Vertical Pulse

Lennar Fights to Protect its Reputation

According to an article in The Wall Street Journal, a Florida-based real estate agent has orchestrated a campaign against Lennar Corp., one of the nation's largest homebuilders. The real estate agent, Mike Morgan, claims that he is owed over $200,000 in commissions in home sales that he made but that were later rescinded by Lennar. (Lennar accommodated some 130 home buyers who got cold feet when Florida's real estate market began hitting the skids.)

Mr. Morgan's website www.defective-homes.net points to many alleged shortcomings of Lennar's homes.

It is interesting to note that Lennar is highly concerned about defending its reputation in this dispute. Stuart Miller, Lennar's CEO, is quoted as saying, "As a company with a 50-year history of exemplary customer service and integrity, we are left with no choice but to vigorously defend our company against those who attack our name and reputation with unfounded allegations."

Perhaps partly because Mr. Morgan is using his site for private gain, a federal magistrate judge recommended a preliminary injunction preventing Mr. Morgan from using the word "Lennar" in Web-site domain names.

These are some of the issues that will be discussed at IncreMental Advantage's Reputation Management Conference. Visit www.incrementaladvantage.com for more details. Or contact Neomi Barazani at neomi@incrementaladvantage.com or 609-919-1895 ext. 100. 

Michael Vick and Nike

Allegations now abound that pro-football star, Michael Vick, tortured his dogs. These allegations caused Nike to suspend the release of its latest product line named after the Atlanta Falcons quarterback. There is an interesting question here: when a sponsor endorses a celebrity and the celebrity brings bad press, when must the the sponsor break its contract to protect its reputation. This is one of the issues that will be discussed at the Reputation Management Conference.

Whole Foods CEO Damanges His (Firm's) Reputation

It was recently revealed that John Mackey, CEO of Whole Foods, assumed a fictitious online identity to praise Whole Foods and castigate its rival, Wild Oats Markets. While there may not have been any laws broken, Whole Foods' reputation will clearly take a hit. The irresponsible actions of a CEO negatively impacts his company's relations with its employees, vendors, customers, media and community. Whole Foods has already attracted a flurry of unflattering media attention and its share price has dropped since this story broke.

Many facets of Reputation Management will be addressed at IncreMental Advantage's Reputation Management conference on November 6 in New York City. Further information can be obtained by visiting www.incrementaladvantage.com or by contacting Neomi Barazani at 609-919-1895 ext 100 or by emailing neomi@incrementaladvantage.com.