A. Brief History of the Issue
Craigslist is a Web-based service that allows users to post and respond to classified ads at no cost. Founded in 1995, the site is now the world’s biggest classifieds service. Beginning in 2009, the company began to face public scrutiny for its erotic services section. Multiple state attorneys general claimed the site aided prostitution. In response, the company changed the name of the section to adult services, began charging people to use it, and adopted a screening process for postings in the section in May 2009. Pressure mounted again in the fall of 2010, this time led mostly by the non-profit sector, which accused the site of being a major vendor for child commercial sex trafficking and forced prostitution. Under public and legal pressure, the company shut down the section on Sept. 4, 2010. It placed a large, black-and-white banner over the adult services section that read “Censored.” The company did not explain the decision to its publics and refused to respond to related media inquires. Elected officials then summoned Craigslist representatives to provide testimony about their decision and the issue. Company representatives explained the decision was made in response to public opinion, but defended its right to carry the advertisements and criticized the move as one that would make it more difficult to find and prosecute traffickers, according to Politico. Others agreed, arguing sex traffickers will find another Internet route in lieu of Craigslist and the issue is at hand is a larger one involving Internet laws and freedom of information.
B. Identification of Key Stakeholders
Internal
• Employees
• CEO Jim Buckmaster
• Shareholders
• Founder Craig Alexander Newmark
External
• Web site users (people who were trafficked on the site, traffickers, women who willingly advertised adult services on the site, users of other Craigslist sections)
• Government (State Attorneys General, Law Enforcement)
• NGOs, especially those dedicated to combating the trafficking of children and women
• Media
• Competitors (online classifieds companies, such as eBay, Geebo.com, Backpage.com, and traditional classifieds venues in newspapers)
C. Political, Social, Economic, and Cultural Factors
Political
The Craigslist debate is highly politically charged. The role of the government in a new media landscape is at the center of the debate. Attorneys General acted as watchdogs early on in the scandal. The Obama administration is pursuing tighter Internet oversight and restrictions in the name of public safety.
Economic
At the heart of the Craigslist debate is a philosophical question over whether markets should be free or controlled. Craigslist was founded on the notion of a free community, which regulates itself and is not in need of governance; however, opponents of the section believed the site needed to be controlled to protect the public.
Cultural
Craigslist continues to operate their adult services section in other countries. Many of the girls being advertised were considered legal minors in the U.S. and therefore under U.S. law were legally unable to consent to sex. Age of consent laws vary from culture to culture, as well as the legality of prostitution and economic systems.
Social
The pressure Craigslist faces directly corresponds to the educated make-up of today’s public. According to Wilson and Ogden, “business entities face a … business-savvy public that demands corporate commitment of resources to solve the problems affecting community, employees, and families” (1995, 8). In addition, sex and gender issues also impact the Craigslist case. Women offered the majority of adult services on the site. Women are socially more vulnerable than men as they make less money and handle the brunt of caretaking responsibilities. Some argue the closure of the adult services section protects women from being sexually exploited. It’s projected that Craigslist would have netted $44 million this year alone from its adult services section, but the women advertised in the section likely never made such enormous profits. Others argue that women should have the power to make their own sexual decisions. One blogger wondered how the closure would affect women who “happily” advertised services via the site.
D. Potential solutions to the problem
Craigslist could have handled this crisis in three different ways.
First, it could have closed down the adult services section as soon as it started receiving complaints. It could then have issued a statement saying that even though it was not required by law for them to do so, the section was closed since it was in the best interest of the public. It could also assure its publics that it does not support child trafficking and prostitution and is fully committed to protecting the well-being of its users.
Alternatively, Craigslist could have kept the adult services section up but implemented regulations to make it safer. It could have then issued a statement condemning the unlawful practices and outline measures it took to end the exploitation of women and children on its site. It could also provide a forum (such as a blog) where concerns about the new measures could be addressed. Finally, Craigslist could have kept the adult services section up and firmly declared its dedication to protecting the freedom of expression of its users. It could present itself as an organization that is loyal to its users and unwilling to compromise that relationship at any cost. This best describes the tactic the company originally adopted. However, company representatives combined an extremely defensive stance with giving scarce if any information to the public about its decisions.
Today, Craigslist could redeem its image by being very open about the issue. It could release a detailed explanation about why it closed down the adult services section, emphasizing its dedication to the public interest. It could also create avenues for two-way communication with its publics. Lastly, it could adopt a more positive attitude toward the issue instead of being overly defensive.
