How Should Companies Handle the Annual Holiday Party?

Companies have finally tackled the "Christmas" controversy to call their annual gatherings "Holiday" parties, and now they have a new challenge. With all of the sexual harassment allegations, how can they make their parties safe AND fun?

Bloomberg reports how some companies are addressing the issue. Vox Media Inc., for example, ended its open-bar tradition, which has disappointed some employees, and Besh Restaurant Group will limit alcohol consumption. Uber and Creative Artists Agency cancelled their parties after allegations of harassment, while other companies are forging ahead as planned.

The number of parties has been decreasing, anyway, since the 90's, and fewer companies include alcohol at their events.

Image source.

Discussion:

• What do you think companies should do about their holiday party this year? What are the arguments for and against having party with alcohol.
• According to one survey, 90% of employees would rather have a bonus or extra vacation days than attend a company holiday party. Why do companies still have them at all?

Delta Communicates Flight Cancellations

Delta announced that about 375 flights were cancelled because of weather conditions around Atlanta. In a short statement on its website, Delta explained the decision and provided customers with sources for more information.

Since the first announcement, Delta posted a large notice on the site: "UPDATED: Delta teams working through night to reset ATL operations." The company also posted updates at noon and again at 4 pm.

Discussion:

• Read the entire statement on the Delta website. Analyze the primary audience and identify the communication objectives. How well does the company meet these objectives?
• Assess the organization. Where are the main points, and how is the rest of the message structured?

Al Franken Resigns

In a statement CNN calls "totally unapologetic," Minnesota Senator Al Franken has resigned. Although he was awaiting an ethics committee investigation, more women have come forward in the meantime reporting similar incidents of groping and forced kissing.

A group of more than 30 senators led by New York Senator Kristen Gillibrand called for his resignation. In a Facebook post titled "Senator Franken Should Step Aside," Gillibrand wrote that she is "shocked and disappointed" by his behavior, and she referred to this time as "a watershed moment."

Franken read a statement on the Senate floor, including this section:

"Over the last few weeks, a number of women have come forward to talk about how they felt my actions had affected them. I was shocked. I was upset. But in responding to their claim, I also wanted to be respectful of that broader conversation. Because all women deserve to be heard and their experiences taken seriously. I think that was the right thing to do. I also think it gave some people the false impression that I was admitting to doing things that in fact I haven't done. Some of the allegations against me are simply not true. Others I remember very differently."

He also pointed to others accused:

"I am leaving while a man who has bragged on tape about his history of sexual assault sits in the Oval Office and a man who repeatedly preyed on young girls campaigns for the Senate with the full support of his party. But this decision is not about me. It's about the people of Minnesota."

A CNN editor summarizes Franken's statement: 

"The message of all this is clear as day: I didn't do anything really wrong. The people who say I did are wrong or don't remember it right. And it's ridiculous that people like Trump and Moore are in the White House and might be in the Senate, respectively, while I am being forced out."

Discussion:

• Do you agree with the CNN writer's assessment that Franken doesn't really apologize? Why or why not?
• Watch Franken's full statement and assess his delivery skills. How well does he use tone, gestures, and so on to support his message?

Indiana University Is Next to Suspend Greek Life

Indiana University is following what is starting to be trend: suspending campus Greek life. University officials say activities are banned until at least the spring. The decision follows similar recent actions by Texas State University, Ohio State University, Ball State, and the University of Michigan after various charges of hazing, drug and alcohol abuse, and a death at Penn State.

Indiana's Interfraternity Council President wrote, "We are looking forward to working with our partners on campus as well as national headquarters and alumni to achieve our common goal of creating a sustainable environment for all our chapters to excel in future endeavors."

Indiana is trying to enforce its standards for fraternities and sororities, which is detailed in a "Agreement for Greek Organizations." The agreement focuses on providing and maintaining a safe environment, including not participating in hazing and controlling events where alcohol is served.

Discussion:

• What effect do you think these suspensions will have on Greek life?
• What actions, if any, has your university taken? What do you think should happen?
• I can't find a statement from Indiana University. Should the administration issue one?

