NBC's Integrity Called Into Question

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

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The company tweeted a correction and removed the post:

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

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

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Discussion:

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

The Washington Post may have "mischaracterized" a report that the Centers for Disease Control (CDC) was "banned" from using certain words in its budget documents. Reports claimed that the Trump Administration would prevent the CDC from using these seven words: vulnerable, entitlement, diversity, transgender, fetus, evidence-based, and science-based.

But in a Facebook post, CDC Director Brenda Fitzgerald denied such restrictions. She is upholding the integrity of the organization.

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What really transpired between the CDC and the Trump Administration? The Human Rights Commission, an LGBTQ organization, wants to know. In addition to projecting the seven words boldly across a Trump hotel in Washington, D.C., in protest, the organization has asked for more information:

"In conjunction with the enormous light display, HRC has filed a Freedom of Information Act (FOIA) with the Department of Health and Human Services (HHS) for any and all records, including communications with the CDC, relating to the banned words from November 2016 onward."

Discussion:

  • How is this an issue of integrity for the CDC? What do you think actually transpired between the CDC and the Trump Administration?
  • Where do you think the Washington Post went wrong—or did it?
  • Assess the CDC director's response. How well did she handle the issue and rebuild the agency's image? 
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Should You Leave a Company Involved in a Scandal?

TempA Wall Street Journal article explores the impact on employees whose company embarrasses them. When mired in a scandal, the company no longer reflects our values, and we may want to end the association.

An employee at Uber, for example, left after news about sexual harassment became public. Her family questioned her affiliation and, as she describes, "staying there would have meant going against what I believe in." Employees who want to live their values may feel better leaving. Of course, this assumes that people have opportunities elsewhere, which isn't the case for everyone.

The article warns against making a rash decision and suggests alternatives:  

WHEN YOUR EMPLOYER'S IMAGE STRESSES YOU OUT

  • Take time to calm feelings of stress or anxiety.
  • Consider other options before quitting.
  • Spend more time on job tasks that are meaningful to you.
  • Find something to love in your company's mission.
  • Try to fix some part of the company's problem that you can control.
  • Strengthen relationships with people at work you enjoy.
  • Mentor and encourage subordinates who show promise.
  • Work on building skills that will help you in the future.

Discussion:

  • Have you been a part of organization that didn't align with your values? How did you handle the situation?
  • Which of the article's suggestions do you find most and least useful? Which have you used in the past?
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TripAdvisor Identifies Issues at Hotels

TempTripAdvisor has decided to identify hotels where issues about "healthy, safety, and discrimination" have been reported. Given the increasing conversations about sexual harassment, the company is stepping up, but the notice raises serious concerns for hotels.

Related to this move, TripAdvisor has apologized for removing a post reporting a rape by a hotel security guard. Turns out, other women posted similar reports, and there is a pattern. In a statement, the company also explained its plan to use badges:

Official TripAdvisor Statement Concerning Raquel Rutledge/USA Today Network Story

NEEDHAM, Mass., Nov. 1, 2017

The following is the official statement from TripAdvisor concerning the article by Raquel Rutledge of the USA Today network:

"TripAdvisor's site includes more than 535 million reviews and opinions from global travelers who write about their experiences at hotels, with airlines, restaurants and local attractions. Like any other content business, we work to adhere to publishing guidelines that are in place to ensure the accuracy and integrity of those reviews.

TripAdvisor has always maintained - since our founding - a strict separation between our commerce and content businesses. Despite assertions and statements made by a recent USA Today article, there is no tie between commercial relationships with our partners and how our content guidelines are applied to reviews or forum posts published on the site.  

We apologize to the sexual assault victim reported on in the article, who had her forum post removed seven years ago on TripAdvisor. At the time, we had a policy whereby we judged content to be in breach of our guidelines if it did not adhere to family-friendly language. More than seven years ago that meant all language needed to be G-rated. A few years ago, we changed that policy to allow more descriptive reviews on the site about first-hand accounts of serious incidents like rape or assault. We recognized then that our previous guidelines went too far in preventing information like this from being shared.

Over the last several years, this policy change has yielded many first-hand accounts of serious incidents being published on the platform. A simple search of TripAdvisor will show numerous reviews from travelers over the last several years who wrote about their first-hand experiences that include matters of robbery or theft, assault and rape. We believe any first-hand experience should be posted to our site as a means to communicate to other consumers looking for information on where they should travel.

