More Companies Take Action to Curb Gun Sales

Dick's Sporting Goods has taken a strong stance on gun control. In a statement, the company announced it will no longer sell assault-style rifles and will no longer sell firearms to people under 21 years of age. The statement dances the fine line between both sides of the gun control debate:

We support and respect the Second Amendment, and we recognize and appreciate that the vast majority of gun owners in this country are responsible, law-abiding citizens. But we have to help solve the problem that’s in front of us. Gun violence is an epidemic that’s taking the lives of too many people, including the brightest hope for the future of America – our kids.

Walmart also announced it will no longer sell to people under 21 years of age. The company ended some firearm sales in 2015, so this policy further restricts what people can purchase when.

Companies are in a tough spot. Dicks, Walmart, Delta, and other companies have suffered backlash for their decisions, including people promising to boycott.

Discussion:

• Compare Dick's and Walmart's statements. How do they differ? Which is more effective and why?
• Describe Dick's choices. What are the risks and rewards of the announcement?
• Should other CEOs jump into the controversy? How might the decision depend on industry, customer base, or the leader him- or herself?

NYU Criticized for Racially Insensitive Menu Items

One of the NYU dining halls created new menu items to observe Black History Month. Unfortunately, the items reinforced racial stereotypes and weren't well received, according to a New York Times report:

"Barbecue ribs, corn bread, collard greens, and two beverages with racist connotations: Kool-Aid and watermelon-flavored water."

After a sophomore, Nia Harris, complained about the menu and didn't get a satisfying response, she wrote an email calling the decision "racially insensitive" and "just ignorant." She described her perspective and experience in a Facebook post:

Harris seems more concerned about the failed response than the initial decision to create the menu. Clearly, staff members could have handled this situation differently.

Later, the university did respond, including statements from Aramark to which dining at NYU is outsourced.

Discussion:

• Describe Harris's point of view. What were the university's missteps in this situation? Why do you think Harris didn't get a better response?
• Assess the university's response. They blame Aramark. Is that appropriate in this case? Why or why not?
• Now assess Aramark's two statements. How well does the company address the criticism?

Facebook Under Fire for Russian Interference

Facebook is facing more criticism following detailed reports of how the Russian government infiltrated U.S. social media platforms during the 2016 election. The report cites Facebook as the target for Russian bots far more than any other social media site.

Since the Florida school shooting last week, we see evidence of Russian bots weighing in on gun control. Experts say these efforts are to divide the American people on political issues and are "casting public doubt on institutions such as the police or the media."

Facebook is taking action, but it's been slow, and experts wonder how much the company can do at this point. A Wired article details Facebook's journey to accountability, with much time spent in denial. Now, Facebook promises to verify accounts for election ads, but critics say it won't be enough.

In a report, Facebookers point to inherent problems with the platform:

“The central problem of disinformation corrupting American political culture is not Russian spies or a particular social media platform,” they write. “The central problem is that the entire industry is built to leverage sophisticated technology to aggregate user attention and sell advertising.

“There is an alignment of interests between advertisers and the platforms. And disinformation operators are typically indistinguishable from any other advertiser. Any viable policy solutions must start here.”

Discussion:

• What's your view of the situation and Facebook's responsibility. Is the company doing enough?
• How could Facebook re-envision its platform to avoid the problem of infiltrators on the site?
• Read the report, Digital Deceit. What business communication principles are followed, and how could the report be improved?

Shark Tank Example: Learning from Failure

On a recent Shark Tank, two entrepreneurs sought investment in their dog water company—flavored water for your favorite pet to drink. The sharks weren't excited, and Robert Herjavec summed up the sentiment: "My challenge is with you." He then listed the reasons the founder gave for not being farther along with the business, and they were all outside her control. At one point, the founder blames the economy and the company's inability to get a business loan.

The founder doesn't quite understand—or doesn't acknowledge the criticism. She responds with, "But I'm still here!" and seems to miss the point entirely.

The end is also awkward. It takes a while for her to leave because she's still selling even after all sharks are "out."

