School Policy for "Natural" Hair
An 11-year-old black girl was sent home from school because her hair didn't fit guidelines for "natural" hairstyles. Over the summer, Christ the King Parish School in Terrytown, Louisiana, established a new policy, published in its handbook, banning hair extensions, which Faith Fennidy was wearing.
Videos show Fennidy crying, and critics called the policy discriminatory. But the Archdiocese of New Orleans defended the school's decision:
"This policy was communicated to all parents during the summer and again before the first day of school, and was applied to all students.
"The school offered the student's family an opportunity to comply with the uniform and dress policy and the family chose to withdraw the student; the student was not suspended or expelled."
A representative for the school also said, "We remain committed to being a welcoming school community that celebrates our unity and diversity." Fennidy decided not to return to the school.
Discussion:
- What's your view of the policy? Do you find it appropriate, discriminatory, or something else?
- How do attire policies in companies compare? What examples of similar policies have been problematic for companies?
- Read more about the situation on BusinessInsider. How well did the school handle the situation? What, if anything, could have been done differently?
Pope Francis's Letter
Pope Francis has joined the conversation about sexual abuse in the Catholic church after 1,000 victims and 300 perpetrators were identified by a grand jury investigation report in Pennsylvania. The report also revealed how the church systematically covered up the abuse over a 70-year period.
In an open letter, which is posted on Vatican News, expresses empathy early and often, for example, in this passage:
In recent days, a report was made public which detailed the experiences of at least a thousand survivors, victims of sexual abuse, the abuse of power and of conscience at the hands of priests over a period of approximately seventy years. Even though it can be said that most of these cases belong to the past, nonetheless as time goes on we have come to know the pain of many of the victims. We have realized that these wounds never disappear and that they require us forcefully to condemn these atrocities and join forces in uprooting this culture of death; these wounds never go away. The heart-wrenching pain of these victims, which cries out to heaven, was long ignored, kept quiet or silenced.
Pope Francis's letter follows one by Pope Benedict XVI in 2010, when abuse in Ireland became widely known.
Discussion:
- Compare the two letters. In what ways are they similar and different? How might the circumstance and timing affect each approach?
- How is the letter organized? How would you describe the tone?
- Which character dimensions does Pope Francis demonstrate in his letter?
The Debate Over Quarterly Reporting
President Trump is asking the SEC to no longer require report quarterly earnings. Instead, companies would report results every six months.
This may be good news for those who believe that publishing frequent earnings reports encourage a short-term focus. The idea is that investors make rash decisions based on the results from only three months.
One downside of the change could be less transparency. The value of quarterly reports is that investors are more aware of what's happening. In addition, the process itself may be useful internally, as a former investment banker explains:
"What I see from the inside of the quarterly earnings cycle is that there’s actually a lot of discipline in it. That process of having to prepare it, release it, explain it and answer questions has real value.”
Also, not everyone agrees that eliminating the report will foster longer-term thinking. As a compromise, some are proposing that reports are still published, but that specific earnings-per-share guidance information isn't included.
Discussion:
- Describe the importance of transparency in financial reporting. How does this relate to accountability?
- What's your view of the proposal to eliminate quarterly reports? Do you see additional benefits or downsides than what is mentioned here?
- In his tweet, President Trump refers to making "business (jobs) even better." How do you see this as a result of his proposal?
What Is "Dehumanizing" Speech?
The New York Times reports Twitter's struggle to define what constitutes "dehumanizing" speech. Apparently, the only agreement among Twitter's team members is that the decision is "incredibly complex."
Categorization is critical, as the company has a reputation as a sometimes dark place of trolls and harassment. Yet this week, Apple, Facebook, YouTube have expunged content from Alex Jones's Infowars, which is known for spreading misinformation, including that the shooting at Sandy Hook was a hoax. You can imagine how this angered families of lost children.
In a tweet, CEO Jack Dorsey explained Twitter's decision to keep Infowars content, but employees, particularly, have not responded positively.
Twitter is in a difficult spot because, on the other hand, sites have been criticized for censoring conservative views. Del Harvey, the company's VP of Trust and Safety, wrote an email to employees further explaining the company's rationale.
Discussion:
- How would you define "dehumanizing" speech? What character dimensions are involved?
- What persuasive strategies does Harvey use in her email to employees? Which are most and least convincing and why?
