Guest Post: AIG Did What? Three Takeaways from AIG’s Wild Month

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AIG is in the news again.

Before you check your wallet and stress about another financial disaster, the news has little to do with insurance or financial services. Rather, it involves a sequence of events that might change the way you and your clients think. Here are three takeaways from AIG’s wild week.

Social responsibility has legs.

For background, AIG recently launched an image enhancement campaign revolving around and ad entitled “Thank You America.”

A leaner company that repaid every cent of a $185 billion government bailout, earned the government $22 billion and now aids in disaster recovery efforts with a leaner more customer services approach…we all win right? There’s nothing about rates, quality of service, level of talent and insert random point here. The entire concept plays off concepts my two-year old gets. Be nice, and say thank you when someone bails you out. Only my daughter got bailed out of cleaning spilled ice cream on the couch.

Money is tight. People want to spend their money knowing it’s going to a good place. Documenting that used to be a side dish. It’s turning into a main course. How are you showcasing your social responsibility?

Those legs need to know what the rest of the corporate body is doing

Talk about a Keyser Soze twist. So as AIG was trying to play nice with consumers, its old CEO sued the federal government, claiming the bailout terms weren’t favorable to the insurer. To say the internet got fussy would be an understatement.

Some would argue this is bad timing. Some would argue the PR campaign was just a tactic to minimize furor over the lawsuit. It doesn’t matter. The argument happened, and that costs AIG part of what it gained from the campaign launch.

Every company has silos, to the point they are the new “get out the box.” But that disconnect cost the company, and it didn’t have to happen. How are you trying to break down those walls?

Those legs have longer reach.

Here’s where things get interesting. Public sentiment grew to the point where AIG backed away from the suit. Internet crisis relaxed; world finds somewhere else to overreact.

It’s not so simple. Those in the financial world were as floored with AIG’s decision to back away as Joe and Jane Citizen were by AIG’s consideration to join the suit. The Wall Street Journal (this link has a paywall) outlines why and what the long-term consequences could be, though the Cliff Notes version is “A lot.”

Corporations make decisions all the time to sacrifice for a greater good. But to the tune of a potential tectonic economic shift? For CSR-based public sentiment to beat lawyers and policy analysts in this octagon is a buried lead. It also documents the power of a motivated public. How are you going to capture this groundswell?

AIG will eventually leave the news cycle, replaced by some other financial problem or pop culture outrage. Its legacy from this case will have a far longer impact. How will it empower you in 2013?

Dan Farkas is an Instructor of Strategic Communication at Ohio University. When he’s not trying to corral his 2-year old and 1-month old, you can connect with him @danfarkas on Twitter.