Robinhood's Breach Notice

In a blog post, Robinhood announced a “data security incident.” Business communication students will notice several examples of downplaying the situation, including giving numbers of people affected more significantly (310) but no numbers for the total.

Language seems intentionally complex, for example, “The unauthorized party socially engineered a customer support employee by phone and obtained access to certain customer support systems.” In other words, someone called a Robinhood employee and impersonated another employee. The employee fell for this deceit without seeking proof.

Robinhood seems to take no responsibility and identifies no plans for future action to prevent a similar “incident.” The chief security officer provides template text: “As a Safety First company, we owe it to our customers to be transparent and act with integrity. Following a diligent review, putting the entire Robinhood community on notice of this incident now is the right thing to do.”

Mark Zuckerberg Addresses Controversy

After weeks of The Wall Street Journal’s posting internal documents criticizing Facebook, CEO Mark Zuckerberg is finally speaking out. The whistleblower, a former Facebook product manager, released the documents, and now the company is participating in U.S. senate hearings to defend its practices. In a Facebook post and in his testimony via video on Capital Hill, Zuckerberg addresses several issues plaguing the company.

First, in his post, which is a copy of an email he sent to employees, Zuckerberg addresses the hours of outages that made Facebook, Instagram, What’sapp, and Messenger inaccessible around the world. Second, he addresses the testimony and defends the company’s policies and practices. Claiming that their work is “mischaracterized,” Zuckerberg denies that teens are negatively affected by their apps as the reports have portrayed.

The post is a study in persuasive communication. He uses a mix of emotional appeal and credibility. Including his hopes for his own children, Zuckerberg presents himself as a concerned, yet confident, parent, reassuring us that all is OK. He cites research and reporting—and transparency—yet the reports uncovered have not been public, and previous testimony contradicts some of the conclusions drawn in internal documents.

Zuckerberg also uses logical arguments, for example, that more teenaged girls who are struggling find the apps helpful. He neglects saying that any percentage find them harmful. With a cursory mention—”It is incredibly sad to think of a young person in a moment of distress who, instead of being comforted, has their experience made worse”—Zuckerberg tries to isolate one case, a classic crisis communication strategy, as though that might be the only one. However, the title of one Facebook report page reads, “1 in 5 teens say that Instagram makes them feel worse about themselves, with UK girls the most negative.” Clearly, he is downplaying his own data.

Mark Zuckerberg 

I wanted to share a note I wrote to everyone at our company.

---

Hey everyone: it's been quite a week, and I wanted to share some thoughts with all of you.

First, the SEV that took down all our services yesterday was the worst outage we've had in years. We've spent the past 24 hours debriefing how we can strengthen our systems against this kind of failure. This was also a reminder of how much our work matters to people. The deeper concern with an outage like this isn't how many people switch to competitive services or how much money we lose, but what it means for the people who rely on our services to communicate with loved ones, run their businesses, or support their communities.

Second, now that today's testimony is over, I wanted to reflect on the public debate we're in. I'm sure many of you have found the recent coverage hard to read because it just doesn't reflect the company we know. We care deeply about issues like safety, well-being and mental health. It's difficult to see coverage that misrepresents our work and our motives. At the most basic level, I think most of us just don't recognize the false picture of the company that is being painted.

Many of the claims don't make any sense. If we wanted to ignore research, why would we create an industry-leading research program to understand these important issues in the first place? If we didn't care about fighting harmful content, then why would we employ so many more people dedicated to this than any other company in our space -- even ones larger than us? If we wanted to hide our results, why would we have established an industry-leading standard for transparency and reporting on what we're doing? And if social media were as responsible for polarizing society as some people claim, then why are we seeing polarization increase in the US while it stays flat or declines in many countries with just as heavy use of social media around the world?

At the heart of these accusations is this idea that we prioritize profit over safety and well-being. That's just not true. For example, one move that has been called into question is when we introduced the Meaningful Social Interactions change to News Feed. This change showed fewer viral videos and more content from friends and family -- which we did knowing it would mean people spent less time on Facebook, but that research suggested it was the right thing for people's well-being. Is that something a company focused on profits over people would do?

The argument that we deliberately push content that makes people angry for profit is deeply illogical. We make money from ads, and advertisers consistently tell us they don't want their ads next to harmful or angry content. And I don't know any tech company that sets out to build products that make people angry or depressed. The moral, business and product incentives all point in the opposite direction.

But of everything published, I'm particularly focused on the questions raised about our work with kids. I've spent a lot of time reflecting on the kinds of experiences I want my kids and others to have online, and it's very important to me that everything we build is safe and good for kids.

The reality is that young people use technology. Think about how many school-age kids have phones. Rather than ignoring this, technology companies should build experiences that meet their needs while also keeping them safe. We're deeply committed to doing industry-leading work in this area. A good example of this work is Messenger Kids, which is widely recognized as better and safer than alternatives.