When we were made aware that this post had been removed under our previous guidelines, we republished it in line with our revised policy.

We are horrified that this victim experienced this assault on her vacation in Mexico, and other travelers should be aware of this incident. 

In order to better inform consumers and provide them with even more information about their travels, TripAdvisor is creating a "badge" notification to apply to businesses to alert consumers of health and safety or discrimination issues at that business reported on within the media or other credible sources of information. 

We will continue to work to improve and evolve our moderation and publishing guidelines as we work to provide the most accurate information in the travel industry available online."

The new badge will read as follows:

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Discussion:

  • What ethical issues and communication challenges are raised by this decision? Consider perspectives of hotel guests, managers, and staff. What are the potential advantages and potential negative implications? 
  • If you owned a hotel that received this badge, what would you do?
  • In what ways does TripAdvisor's statement demonstrate compassion? Where does it fall short?
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Air Force Admits Failure

The U.S. Air Force admits it didn't properly report Devin P. Kelley's history to federal law enforcement. The error is critical because Kelley's violent past may have prevented him from buying guns he used to kill 26 people in a Texas church. Kelley spent 12 months in prison and left the Air Force with a "bad conduct" discharge after harming his wife and child.

Air Force spokeswoman Ann Stefanek said, "Initial information indicates that Kelley's domestic violence offense was not entered into the National Criminal Information Center database." This omission led to Kelley's passing the background check before he could purchase guns at a firearms retailer.

Of course, the incident raises bigger questions about how often relevant background information is not reported about former service members. U.S. Air Force Sec. Heather Wilson appeared on MSNBC's Squawk Box to admit the failings during a televised interview. When asked whether she was concerned about possible liability from victims' families, she said, "No, I'm more interested in responsibility. And we've taken responsibility, and we're going to find out what happened and fix it.”

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Discussion:

  • The Air Force has readily admitted a critical failing, which could have led to 26 deaths. Why would the organization choose this disclosure?

  • Describe how Wilson is demonstrating vulnerability. What are the potential downsides?

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Pizza Hut and Papa John's Jump into NFL Controversy

Should CEOs get involved in political controversies? While some applaud "brand activism," others criticize business leaders who don't agree with their views.

Papa John's CEO has been vocal about the business impact of NFL players not standing during the national anthem. When explaining same-store sales, John Schnatter blamed NFL leadership:

"We are totally disappointed that the NFL and its leadership did not resolve the ongoing situation to the satisfaction of all parties long ago. This should have been nipped in the bud a year and a half ago."

Schnatter also said, "Leadership starts at the top, and this is an example of poor leadership." Schnatter contributed $1,000 to President Trump's election campaign and is aligned with the president's views on the subject. He blamed the "polarizing" actions of team members for causing declining viewership and fewer pizza orders. 

But others say NFL viewership was declining long before this political controversy, and Pizza Hut jumped into the conversation. Greg Creed, CEO of Yum! Brands, Pizza Hut's parent company, said the NFL hasn't affected its sales at all.

Daniel Roberts tweeted stock comparisons on Yahoo to show that Papa John's (in red) has been declining for some time. Yum Brands is in blue. But we should be careful about comparing "apples and oranges" here.

Discussion:

  • How is the stock comparison flawed? (Hint: What companies are compared?)
  • What do you think of Papa John's CEO's statements? Should he stay out of it, or is he right to express his views?
  • How is this story an issue of leader integrity?
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Voice Program Makes for a Funny Comment

TempA comment posted on The New York Times website turned out to be gibberish. The replies were almost as funny as the post. People referred to political parties and Waiting for Godot. One reader understood what happened: a voice-to-text program interrupted the writer. Temp

In response, Christine explained that someone came to her door in the middle of her writing the post. She didn't turn off the program, so whatever she said got translated and posted for all to read. As she describes,

"I was composing a message using the autospeak, and a friend arrived early to my house," she wrote in a reply further down the thread. "I had no idea all that drivel was being recorded - there are even errors in the drivel! And then to be a pick, with about 15 emails announcing such, meant that my email went rogue."

