Comms About Starbucks Unions and Store Closures

Three stores in my hometown, Ithaca, NY, have closed, about a year after they unionized, but Starbucks denies retaliation charges. Communications illustrate principles of persuasion.

The union filed a complaint citing a causal effect:

Ithaca was the first city in the United States with 100 percent unionized Starbucks locations, after the union won elections at all three locations by a combined total of 47-3 on April 8, 2022. On May 27, 2023, Ithaca will have no Starbucks locations due to the Employer’s heinous conduct in response to the union campaign.

In response, according to a local report, Starbucks cited “staffing, worker turnover, inability to retain management and worker absence” as the reasons for closing. When the Collegetown location closed, which was the first to unionize and the first to close, management cited maintenance issues. For the two additional stores, a company representative pointed to a quarterly results report that included this hollow, jargony explanation: “In support of our Reinvention Plan, and as part of our ongoing efforts to transform our store portfolio, we continue to open, close and evolve our stores as we assess, reposition and strengthen our store portfolio.”

The “optics,” as PR and crisis communicators say, are bad, and Starbucks may have an uphill climb to avoid a causal link between union efforts and store closings. Context also matters: a college town, Ithaca is a “very liberal” community, with the School of Industrial Labor Relations at Cornell University. Large corporations are not always appreciated locally.

Our local news came less than two weeks after Howard Schultz testified at a U.S. Senate hearing, “No Company Is Above the Law: The Need to End Illegal Union Busting at Starbucks.” His testimony began, as we might expect, with his humble upbringing, raised by a veteran father and without “adequate benefits.” He said he respects workers’ rights to unionize but describes unions as an impediment and criticizes their tactics. Most of his statement focuses on the good Starbucks has done in the world. Students will find a good mix of logical arguments, emotional appeals, and credibility throughout the statement.

Cornell students are taking action with a petition for Starbucks coffee to be removed on campus. The statement uses a few rhetorical devices that students can spot (e.g., anaphora, chiasmus, rhyming). They’ll also see emotional, accusatorial language typical for a student petition.

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Companies Reconsider Alcohol

Companies are finding alternatives to alcohol at social gatherings. The news raises issues of inclusion, and students who live on campus may find this topic relevant to their own experience.

U.K. organization Chartered Management Institute (CMI) is warning companies about the dangers of alcohol at work parties. The group’s recent survey of 1,000 managers shows that people often experience alcohol-fueled inappropriate behavior and harassment. Although work events are important for team building, particularly since the pandemic and the rise of remote work, 42% of respondents said parties “should be organised around activities that don't involve alcohol.” Companies that serve alcohol at events also open themselves up to liability because of drunk driving in addition to behavioral transgressions.

In addition to these issues, some employees don’t drink, and events designed around alcohol can be awkward. Some people choose not to drink, while others can’t because of medications, addictions, or other issues. Some people find it difficult to be around alcohol at all. What is management’s responsibility to these employees? If a company touts DEI values and belonging at work, then shouldn’t all employees be considered when planning parties?

A few companies have banned alcohol entirely. For example, Salesforce CEO Marc Benioff wrote to employees, “Alcohol is a drug, and having alcohol on a Salesforce premise is simply unfair to the Ohana [employees] who either do not want it or are intolerant of it.” He included drinking during work hours, which was more common at tech companies in the past.

Students may have a lot of opinions on this topic. Some universities are increasing “late-night programming,” alternatives for students looking for something to do without alcohol. How do students believe alcohol affects feelings of belonging on campus?

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Darden and Ruth’s Chris Acquisition Announcement

Darden’s announcement about buying the parent company of Ruth’s Chris Steak House is a typical acquisition press release. The news is good for Darden, prompting in a 10% stock jump. With unnecessarily large type and an exceedingly long first sentence, the statement describes the news and the value of the restaurant chain to the company. Standard quotes are included from both CEOs.

Because Darden is less well known, mainstream news articles include the more recognizable “Olive Garden” in headlines. For example, CNBC posts, “Olive Garden owner Darden Restaurants buys Ruth’s Chris Steak House for $715 million,” and The Wall Street Journal posts, “Olive Garden Owner to Buy Ruth’s Hospitality Group.” Yet, appropriately, Olive Garden’s website includes no announcement.

