Brené Brown on "Who You Are at Work"

An interview with Brené Brown, a researcher at University of Houston, reminds us to bring our whole selves to work. According to Brown, we need all of ourselves to solve problems.

Brown encourages people to create a culture where people can lose their armor, which she considers most damaging to relationships. When people protect themselves rather than allow themselves to be vulnerable, they miss opportunities for connection.

Brown defines vulnerability as “the willingness to be ‘all in’ even when you know it can mean failing and hurting.” She says vulnerability means risking emotional exposure when you don’t know the outcome.

The interview reminds me of a Deloitte study that identified ways employees “cover” themselves to fit in. For example, people change their appearance, avoid discussions that would reveal political and other affiliations, and avoid associating with people who are like them.

Like Brown’s conclusion that leadership is key to enabling employees to be themselves at work, 53% of respondents in the Deloitte study said their leaders expected employees to cover.

Discussion:

• How is “armor,” as Brown defines it, similar to ways of “covering” identified in the Deloitte study?

• What are the benefits of protecting ourselves in this way? What are the negative consequences?

• When have you avoided vulnerability? In retrospect, how did the decision turn out? Would you do something differently today?

• What can leaders do to create a culture when people can be themselves at work?

Climate Change Report

If you weren’t already concerned about climate change, a new UN report may change your thinking. The extraordinary report, written by dozens of scientists from 40 countries who reviewed more than 6,000 studies, reveals a bleak picture for the Earth’s future. The introduction, titled “Chapter 1: Framing and Context” is 61 pages, and the rest of the report is a long, deep dive into the data.

The most significant conclusion is that global warming must be limited quickly. The authors write with great urgency that the Earth’s temperature has already increased and that further increases will create heatwaves, eliminate ice in the Arctic Ocean, melt massive ice sheets, devastate coral reefs, and produce intense storms. Further, global warming will result in more poor people: "Climate change is projected to be a poverty multiplier, which means that its impacts make the poor poorer and increase the total number of people living in poverty.”

The authors suggest limiting the planet's warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-Industrial Revolution temperatures to avoid catastrophic results. They also warn that this requires "rapid, far-reaching, and unprecedented changes in all aspects of society."

A New York Times article, “Dire Climate Warning Lands With a Thud on Trump’s Desk,” describes President Trump’s disinterest in the report findings. Similarly, a text search on today’s Wall Street Journal home page finds an article about Exxon but nothing about the UN report.

Discussion:

• Analyze the report audience, objectives, writing style, and organization. Which business writing principles are followed?

• What improvements would you make to improve report readability?

• What are your views about climate change? What evidence leads to your conclusions?

Amazon Loses Favor After Announcing $15 Wage

Amazon received good press for announcing employees would earn a minimum of $15/hour. But today’s news tells a different story.

Although the hourly wage will increase, Amazon is cutting bonuses and stock options, and employees fear it will cost them thousands of dollars in total compensation. The stock options, according to employees’ online posts, gave them a sense of company ownership. Some proposed walking out on Black Friday, the biggest shopping day of the year. Amazon had also granted bonuses for attendance and productivity, called Variable Compensation Plan, or V.C.P.

In response, company leaders said they would look at employees’ total compensation to make sure no one would be worse off after the changes. A spokesperson also released this statement:

"The significant increase in hourly cash wages more than compensates for the phase out of incentive pay and [restrictive stock units]. We can confirm that all hourly Operations and Customer Service employees will see an increase in their total compensation as a result of this announcement. In addition, because it's no longer incentive-based, the compensation will be more immediate and predictable."

Box image source. Cart image source.

Discussion:

• This is quite possibly a miscommunication or, more to the point, poor communication from Amazon officials to employees. How could the company have done a better job?

• How well does the statement address the criticism? What else should the company communicate at this point?

• How is this an issue of integrity for the company?

Facebook Policy Executive Sat Behind Kavanaugh

Joel Kaplan, Facebook’s vice president for global public policy, sat behind his friend, Brett Kavanaugh, during the charged hearings to determine whether he would win support as the next Supreme Court justice. Because of his position at Facebook, employees questioned his loyalties and whether it was appropriate for him to be so visible during the judge’s testimony about whether he sexually assaulted a woman as a teenager.

His appearance was a “surprise” to employees, and hundreds wrote about their concerns on Facebook’s intranet site. One employee wrote, perhaps expressing the sentiment of Facebook’s liberal employees:

“Let’s assume for a minute that our VP of Policy understands how senate hearings work. His seat choice was intentional, knowing full well that journalists would identify every public figure appearing behind Kavanaugh. He knew that this would cause outrage internally, but he knew that he couldn’t get fired for it. This was a protest against our culture, and a slap in the face to his fellow employees.”