Discussion:

  • How have you used voice-to-text programs? What are the benefits?
  • This examples gives us one obvious downside of using transcription services. What are some others?
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Tarantino Admits to Knowing More

TempAs more female victims come forward to describe Harvey Weinstein's sexual harassment behavior, one male celebrity admits to knowing and doing not enough about it at the time. Director Quentin Tarantino said, "I knew enough to do more than I did," and "There was more to it than just the normal rumors, the normal gossip. It wasn't secondhand. I knew he did a couple of these things."

Tarantino cited incidents with women including his former girlfriend Mira Sorvino and also said, "I wish I had taken responsibility for what I heard," and "If I had done the work I should have done then, I would have had to not work with him."

The director regrets not seeing the larger pattern of abuse and demonstrates vulnerability when he admits, "Anything I say now will sound like a crappy excuse," and "I chalked it up to a '50s-'60s era image of a boss chasing a secretary around the desk," he said. "As if that's O.K. That's the egg on my face right now."

Unsurprisingly, Tarantino says others close to Weinstein also knew and did nothing to stop the abuse.

Above is a picture of Tarantino in the movie Pulp Fiction.

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Discussion:

  • What's your reaction to Tarantino's statements?
  • In what ways is Tarantino demonstrating vulnerability?
  • Why do you think he's coming forward now? Why haven't other Hollywood men come forward? Should they?
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Harvey Weinstein's Plea

TempHarvey Weinstein may have worsened his case by sending emails to friends asking for their defense. After several allegations of sexual harassment and at least two charges of assault over decades, the Hollywood producer's board of directors was getting ready to fire him from the company. Not willing to go quietly, Weinstein emailed people, including Jeffrey Katzenberg, the chairman of Walt Disney Studies. But he didn't get the response he was expecting.

Weinstein's email is below. He demonstrates some vulnerability but fails to take full responsibility, instead saying "a lot of the allegations are false as you know":

My board is thinking of firing me. All I'm asking, is let me take a leave of absence and get into heavy therapy and counseling. Whether it be in a facility or somewhere else, allow me to resurrect myself with a second chance. A lot of the allegations are false as you know but given therapy and counseling as other people have done, I think I'd be able to get there. 

I could really use your support or just your honesty if you can't support me. 

But if you can, I need you to send a letter to my private gmail address. The letter would only go to the board and no one else. We believe what the board is trying to do is not only wrong but might be illegal and would destroy the company. If you could write this letter backing me, getting me the help and time away I need, and also stating your opposition to the board firing me, it would help me a lot. I am desperate for your help. Just give me the time to have therapy. Do not let me be fired. If the industry supports me, that is all I need. 

With all due respect, I need the letter today.

Instead, Katzenberg emailed Weinstein and made his response public. In part, he says, "You have done terrible things to a number of women over a period of years," yet Katzenberg calls him a friend and offers his help.

An interesting part of this story is the criticism of men who have come forward with a preface such as, "As a father of two daughters." A writer for Vulture explains this perspective.

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Discussion:

  • What's your view of Weinstein's letter to his friends? What other approaches could he take knowing his board is planning to fire him?
  • How do you assess Katzenberg's response and his choice to make the email public? Is he a bad friend? What is he trying to accomplish for himself and for Weinstein in his response?
  • Finally, what's your view of people referencing their wives and daughters? Is the Vulture writer's perspective spot on, too harsh, or something else?
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Pro-Life Congressman Resigns

TempWe might expect a congressman who serves on the U.S. government's House Pro-Life Caucus to be against abortion in his personal life. But Representative Tim Murphy reportedly suggested that his girlfriend get an abortion if she is pregnant.

A women who says she was having an affair with Murphy went public with text messages:

She: "...zero issue posting your pro-life stance all over the place when you had no issue asking me to abort our unborn child just last week when we thought that was one of the options."

He: "I've never written them. Staff does them. I read them and winced. I told staff don't write any more."

Curiously, he didn't dispute her allegation about the abortion request. Pro-life advocates criticized Murphy for his "hypocrisy."

Although the woman wasn't pregnant, Murphy resigned from his position. House Speaker Paul Ryan announced the decision, saying "I think it's appropriate he move on to the next chapter in his life." Murphy said he'll "take personal time to seek help as my family and I continue to work through our personal difficulties." 

