Governor's Racist Yearbook Images

Virginia State Governor Ralph Northam is facing calls for his resignation when images from his 1984 medical school yearbook surfaced. After Northam was in the news this week for supporting women’s rights to an abortion, a conservative group posted the images on the website Big League Politics.

Two people appear in one image: one in blackface and the other wearing a KKK outfit. Northam responded to the controversy with this statement:

“I am deeply sorry for the decision I made to appear as I did in this photo and for the hurt that decision caused then and now. This behavior is not in keeping with who I am today and the values I have fought for throughout my career in the military, in medicine, and in public service. But I want to be clear, I understand how this decision shakes Virginians’ faith in that commitment.”

For some, the apology isn’t enough. Several democrats who recently entered the 2020 presidential race have weighed in: Sen. Elizabeth Warren (Mass.), Sen. Kamala D. Harris (Calif.), Sen. Kirsten Gillibrand (N.Y.), Sen. Cory Booker (N.J.), and Julián Castro (former mayor of San Antonio) all called for Northam’s resignation. He has been in office about 13 months.

UPDATE: Governor Northam now says he did not appear in the photo, and he refuses to resign:

Discussion:

• What do you think Northam thought when he ran for office? Did he not remember the photo, or did he not think it was a big deal, or was he hoping that people wouldn’t find out? You have to wonder.

• Should Northam have done or said anything in addition to the apology to garner more support? Would it have made a difference in the public response?

• How do you interpret Northam changing position?

• Should Northam resign? Why or why not?

MSU Gets Another New Interim President

Michigan State University hired a second interim president. First, President Lou Anna Simon resigned after 13 years following criticism that she didn’t do enough to stop Dr. Larry Nassar from abusing girls. John Engler replaced her as interim president in 2018, but he, too, faced criticism for insensitivity to Nassar’s victims.

Most recently, Engler commented after a $425 million fund was approved for 332 current claimants and another $75 million was approved for additional victims. Engler said, “The people who got the $425 million are probably OK." Engler said he was thinking more about the potential additional victims who haven’t been part of the process yet. He made things worse when he said more:

"You’ve got people, they are hanging on and this has been … there are a lot of people who are touched by this, survivors who haven’t been in the spotlight. In some ways they have been able to deal with this better than the ones who’ve been in the spotlight who are still enjoying that moment at times, you know, the awards and recognition. And it’s ending. It’s almost done.”

People took great offense to his implication that the earlier claimants have “enjoyed the spotlight.” So now, MSU has a new interim president, Satish Udpa.

MSU image source.

Udpa image source.

Discussion:

• Try to see Engler’s point of view. What was he trying to convey with his comments?

• We might say that Engler’s comments lacked compassion. What else is problematic about his comments?

• What’s your view? Was forcing Engler’s resignation the right thing to do? Why or why not?

Marriott Breach Involved Passports

Although fewer people were affected by the Marriott data breach than originally expected, millions of passport numbers have been stolen. Marriott representatives have clarified that the breach happened at Starwood before the acquisition was completed. In its latest statement, Marriott confirmed that the following were stolen:

• There were approximately 8.6 million unique payment card numbers, all of which were encrypted

• There were approximately 5.25 million unique unencrypted passport numbers and approximately 20.3 million encrypted passport numbers.

Officials say it’s unlikely that someone could create a fake passport based on only a number. But the breach is worrying because passport numbers provide intelligence agencies with information about where people go, particularly when they cross borders. The U.S. hasn’t charged China with the breach, but experts say tactics are similar to those used in other breaches.

Marriott is offering new passports for guests whose documentation was used for fraudulent purposes.

Marriott image source. Passport image source.

Discussion:

• Analyze Marriott’s communication so far: the audience, objectives, organization, tone, and so on. What works and what could be improved?

• Compare the communication to how other companies handled a data breach.

• Should Marriott offer new passports to all affected guests—not just those whose documentation was used for fraud? Why or why not?

McKinsey PPT Slide Causes Problems

Back in 2006, Boeing hired management consultancy McKinsey to help the company launch its 787 Dreamliner despite rising titanium prices. According to a New York Times article, McKinsey evaluated a proposal for Boeing “to mine titanium in India through a foreign partnership financed by an influential Ukrainian oligarch.”