We've also worked on bringing this kind of age-appropriate experience with parental controls for Instagram too. But given all the questions about whether this would actually be better for kids, we've paused that project to take more time to engage with experts and make sure anything we do would be helpful.

Like many of you, I found it difficult to read the mischaracterization of the research into how Instagram affects young people. As we wrote in our Newsroom post explaining this: "The research actually demonstrated that many teens we heard from feel that using Instagram helps them when they are struggling with the kinds of hard moments and issues teenagers have always faced. In fact, in 11 of 12 areas on the slide referenced by the Journal -- including serious areas like loneliness, anxiety, sadness and eating issues -- more teenage girls who said they struggled with that issue also said Instagram made those difficult times better rather than worse."

But when it comes to young people's health or well-being, every negative experience matters. It is incredibly sad to think of a young person in a moment of distress who, instead of being comforted, has their experience made worse. We have worked for years on industry-leading efforts to help people in these moments and I'm proud of the work we've done. We constantly use our research to improve this work further.

Similar to balancing other social issues, I don't believe private companies should make all of the decisions on their own. That's why we have advocated for updated internet regulations for several years now. I have testified in Congress multiple times and asked them to update these regulations. I've written op-eds outlining the areas of regulation we think are most important related to elections, harmful content, privacy, and competition.

We're committed to doing the best work we can, but at some level the right body to assess tradeoffs between social equities is our democratically elected Congress. For example, what is the right age for teens to be able to use internet services? How should internet services verify people's ages? And how should companies balance teens' privacy while giving parents visibility into their activity?

If we're going to have an informed conversation about the effects of social media on young people, it's important to start with a full picture. We're committed to doing more research ourselves and making more research publicly available.

That said, I'm worried about the incentives that are being set here. We have an industry-leading research program so that we can identify important issues and work on them. It's disheartening to see that work taken out of context and used to construct a false narrative that we don't care. If we attack organizations making an effort to study their impact on the world, we're effectively sending the message that it's safer not to look at all, in case you find something that could be held against you. That's the conclusion other companies seem to have reached, and I think that leads to a place that would be far worse for society. Even though it might be easier for us to follow that path, we're going to keep doing research because it's the right thing to do.

I know it's frustrating to see the good work we do get mischaracterized, especially for those of you who are making important contributions across safety, integrity, research and product. But I believe that over the long term if we keep trying to do what's right and delivering experiences that improve people's lives, it will be better for our community and our business. I've asked leaders across the company to do deep dives on our work across many areas over the next few days so you can see everything that we're doing to get there.

When I reflect on our work, I think about the real impact we have on the world -- the people who can now stay in touch with their loved ones, create opportunities to support themselves, and find community. This is why billions of people love our products. I'm proud of everything we do to keep building the best social products in the world and grateful to all of you for the work you do here every day.

Image source.

Corporate Vaccine Messages

Business communication students can analyze vaccine messages to compare how organizations adjust for the context and audience. Following are a few examples:

Fox News

Google

Citi

Delta

The medium companies choose is also interesting to compare.

The Society for Human Resource Management offers templates for companies—one about requiring vaccines and another about optional vaccines. How do company messages compare to these templates?

Image source.

Lands’ End Bad-News Message

Lands' End.PNG

So many products are delayed these days. In an email to a customer, Lands’ End acknowledged further delays and blamed the issue on labor shortages and high demand. On a flight I took recently, the pilot also mentioned staffing issues (causing us to sit on the plane for a hour waiting for a gate to clear).

I like the transparency. We all know about worker shortages since the pandemic, and it seems logical to name the problem as it is. In normal times, we might see this as a company’s excuse, but the problem is so systemic that no one company can be blamed.

I also appreciate Lands’ End’s usual conversational style. Although I wish the customer were given a timeframe, at least the message is easy to understand.

Medical Journals Urge Climate Response

Climate.PNG

The editors of 220 medical journals wrote to inspire climate change action. In an open letter, the authors cite “catastrophic” health results of a degrading environment, particularly affecting ”countries and communities that have contributed least to the problem and are least able to mitigate the harms.”

The letter, below, is a good example of persuasive writing. We see a mix of emotional appeals, logical arguments, and credibility to encourage world leaders to do more. However, the writing doesn’t meet standards for organizing business messages. Business communication students could restructure the writing to make the organization more explicit, improve readability, and surface main points.

The UN General Assembly in September, 2021, will bring countries together at a critical time for marshalling collective action to tackle the global environmental crisis. They will meet again at the biodiversity summit in Kunming, China, and the UN Climate Change Conference of the Parties (COP26) in Glasgow, UK. Ahead of these pivotal meetings, we—the editors of health journals worldwide—call for urgent action to keep average global temperature increases below 1·5°C, halt the destruction of nature, and protect health.

