07: Persuasive Amy Newman 07: Persuasive Amy Newman

Wendy's Employee Provides Another Unfortunate Photo

Just days after we saw a Taco Bell employee licking a stack of shells, a Wendy's employee took a direct shot from the soft serve machine. 

Wendys-frosty

Ragan's PR Daily wrote a prosaic version of Wendy's possible response and what the writer calls a "more human statement." Compare the two:

"Wendy's hasn't released one yet, but rest assured that it will read something like this: 'At Wendy's we hold ourselves and our employees to the highest standards. We are aware of a photo circulating online that depicts an employee using company property in an inappropriate manner. We apologize, and will take steps to rectify the situation.'

"A better, more human statement might read: 'We know-it's gross. But when you employ legions of teenagers, you're going to get a few bad apples in the mix. We'll find this dopey S.O.B. and fire him and tell our franchisees not to hire idiots, but let's face it-teenagers do stupid stuff.'"

 

Wendy's spokesperson Bob Bertini did respond to the Daily News:

"We don't know the exact date the photo was taken, but we believe in it was in  May. The incident was totally inappropriate, and  we're taking it very seriously."

Bertini also said that the employee is not longer working at the restaurant.

 

Discussion Starters:

  • What's your view of PR Daily's attempt at a more "human" statement? What are the potential advantages and risks?
  • Try another variation of Wendy's statement. What else could the spokesperson say?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

HGTV's Flag Tablecloth Draws Fire

In anticipation of Fourth of July celebrations, HGTV suggested using an American flag as a tablecloth.

  HGTV flag

On its Facebook page, the network suggested "Classic Fourth of July Table Setting Ideas" including this tip

"Drape a large American flag over the table as a bright and festive table runner. Use a nylon flag so spills can be easily wiped off and the flag can later be hung with pride on a flag pole."

Apparently, the network designers were unaware of "Flag Etiquette," according to the U.S. Government, which includes the following:

"The flag should not be used as a drapery, or for covering a speakers [sic] desk, draping a platform, or for any decoration in general."

As expected, backlash on HGTV's Facebook page came from across the nation:

  • I am appalled that you would suggest using the flag that my brother was killed defending in Iraq as something to catch spills on a table at a cookout.
  • No one dies for a table cloth.

HGTV issued this apology:

"HGTV Fans, regarding the recent article that appeared on our website...This was a regrettable use of our flag and it never should have happened. We sincerely apologize and have removed the post from our website. We want to assure our fans that HGTV is proud of the American flag and everything it symbolizes for our people."

Discussion Starters:

  • What's your assessment of HGTV's decorating advice: was it an innocent mistake, or should the designers have known better?
  • What's your view of the reaction? Are people too sensitive? Is this a desecration of the flag? Or something else?
  • What's your view of HGTV's apology? What works well, and what could be improved?
  • In the excerpt from the government website, I added "[sic]." What does this mean, and why did I add it?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Taco Bell Employee Licks Shells

This is not a good week to work in corporate communication at Taco Bell. A photo posted on the company's Facebook page shows an employee licking a stack of taco shells.

  Taco Bell

The image is gut churning, but before we jump to any conclusions, we need to know whether these shells were sold or were expired and on their way to the trash bin. Regardless, Rob Poetsch, a Taco Bell representative submitted this statement:

"When we learned of the situation we immediately contacted this restaurant's leadership and although we believe it is a prank and the food was not served to customers, we are conducting a full scale investigation and will be taking swift action against those involved."

In another statement, the company led with, "Nothing is more important than the safety of our customers and team members, and we have strict food handling procedures and zero tolerance for any violations."

Discussion Starters:

  • If you were Taco Bell's head of corporate communications, what would you do now? How about if you were the head of human resources? Marketing?  
  • The company seemed to have removed the photo from its Facebook page. Discuss this strategy: what are the advantages and disadvantages?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

J.C. Penney Removes "Hitler Teapot" from Billboard

Does this teapot look like Hitler to you? It does to some people, and J.C. Penney responded by removing the image from a billboard in California.

Hitler teapot billboard

J.C. Penney responded to several tweets, such as this one:

JC Penney response

Despite the criticism-or perhaps because of it-the teapots sold out online but can be had for a mere $199.99 on Ebay. Or you can place a back order for just $40.

Hitler teapot on Ebay
The teapot was designed by Michael Graves. Here are more of his J.C. Penney products. Do you see any other political figures, criminal master-minds, celebrities, or religious figures?