Ruth’s Chris’s website also includes no announcement, which makes sense because it’s a consumer-focused site and Darden is acquiring the entire company. The parent company, Ruth’s Hospitality Group, which includes only the one brand, includes a short statement that mirrors Darden’s.

Students can explore Ruth’s March 2023 deck as a related communication example. The deck follows principles we teach for creating decks, particularly balancing text and graphics and using clear, descriptive message titles (although they are not all parallel).

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Boarding School Admits Responsibility in Suicide

In a written statement one year after a student’s death by suicide, a New Jersey boarding school took responsibility for its role and committed to action. Some call the admission “rare,” which is true, and “courageous,” or taking action despite risks, and I disagree. The statement announces a settlement with Jack Reid’s parents, so its liability is already determined. In other words, administrators suffer few risks by confessing what is obvious.

Statements at the time of his death are typical. After a trigger warning pop-up, we see condolences, vigils, counseling, and other support, and a separate message to alumni.

The recent message, under a tab labeled “Anniversary Statement,” describes a clearer picture about the circumstances surrounding Reid’s death. He was bullied, the victim of a false rumor. News reports say he was called a rapist and was subjected to cruelty as a result.

Providing specific examples of how the school failed Reid and the community is rare in settlement messages and a big step forward. Although the statement isn’t signed by anyone in particular, which would have been a nice touch, the school identifies specific missed opportunities in the third and fourth paragraphs.

The statement is a good model. During the bullying, school officials lacked both accountability and compassion for what was happening to Reid, and they admit this failure. The school is already vulnerable, so why not allow leaders to admit vulnerability. The statement also expresses humility by identifying wrongdoings and the willingness to learn from mistakes.

But is it courageous? The specific examples may open opportunities for more criticism, which is a risk, but the lack of action at the time is fairly obvious. Despite Reid’s complaints, little or nothing was done. A lead bully was suspended but for unrelated reasons. Then, all students saw him return to school—back to Reid’s same dorm. Reid died by suicide that night.

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We experienced the tragic loss of Jack Reid on April 30, 2022 and through great sorrow, came together in meaningful ways as a community. The Special Oversight Committee of the Board of Trustees conducted a five-month review of the circumstances surrounding Jack’s death by suicide, and produced a summary of findings that were shared with the community in December 2022.

April 30, 2023

The Lawrenceville School and William and Elizabeth Reid, parents of Jack Reid, have reached an agreement in the wake of the tragic loss of Jack, a Fourth Former in Dickinson House, who died by suicide on April 30, 2022. Jack was universally regarded as an extremely kind and good-hearted young man, with an unwavering sense of social and civic responsibility and a bright future. We continue to mourn this loss.

As we seek to improve as a community, we have examined our role and take responsibility for what we could have done differently. Lawrenceville’s top priority is the physical, social, and emotional health, safety, and wellbeing of our students. We recognize that in Jack’s case, we fell tragically short of these expectations.

Jack was a victim of bullying and other forms of cruel behavior at Lawrenceville over the course of a year, including in the form of false rumors in person and online. When these behaviors were brought to the attention of the School, there were steps that the School should in hindsight have taken but did not, including the fact that the School did not make a public or private statement that it investigated and found rumors about Jack that were untrue. There also were circumstances in which the involvement of an adult would have made a difference.

In addition, on April 30, when the student who previously had been disciplined for bullying Jack was expelled for an unrelated violation of School rules, the School allowed him to return to Dickinson House largely unsupervised where students gathered, including some who said harsh words about Jack. School administrators did not notify or check on Jack. That night, Jack took his life, telling a friend that he could not go through this again. The School acknowledges that bullying and unkind behavior, and actions taken or not taken by the School, likely contributed to Jack’s death.

In the ensuing months, the School undertook an investigation of the circumstances leading up to Jack's death. Reflecting on those findings, and discussing them with the Reid family, we acknowledge that more should have been done to protect Jack.

Today's multi-faceted settlement with the Reids is aimed at honoring Jack, taking appropriate responsibility, and instituting meaningful changes that will support the School’s aspirations of becoming a model for anti-bullying and student mental health.

Over the past year, we have focused on four broad lines of action: training and educational programs, House culture and healthy socializing, the structure of our Dean of Students office and disciplinary protocols, and general health and wellness. In addition to efforts undertaken over the past 12 months, we are planning the following:

• Lawrenceville will contract with a specialist on school bullying to help construct policies and training to identify and effectively address the behaviors that lead to bullying and cyberbullying.