Discussion:

• How could the entrepreneurs demonstrate humility and their ability to learn from failure? In other words, how can they describe their setbacks in a way that doesn't turn off investors?
• How do you view the founder's last couple of minutes with the sharks? I admire persistence, but is it too much? If so, why?

Delta Representative Confronts Customer—on Video

When a Delta flight from Honolulu to Portland, OR, was delayed twice, a customer was re-booked on a Hawaiian Airlines flight, but his luggage didn't make it.

We don't see the context, but the passenger filmed (NSFW) an interaction with Delta staff, and the scene doesn't reflect well on the company. In the video, one of the agents says, "You can take my f-- picture if you want to, a--hole." He then suggests they call the police because "This guy's out of control."

Delta replied to the incident with a statement:

"The actions displayed by this employee do not in any way reflect the standard of customer service and professionalism we expect from our employees. This conduct is unacceptable, and we have reached out directly to the customer and apologized."

The employee was suspended.

Discussion:

• The employee has little excuse for his behavior, but could some context at least explain the agent's reaction? For example, why would he say, "This guy's out of control?"
• Did the passenger act appropriately? What is his responsibility for the interaction?
• Should the airline reinstate or fire the agent?

Newspaper Apologizes for Cartoon

The Albuquerque Journal in New Mexico issued an apology for a cartoon some call racist. Critics say the image advances "the most false and negative stereotype of DREAMers." Of the states, the Hispanic population is highest in New Mexico—48.5%.

In a statement, editor Karen Moses explained the paper's view:

Political cartoons are often satire and poke at more than one point of view. I do not presume to know what cartoonist Sean Delonas was trying to convey in his cartoon that was published in Wednesday’s Albuquerque Journal. But on one level it appeared to us to be poking at President Trump’s rhetoric by portraying a quaking Republican couple who were painting Dreamers with a broad, totally false, brush.

Obviously, that was not the message received by many readers. Instead, many saw an extremely objectionable cartoon and thought that was the position of the Journal. It is not.

In hindsight, instead of generating debate, this cartoon only inflamed emotions. This was not the intent, and for that, the Journal apologizes.

I repeat that the Albuquerque Journal does not condone racism or bigotry in any form.

I also want to reiterate that we do not agree with many of the opinions expressed on the editorial pages, which are intended to encourage debate. Also, the editorial board decides what to publish on these pages, and that is separate from the newsroom and its reporters.

News agencies report conflicting data about crimes rates among immigrants. Compare data presented by The New York Times and Breitbart.

Discussion:

• What's your view of the cartoon: funny, offensive, or something else?
• How well did the newspaper editor handle the response?
• Compare data from these two articles about immigrants: The New York Times and Breitbart. What do they each analyze, and how do they present the data? How do you explain the differences?

Questions of Transparency

The long-awaited memo written by Republican staff members about potential impropriety from the Justice Department and F.B.I in the Russia investigation has been revealed. Now, The New York Times editorial board is calling, once again, for President Trump to reveal his tax returns:

Since the Republicans are now on board with greater transparency, they will no doubt push President Trump to release his tax returns, as every other major-party presidential nominee has done for the past four decades, won’t they?

How about the White House visitor logs, which the Trump administration started hiding from the public last year? Or, say, the names of all foreign governments and officials who have stayed — at their own or at American taxpayers’ expense — at Mr. Trump’s Washington hotel, at his Mar-a-Lago resort in Florida or at his golf courses and his other businesses since he became president? Or the names of every foreign business with which the Trump Organization has a financial relationship, especially in countries where America has sensitive foreign policy interests, like China, India, Russia, Turkey or Saudi Arabia?

The reasoning sounds like reciprocity, but the argument may not get no more traction now than it did during the presidential campaign. A Pew research study in January 2017 showed that 60% of those surveyed believed Trump "has responsibility" to release his returns. Although some were adamant about the release at the time, the Wall Street Journal, for example, reported that the returns wouldn't tell us much anyway.

