The U.S. Federal Reserve has promised $2.3 trillion in programs aimed at undergirding small and medium businesses; still, organizations of all sizes face immediate pressures to meet payroll, remit rent, and settle obligations with suppliers.

Many firms find themselves beholden to creditors like never before. While simply dismissing others’ debt may sound nice, such kindness cuts against the very grain of capitalism: Companies can’t remain competitive and profitable by giving away their goods and services. It may sound callous, but isn’t it just good business to forgo forgiveness?

Among the many hats I wore while a partner in our family’s promotional products company, was that of debt collector. At times, I would pick up the phone and call customers who had invoices that were 60, 90, or more days overdue. It wasn’t a job I enjoyed, but if enough of that revenue remained outstanding, it would take a significant bite out of our small business’s bottom-line. Although I worked to keep the conversations amicable, I wasn’t calling to offer forgiveness.

Fast forward a couple of decades—As I watched the April 9, 2020 installment of CNBC’s Squawk on the Street, the show’s often insightful and easily excitable Jim Cramer became uncharacteristically subdued while considering the pandemic’s unprecedented economic impact. In order to battle through the shared struggle, he recommended that businesses offer each other financial “forbearance.”

How surreal to hear the former hedge fund manager of Mad Money fame, who aims to help ordinary people understand the stock market and invest profitably, offer business advice that appeared tantamount to fiscal heresy. Had the Mad Money host gone mad? Or, has a time come when companies should be extending financial forgiveness?

To answer these questions, it’s important to differentiate forgiveness from forbearance. These definitions of the two verb infinitives seem especially relevant:

Forgive: to cancel an indebtedness or liability of
Forbear: to be patient or self-controlled

So, my earlier conflation of the two terms was somewhat misleading. While any forgiveness naturally includes forbearance, forbearance does not necessarily involve forgiveness. For example, a landlord can choose to forgive a month’s overdue rent, i.e., never collect it; or, he/she can forbear, i.e., give the tenant more time to pay.

In the Squawk on the Street segment, Cramer did aptly apply forbearance, suggesting that firms should be patient with their debtors. At the same time, he didn't preclude forgiveness, i.e., if a company can afford to reduce or cancel a specific debt, even better.

Such recommendations prompt two more important questions: Who exactly should forbear or forgive and why? The following story may offer answers.

The owner of a small grocery store was many months overdue on a $1,000 invoice from a large produce supplier. Unable to pay, the store owner begged his creditor for more time: “Please be patient and I’ll pay the bill.” The produce company owner felt sorry for his customer, so he told him, “It’s okay; we’ll cancel this invoice. You don’t owe us anything.”

The same day, a regular customer, who was recently out of work, came into the grocery store and asked the owner. “I’ve been shopping here for years and just lost my job. Could I get $10 worth of food to feed my family tonight? I can pay you tomorrow when my unemployment check comes.”

The store owner berated the customer: “Get out of here! I’m not running a charity!” When the produce supplier heard about the incident he was enraged. He phoned the grocery store owner: “I cancelled all of your debt. Why couldn’t you show some grace to one of your customers?”

Some may recognize this story, which is a modern paraphrase of the biblical parable from Matthew 18:21-35. Whether two thousand years ago or now, the moral is the same: We all should show grace to others because others show grace to us.

Over the past month, that point has been ‘brought home’ for me literally, as the pandemic has moved virtually all of higher education online. My house is somewhat unique in that in one upstairs room there’s me, sometimes asking my students for patience as I adapt to teaching college courses online. Meanwhile, down the hallway our son is taking classes from a different college, and his instructors are dealing with similar challenges.

As a college professor and the parent of a college student, I’m both a supplier and a consumer of higher education services. If I’m going to ask my ‘customers’ for forbearance, the least I can do is extend similar forbearance to our family’s ‘educational service provider.’

Life’s winding paths often lead to unexpected outcomes. Earlier I mentioned the collection phone calls I made decades ago for our family business. I can no longer remember any of the overdue accounts I called, except one: A company I had never seen that was located about 80 miles to the south that sold/rented lawn and excavating equipment.

I recall this account because it took what seemed like forever until I finally got to talk with the owner and kindly implore him to pay several long-past-due invoices. Significant interest charges had accrued, but I told him, “Just pay the original amounts, we’ll forgive the interest,” and he did.

I also remember this account because after we sold our family business and I entered higher education, our family happened to move within a few miles of where that business is still located. Now, I’m occasionally one of its customers.