Discussion Starters:

  • When should a company ignore social media reactions? Is this one of those situations?
  • What could be the consequences of J.C. Penney's leaving the billboard as is? Do you think it would be worth the risk?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

TGI Fridays Accused of Using Cheap Alcohol

First Anheuser-Busch is accused of watering down its beer, and now this? Restaurant chain TGI Fridays may be replacing its premium alcohols with less expensive versions.TGIF

"Operation Swill," a year-long investigation, relied on customer complaints, informants, and alcohol-testing technology to cite 29 New Jersey bars. Although Fridays is the only chain with multiple locations in question, several other restaurants, including the following, are part of the investigation:

  • Applebee's, Kearny
  • Bell's Tavern, Lambertville
  • Blackthorn Restaurant, Parsippany
  • The Brick House, Wyckoff
  • Brunswick Grove, East Brunswick
  • Café 34, Matawan
  • Cucina Calandara, Fairfield
  • Graziano's Ristorante, Chesilhurst
  • Italian Affair, Glassboro
  • Murray's, Dover
  • Railroad Café, East Rutherford
  • Ruby Tuesday, Bridgewater
  • Sona Thirteen, Morristown
  • Sunset Tavern, Burlington
  • Villari's Lakeside, Gloucester Township
  • Yesterday's Marmora

A spokesperson from Fridays responded to the claims:

"TGI Fridays was just made aware of this issue and is working closely with the franchisee and owner of the cited locations to review and investigate these serious allegations. We have one of the most extensive bar and beverage programs in the industry, which sets a very high standard in the quality and service of our beverages."

Other restaurants denied the charges. Brian Hertenstein, general manager of Blackthorn Irish Pub in Parsippany, said, "It's not true, and there were never any complaints from patrons. I'm confident that it'll come back, and it'll be proven we were pouring what's on the label."

Discussion Starters:

  • Does this news surprise you? What are the implications for restaurants in other states?
  • How do you assess Fridays' and Hertenstein's responses? Which works best and why?
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Apple Responds to Tax Criticism

Apple CEO Tim Cook is using his persuasive communication skills to address the company's avoidance of billions in taxes.

Cook appeared on Capital Hill and received a surprising number of compliments from the nation's lawmakers. Committee Chairman Senator Carl Levin, for example, said, "We love the iPhone and the iPad." Libertarian Ron Paul also defended the company: "I'm offended by the spectacle of dragging in Apple executives. What we need to do is apologize to Apple and compliment them for the job creation they're doing."

Still, the panel accused Apple of creating offshore "ghost companies" to avoid paying taxes. Apple shifts as much as $100 billion to these entities, saving $7 billion in taxes in 2011, according to one estimate.

Rather then deny the accusations, Cook blamed the outdated tax system: "Unfortunately, the tax code has not kept up with the digital age." By deflecting attention away from Apple and towards loop holes that should be closed, Cook effectively "disarmed" (to use The New York Times' word) the Senate committee.

Of course, Apple isn't the only company avoiding taxes. According to one study cited by Senator Levin, 30 of the country's largest multinationals "paid nothing in federal income taxes over a recent three-year period. Zero."

Discussion Starters:

  • Watch Tim Cook's opening statement in the Senate hearing. What are his strongest and weakest arguments?
  • Watch the  rest of the Senate hearing. Which questions are most and least effective?
  • How does Cook use delivery skills to persuade the committee?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

This Tweet Brought to You by Dos Equis

To promote its "Legend of You" app, Dos Equis hired a comedian to tweet.

When Michael Ian Black ("The State" and "Ed") tweeted that the new app turned him into "a Most Interesting Person," his 1.9 million followers knew it was a paid advertisement. Black's other tweets are funny (depending on your sense of humor). 

The backlash was harsh, with one tweeter saying, "I wish you had died in 9/11" and another criticizing Black for using language that an unpaid intern probably wrote. Black responded to some tweets, such as this one:

Dos tweet

You have to admire Black's honesty, but I wonder how his employer feels about it.

Discussion Starters:

  • What advice would you give to companies considering paying for tweets? Should they not do this at all, or can safeguards be put in place? 
  • If you were the marketing manager for Dos Equis, would you hire Black again to promote your products? He did get a good discussion going...
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Abercrombie CEO Faux Pas

CEO Mike Jeffries has surprised and disturbed people with his alleged comments about customers in 2006, which just became public:

"We go after the attractive all-American kid...A lot of people don't belong [in our clothes] and they can't belong. Are they exclusionary? Absolutely."