On a PowerPoint slide, the consultancy suggested that Boeing “respect traditional bureaucratic process including use of bribes.” Included on the slide were names of eight “key Indian officials.” As the article notes, “Nowhere in the slide did McKinsey advise that such a scheme would be illegal or unwise.”

McKinsey admitted authoring the report only after learning that the Times had a copy. Details are fuzzy, and McKinsey isn’t offering more explanation.

Discussion:

• What’s your view of McKinsey’s responsibility in this situation? Do you believe they encouraged illegal activity, were just doing the job of management consultant firm and considering cultural realities, or something else?

• The PPT slide seems to have implicated McKinsey. Should the consultants have been more careful about what was documented? Why or why not?

• What character issues may be at play in this situation?

• The NYT author wrote, “Nowhere in the slide…” I would say, “Nowhere on the slide…” Which is correct—or are both acceptable?

Facebook's Rules for Managing Political Speech

A New York Times article describes a complex rulebook to help employees decide whether to address political speech on the site. The decision process is daunting, and guidelines include extensive examples of content—text and visuals—that may indicate hate or inspire violence.

The author questions whether Facebook employees are making rational, consistent decisions:

The guidelines for identifying hate speech, a problem that has bedeviled Facebook, run to 200 jargon-filled, head-spinning pages. Moderators must sort a post into one of three “tiers” of severity. They must bear in mind lists like the six “designated dehumanizing comparisons,” among them comparing Jews to rats.

Others say Facebook has too much power because the company controls speech in international political situations. For example, before an election in Pakistan, during a 24-hour media blackout, Facebook may have been the go-to source. Before this time, Facebook distributed 40 pages of “political parties, expected trends, and guidelines” to its employees. But guidelines sometimes contradict each other, and Facebook relies of Google Translate, which may not be accurate or precise enough.

Cover image source.

Discussion:

• When Facebook faced criticism about sharing information with technology partners, company leaders responded in a blog post. If they were to do something similar in this case, what should they say to rebuild confidence in the site?

• Although the rules can be a “bit baffling,” as the author says, Facebook is trying to address other criticism about its response to hate and violence on the site. What, if anything, can the company do differently to accept accountability?

Juul Employees Can't Juul at Work

The e-cigarette company has decided to follow the law and prohibit its employees from Juuling at work. The law isn’t new: The California law against vaping in the workplace has been on the books since 2016.

A Wall Street Journal article describes vaping etiquette from the American Vaping Association:

There is etiquette for in-office vaping, says Gregory Conley, president of the American Vaping Association. Foremost: Don’t blow clouds. Take a puff and hold your breath for three to five seconds, and the vapor evaporates in your mouth. “If it’s 10 degrees outside and I want a single puff, I just take a puff and hold my breath” when indoors, he says. “Ninety-nine percent of people don’t care so long as they don’t see anything.”

Meanwhile, the U.S. Surgeon General just released a warning against vaping. Experts say e-cigarettes have toxic chemicals, and users are at higher risk for a heart attack. Studies indicate that teens who vape are more likely to smoke cigarettes later on.

Discussion:

• The situation is a confusing issue of integrity. Some might question why employees were allowed to Juul, against the 2016 law. What’s your view of their decision?

• Juul is popular among young people even though the product is intended for people 21-and-over. To what extent is that the company’s responsibility?

Facebook Defends Sharing Information with Partners

Facebook is responding to new criticism about how it shares users’ information. A New York Times report identified a few examples of how Facebook allowed other technology companies to access private information:

Facebook allowed Microsoft’s Bing search engine to see the names of virtually all Facebook users’ friends without consent, the records show, and gave Netflix and Spotify the ability to read Facebook users’ private messages.

The social network permitted Amazon to obtain users’ names and contact information through their friends, and it let Yahoo view streams of friends’ posts as recently as this summer, despite public statements that it had stopped that type of sharing years earlier.

In a blog post, Facebook’s Director of Developer Platforms and Programs, Konstantinos Papamiltiadis, explained the reason for about 150 companies to have such access:

Today, we’re facing questions about whether Facebook gave large tech companies access to people’s information and, if so, why we did this.