- What is your view about Infowars content? Should Twitter remove it from the site as other social media companies have done? How might your own political views factor into your thinking?
CEO Activism
Weber Shandwick's third annual report explores CEO activism, which Brian Moynihan, CEO Bank of America, defines and supports:
“Our jobs as CEOs now include driving what we think is right. It’s not exactly political activism, but it is action on issues beyond business.”
The report found that almost half of Americans "believe CEO activism influences the decisions and actions of government," and almost half of consumers "would be more likely to buy from a company led by a CEO who speaks out on an issue they agree with." Millennials, particularly, prefer CEOs to speak out on issues, and CEOs with more social media accounts have better stock performance for their company.
A Wall Journal Street writer observes that leaders rarely make a business case for issues, even if their company would benefit. Instead, they are speaking to consumers directly to change hearts and minds.
Top issues for CEOs include training, equal pay and sexual harassment, and CEOs are avoiding gun control, nationalism, marijuana legalization, and abortion."
A Forbes article offers this advice for CEOs:
- Develop an authentic voice and quick actions
- Connect your customers with your activism efforts
- Align activism efforts with a company’s mission
- Be willing to act against your own self-interest
Discussion:
- What are the risks and rewards of activism to a CEO and to the company? How does integrity factor in?
- What examples have you seen of CEOs speaking out? How do you assess the situations? How did you feel about the gestures?
- Read the Weber PPT deck. What principles of business report writing are followed, and what could be improved?
Scott Pruitt Resigns
Environmental Protection Agency (EPA) head Scott Pruitt resigned after months of accusations of overspending and other ethical issues. Questions about Pruitt's judgment involved expensive travel, getting a job for his wife, and underpaying for an apartment.
President Trump had supported Pruitt, but the controversy may have reached a tipping point. Discovery of secret calendars could have been the last straw. A whistleblower said Pruitt kept three different calendars to hide meetings.
In his resignation letter to the president, Pruitt referred to "unrelenting attacks on me personally, [sic] my family, are unprecedented and have taken a sizable toll on all of us." In a tweet, President Trump was gracious and complimentary.
Discussion:
- If you're familiar with Pruitt's history in the position, which of his alleged ethical lapses do you consider more serious? Which are less serious?
- On balance, do you agree with Pruitt that he was attacked? How might your own political views affect your perspective?
- Did he do the right thing by resigning? Why or why not?
- How does Pruitt's resignation letter differ from resignation letters written for corporate jobs?
Intel CEO Resigns Over Relationship With Employee
A Wall Street Journal article describes events leading to the Intel CEO's resignation. Brian Krzanich had an affair with a mid-level manager at the company, but the relationship ended years ago. Still, the affair became public when the woman told a co-worker who, citing the company's strict policy, reported it to the board of directors.
Intel has a particularly tough policy, which bans any relationships among managers and any employees and requires employees to report known relationships.
In a news release, the company announced the news in the first paragraph and then quickly moved to the future: the appointment of an interim CEO and expressions of confidence for Intel's strategy. Still, the stock fell 3.5% on the news.
Discussion:
- Did Krazanich do the right thing by resigning? Why or why not?
- What are the advantages and downsides of Intel's strict policy? "Non-fraternization" seems dated and odd, doesn't it? Why would a company use this title?
- Consider the employees who discussed the affair. We might assume that one confided in the other. What were the steps along the way that led to Krazanich's resignation? Who is accountable for the result?
Tonys Recap: Speeches and Politics
As usual, the annual Tony awards was a star-studded night with fancy clothes and big celebrities. But this year, the show got political.
Most significantly—or most viral—was Robert De Niro's "F-bomb" preceding President Trump's name. He received a highly positive reaction from the Hollywood audience, with people cheering and standing. The comment, which De Niro repeated, was censored in the United States, but an Australian feed let it roll, so it's available in full on YouTube.
A highlight of the night was hearing graduating students from Marjory Stoneman Douglas High School in Parkland, FL, where a shooter recently killed 17 people and left more injured. Students sang "Seasons of Love" from "Rent" and encouraged us to "measure your life in love." A Washington Post article referred to this segment as "the most moving moment" of the night.
Discussion:
- What's your view of De Niro's outburst: inappropriate, inspiring, or something else?
- How would you respond to the same question about the high school students?
- One could argue that De Niro is "just being his authentic self." How would you respond to this perspective?
