Musk's Meeting with Twitter Employees
A summary of Elon Musk’s meeting with Twitter staff gives us a window into a typical “all-hands meeting.” Employees who ask questions demonstrate courage—and humility.
Of course, in this case, employees are most concerned about their jobs if/when Musk’s acquisition of the company is final. A Wall Street Journal article describes his stance:
Regarding layoffs, Mr. Musk said anyone who is a significant contributor shouldn’t have anything to worry about, according to people who viewed the meeting. “Right now, costs exceed revenue,” he said, according to the people. “That’s not a great situation.”
Likewise, this isn’t a great response for worried staff. How do they know whether they are “a significant contributor”? Doesn’t everyone believe that they are? As one person tweeted, “still not sure if I need to start packing my bags.” The company might lose good people in the meantime—people who don’t want to stick around to see what happens.
As expected, Musk was asked how he views freedom of speech. Musk distinguished between freedom of speech and “freedom of reach,” giving the example of “walk[ing] into the middle of Times Square and deny[ing] the Holocaust" but not allowing that to be promoted. "So I think people should be allowed to say pretty outrageous things that are within the bounds of the law, but then that doesn’t get amplified. It doesn’t get, you know, a ton of reach."
A lot of uncertainty remains for Twitter employees. It’s difficult to know how sincere the meeting was. As this employee cartoon suggests, employees expected that the meeting, although billed as confidential, would be leaked. Still, the format was probably useful for employees to hear directly from Musk, which is the point of these meetings, whether in person or virtual.
Comms About Disney Leadership Changes
When companies announce leadership changes, they typically include quotes from outgoing executives, but a Disney press release mentions the head of TV only in passing. The focus of the release is on Dana Walden’s promotion to Chairman of Disney General Entertainment Content. The 817-word statement mentions Tim Rice near the end of the first paragraph:
She will have oversight of ABC Entertainment, ABC News, Disney Branded Television, Disney Television Studios, Freeform, FX, Hulu Originals, National Geographic Content, and Onyx Collective. Walden previously served as Chairman, Entertainment, Walt Disney Television and succeeds Peter Rice, who is leaving the Company. Her appointment is effective immediately, and she will report directly to Chapek.
News reports explains that Rice was fired for differences over creative decisions, compensation, etc. The company statement could have acknowledged a bit more and demonstrated integrity and accountability for the decision; otherwise, the press carries the message.
In Walden’s email to employees, she mentions Rice in the 14th of 16 paragraphs:
In reflecting on my own professional journey, I am very fortunate to have worked alongside Peter Rice for a long time. We have been friends for almost three decades and he was my boss for eight years. He is a gifted executive, and I learned a lot from him. I know you all join me in wishing him the best in whatever he chooses to do next.
Of course, this is the right thing to do—and important for employees who may have loyalties to Rice. I respect that she didn’t sugarcoat his departure (and at least Disney isn’t claiming the weasley “mutual agreement” reason for leaving).
As always, leaders communicate by what they say and what they omit. This situation also illustrates a question for business communication students: is this bad news, good news, or a persuasive message? I would argue that it’s all three, depending on your perspective.
FDA Communications About Baby Formula
In the midst of the baby formula shortage, the U.S. Food and Drug Administration has compiled resources for companies and parents.
A website provides “information about additional products headed to the U.S.” I find the language rather jargony and apparently targeted to companies seeking “enforcement discretion,” a technical term. The audience doesn’t seem to be parents.
A statement about the organization’s work sounds defensive and, again, not audience focused:
“We have made tremendous progress, including notable steps in just the past week, which will allow us to immediately begin bringing specialty and infant formula products into the U.S. as quickly as possible,” said FDA Commissioner Robert M. Califf, M.D. “We continue to work closely with our U.S. government partners and domestic and international manufacturers to identify additional formula product that will be available to parents and caregivers in the weeks and months ahead. It is our goal to ensure that hospitals, specialty pharmacies, and retail store shelves will begin seeing adequate supplies again in the coming weeks.”
The following paragraph is a good one for business students to revise. If this were intended for worried parents, how could the segment be more reassuring? What is most important to parents? (Hint: When will products be available?)