Today, Craigslist could redeem its image by being very open about the issue. It could release a detailed explanation about why it closed down the adult services section, emphasizing its dedication to the public interest. It could also create avenues for two-way communication with its publics. Lastly, it could adopt a more positive attitude toward the issue instead of being overly defensive.
Questions
Question No. 1: A Craigslist competitor, Geebo.com, shut down its adult services section after the Craigslist controversy and explained the decision to its users as an ethically sound response. As this article explains, Geebo posted the words “shut down in the name of love” over the section and spoke with media about the decision. MySpace was also more proactive. After being accused of abetting child pornographers, it hired a company to track sex offenders and ban them from the site, according to this article. What are the advantages and/or disadvantages of these strategies?
Question No. 2: Craigslist has not closed its adult services sections outside the U.S., according to CNN. What may be motivating their decision to keep the sections in tact? What public relations ramifications might this decision carry?
Question No. 3: Federal law protects Internet providers from being prosecuted for the actions of their users. Therefore, Craigslist was not legally obligated to shut down its adult services section, but it did. Keep in mind the company has a long history of being tied to criminal activity, including the Craigslist killer scandal and the recent attempt to sell a baby on the site for $10,000. How do organizational ethics come into play in such situations?
Question No. 2: Craigslist has not closed its adult services sections outside the U.S., according to CNN. What may be motivating their decision to keep the sections in tact? What public relations ramifications might this decision carry?
ReplyDeleteThis is a very interesting case and question because it carries with it so many national and international issues. Censorship, sex trafficking, prostitution, and freedom of speech all meet in the context of one website.
I see two issues at play here. The first is the legality of prostitution and the advertisement of prostitution and related ‘adult services’ on the craigslist website. For me, shutting down the ‘adult services’ section in the US is a necessary move, as it appears from the articles linked to on the blog, that this section was being used significantly for prostitution and sex-trafficking. In Colorado, for example, prostitution is illegal so I would imagine that any site that carries advertisements for prostitution would be crossing certain legal boundaries. However, in countries where prostitution is legal, should craigslist still operate their ‘adult services’ section?
This brings up the second issue in the case, what is craigslist’ responsibility beyond US borders? Nike for example, has been accused of using child labor in the production of its soccer balls in Pakistan. If child labor is legal in a country like Pakistan, what is Nike’s responsibility to seek out and resolve the issue? This is definitely a case of crisis management 101.
Both of these issues present a potential PR nightmare. However, both can be resolved depending upon how willing the company is to acknowledge their misstep. I would imagine that any PR professional would not want their company to be connected in any way to illegal prostitution, human trafficking, or sex crimes so an open and honest approach is the best avenue. By keeping these sections intact in other countries, craigslist risks the future chance of being again linked with all of the negatives mentioned above. Not to say that there should be no place for ‘adult services’ advertisements, if people want to utilize those services, they should be free to do so. However, for craigslist, the risk seems to be too high. If prostitution is legal in other countries, then there will be other sites where such services can be found. Though shutting down the ‘adult services’ section may alienate certain publics, it seems to be the most reasonable method of issues management.
Question No. 1: A Craigslist competitor, Geebo.com, shut down its adult services section after the Craigslist controversy and explained the decision to its users as an ethically sound response. As this article explains, Geebo posted the words “shut down in the name of love” over the section and spoke with media about the decision. MySpace was also more proactive. After being accused of abetting child pornographers, it hired a company to track sex offenders and ban them from the site, according to this article. What are the advantages and/or disadvantages of these strategies?
ReplyDeleteAnswer:
All three examples are sort of under the same umbrella of crisis management strategies for addressing prostitution/sex offense online. Out of the three cases listed, I think Craigslist has been the least strategic, or least effective at managing the crisis. Part of crisis management entails promptly addressing the issue. Craigslist has only half-addressed it. They did shut it down, but they failed to address the "censored" sign other than a cryptic "public opinion" explanation. For effective crisis communication, they should have to offer a more informative answer. Without direct explanation, Craigslist has left the door open for the media and competitors/opponents to fill in the missing information - something you definitely want to avoid. Thorough crisis management would mean openly and honestly addressing, then explaining their decision. So far, all blame has been put on "public opinion" - not good crisis PR.