NBC Fires Matt Lauer

Another media star has fallen after reports of sexual harassment. NBC fired Matt Lauer after one complaint, but the company mentioned more were likely—and they have come.

Several women tell about Lauer's inappropriate attention, advances, and exposure. He played what Variety called a "crass quiz" at work that categorized women.  

Lauer worked for NBC since 1994, mostly as a "Today" show co-host. Known as "the crown jewel of the network’s news division," Lauer interviewed U.S. presidents and other senior leaders and celebrities throughout this career.

On air, Savannah Guthrie, Lauer's co-host on the show, read a statement from NBC Chairman Andy Lack. She was emotional as she read the decision.

Lauer issued this apology statement: 

"There are no words to express my sorrow and regret for the pain I have caused others by words and actions. To the people I have hurt, I am truly sorry. As I am writing this I realize the depth of the damage and disappointment I have left behind at home and at NBC.

"Some of what is being said about me is untrue or mischaracterized, but there is enough truth in these stories to make me feel embarrassed and ashamed. I regret that my shame is now shared by the people I cherish dearly.

"Repairing the damage will take a lot of time and soul searching and I'm committed to beginning that effort. It is now my full time job. The last two days have forced me to take a very hard look at my own troubling flaws. It's been humbling. I am blessed to be surrounded by the people I love. I thank them for their patience and grace."

Discussion:

• How well does Guthrie handle the announcement?
• Did NBC do the right thing in terminating Lauer? Was it too much of a risk after just one complaint?
• Assess Lauer's apology. How convincing do you find the statement? What else, if anything, could he say?

CBS This Morning Responds to Charlie Rose

After CBS co-host Charlie Rose was suspended for sexual misconduct, Gayle King and Norah O'Donnell were left to pick up the pieces. They didn't shy away from addressing issues directly. 

O'Donnell read from a script, and King had a script but didn't follow it as closely. She spoke from a more personal perspective, saying she is "not OK," and "I am still reeling." She mentioned her personal relationship with Rose but said, "He doesn't get a pass."

King hit on some points we haven't been hearing much about during all of reports of sexual misconduct, for example, the impact on women's bodies and on their careers and on what it's like for people close to an accuser to have conflicting, confusing feelings about the person.

The Washington Post covered allegations of sexual misconduct against Rose, including eight women, whose stories had "striking commonalities." Rose issued an apology statement:

“In my 45 years in journalism, I have prided myself on being an advocate for the careers of the women with whom I have worked,” Rose said in a statement provided to The Post. “Nevertheless, in the past few days, claims have been made about my behavior toward some former female colleagues.

“It is essential that these women know I hear them and that I deeply apologize for my inappropriate behavior. I am greatly embarrassed. I have behaved insensitively at times, and I accept responsibility for that, though I do not believe that all of these allegations are accurate. I always felt that I was pursuing shared feelings, even though I now realize I was mistaken.

“I have learned a great deal as a result of these events, and I hope others will too. All of us, including me, are coming to a newer and deeper recognition of the pain caused by conduct in the past, and have come to a profound new respect for women and their lives.”

Discussion: 

• What's your view of this segment? How well do you think the co-hosts handled the situation?
• Assess Rose's apology. How does it compare to others we have seen?
• Rose was revered in the industry, but CBS didn't hesitate in suspending him. Did they do the right thing?

Uber's Recovery Problem

Uber's new CEO Dara Khosrowshahi may be having a tougher time than he anticipated. New charges have been issued against the company, including paying off a hacker to keep quiet about stolen customer information.

An analyst on Bloomberg said, "The payment of ransom is egregious, and the lack of investment in proactive cybersecurity measures...was beyond the pale." Other industry experts agree. “I was shocked,” a CTO officer at Menlo Security Inc. “Companies need to own up.” The board recently began an investigation into the $100,000 payment, and they terminated the chief security office and another employee as a result.

Before this incident, Bloomberg reports that Khosrowshahi was already apologizing for the company's past actions:

Since he took over, London moved toward outlawing the service, citing “a lack of corporate responsibility.” Uber is appealing. (“I apologise for the mistakes we’ve made,” Khosrowshahi said in response.) He then traveled to Brasilia to meet with officials there and ward off restrictions on Uber’s business. (“In the past, we were a bit aggressive,” he told a Brazilian newspaper.) And now the mishandled data breach. (“We will learn from our mistakes.”)