Valedictorian's Speech About Sexual Assault Is Cut Short
Just as a high school valedictorian started talking about sexual assault at the school, her mic was cut off. Lulabel Seitz, in Petaluma, CA, had planned to discuss issues of students, including herself, being silenced after reporting incidents of sexual misconduct. The school administration warned her to avoid the topic in her speech: “For weeks, they have threatened me against ‘speaking against them’ in my speech. Sometimes we know what’s right and have to do it despite the threats.”
When the time came for her speech, Seitz said, “Because the class of 2018 has demonstrated time and time again that we may be a new generation, but we are not too young to speak up, to dream and to create change, which is why even when some people on this campus, those some people..." And then there was silence from the podium as her classmates cheered her on: "Let her speak."
She did continue, on YouTube, where she uploaded her complete speech and the ending to her sentence: “And even learning on a campus in which some people defend perpetrators of sexual assault, and silence their victims, we didn’t let that drag us down.”
This story exemplifies the Streisand Effect, which The Economist describes as demonstrating "how efforts to suppress a juicy piece of online information can backfire and end up making things worse for the would-be censor." The Effect was named when performer Barbra Streisand sued the California Coastal Records Project for including pictures of her Malibu house. The suit was considered frivolous, and photos of the home went viral, giving Streisand far more attention than she would have otherwise received from the Coastal Project.
In the case of the high school student, the administration silenced her during the ceremony, but her YouTube video, as of this writing, received almost 230,000 views, far more than the number of people who attended graduation. Also, now the school's handling of sexual misconduct situations is on full display.
The school responded with a short statement:
"Administrators and staff in Petaluma City Schools care deeply about the safety and well being of our students. Due to student privacy issues, we cannot and should not respond with specific information. We can say that when issues of sexual assault come to our attention, local law enforcement has initial jurisdiction and determines the course of action."
Discussion:
- What, if anything, should the school administrators have done differently before Seitz's speech?
- What is Seitz's responsibility? Should she have avoided discussion of sexual assault, as she was instructed by school officials?
- What else should school officials say now? How can they repair the district's image and address issues raised?
- How is this an issue of integrity for the school and for Seitz?
More About the Roseanne Situation
Reactions to Roseanne's tweets and her firing raise interesting questions about communication. Let's look at decisions and responses from five groups: cast members, ABC executives, conservatives, the makers of Ambien, and President Trump.
Cast Members
Perhaps the most immediate and vocal reaction came from Sara Gilbert, who plays one of Roseanne's daughters on the show. Although she likely has a lot to lose, Gilbert did not hesitate in expressing her anger at Roseanne's tweet about Valerie Jarrett.
ABC Executives
A New York Times article sheds more light on ABC's decision to cancel the show. Channing Dungey, appointed to lead ABC Entertainment in 2016, is the first African-American woman in such a senior leadership role at a network. With this decision, which was supported by more senior-level executives at ABC, Dungey has made her mark and won praise from other entertainment executives.
Conservatives
Political conservatives support Roseanne and blast the media and firing for silencing her voice. A writer for InfoWars, which has connections to radio host Alex Jones, referred to Roseanne's extraordinary ratings and the "PC police." Conservatives see this as another example of censorship of the right.
Ambien
After the firing, Roseanne returned to Twitter and seemed to blame sleep drug Ambien for her comments: "It was 2 in the morning and I was ambien tweeting." The drug maker Sanofi responded quickly to defend its "side effects."
President Trump
The president also has jumped into the conversation, which contradicted his press secretary's claim: "That's not what he's spending his time on." President Trump's tweet took aim at CEO Bob Iger:
"Bob Iger of ABC called Valerie Jarrett to let her know that 'ABC does not tolerate comments like those' made by Roseanne Barr. Gee, he never called President Donald J. Trump to apologize for the HORRIBLE statements made and said about me on ABC. Maybe I just didn't get the call?"
The president and Roseanne are mutual fans.
Discussion:
- Which, if any, of these reactions surprise you?
- Assess Ambien's response. How well did the company defend the brand?
- Should President Trump have involved himself in this situation? Why or why not?
"Roseanne" Gets Cancelled After Racist and Islamophobic Tweet
The revival of TV show "Roseanne has gotten a lot of press, and now there's more, but not for good news. The new season addressed political and social issues, with Roseanne, on the show and in real life, a Trump supporter, and she has a transgender and a black grandchild on the show.