As flawed people who work for imperfect organizations, we all need to extend and receive forbearance at times, especially during a crisis. That doesn’t mean enabling those who take advantage of kindness, nor does it preclude going a step above and beyond to forgive an obligation entirely. A healthy balance of forbearance and forgiveness is good for business and makes for “Mindful Marketing.”

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Pivoting in a Pandemic

4/4/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

“When life gives you lemons, make lemonade.” Evaporating demand due to COVID-19 has caused many industries to sour, yet some innovative organizations continue to score in unexpected sweet spots. Thanks to creative thinking and agile adjustments of their marketing plans, certain companies have rapidly repositioned themselves for productivity uninfected by the virus.

Serious fans of basketball are familiar with an offense skill, not often employed in the current era of three-point shooting: the pivot foot. In order to move with the ball, a player must, of course, dribble. Once he stops and holds the ball, he can’t dribble again; however, he can still move provided that one ‘pivot’ foot remains planted on the floor.

Few basketball players use their pivot foot to its full potential, but those who do can adeptly avoid defenders’ grasps by turning their bodies 180 degrees, or even in full circles. Doing so, they can make what may have looked like a lost possession into an amazing pass or a spectacular shot.

The coronavirus has caused many organizations to ‘pick up their dribble,’ stopping them in their tracks. Some companies, however, have realized that both feet don’t need to be bolted to the floor. They can still pick up one foot and pivot, finding profitable new opportunities, sometimes in a direction opposite the one they were facing.

A few firms that have made very ‘hard pivots’ are those that have decided to manufacture products they never made before, including ones crucial for lessening the pandemic’s impact:

3M, Ford, and GE are partnering to produce respirators desperately needed by those suffering from the harshest effects of COVID-19. The companies are “repurposing existing parts and hundreds of workers in a wartime-like battle against the outbreak.”
Leveraging its 3D printing capabilities, Ford is also expecting to produce 100,000 face shields per week, which frontline healthcare workers need to protect themselves from the dangerous droplets that coughing and sneezing patients propel.
Many companies have started manufacturing for the first time the smaller, lighter face masks that people increasing wear to avoid spreading the virus if sick, or to avoid contracting it if healthy. Some of the mask producers include Carhartt, Eclipse International, and Gap. Even high-end fashion brands like Burberry, Dior, and Giorgio Armani have promised some of their production capacity.
With Purell and its competitors unable to meet demand, several companies we wouldn’t expect also are now bottling hand sanitizer, including distilleries of Anheuser-Busch and Pernod Ricard, the maker of Absolut Vodka. According to FoodDive, “Drinking alcohol and rubbing alcohol are not identical substances, but they can be used as substitutes for each other.”

The preceding pivots are in the spirit of President Trump’s invocation of the Defense Production Act, which allows a commander-in-chief to divert civilian manufacturing capacity and resources to the production of goods that promote national defense.

Meanwhile, other organizations have seen market disruption in their own industries and moved decisively to capitalize on the resulting opportunities. Those pivots have often involved emphasizing specific goods and services that complement the ways many of us have been forced to adapt our daily lives, for instance:

Groupon is promoting cooking at home items like cookbooks, meal starter kits, and cookware.
Giant Food Stores is highlighting “contactless ways to shop.”
Best Buy is running sales on technology that helps people stay connected digitally.
Bed Bath and Beyond is promoting trash cans with voice- and motion-controlled lids.
Warner Bros. is speeding up the release of movies to streaming services.

All of the above are prudent pivots; however, one of the most significant ones I’ve seen comes from an organization you may not know, unless you have a child between the ages of two and eight who likes soccer.

“Driven by the belief that a positive experience with sports can make a lasting impact on a child’s life,” Soccer Shots teaches soccer skills and life skills in affirmational ways to the youngest of athletes. Since opening its first franchises in 1997 in Charlotte, NC and Harrisburg, PA, the company has grown to nearly a half million enrollments in 37 states and Canada.

As one might expect, Soccer Shots’ business model is based on face-to-face interactions between coaches and kids in physical spaces. So, how does an in-person organization respond when social distancing directives don’t just spread the field, they end the game? The player pivots.

The company has swiftly created “Soccer Shots on the Go,” a virtual sports education program that allows young people to learn soccer skills with Soccer Shot coaches, in the safety of their homes. Soccer Shots Franchising (SSF) describes the program:

Soccer Shots On The Go uses our expert-approved curriculum to help families get moving and have some fun…at home! Each week, you’ll receive an age-appropriate video packed with soccer skills, character development and creative ways to stay active. Soccer Shots On The Go also includes activities and resources for the entire family delivered directly to your email.