I will argue what I have in the past on this blog in my new book on Building Leadership Character: Travis Kalanick lacked humility. He believed he was above the law and therefore wouldn't be help accountable for anything.

Discussion:

• Do you agree with my assessment of Kalanick? Why or why not?
• What can Khosrowshahi do to rebuild the company image?

Apologies from Louis C.K. and His Former Manager

After several women told similar stories about Louis C.K.'s sexual misconduct, the comedian wrote a statement (NSFW). Some appreciate Louis C.K.'s taking responsibility and consider it a far better response than we have seen from Harvey Weinstein or Kevin Spacey. Others think the statement fell short, particularly because he didn't use the words "I'm sorry" or "I apologize."

Quartz published an edited version of the statement, criticizing Louis C.K. for emphasizing how much he's admired rather than how sorry he is.

Meanwhile, Louis C.K.'s manager, Dave Becky, ended their relationship and wrote his own statement:

"I profoundly regret and am deeply sorry for not listening to and not understanding what happened to Dana and Julia. If I had, I would have taken this event as seriously as it deserved to be, and I would have confronted Louis, which would have been the right thing to do.

I am providing this context so that others do not make the same mistake I did. At that time, I heard the story third-hand, and I interpreted the conversation as two women telling a story about a sexual encounter with a then-married Louis. Albeit enormously embarrassing, in no way did I interpret the interaction as threatening or non-consensual. I misperceived the casual way the story was portrayed to me - instead I should have recognized that it must have been a mask for their unease and discomfort in the face of his detestable behavior. My intent was to seek discretion to protect what I thought was a matter of infidelity. I now comprehend that my response was perceived as a threat to cover-up sexual misconduct. This is not an excuse. What I did was wrong, and again, I am extremely sorry.

In hindsight, I was operating blindly from a one-sided place of privilege. Until last week, I knew only of this one isolated incident. Although this may sound naïve, it is true. Never once, in all of these years, did anyone mention any of the other incidents that were reported recently - I am appalled to learn of these. I have come to realize my status wielded an atmosphere where such news did not reach me, or worse yet, that it seemed such news did not matter to me. It does. It matters tremendously.

I am going to take time to reflect on this, to educate myself daily, and to strive towards a more enlightened path. I want to ensure that all voices around me are heard, and that everyone is treated respectfully and empathetically. More than anything, I want to create an environment that is a better, safer and fairer place."

Becky also represents Aziz Ansari, Amy Poehler, and Kevin Hart. He did represent Pamela Adlon, but she terminated the relationship after the Louis C.K. news became public.

Discussion: 

• If you read Louis C.K.'s statement (NSFW), what is your perspective? In what ways does it serve as an effective apology, and in what ways does it fall short?
• Assess Becky's statement similarly.

Florida State University Suspends Greek Life Activities

A fraternity member's death was the last straw for the president of Florida State University. John E. Thrasher suspended all fraternity and sorority activities on campus, calling for "a new normal for Greek life."

The student death, which occurred during pledging, follows another student death in September and cocaine charges for another member. In a statement, Thrasher explained the decision and called on the Greek community to find innovative practices. He emphasized the importance of the pause: "The president said this pause is needed to review and reflect on the loss of a young life."

In a long list, the university itemizes what is not allowed, including meetings or events, and specific FSU activities are mentioned, such as Homecoming "pomping, skit night, or spear-it night."

Discussion:

• The university website refers to the decision as an "indefinite interim suspension." Sounds redundant, doesn't it? Do you think this is intentional or a grammatical oversight?
• Assess the university's FAQs. How well does the administration anticipate and address questions?
• The president is demonstrating compassion and courage, but of course, not everyone agrees with the decision. What are the counterarguments?

Wells Fargo's Stiff CEO Video

Wells Fargo is still trying to rebuild trust after several scandals, including creating millions of fake accounts for customers. The company sent emails to customers and included a link to a new video featuring CEO and president Tim Sloan.