Kaplan defended participating, referring to their 20-year friendship, and CEO Mark Zuckerberg said he didn’t violate any company policies by attending, although he did say he would not have made the same decision. Employees wanted to hear from COO Sheryl Sanberg about Ford’s accusations, and she was not forthcoming, according to a Times article. But she did comment on Kaplan’s attendance:

“As a woman and someone who cares so deeply about how women are treated, the Kavanaugh issue is deeply upsetting to me. I’ve talked to Joel about why I think it was a mistake for him to attend given his role in the company.”

Cover photo source.

Discussion:

• Read additional Facebook messages in the Times article. How would you summarize employees’ concerns?

• What’s your view of Kaplan’s attendance? Consider the “optics” in addition to company policy.

• Some might say that Kaplan was being authentic by sitting behind his friend. Do you agree with this view? Why or why not?

• Which character dimensions are illustrated by this story?

Crisis at Sloan Kettering

Memorial Sloan Kettering (MSK) Cancer Center’s chief executive, Craig Thompson, has resigned from two boards, Merck and Charles River Laboratories, following investigations of conflicts of interest. Thompson issued a statement about his decision to resign:

“I have taken feedback from our staff and faculty seriously and intend to lead by example. I believe this is the right decision for Memorial Sloan Kettering and will allow me to redouble my focus on MSK priorities: quality patient care, faculty, scientists and staff.”

Sloan Kettering’s chief medical officer, Jose Baselga, was accused of not reporting millions of dollars he received from pharmaceutical companies for his research articles. Baselga previously resigned from Memorial Sloan Kettering as well as Bristol-Myers Squibb, where he served on the board. As one former patient wrote, failing to disclose payments gives “the appearance of influence is troubling. It highlights ineffective oversight, with the potential to cast a shadow on the center’s other excellent doctors.”

When the story first broke, Memorial Sloan Kettering leadership wrote a letter stating, “MSK and our faculty need to do a better job.”

Thompson photo source.

Discussion:

• Analyze the MSK letter. Who is the audience, and what are the communication objectives? How do you assess the organization and writing style?

• Should Thompson also resign his chief executive position at MSK? Why or why not?

• How well does MSK leadership take responsibility for the problems? How is this an issue of integrity for MSK?

Amazon Increases Pay to $15/Hour

Starting November 1, Amazon will pay 250,000 and 100,000 seasonal workers at least $15 an hour. A blog post quoted CEO Jeff Bezos:

“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead. We’re excited about this change and encourage our competitors and other large employers to join us.”

The post include a video, “Amazon associates react to $15 minimum wage announcement”:

The company also they would work to increase the federal minimum wage, which, as an Amazon SVP says, could improve from the “current rate $7.25 [which] was set nearly a decade ago,”

One analyst predicted that, after taxes, Amazon’s operating profit will take a hit of 1 of 2%. But the move is being well received. For example, Senator Bernie Sanders, a former critic, complimented the decision:

“What Mr. Bezos has done today is not only enormously important for Amazon’s hundreds of thousands of employees, it could well be a shot heard around the world. I urge corporate leaders around the country to follow Mr. Bezos’s lead.”

Discussion:

• Assess Amazon’s blog post and video. How well does the company use the news to improve the company’s image?

• What’s your view of the move: the right thing to do, a bad financial decision, or something else?
  

British Rail Company Apologies

Great Western Railway is tripping over itself apologizing for thousands of canceled and late trains. Apologies by British train organizations are so common that a web designer created a site, https://www.sorryfortheinconvenience.co.uk, to chronicle statements, now totaling more than 420,000.

A look at the railway’s Twitter feed shows two failures but no apology. Maybe the organization is catching on: over-apologizing isn’t a good strategy. At some point, customers just want problems fixed.

Discussion:

• How can a leader know when the organization is apologizing too much?

• Take a look at the GWR Twitter feed. How would you advise the organization to improve its communications?

• What leadership character dimensions is GWR demonstrating and failing to demonstrate with its apologies?

Kavanaugh and Ford Demonstrate Vulnerability

During the Senate Judiciary Committee hearings, Judge Brett Kavanaugh and Dr. Christine Blasey Ford both displayed emotions for the media to analyze and compare.