On Tuesday, the FDA announced that it informed Kendal Nutricare that the agency is exercising enforcement discretion for the importation of certain infant formula under the Kendamil brand. Under the agency’s recent increased flexibilities regarding importation of certain infant formula products, the company initially estimates that about 2 million cans of infant formula (over 50 million full-size, 8-ounce bottles) are expected to land on U.S. store shelves beginning in June. Kendal Nutricare also currently has over 40,000 cans in stock for immediate dispatch. The FDA also announced that it is not objecting to the release of about 300,000 cans of EleCare amino acid-based infant formula previously produced at Abbott Nutrition’s Sturgis, Michigan, facility to individuals needing urgent, life-sustaining supplies of this specialty formula on a case-by-case basis. These products will undergo enhanced microbiological testing before release.
Twitter's New Privacy Notice
Like most people, I ignore privacy notices, those jumbles of legalese in small print with too few headings. But Twitter’s latest is well designed and written in an authentic voice with conversational language. I can’t say whether previous notices were similar, but this one covers what users might care about and walks the reader through each part.
The notice starts with an engaging introduction that speaks to the reader: “Before you scroll, read this.” Six main points are up front, and each section leads with a user’s question, for example, “Seriously — what happens with my data?”
I wish more companies would write privacy notices this way. But then, people might actually read them.
Starbucks CEO Letter to Partners
After his first month back as CEO, Howard Schultz posted a letter to employees, promising changes. As Starbucks faces labor shortages and more unionized stores, Schultz is doing his best to quell further unrest—and to return to the HR practices, such as benefits for part-time employees back in 1988, that gave the company the reputation as a good employer.
I wonder how this letter “lands” with employees. Is it specific enough? Does it address their bottom-line needs, like enough pay to buy gas and keep up with rent? For example, what does a $1 billion investment mean for the average worker? Also, although not explicit here, reports say that pay increases will apply only to nonunion stores, which has raised legal questions.
These questions also raise issues of leadership character. Is Schultz demonstrating integrity, particularly transparency, in his letter? Otherwise, this is a typical positive-news letter. He demonstrates compassion and empathy and conveys hope. A feel-good video shows Schultz with partners and their ideas for the future.
Dear Partners:
Over the past month, I’ve traveled the country and met with thousands of you from our retail stores and all five roasting plants as we embark on co-creating the future of Starbucks.
The conversations we had were both humbling and inspiring. I heard about the challenges and frustrations you have faced. I heard how hard it has been during the pandemic, and the strain caused by accelerating demand and customer behaviors that have changed. I heard how your experience doesn’t always feel like the Starbucks you used to know or thought it would be.
You also voiced a great deal of hope: hope that meaningful change is possible; hope that Starbucks will restore our leadership in offering new and innovative investments that truly make a difference in your lives; and hope that we will reintroduce joy and connection back into the partner experience and make you proud.
The most important thing we must do in this moment is affirm unequivocally that to be a partner means:
You have the pay, benefits, and stability you need, so you can focus on your aspirations
You have everything you need to have the best shift, every shift
You are recognized and celebrated for who you are
You are part of co-creating the future of Starbucks. You have a voice, you feel heard, you can make a difference
As a direct result of your feedback, we are now making additional investments to lift up Starbucks partners and the store experience, contributing to the $1 billion in investments we are committing to the partner and store experience this year alone. Some of the new and more immediate changes you can expect are:
Doubling training hours in our stores
Pay increases that will apply to all U.S. store partners while recognizing and rewarding tenure
Reintroduction of the Black Aprons, Coffee Master program and Leadership in Origin trips to our coffee farm at Hacienda Alsacia
New collaboration tools and programs, including a new partner app for easier access to communication, information and resources
That’s just the start. We are also prioritizing and accelerating investments in equipment and technology, enhancements to digital tipping, a financial stability toolkit benefit, and recognition and career development, all with your input. Our history shows that working together is always the best way to transform and elevate the experience we deliver to you, to our customers and to the communities we serve.
As I shared with you last month, love and responsibility are what brought me back to Starbucks: my love of the company and my deep responsibility to our partners and shareholders. Hearing from so many of you since my return has only deepened my commitment and affirmed the need to take bold action to restore your trust and belief in Starbucks. I could not be more optimistic or confident in our next chapter that is now underway.
Onward with gratitude,
Howard
Airlines' Statements About Mask Changes
After a U.S. federal judge struck down the mask mandate on airlines, and companies are posting their new requirements.