Discussion:

• What are the advantages and downsides of President Trump revealing his tax returns?
• Read the entire opinion piece. What other arguments do the authors make?
• Do you agree with their reasoning? Why or why not?
• How would you describe the tone? Does the approach help or hurt the argument?

MSU President's Resignation Letter

After calls for her resignation, Lou Anna Simon, the 13-year Michigan State University president submitted her letter. She could not escape criticism that she knew of Dr. Larry Nassar's sexual abuse of students and didn't do enough. Simons admitted encouraging an investigation and not receiving the final report. Reports also say that at least 14 university staff members received complaints about Nassar over two years.

Although most of the board initially supported her, students and others did not, and in the end, the board chair wrote, "We agree with Dr. Simon that it is now time for change."

Simon's letter is a mix of sympathy for the victims, love for the college, and defeat. In this paragraph, she focuses on blame:

As tragedies are politicized, blame is inevitable.  As president, it is only natural that I am the focus of this anger.  I understand, and that is why I have limited my personal statements.   Throughout my career, I have worked very hard to put Team MSU first.  Throughout my career, I have consistently and persistently spoken and worked on behalf of Team MSU.  I have tried to make it not about me.  I urge those who have supported my work to understand that I cannot make it about me now.  Therefore, I am tendering my resignation as president according to the terms of my employment agreement.

Discussion:

• Critics say Simon shifts accountability in her letter, particularly the paragraph above. What's your view?
• Did Simon make the right decision? Why or why not? 
• What should the university do to help the campus recover from this situation? How can they rebuild trust and make MSU feel like a safe place?

Fudging Numbers to Make the NYC Subway Look Better

New York Governor Andrew Cuomo's staff is criticized for inflating power-related issues as the cause of subway failures. Transit officials apparently broadened the definition of power issues so that Con Edison, the local utility company, would be given more of the blame when subways aren't running. Emails were discovered before Governor Cuomo was scheduled to give a breakfast talk, during which he said the number of outages due to power failures was 32,000 in the past year, while the actual number was more like 8,000:

When you we're a kid and you had a train set you had to plug it in. We have to plug in the MTA every morning and the MTA does not control the power supply to the MTA. Over the last 12 months, 32,000 delays because of power related issues and they can either be a power surge or power shortage, but 32,000 delays. The MTA doesn't control the power, Con Edison does. Con Edison has a duty to safely, prudently and effectively provide electricity that powers the subway system. Con Ed is a regulated utility under the state's Public Service Commission. April 21 after the last outage I ordered an investigation of the Con Ed infrastructure after a particularly devastating failure. The investigation goes on but PSC has already found that Con Ed must make immediate and significant improvements in this system because the reliability depends on it.   

The chief of staff of the transit agency wrote in an email that they were "looking for a higher delay number for power." The expanded definition was that ConEd "caused or contributed to" delays. One example is when a person jumps or falls onto the tracks; ConEd will shut off the power for safety. With the new definition, the delay becomes ConEd's fault.

Cover image source.

Discussion:

• We certainly can use numbers to our advantage when trying to persuade others. How does this situation "cross a line"?
• What should Governor Cuomo do now? What, if any, statement would be appropriate?
• Do you remember "Bridegate" in New Jersey? How is this situation similar or different?

Morgan Stanley Clarifies a Termination

In December, a female reporter accused a former congressman who was hired as a managing director at Morgan Stanley of sexual harassment. Morgan Stanley fired Harold Ford Jr., and he lost his gig as a frequent commentator on MSNBC.

Ford had maintained his innocence, and now, the company is saying Ford was not terminated for sexual harassment but was let go because of other misconduct: 

" Morgan Stanley would like to clarify the circumstances of Mr. Ford’s departure. We take allegations of inappropriate conduct seriously, The press has reported that Mr. Ford was terminated for sexual misconduct. He was not. We have not received any internal allegations of sexual harassment or misconduct involving him either before or after his separation became public. As previously stated, his separation was based on corporate policy.”

The statement is curious because it mentions only internal allegations—or maybe I'm reading into it too much.