The notion that learning soccer ‘online’ can’t be quite the same as learning it on the field is not lost on Steve King, executive director of the company’s Harrisburg-York, PA region. He readily acknowledges the difference and puts in perspective:

“Certainly there are some different or missing components compared to being in-person, including the child-coach interaction for which we are so well- known, but the quality of the video sessions is terrific, and our longtime experience with child development and curriculum-based programming is seen in both how the videos are produced and how the child is engaged with the coach who is on-screen.”

Helping others survive the devastating health and economic impacts of coronavirus comes first, then individuals and organizations should think how they can thrive amid the challenges. In the face of unprecedented disruption, Soccer Shots co-founder Jason Webb cheers his team for making just that kind of “impressive pivot,” skillfully creating “a quality, professional-produced program alternative” for all those Soccer Shots serves.

Sometimes anguish is unavoidable, but pivoting in the face of pain is “Mindful Marketing.”

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Sick and Healthy "Viral Marketing"

3/21/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Difficult times bring out the best and worst in individuals and organizations. You’ve likely seen some of each during recent days. Although it’s frightful to find our world battling a pandemic, it’s a healthy occasion to diagnose what is and isn’t Mindful Marketing.

One of the ‘sickest’ cases has involved two entrepreneurial brothers from Tennessee. When Matt and Noah Colvin heard of the first U.S. death from coronavirus, they quickly began buying all the hand sanitizer and antibacterial wipes they could find—around Chattanooga, across Tennessee, and throughout Kentucky.

After emptying stores of the valuable virus-fighting products, they piled palettes of their pillage in a garage and began selling the items online for a premium: between $8 and $70 each for the first 300 bottles of hand sanitizer M. Colvin listed on Amazon.

The gig lasted for about a day before “Amazon pulled his items and thousands of other listings for sanitizer, wipes and face masks” and “eBay soon followed with even stricter measures.” The retailers’ swift actions and accusation of price gouging left Colvin sitting on over 17,000 bottles of sanitizer he couldn’t sell, even as people around the world were desperate to get their hands on the products and the product on their hands.

Was Colvin “profiteering from a pandemic,” or were Amazon and eBay unnecessarily constraining capitalism? Colvin claimed he provided a “public service” by exploiting market inefficiencies and redistributing products to other parts of the nation where they were needed more.

Could he be right? Perhaps he was improving the supply chain. Also, how different were his actions than someone making a significant purchase of a publicly-traded stock with the hope that their big investment will help push the security’s price upward?

First, it’s safe to assume that national and regional retailers like CVS and Walmart, with decades of logistics experience and cutting-edge supply chain processes, didn't need Colvin to help get products to places in the country where they’re in short supply. Furthermore, any person with an internet connection could conceivable buy hand sanitizer online and have it shipped directly to them, no matter where they live.

Second, there’s a big difference between playing the stock market and ‘playing the hand sanitizer market,’ especially in the face of a pandemic. People don’t need to own Apple, Tesla, or any other specific stock; however, Individuals do have to have products that can help them avoid contracting a serious illness that could kill them or someone they might infect.

The Colvin brothers’ actions were the epitome of “Single-Minded Marketing,” which quickly turned “Mindless” once Amazon pulled the plug on their online sales. Such blatantly selfish actions are pretty easy to diagnose, but what about the wide continuum of tactics other organizations have employed amid the outbreak?

Some emails that have hit my inbox within the last few days seem tone-deaf to health advisories that have asked us to forgo nonessential services, to practice social distancing, and to be extra careful with hand hygiene. Although less extreme than those of the Colvin brothers, these tactics also seem “Mindless”:

Groupon: specials on Swedish massage, axe throwing, ice skating, and even “group bowling”
Local Flavor: offers on experiences such as billiards, salt room, and climbing walls
Bed Bath & Beyond: promotional copy reading, “Put a spring in your hosting game with fresh and EXCLUSIVE picks”; “Dazzle guests without breaking a sweat (or the bank)”
Old Navy: ad image showing two women walking with arms wrapped tightly over the other’s shoulders while smiling at each other, with faces about eight inches apart

Meanwhile, certain other companies have shown healthier situational awareness by quickly adjusting their marketing communication from “Mindless” to “Mindful”:

Coors: pulled its “Official beer of ‘working’ remotely” spots that lampooned the nation's annual loss of productivity during March Madness
Hershey: removed ads that featured people shaking hands and hugging while sharing candy.
KFC: pulled its ‘finger lickin’ ads in the UK

There’s also been an abundance of vibrantly “Mindful” correspondence from companies aimed at calming our anxieties by describing what they’re doing to keep employees and us safe:

Enterprise: “Aligned with guidance from health authorities, we are implementing additional measures to clean and disinfect our locations and vehicles.”
Chase: “We've ensured that our branches, including ATM screens and keypads, are cleaned daily with EPA-approved disinfectants and we have hand sanitizer available in our branches.”
Best Buy: “The first [goal] is to protect our customers, employees and their families. The second is to do the best we can to serve the millions of Americans who are looking to us for increasingly vital technology tools to stay connected, as well as household necessities.”
Office Depot: “We’ve reinforced existing Office Depot policy encouraging employees who exhibit flu-like symptoms to stay home and consult with a medical professional.”

Finally, a few firms have ascended to the highest level of corporate health and community consciousness by going above and beyond what might be expected even for “Mindful Marketing,” for instance:

U-Haul is offering 30 days of free self-storage to students who need to move due to coronavirus.
Highmark Blue Shield has waived all copays, deductibles, and coinsurance for 90 days for those with telemedicine access “because the safest place for you if you’re sick is at home.”
Wiley is providing instructors and students who do not have an online learning solution free access to its courseware for the remaining spring 2020 term.
Martin’s Famous Pastry Shoppe has increased production of its popular potato rolls and other bread products in order to keep stores stocked during periods of intense demand.

To unpack the last example, there are few things as anxiety-inducing as walking into a grocery store during a crisis, only to find shelves empty of bread, which may be the most staple of foods for Americans. However, people living in areas where Martin’s distributes can still find its products on their store’s shelves every day, even on Sunday. Scott Heintzelman, vice president of finance and administration for Martin’s explains:

“Almost no commercial bakeries deliver [Sunday]. However, our awesome bakery and transport teams have been working around the clock to make and move truckloads of extra product to our warehouses. The result is on Sunday morning, many of our amazing distributors and sales teams are out making deliveries to help feed people. I am truly humbled by our team members.”

As a writer, I should disclose that Martin’s is a faithful supporter of Messiah College, where I teach. Also, Heintzelman, who I call “Scott,” was my college roommate, the best man in my wedding, and still a best friend.

During this moment of nearly unprecedented uncertainty, many people probably feel like Martin’s and other firms that have gone above and beyond to meet important, life-sustaining needs are their best friends. It’s times like these when we really need friends, and when we can be especially grateful for organizations that practice “Mindful Marketing.”

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Giving Poor Athletes an Assist

3/5/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Few fans of major professional sports ever say, “I feel so sorry for those players.” After all, the average NFL salary is about $2.7 million, and MLB and NBA players earn even more: $4 million and $7.1 million, respectively. However, what's a dream for many athletes can quickly turn into a nightmare once their playing career ends.

Yes, there’s the long-term impact of knee surgeries and head trauma, but many former professional athletes also endure another kind of body-blow: a financial one. Now a reality TV show with an unlikely host hopes to pull past players out of their poverty.

The NFL’s new collective bargaining agreement (CBA) has proposed increasing the minimum player salary from $495,000 to $510,000. You may be thinking, “That’s a ton of money,” which it is. There are, though, other important circumstances to consider when playing careers end.

While there are the rare retired athletes who land very lucrative endorsement deals, like the $130 million Michael Jordan makes annually from Nike, and the $17 million-a-year broadcasting contract former NFL quarterback Tony Romo recently secured from CBS, most former athletes’ incomes fall off a cliff. Once retired, they command only a fraction of what they earned on the field or court, partly because elite athletic competition often comes at the expense of developing other marketable job skills.

It’s possible to blame some athletes for spending too much and not saving enough, but it’s also true that many enter professional sports in their early twenties or even in their teens, where they may encounter corrupt financial advisors and temptations to make bad business decisions, all during playing careers that often last just a few short years.

Unfortunately, there’s a growing list of former professional athletes, including long-tenured ones, who have found themselves in financial peril after their playing careers ended. Some on that luckless list include well-known former NFL players Bernie Kosar, Warren Sapp, Lawrence Taylor, and Vince Young. If these once high-equity athletes can lose most of their money, it’s easy to imagine how ones on the opposite end of the earning scale can end up insolvent.