A New York Times article reports, “Kavanaugh's show of both fury and tears was a cry from the flip side of the #MeToo movement.” We saw an angrier Kavanaugh than during his Fox News interview, perhaps a reaction to President Trump’s disappointment in his mild manner.

A CNN article recalls a 2005 interview when President Trump said, "When I see a man cry I view it as a weakness. I don't like seeing men cry." The article also concludes,

“Judgments on Kavanaugh's emotional performance will likely depend on each viewer's perspective, but he demonstrated the wider latitude that men in politics have today to show their emotions. However, were he a woman, he would likely be dismissed as overwrought, even hysterical, which helps explain why the witness who testified before him, Christine Blasey Ford, was far more composed and restrained.”

The Times article describes Ford’s presentation: “[H]er voice cracking but her composure intact.” In another Times piece, “The ‘Tight Rope’ of Testifying While Female,” the writer confirms, “She teared up in her testimony — her voice cracking — but she did not openly cry or break down.” That article also cites her asking for caffeine and telling a joke: “These are all codes for ‘she is displaying proper expectations of femininity.’”

Gender experts and other reporters also noted the contrast. Referring to Kavanaugh’s tears, Alicia Menendez of PBS said, “If he were a woman, we’d be questioning if she were unhinged.”

Both demonstrated vulnerability and risked emotional exposure. Despite the public backlash, Ford came forward to tell her story. And Kavanaugh responded by displaying emotions often viewed negatively for a man. However, overall, reports of his anger seem to overshadow the tears.

Kavanaugh image. Ford image source.

Discussion:

• What’s your view of the emotional displays during the testimony? How do you think gender differences factored into how each was judged?

• Have you ever cried at work? Which emotions are seen as appropriate, and which are discouraged? Should we be more open to both anger and sadness in the workplace?

WhatsApp Message Causes Dramatic Infibeam Stock Price Drop

Infibeam, an India e-commerce company, lost more than 70% of its stock value after a WhatsApp message questioned the company’s governance. The message was reported to be sent by an analyst at Equirus Securities months ago, but it only recently surfaced and went viral. Equirus denies involvement.

An India Times article explains the message:

“The note said the company gave an interest-free and unsecured loan to a subsidiary with negative net assets to be repaid over eight years. The note also mentioned that the company has re-classified its co-founder, who continues to hold a large chunk of shares, as non-promoter.”

An Infibeam spokesperson responded to the controversy:

“The company has given interest-free unsecured loans to its wholly owned subsidiary NSI Infinium Global since inception. These loans are short-term loans which are repayable on demand and have been utilised by NSI solely for its business and operations. Further, there has been no change in the promoters from the list of promoters identified and disclosed by the company info in the offer documents for its IPO.”

Discussion:

• How can people do a better job at distinguishing between real reports and rumors?

• How well did Infibeam respond to the news? What effect do you expect on the company stock on Monday?
  
  
  

Are U.S. Campuses Coddling Students?

A new book, The Coddling of the American Mind: How Good Intentions and Bad Ideas Are Setting Up a Generation for Failure, explores the impact of political discourse on U.S. college campuses. The book is an expansion of an Atlantic article in which Jonathan Haidt, one of the book authors, disputed “trigger warnings” and other anxiety-avoiding tactics.

The authors are clear that harassment and discrimination are wrong, and that students who experience them should report the incidents. But, according to a Bloomberg article, we may lose the ability to communicate with each other:

“They worry about the What worries him is the looseness of the term ‘bias’ and the idea that students are urged not to work out their concern with the alleged perpetrator but to report it directly to the authorities.”

Also concerning the authors is the high percentage of liberal faculty members. A recent study shows that 39% of the most elite liberal arts schools have no Republican professors. The Bloomberg writer notes the possible negative effect:

"Critics argue that the atmosphere of liberal orthodoxy increases the risk that graduates will enter the workforce without knowing how to confront political viewpoints different from their own.”

Cover image source.

Discussion:

• What’s your view? Are we coddling students, or do they need more protection and “safe spaces”?

• How would you describe the differences among discrimination, harassment, and bias?

• How might the issue of protecting people from bias contribute to sexual harassment in the workplace? How can we help people sort out problems at an interpersonal level?

Facebook Breach Announced Today

Millions of Facebook users inadvertently gave hackers access to their accounts, and the company is trying to fix the problem. Hackers found a way in through the “View As” feature, which people use to see how their profile looks to others.