The email starts with a sort-of apology, indicating that they haven't communicated enough.

Dear Wells Fargo Customer, Customers like you have told us they want to hear more about what we've been doing to address our challenges over the past year. Please click here for a two-minute message from our CEO and President, Tim Sloan. We've been making things right for our customers and team members, compensating customers who were harmed, and rehiring thousands of team members. We've been holding senior leaders responsible, up to and including termination, and the forfeiture of hundreds of millions of dollars in executive compensation. And we've been fixing what went wrong, including the elimination of product sales goals for retail bankers in our bank branches and call centers, reinforcing our commitment to ethics and integrity, and refocusing everything we do on our customers. For more details and the latest on our ongoing efforts to build a better company for our customers, please go to www.wellsfargo.com/commitment.

Sloan's messages are consistent: they take responsibility, and they are trying to "make things right." But Sloan is as stiff as he was in another video, created in April.

Discussion:

• Do you agree or disagree with my criticism of the email and video? Why or why not?
• How else would you evaluate the email and video?
• Sloan also isn't giving many specifics. What else, if anything, should he say?

Two NPR Executives Leave

NPR's head of the news division was forced to resign after two women accused him of sexual harassment. Michael Oreskes admitted his failings in a statement:

"I am deeply sorry to the people I hurt. My behavior was wrong and inexcusable, and I accept full responsibility."

Soon after, NPR's chief executive, Jarl Mohn, announced a medical leave:

"As many of you know, last March, I suffered a nearly fatal ruptured aorta. I returned to work with the blessing of my physician with one important caveat - I cannot allow my blood pressure to rise. Regretfully, the hypertension has returned to a dangerous level."

Mohn said he noticed other issues with Oreskes, for example, inappropriate expense reporting, and took some responsibility for the impact of Oreskes' behavior:

"In retrospect, I did not see the bigger pattern of poor judgment and unacceptable behavior. I am sorry, and I have learned from this."

The news hit the industry hard, partly because we rely on reporters' integrity, particularly when allegations of "fake news" are common on both sides of the political aisle.

Discussion:

• Should we have higher standards for news reporters? Why or why not?
• Did Mohn do the right thing by resigning? What are the arguments on both sides of his decision?

TripAdvisor Identifies Issues at Hotels

TripAdvisor has decided to identify hotels where issues about "healthy, safety, and discrimination" have been reported. Given the increasing conversations about sexual harassment, the company is stepping up, but the notice raises serious concerns for hotels.

Related to this move, TripAdvisor has apologized for removing a post reporting a rape by a hotel security guard. Turns out, other women posted similar reports, and there is a pattern. In a statement, the company also explained its plan to use badges:

Official TripAdvisor Statement Concerning Raquel Rutledge/USA Today Network Story

NEEDHAM, Mass., Nov. 1, 2017

The following is the official statement from TripAdvisor concerning the article by Raquel Rutledge of the USA Today network:

"TripAdvisor's site includes more than 535 million reviews and opinions from global travelers who write about their experiences at hotels, with airlines, restaurants and local attractions. Like any other content business, we work to adhere to publishing guidelines that are in place to ensure the accuracy and integrity of those reviews.

TripAdvisor has always maintained - since our founding - a strict separation between our commerce and content businesses. Despite assertions and statements made by a recent USA Today article, there is no tie between commercial relationships with our partners and how our content guidelines are applied to reviews or forum posts published on the site.  

We apologize to the sexual assault victim reported on in the article, who had her forum post removed seven years ago on TripAdvisor. At the time, we had a policy whereby we judged content to be in breach of our guidelines if it did not adhere to family-friendly language. More than seven years ago that meant all language needed to be G-rated. A few years ago, we changed that policy to allow more descriptive reviews on the site about first-hand accounts of serious incidents like rape or assault. We recognized then that our previous guidelines went too far in preventing information like this from being shared.

Over the last several years, this policy change has yielded many first-hand accounts of serious incidents being published on the platform. A simple search of TripAdvisor will show numerous reviews from travelers over the last several years who wrote about their first-hand experiences that include matters of robbery or theft, assault and rape. We believe any first-hand experience should be posted to our site as a means to communicate to other consumers looking for information on where they should travel.