Geebo handled the same issue in a much more effective way. In fact, they were able to address the potential problem before it ever became a reality, according to their statements to the press. This means essentially that they were going the issue-management route, not the crisis-management one. The article reads: "Geebo.com, an online community bulletin board similar to Craigslist, has taken the proactive step of shutting down its personals section before it becomes a problem, says Geebo.com CEO Greg Collier....'Consistent with its longstanding focus on social responsibility, Geebo.com will permanently shut down its personals section effective immediately.'" Geebo 1) quickly addressed the issue before it became a problem by shutting down their dating section, 2) explained openly their decision to the media and public, and 3) emphasized their commitment to social responsibility - excellent issue management. Strategically, they also were able to imply that they care more about social responsibility than Craigslist, again because Craigslist failed to properly explain their decision and take focus back to positive efforts made by the company.
MySpace used the most advantageous crisis-management strategy. Not only did they address the issue openly to the public and media, they also took action by hiring professionals to track sex offenders. They not only say, but actively show their commitment to social responsibility. Both Craigslist and Geebo, had they elected not to shut down the adult services section, could have taken a cue from MySpace and hired professionals to investigate all postings on the adult services section. That is, they could have had tighter regulations for posting (age verification), and could have offered some kind of help line if a customer found his or herself in a dangerous situation. Acting this way says that the company is not only committed to social responsibility, but also maintaining freedom of expression/censorship online.
(PS Good job, Group 1!)
that's Kelly Burt, by the way ^
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteQuestion #3: How does Organizational Ethics come into play in such situations?
ReplyDeleteOrganizational ethics express the values of an organization to its internal and external publics. Craig's list's values are: unknown. I searched for the Craig's list ethics and values and only came up with the ways that people think that Crag's List (while not illegal) is not ethically sound.
Craig's List needs to take a stand on what their organizations' ethics and values are and then follow them. It would be beneficial for them to garner better public opinion by having a strategic communications plan that includes organizational ethics.
Craig's List took down the Adult section not because it was against their organizational ethics, but because of public opinion. This shows that the company doesn't have a firm stance on whether the section was ethical and if it was being used in a ethical manner. I would think that they would want their publics to know that they are against human trafficking etc, but by not making this statement they are left looking like an organization that isn't necessarily against it or doesn't want to take any responsibility, but doesn't want to lose business.
I'd like to know what their values are even if they really do support having a free for all with no restrictions on their site. I wonder if by not expressing their values, they are keeping the opportunities open to do whatever they want. Or is not having values a statement of values itself?
A comment on Kirsten's response:
ReplyDeleteKirsten, I completely agree that it needed to be taken down in the United States, at least temporarily until they can get some sort of regulations in place. I think you bringing up Nike and child labor laws is valid too on the international standpoint. I think that they have an obligation to at least address the issue that they have not taken the site down in other countries if not actually taking it down. If they are going to take a stance on the issue of combating sex trafficking enough to take down the adult services portion of their website in the United States, then I think they owe it to their viewers to take a stance on the issue (whatever it may be) in other countries. Like Nike, I think they have some responsibility, but because the site is run by users, they are only obligated to address the issue of international use of the adult services page.
Question 1:
ReplyDeleteBoth strategies employed by Geebo.com and MySpace seem to be far more effective in building a positive community image than the Craigslist approach. In the Oregon Live article, Geebo’s CEO is quoted saying that Geebo’s decision to remove the personal ads was made as a function of social responsibility. The company claims to have taken a socially responsible approach since their founding in 2000 and they assert that the reason they have not had problems with trafficking is because of their proactive approach and commitment to their community. Geebo’s approach is an excellent example of issue management because they are responding to a possible threat that there competitors are currently struggling to resolve. Though Geebo.com may face user criticism for wrongfully limiting access to these services, it is more likely that their attempt to keep their site clean from illegal activity will convince even more users to use the site because the company is a good community player.
Similarly, MySpace took issue and crisis management to an even more extreme level by hiring a company to help identify and remove child predators from their site. Though the “Need a Job” article says that MySpace reluctantly took this step, it is an action that benefits the entire community. MySpace’s commitment to social responsibility is even greater than Geebo.com’s because MySpace was not meant to be a site where services are exchanged like Craigslist or Geebo. Thus, it was prudent of MySpace to recognize the issue and not only try to rectify it, but to eliminate the problem in the future.