Murphy also posted a statement on his website:

Statement From Congressman Tim Murphy

For Immediate Release: October 4, 2017
Contact: Carly Atchison 202.225.2301

WASHINGTON, DC - Today Congressman Tim Murphy (PA-18) released the following statement:

"After discussions with my family and staff, I have come to the decision that I will not seek reelection to Congress at the end of my current term.
 
"I plan to spend my remaining months in office continuing my work as the national leader on mental health care reform, as well as issues affecting working families in southwestern Pennsylvania.
 
"We have accomplished much in the past year through the Helping Families in Mental Health Crisis Act and there is much work yet to be done.
 
"In the coming weeks I will take personal time to seek help as my family and I continue to work through our personal difficulties and seek healing. I ask you to respect our privacy during this time." 

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Discussion:

  • Assess Murphy's statement. How well does his address the situation? What else, if anything, could he say, or what could he say differently?
  • In what ways is this situation an issue of integrity? Do you see a contradiction, or do you believe Murphy's political stance and personal stance may differ?
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Equifax Visits Congress

TempFormer Equifax CEO Richard Smith admitted failures during a House Energy and Commerce Committee hearing. Smith had already apologized in a video statement, but during the hearing, he mentioned his personal accountability:

"The criminal hack happened on my watch. I am truly and deeply sorry for what happened."

Yet critics say that Equifax is still not taking full responsibility. A TechCrunch article highlights Smith's testimony blaming one person: 

"The human error was that the individual who's responsible for communicating in the organization to apply the patch, did not."

The TechCrunch writer seems to think this is ridiculous:

"The notion that just one person didn't do their job and led to the biggest breach in history is quite an amazing claim and shows a fundamental lack of good security practices. But that's what Smith says led to this disaster."

Smith and Equifax's CIO retired from the company after the news became public, which took a while: executives apparently knew about a software issue back in March, but the company didn't announce the breach until September.

A Wired article cites "6 Fresh Horrors from the Equifax CEO's Congressional Hearing." In addition to the delayed admission, the article attack's Equifax's technology, including inadequate patching, failure to encrypt data, limited security reviews, and insufficient website capabilities.

Another twist is this case is why three top people in the company sold $1.8 million in stock around the time they would have learned of the breach. Smith denies questions of integrity:

"I've know these individual for up to 12 years. They're men of integrity. I have no indication that they had any knowledge of the breach when they made this sale." 

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Discussion:

  • Assess Smith's testimony. What parts do you find most and least convincing? 
  • What else, if anything, should Equifax do now to rebuild trust?
  • In what ways is this case an issue of integrity?
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Wells Fargo on the Hot Seat Again

TempAgain, Wells Fargo executives faced angry lawmakers, and again, Senator Elizabeth Warren encouraged the CEO to leave. This time, she told CEO Timothy Sloan, "You should be fired." Last year, around this time, she told former CEO John Stump, "You should resign." She also referred to Stumpf's actions as "gutless leadership."

Senator John Neely Kennedy had tough words for the CEO too:

What in God's name were you thinking? I am not against big, but with all due respect, I am against dumb. I am against a business practice that has puts Wells Fargo first and customers second.

Sloan defended the board and his leadership by saying that a "throughout, independent investigation" has been made public. He said that he's "been making change at this company for 30 years," his actions have resulted in "fundamental change at the company," and that he has "the support of 270,000 people."

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Discussion:

  • How convincing do you find Sloan's testimony? Should he continue at Wells Fargo or leave the company?
  • Analyze Elizabeth Warren's arguments. Do you find her criticism too harsh, on point, or something else?
  • From this longer video segment, do you believe Sloan is holding himself accountable? What tells you he takes responsibility, or what else would he need to do to convince you?
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New Facebook Policies for Targeted Ads

TempFacebook is taking responsibility for ads that target audiences based on self-reported information. In their profiles, users wrote descriptions about their hatred of certain groups, and ads displayed for them based on that quality.

Identifying hate groups wasn't the original intent of targeted ads, which Facebook describes as a way to "Connect with the people who will love your business." Yet an article in Verge says the "problems were baked in from the start." The design did allow people to choose a way to identify, and the descriptors weren't monitored.