To put it simply, this work was about helping people do two things. First, people could access their Facebook accounts or specific Facebook features on devices and platforms built by other companies like Apple, Amazon, Blackberry and Yahoo. These are known as integration partners. Second, people could have more social experiences—like seeing recommendations from their Facebook friends—on other popular apps and websites, like Netflix, The New York Times, Pandora and Spotify.

To be clear: none of these partnerships or features gave companies access to information without people’s permission, nor did they violate our 2012 settlement with the FTC.

The post goes on to explain the value to Facebook users of having their information shared.

Discussion:

• Read the full blog post. How well does the company defend its practices? Analyze the audience, communication objectives, writing style, and so on.

• How well does the company accept responsibility for sharing information?

• What else, if anything, should Facebook do to rebuild its image? The company has faced increased criticism and regulatory interest in the past few months.

NIH Changes Funding Practices

Following criticism in May, the National Institutes of Health (NIH) ended a study aiming to understand whether drinking alcohol every day could have health benefits. The study received $67 million in funding from six alcohol companies.

Now, the NIH is sharpening its guidelines for how employees of its eight institutes seek donations. The NIH director said, “We have to do everything we can to ensure the integrity of the NIH grants process and the quality of our research is above reproach, which means worrying about conflicts.” In addition, the NIH is planning for consistency across its institutes.

Some wonder why the NIH wasn’t already practicing due diligence and preventing conflicts of interest. Critics say the NIH isn’t doing enough and should accept private funding only for general use—not for specific research.

Discussion:

• What’s your view of the NIH’s practices? How is this situation an issue of integrity for the organization?

• The NIH’s credibility has taken a hit. What can the leaders do to recover the organization’s image?

Trump Undocumented Workers Speak Out

Employees of Trump National Golf Club in Bedminster, NJ, say they are undocumented in the U.S. and express disappointment at the president’s comments about immigrants. For five years, Victorina Morales has worked at the property, and her responsibilities sometimes include providing housekeeping services for the president’s private quarters.

Although the president may not have known about their status, Morales and a former employee say several within the housekeeping, maintenance, and landscaping crews don’t have papers to work legally in the U.S.

Morales said her status is known at the club, and she was hurt when she heard the president comparing recent immigrants to criminals:

“We are tired of the abuse, the insults, the way he talks about us when he knows that we are here helping him make money. We sweat it out to attend to his every need and have to put up with his humiliation.”

During the presidential campaign, President Trump said of his businesses, “We didn’t have one illegal immigrant on the job.”

Image source.

Discussion:

• What risks does Morales take by speaking out? Why might she forge ahead and not be deterred by those risks?

• How is this a potential issue of integrity for President Trump?

• Should President Trump be held accountable for undocumented workers on his properties? Why or why not?

Marriott Security Breach

Personal information of more than 500,00 guests was stolen from the Starwood reservation system. Exposed data includes payment card information, and critics say the company could have avoided the breach years ago. In 2015, Starwood announced a small breach, which cybersecurity experts say should have inspired the company to do more at the time. Starwood argues it didn’t realize the risk, and Marriott leaders argue that they had not yet acquired Starwood. On Friday, Marriott shares were down 5.6%.

A notice at the top of the Marriott homepage reads, “For more information on the Starwood guest reservation database security incident, please click here.” Although the breach was from a Starwood database, the media is consistently reporting the news as “Marriott.” That link and a press release on the website both go to legal sounding statements, although they do provide FAQs at the bottom.

Lawsuits have already been filed against the company for failing to protect users’ data.

Discussion:

• Is the company taking adequate responsibility for the breach? Explain your response.

• How can Marriott respond to this crisis and protect the brand at this point?

• How can the website information be improved? Consider the primary and second audiences, communication objectives, organization, writing style and so on.

Dolce and Gabanna Cancels Show and Apologizes

Italian fashion designer Dolce and Gabanna cancelled a major show scheduled in Shanghai and apologized to the Chinese people for an offensive ad and comments on social media. The ad showed Chinese-French model Estelle Chen, in separate videos, eating pizza and pasta with chopsticks. With stereotypical music in the background, the ads seem to mock the woman and a Chinese pronunciation of the company’s name.

