Analysis of Greenpeaces Unfriend Coal Campaign and Facebook

A report submitted to Prof. Madhusri Shrivastava in partial fulfilment of the requirements of the Written Analysis and Communication course

By Group 3 PARTICIPANT Abinash Behera Aishwarya Pothula Dhruv Chadda Parth Amin Pradipta Majumder Ramesh Goud ROLL NUMBER 2012PGPRAK006 2012PGPRAK007 2012PGPRAK020 2012PGPRAK029 2012PGPRAK030 2012PGPRAK034

16 April, 2013

Analysis of Greenpeaces Unfriend Coal Campaign and Facebook

A report submitted to Prof. Madhusri Shrivastava in partial fulfilment of the requirements of the Written Analysis and Communication course

By Group 3 PARTICIPANT Abinash Behera Aishwarya Pothula Dhruv Chadda Parth Amin Pradipta Majumder Ramesh Goud ROLL NUMBER 2012PGPRAK006 2012PGPRAK007 2012PGPRAK020 2012PGPRAK029 2012PGPRAK030 2012PGPRAK034

16 April, 2013

Letter of Transmittal

Group - 3 PGP-RAK Indian Institute of Management-Indore

10 April, 2013

Ms. Madhusri Shrivastava Instructor-WAC Indian Institute of Management-Indore

Analysis of the case Greenpeaces Unfriend Coal Campaign and Facebook

Dear Madam As per your instructions following the preliminary discussions conducted on April 10, 2013, we have prepared a report regarding the future course of action Facebook must adopt to control the negative publicity generated by the aggressive campaign launched by Greenpeace against their Prineville data center. The analysis is done based on the defined criteria while considering the options available. It is recommended that Facebook shift their data center out of Prineville to a location where alternate, eco friendly sources of energy can be utilized. If there are any queries regarding our analysis, we would be available for discussion at your convenience.

Sincerely

Group-3 i

Executive Summary Facebook, a social media site with approximately half a million members in the year 2010, proposed to set up a data center at Prineville. The energy at this data center would be sourced primarily through coal. Greenpeace, a powerful non governmental organization launched a campaign against the Prineville data center. They believed that as a consequence of its leadership position in the Information Technology industry as well as its wide reach, Facebook must promote the use of eco friendly sources of power. Given the negative publicity generated by Greenpeaces campaign against the Prineville data center, Facebook must consider the possible future course of action. It is recommended that Facebook shift the data center out of Prineville to a location where alternate, eco friendly sources of energy can be utilized.

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Contents Situation Analysis.......................................................................................................................... 6 Problem Statement........................................................................................................................ 6 Options ........................................................................................................................................... 7 Criteria for Evaluation ................................................................................................................. 7 Evaluation of Options:.................................................................................................................. 8 Recommendation........................................................................................................................... 9 Action Plan .......................................................................................Error! Bookmark not defined.

Situation Analysis Facebook is a social media site that enables people across the globe to connect with one another, network, and share information. In addition to having half a million members by July 2010, Facebook was also subscribed to by several organizations. It is viewed as a leader and trendsetter in the information technology industry. Greenpeace is a powerful non-governmental organization known for its deep commitment to environmental causes. It is financially independent and is viewed as neutral in terms of having no permanent allies or adversaries. By the year 2010 Greenpeace operated in over 40 countries with 29 offices and had an operating income of $251 million. Facebook, in 2010, proposed to create a new data center at Prineville. This center intended to source its energy from PacifiCorp, a firm which would provide 60% of the energy through burning of coal. Facebook however, proposed to capitalize on the climate at Prineville and create an energy efficient system. In February 2010 Greenpeace launched an aggressive campaign called Unfriend Coal. This campaign highlighted the fact that Facebook, as a consequence of its leadership position in information technology, and its wide reach, must promote the use of alternate and non polluting sources of energy. Greenpeace also reported that Facebooks power requirement in the year 2020 was going to be 1963 billion kilowatts. The campaign not only used social media platforms such as Facebook to garner about 500000 supporters, but also launched a seemingly personal attack on Facebook CEO Mark Zuckerberg, through a video publication. Initially, Facebook did not take Greenpeaces opposition very seriously and even proposed to double the size of the Prineville plant. They resorted to defensive strategies and publicized the fact that power at some of Greenpeaces own data centers were also sourced through coal. It soon became apparent Greenpeaces campaign would not lose momentum as easily as Facebook had initially expected. To add to the pressure Greenpeace Executive Director Kumi Naidoo had sent a letter to Mark Zuckerberg requesting that the two parties engage and arrive at a possible solution.