Health is already being harmed by global temperature increases and the destruction of the natural world, a state of affairs health professionals have been bringing attention to for decades.1 The science is unequivocal; a global increase of 1·5°C above the pre-industrial average and the continued loss of biodiversity risk catastrophic harm to health that will be impossible to reverse.2, 3 Despite the world's necessary preoccupation with COVID-19, we cannot wait for the pandemic to pass to rapidly reduce emissions.

Reflecting the severity of the moment, this Comment appears in health journals across the world. We are united in recognising that only fundamental and equitable changes to societies will reverse our current trajectory.

The risks to health of increases above 1·5°C are now well established.2 Indeed, no temperature rise is “safe”. In the past 20 years, heat-related mortality among people older than 65 years has increased by more than 50%.4 Higher temperatures have brought increased dehydration and renal function loss, dermatological malignancies, tropical infections, adverse mental health outcomes, pregnancy complications, allergies, and cardiovascular and pulmonary morbidity and mortality.5, 6 Harms disproportionately affect the most vulnerable, including children, older populations, ethnic minorities, poorer communities, and those with underlying health problems.2, 4

Global heating is also contributing to the decline in global yield potential for major crops, falling by 1·8–5·6% since 1981; this, together with the effects of extreme weather and soil depletion, is hampering efforts to reduce undernutrition.4 Thriving ecosystems are essential to human health, and the widespread destruction of nature, including habitats and species, is eroding water and food security and increasing the chance of pandemics.3, 7, 8

The consequences of the environmental crisis fall disproportionately on those countries and communities that have contributed least to the problem and are least able to mitigate the harms. Yet no country, no matter how wealthy, can shield itself from these impacts. Allowing the consequences to fall disproportionately on the most vulnerable will breed more conflict, food insecurity, forced displacement, and zoonotic disease—with severe implications for all countries and communities. As with the COVID-19 pandemic, we are globally as strong as our weakest member.

Rises above 1·5°C increase the chance of reaching tipping points in natural systems that could lock the world into an acutely unstable state. This would critically impair our ability to mitigate harms and to prevent catastrophic, runaway environmental change.9, 10

Encouragingly, many governments, financial institutions, and businesses are setting targets to reach net-zero emissions, including targets for 2030. The cost of renewable energy is dropping rapidly. Many countries are aiming to protect at least 30% of the world's land and oceans by 2030.11

These promises are not enough. Targets are easy to set and hard to achieve. They are yet to be matched with credible short-term and longer-term plans to accelerate cleaner technologies and transform societies. Emissions reduction plans do not adequately incorporate health considerations.12 Concern is growing that temperature rises above 1·5°C are beginning to be seen as inevitable, or even acceptable, to powerful members of the global community.13 Relatedly, current strategies for reducing emissions to net zero by the middle of the 21st century implausibly assume that the world will acquire great capabilities to remove greenhouse gases from the atmosphere.14, 15

This insufficient action means that temperature increases are likely to be well in excess of 2°C,16 a catastrophic outcome for health and environmental stability. Crucially, the destruction of nature does not have parity of esteem with the climate element of the crisis, and every single global target to restore biodiversity loss by 2020 was missed.17 This is an overall environmental crisis.18

Health professionals are united with environmental scientists, businesses, and many others in rejecting that this outcome is inevitable. More can and must be done now—in Glasgow and Kunming—and in the immediate years that follow. We join health professionals worldwide who have already supported calls for rapid action.1, 19

Equity must be at the centre of the global response. Contributing a fair share to the global effort means that reduction commitments must account for the cumulative, historical contribution each country has made to emissions, as well as its current emissions and capacity to respond. Wealthier countries will have to cut emissions more quickly, making reductions by 2030 beyond those currently proposed20, 21 and reaching net-zero emissions before 2050. Similar targets and emergency action are needed for biodiversity loss and the wider destruction of the natural world.

To achieve these targets, governments must make fundamental changes to how our societies and economies are organised and how we live. The current strategy of encouraging markets to swap dirty for cleaner technologies is not enough. Governments must intervene to support the redesign of transport systems, cities, production and distribution of food, markets for financial investments, health systems, and much more. Global coordination is needed to ensure that the rush for cleaner technologies does not come at the cost of more environmental destruction and human exploitation.

Many governments met the threat of the COVID-19 pandemic with unprecedented funding. The environmental crisis demands a similar emergency response. Huge investment will be needed, beyond what is being considered or delivered anywhere in the world. But such investments will produce huge positive health and economic outcomes. These include high quality jobs, reduced air pollution, increased physical activity, and improved housing and diet. Better air quality alone would realise health benefits that easily offset the global costs of emissions reductions.22

These measures will also improve the social and economic determinants of health, the poor state of which may have made populations more vulnerable to the COVID-19 pandemic.23 But the changes cannot be achieved through a return to damaging austerity policies or the continuation of the large inequalities of wealth and power within and between countries.