When we were made aware that this post had been removed under our previous guidelines, we republished it in line with our revised policy.

We are horrified that this victim experienced this assault on her vacation in Mexico, and other travelers should be aware of this incident. 

In order to better inform consumers and provide them with even more information about their travels, TripAdvisor is creating a "badge" notification to apply to businesses to alert consumers of health and safety or discrimination issues at that business reported on within the media or other credible sources of information. 

We will continue to work to improve and evolve our moderation and publishing guidelines as we work to provide the most accurate information in the travel industry available online."

The new badge will read as follows:

Discussion:

• What ethical issues and communication challenges are raised by this decision? Consider perspectives of hotel guests, managers, and staff. What are the potential advantages and potential negative implications? 
• If you owned a hotel that received this badge, what would you do?
• In what ways does TripAdvisor's statement demonstrate compassion? Where does it fall short?

Air Force Admits Failure

The U.S. Air Force admits it didn't properly report Devin P. Kelley's history to federal law enforcement. The error is critical because Kelley's violent past may have prevented him from buying guns he used to kill 26 people in a Texas church. Kelley spent 12 months in prison and left the Air Force with a "bad conduct" discharge after harming his wife and child.

Air Force spokeswoman Ann Stefanek said, "Initial information indicates that Kelley's domestic violence offense was not entered into the National Criminal Information Center database." This omission led to Kelley's passing the background check before he could purchase guns at a firearms retailer.

Of course, the incident raises bigger questions about how often relevant background information is not reported about former service members. U.S. Air Force Sec. Heather Wilson appeared on MSNBC's Squawk Box to admit the failings during a televised interview. When asked whether she was concerned about possible liability from victims' families, she said, "No, I'm more interested in responsibility. And we've taken responsibility, and we're going to find out what happened and fix it.”

Image source.

Discussion:

• The Air Force has readily admitted a critical failing, which could have led to 26 deaths. Why would the organization choose this disclosure?

• Describe how Wilson is demonstrating vulnerability. What are the potential downsides?

Twitter Responds to Missing @realdonaldtrump

For what some call censorship and others call a glorious 11 minutes, President Trump's Twitter account was down. The company took some time to figure out what happened, and the results were startling.

At first, Twitter referred to the problem as "inadvertent" as "human error," but further investigation revealed that a customer service employee did the deed on his or her last day of employment. A third tweet announced new "safeguards":

Update: We have implemented safeguards to prevent this from happening again. We won't be able to share all details about our internal investigation or updates to our security measures, but we take this seriously and our teams are on it.

The incident does not reflect well on Twitter, currently questioned, along with other social sites, about its role in fake news that may have affected the 2016 election.

Discussion:

• How should Twitter have responded differently?
• The final message, "Update" above, is short. What else, if anything, should the company say at this point?

A Chef Resigns After Sexual Harassment Charges

An investigation found 25 employees of Besh Restaurant Group claiming sexual harassment. BRG owns 14 restaurants, including Restaurant August in New Orleans and Johnny Sanchez in New Orleans and Baltimore.

The women describe a hostile working environment where "vulgar and offensive comments, aggressive unwelcomed touching, and sexual advances were condoned and sometimes even encouraged by managers and supervisors." Some charges were against John Besh, co-owner of the group.

When faced with the first complaint, Besh said it was "a consensual relationship with one member of my team." But additional women came forward, and it became more difficult for Besh to isolate the incident. BRG announced Besh's decision to resign. In an email to employees, CEO Shannon wrote, "John has decided to step down from all aspects of operations and to provide his full focus on his family."

Besh and BRG issued statements in response to the claims.

John Besh's statement:

"Two years ago, I deeply hurt those I love by thoughtlessly engaging in a consensual relationship with one member of my team. Since then I have been seeking to rebuild my marriage and come to terms with my reckless actions given the profound love I have for my wife, my boys and my Catholic faith. I also regret any harm this may have caused to my second family at the restaurant group, and sincerely apologize to anyone past and present who has worked for me who found my behavior as unacceptable as I do.