As neutral/positive messages, the statements are similar. Each starts with context by referring to the federal order, and then the change is described, particularly giving customers the option to wear masks. Southwest takes the opportunity to reinforce its air filtration system, while American Airlines reminds people that local mask ordinances in other countries still apply.
A New York Times article lists more airlines’ statements, and they interesting to compare. What each chooses to emphasize tells us a bit about their sales approach and customer service.
Schultz Is Explicit About Share Price
As he returns as CEO to the company he founded, Howard Schultz is clear about short-term trade-offs in order to invest more in Starbucks employees. Hired back partly to manage growing union activity, Schultz told employees, “I am not in business, as a shareholder of Starbucks, to make every single decision based on the stock price for the quarter,” and “Those days, ladies and gentlemen, are over.”
To manage expectations, Schultz also said, “For all of you following the stock price today and that the stock is going down, that’s a short-term thing.” He knows that messages to employees will be made public.
His communication is direct and sounds harsh, but it’s rather expected. Primary issues facing the company are about staffing—the tight labor market, rising wages, and union activity. He demonstrates integrity by being transparent. In this case, reinforcing what people already know.
Confusing Airbnb Message
Informational messages should be straightforward, but Airbnb sent one that confused hosts and former hosts. I received this email about taxes with the subject, “Action required: Provide missing taxpayer info.” The tone is threatening, and I wasn’t sure whether this applied to my recent international booking or a remnant from my hosting days, although I stopped in 2018.
Apparently, I wasn’t alone. Within two days, I received the second message, “Clarification regarding taxpayer information request.”
My guess is that the message inadvertently went to people who are no longer hosting. The second message could have admitted the mistake but didn’t. Instead of demonstrating accountability and humility, the author wrote, “We wanted to clarify that this action is not required for everyone.”
Starbucks Announces CEO Transition
After 13 years at Starbucks, including five as CEO and president, Kevin Johnson will retire. Company founder Howard Schultz will serve as interim executive as the search for a replacement begins.
The company statement includes the typical quotes: the board chair complimenting Johnson’s accomplishments, Johnson expressing pride and gratitude, and Schultz providing a vision. Of course, the company doesn’t explicitly address two of the biggest challenges Schultz will face, which a Wall Street Journal article calls out in the headline, “Former Starbucks CEO Howard Schultz to Return as Chain Faces Union Push, Rising Costs.”
Shares declined 24% in the past year, and it’s been a rough time for the company, as for all restaurants trying to regain their footing after the pandemic amidst rising prices, staffing shortages, and wage increases. In the statement, Johnson says that he notified the board a year ago of his plan to leave, and the WSJ article confirms the story with a quote from the board chair, “His decision to leave was his own, not the result of any board or outside push, she said.”
We’ll never know the truth, and expecting full transparency in these situations isn’t realistic. Perhaps it’s a mix, anyway. The board may want a leadership change to address difficult issues, including improving relations with employees and unions, and Johnson felt internal and external pressure to leave.
Announcements About Leader Departures
Company announcements about leader departures typically follow a standard format, but content and medium choices communicate history and context. Two recent examples illustrate these types of messages:
Meta, Facebook’s parent, announced that Peter Thiel, a long-time investor, will step down from the board. The company chose a press release for the news, also posted on the Meta website. As expected, the press release includes positive quotes from CEO Mark Zuckerberg and from Thiel. What’s not said is found in a Wall Street Journal article: Thiel is a supporter of former President Trump and two Senate candidates who have spread false claims about election fraud. Thiel has also resisted changes to Facebook to quell misinformation on the platform.
Peloton announced that John Foley, the company founder, will step down. Like Meta, the company chose a press release and posted it on the Peloton website. Although the statement names Foley as executive chair and includes a quote from him, we don’t see the typical complimentary quote about his leadership. A New York Times article titled, “Peloton’s Future Is Uncertain After a Swift Fall from Pandemic Stardom,” cites several problems at the company: “The chief executive stepped down as a glut of unsold machines, negative TV portrayals, activist investors, and a recall plagued the fitness company.” A personal message, below, from Foley to Peloton customers explains more of his perspective.
These messages are a type of bad news—and they are examples of persuasive communication. Foley’s email tries to convince “members” that the company will continue to thrive and that Barry McCarthy, as the new CEO and president, is the answer. Foley uses logical arguments, such as the number of current users, and credibility, such as McCarthy’s past success, to persuade. He also uses emotional appeals, complimenting customers and their stories. He reassures customers by describing what won’t change—a persuasive strategy Adam Grant talks about in his book Think Again.