But Roseanne crossed the line in a tweet, criticizing former President Obama's adviser Valerie Jarrett as a mix between "muslim brotherhood & planet of the apes.” The missive was part of a series of tweets about Roseanne's view that Jarrett covered up inappropriate actions during the Obama Administration.
At first, she defended her post as "a joke": “ISLAM is not a RACE, lefties. Islam includes EVERY RACE of people.” Roseanne eventually apologized.
ABC Network's response was swift and direct. CEO Robert Iger announced that the show will be cancelled.
Although Roseanne was ABC's most popular show, it was suspiciously not mentioned during the network's recent earnings call until someone asked a question. Perhaps issues existed before this tweet.
Discussion:
- What's your view of the tweet? Does Roseanne's role as a comedian excuse it? Is she just being her authentic self? Or something else?
- Did ABC make the right decision? What are the consequences either way?
MSU's Denial as a Cultural Issue
A Chronicle of Higher Ed article blames Michigan State University's ambitions and culture for their leaders' lack of response to years of sexual abuse on campus. More than 12 people knew of complaints against physician Larry Nassar, but the abuse continued for years.
Lou Anna K. Simon's leadership is questioned in the article. Although clearly a committed leader to the university, Simon is criticized for focusing so much on "two decades of status-climbing" that a culture of denying any wrongdoing evolved. One of the trustees summed up the issue in a letter and emphasized "We must embrace our obligation to apologize and offer justice."
Apologizing may be a sore subject for the trustees because Simon avoided it in the case of Larry Nassar's victims, according to the Chronicle article:
She talked about how “it is virtually impossible to stop a determined sexual predator and pedophile, that they will go to incomprehensible lengths to keep what they do in the shadows.” She often used “regret,” “sympathize,” and “acknowledge” in her written statements, but not “apologize.” She emphasized that sexual assault is a societal problem, not a Michigan State one. She highlighted all of the steps the university had taken to prevent sexual misconduct.
Discussion:
- Analyze the trustee's letter. What principles of business writing are followed? What are the strengths of the letter, and what could be improved?
- The trustee encourages MSU leadership to listen. What does he mean by this, and how would listening help the situation?
- What is the value of apologizing and admitting failure? What are the potential downsides, particularly for a university trying to improve its stature?
- This story illustrates several failings of leadership character. Which can you identify, and which do you think are most relevant here?
Instagram's New Bully Filter
Instagram has implemented a new technology that will not display comments considered bullying. The program, run by artificial intelligence (AI) technology, can detect “offensive and spammy” comments in English and in at least eight additional languages. Although the filter is set by default, users can "opt out" if they want to see such comments, or they can include specific words to screen out.
In an Instagram post, shown here, and in a longer post titled "Protecting Our Community from Bullying Comments," CEO and Co-Founder Kevin Systrom promised more diligence, particularly to protect young users:
We also believe in promoting kindness — encouraging our community to support one another both on and off Instagram. On Saturday we will host a Kindness Prom to celebrate people in our community who are spreading positivity. These young leaders are inspiring their peers by helping kindness, acceptance and support grow on Instagram and in the world.
Research shows the danger of online bullying: of 2,000 middle schoolers in the study, those who experienced cyberbullying were twice as likely to attempt suicide than those who did not experience cyberbullying.
Discussion:
- Analyze Instagram's announcement of the filter. Who are the audiences, and what are the communication objectives? How well does the message achieve those objectives?
- What's your view of Instagram's response to the problem of cyberbullying? Are the company leaders doing enough, or should they do more?
- How does this news relate to the leadership character dimension vulnerability?
MTA Criticized for Lack of Transparency
Commissioners at the New York Metropolitan Transportation Authority (MTA) questioned increasing costs and whether the agency has been transparent. Of particular concern are additional costs of about $1 billion and cost overruns for a project that resulted in 19 instead of 32 subway stations getting renovated. One commissioner said, “It is indefensible that we did not receive this information prior to it being reported in the press." The governing body discovered the information from a Wall Street Journal article.
Chairman Joe Lhota, who was appointed last summer, acknowledged that the agency has been working on being more transparent:
“Not a second in a day goes by when I don’t think about transparency at this agency and what we need to do to provide information to all of you."
NY Mayor Bill de Blasio and New York City Council Speaker Corey Johnson requested more transparency about spending and service improvement measurements and asked for monthly briefings and an "evaluation of efficacy."