Problem Statement The possible future course of action for Facebook keeping in mind long term implications of the negative publicity generated by Greenpeaces aggressive and seemingly unrelenting campaign against the Prineville data center.

Options 1) Shift the data center out of Prineville to a location where alternate, eco friendly sources of energy can be utilized 2) Ignore the campaign and continue with the current plan 3) Shift the data center to a new location but continue to use coal as a source for power 4) Accede to all of Greenpeaces demands and implement the solution they provide for the Prineville plant, as well as for the future 5) Attempt to reach a middle ground by complying with some of Greenpeaces demands 6) Respond to Greenpeaces campaign by launching a movement against them

Criteria for Evaluation 1) Impact on the image of Facebook 2) Long-term benefits measured as Facebooks public perception and meeting projected power requirements 3) Impact on the environment 4) Impact on the profitability of the company

Options Shift data center and use renewable of Ignore the for sources energy campaign Positive High on Positive Negative Negative Positive Negative Low Accede to all Shift data of center but Greenpeace's continue to demands use coal (Prineville) Could be positive Positive Low High Attempt to reach a middle ground Could be positive Not too high Positive (minor difference)

Criteria evaluation Impact on image Long run benefits Impact environment

Launch a counter movement Negative Low

Negative

Impact on financials

Drains resources

Preserves resources

Drains resources

Drains resources

Drains Drains resources resources to a to a small small extent extent

Evaluation of Options 1) Shift the data center out of Prineville to a location where alternate, eco friendly sources of energy can be utilized The above option will cost Facebook quite a lot of money but it will ensure that they are viewed as an organization that is responsible in terms of preserving the environment. It will convey a positive message to various environment protection agencies that operate in urban areas. These agencies have considerable power to influence individuals, who form a major part of Facebook users. This strategy will also help to serve the power requirements of the company in an eco friendly manner. 2) Ignore the campaign and continue with the current plan The above will result in Facebook being viewed as an entity that is not concerned about the environment. In addition, with power requirements increasing significantly in the future the company will find it difficult to sustain the current model. This alternative could, however, lead to savings for the company as they will operate as per the current plan. 3) Shift the data center to a new location but continue to use coal as a source for power Implementing the above, Facebook will incur a huge expense and still be viewed as an organization which does not give importance to environment conservation. Facebook will be unable to serve its long term power needs using coal. Announcement of termination of the Prineville project may, however, temporarily relieve Facebook of some of the pressure it is under from Greenpeace. 4) Accede to all of Greenpeaces demands and implement the solution they provide for the Prineville plant, as well as for the future The above would result in Facebook using renewable sources of energy to meet its power requirements. It would also be associated with a formidable organization like Greenpeace, resulting in the fact that people would perceive it as a socially responsible organization. However, the proposal to factor in a new energy source into their current plans could cost the company a great deal of money and may not even be feasible. 5) Attempt to reach a middle ground by complying with some of Greenpeaces demands The above option will save Facebook some money and may help them alter the seemingly negative perception of the company. However, the solution may not be sustainable and Greenpeace would most likely not compromise. Further, even if Facebook manages to reach an amicable solution with Greenpeace, matters that are still under concern with regard to environmental protection may come up again in the future. 8

6) Respond to Greenpeaces campaign by launching a movement against them Launching a campaign against Greenpeace could be detrimental to Facebooks image as it would be viewed as a company susceptible to pressure. A campaign of this sort would not lead to any long term benefits and could be an expensive proposition.

Recommendation It is recommended that Facebook shift the data center out of Prineville to a location where alternate, eco friendly sources of energy can be utilized.

Action Plan Facebook must bring to public knowledge the fact that plans to set up a center at Prineville have been scrapped. The reasons for doing this must also be made evident to gain recognition. Schnitt and Zuckerberg must meet with Naidoo and discuss the possible locations and technology they could utilize, as well as plans for power generation moving forward. This long term association with a powerful organization like Greenpeace can only be beneficial for Facebook. Facebooks collaboration with Greenpeace must be publicized.