• Lawrenceville will contribute to the Jack Reid Foundation, a foundation established by the Reid family focused on education and prevention of bullying.

• Lawrenceville will hire a Dean of Campus Wellbeing. This will be an endowed position focused on the variety of student mental health issues educational institutions face.

• Lawrenceville faculty, professional staff, and students will participate in trainings and workshops to raise awareness and promote better understanding of adolescent mental health.

• Consulting with outside experts as needed, Lawrenceville will continue to review and make improvements to its emergency response protocols and crisis response plans; it similarly will review the safety training it provides to faculty and staff to assure it aligns with best practices.

• Lawrenceville will make a recurring gift to a mental health organization to support research and best practices for suicide prevention in school environments.

There is, of course, nothing that will ever make up for the tragedy of losing this promising and beloved young man. But it is the hope of all of us that Jack's memory is honored.

Example for Creating a Graphic from Text

A Business Insider article about U.S. airline rankings could make a useful class assignment. Each airline is presented in a separate paragraph with data, like this list about Southwest, the lowest ranked airline:

• Delays: 3.49/18

• Denied boardings: 2.95/15

• Price: 2.79/10

• Total score: 23.39/100

Students can get creative in how they visualize the data. With your instructions about what to include, they can create an at-a-glance chart or interactive graphic, maybe incorporating it into a short deck or slide for a defined audience.

Related topics could be how the ranking is determined and how customer communication factors into the list. The source, WalletHub, provides additional data to include. Unlike Business Insider, WalletHub drew charts, some of which are interactive, so data is more easily parsed, but I still find them cramped, like the one I posted here.

Tense NBA Player Interview About "Failure"

A reporter asked NBA Milwaukee Bucks pro Giannis Antetokounmpo whether he considers the season a “failure,” and his response offers lessons for business presentations. First, Antetokounmpo said the reporter asked the same “odd question” the previous year. He pushed back, asking the reporter whether he gets a promotion every year and drawing an analogy to Michael Jordan’s success: “Michael Jordan played 15 years, won six championships. The other nine years was a failure?” Antetokounmpo put the losses in greater context, as crisis communicators do.

Reactions to his response are generally positive, and some are debating whether the question, also asked of another player, was “fair.” Generally, public reaction approved of the question, although some viewed it as “unprofessional” or a “gotcha.” This raises a good discussion topic for class: what is an “unfair” question?

Students might think about questions for business presentations. What questions do they consider out of bounds for their own topics, and what would they avoid asking of others? At the same time, how can they prepare for the inevitable “unfair” question? For bad-news presentations, I have planted and encouraged a few from class. Although difficult to address, students gained confidence with more practice.

Antetokounmpo’s response is also emotional, and students will have opinions on what’s “appropriate” for business presentations. When I Googled to find his interview, this video appeared from 2019, titled, “Giannis Antetokounmpo EMOTIONAL SPEECH.”

Bed Bath & Beyond Communicates Bankruptcy

After years of closing stores, Bed Bath & Beyond communicated its decision to file for bankruptcy and what it means for customers. Messages follow typical bad-news announcements.

A short message on its website, shown here, thanks loyal customers. Perhaps the most important part is that stores are still open: the company needs to sell its remaining inventory.

An email to customers, below, conveys the news upfront, expresses appreciation, and answers questions customers might have. In three of the four bullets, we see “we expect,” communicating uncertainty that might be off-putting to customers with outstanding merchandise, gift cards, or orders. But bullets are clear (use those coupons fast!), and the separate section for registries make sense for worried brides and grooms and shower planners.

This is a sad ending for a former Fortune 500 company with 1,530 stores in 2019. Despite changing consumer preferences and other issues, critics say the company’s demise was caused, in part, by bad management decisions. But none of that matters now; the time for accountability is long gone. Instead, as they should, messages focus on the nostalgia that, for better or worse, kept Bed Bath afloat longer than some expected.

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To Our Valued Customers:

Earlier today, Bed Bath & Beyond Inc. filed for voluntary Chapter 11 protection.

We appreciate that our customers have trusted us through the most important milestones in their lives – from going to college, to getting married, to settling into a new home, to having a baby – and we wanted to reach out to you to explain what this means.