In particular, countries that have disproportionately created the environmental crisis must do more to support low-income and middle-income countries to build cleaner, healthier, and more resilient societies. High-income countries must meet and go beyond their outstanding commitment to provide US$100 billion a year, making up for any shortfall in 2020 and increasing contributions to and beyond 2025. Funding must be equally split between mitigation and adaptation, including improving the resilience of health systems.

Financing should be through grants rather than loans, building local capabilities and truly empowering communities, and should come alongside forgiving large debts, which constrain the agency of so many low-income countries. Additional funding must be marshalled to compensate for inevitable loss and damage caused by the consequences of the environmental crisis.

As health professionals, we must do all we can to aid the transition to a sustainable, fairer, resilient, and healthier world. Alongside acting to reduce the harm from the environmental crisis, we should proactively contribute to global prevention of further damage and action on the root causes of the crisis. We must hold global leaders to account and continue to educate others about the health risks of the crisis. We must join in the work to achieve environmentally sustainable health systems before 2040, recognising that this will mean changing clinical practice. Health institutions have already divested more than $42 billion of assets from fossil fuels; others should join them.4

The greatest threat to global public health is the continued failure of world leaders to keep the global temperature rise below 1·5°C and to restore nature. Urgent, society-wide changes must be made and will lead to a fairer and healthier world. We, as editors of health journals, call for governments and other leaders to act, marking 2021 as the year that the world finally changes course.

FG serves on the executive committee for the UK Health Alliance on Climate Change and is a Trustee of the Eden Project. RS is the Chair of Patients Know Best, has stock in UnitedHealth Group, has done consultancy work for Oxford Pharmagenesis, and is chair of the Lancet Commission of the Value of Death. The other authors declare no competing interests.

This Comment is being published simultaneously in multiple journals (appendix). This full list of journals, as well as a further list of supporting journals, can also be found on the BMJ website.

Image source.

Robinhood's Strategy Faces Regulatory Questions

Ch 1 introduction image, Robinhood cards.PNG

Robinhood is in the news again for its marketing tactics. I featured the investment app in the 11th edition of Business Communication and Character for its aggressive communication, including gaming graphics, to lure young, inexperienced investors into trading.

When users open a Robinhood account, they receive a free share to get started. This requires a proxy statement to be delivered to the user, which costs small companies a lot of money—for very few purchased shares. New regulations may prevent companies like Robinhood from seeking reimbursement.

Users don’t get any great bargain. As a Wall Street Journal writer explains, “Customers have a 98% chance of receiving a share priced between $2.50 and $10.”

Robinhood has maintained its defense as it faces increased scrutiny. A spokesperson said, “Customers love our free-stock program, and we think it fits squarely into our mission to democratize finance for all.”

This situation is another example of how the company’s strategy benefits some but negatively impacts others. For that reason, the communication becomes an issue of character—failing to consider the effect of one’s actions.

Blame the Intern

HBOMax.PNG

HBOMax customers received an email with the subject, "Integration Test Email #1,” that obviously wasn’t intended for them. In a follow-up email, the company blamed an intern for the mistake.

Twitter responses poured it to support and empathize with the intern. Embarrassing stories ranged from sending emails to big groups to typos. As an intern, someone replaced all “parties” to “panties” in a 50-page legal document (dare I say “brief”?).

The best was when Monica Lewinsky weighed in.

Intern.PNG

Interns make mistakes; we all do. Facing the situation with humility—the ability to learn—is the best approach. The HBOMax situation could have been a lot worse, and fortunately, the public turned it around to focus on the shared experience we have all had.

Peloton Announces Recalls

Peloton Tread Plus Recall Picture_0.png

After resisting action despite consumer product warnings, Peloton has conceded and is recalling two models of its treadmills. One child died and more than 70 people were injured, so the Consumer Product Safety Commission (CPSC) recommended the recalls a month ago.

In the company statement, CEO John Foley admitted the mistake:

The decision to recall both products was the right thing to do for Peloton’s Members and their families. I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. We should have engaged more productively with them from the outset. For that, I apologize. Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members. We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product safety.

The CPSC said the decision came after “weeks of intense negotiation and effort.” Peloton will suffer financially: the company has stopped selling the treads and is offering a full refund of more than $4,000 for the products. But executives may have spared themselves and the brand some reputation damage if they had acted earlier.