Discussion:

• How do you read the statement and possible distinction between internal and external?
• Why would Morgan Stanley issue such a statement two months after Ford's termination?

How Well Can People Rate News "Credibility"?

Facebook has a solution to its fake-news problem: allow users to assess stories' credibility and trustworthiness. Stories rated more highly will get higher ranks in newsfeeds.

In a Facebook post, Mark Zuckerberg explained the plan:

Here's how this will work. As part of our ongoing quality surveys, we will now ask people whether they're familiar with a news source and, if so, whether they trust that source. The idea is that some news organizations are only trusted by their readers or watchers, and others are broadly trusted across society even by those who don't follow them directly. (We eliminate from the sample those who aren't familiar with a source, so the output is a ratio of those who trust the source to those who are familiar with it.)

Critics call the move "time-wasting stupidity":

So people get to rate the credibility of news. Based on what?

The answer is easy. People will believe any story that presents a view they want to hear.

Is there a point to this?

Sure, Facebook wants people to waste still more time on Facebook debating what is or isn't fake new [sic].

Rating news stores based on credibility is time-wasting silliness.

That's precisely why Facebook introduced the feature. Don't fall for it.

Discussion:

• Business communicators may have some questions as well. What principles of research and source credibility are in question here? What do we know about how people interact on social media that may jeopardize Facebook's plan?
• On the other hand, what is positive about the plan?
• On balance, are you more optimistic or pessimistic about Facebook's ability to reduce fake news?
• Assess Zuckerberg's writing skills in the full post. How well does he organize the message and communicate his ideas?
• Is this a good or a weak example of Facebook's accountability?

Calls for Michigan State President to Resign

Some believe it's a matter of integrity and accountability; others believe this will start the healing process. In addition to public demands, one Michigan State trustee says it's time for the university president to resign over Dr. Lawrence G. Nassar's sexual abuse of dozens of female athletes.

The rest of the university trustees have shown public support for the president, Lou Anna Simon. In a statement, they said, "President Simon is the right leader for the university, and she has our support." But the sole trustee, Mitch Lyons, disagrees:

“I don’t feel that President Simon can survive the public outcry that has been generated by this tragedy. I feel that our best recourse is for President Simon to resign immediately in order to allow the healing process to begin."

According to a Detriot News story, several university officials, including the president, heard complaints about Nassar. Simons admits, “I was informed that a sports medicine doctor was under investigation. I told people to play it straight up, and I did not receive a copy of the report. That’s the truth.” People question her judgment in not seeing the final report, particularly given the recent explosive case at Penn State University. We will see what happens next.

Image source.

Discussion:

• Should Simon resign? Why or why not?
• What does it take for Lyons to break rank with the rest of the trustees? How would you describe the possible dynamics on the board?
• How does such abuse go on for so long? About 140 women complained about Nassar when he was working with Olympic athletes, and at least eight students came forward at the Michigan State.
• At the end of the trustees' statement, a reporter asks, "Why no questions?" But the board leaves the room without saying anything. Should they have taken questions? Why or why not?

Marriott Apologizes for Mislabeling Chinese Region

Marriott apologized for mistakenly listing Tibet,  Macau, Hong Kong, and Taiwan as countries in a drop-down menu under China. This is a controversial issue, which the company has since acknowledged in a statement on its website beginning as follows:

"Marriott International respects and supports the sovereignty and territorial integrity of China. Unfortunately, twice this week, we had incidents that suggested the opposite: First, by incorrectly labelling certain regions within China, including Tibet, as countries in a drop-down menu on a survey we sent out to our loyalty members; and second, in the careless “like” by an associate of a tweet that incorrectly suggested our support of this position. Nothing could be further from the truth: we don’t support anyone who subverts the sovereignty and territorial integrity of China and we do not intend in any way to encourage or incite any such people or groups. We recognize the severity of the situation and sincerely apologize."

Marriott is not alone in the mistake: 24 airlines have similar website configurations. The Marriott situation was complicated by an employee "liking" a post by Friends of Tibet, suggesting that the company supports the independence of Tibet. 