Our stores are open and serving customers. However, we have initiated a process to wind down operations.

What This Means for Our Customers

We wanted to make you aware that several of our programs and policies may be changing soon. As of today:

• We expect to process returns and exchanges in accordance with our usual policies until May 24, 2023, for items purchased prior to April 23, 2023

• We expect Gift Cards, Gift Certificates, and Loyalty Certificates will be accepted through May 8, 2023

• We will no longer accept coupons or Welcome Rewards+ discounts beginning April 26, 2023

• We expect all in-stock orders placed online both prior and after our bankruptcy filing to be fulfilled at this time

Registry
Your registry data is safe. You can still view your registry at this time. We expect to partner with an alternative platform where you will be able to transfer your data and complete your registry. We will provide details in the coming days.

We Are Here for You
For Frequently Asked Questions (FAQs) and additional information, please visit
https://restructuring.ra.kroll.com/bbby. Stakeholders with questions can email
BBBYInfo@ra.kroll.com or call at (833) 570-5355 or (646) 440-4806 if calling from outside the U.S. or Canada.

Thank you for your loyalty and support.

Bed Bath & Beyond | buybuy BABY

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Please do not reply to this email. Contact us here.
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Clearlink CEO Compliments Employee Who Sold Dog

During a town hall meeting, Clearlink CEO James Clarke expressed some curious ideas about employees’ work habits. In a video Vice referred to as “bizarre,” Clarke called remote employees back to the office, citing about 30 who hadn’t opened their laptops in a month. He also complimented an employee who sold his dog, presumably because he couldn’t care for it given his aggressive work schedule.

In addition to raising ethical questions about pets and work-life balance, the video could start a conversation with students about management’s responsibilities. If employees aren’t working, how is performance being tracked? Students also might consider whether Clarke’s talk is motivating. What’s the best way to inspire people to improve performance (assuming output is tracked in some objective, meaningful way, and managers are also held accountable)?

Without evidence, Clarke offered his opinions about caretakers, saying the data would support his point of view “in time”: “I do believe that only the rarest of full-time caregivers can also be productive and full-time employees at the same time.”

The Vice article says that Clarke noted “for unclear reasons, that he went to Oxford and Harvard,” adding, “two universities of which I'm an alum, but which were also founded and operated under the Judeo-Christian ethic.” Clarke attended Harvard Business School’s Owner/President Management program. Students can discuss whether attendance makes him a “alum” and whether including this point increased or decreased his credibility.

After the backlash, the company issued a statement:

James Clarke could not be more excited about the future of the company that he founded over 20 years ago, to which he returned in 2022 as CEO. We look forward to having these team members join us at our new world-class Global Headquarters in Draper, UT and appreciate the efforts of all of our committed team members–which includes those who work in office and those who will continue to work remotely–as we accomplish our best work together.

On its website, Clearlink boasts winning workplace awards, shown here. Would students want to work for this company?

Southwest Comms and Disruption

After technical issues that caused outsized delays in December, Southwest communicated little, trying to downplay more service disruptions yesterday. The first tweet, shown here, responded to a customer complaint. The second tweet accurately describes the issue as a “pause,” a term a New York Times article repeats, based on the time period. But the impact on passengers was significant: 1,820 flights (43% of the airline’s daily flights) were delayed. A silly gif with moving clip art appeared in the second message for no reason.

On the Southwest website, a short “Operational Update” tries to shift blame to a supplier: “a vendor-supplied firewall went down and connection to some operational data was unexpectedly lost.” Later, a “Travel Advisory” apologized to customers and gave options for no-fee rebooking and standing by—and a list of phone numbers for assistance.

Critics say Southwest’s “outdated” technology might cause more problems until a systemwide upgrade is possible. One communication strategy is to manage customer expectations in the meantime. Telling people to expect delays might ease some pain; of course, that could lead to fewer bookings, but that may likely happen anyway. Passengers will need to be reminded about other benefits of traveling with Southwest.

Fox News Takes Little Responsibility in Settlement Statement

Before the trial began, Fox News settled the Dominion Voting Systems defamation lawsuit and published the vaguest possible statement, below. In few words, the company made no apology and took little responsibility for making false statements about Dominion’s role in rigging machines during the 2020 election.