Lincoln Project Statement

Frank Bruni is right his article, ”When You Don’t Have Trump to Hide Behind: There’s now space for other scandals. Witness the Lincoln Project.” I’ve been missing hearing about improprieties with the shadow of Trump for the past four years. Now trouble at the Lincoln Project, a political group started in 2018 by Republicans to prevent the re-election of the former president, has come to light.

Lincoln web.PNG

The issue raises questions of integrity. As the organization criticized the former president for his actions, 21 young men accused one founder of sexual harassment, while organization leaders knew of but did nothing about their complaints. In addition, questions linger about whether group leaders misused funds for personal gain.

The one leader accused of “grooming young men online” responded in a statement:

I am so disheartened and sad that I may have brought discomfort to anyone in what I thought at the time were mutually consensual discussions. In living a deeply closeted life, I allowed my pain to cause pain for others. For that I am truly sorry to these men and everyone and for letting so many people down.

The Lincoln Project also issued an official statement. One, dated January 30, isn’t available because of a broken link on the homepage. But another, dated February 14, is below:

The Lincoln Project has retained the law firm of Paul Hastings to investigate allegations of inappropriate behavior by John Weaver as part of a comprehensive review of our operations and culture. The review process is currently underway.

We are committed to creating a positive, diverse, and inclusive workplace environment at The Lincoln Project and inappropriate behavior by anyone associated with the organization will not be tolerated under any circumstances. We have already taken decisive action to address internal concerns. Additionally, we are releasing staff and former staff from the confidentiality provisions in their employment agreements to discuss their workplace environment. Based on the findings of this review we will take all necessary action to correct any issues or deficiencies that are identified.

Concurrently, we are also working with outside counsel and professional consultants to strengthen our corporate governance, finance and operational structure, human resources, and leadership to position The Lincoln Project to further maximize our impact and lean into our important mission advancing democracy.

The Lincoln Project was founded to combat political forces who seek to undermine our democracy. We revolutionized how political action committees operate and spent $81 million last cycle to create and place more than 300 advertisements, host national town halls, conduct voter outreach, and launch a podcast and streaming video network that engaged millions of voters. Eighty percent of our funds went to voter contact and content production. Our historic results speak for themselves.

Moving forward, we have important work ahead of us and we have created a nationwide movement of Americans who support our objectives.

In order to continue fulfilling our promise to our millions of supporters and contributors, we must address any and all internal organizational issues immediately and put in place a governance and diverse leadership structure that reflects our core values and ensures we will continue to attract the best talent available.

The Lincoln Project will continue producing and distributing our popular content and commentary while these reviews are being conducted and we are operating at full capacity.

The statement start is unfortunate and squirrely. Perhaps an apology might be more appropriate? As an apology, if this is the intent, the statement doesn’t work very well. Apologies admit specific wrongdoing, acknowledge the impact, and describe positive steps planning for the future. I don’t see that here.

Tokyo Olympics Head Resigns Over Sexist Comments

Mori.jpg

Former Japanese Prime Minister and president of the Tokyo Olympics made sexist comments about women and has resigned. This turmoil further complicates the games, which are already delayed because of COVID-19.

Yoshiro Mori said, “On boards with a lot of women, the board meetings take so much time,” “Women are competitive. When someone raises his or her hand and speaks, they probably think they should speak too. That is why they all end up making comments,” and “You have to regulate speaking time to some extent, or else we’ll never be able to finish.”

Several Japanese leaders spoke against Mori, and it’s interesting to compare their statements, particularly from companies that typically avoid public controversy. Few board members called for his resignation, but pressure was too great, including that from about 100 volunteers who quit.

In response to criticism, Mori said, “I didn’t mean it in that way, although it was said to be discrimination against women,” he said. “I have been praising women, promoting them to speak out more.” Mori also spoke of age discrimination. He is 83 years old. He said, “Old people are also doing well for the sake of Japan and the world. I feel extremely unhappy that older people are said to be bad. But it may go nowhere if I complain.”

An ABC writer calls the press conference “hastily prepared.” His apology wasn’t good enough to stave off the criticism, and he was forced to resign.

McKinsey Pays Settlement for Work with Purdue Pharma

Management consulting company McKinsey will pay almost $600 million to settle several lawsuits over its role in the opioid crisis, including offering marketing advice to Purdue Pharma. The largest settlement is for $573 million, which Massachusetts Attorney General Maura Healey describes in a video.

Healey’s presentation and delivery are interesting because she represents families and is speaking for 47 attorneys general in several U.S. states. Her anger is evident, but her audience is small: only 53 views one week after it’s posted, and at least three of those are me. What are the communication objectives? This will make a good class discussion.

McKinsey’s response is also interesting for students studying business communication and character. In an email to staff, Global Managing Partner Kevin Sneader describes “setting a higher standard.” Whereas the governors consider McKinsey’s actions unlawful, Sneader does not agree:

“Indeed, while our past work with opioid manufacturers was lawful and never intended to do harm, we have always held ourselves to a higher bar. We fell short of that bar. We did not adequately acknowledge the epidemic unfolding in our communities or the terrible impact of opioid misuse and addiction, and for that I am deeply sorry.”

