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	<title>Starkman &#38; Associates &#187; rahodeb</title>
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		<title>World&#8217;s Most Ethical Grocer Caught in Serious Ethics Flap</title>
		<link>http://www.starkmanassociates.com/blogs/eric/worlds-most-ethical-grocer-caught-in-serious-ethics-flap/</link>
		<comments>http://www.starkmanassociates.com/blogs/eric/worlds-most-ethical-grocer-caught-in-serious-ethics-flap/#comments</comments>
		<pubDate>Fri, 13 Jul 2007 18:27:16 +0000</pubDate>
		<dc:creator>Eric Starkman</dc:creator>
				<category><![CDATA[Public Relations]]></category>
		<category><![CDATA[Reputation Management]]></category>
		<category><![CDATA[ethics]]></category>
		<category><![CDATA[integrity]]></category>
		<category><![CDATA[john mackey]]></category>
		<category><![CDATA[rahodeb]]></category>
		<category><![CDATA[wal-mart]]></category>
		<category><![CDATA[whole Foods]]></category>

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		<description><![CDATA[Well, it seems Wal-Mart isn&#8217;t the only retailer practicing deception on the Internet. John. P.&#160; <a href=http://www.starkmanassociates.com/blogs/eric/worlds-most-ethical-grocer-caught-in-serious-ethics-flap/ rel="bookmark" title="Link to World's Most Ethical Grocer Caught in Serious Ethics Flap">more</a>&#8230;]]></description>
			<content:encoded><![CDATA[<p>Well, it seems <a href="http://www.businessweek.com/bwdaily/dnflash/content/oct2006/db20061018_445917.htm" title="Link to BusinessWeek: Wal-Mart and Edelman Astroturfing" target="_blank">Wal-Mart isn&#8217;t the only retailer practicing deception</a> on the Internet. <a href="http://www.wholefoods.com/blogs/jm/" title="Link to John Mackey's blog at Whole Foods" target="_blank">John. P. Mackey</a>, the vegan yogi CEO of Whole Foods Market, has been unmasked by the Federal Trade Commission as Rahodeb, an inveterate Yahoo message board contributor who touted the specialty retailer&#8217;s stock and had a certain fondness for its leader&#8217;s grooming. Rahodeb, I mean Mackey, reportedly posted more than 1,000 entries over a seven-year period.</p>
<p>In case you haven&#8217;t been following the saga, John Mackey wants to buy rival Wild Oats Markets, but the FTC wants to deep-six the deal.  Mackey wants to deep-six the FTC.  He has questioned the agency&#8217;s legitimacy and accused it of being &#8220;hostile and adversarial towards Whole Foods.&#8221;</p>
<p>Well, Mackey&#8217;s got that right.  The Rahodeb disclosure was contained in a footnote of a document made public by the FTC late Tuesday and reported late yesterday by the <a href="http://online.wsj.com/article/SB118418782959963745.html" title="Link to Wall Street Journal: Whole Foods Is Hot, Wild Oats a Dud &ndash; So Said 'Rahodeb'" target="_blank">Wall Street Journal Online</a>.  I can&#8217;t imagine where the little birdie came from who told the Journal to look for the footnote.  Government bureaucrats can be awfully touchy when a CEO they are challenging <a href="http://www.wholefoods.com/blogs/jm/archives/2007/06/whole_foods_mar_1.html#3" title="Link to John Mackey's blog questioning FTC integrity" target="_blank">publicly questions their ethics and integrity</a>.</p>
<p>But let&#8217;s give Mackey his due.  Wal-Mart reportedly pays <a href="http://www.edelman.com/" title="Link to Edelman homepage" target="_blank">Edelman</a> some $1 million a year to come up with such ideas as the infamous &#8220;<a href="http://walmartingacrossamerica.com/" title="Link to Wal-Marting Across America homepage" target="_blank">Wal-Marting Across America</a>.&#8221;  It appears that Mackey concocted and executed his deception all by his lonesome at no cost.  Whole Foods&#8217; shareholders gained further value for the $1 a year Mackey takes in salary.</p>
<p>From a crisis communications prospective, I also give Mackey credit for choosing to post a statement on Whole Foods&#8217; website, rather than granting an interview to the Journal � he would no doubt have dug himself a deeper hole.  But his unnamed spokeswoman did him in instead.  &#8220;(Mackey&#8217;s) comments weren&#8217;t illegal&#8221; she told the Journal.  Yes, but that begs the question, &#8220;does he still beat his wife?&#8221;</p>
<p>Mackey isn&#8217;t the only one with egg on his face (organic or otherwise).  <a href="http://ethisphere.com/" title="Link to Ethisphere homepage" target="_blank">Ethisphere Magazine</a>, a national magazine &#8220;dedicated to illuminating the correlation between ethics and profit&#8221; in May named <a href="http://ethisphere.com/2007-worlds-most-ethical-companies/" title="Link to Ethisphere: 2007 World's Most Ethical Companies" target="_blank">Whole Foods &#8220;one of the world&#8217;s most ethical companies.&#8221;</a> Step seven in the magazine&#8217;s methodology is to screen their pared-down list of companies through a Who&#8217;s Who of corporate watchdogs including <a href="http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?MenuID=1" title="Link to World Business Council for Sustainable Development" target="_blank">The Business Council for Sustainable Development</a>, <a href="http://www.stthom.edu/cbes/" title="Link to The Center for Business Ethics" target="_blank">The Center for Business Ethics</a>, and several for-profit consultants and investment firms like <a href="http://www.newalternativesfund.com/" title="Link to The New Alternatives Fund" target="_blank">The New Alternatives Fund</a>, <a href="http://www.sustainability.com/" title="Link to SustainAbility" target="_blank">SustainAbility</a>, and <a href="http://www.winslowgreen.com/" title="Link to Winslow Management Company" target="_blank">Winslow Management Company</a>, among others.</p>
<p>Hmm&hellip; I look forward to seeing how a magazine focused on ethics handles its own public relations crisis.</p>
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