The company learned of the issue this week and today held a conference call with reporters. To the extent to which Facebook could manage the story, it’s the perfect day for such a report, when the country is focused on whether lawmakers will support Brett Kavanaugh’s nomination to the Supreme Court despite allegations of sexual assault.

On the conference call, CEO Mark Zuckerberg stressed that fighting hackers is an ongoing concern:

"This is a really serious security issue. This underscores there are just constant attacks from people who are trying to take over accounts and steal information from our community. This is going to be an ongoing effort." 

Facebook’s VP of product development posted a “Security Update” statement on Facebook’s news site, including this reassurance:

“People’s privacy and security is incredibly important, and we’re sorry this happened. It’s why we’ve taken immediate action to secure these accounts and let users know what happened.”

Cover image source. Spotlight image source.

Discussion:

• Do you agree that Facebook timed the announcement when a bigger story would likely overshadow the news? Or am I just cynical?

• Assess the Security Update as a persuasive message. Describe the tone and organizational strategy. How well does the statement achieve its objectives?

• How well does the company take responsibility for what happened?

Nike Addresses Kaepernick on Earnings Call

On a quarterly earnings call, Nike CEO Mark Parker addressed head on the new ad campaign with former NFL player Colin Kaepernick. Following strong first-quarter earnings and revenue growth, Parker expressed confidence in Nike’s sponsorship agreement, particularly related to social media engagement:

“How we look at it is how do we connect and engage in a way that’s relevant and inspiring to the consumers that we’re here to serve. Our brand strength ... is a key dimension that contributes to the ongoing momentum that we’re building across the Nike portfolio.”

About an ad campaign that also features athletes Serena Williams and Lebron James, Parker said,

“These are actually very inspiring athletes, and again we feel like that campaign has delivered on that message in a way that’s really connected with people around the world.”

But the stock did fall in after-hours trading after the earnings report. Analysts say investors expected more than 10% revenue growth, and they note this is the first quarter since a sexual harassment scandal hit the company.

Stock image source.

Discussion:

• The company executives tout the campaign results on social media. How much do these results matter compared to the earnings report?

• Maybe this is another example of how quarterly reports aren’t the best measure of company performance. Should we be looking longer term? Why or why not?

Papa Johns Rebranding

Papa John’s will lose the apostrophe, signaling a distancing from its founder and owner, John Schnatter. An AdAge article chronicles issues with Schnatter, starting with his blaming the NFL’s handling of players “taking a knee” and ending with his taking out an ad in a Louisville, Kentucky, newspaper, shown here. The ad reads, “The Board wants to silence me” and points to his own website, savepapajohns.com.

The final straw was when Schnatter used the “n” word and made other questionable racial comments on a conference call. Soon after, Schnatter was removed from the board of directors.

With the slogan, “Better Ingredients. Better Pizza,” the company hopes to divert attention from Schnatter back to the pizza.

Discussion:

• What’s your view of the revised company name? To what extent will the change achieve the company’s objectives?

• Take a look at Schnatter’s website. The AdAge article says, “Who’s to say whether it’s delusional . . . “ What do you think? What does Schnatter hope to achieve, and how well does the site achieve his objectives?

Google CEO: No Political Bias

Google CEO Sundar Pichai wrote an email to staff with a clear message: Google does not have a political bias in search results. Pichai is responding to President Trump’s allegations as well as his own employees’ concerns about suppressing conservative news.

In one part of the email, he writes,

“Recent news stories reference an internal email to suggest that we would compromise the integrity of our Search results for a political end. This is absolutely false. We do not bias our products to favor any political agenda. The trust our users place in us is our greatest asset and we must always protect it. If any Googler ever undermines that trust, we will hold them accountable.”

Pichai may also be defending the results of an internal email chain in which employees discussed ideas for including information in search results. Here we see some of the internal debate:

“Can we launch an ephemeral experience that includes Highlights, up-to-date info from the US State Dept, DHS, links to donate to ACLU, etc?” the email added.

Several officials responded favorably to the overall idea. “We’re absolutely in…Anything you need,” one wrote.

But a public-affairs executive wrote: “Very much in favor of Google stepping up, but just have a few questions on this,” including “how partisan we want to be on this.”

“To the extent of my knowledge, we’d be breaching precedent if we only gave Highlights access to organizations that support a certain view of the world in a time of political conflict,” the public-affairs executive said. “Is that accurate? If so, would we be willing to open access to highlights to [organizations] that…actually support the ban?”

Pichai image source.

Discussion:

• Read Pichai’s entire email to staff. Who is the audience and what are Pichai’s communication objectives? How well does he meet them? What organizational structure does Pichai use?