The Massachusetts court filing explains the legal argument.

At some point in 2019, two McKinsey executives debated in emails “eliminating all our documents and emails.” These executives have been terminated. (See McKinsey communications.)

Amazon Announces New CEO

In a news release, Amazon announced that CEO and Founder Jeff Bezos will be stepping down, transitioning to role of Executive Chair of the board. He will be succeeded by Andy Jassy, currently CEO of Amazon Web Services. The change won’t take place until the third quarter of 2021.

Bezos.PNG

The news is announced in two short paragraphs within the company’s fourth quarter results:

Amazon is also announcing today that Jeff Bezos will transition to the role of Executive Chair in the third quarter of 2021 and Andy Jassy will become Chief Executive Officer at that time.

“Amazon is what it is because of invention. We do crazy things together and then make them normal. We pioneered customer reviews, 1-Click, personalized recommendations, Prime’s insanely-fast shipping, Just Walk Out shopping, the Climate Pledge, Kindle, Alexa, marketplace, infrastructure cloud computing, Career Choice, and much more,” said Jeff Bezos, Amazon founder and CEO. “If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive. When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention. Right now I see Amazon at its most inventive ever, making it an optimal time for this transition.”

In a longer message to employees, Bezos writes in the same conversational style, but he is more inspirational. The email is also posted on the Amazon public site.

The change is big news and garnered the lead Wall Street Journal story today with the headline, “Amazon CEO Change to Come Amid Regulatory Scrutiny.” The article cites Amazon’s 44% profit increase in the fourth quarter of 2000 as well as the challenges ahead:

“But Amazon also faces the biggest regulatory challenges in its history, with multiple federal investigations into its competitive practices and lawmakers drafting legislation that could force Amazon to restructure its business. Tension with regulators and lawmakers has directly embroiled Mr. Bezos, who was called to testify in front of Congress last summer for the first time.”

Bezos also was in the news recently because his ex-wife, MacKenzie Scott, donated $5.9 billion in the past year. A New York Times article contrasts her philanthropy with criticism about Bezos’s extraordinary wealth and lack of attention to environmental issues and employees’ concerns. A Vanity Fair author writes, “She got even [for his having a public affair] by doing what he does not: sharing his unbelievable, unconscionable, indescribable wealth with those he makes his money off of, i.e. everyone else in the world.”

Image source.

Twitter Announces Ban of President Trump

Two days after the riots on the U.S. Capitol, Twitter announced a “permanent suspension” of President Trump’s account after a temporary suspension.

Comparing Twitter and Facebook’s message, on January 7, about a temporary suspension, is a lesson in writing structure. Whereas Mark Zuckerberg used the indirect organizational plan, Twitter’s message states the news right up front. Zuckerberg starts with the rationale and announces the decision at the very end. Twitter starts with the decision, and then provides explanatory text, including sample tweets and the company’s assessment.

Another difference between these messages is the writer. The Twitter post is unsigned, whereas Zuckerberg signed the Facebook message himself. Additional rationale for the decision is posted on the Facebook site. Both approaches could work, and analyzing the communication is (almost) as interesting as the decisions themselves.

Random note: “Permanent suspension” sounds odd to me. A suspension is something temporary.


Company

Permanent suspension of @realDonaldTrump

By Twitter Inc.Friday, 8 January 2021

After close review of recent Tweets from the @realDonaldTrump account and the context around them — specifically how they are being received and interpreted on and off Twitter — we have permanently suspended the account due to the risk of further incitement of violence. 

In the context of horrific events this week, we made it clear on Wednesday that additional violations of the Twitter Rules would potentially result in this very course of action. Our public interest framework exists to enable the public to hear from elected officials and world leaders directly. It is built on a principle that the people have a right to hold power to account in the open. 

However, we made it clear going back years that these accounts are not above our rules entirely and cannot use Twitter to incite violence, among other things. We will continue to be transparent around our policies and their enforcement. 

The below is a comprehensive analysis of our policy enforcement approach in this case.

Overview

On January 8, 2021, President Donald J. Trump Tweeted:

“The 75,000,000 great American Patriots who voted for me, AMERICA FIRST, and MAKE AMERICA GREAT AGAIN, will have a GIANT VOICE long into the future. They will not be disrespected or treated unfairly in any way, shape or form!!!”

Shortly thereafter, the President Tweeted:

“To all of those who have asked, I will not be going to the Inauguration on January 20th.”