The statement goes on to describe what Marriott will do differently in surveys in the future.

Discussion:

• Marriott says the survey was created by another company to which the project was outsourced. They don't say it as an excuse, but is it? What is Marriott's responsibility for oversight?
• How well does the statement express the apology? What, if anything, could be improved?

Intel CEO Warns of Vulnerability, a Little Late

The CEO of Intel has bad news: a patch for a chip vulnerability will slow down computer operations. In an interview with Bloomberg, a technology analyst explains the typical process when finding security issues: companies find a bug and solve it before going public. However, this time, an issue known for perhaps a year went unsolved and was kept quiet—until now.

Bloomberg says chip makers had downplayed the effects of the patch, but CEO Brian Krzanich has finally described the issue:

“We believe the performance impact of these updates is highly workload-dependent. As a result, we expect some workloads may have a larger impact than others. As of now we have not received any information that these exploits have been used to retrieve customer data.”

In other words, the patch works but will slow down operations.

A technology analyst says this is the first time chip makers like Intel have gotten caught needing to admit a potential vulnerability, and it's unclear why it hasn't been fixed before this point.

Bloomberg reports on the secrecy and implications:

“Our first priority has been to have a complete mitigation in place,” said Intel’s Parker. “We’ve delivered a solution.”

Some in the cybersecurity community aren’t so sure. Kocher, who helped discover Spectre [a bug], thinks this is just the beginning of the industry’s woes. Now that new ways to exploit chips have been exposed, there’ll be more variations and more flaws that will require more patches and mitigation.

"This is just like peeling the lid off the can of worms," he said.

Image source.

Discussion:

• In what ways did Intel avoid accountability? How did the avoidance affect the company? What would have been a more appropriate response to finding the bugs?
• Distinguish between this computer vulnerability and vulnerability in interpersonal relationships. One is good; the other is not.
• Read the Intel CEO's quote, above. It sounds jargony but was presented at CES, a conference of IT professionals. Did he use appropriate language, or does his word choice demonstrate a lack of transparency? What do you think?

H&M's Product and Photo Criticized

Yet another retailer is criticized for a product and image considered, as Forbes puts it, "racially insensitive." This time, H&M is answering for an image of a black child in a hooded sweatshirt with the message, "Coolest Monkey in the Jungle."

As predicted, the company pulled the product and issued an apology:

"We understand that many people are upset about the image. We, who work at H&M, can only agree. We are deeply sorry that the picture was taken, and we also regret the actual print. Therefore, we have not only removed the image from our channels, but also the garment from our product offering globally. It is obvious that our routines have not been followed properly. This is without any doubt. We will thoroughly investigate why this happened to prevent this type of mistake from happening again."

Still, some people are boycotting H&M, and Grammy winner Abel Tesfaye (aka "The Weeknd") says he is cutting ties with the brand.

Discussion:

• Same question as usual: How did this happen? How could the product and image have passed a review process?
• Abercrombie has been accused of intentionally creating controversial clothing. Do you think this is the case with H&M? Why or why not?
• To what extent is H&M taking responsibility for the incident? What else, if anything, should the company do?

NBC's Integrity Called Into Question

NBC's Twitter account manager overstepped when posting about Oprah at the Golden Globes.  

The company tweeted a correction and removed the post:

"Yesterday a tweet about the Golden Globes and Oprah Winfrey was sent by a third party agency for NBC Entertainment in real time during the broadcast. It is in reference to a joke made during the monologue and not meant to be a political statement. We have since removed the tweet." 

Donald Trump Jr. didn't miss the chance to reinforce his father's criticism of mainstream media as "fake news."

Discussion:

• How well did NBC handle the situation? What else, if anything, should the company do?
• How damaging do you think this tweet is for NBC and for mainstream media?
• To what extent did NBC demonstrate accountability?
• What are the other dangers of outsourcing a Twitter account? (Hint: authenticity)

More Water Issues for Flint and No Response

Flint, Michigan, is in the news again for poor water quality. After findings of too much lead in drinking water, the city was under an agreement to replace faulty pipes, provide water filters, and report on progress. However, advocacy groups say the city is already falling short of the terms set in March of this year. According to the NPR article, "City and state officials did not immediately respond to the allegations."