COO Sheryl Sandberg expressed her disappointment:

"Seeing those words made me disgusted and disappointed – disgusted by these sentiments and disappointed that our systems allowed this," Sandberg said in a Facebook post. "Hate has no place on Facebook – and as a Jew, as a mother, and as a human being, I know the damage that can come from hate. The fact that hateful terms were even offered as options was totally inappropriate and a fail on our part."

"We removed them and when that was not totally effective, we disabled that targeting section in our ad systems."

She also talked about how Facebook's internal systems failed:

"Such targeting has always been in violation of our policies and we are taking more steps to enforce that now," Sandberg said. "We never intended or anticipated this functionality being used this way – and that is on us. And we did not find it ourselves – and that is also on us."

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Discussion:

  • What responsibility does Facebook have in this situation? Should the company have been monitoring people's descriptors and how ads targeted specific groups?
  • What else, if anything, should the company do now?
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News Conference about Deaths at Florida Nursing Home

TempEight people died in a nursing home from heat after Hurricane Irma. Local police, the medical director of a nearby hospital, and the city mayor held a news conference to describe the situation. Although the video references six people, two additional have died for a total of eight at Rehabilitation Center at Hollywood Hills. No one was present from the facility.

Florida Governor Rick Scott called the situation "unfathomable" and "inexcusable." The facility didn't lose power, but the air conditioning wasn't working. It's not clear why people weren't transferred to another facility, for example, the hospital across the street. Patients died of heart attacks, dehydration, and other issues related to the extreme heat.

Critics say that some business in Florida, such as gas stations, are required to have backup generators, but this is not the case for nursing homes. A criminal investigation has begun. The owner of the facility has a criminal past involving kickbacks; the case was settled for $15.4 million

At this point, the facility has been evacuated, and people are being accommodated at other locations.

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Discussion:

  • Who should be held accountable in this situation?
  • Assess the three statements in the news conference. How appropriate was each to the person's role?
  • We're obviously missing someone from the rehabilitation facility. Would representation help or hurt their case?
  • For the questions we hear in English, how well does the police chief respond? What strategies does he use to deflect questions he can't or won't answer?
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Defense After Nurse Is Arrested

TempA nurse at a Utah hospital was arrested for disobeying an officer's request, and everyone seems to be apologizing. An officer asked Alex Wubbels to draw blood from a man who was unconscious, and she refused. Wubbels said, in order to draw blood, the patient would need to be under arrest, and she would need to see a warrant. She said she had authority from hospital administrators to maintain her position.

The police officer, Jeff L. Payne, became angry and said she would be arrested if she didn't comply. And then he followed through while Wubbels screamed for help. It seems that Officer Payne's anger may have impaired his judgment.

Statements from the Salt Lake City major and the chief of police offer apologies for the incident:

Mayor Jackie Biskupski:

"Like many of you, I watched the video of police officers interacting with University of Utah Medical Center nurse Alex Wubbles for the first time through the media late yesterday. What I saw is completely unacceptable to the values of my Administration and of the values of the Salt Lake City Police Department. I extend a personal apology to Ms. Wubbles for what she has been through for simply doing her job.

There is currently an Internal Affairs investigation examining the actions, and the Civilian Review Board is conducting a parallel investigation. I have reiterated to Chief Brown that I expect the highest level of professionalism and integrity from his team. I have also instructed Chief Brown to conduct a thorough review of all policies and trainings to ensure respect for all individuals, in all situations. Following the incident Salt Lake City Police Department command met with hospital administration. We immediately changed policies that may have been a factor in this encounter, and the officer's duties have been modified.

I take these incidences very seriously. Since I took office, I have been working with Salt Lake City Police Department to increase our use of de-escalation techniques and we have had great success, and this incident is a troubling set back to those efforts. No medical professional in Salt Lake City should be hindered from performing their duties, and certainly not be fearful of the police officers they so often partner with to save lives."

Chief Mike Brown:

"I was alarmed by what I saw in the video with our officer and Ms. Wubbles. I am sad at the rift this has caused between law-enforcement and the nurses we work so closely with. I want to be clear, we take this very seriously. Immediate steps were taken and within 12 hours, body cam footage was reviewed and an internal affairs investigation started. We've looked at the actions that took place, the policies that could have prevented it, and the training that must be done. Within 24 hours of this incident, Salt Lake City Police Department took steps to ensure this will never happen again. We met with hospital CEO and COO, Nursing Management Team, their legal representation team, and University of Utah Chief Brophy. 