The settlement doesn’t require an apology or admission of making false claims, but a PBS NewsHour reporter said that the settlement amount, $787.5 million, might convey both. A large sum for a defamation case, the amount is just under half the ask, presumably so Fox can report that the company settled for “less than half.”

Fox’s statement refers to “this dispute with Dominion,” as if the two companies simply disagreed, and Fox wasn’t the one sued. The company also emphasizes the public value of the settlement: “instead of the acrimony of a divisive trial, [it] allows the country to move forward from these issues.” Maybe, but companies settle lawsuits for one primary reason: they believe they will lose.

By this evening, the Fox News website showed no sign of the decision—only the stories shown here. One short news story focused on the agreement and the judge’s positive comments about the attorneys. I found a statement at the bottom of the website under links for About, Media Relations, Press Releases. Overall, the company scarcely demonstrates accountability and humility—or learning from its mistakes. One interpretation of its “continued commitment to the highest journalistic standards” is that nothing will change.

Students might be interested in this story and can discuss whether Fox should have done anything differently from an ethical perspective or, perhaps, from a PR perspective.

Although far from perfect, one comparison is McKinsey’s statement about its involvement with Purdue Pharma and the opioid crisis.

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NEW YORK – April 18, 2023 — FOX News Media announced today that a settlement was reached in the Dominion Voting Systems lawsuit.

In making the announcement, the network said, “We are pleased to have reached a settlement of our dispute with Dominion Voting Systems. We acknowledge the Court’s rulings finding certain claims about Dominion to be false. This settlement reflects FOX’s continued commitment to the highest journalistic standards. We are hopeful that our decision to resolve this dispute with Dominion amicably, instead of the acrimony of a divisive trial, allows the country to move forward from these issues.”

FOX News Media operates the FOX News Channel (FNC), FOX Business Network (FBN), FOX News Digital, FOX News Audio, FOX News Books, the direct-to-consumer streaming services FOX Nation and FOX News International and the free ad-supported television service FOX Weather. Currently the number one network in all of cable, FNC has also been the most watched television news channel for more than 21 consecutive years, while FBN ranks among the top business channels on cable. Owned by Fox Corporation, FOX News Media reaches nearly 200 million people each month.

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Avoiding Email Scams: Amazon's Message

Although not traditionally part of business communication courses, I wonder whether faculty should help students identify scams. This past week, I received a message impersonating the president of our professional organization, the Association for Business Communication. The writer said she didn’t have WiFi access and asked me to pay a bill via Zelle. I’m the Finance Committee chair, but still, this made no sense, so I ignored it and let her know someone is using her name.

Also this week, a friend got roped into a fake call from her insurance company. The “agent” got personal with her, saying she was distressed and needed funds to pay rent in the Philippines. My friend was ready to send her cash, but the scammer insisted on a bank transfer, and then, fortunately, she refused.

Amazon sent an email including suggestions, shown here, specific to Amazon orders. The U.S. Federal Trade Commission has a webpage, “How to Recognize and Avoid Phishing Scams,” with examples of what scammers do, ways to avoid getting these messages, and what to do if you receive one—or respond to one. This is useful information to know.

New Conventions for Layoff Messages

Guidelines for communicating layoffs are shifting, which may have implications for other bad-news messages. A Wall Street Journal article discusses which day of the week (now Wednesday instead of Friday), how deep to cut, how much severance to offer, and how to decide who goes.

The most obvious shift is away from the business communication wisdom of delivering bad news in person. Why call remote workers into the office only to fire them?

We could say the same for other types of bad news: cutting bonuses or benefits, giving a “below-expectations” performance review, or ending a project. Maybe the best wisdom is to follow communication norms. If a weekly one-on-one meeting is in person, then that would be an appropriate place and time to talk about negative customer feedback. The medium might raise bigger questions about typical communications. If the most typical communication is by text, then, maybe a text is best, but why is that the most typical way of communicating?

Of course, timing is an issue, so these regularly scheduled meetings might not be ideal. Then, what’s the secondary way to communicate? By phone? By email? The decision also depends on the severity of the news—a career-ended change or a minor setback? The guiding principle in articles seems to be that employees could complain publicly; perhaps a better guide is compassion—being humane and prioritizing employees’ feelings over our own reluctance to give bad news.