• How well does Pichai take and assign accountability about Google’s search debate?

• What’s your view of the internal email discussion? What, if anything, surprises you about this discussion? It was, of course, intended to stay internal.

Uber Rebranding

In the past, Uber had been criticized for questionable business practices and ethics, and the company is still trying a turnaround. They hired Dara Khosrowshahi in August 2017 and distanced themselves from founder Travis Kalanick.

Now Uber has a new branding initiative. The marketing campaign, "Doors Are Always Opening,” is credited to 72andSunny, a Los Angeles firm.

A video shows significant events in people’s lives—giving birth, meeting your partner’s parents—and how people rely on Uber.

Paulie Dery, Uber's executive creative director, describes the objectives as follows:

"What we are really saying is opportunity happens everywhere if you are willing to move. You know what happens when you sit still? Nothing. And I think that is a great Uber story. We've always had a certain amount of hustle and belief that movement creates something better for everybody, and that's really at the center of the idea."

The company also has a new logo: simply the company name, which insiders hope will become a verb, like Google.

Discussion:

• Uber’s previous campaign was called “Moving Forward” to distinguish the company’s controversial past with its future. How well do you think this new campaign will accomplish its objectives?

• What’s your view of the new logo, simply the company name?

Students Protest Required Presentations

Middle and high school students want to ban in-class presentations because some students experience speech anxiety. These students argue that speeches put undue pressure on teens, particularly those with anxiety disorders. One student said, “Nobody should be forced to do something that makes them uncomfortable.” This is quite a statement.

I agree that students with severe anxiety may be at risk and certainly need additional support. But most people can easily overcome speech anxiety. A couple of years ago, I developed a web-based tool with strategies to use before, during, and after a speech:

URL: speaking.amynewman.com
User: email
Password: Statler65

Employers will not likely tolerate employees who aren’t comfortable presenting in front of others. School is the time to practice and develop these skills.

Discussion:

• What’s your experience with giving speeches in middle and high school?

• What have you done in your life to feel more comfortable giving presentations?

• What’s your view of the students’ position?

Amazon Employees Take Bribes to Delete Negative Reviews

Amazon is investigating its own employees for taking money through intermediaries to help sellers. Sellers report being offered and receiving confidential data, such as search key words, to help boost sales on the site.

The trouble seems most serious among Chinese Amazon employees, who work for lower salaries and may have more incentive to supplement their wages. A Wall Street Journal article describes the process:

Brokers search for Amazon employees on Chinese messaging platform WeChat and send messages asking them if they would like to provide these services in exchange for cash, according to brokers and sellers who say they have been approached by brokers.

The going rate for having an Amazon employee delete negative reviews is about $300 per review, according to people familiar with the practice. Brokers usually demand a five-review minimum, meaning that sellers typically must pay at least $1,500 for the service.

An Amazon spokesperson defended the company’s practices: “We hold our employees to a high ethical standard and anyone in violation of our Code faces discipline, including termination and potential legal and criminal penalties,” and “We have zero tolerance for abuse of our systems, and if we find bad actors who have engaged in this behavior, we will take swift action against them.”

With more than two million independent sellers on the site, competition can be fierce. Sellers have been known to encourage fake reviews and repeated clicks for higher rankings.

Discussion:

• Which principles of ethical decision making come into play in this situation? In other words, how do we know that the employees’ behavior is unethical?

• We might say that Amazon employees in China are underpaid, and that’s why they are taking money on the side. Does this justify their behavior? Why or why not?

Accusation and Defense of Brett Kavanaugh

On the final days of interviews with Brett Kavanaugh to become a Supreme Court Justice, a woman has accused him of sexual assault when they were teenagers, more than 30 years ago. Professor Christine Blasey Ford wanted to stay anonymous, but she is now known as the one who claims Kavanaugh assaulted her at a Georgetown Preparatory School party when she was 15 and Kavanaugh was 17. She revealed her allegation in a letter to her congressman. Dr. Blasey believes that she would have been raped if Kavanaugh weren’t drunk. Both will testify on Monday.

For leadership and business communication students, let’s look at the arguments on both sides. Here is some of the evidence presented so far:

• Twenty-four women who attended private school with Dr. Blasey supported her in a signed letter “to attest to her honesty, integrity, and intelligence.” (For some letter-writing history, read the defense of Professor Avital Ronell and the subsequent explanation.)

• Dr. Blasey passed a polygraph test, but critics say the test is imperfect for proving truthfulness.