"I alone am entirely responsible for my moral failings. This is not the way the head of a company like ours should have acted, let alone a husband and father. But it should not taint our incredible team of more than 1,000 employees, nor undermine our unyielding commitment to treating everyone with respect and dignity, regardless of gender, race, age and sexual preference."

Statement from Raymond Landry, Besh Restaurant Group's general counsel:

"We have learned recently that a number of women in our company feel that we have not had a clear mechanism in place to allow them to voice concerns about receiving the respect they deserve on the job. I want to assure all of our employees that if even a single person feels this way, it is one person too many and that ends now.

"While we've had a complaint procedure in place that complies with all existing laws, we now recognize that, as a practical matter, we needed to do more than what the law requires and we have revamped our training, education and procedures accordingly. Now that we have learned of these concerns, we believe going forward that everyone at our company will be fully aware of the clear procedures that are now in place to safeguard against anyone feeling that his or her concerns will not be heard and addressed free from retaliation."

Discussion:

• Analyze Besh's response: the first attempt, his statement, and his decision to step down.
• How well does Landry's statement for BRG address the situation? What, if anything, should the company do differently?

Tarantino Admits to Knowing More

As more female victims come forward to describe Harvey Weinstein's sexual harassment behavior, one male celebrity admits to knowing and doing not enough about it at the time. Director Quentin Tarantino said, "I knew enough to do more than I did," and "There was more to it than just the normal rumors, the normal gossip. It wasn't secondhand. I knew he did a couple of these things."

Tarantino cited incidents with women including his former girlfriend Mira Sorvino and also said, "I wish I had taken responsibility for what I heard," and "If I had done the work I should have done then, I would have had to not work with him."

The director regrets not seeing the larger pattern of abuse and demonstrates vulnerability when he admits, "Anything I say now will sound like a crappy excuse," and "I chalked it up to a '50s-'60s era image of a boss chasing a secretary around the desk," he said. "As if that's O.K. That's the egg on my face right now."

Unsurprisingly, Tarantino says others close to Weinstein also knew and did nothing to stop the abuse.

Above is a picture of Tarantino in the movie Pulp Fiction.

Image source.

Discussion:

• What's your reaction to Tarantino's statements?
• In what ways is Tarantino demonstrating vulnerability?
• Why do you think he's coming forward now? Why haven't other Hollywood men come forward? Should they?

Harvey Weinstein's Plea

Harvey Weinstein may have worsened his case by sending emails to friends asking for their defense. After several allegations of sexual harassment and at least two charges of assault over decades, the Hollywood producer's board of directors was getting ready to fire him from the company. Not willing to go quietly, Weinstein emailed people, including Jeffrey Katzenberg, the chairman of Walt Disney Studies. But he didn't get the response he was expecting.

Weinstein's email is below. He demonstrates some vulnerability but fails to take full responsibility, instead saying "a lot of the allegations are false as you know":

My board is thinking of firing me. All I'm asking, is let me take a leave of absence and get into heavy therapy and counseling. Whether it be in a facility or somewhere else, allow me to resurrect myself with a second chance. A lot of the allegations are false as you know but given therapy and counseling as other people have done, I think I'd be able to get there. 

I could really use your support or just your honesty if you can't support me. 

But if you can, I need you to send a letter to my private gmail address. The letter would only go to the board and no one else. We believe what the board is trying to do is not only wrong but might be illegal and would destroy the company. If you could write this letter backing me, getting me the help and time away I need, and also stating your opposition to the board firing me, it would help me a lot. I am desperate for your help. Just give me the time to have therapy. Do not let me be fired. If the industry supports me, that is all I need. 

With all due respect, I need the letter today.

Instead, Katzenberg emailed Weinstein and made his response public. In part, he says, "You have done terrible things to a number of women over a period of years," yet Katzenberg calls him a friend and offers his help.

An interesting part of this story is the criticism of men who have come forward with a preface such as, "As a father of two daughters." A writer for Vulture explains this perspective.

Image source.