Whether Foley remains with the company—and what the future of the company holds—is questionable. In his email, he demonstrates some humility by introducing McCarthy but little accountability for what has happened to a company that was only recently a major success story.
Fellow Members,
There’s been quite a bit of news about Peloton in recent weeks, and through it all, you have stood with us. Thank you for all your support and encouragement! This year marks Peloton’s 10 year anniversary. My co-founders and I brought to life the concept of recreating the energy and benefits of a studio fitness class in the home to make getting healthy and staying healthy more achievable for more people. And together with you, we have built this incredible community from five people to 6.6 Million people, of all stages, ages, and backgrounds, leading healthier, happier lives. I remain inspired by you and your stories. Our north star has always been and will always be improving the lives of our Members. Your experience is what matters most and this is why we are making some changes to position Peloton for continued success the next 10 years and beyond.
Effective today, I will be moving into a new role as Executive Chair, and Barry McCarthy will be joining Peloton as CEO & President to lead the company. Barry is an incredible leader with a proven track record of working with founders to scale world-class businesses like Spotify and Netflix. In addition to the senior executive roles he has held at some of the world’s most successful media and entertainment brands, Barry has served as an advisor and board member at public and private technology companies. This appointment is the culmination of a months-long succession plan that I’ve been working on with our Board of Directors, and we are thrilled to have found in Barry the perfect leader for the next chapter of Peloton.
I care deeply about Peloton – our community, our team, and our ability to continue to motivate and inspire you through our world-class instructors and deep library of classes across fitness disciplines. And, because operating with a Members-first approach is one of our core values, I want to assure you that the changes that we’re making at the company across our operations will not impact our instructor roster, number of classes produced, or range of class modalities.
I still believe as strongly in this brand and in connected fitness as I did on Day One. But in order for us to continue to deliver the best possible member experience and lead us into the future, I need to hand the day-to-day reins of running the business to a seasoned and gifted executive who has helped transform and grow some of the world’s best streaming media companies – first in video, then in music, now in connected fitness.
I’m so excited to partner with Barry and for you to see what he brings to this brand and community. Please join me in welcoming him to the Peloton team. And I hope to see you on the leaderboard soon!
John Foley
Activision Acquisition Announcements Omit Information
Microsoft’s acquisition of Activision significantly boosts the company’s prospects in the gaming space. In a statement, Microsoft said, “This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse.” Games under assets now include millions of players of “Warcraft,” “Candy Crush,” “Call of Duty,” and others.
As expected, Microsoft’s announcement doesn’t include bad news about Activision—reported just the day before the acquisition. Rampant sexual harassment allegations resulted in more than three dozen terminated and another 40 disciplined employees. The day after the acquisition, the Wall Street Journal reported, “Activision Blizzard’s Workplace Problems Spurred $75 Billion Microsoft Deal.” Similarly, Activision CEO Bobby Kotick’s email to employees fails to mention that the company may have been in trouble before the agreement.
As usual, what is not said is often as important as what is said. Both messages announce good news and omit the bad news. This story illustrates that positive business messages are also persuasive messages.
Ask for Help in Rich Media Channels for Better Results
New research confirms what you might already think: you are most likely to get the results you want when you ask someone in person.
Experiments indicate that people are more compliant when communication takes place over richer media channels. Requests made face-to-face are most likely to be fulfilled. Second best is Zoom and then phone calls. Email and text requests are least effective. Survey participants thought richer channels would be more effective, but they underestimated the differences.
Cornell University researcher Vanessa Bohns sums up the results:
“We tend to think people will weigh the costs and benefits and make a measured decision about whether to agree to something, saying ‘yes’ only if they really want to. But in fact, people agree to all sorts of things, even things they’d rather not do, because they feel bad saying ‘no’ in the moment.”
Of course, this raises issues of integrity. Taking advantage of people who feel uncomfortable refusing a request will damage trust and credibility over time.
Mailchimp Acquisition News
Mailchimp’s acquisition announcement is an example of a positive message. In an email and statement on the website, Co-founder and CEO Ben Chestnut reveals the news in the third paragraph. The single sentence is in bold type, but it takes a while for the reader to get the message.