Back in 2015, in the 9th edition of Business Communication, I softened the “indirect style” recommendation for bad-news messages—adding a “buffer” and giving reasons before the main point. Research hasn’t supported this organizational strategy, and corporate messages that follow this “soften-the-blow” approach are ridiculed. Employees typically know when bad news is coming—or they should if managers have been doing their job.

In the past, faculty spent too much time worrying about sequence within a message; this is a non-issue in articles about layoff message like the Wall Street Journal’s. Companies need to worry more about the sequence and timing of multiple messages, which are often posted online because they wind up there anyway. No spoiler alert, but Episode 3 of Succession on HBO, Season 3, is an interesting example.

Image source.

Cornell Messages About Trigger Warnings

Cornell University’s Student Assembly voted unanimously for faculty to include trigger warnings, but the Administration rejected the mandate. Business communication students can analyze the Cornell students’ resolution and the university’s email response.

The student resolution states: “Urging university officials to require instructors who present graphic traumatic content that may trigger the onset of symptoms of Post-Traumatic Stress Disorder (PTSD) to provide advance notice to students and refrain from penalizing students who opt out of exposure to such content.” Evidence includes research about PTSD and discussion about the value of advanced warnings. The resolution concludes: “Student Assembly implores all instructors to provide content warnings on the syllabus for any traumatic content that may be discussed, including but not limited to: sexual assault, domestic violence, self-harm, suicide, child abuse, racial hate crimes, transphobic violence, homophobic harassment, xenophobia.”

In the Administration’s response, President Martha Pollack and Provost Michael I. Kotlikoff reject the recommendation because it “would infringe on our core commitment to academic freedom and freedom of inquiry, and are at odds with the goals of a Cornell education.” They link to the university’s value of “Free and Open Inquiry and Expression” but acknowledge that certain warnings are “common courtesy” and that “contextualizing” content may be appropriate.

Conservative news organizations supported the Administration and criticized students for the proposal. With its own evidence, The Wall Street Journal editorial board wrote an opinion piece, not missing a chance to denounce DEI efforts: “Cornell’s position is good news, but these bad ideas will recur as long as the diversity, equity and inclusion bureaucracy governs academia, pushing the notion that honest speech and debate are traumatic. If universities want to reclaim real intellectual openness on campus, they have to help students get comfortable with being uncomfortable.” Cornell’s Administration might agree with the last part of that argument.

Several character dimensions are illustrated in these examples. We might say that students demonstrated courage with their resolution, and the Administration demonstrated integrity by being consistent with university values. Some might believe Administrators lack compassion for students and are failing to hold faculty accountable, while others might say the university holds everyone accountable for inquiry and learning. It’s complicated and could lead to a good class discussion.

Another "I Wish You Well" Moment

Gwyneth Paltrow ended her headline-grabbing lawsuit with a whisper: “I wish you well.” Paltrow was sued by a retired optometrist for crashing into him on a ski slope. She defended herself, saying, “I felt that acquiescing to a false claim compromised my integrity.”

After the quick verdict in her favor, Paltrow leaned in and said quietly to her accuser: “I wish you well.” He responded, “Thank you, dear.”

I’ve been curious about this expression, which former President Trump said of Jeffrey Epstein’s partner, Ghislaine Maxwell. Trump defended his statement: “I'm not looking for anything bad for her. . . . I wish a lot of people well.” In other words, it’s just a nice thing to say.

But a Guardian article refers to Paltrow’s words as a “memorable kiss-off.” Urban Dictionary explains, “This is what privileged people say when they want you to forget you knew them. ‘I am sorry I have not responded. I have been very busy. I wish you well.’” A Quora user writes, “I use it only with people I never want to communicate with again. It's a hope they change, but I'm not going to stick around for it. It's a nice way of saying, ‘F#%# off.’”

Of course, tone and context matter. We don’t hear Paltrow’s voice, and the exchange is so short. Regardless, her accuser took it positively, as he described the exchange to reporters: “She said, ‘I wish you well.’” Then he said, “Very kind of her.”

We may never know whether she meant it a sincere wish for well-being. We do know that Paltrow was an actress before she started making Goop.

If you have nothing better to do today, you can read “The 9 Most Bizarre Moments” of the trial from The Hollywood Reporter.

Treemap Shows S&P Index

The New York Times uses a treemap to show how the stock market is dominated by two companies. The article, titled, “How Big Tech Camouflaged Wall Street’s Crisis,” warns that concerns about the market aren’t always as they appear.