A response to Leanna:
ReplyDeleteLeanna, I think your question about Craigslist’s lack of values is a pertinent one. The fact that you weren’t able to find any kind of declaration of values says a great deal about their lack of organizational ethics. Especially when compared to similar sites like MySpace or Geebo, Craigslist is severely lacking in any kind of dedication or commitment to their publics. As you point out, the only reason Craigslist took down their Adult Services section was because of public outrage – a crisis management response. However, the fact that they replace the Adult Services title with the word “Censored” demonstrates that Craigslist did not remove the section because they are against sexual trafficking, but because they were wrongfully forced to do so. This seems like a poor way to express any kind of loyalty in the interest of site users. As such, I wonder if some Craigslist users will opt for sites like Geebo instead of Craigslist because of their lack of ethics.
A response to Emily's question 1:
ReplyDeleteI agree that the both Geebo and MySpace took much more effective actions in response to the issue at hand. I think any of these internet service site that are essential user run are difficult to police and must be even more difficult from a PR standpoint. Because the sites' content is often written by its users, the site has control of very little of the issues that arise and issues management is a complicated if not impossible process.
I think Emily made a good point as well that, though reluctantly, MySpace took further action to prevent the problems from occuring. This is an interesting aspect of internet companies as well. Where is line between a company's responsibility and users' responsibility? And is there a line at all? Should internet business ethics extend beyond those of traditional business ethics? I would be interested to see if MySpace or CraigsList has a code of operating ethics and how that addresses problems like these.
A response to Kelly Barth's comment:
ReplyDeleteOn a similar not to my comment on Emily's response, Kelly's comment brought to mind the extent and role of ethics in all of this. It seems that by taking down their US "adult" section and leaving up their international "adult" services sections, CraigsList is sending a very confusing message. I wonder how the company is structured and how much involvement their PR staff have. From a public relations standpoint, keeping their international sections up would seem like a bad move. It divides the company on a national level.
On the other hand, with a user-written website, how much is PR really considered when making decisions? And how important is it? Are CraigsList users concerned with the international image or reputation of the company? How different would a code of ethics for Facebook be from CraigsList?
Q. Craigslist has not closed its adult services sections outside the U.S., according to CNN. What may be motivating their decision to keep the sections in tact?
ReplyDeleteWhy should Craigslist close its adult services sections outside the U.S.? If they aren’t getting heat from other country’s governments then why close down a section that is so profitable. Prostitution isn’t illegal everywhere. The motivation behind their decision to keep the foreign sections intact? Money. The case study stated, “Craigslist would have netted $44 million this year alone from its adult services section.” WOW!
Craigslist is a website that people run to because of how effortless it is to use. When I first moved up here my roommate and I would devote days to getting free stuff off CL. We even got a sofa worth over $1000 because a guy said it reminded him of his ex-wife. What a deal! Speaking of free, there is still a “casual encounters” section on CL. Yes, prostitution is illegal in the U.S therefore I can understand why the section for paying for sexual services was removed, but CL users can still get all the free sex they want through the “casual encounters” section.
Okay..so after re-reading my post it appears that I may have come off a little heartless towards the trafficking issue that many opponents of CL's "Erotic Services" section use as support for their stance.
ReplyDeleteThe POLITICO article used in this case study stated, “A lot of advocacy groups think that taking down adult services was the wrong thing to do. It’s much more difficult to find the victims now dispersed on these other sites that are noncooperative. Craigslist made this decision to do it here but that does not mean it’s the company position that this is the right move.” CL’s popularity was actually helping the fight against trafficking.
Question No. 2: Craigslist has not closed its adult services sections outside the U.S., according to CNN. What may be motivating their decision to keep the sections in tact? What public relations ramifications might this decision carry?
ReplyDeleteThis entire issue is a very touchy and controversial issue. Anything that could potentially physically hurt other people should be put at the top of a company’s list of issues to deal with PROPERLY and IN A TIMELY MANNER. It seems that Craigslist decided to remove their adult services section within the US solely based on public pressure and not necessarily because they were convicted of its possible ramifications. Their reasoning for not taking the adult services section down in other countries is because of the exact reason they took down the US section, public pressure but in other countries Craigslist is not feeling the heat like they did in the US.
Craiglist’s lack of social responsibility regarding this matter could potentially be detrimental to their reputation and their ability to do business in the future. If an organization is so blatantly unresponsive to such an issue as sex trafficking and forced prostitution, why would consumers want to support them? It would be much smarter for Craigslist to have immediately taken down the adult services section of their website in all countries and followed up with a press release and responses to the public about how they were personally convicted and saddened that their website could be contributing to such horrendous things. Instead they took down only the US’s section and went silent.