Discussion:
- How would you define transparency, and how does it relate to accountability?
- After reading more about the situation, how would you assess the agency's actions? Do you agree with the commissioners' assessment? If you believe a lack of transparency exists, do you think it's intentional? Does it matter if it is?
- Why do organizations lack transparency? What do they potentially gain and lose?
- What do you think an "evaluation of efficacy" means?
More About the Starbucks Bias Situation
After the arrest of two black men in a Philadelphia store, Starbucks announced that 8,000 stores will close on May 29 for racial-bias training. But are some skeptical about the impact that one day of training will have, and the company seems to be imitating Chipotle's decision to close stores for food safety training. On the other hand, the company could have blamed the employee who called the police, a crisis communication strategy we have seem in many other situations.
An article in the New York Times describes racial bias research in hospitality customer service and may tell us more about the incident in Philadelphia. In one study, researchers sent emails to hotels using different names that reflected gender and race, asking for restaurant recommendations. Responses indicated racial bias, as the authors describe: "Hotel employees were significantly more likely to respond to inquiries from people who had typically white names than from those who had typically black and Asian names."
In addition, researchers analyzed "politeness," for example, whether employees wrote "best" or "sincerely" before signing their name. They were more likely to use such words when responding to guests with names that sounded white, and the authors describe another finding for this group:
They were three times as likely to provide extra information — even when the initial inquiry was just about restaurants — to white than to black or Asian people.
In addition to training, the authors suggest periodic customer service audits and consistent scripts and policies.
In a turn, Philadelphia Police Commissioner Richard Ross has apologized to the two men who were arrested. In his original video, Ross defended the officers actions and said, based on a sergeant's experience at Starbucks, "they are at least consistent in their policy." But in the news conference, Ross says, "shame on me" and "I have to do better."
Discussion:
- What's your view of the research about customer service at hotels? What does the research potentially say about the situation at Starbucks?
- Have you experienced bias in a customer service setting? What was the situation, and how did you handle it?
- How well does Ross handle the apology in the news conference? How does his identity factor into his response? How does he demonstrate authenticity, vulnerability, and other leadership character dimensions?
Volkswagen Replaces Chairman
Three years after the emissions scandal, Volkswagen is replacing another chairman. Matthias Müller replaced Martin Winterkorn, who was ousted soon after the news broke in 2015. But Müller was another insider and hasn't led the turnaround the board expected.
Like Winterkorn, Müller struggled with public relations. During a 2016 NPR interview, Müller claimed the company misunderstood the American environmental law: “We didn’t lie. We didn’t understand the question [at] first.” After much criticism, VW’s communications department asked for another interview, which was granted. He delivered a better apology but blamed the first interview on “all these colleagues of yours and everybody shouting.” In other words, it was noisy.
As is customary in corporate change announcements, Chairman of the Supervisory Board Hans Dieter Pötsch spoke positively about the outgoing executive:
“Matthias Müller has done outstanding work for the Volkswagen Group. He assumed the chairmanship of the Board of Management in the fall of 2015 when the Company faced the greatest challenge in its history. Not only did he safely navigate Volkswagen through that time; together with his team, he also fundamentally realigned the Group’s strategy, initiated cultural change and, with great personal commitment, made sure that the Volkswagen Group not just stayed on track but is now more robust than ever before. For that, he is due the thanks of the entire Company.”
The new chairman, Dr. Herbert Diess, offers more hope. Diess joined the board in 2015 and is known for having conflicts with the union and for cost-cutting. He may shake up the status quo at VW and inspire real action. The company has aggressive plans, including building greener cars—for real this time.
Image source (VW cover).
Image source (Diess).
Discussion:
- Assess the company's statement about this change. Who are the primary and secondary audiences? What are the communication objectives? How well does the statement meet those objectives?
- Why do these statements typically include positive quotes about outgoing executives, even if they are asked to leave or, as this statement indicates, they leave "by mutual agreement"?
- What lessons do you think Volkswagen learned since the scandal?
- Why would the board appoint someone who is considered divisive?
Howard University Reports on Misappropriated Funds
Howard University's investigation has concluded that $369,000 had been misappropriated by six employees who were terminated last year. A full report by the university identifies how they "double dipped" by receiving both tuition assistance and university grants between 2011 and 2016.