The article encourages us to temper reports about financial conditions based only on the S&P 500. The first paragraph of the article says it well: “The fate of the S&P 500 index—used by investors as a barometer for the health of corporate America, and cited by presidents as a measure of their handling of the economy—often comes down to just two companies: Apple and Microsoft.”

The treemap is a good choice to display large amounts of data, with each box or rectangular sized proportionately. In this case, the results are dramatic. We see how Apple and Microsoft stocks can sway the entire index. With text callouts, authors identify well-known companies and a group of 32 for comparison.

Students will find a treemap among standard Excel charts. This one is a good example of how they can be used—with additional comments.

Letter Requesting an AI Pause

An open letter asking for a pause on training advanced AI systems serves as an example of persuasive communication. Signed by more than 2,300 leaders as of this writing, the message is a warning and a request. Students can analyze the letter structure and persuasive strategies, which are a mix of emotional appeals, logical arguments, and credibility.

The letter doesn’t follow organizational principles we teach in business communication classes. Although faculty encourage the main point up front, this message includes the “ask” in bold type at the beginning of the third paragraph: “Therefore, we call on all AI labs to immediately pause for at least 6 months the training of AI systems more powerful than GPT-4.” Another main point, also in bold, appears in the middle of the second paragraph: “Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable.” Paragraph organization is mixed. Some follow a traditional topic sentence format, while one is a single sentence.

Evidence for the pause includes OpenAI’s own communication. The letter quotes the company and uses italics: “At some point, it may be important to get independent review before starting to train future systems, and for the most advanced efforts to agree to limit the rate of growth of compute used for creating new models." Then the authors write, “We agree. That point is now,” good examples of short, punchy sentences.

The last paragraph sounds like an add-on, which is possible with a collaborative writing process. The signers ask for a “long AI summer,” a chance to “reap the rewards, engineer these systems for the clear benefit of all, and give society a chance to adapt.” “AI summer” is catchy and could be a better frame for the letter. Referring to the last paragraph, the last footnote lists examples of other tech pauses: “Society has hit pause on other technologies with potentially catastrophic effects on society.” Repeating “society” in this sentence is curious, and I found myself wanting to read more about this—and earlier. The footnote reads, “Examples include human cloning, human germline modification, gain-of-function research, and eugenics.” An analogy of one of these examples could be a useful persuasive strategy earlier as well.

Citations are a mix of academic papers and books, popular media, and websites. The first footnote refers to several sources, which might reduce the credibility. Again, I envision multiple authors “tacking on” sources, including their own work.

Another topic for class discussion is how this news has been reported. Most of the articles I read, for example, Business Insider’s, lead with Elon Musk. But more than 2,000 distinguished leaders signed the letter, including Steve Wozniak, Andrew Yang, and AI researchers. I can’t be the only one tired of hearing about Elon Musk. The signers offer credibility, but Musk might diminish that approach.

If you’re looking for another written example for students to analyze, see the statement from OpenAI, which explains the benefits of AI but acknowledges “serious risk of misuse, drastic accidents, and societal disruption.”

Intel Honors Gordon Moore

Intel’s home page links to several communications about the co-founder’s death. Like all obituaries for older people, the articles about Gordon Moore, age 94, were clearly prepared ahead of time. The news is technically bad, but it was expected, so these communications are opportunities to demonstrate respect—and for company PR.

With the primary audience as members of the press, the webpage includes an obituary, downloadable photos, a tribute, and more. The obituary acknowledges the Gordon and Betty Moore Foundation for the announcement and includes a link to the organization. This is a promotional opportunity for the foundation as well.

The tribute, titled, “He Stood Alone Among Tech Titans: Never the loudest guy in the room, Intel’s co-founder commanded huge respect,” is a more personal look at Moore’s life. Three interviews tell us more about Moore’s “character,” as the author writes.

A visual timeline shows his major accomplishments and recognitions. One of Moore’s most significant contributions is what came to be known as “Moore’s Law,” a prediction that the “number of transistors on a microchip doubles about every two years.” Intel’s tribute describes Moore as a humble man. He told his biographer that he was embarrassed to have the law named after him.