Chestnut provides reasons for the acquisition in this paragraph:
Together with Intuit, we’ll deliver an innovative small business growth engine powered by marketing automation, customer relationship management, accounting and compliance, payments and expense, and e-commerce solutions, creating a single source of truth for your business. We’ll also be able to offer more personalized support and onboarding, expand our international footprint, and scale our teams to innovate faster and deliver the solutions you want and need.
Both sentences, long and jargony, use “we” as the subject. I wish he had explained the decision in more natural, conversational language written from the reader’s—”you”—perspective. Why should I care? How will the change help me manage my business, etc.?
Students could rewrite the entire message and do a better job. The message is positive—and it could be persuasive. Otherwise, it could be interpreted as bad news, not good.
Grubhub's Goodwill Message
Grubhub is demonstrating gratitude with an ad directed primarily toward restaurants. The company benefitted greatly during a tough year for restaurants. During COVID restrictions, food delivery services did well, raising prices and cutting into restaurants’ margins. Grubhub and others have been criticized for hefty commissions and for listing restaurants on their sites when they weren’t affiliated with the service.
Now that restrictions are lifting, analysts predict that delivery services will continue to thrive. Still, an AdAge author notes that Grubhub needs to “remain relevant as in-person dining comes back.”
In the commercial, Grubhub speaks to restaurant workers:
“Here’s to you, restaurant. Thank you, from the bottom of our stomach. . . . Without you, we wouldn’t be Grubhub. We’d just be ‘hub.’”
Will the commercial ring false? Will it feel to restaurant owners and staff that Grubhub is manipulative or insincere? I don’t know. Obviously, the secondary audience is diners.
Senders of true goodwill messages, for example, messages of appreciation, don’t expect anything in return. Thank-you messages may bring about favor, but they are not intended for future reciprocation.
Amazon Announces New CEO
In a news release, Amazon announced that CEO and Founder Jeff Bezos will be stepping down, transitioning to role of Executive Chair of the board. He will be succeeded by Andy Jassy, currently CEO of Amazon Web Services. The change won’t take place until the third quarter of 2021.
The news is announced in two short paragraphs within the company’s fourth quarter results:
Amazon is also announcing today that Jeff Bezos will transition to the role of Executive Chair in the third quarter of 2021 and Andy Jassy will become Chief Executive Officer at that time.
“Amazon is what it is because of invention. We do crazy things together and then make them normal. We pioneered customer reviews, 1-Click, personalized recommendations, Prime’s insanely-fast shipping, Just Walk Out shopping, the Climate Pledge, Kindle, Alexa, marketplace, infrastructure cloud computing, Career Choice, and much more,” said Jeff Bezos, Amazon founder and CEO. “If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive. When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention. Right now I see Amazon at its most inventive ever, making it an optimal time for this transition.”
In a longer message to employees, Bezos writes in the same conversational style, but he is more inspirational. The email is also posted on the Amazon public site.
The change is big news and garnered the lead Wall Street Journal story today with the headline, “Amazon CEO Change to Come Amid Regulatory Scrutiny.” The article cites Amazon’s 44% profit increase in the fourth quarter of 2000 as well as the challenges ahead:
“But Amazon also faces the biggest regulatory challenges in its history, with multiple federal investigations into its competitive practices and lawmakers drafting legislation that could force Amazon to restructure its business. Tension with regulators and lawmakers has directly embroiled Mr. Bezos, who was called to testify in front of Congress last summer for the first time.”
Bezos also was in the news recently because his ex-wife, MacKenzie Scott, donated $5.9 billion in the past year. A New York Times article contrasts her philanthropy with criticism about Bezos’s extraordinary wealth and lack of attention to environmental issues and employees’ concerns. A Vanity Fair author writes, “She got even [for his having a public affair] by doing what he does not: sharing his unbelievable, unconscionable, indescribable wealth with those he makes his money off of, i.e. everyone else in the world.”
Disneyland Announces "Sunsetting" of Annual Pass Program
With economic uncertainty during the COVID-19 pandemic, Disneyland remains closed, and the company announced the end of its annual pass program. The 40-year-old program offered unlimited park visits, exclusive discounts, and other benefits.
Disney’s statement explains the reasons and offers customers ways to get a refund for existing passes. In the segment below and another for Premier Passholders, the writers use “sunsetting” three times. The euphemism is a curious choice, and I wonder why “ending” isn’t used instead. Perhaps “cancelling” sounds too harsh?