After criticism on Weibo, the company made the situation far worse. Co-founder Stefano Gabbana posted negative comments, at right, about China and its people on Instagram, and then denied the comments, claiming his account had been hacked.

Later, Dolce and Gabbana leaders tried to recover by posting a statement on the company’s Instagram account: "We are very sorry for any distress caused by these unauthorized posts. We have nothing but respect for China and the people of China." Another post read, "Our dream was to bring to Shanghai a tribute event dedicated to China which tells our history and vision. It was not simply a fashion show, but something that we created especially with love and passion for China and all the people around the world who loves Dolce & Gabbana.”

They also posted an apology video.

Discussion:

• What’s your view of the ad series? Can you see how people would think they are offensive? Why or why not?

• How well did Dolce and Gabanna eventually recover from the incident? Analyze the apology video.

• Which leadership character dimensions are illustrated by this situation?

GM Lays Off 15,000 Employees

General Motors will lay off about 15,000 employees and close five U.S. factories. About 2,250 employees accepted a voluntary buyout, which could include six months of pay. But that number wasn’t enough for GM to reach it goals.

About 8,000 salaried employees, or 15% of the workforce, will leave the company. Engineers and designers are hardest hit, and the company will hire more technology workers to focus on electric and hybrid vehicles. The move reflects shifts in consumer preferences against small cars, such as Cruze compact and Volt, in favor of SUVs and trucks. Gas prices are low, so people want larger, more convenient vehicles.

In a statement, GM outlined its plans for the future, and Chairman and CEO Mary Barra explained the decision:

“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future. We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”

President Trump said he spoke with Barra and was “very tough.” He also said he’s “not happy” about the plant closings and is hoping for the company to rebuild in Ohio.

Discussion:

• Evaluate GM’s statement. What business writing principles are followed, and what could be improved?

• What else, if anything, should GM do to maintain brand image during the cuts? For example, Barra could agree to media interviews. Should she? Why or why not?

Hotel Cleaning Caught on Video

Housekeepers in 14 hotels in China were caught on video using a towel or sponge to clean multiple surfaces, including toilets, showers, and glassware. Hotels included W Hotel Beijing, Bulgari Hotel in Shanghai, InterContinental Beijing Sanlitun, Hilton Beijing, Beijing JW Marriott Hotel, Peninsula Beijing, and Shangri-La Hotel Beijing.

So far, five of the hotels have issued statements. The Peninsula wrote, “The hotel will still take measures to strengthen the implementation of the standard procedures for room service staff to ensure all aspects meet the established standards of the Peninsula.” Park Hyatt in Beijing referred to the situation as an isolated occurrence.

China's Ministry of Culture and Tourism ordered hotels to review their practices and called for an investigation.

Discussion:

• What oversight should hotels have for room cleaning?

• Analyze Park Hyatt's message: audience, communication objectives, writing style, and so on. How well does the company address the situation?

• This isn’t the first time such as report has become public about luxury hotels. Do you think these cases are isolated, as the Park Hyatt claims, or systemic?

Negative Reports About Facebook

Two recent articles cite trouble at Facebook. The first is a New York Times story titled, “Delay, Deny and Deflect: How Facebook’s Leaders Fought Through Crisis.” The report is a damning criticism of how the company, and particularly Mark Zuckerberg and Sheryl Sandberg, handled recent situations:

But as evidence accumulated that Facebook’s power could also be exploited to disrupt elections, broadcast viral propaganda and inspire deadly campaigns of hate around the globe, Mr. Zuckerberg and Ms. Sandberg stumbled. Bent on growth, the pair ignored warning signs and then sought to conceal them from public view. At critical moments over the last three years, they were distracted by personal projects, and passed off security and policy decisions to subordinates, according to current and former executives.

The article accuses the company’s response to Russia’s meddling in U.S. elections, data privacy issues, and hate speech and propaganda. The article describes aggressive lobbying and efforts to conceal Russia’s infiltration of the network.