The comment has been interpreted to mean that plus-sign people aren't welcomed in the store, and this may be substantiated by the retailer's inventory: no pants size is larger than 10.

Public reaction has been strong. As of yesterday, about 1,000 people signed an online petition to boycott Abercrombie. And a nine-year-old in Plano, TX, altered her T-shirt to express her feelings:

Abercrombie T-shirt

 Discussion Starters:

  • As yet, the company has not responded to requests by ABC news. Should the corporate communication people say something? If so, what?
  • What's your reaction to the CEO's alleged comment? Do you find it offensive, his right to define his customer, or something else?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

JC Penney's Re- ReBranding Efforts

After rebranding and ousting its CEO, JC Penney is trying to lure customers back to the store. In a new commercial, the company says, "It's no secret that JC Penney changed" and admits that not everyone liked what they saw. The voiceover asks people to return, saying "We learned a very simple thing: to listen to you."

The CEO was in place for only 17 months, and by most accounts was a disastrous choice for the company. A former Apple executive, Ron Johnson implemented a strategy to target younger customers, and the company brought in hipper products and stopped running sales. But JC Penney's loyal customers were alientated in the process.

Will the new commercial and CEO (Mike Ullman, who preceded Johnson) turn the company around? Skeptics say it's a rough road: same-store sales were down 20% last year and are down 15% so far this year.

A writer for USA Today thinks the company is doomed:

"Either way, there is no reason that these customers will come back. J.C. Penney's share of the retail market is already permanently depressed.

"J.C. Penney is done for. The only party that has not admitted as much is management.

Discussion Starters:

  • Assess the new commercial. How does the company use language, images, and music to convey its message?
  • Which arguments in the commercial might convince customers to return to the store? Which may detract from the company's message?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Nike Pulls "Boston Massacre" T-Shirts

A "Boston Massacre" T-shirt showing splattered blood stains will mean only one thing to people now: the bombing tragedy at the Boston Marathon. But this Nike T-shirt is a reference to the Red Sox/Yankees baseball games in 1978 and 2006. 

Still, some people feel the T-shirts should have been removed from the outlet store before being spied (and photographed) by a producer for the "David Letterman Show."

Boston T-shirt

A Nike spokesperson emailed a response to the Huffington Post:

"The shirts being referenced are older baseball shirts that were predominantly being sold through our Factory Stores Outlets. In light of the tragedy in Boston we took immediate action last week to remove this product from distribution. We conducted this process as quickly as possible and are confident the product has been removed from distribution."

The situation is reminiscent of Nike T-shirts in a Boston store window sporting slogans such as "Dope" and "Get High." In this situation, the mayor of Boston wrote a complaint letter, but the company denied that it promoted drug use. 

Discussion Starters:

  • In what ways does the "Boston Massacre" T-shirt differ from the "Dope" and "Get High" T-shirts? How are they similar?
  • How do you assess Nike's response? Should the company have done anything differently, or is this an understandable mistake?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Hyundai's Ad Mocking Suicide: Not Funny

Hyundai is apologizing for an ad that pokes fun at a failed suicide attempt. Proud of its new ix35 model that uses water rather than carbon monoxide emissions, the company played on a way that some people end their lives. But the ad didn't go over well, particularly for one woman, who lost her dad to this method of suicide.

Holly Brockwell wrote a touching blog post about her father's suicide and how the ad affected her. As a creative advertising director, Brockwell has good credibility for her reaction: Suicide note

"I understand better than most people the need to do something newsworthy, something talkable, even something outrageous to get those all-important viewing figures. What I don't understand is why a group of strangers have just brought me to tears in order to sell me a car. Why I had to be reminded of the awful moment I knew I'd never see my dad again, and the moments since that he hasn't been there. That birthday party. Results day. Graduation."

Brockwell also posted her father's suicide note, which has gone viral.

A week before Brockwell's blog post, AdWeek had criticized the ad. Apparently, a reporter contacted Hyundai but received no response. That was a warning the company should have heeded.

Now, after more bad press, Hyundai has pulled the ad from YouTube and issued these statements:

Hyundai Motor America Statement:

"We at Hyundai Motor America are shocked and saddened by the depiction of a suicide attempt in an inappropriate European video featuring a Hyundai. Suicide merits thoughtful discussion, not this type of treatment."