“Sunsetting” indicates phasing out, and some passholders can enjoy discounts for a limited time. But the program is clearly ending. Dictionary.com refers to a “sunset clause,” and a tech site provides this definition: “Sunsetting, in a business context, is intentionally phasing something out or terminating it.” Both have legal undertones and, in my view, should be avoided for a consumer audience.
Wishing Someone Well
News outlets are reporting that President Trump wishes Ghislaine Maxwell “well.” An associate of Jeffrey Epstein, Maxwell is charged with child sex-trafficking and has pleaded not guilty.
President Trump knew Epstein and Maxwell and met them “numerous times over the years.” according to his interview with Axios. When an Axios interviewer questioned the president’s previous statement that he wishes her well, he explained what he meant:
"Her boyfriend died in jail, and people are still trying to figure out how did it happen. Was it suicide, was he killed? And I do wish her well.”
“I'm not looking for anything bad for her. I'm not looking bad [sic] for anybody.”
“I do. I wish her well.”
“I wish her well. I'd wish you well. I'd wish a lot of people well.”
Discussion:
What does it mean to “wish” someone “well”?
What's your view of President Trump’s comments? Appropriately empathic towards Maxwell, compassionate, insensitive towards victims of sexual abuse, polite, or something else?
The president defended his initial comments. Should he have done so or changed his approach? Why?
Aston Martin's New CEO Message
British sports car manufacturer Aston Martin is replacing its CEO with Tobias Moers, currently at Daimler. The current CEO, Andy Palmer, tried to improve sales but hasn’t been successful. A Wall Street Journal article refers to the move as a way “to resuscitate a storied brand that has been on life support.”
The company’s media statement includes the usual quotes from the board chair and the outgoing and incoming CEOs:
Tobias Moers said: “I am truly excited to be joining Aston Martin Lagonda at this point of its development. I have always had a passion for performance cars and relish the chance to work for this iconic brand which I was close to on the technical side at the beginning of the partnership between the two companies. Following the arrival of Lawrence, as Executive Chairman, the significant investment from his Yew Tree Consortium, the completion of the equity raise and the reset, I believe that there is a significant opportunity to harness the strengths of the business to successfully deliver the planned product expansion and brand elevation. I am looking forward to working with Lawrence and the whole Aston Martin team to build a stronger business for our customers, our employees, our partners and our shareholders.”
Andy Palmer said: “It has been a privilege to serve Aston Martin Lagonda for almost six years. The launch of many new products including the new DBX demonstrates the dedication and capability of our employees. I would like to thank my management team and all the staff for their hard work and support, particularly during the challenges presented by COVID-19. I am proud of you all and it’s been an honour to work with you.”
Discussion:
In what ways is the Aston Martin CEO announcement typical? How does it differ from similar CEO change announcements?
Read the statement for writing style. What observations do you make? Do you notice any differences between this statement, for a British company, and those for other companies?
Motion Charts
A New York Times article, “What Does Opportunity Look Like Where You Live?,” includes motion charts depicting life expectancy, commute times, and other variables across the U.S.
Although imperfect, the charts show changes over time. The movement is an effective way to dramatize differences between groups, as Gapminder has done with UN data for years.
Discussion:
The bubbles move when they are first loaded on the page, but I can’t seem to “interact” with them the way I expect to with an “interactive graphic.” What did you expect? Could these be improved?
Some charts have a truncated axis; for example, one about life expectancy starts at 60. What are the implications, and should this be avoided?
What, if anything, surprises you about the data presented?
Companies That Returned Federal Funding
Controversy swirls as companies grapple with whether to keep or return federal funding for the COVID-19 crisis. Distributions from the Paycheck Protection Program (PPP) seem unfair as some small businesses—the intended recipients—can’t get forgivable loans, while some larger businesses received millions of dollars that, at least in some cases, isn’t needed as emergency funding.
As the first and most highly publicized company, Shake Shack returned $10 million. Forbes tallies several others, including Ruth’s Hospitality Group, Sweetgreen, and the Los Angeles Lakers.
Store image source. Food image source.
Discussion:
What’s your view of companies that returned money compared to those that didn’t?
How should a company decide whether to return the funding?
Shake Shack doesn’t include a press release on its website or a tweet about the decision. What’s your view of this approach? Should the company promote the decision more boldly? Why or why not?