Due to the ongoing tensions in the United States, and an uptick in the global conversation in regards to the people who violently stormed the Capitol on January 6, 2021, these two Tweets must be read in the context of broader events in the country and the ways in which the President’s statements can be mobilized by different audiences, including to incite violence, as well as in the context of the pattern of behavior from this account in recent weeks. After assessing the language in these Tweets against our Glorification of Violence policy, we have determined that these Tweets are in violation of the Glorification of Violence Policy and the user @realDonaldTrump should be immediately permanently suspended from the service.

Assessment

We assessed the two Tweets referenced above under our Glorification of Violence policy, which aims to prevent the glorification of violence that could inspire others to replicate violent acts and determined that they were highly likely to encourage and inspire people to replicate the criminal acts that took place at the U.S. Capitol on January 6, 2021.

This determination is based on a number of factors, including:

  • President Trump’s statement that he will not be attending the Inauguration is being received by a number of his supporters as further confirmation that the election was not legitimate and is seen as him disavowing his previous claim made via two Tweets (1, 2) by his Deputy Chief of Staff, Dan Scavino, that there would be an “orderly transition” on January 20th.

  • The second Tweet may also serve as encouragement to those potentially considering violent acts that the Inauguration would be a “safe” target, as he will not be attending.

  • The use of the words “American Patriots” to describe some of his supporters is also being interpreted as support for those committing violent acts at the US Capitol.

  • The mention of his supporters having a “GIANT VOICE long into the future” and that “They will not be disrespected or treated unfairly in any way, shape or form!!!” is being interpreted as further indication that President Trump does not plan to facilitate an “orderly transition” and instead that he plans to continue to support, empower, and shield those who believe he won the election.

  • Plans for future armed protests have already begun proliferating on and off-Twitter, including a proposed secondary attack on the US Capitol and state capitol buildings on January 17, 2021.

As such, our determination is that the two Tweets above are likely to inspire others to replicate the violent acts that took place on January 6, 2021, and that there are multiple indicators that they are being received and understood as encouragement to do so.

University Assistant Coach Fired Over Disparaging Comments

Assistant coach of the Mocs football program at University of Tennessee at Chattanooga has been fired. Chris Malone posted a disparaging, racist, and sexist tweet about Stacey Abrams, who is credited for gaining democratic votes in the tight Georgia political races.

University Chancellor Steven Angel posted a video to explain the decision. He covers the basics of an apology but deserves credit for using video as a medium in addition to the athletics director’s and head coach’s written statements:

Mark Wharton – UTC Vice Chancellor & Directory of Athletics
"Last night, a totally inappropriate social media post by a member of our football staff was brought to my attention. The entire post was appalling. The sentiments in that post do not represent the values of our football program, our Athletics department or our University. With that said, effectively immediately, that individual is no longer a part of the program."

Rusty Wright – UTC Head Football Coach
"Our football program has a clear set of standards. Those standards include respecting others. It is a message our players hear daily. It is a standard I will not waver on. What was posted on social media by a member of my staff is unacceptable and not any part of what I stand for or what Chattanooga Football stands for. Life is bigger than football and as leaders of young men, we have to set that example, first and foremost. With that said, effectively immediately, that individual is no longer a part of my staff."

Comparing the three statements demonstrates what each leader focuses on and, perhaps, their emotional reactions to Malone’s post. This situation illustrates accountability and integrity, but I might want to see more authenticity and vulnerability. Do we know more about these leaders as a result of this situation?

Zuckerberg's Message About President Trump's Account

Facebook has decided that President Trump will no longer use its platform for his messages—at least for a while. The decision came after riots at the U.S. Capitol and after Twitter and Facebook suspended the president’s account. The tech companies said that the president violated its rules by inciting violence and/or making false claims about the election.

FB.jpg

YouTube blocked a video of President Trump expressing sympathy for the protestors and calling them “special.” The tech platforms had tried labeling posts, but the president’s false claims were still believed.

Some call this time an “inflection point": “Hey Mark Zuckerberg, @jack, @SusanWojcicki and @sundarpichai -- Donald Trump just incited a violent attack on American democracy. Is that FINALLY enough for you to act?!" At this point, Twitter has not yet permanently banned the president from tweeting.

Zuckerberg uses the indirect style for his post, with the main point in the very last sentence. He makes his argument first, and then we read the decision. It’s an interesting choice, which might not convey the courage that people would like to see.

Additional analysis and rationale for the decision are posted on the Facebook site.

Companies Leave Ad Agency Over Founder's Remarks

Richards 2.PNG

Several companies dropped ad agency Richards Group after the founder referred to a proposed Motel 6 ad as “too Black.” Stan Richards, the firm’s 87-year-old, white founder, also said the ad might alienate the chain’s “white supremacist constituents.” Although the agency created Motel 6’s slogan, “We’ll leave the lights on for you,” the company—along with Cracker Barrel, Home Depot and Keurig Dr Pepper—have ended the relationship. Another customer, The Salvation Army, said it were “deeply concerned” but “encouraged by the fact that Mr. Richards has made an apology.”