Most notable of all these conversations were that we apologized for the incident and promised to find a solution. Additionally, our policy management team continues to work closely with the hospital staff on improved policies and training. 

To date, we have suspended the officer from the blood draw program. We have already replaced our blood draw policy with a new policy. All remaining officers on the blood draw program have reviewed, and are operating under the new policy and protocol.

It is my sincere desire to get back to a very cooperative, respectful, and friendly relationship with our "brothers and sisters in white" we work so closely with. Salt Lake City Police Officers have a very soft spot in our hearts for all medical professionals. We know that if we are ever hurt in the line of duty, it is their caring hands that will perhaps save our lives one day. 

I believe we can learn from mistakes and from building strong relationships with everyone we work with and serve. By doing that we become a stronger police department." 

In addition, Mayor Jackie Biskupski apologized during a news conference and announced an internal investigation. Biskupski also said they met with hospital administrators and changed some policies. Police Chief Mike Brown also apologized  and said they would put steps in place to make sure this type of incident doesn't happen again.  

Discussion:

  • How effective are the apologies from the mayor and police chief? What works well, and what could be improved?
  • How well did they answer questions? What were their best responses?
  • In what ways did the nurse demonstrate courage? What risks did she take to stand by her position?
  • How did she also demonstrate integrity?
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Pastor Responds to Criticism

TempJoel Osteen, senior pastor at Lakewood Church in Houston, Texas, has a large following, but he has taken a hit since Hurricane Harvey. Critics say Osteen should have offered his mega-church, which seats 16,8000, to people needing housing after the storm. Instead, Osteen tweeted his prayers, and people say it wasn't enough.

Church officials said the building experienced "severe flooding," but pictures told a different story. In TV interviews, Osteen defended the church's practices. He said, "The main thing is, the city didn't ask us."

 In an article on PR Daily, Brad Phillips raised the issue of authenticity:

If you're cynical about televangelists, Osteen's tone in the Today show interview probably struck you as smarmy and self-satisfied. If you're one of the millions of people who watch his sermons and read his books, you probably viewed him as sincere.

Phillips also questioned why the church didn't have plans in place and, specifically, why the leaders didn't coordinate with Houston city officials ahead of time. 

The social media response has not been kind: memes abound.

Discussion:

  • What's your view of the church's actions during and after the hurricane?
  • How well did Osteen respond to criticism? What are his main arguments? Which are strongest, and which fall short?
  • Given Phillips' question about Osteen's authenticity, how do you view his interview on the Today show?
  • What's your view of the social media response and memes: cruel, justified, or something else?
  • How do your own religious beliefs or practices influence your assessment of the situation and of Osteen, particularly? 
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Airbnb Steps Up During Hurricane Harvey

TempAirbnb is offering free rooms for people who had to leave their homes because of Hurricane Harvey. Evacuees won't have to pay fees to hosts through September 25. Originally, the offer was through September 1, but the company extended it after seeing the storm's devastation. Free listings appear for homes in Houston, Dallas, Austin, and San Antonio.

Conditions are explained on Airbnb's Disaster Response site. Currently, the site lists programs for Hurricane Harvey and for the Mumbai floods.

Other sharing companies have stepped up following the hurricane. Uber, Lyft, and WeWork are offering free services and other promotions. 

Discussion:

  • What examples of generosity have you seen during Hurricane Harvey?
  • How should a small business owner decide what to offer? What are the advantages and disadvantages of, for example, a restaurant offering free food?
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Companies Criticized for Price Gouging

As Texans are desperate for housing and food in the aftermath of Hurricane Harvey, some companies are taking advantage. People reported hundreds of examples of price gouging for items like bottled water, groceries, gas, and hotel rooms. Temp

A Best Buy near Houston was selling a case of water for $42; others reported prices up to $99. Price gouging is illegal after natural disasters, as the Texas attorney general's site explains.