• Although Dr. Blasey doesn’t remember some details (for example, whose house they were at), trauma experts say this is typical for people who experience such a trauma.

• Kavanaugh denies the incident: “I categorically and unequivocally deny this allegation. I did not do this back in high school or at any time.”

• Mark Judge, Kavanaugh’s roommate at the time, said, “I have no memory of this alleged incident." Dr. Blasey claims he was in the room during the incident. Judge also said, "It's just absolutely nuts. I never saw Brett act that way.” He also said they were raised in Catholic homes that didn’t tolerate such behavior and that Kavanaugh was “brilliant” and not “into anything crazy or illegal.” Judge wrote a book, Wasted: Tales of a GenX Drunk, about his time at Georgetown Prep.

• Kavanaugh’s high school yearbook has become public and is “raising eyebrows,” as MSNBC and CNN both report. The yearbook includes captions such as “Do these guys beat their wives?” and “100 kegs or bust,” indicating a party culture. Mark Judge’s yearbook page, shown here, includes a quote: “Certain women should be struck regularly, like gongs.”

The FBI and/or congressional investigation is a nearly impossible task. Does this evidence help?

Cover image source. Yearbook image source.

Discussion:

• Which of these evidence points do you consider most and lease relevant to the question of whether Kavanaugh sexually assaulted Dr. Blasey?

• What biases might you bring to the analysis? Think about your own assumptions and how they might affect your interpretation.

• What advice would you give to members of Senate Judiciary Committee as they decide what happened and, ultimately, whether Kavanaugh should be elected to the highest court position.

Serena Williams Controversy

Serena Williams lost the U.S. Open women’s final tennis match and criticized umpire Carlos Ramos. A Washington Post article delves into “whether sexism, conscious or not, skews the playing field.”

The writer offers the following evidence:

• Ramos still has support from the International Tennis Federation.

• London Telegraph published data showing that, for the past 20 years, men received code violation fines almost three times as often as women. The writer acknowledges that men’s games are longer, but she says this doesn’t account for the entire difference.

• An Australian newspaper criticized for what some consider a racist image of Williams boldly republished it on the cover with the headline, “Welcome to the PC World.”

The writer offers more evidence on both sides of the issue and suggests changes within the association.

Williams image source.

Discussion:

• Read more about the situation if you are unfamiliar. What could Williams and Ramos each have done differently?

• What’s your view overall? Was Williams treated unfairly? Did she react appropriately?

• How do you assess Williams’ response after the incident? How well did she recover from the so-called “outburst”?

• What leadership character dimensions are illustrated by this situation?

JD.com CEO Arrested for Sexual Misconduct

Richard Liu, founder and CEO of Chinese e-commerce company JD.com, was arrested in Minneapolis for sexual misconduct. Because of his high profile and billionaire status, Liu’s arrest was the most popular topic of conversation on social media in China last week.

Two people describe a case involving a student at the University of Minnesota, part of a joint doctoral program in business administration with Tsinghua University. Liu was released without bail and has returned to China. He denies any wrongdoing, and JD.com posted a statement in Chinese, translated by a student:

Sunday, Sep. 2, 2018

We have noticed that there are rumors and false accusations about Mr. Qiangdong Liu on Weibo (Chinese social media site, similar to Twitter) recently. We hereby declare as follows: Liu was falsely accused while in the US on a business trip, but the police investigators found no misconduct and that he would continue his journey as planned. The company will take necessary legal action against false reporting or rumors.

Monday, Sep. 3, 2018

So far as we know, Mr. Liu was arrested on Aug. 31, 2018 in Minneapolis for investigation. He was released from custody shortly. There was no accusation or bail required for the release. Mr. Liu has returned to China and will resume his business activities as originally planned.

In addition to the stock price drop and embarrassment this causes Liu and JD.com, the company may have a governance problem. Liu is required to attend board meetings in person (although he may be able to join via video or telephone). Without him, as an 80% voting rights owner, the board may be unable to make decisions for the business.

A New York Times article focuses on China’s fascination with self-made billionaires as celebrities. Online discussions featured photos of Jack Ma laughing at Liu’s trouble.

Liu image source.

Discussion:

• I don’t see a statement or press release from Liu or from the company in English. Should Liu or the company publish something at this point on the website? Why or why not?

• What should the company do now to manage through this crisis?

• How does the Chinese reaction compare to situations in the United States? Can you think of a similar situation when Americans were fascinated by a leader’s hardship?