Although some water service lines have been replaced, the number is not keeping pace with the agreement. Critics say that "all of the City's status reports have been late, incomplete, inaccurate, or a combination thereof."

The government has its own messaging on a website from the mayor's office. According to the data and chart, the city is "on track."

Discussion:

• Read the criticism and the mayor's report. What are the discrepancies, and how do you account for them?
• What else, if anything, should the city do to communicate its progress and demonstrate accountability?

Papa John's Vague Message About a New CEO

Papa John's Founder and CEO John Schnatter will be replaced by a long-time insider, Steve Ritchie. Although the company didn't confirm a connection, a New York Times report assumes the move is related to Schnatter's controversial statements about the NFL. He blamed NFL leadership for allowing players to kneel during the national anthem, which he said led to declining viewership and, as a result, declining pizza sales.

The company's news statement also says little about the decision. Instead, the message focuses on Ritchie's qualifications, with endorsements from Schnatter, who will remain board chair.

Schnatter's accusations were criticized by some and, unfortunately, touted by white supremacist groups. Schnatter did his best to disentangle from the association with hate groups, but the damage may have been done.

Image source.

Discussion:

• Did the company make the right decision? What are the potential consequences?
• Should Papa John's say more about the reason Schnatter is stepping down? Why or why not?

Amtrak Leaders Take Responsibility

Amtrak's leaders have apologized for a train crash in Washington that left three people dead and about 100 more injured. Two of the men who died were train enthusiasts who traveled together to experience the new route.

In the past, Amtrak has been slow to apologize. This time, the response is better, yet not enough for some, as you see in this response on Twitter.

The president and CEO's full message is below:

To our customers,

On behalf of everyone at Amtrak, I want to share that we are deeply saddened by the tragic event involving train 501 on December 18th. We are profoundly sorry for those who have lost a loved one, were injured, or are otherwise impacted by this horrible event. At this time, our primary concern continues to be caring for our customers and employees, and we are using every available resource to assist those affected. We share everyone’s sense of urgency to identify exactly what caused this to happen, and we continue to fully cooperate with the investigation being led by the NTSB.

If you are traveling with us during the holiday season, I want to assure you that Amtrak remains committed to your safety. Our primary focus is and will always be getting you to your destination safely, comfortably, and efficiently. We are truly privileged to serve you and thank you for your continued patronage.

Richard Anderson

As always in these situations, Amtrak provided regular service updates on its website, and this apology is an improvement. But, after several similar crashes, including those involving MTA trains, people want to know what will be done to prevent this from happening again.

Discussion:

• What's your view of the president's message? How well does the message meet principles of apologies?
• What else should the organization do now? How can it rebuild its image and assure people that Amtrak trains are safe?

Morgan Spurlock Admits Sexual Misconduct

Documentarian Morgan Spurlock published an account of his sexual conduct, admitting, "I am part of the problem." He demonstrates vulnerability and describes a situation which a woman describes as rape. He also admits that he was "unfaithful to every wife and girlfriend I have ever had." Spurlock is the first public figure who admitted misconduct before he was accused.

His most famous movie was Super Size Me, which criticized McDonald's for unhealthy food. Super Size Me 2: Holy Chicken! was going to premiere at the Sundance Film Festival but will be withdrawn. In addition, Spurlock's production company, Warrior Poets, announced that he will step down:

On behalf of Warrior Poets, we as partners have always supported our company and its endeavors. As of today, Morgan Spurlock will be stepping down effective immediately.

We will continue to lead the company as equal partners, producing, distributing & creating from our independent production company.

Respectfully,
Co-Founder & Partner Jeremy Chilnick
and Partner Matthew Galkin

Discussion:

• What's your view of Spurlock's statement, which some call a "confessional"? Some consider it trite, while others applaud his openness.
• Was it best for Spurlock to step down from Warrier Poet? Why or why not?