Best Buy issued a statement that this was the act of one store.Temp

A Best Western in Robstown was also over-charging: $321.89 a night compared to its usual price of $119. In addition to raising the room rate, the hotel added extra fees. The PR manager for Best Western's corporate office issued this statement:

"Best Western was founded on the principles of honesty, integrity, compassion, and service. We are deeply offended and saddened by the actions taken by this hotel. As a result, we are immediately severing any affiliation with the hotel. This hotel's actions are contrary to the values of Best Western. We do not tolerate this type of egregious and unethical behavior."

The hotel has been removed from Best Western's website.

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Discussion:

  • What's your view of raising prices during disasters? How is this different from revenue management?
  • Analyze Best Buy's statement. How well does this meet audience needs and communication objectives?
  • Did Best Western do the right thing in severing the hotel from the company? What will be the consequences of this action?
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How Not to Apologize

TempThe owner of a bar in Crown Heights, Brooklyn, has faced her critics but didn't handle the apology well. Former corporate tax attorney Becca Brennan wrote a press release encouraging people to visit her new bar and photograph the wall of bullet holes.

It was a bad joke: the holes weren't from bullets. Brennan played on previous violence in a gentrifying neighborhood. The NY Eater summarizes the issue:

Nostrand Avenue between Eastern Parkway and Atlantic is quickly gentrifying, and increasingly, bars and restaurants targeting young and primarily white new residents have opened. Summerhill may be the first business to capitalize on historic violence and poverty in Crown Heights as a point of the decor - making it an easy lightning rod for existing tensions.

Neighbors took offense, and some considered the promotion racist. Brennan issued an apology:

"I truly never meant it in that way, but I recognize that it was insensitive. I was excited to keep the wall as a shout out to the different businesses that occupied the space before us, but my intention was misinterpreted, and I'm sorry for that."

A month later, a town hall meeting was supposed to ease tensions but didn't. In response to criticism, Brennan said, "I'm sorry I have a sense of humor," and "I'm very sorry you were offended." These are classic mistakes in apology.

From her perspective, Brennan can't say anything right. She told reporters, "I mean, you see me try to talk, and nothing I say will ever be good enough." At the same time, she refuses to cover the damaged wall.

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Discussion:

  • What makes a good apology, and how did Brennan's fall short?
  • What would you suggest for Brennan to demonstrate vulnerability?
  • Should she cover the damaged wall or stick to her plan, as she says, to "keep the integrity of an 100-year-old building"?
  • At this point, how, if at all, can she improve relations with neighbors?
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Is Poland Spring Water from Poland Spring?

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A consumer lawsuit accuses Pepsi of falsely promoting Poland Spring Water. The product is marketed as "100% Poland Spring water," but the plaintiff group of 11 say it's really ground water. The company is accused of false advertising and misleading customers, and the plaintiffs seek $50 million in damages.

According to the Food and Drug Administration (FDA), spring water has a specific definition: "Spring water shall be collected only at the spring or through a bore hole tapping the underground formation feeding the spring. There shall be a natural force causing the water to flow to the surface through a natural orifice." Although a Poland Spring did exist in Maine, according to the suit, it dried up almost 50 years ago.

The accusations are an issue of behavioral integrity, as my colleague Tony Simons defines it: doing what you say you will do. In other words, does Nestle Water promise something it doesn't deliver?

Nestle Waters denies the claims. In response to the suit, the company created an extensive web page with a brief statement, two videos, and an infographic. The statement reads as follows:

For more than 170 years, Poland Spring® has delivered great tasting spring water from Maine to millions of people in the Northeast. The claims made in the lawsuit are without merit and an obvious attempt to manipulate the legal system for personal gain. Poland Spring® is 100% spring water. It meets the U.S. Food and Drug Administration regulations defining spring water, all state regulations governing spring classification for standards of identity, as well as all federal and state regulations governing spring water collection, good manufacturing practices, product quality and labeling. We remain highly confident in our legal position.

They are taking a strong approach to counter the claims, and they accuse the plaintiffs of seeking personal gain. One of the videos, only 30 seconds, demonstrates principles of persuasion: emotional appeal, logical argument, and credibility.

Discussion:

  • What elements of persuasion (pathos, logos, ethos) do you find in the video example? What other communication strategies does Nestle Water use on its web page?

  • Analyze the full infographic from this page. What communication design principles does the infographic illustrate? How could it be improved?

  • Given what little we know so far about the case, what's your view? Do you side more with the plaintiffs or with Nestle Water?

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