So, who has stepped to the plate to help poor past pros? It’s someone I wouldn’t have expected: former MLB player Alex Rodriguez.

During his 22 seasons of major league baseball, twelve with the New York Yankees, “A-Rod” established himself as one of the greatest players of all time with stats such as a .295 batting average, 696 home runs, 25 grand slams, 3,000+ hits, 14 All-Star appearances, and three Most Valuable Player Awards.

However, despite all that success, and two Gold Glove Awards, Rodriguez made an epic error: To deal with chronic back pain and so he could “put up big numbers,” Rodriguez violated MLB policy and used steroids. That mistake caused the league to suspend him for the entire 2014 season, which Rodriguez says, “cost me my reputation, and it may have cost me the Hall of Fame.”

Now, fast forward to a few weeks ago: I’m watching television, and a show comes on CNBC called “Back in the Game,” starring . . . Alex Rodriguez. I remembered promos for the program describing its premise—Rodriguez helps former athletes and entertainers rebound from financial ruin. I’m about to change channels when I see who he’s helping this episode: Ryan Lochte.

If you’ve forgotten, Lochte is a very accomplished U.S. swimmer who won 12 Olympic Medals but infamously embarrassed the entire nation after the 2016 Summer Olympics with a drunken escapade that included vandalizing the bathroom of a gas station in Rio de Janeiro. To cover up the mess, he filed a false police report, claiming that he and three teammates were robbed at gunpoint.

Not being a big fan of Rodriguez or Lochte, I have two good reasons to change channels, yet something compels me to stay tuned—maybe the unseemly sense of an impending train-wreck.

Reality-TV-show-host is just one of Rodriguez’s post-retirement gigs. He’s also an announcer for EPSN’s Sunday Night baseball. Furthermore, he’s the founder and CEO A-Rod Corp, a firm that “identifies, originates and manages investments across a broad array of industries, including real estate, sports and wellness, media, and entertainment.” On the corporation’s website, Rodriguez tells how his desire to start the company came from an impoverished childhood in which his mother tirelessly worked multiple jobs to afford ever-increasing rent.

Now, with annual income of about $33 million and net worth over $350 million, Rodriguez has clearly broken the cycle of poverty and achieved financial freedom in his post-playing career. Several pictures on the A-Rod Corp website visually support that success, such as one of the former slugger sporting sunglasses and a stylish grey suit as he poses proudly in front of his private jet with the firm’s ‘baseball swing’ logo emblazoned on the tail.

During his playing career, some described Rodriguez as “moody” and “aloof” and even as “the most egocentric player in Major League Baseball.” Could someone who was and still seems caught up in his own success, truly care about the well-being of others? Despite such skepticism about Rodriguez and Lochte, I can’t look away from the reality show spectacle.

As slugger met swimmer, the former challenged the latter to make lifestyle changes that could help anyone facing financial peril. For instance, Rodriguez urged Lochte to reduce reoccurring expenses by replacing pricey monthly payments on two very posh cars with a single lease on a much more modest ride.

Rodriguez also helped Lochte identify new income earning approaches, including some personal brand-appropriate endorsement deals and several solid speaking engagements. However, these new PR opportunities seemed likely to sink Lochte, unless the swimmer could rise above one ostensibly unsurmountable obstacle: his ego. Given Rodriguez’s own epic fail and apparent self-absorption, how could he possibly coach Lochte free from such hubris?

As it turns out, Rodriguez had come to terms with his own rocky past, several years before. A 2017 ESPN article described how the former all-star genuinely owned his steroid error, tearfully admitting the hurt he had caused his wife, daughters, and others and accepting full responsibility for his “stupid” mistake.

In the Back in the Game episode, Rodriguez also recounted how he undertook another extremely difficult task—apologizing to his former teammates. Now the slugger was asking the swimmer to attempt the same formidable feat. At first Lochte balked, but eventually he picked up his phone and started making calls.

With just his first apology, Lochte’s countenance visibly changed. One could see how the normally brash competitor was visibly broken. One also could hear how those on the other side of the phone calls were moved by his genuine humility, as they accepted his heart-felt apologies.

As I watched both Rodriguez and Lochte realize redemption, my cynicism subsided. I gained new-found respect for these former athletes, and I was reminded of three things: even the mighty fail, everyone needs help in some way, and all people have the potential to change.

I haven’t yet watched other episodes of Back in the Game, and I’m not sure how many others have seen the show. It seems, though, that an interesting TV program that encourages personal responsibility and restored relationships can rise to the level of “Mindful Marketing.”