Hyundai Motor Company Statement:

"Hyundai Motor deeply and sincerely apologizes for the offensive viral ad.

"The ad was created by an affiliate advertising agency, Innocean Europe, without Hyundai's request or approval. It runs counter to our values as a company and as members of the community. We are very sorry for any offense or distress the video caused. More to the point, Hyundai apologizes to those who have been personally impacted by tragedy."

Discussion Starters:

  • Hyundai's defense is similar to McDonald's, which was criticized for the subway ad mocking mental illness: the ads were created "without Hyundai's request or approval." Do you buy it?
  • We haven't seen a response from Innocean, the ad agency. What, if anything, should they do?
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Ethical Social Media Marketing After the Boston Bombings

An article by Augie Ray, director of social media for a Fortune 100 company, describes the ethics of social media marketing, and gives us several interesting examples from the Boston Marathon tragedy. In contrast to these companies that perhaps crossed an ethical line, recall El Pelon Taqueria, the restaurant that offered help and asked for nothing in return.

Calling it a "desperate attempt to trade on people's feelings," Ray described an NBC Facebook picture of a boy in a hospital bed. The post asks people to "'LIKE' this to wish him a continued speedy recovery." Ray points out that "liking" a post does nothing to help the boy recover.

NBCBayArea

In another example, Ray criticizes Ford for muddying a message with its products. According to Ray, "Ford's use of brand imagery not only reduced the sincerity of the message but demonstrated questionable ethics." For comparison, Ray presents Ford's actual post, at right, next to one without branding, at left. The difference is fairly obvious.

  Ford-thank-you-comparison

Individuals made mistakes as the tragedy was unfolding, too. Author Guy Kawasaki was criticized for continuing to post promotional tweets, as others were suspending theirs. Clearly, he didn't agree with the criticism. He responded, "Loving how people with less [sic] than 1,500 followers are telling me how to tweet."

Discussion Starters:

  • How do you assess these three situations? Do you agree with the criticism of each?
  • Augie Ray offers a sound suggestion for modifying the Ford post. Can you think of something similar for the NBC post? What might make this one more acceptable (read: more compassionate)?
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Carnival Updates Guests with "Improvement" Plans

In a letter from CEO Gerry Cahill, Carnival tries to restore guests' confidence in the brand after several technical and other issues on ships during the past few months. In addition to this letter, Carnival has posted a video on YouTube and created a News and Updates page on Facebook.

Carnival Letter to Guests
In some respects, the letter is a confusing mess. Although the $300 million is more clearly explained in the video, this letter makes it sound as though Carnival is buying hotels: "$300 million to expand the availability of hotel services." Cudos to having some of the main point upfront ("Our goal is to drive continual improvement across all aspects of our customer experience"), but isn't much of the main point at the end, where Cahill thanks guests for their loyalty?

Also, the letter seems overly jargony for typical Carnival guests. The company just wants them to book another cruise, right? The encouragement could be clearer and more direct.

Discussion and Assignment Ideas:

  • Compare Carnival's guest letter, video, and Facebook page. What differences do you see, and how do you account for them; for example, what are the audiences for each?
  • Rewrite the Carnival letter. How can you improve the content, organization, and tone?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Student's Letter Stirs Up Controversy

Like many high school seniors, Suzy Lee Weiss is receiving her share of college rejection letters. Disappointed-and clearly more than a little peeved-Weiss published a letter in The Wall Street Journal, "To (All) the Colleges That Rejected Me."Suzy Lee Weiss

Weiss claims that her 4.5 GPA, 2120 SAT score, and experience as a U.S. Senate page weren't good enough. Partly, she blames her lack of diversity:

"For starters, had I known two years ago what I know now, I would have gladly worn a headdress to school. Show me to any closet, and I would've happily come out of it. 'Diversity!' I offer about as much diversity as a saltine cracker. If it were up to me, I would've been any of the diversities: Navajo, Pacific Islander, anything. Sen. Elizabeth Warren, I salute you and your 1/32 Cherokee heritage."

Jokingly, Weiss also blames her parents and uninflated job titles.

A student who claims "I took your spot at Harvard," wrote a snarky response to Weiss, including,

"But when my parents got divorced and my mom came out of the closet and hooked up with the ¼ Navajo lady neighbor, I closed my textbooks and put down my pen. I figured-why bother? I'm a black female from the inner city with divorced parents, a gay mother, and a part-Native American stepmother. Every college was going to recruit me like I had a great jump shot. . . .