The second article, a Wall Street Journal report, describes declining employee morale at Facebook. Criticism about the company and the declining stock price are getting difficult for employees to stomach. According to the Journal article, employees are questioning the company’s growth strategy and are concerned by a lack of innovation. Employees are also less optimistic about the company’s future. One year ago, 87% employees said they were optimistic; today, that number is 52%.

The Times article reports that Zuckerberg has been asked whether it’s time for new company leadership, and he has repeatedly said that he will not step aside.

Zuckerberg image source.

Discussion:

• What’s your view of the situation at Facebook? Is the Times article on target, too harsh, too lenient, or something else?

• One possibility is that the company is experiencing a natural progression—a growth cycle that most companies experience. What do you think?

• What are the value and potential downsides of employee surveys?

Nissan Chairman Is Arrested

Nissan’s chairman was arrested for financial misconduct, including under-reporting his income in securities fillings. Carlos Ghosn may have been engaging in improprieties for years.

The news came as a surprise to many. Ghosn is a popular business figure, credited with turning around Nissan, Renault, and Mitsubishi by forming an alliance and directing cost-cutting and layoffs. According to a Wall Street Journal article, the shock is felt particularly at Renault; a union leader described the reaction as “a feeling of stupefaction and a lot of anger.”

The French government has a 15% state in Renault, so President Emmanuel Macron also weighed in: “As a shareholder, the French state will remain extremely vigilant regarding the stability of the alliance.” At this point, officials are still trying to sort out the news and determine leadership going forward.

Nissan CEO Hiroto Saikawa delivered a news statement, translated in English on Bloomberg. The company also issued this matter-of-fact statement.

Nissan image source. Ghosn image source.

Discussion:

• Why would a successful business executive engage in financial misconduct? What leadership character dimensions are lacking?

• How does financial impropriety go on for years in a situation like this? Who should be accountable for the misconduct?

• Assess Saikawa’s news statement. What works well to improve brand image, and what could be improved?

Announcing a Restaurant Closing

Danny Meyer gives us a great model of how to write a bad-news message. In his announcement about closing the restaurant North End Grill, Meyer demonstrates communicating with humility and transparency.

Meyer describes the pain involved in closing a restaurant, including the effect on employees. He admits to mistakes and relates this closing to Tabla, which closed four years ago. He didn’t need to remind us, but he does so humbly, and as a lesson to learn from failure.

Meyer’s message is encouragement for compassionate, transparent communication planning:

All too often in our industry, a padlock on the front door might be the very first notice employees, landlords, and suppliers receive that a restaurant will be closing. 

He also teaches us that leading requires courage:

[W]hen reality dictates closing, we have a choice: to do so in secrecy and shame, or instead, with dignity, integrity, and pride.

Restaurant image source. Meyer image source.

Discussion:

• Analyze Meyer’s full statement: audience, objectives, writing style, organization, etc. What works well, and what could be improved?

• In what ways does Meyer’s statement illustrate vulnerability as a leadership strength?

Controversy About Wildfires

As wildfires rage in California, let’s look at controversy about the cause. So far, fires have taken 31 lives, and more than 200 people are missing. Governor Jerry Brown requested federal aid.

In a tweet, President Trump blamed California for poor forest management. This drew a harsh response from the California Professional Firefighters association, which called the statement “dangerously wrong.” In a statement, the group defended state actions, firefighters, and victims:

“The president’s message attacking California and threatening to withhold aid to the victims of the cataclysmic fires is Ill-informed, ill-timed and demeaning to those who are suffering as well as the men and women on the front lines.”

Later, the president tweeted a more compassionate message:

More than 4,000 are fighting the Camp and Woolsey Fires in California that have burned over 170,000 acres. Our hearts are with those fighting the fires, the 52,000 who have evacuated, and the families of the 11 who have died. The destruction is catastrophic. God Bless them all.

Discussion:

• Analyze the California Professional Firefighters statement: audience, objectives, writing style, organization, etc. How well does the group defend its position?

• How well does the statement illustrate principles of persuasion: logical argument, emotional appeal, and credibility?

• Which leadership character dimensions does this situation illustrate?

Timing Bad-News Messages

This week, we saw two examples of timing communications to improve image.