In a cover letter to the report, President Wayne A.I. Frederick wrote, “Howard University is committed to uncovering any impropriety in the administration of university-provided financial aid and federal student aid, to remediating all problems identified during this investigation, and to maintaining a robust compliance program to prevent any inappropriate dealings in the administration of financial aid."
A Washington Post article reports that the university tried to avoid going public before the review was completed, but an article posted online made this impossible. Student protests, which went on for more than a week, also may have sped up the timing.
Discussion:
- What business writing principles does the report demonstrate and fail to demonstrate? How could the report be improved?
- Assess the president's cover letter. Who are his primary and secondary audiences, and what are the communication objectives? How well does the letter achieve those objectives?
- What can the university do now to restore trust?
- How well does the university take responsibility for the situation?
Mario Batali Wants to Move On
Is it too soon? Mario Batali, accused of sexual harassment and removed from the company bearing his name, is exploring a new venture. In December, reports of sexual misconduct rattled the Batali & Bastianich Hospitality Group, and Batali admitted that accusations “match up with ways” he behaved. At the time, he emailed an apology but lost ground when he included a "P.S." with a recipe for making cinnamon rolls.
Now, about four months later, people report that Batali is exploring his options. Reports say he is considering moving to the Amalfi Coast, aiding displaced Rwandans, or creating a new company.
A New York Times article speculates that Batali may be in a good position to return to public life:
He still has legions of fans and colleagues who admire and respect his generosity, culinary knowledge and charisma. Many still post their interpretations of his recipes on Instagram, ask him for selfies on the street or urge his return to “The Chew” on Facebook. His restaurants continue to attract customers.
Friends also say that he is truly taking time to be introspective and to learn from his mistakes. But not everyone agrees that a comeback would be appreciated. Anthony Bourdain, for example, isn't ready:
Retire and count yourself lucky, I say that without malice, or without much malice. I am not forgiving. I can’t get past it. I just cannot and that’s me, someone who really admired him and thought the world of him.
Discussion:
- What's your view? Is it too soon, or is the time right for a Batali return? What should he consider in making this decision? What are the potential implications for women who complained about his behavior and for the company?
- Batali mentions wanting to understand his "blind spots." What does he mean by this?
Facebook Under Scrutiny
Questions about Facebook's role in user privacy are getting increasingly serious, and shareholders are getting worried. Company shares fell 7% after the news that third-parties used FB users' personal information without permission.
Analysts say we know that Facebook monetizes users' data, but the number of people affected (50 million) and the extent of the violation is dramatic. One concern is how much additional regulation the company will face in the future. Already, the Federal Trade Commission (FTC) is investigating whether Facebook violated a 2011 settlement in which the company promised to get users' consent before changing certain privacy settings.
We have no comment yet from Mark Zuckerberg or Sheryl Sanberg, and critics say they need to be out in front of this.
Discussion:
- A Bloomberg reporter called the company "tone deaf," but others say it's an impossible situation to fully address at this point. What's your view?
- What, if anything, should company leaders say? What could explain their silence?
- In what ways is this situation an issue of integrity for the company?
Toys R Us Closes
https://www.toysrusinc.com/restructuring
Toys R Us will close its remaining 735 U.S. stores and will lay off about 33,000 employees around the country. The company tried to survive after a bankruptcy filing in 2017, but the retailer can't compete with large stores, such as Walmart, and online sellers, such as Amazon.
Critics say Toys R Us failed to generate excitement, as one analyst describes in The Washington Post article:
“The liquidation of Toys R Us is the unfortunate but inevitable conclusion of a retailer that lost its way. Even during recent store closeouts, Toys R Us failed to create any sense of excitement. The brand lost relevance, customers and ultimately sales.”
A professor of brand management echoed this theme:
“We know that customers are willing to pay more for an enjoyable experience — just look at the lines at Starbucks every day — but Toys R Us has failed to give us anything special or unique. You can find more zest for life in a Walgreens.”
New York Senator Chuck Schumer is asking for the Federal Trade Commission (FTC) to ensure that customers aren't left "holding the bag" if they can't cash in or buy products with gift cards, particularly those recently received in December for Christmas.
Toys R Us has only a short statement on its website announcing the liquidation.
Discussion:
- Should the company leaders say more about the decision? What else, if anything, could be included in the statement?
- In addition to legal responsibilities, do company leaders have ethical responsibilities to make good on outstanding gift cards? Why or why not?
- In what ways has the company failed to learn from failure?