Pepsi Social Media Contest Stumbles

Oops, it's happening again. Another corporate charity contest using online social media to raise money and recognition for nonprofits and social causes is being cited for appearing as if it's trying to unfairly influence the competition.

Last month,Chase Community Challenge made headlines for allegedly disqualifying three nonprofits - Students for Sensible Drug Policy, Marijuana Policy Project, and an anti-abortion group, Justice for All. According to The New York Times, the groups felt that Chase did not like their missions, despite their popularity among Facebook voters in the contest. Chase organizers did not comment on the allegations but did say contest rules allow contestants to be disqualified at the discretion of organizers. [Contest organizers also took a drubbing in the blogosphere for failing to provide a clear leader board in the competition. The lack of one prevented competing "do-good" groups from knowing how they were faring during the contest.]

Now it'sPepsi Refresh's turn to stumble. According to an article by reporter Stephanie Strom published today in The New York Times, Pepsi Refresh-- which plans to give $20 million to good causes this year -- "accidentally gave a charity currently on top of its rankings a little boost by allowing it to submit some materials after its own submission deadline," Strom wrote.

Materials submitted by the Joyful Heart Foundation,a charity founded byLaw & Order star Mariska Hargitay to help victims of sexual assault, were updated after the submission deadline -- which is against the contest rules. This, Strom wrote, "upset some of the contestants who wondered whether Pepsi was doing favors for a celebrity. 'I can't edit my own submission, so how did she do it?' said one who insisted on anonymity because he did not want to jeopardize his chances" of winning prize money.

Strom quoted Jill Beraud, chief marketing office for the American beverages unit at Pepsi, as saying it was an honest mistake. "We didn't follow our guidelines to the letter," Beraud told Strom. "The bottom line is that we've learned from this and we're moving on." Beraud told Strom that Pepsi, as a result, will give away three $250,000 prizes this month instead of two as originally planned.

Why is it so hard for the managers of these corporate charity contests to resist the urge to meddle? Got any theories? Let us hear from you.