The founder made the comments during a Zoom meeting with more than 36 employees and referred to an ad with Black, latinx, and white motel guests. Richards apologized on another Zoom call, and he has been replaced as CEO by Glenn Dady, his planned successor. The company issued a statement on its website, including this quote from Richards:

“If this was a publicly held company, I’d be fired for the comments I made. But we’re not public, so I am firing myself. Our employees, first and foremost, deserve that.”

United Airlines’ Response to Passenger Death

United Airlines is doing damage control after a passenger flying from Orlando to Los Angeles was rushed to a hospital in New Orleans and died. The cause of death hasn’t yet been reported, but the airline confirmed that the passenger had Covid-19 symptoms.

Customer response is fierce, partly because the passenger’s wife told others that her husband had Covid, and partly because the airline continued to fly the plane with passengers. Like most airlines, United asks passengers about their symptoms before flying, but they do not verify.

UA.PNG

Communications are scant. I see nothing on United’s home page but found a news release dated December 16, two days after the passenger death, titled, “United and CDC Work Together on Contact Tracing Initiative for All International and Domestic Flights.” Recent tweets mention nothing about the situation, although one conveys the same message as the news release: “comprehensive, voluntary contract tracing.”

Some might feel that this is the least the airline can do in the situation.

Zuckerberg Testifies About 2012 Emails

FB Email.jpg

Mark Zuckerberg faced one particularly tense moment during the U.S. Congressional Antitrust Hearing. Rep. Jerry Nadler (D-NY) accused Facebook of antitrust activities in its acquisition of Instagram:

“Facebook, by its own admission ... saw Instagram as a threat that could potentially siphon business away from Facebook. So rather than compete with it, Facebook bought it. This is exactly the type of anti-competitive acquisition the antitrust laws were designed to prevent.”

Nadler’s conclusion is based on 2012 emails among Zuckerberg and his staff. In one email he wrote about Instagram:

“One way of looking at this is that what we’re really buying is time. Even if some new competitors springs up, buying Instagram, Path, Foursquare, etc now will give us a year or more to integrate their dynamics before anyone can get close to their scale again. Within that time, if we incorporate the social mechanics they were using, those new products won’t get much traction since we’ll already have their mechanics deployed at scale.”

Within an hour, Zuckerberg sent a second email, which some say proves his guilt:

“I didn’t mean to imply that we’d be buying them to prevent them from competing with us in any way.”

During the hearings, Zuckerberg defended the acquisition:

“I think the FTC had all of these documents ... and unanimously voted at the time not to challenge the acquisition. In hindsight, it probably looks obvious that Instagram would have reached the scale that it has today. But at the time, it was far from obvious.”

Discussion:

  • Research and describe relevant U.S. antitrust laws.

  • Read more about the 2012 emails and watch the hearings. How well did Zuckerberg defend the Instagram acquisition?

  • Did Zuckerberg’s follow-up email prove his guilt? Why or why not?





Tech CEOs Testify Before Congress

CEOs of four major tech companies—Google, Facebook, Apple, and Amazon—answered U.S. lawmakers’ questions about potential abuses of power. Themes from both Democrats and Republicans included relationships with third-parties, social media monitoring, advertising, search results, and other potential antitrust moves.

The CEOs joined by video and started with an opening statement. After that, no one was spared tough questions. Sundar Pichai was grilled about search engine results and Google’s business in China. Mark Zuckerberg defended its acquisition strategy. Jeff Bezos responded to accusations of using vendors’ data to build competitive products. And Tim Cook, who received the fewest questions, defended practices for developers, including fees charged through the App Store.

Discussion:

  • Watch the CEOs’ opening statements. Which were the strongest and weakest? On what criteria do you base your analysis?

  • Which leadership character dimensions do the CEOs exhibit or fail to exhibit.

  • Assess the CEOs’ delivery skills. What differences and similarities do you notice?

  • Now assess the technology set-up: lighting, background, camera angle, eye contact, and so on. What lessons do you learn for your own video meetings?

Should I Go Outside? A Visual

Researches created a visual to help people make informed decisions as communities re-open during the pandemic. The group has a consulting firm that helps organizations assess risk, and the visual is a representation of their work.

The COVID-19 Risk Index uses color coding to identify the likelihood that you’ll contract the virus during various activities, such as visiting the hospital, grocery shopping, or going to the dentist (which I did yesterday).

Covid Risk Index.PNG

Discussion:

  • How effective do you find the visual for helping you assess risk? On what criteria do you base your analysis?

  • What, if anything, is missing from the index? How could you adapt the tool for local regions?