"As for me-I'm set for life. Obama is president, racism has ended, and law schools have already come a-callin." 

Discussion Starters:

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RBC Responds to Outsourcing Plans

The Royal Bank of Canada is under fire for replacing 45 employees with oversees workers. A representative of RBC admits that work is being moved to another supplier, and current employees are training their replacements. The company is looking for new jobs for the displaced workers, who will leave at the end of the month. The new supplier is iGATE Corp., an Indian multinational outsourcing firm.

In an interview, RBC HR chief Zabeen Hirji tried to explain that RBC isn't hiring the workers, and the workers aren't replacing RBC employees-just transitioning to the new staff. Both are tough sells. First, RBC hired the supplier who is hiring the workers (so they have some accountability). Second, having interim workers doesn't change the outcome: people are losing their jobs, and-as it appears-foreign workers will be doing the work. The reporter called the distinction "semantics" and said, "I get what you're trying to sell, but I'm not sure I'm buying it."

Criticism is high, particularly the concern that RBC is violating federal rules that foreign workers may not replace Canadian citizens. In response, the bank published a statement that said, "External suppliers with the right skills allow us to introduce new efficiencies, continually improve our service at reduced cost and reinvest in initiatives that enhance the client experience. Agreements with our suppliers include strict controls and ongoing monitoring to ensure full compliance with all regulatory requirements."

Public backlash is also high. A Facebook page, Boycott Royal Bank of Canada, has 7,600 likes.

Discussion Starters:

  • Analyze Zabeen Hirji's interview. What does she do well, and what could be improved? What are her strongest and weakest arguments?
  • Overall, do you buy RBC's position?
  • One article referred to Hirji's "corporate-speak explanation and histrionic hand gestures." Do you agree with this characterization?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Lone Star College Communicates Stabbings

At least 14 students were stabbed on the Lone Star Community College campus near Houston, TX. One student critically injured two others, as he ran to different buildings, stabbing people with an Exacto knife. When the suspect, known only as "James," was tackled, he said, "I give up. I give up."

The college posted an emergency alert on its website, and the school went into lock-down, with students held in classrooms until more information was known.

Lone Star

The college told students, "Stay away from the area. Seek shelter in a secure location until the incident is resolved." This is sound advice and reminds us of Virginia Tech's emails during the 2007 shootings-although some of those messages came too late.

Image source.

Discussion Starters:

  • Assess the college's emergency web page. What works well, and what could be improved?
  • What additional communications would you recommend that the college send to students, faculty and staff, alumni, and parents? What medium should be used for each group?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Carnival Responds to Yet More Ship Trouble

Are all of Carnival Cruise's recent ship problems unrelated? That's what the company would like the public to believe. Carnival's Triumph-which was stranded in Alabama last month-broke free from its moorings. Hurricane-link winds blew the ship from its anchors and threw two shipyard employees into the Mobile River. Although one man was found, another is still missing.

Although the crises are mounting for the cruise company, it's getting better at responding via social media. The company quickly tweeted about the situation and posted several updates throughout the day:

Carnival tweet

 Carnival also posted this statement to its Facebook page:

April 3, 2013, 7PM ET

Earlier this afternoon, due to strong winds that reached speeds exceeding 70 miles per hour during a severe storm in Mobile, Ala., Carnival Triumph, which was in wet dock at a Mobile shipyard, broke away from its moorings. The ship drifted, and was secured.

With the assistance of tugboats on site, the ship has been moved to the Mobile Cruise Terminal. Lines have moored the ship, and, as a precaution, tugboats will remain alongside the vessel as well.

All of the approximately 600 crew and 200 contractors who were onboard the vessel are safe and have been accounted for through a roll call. There are no reports of injuries. While assessment of damage to the ship is ongoing, initial indications suggest the damage is limited.

According to reports, two shipyard employees on an adjacent pier fell into the water. One has reportedly been rescued by the U.S. Coast Guard and the search continues for the second. Our thoughts and prayers are with the missing shipyard employee and the family.

Discussion Starters:

  • Assess Carnival's response on social media. How else is the company using Facebook and Twitter to communicate during this crisis?
  • How can Carnival rebuild the brand and explain the recent incidents as separate and distinct from one another?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Rutgers Coach Gets Terminated—and Apologizes

Rutgers basketball coach Mike Rice was terminated for abusive behavior towards his players. The decision was a surprise only because it came months after Rice's suspension from the university.