Discussion:

• What's your view of Weinstein's letter to his friends? What other approaches could he take knowing his board is planning to fire him?
• How do you assess Katzenberg's response and his choice to make the email public? Is he a bad friend? What is he trying to accomplish for himself and for Weinstein in his response?
• Finally, what's your view of people referencing their wives and daughters? Is the Vulture writer's perspective spot on, too harsh, or something else?

Pronouns Matter on Earnings Calls

A study by researchers at Tulane University found that CEOs who use "self-inclusive language" on earnings calls leave more positive impressions. Self-inclusive language means using first-person pronouns that include the speaker, and they can take singular or plural forms (for examples, "I", "we," "us," "my," "our").  When executives didn't use pronouns (for example, "Webtex's managers" or "Webtex management"), investors reacted less favorably to disclosures, whether positive or negative. The study  script is below.

In addition to the experimental study, the article includes results from text analysis of more than 50,000 earnings calls. Correlating language used in the calls with market reactions, the authors confirm results from the experiment.

A Wall Street Journal article quotes James Pennebaker, a professor of psychology at the University of Texas at Austin about the study: "The way I interpret it is that the manager's coming across as more human." Pennebaker is referring to authenticity, and that likely is part of the explanation. Another possibility is that executives sound more accountable, which might also cause investors to respond favorably. In the article, the authors also hypothesize:

"When news is positive, investors react more positively to managers' use of SIL
because they infer managers are more likely to have high ability. When news is negative,
investors also react more positively to managers' use of SIL as it appears that managers are more in control of the situation."

Image source.

Discussion:

• You just read a few interpretations of the study results. What do you think could explain the results?
• To what other types of messages could this research apply?

Equifax Visits Congress

Former Equifax CEO Richard Smith admitted failures during a House Energy and Commerce Committee hearing. Smith had already apologized in a video statement, but during the hearing, he mentioned his personal accountability:

"The criminal hack happened on my watch. I am truly and deeply sorry for what happened."

Yet critics say that Equifax is still not taking full responsibility. A TechCrunch article highlights Smith's testimony blaming one person: 

"The human error was that the individual who's responsible for communicating in the organization to apply the patch, did not."

The TechCrunch writer seems to think this is ridiculous:

"The notion that just one person didn't do their job and led to the biggest breach in history is quite an amazing claim and shows a fundamental lack of good security practices. But that's what Smith says led to this disaster."

Smith and Equifax's CIO retired from the company after the news became public, which took a while: executives apparently knew about a software issue back in March, but the company didn't announce the breach until September.

A Wired article cites "6 Fresh Horrors from the Equifax CEO's Congressional Hearing." In addition to the delayed admission, the article attack's Equifax's technology, including inadequate patching, failure to encrypt data, limited security reviews, and insufficient website capabilities.

Another twist is this case is why three top people in the company sold $1.8 million in stock around the time they would have learned of the breach. Smith denies questions of integrity:

"I've know these individual for up to 12 years. They're men of integrity. I have no indication that they had any knowledge of the breach when they made this sale." 

Image source.

Discussion:

• Assess Smith's testimony. What parts do you find most and least convincing? 
• What else, if anything, should Equifax do now to rebuild trust?
• In what ways is this case an issue of integrity?

Harvey Weinstein Apologizes for Sexual Harassment

Revered Hollywood producer Harvey Weinstein has been accused of sexual harassment, and he has apologized. A New York Times article cites "decades" of sexual harassment, including regular reports of women seeing Weinstein partially or fully naked. Women also report being asked for massages and other sexual activities, but few reported them at the same.

He submitted a written apology that meets many of the criteria for a good apology, yet a reporter on The Daily described a different conversation with Weinstein. She indicated that, over the phone, Weinstein's response was more "complicated." She says that he denied some aspects of the accusations, and indeed, his attorney has said, "he denies many of the accusations as patently false."

Image source.

Discussion:

• Read the NY Times article. How credible do you find the women's reports? Which are more credible than others?
• To what extent do you find Weinstein's written statement credible? How would you explain some of the contradictions between the statement and the quotations from him and his lawyer? 
• In part, Weinstein describes another time, when his behavior was considered acceptable. (Think Mad Men.) Do you buy this argument? Why or why not?