President Trump waited until after the important mid-term elections to fire Attorney General Jeff Sessions. President Trump wasn’t happy with Sessions since he recused himself from the Russia election interference investigation back in 2017.

Although Sessions did technically “resign,” he did so at the President’s request. Sessions confirms this in his resignation letter, which begins, “At your request, I am submitting my resignation.”

Facebook capitalized on a busy news day to announce bad news: a report that the company didn’t do enough to stop anti-Rohingya propaganda on its platform. The site may have contributed to escalated violence in Myanmar. Skimm writers joked, “What to say when the midterms are dominating the headlines… Time to drop some bad news. Right, Facebook?”

FB image source.

Discussion:

• Why didn’t President Trump fire Jeff Sessions after he recused himself? Why is the timing better now, more than a year later?

• What other examples have you seen of companies taking advantage of news cycles?

• The benefits of reporting bad news on a slow news day may be obvious. What are the risks?

Elementary Teachers Dress as Border Wall

For Halloween, elementary school teachers in Middleton, Idaho, wore costumes portraying parts of a border wall and depicting stereotypes of Mexicans. Pictures showing them smiling as a group with the slogan, “Make America Great Again,” were posted to a Facebook page.

The teachers dressed up during school hours, and parents alerted the school administrators to the problem. In addition to their complaints, 12 local advocacy organizations wrote a letter to the superintendent, including this statement:

“The intent or misjudgments of the individuals involved does not undo the trauma experienced by students, families and communities. The impact on these students does not stay only with them but has lasting effects beyond the school or classroom. We believe the school and classrooms have now become hostile environments that are not conducive to the education of the students.”

In response, the school district posted a statement on its website:

The events that took place at Heights Elementary School in Middleton on Halloween are disturbing and inappropriate. The teachers involved, as well as school administrative personnel, and the Middleton School District showed extremely poor judgment.

The messages conveyed are the antithesis of the beliefs and values of the Idaho Education Association and its dedicated members throughout the state.

The IEA and the Middleton Education Association stand ready, willing, and able to assist the district in providing diversity and cultural competency training for Middleton School District employees. As troubling as the situation is, it does provide us with an opportunity for education and growth so that people can be made more aware of how hurtful these kinds of insensitive behaviors can be.

Discussion:

• What’s your view of the teachers’ costumes: harmless fun, insensitive, hurtful, or something else?

• Assess the district’s statement. Who is the audience and what are the communication objectives? How well does it achieve its purpose.

• Write a better apology. How can you demonstrate humility and address concerns more specifically? Include consequences: what should the district do as a result?

Reversal at Maryland

The University of Maryland has reversed its position on keeping football coach DJ Durkin. At first, Durkin was reinstated after a damning report about player abuse which resulted in the death of a student, Jordan McNair. Critics say the University’s Board of Regents overstepped in disallowing Loh to terminate the coach.

Now, pressure from students, players, the McNair family, and politicians left the University with no choice but to fire Coach Durkin. In a letter, President Loh explained the decision, including his previous concerns about Durkin’s return.

McNair’s father made a statement, including a message to President Loh when asked:

“The same thing I’ve always said to Dr. Loh. I’ve always commended Dr. Loh for having a level of integrity and doing the right thing even since he first initially came to the hospital, and secondly, when he came to us as a family to apologize and to take full moral and legal responsible for the tragic events that happened.”

In the meantime, Maryland players were involved in an altercation. It seems as though this situation has divided the team as well.

UPDATE: James T. Brady, chairman of the University System of Maryland’s Board of Regents, resigned last week, and President Loh is winning back his power. A Chronicle article notes that Loh won the “battle waged in the court of public opinion,” and whether he will leave the University as planned is now unclear. In a statement, Brady explained his decision and, using the word “proud” three times, cites board accomplishments during his tenure.

Discussion:

• How is this situation an issue of integrity?

• The regents had planned to terminate President Loh. Should they reverse this position too?

• What should the University do now to repair its image?

• We have heard nothing that I found from the regents (except their confidence in Coach Durkin). Should they communicate something now? What could they say that could help instead of hurt the situation?