The press kit lists the following, including the three links above:

• Obituary: Gordon Moore, Intel Co-Founder, Dies at 94

• Tribute: Gordon Moore: He Stood Alone Among Tech Titans

• Visual Tribute: A Look Back at the Life of Intel's Co-Founder

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Comms About TikTok Testimony

TikTok CEO Shou Chew’s testimony provides examples of persuasive communication. U.S. House Energy and Commerce Committee members called on Chew to address concerns about safety and security, but lawmakers were not convinced by his answers and are taking steps against the company.

The Committee webpage lists members’ comments under non-parallel, but descriptive headings. The page is self-promotional: congressional members are proud of grilling the CEO, and we see only pithy, unattributed statements—none of Chew’s responses.

Chew’s opening statement is his attempt to convince the committee that TikTok is sufficiently American and will become more so. To establish credibility—and to distance himself from the Chinese government—Chew starts with his brief background: born in Singapore, attended college in the U.K. and business school in the States, and married a Virginian. Chew describes “Project Texas,” the company’s plan to move data to the United States where it will be fully controlled by Americans. Students can analyze his persuasive strategies and delivery skills. He is clear but nods quite a bit.

During the five-hour testimony, as these hearings go, some representatives invested more in their questions than in wanting legitimate answers, while others never got their questions answered. Some sticking points were around 55 minutes into the video and then around the one-hour mark, when Chew evaded questions repeatedly. What made headlines is Chew’s admission that the Chinese government may be able to access some data—or he wasn’t clear enough: “After Project Texas is done, the answer is no,” and “Today, there is still some data that we need to delete.” Several times, Chew tried to put TikTok in context of the tech industry, saying the company is no worse than any others and may be doing more, for example, to protect kids and reduce misinformation.

After the testimony, a TikTok spokesperson tweeted: "Shou came prepared to answer questions from Congress, but, unfortunately, the day was dominated by political grandstanding that failed to acknowledge the real solutions already underway through Project Texas or productively address industry-wide issues of youth safety. Also not mentioned today by members of the Committee: the livelihoods of the 5 million businesses on TikTok or the First Amendment implications of banning a platform loved by 150 million Americans.”

Regardless, Chew’s testimony didn’t seem to impress lawmakers. We’ll see what happens next.

Image source.

Miami Beach Tries to Curtail Spring Break

Students might be interested in analyzing a video of the mayor of Miami Beach instituting a midnight curfew. Dan Gelber’s message comes after two fatal shootings, which he puts into broader context: “As is the case with most serious crime in our city, both shootings were between visitors to Miami Beach and did not involve residents.” Using anaphora as a rhetorical device, he also said, “We don’t ask for Spring Break in our city. We don’t want Spring Break in our city.”

The mayor describes the rapid police response but says police action would never be enough considering “the volume [sic] of people in our city, the unruly nature of too many, and the presence of guns.” He demonstrates accountability and courage with a clear plan despite the risks: a midnight curfew on South Beach within a defined area. The rules are clear, and the mayor refers to the city website for more details.

Mayor Gelber wards off criticism by saying they are within their legal rights. He apologizes for the “disruption and inconvenience” but could acknowledge more specifically the potential negative impact on businesses and residents.

Students may find his delivery interesting, for example, his impassioned speech, word emphasis, and gestures. The setting, his attire, and his choosing to reach a script also reflect on the mayor’s credibility and are worthy discussion topics.

"Love Letters" to Home Sellers Are Out

Letters to home sellers illustrate problems with bias and insincere persuasive communication. Home buyers try to increase their chances of landing a house by writing letters to sellers, but they cause problems. These persuasive communications seemed like a good idea in a tight housing market. In addition to offering a high price, often above asking, buyers would make emotional appeals, for example, by telling sellers about themselves, how much they loved the house, and how they would care for it.

These letters teach lessons about communication ethics, particularly integrity. One buyer lied by omission, failing to mention a pending divorce that would change the buyer’s ability to get a mortgage. Other problems include revealing race, religion, and other facts that a seller can use—consciously or unconsciously—to discriminate against a buyer, which violates the U.S. Fair Housing Act.

This “Barbie House” letter, written to sellers of a pink house, may have landed the deal (although the buyers also offered $25,000, so who knows). Maybe not in this case, but in others, letters appeal so much to emotions that vulnerable sellers are duped into taking lower offers.

The California Association of Realtors has since published these guidelines for letters, which discourage them entirely.