The videos of Rice's interactions with players are shocking: throwing balls at them, pushing them, and calling them homophobic slurs. But the university's decision last year was to suspend him, fine him $75,000, and send him to anger management classes.

Only recently-within a day after a video of Rice became public-did the university decide to terminate his employment.

 Athletic Director Tim Pernetti is taking responsibility for the initial decision:

"I am responsible for the decision to attempt a rehabilitation of Coach Rice. Dismissal and corrective action were debated in December, and I thought it was in the best interest of everyone to rehabilitate, but I was wrong. Moving forward, I will work to regain the trust of the Rutgers community."

 Rice did apologize in this video interview:

New Jersey Governor Chris Christie weighed in on the situation:

"Rutgers has done the right thing by firing Mr. Rice, but that still doesn't resolve questions about how he was allowed to continue overseeing college students after this behavior first came to the attention of Rutgers administration last year.

"I'm puzzled as to how anyone could think Mr. Rice was someone who should be representing our state university on a national level.

"I expect a full and detailed explanation from the Rutgers administration as to why Mr. Rice was not dismissed sooner and how exactly that decision was made. If answers aren't forthcoming, we are prepared to do what's needed to get them for the people of New Jersey."

Discussion Starters:

  • What's your view of the athletic director's statement: a noble admission, poor showing for a bad decision, or something else?
  • How do you assess Governor Christie's statement? Why would a state governor insert himself in this situation?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Ford Regrets "Distasteful" Ads

Ford is doing damage control after a PR firm created two ads showing a Figo truck with women tied up and gagged. In one ad, the driver is former Italian prime minister Silvio Berlusconi, in the other, Paris Hilton (with Kardashians in tow). The tag line for both ads is "Leave your worries behind with Figo's extra-large boot."

Ford ad

Ford ad2

JWT India, the PR firm, admitted to creating the ads as mock-ups, or creative examples, without Ford's approval. Still, WPP, JWT's parent company repudiated the ads:

"We deeply regret the publishing of posters that were distasteful and contrary to the standards of professionalism and decency within WPP Group. These were never intended for paid publication and should never have been created, let alone uploaded to the Internet. This was the result of individuals acting without proper oversight and appropriate actions have been taken within the agency where they work to deal with the situation."

Although the company wasn't involved in the design, Ford submitted its own statement to explain the ads:

"We deeply regret this incident and agree with our agency partners that it should have never happened. The posters are contrary to the standards of professionalism and decency within Ford and our agency partners. Together with our partners, we are reviewing approval and oversight processes to help ensure nothing like this ever happens again."

Discussion Starters:

  • Consider the view of JTW's creative team. What is possibly their defense of the ads?
  • Assess the two companies' statements. In what ways did they handle the response well, and how could they have improved the response?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

IRS Criticized for $60,000 Training Video

You would think that government agencies would learn the lesson that taxpayers don't like footing the bill for expensive training. About this time last year, the General Services Administration (GSA), which oversees purchasing and cost-cutting policies, was caught spending $822,000 at a conference in Las Vegas. Now, the IRS is being criticized for creating a $60,000 "Star Trek" parody video for leadership training.

Congressman Charles Boustany, chairman of the Ways and Means Committee's subcommittee on Oversight, echoed the criticism:

"There is nothing more infuriating to a taxpayer than to find out the government is using their hard-earned dollars in a way that is frivolous.  The IRS admitted as much when it disclosed that it no longer produces such videos."

Acting IRS commissioner Steven T. Miller responded to the criticism in a letter. He conceded that "A video of this type would not be made today" and wrote, 

 

"The IRS recognizes and takes seriously our obligation to be good stewards of government resources and taxpayer dollars. There is no mistaking that this video did not reflect the best stewardship of resources."

However, he also defended the Star Trek and other "training" videos: 

 

"The video series with an island theme provided filing season training for 1,900 employees in our Taxpayer Assistance Centers in 400 locations. This example of video training alone saved the IRS about $1.5 million each year compared to the costs of training the employees in person." 
 
When Miller refers to the "island theme," he means Gilligan's Island, of course.

 

Miller also touted a video, "When Will I Get My Refund?" which has been viewed almost a million times on YouTube.

Discussion Starters: 

  • What's your view of the IRS' video series: justifiable business expense, flagrant misuse of taxpayer dollars, or something else? 
  • What are alternatives for the IRS to get its points across? Could the agency use another approach for training on specific topics?
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