If Craigslist wants to save their reputation and potentially their business, they now need to cover the ground they already lost by apologizing and dealing with the public head on. They also need to illustrate social responsibility and take down that section of the site in other countries. The sooner, the better.
Kelly Burt's response to Katie Roberts-Kremer's answer:
ReplyDeleteCraigslist definitely needs a PR 101 lesson and I like your point that an organization unresponsive to issues as serious as sex-trafficking is bound to lose public support. Also on the topic of public support, Craigslist, whether they meant to or not, in their pseudo-response to the issue seems to be telling the public it's THEIR fault (the public's fault) that the section was closed down. I've never used Craigslist personally, but if I did use the "adult services" section, I would be pretty irate at Craigslist for blaming me and then not explaining why. I can't see any strategy in this at all other than a bad attempt to avoid trouble with the U.S. government.
In reply to question 3. Federal law protects Internet providers from being prosecuted for the actions of their users. Therefore, Craigslist was not legally obligated to shut down its adult services section, but it did. Keep in mind the company has a long history of being tied to criminal activity, including the Craigslist killer scandal and the recent attempt to sell a baby on the site for $10,000. How do organizational ethics come into play in such situations?
ReplyDeleteEven though something may not be against the law, it does not make it morally just. Craigslit may not be liable for the murder scandals, the sale of children or adult postings, but it does have a responsibilty to its consumers and the community in which they live. Craigslist should be taking a proactive approach in preventing these issues before they occur, not simply responding, or even ignoring them.
In respsonse to Leanna.
ReplyDeleteI find it very interesting that Craiglist doesn't have some sort of a code of ethics. It's hard to imagine an organization or company without one today. This just demonstrates how weak Craigs List awareness of the value of its stake holders, audience, publics, and community at large.
Question #3, Jen Cupp's answer:
ReplyDeleteI think it goes back to the Core Purpose of Craigslist. I wasn't able to find a clear mission statement or core purpose statement for Craigslist, but it seems that it isn't a for-profit business. It makes some money from advertising but besides that it is a free service.
I think that because of this nature, it has little to lose with revoking the adult services section. It isn't making money off of it, per say. Advertisers may have had qualms about advertising on Craigslist when it had the adult services section too, especially ads for consumer/family-oriented products.
Perhaps Craigslist should use this incident to create a formal code of ethics as Heather mentioned and create some sort of standard procedure for dealing with postings of aquestionable ethical nature.
Overall though, I think Craigslist, by design, is a hotbed for crime. There are plenty of scams on it, including responses to listings (I'm sure most of us have experienced this if we've used it!). The onus is on the consumer/user of Craigslist to navigate the site and avoid scams.
I don't know if there is much Craigslist can do to combat this. Classified ads are easy for scammers and other criminals to exploit. The freedom of the Internet makes it perhaps easier to do so, and more difficult to actually catch and prosecute people. Perhaps Craigslist could expand its "How to avoid scams" section and other similar types of help sections.
Since it is an Internet and interactive site, Craigslist does provide a self/community-policing function for people to report scams and other posts that are inappropriate. I think this function is one of the best ways to patrol the vast expanse of the Web. Since content is user-generated, why shouldn't it be user-policed as well?
In response to Heather's response to #3:
ReplyDelete"Craigslist should be taking a proactive approach in preventing these issues before they occur, not simply responding, or even ignoring them."
I'm still undecided about whether the onus should be on Craigslist, the government (regulatory agencies) or users for content on Craigslist.
I can understand that it would be difficult for Craigslist or the government to regulate what's on the site because there are so many postings every day. Yet when criminal content or scams are proliferated on Craigslist, this doesn't seem fair to the general public who use it for legitimate things.
In the end, I think it hurts Craigslist the most when scams and criminal activity are cultivated on the site. It turns away more normal users who just want to find a job, advertise a garage sale, or sell/buy furniture. Therefore, perhaps Craigslist should be the one in charge of policing the site, since it is in its own interest to do so.
**On a side note, I think another emerging PR issue for Craigslist is bed bugs! I am scared to buy furniture (such as couches, etc.) on it because of the spread of bed bugs recently (or just the heightened media coverage which makes me feel like they are EVERYWHERE). I wonder what Craigslist is doing, if anything, to combat this perception. It seems they have taken a very passive role in public relations, so I think they haven't done much.
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ReplyDelete