Gap Responds Swiftly to Racist Comments

When Gap heard one of its ads was graffitied with racist comments, the company responded quickly.

Gap created an ad featuring Waris Ahluwalia, an Indian-American designer and actor, and Quentin Jones, a model and filmmaker. Much of the reaction was positive, but not everyone was happy with the portrayal. This version of the ad made the rounds on Twitter:

Gap ad

When Gap learned of the graffitied ad, the company asked for more information, which is appropriate before deciding how to respond. Soon after, Gap changed its Twitter banner to the original image:

Gap response 2

Support for Gap's response traveled throughout Twitter, with people thanking Gap and promising to shop the store for the holidays.

Still, Gap's other ads as part of the "Make Love" campaign are getting mixed reviews. An ad featuring two men was defaced with homophobic comments. That one was ordered removed by the mayor of Chicago.

Image source.

Discussion Starters:

  • What's your assessment of Gap's response? What worked well?
  • I don't see any Gap comments or tweets about the situation. Should the company have done anything else? 
Read More
07: Persuasive, 08: Bad News Amy Newman 07: Persuasive, 08: Bad News Amy Newman

No Apology About the Metro-North Derailment?

Metro-North is communicating little since a railroad from Poughkeepsie, NY, to Grand Central Station, NYC, derailed, leaving 67 people injured and 4 dead-and an apology doesn't seem forthcoming. No where online does the organization seem to show remorse or any emotion for the impact on people. 

Metropolitan Transit Authority (MTA) communications have been paltry, focusing on service issues alone. I suspect the organization is operating under old-school rules, with lawyers cautioning against an apology for fear of admitting guilt. If this is the case, it's a strange mindset: it's unlikely the passengers are responsible in some way, and we know that the train was traveling 82 m.p.h. on a curve with a 30 m.p.h. limit. Signs are pointing towards a sleeping conductor, and lawsuits have already been filed. Why doesn't the MTA do the right thing and show some remorse?

The Metropolitan Transportation Authority(MTA) website is a curious mix of Christmas tidings, service announcements, coupons, and hidden messages. Under the "Transparency" tab on site, under the title "Current News," we see the latest articles, including December 2, when the accident occured:

Wednesday, December 4, 2013 - 18:43
MTA Metro-North Railroad Announces Full Hudson Line Service Thursday

Wednesday, December 4, 2013 - 15:12
See A Christmas Story,The Musical with LIRR

Wednesday, December 4, 2013 - 15:06
LIRR Gets You to Radio City's Christmas Spectacular

Wednesday, December 4, 2013 - 14:53
Our Gift to You – Coupon Savings!

Wednesday, December 4, 2013 - 13:52
Metro-North Crews Rebuild Spuyten Duyvil Tracks

Tuesday, December 3, 2013 - 15:03
Six Lanes For Holiday Travelers At Bronx-Whitestone

Monday, December 2, 2013 - 10:21
Metro-North Hudson Line Service Alert

The article on December 2, "Metro-North Hudson Line Service Alert" is where we find the news. But the bad news is assumed (never previously announced) in the first paragraph and then introduced, oddly, in the ninth paragraph. No mention is made of the 11 critical injuries and four deaths caused by the accident:

Following Sunday's derailment of a Hudson Line train in the Bronx, MTA Metro-North Railroad is operating limited service on the Hudson Line between Poughkeepsie and Yonkers. For travel to Manhattan, customers can catch a shuttle bus at the Yonkers Station to connect with the 242nd Street terminus of the Broadway 1 Subway Line Icon local subway.

New York City Subways will operate two additional 1 Subway Line Icon local trains per hour during the peak periods.

Hudson Line will continue to be cross-honored on the subway.

Many of the 26,000 people who use the Hudson Line on an average weekday are encouraged to ride the Harlem Line as an alternative.

People who do not have to travel are urged to telecommute. People should expect crowded trains.
In cooperation with Westchester and Putnam counties and local municipalities, special parking is being arranged to accommodate additional drivers at the Southeast Station at the northern terminus of the Harlem line and at KensicoDam, which is in walking distance to the Valhalla station.  Riders should consult mta.info for additional information on the continuing repair effort and service restoration.

Metro-North Customer Service representatives will be on hand to assist customers in making the transfers.

Cranes and other special heavy equipment are being positioned to remove the rail cars from the area so that repairs can begin. The equipment will arrive this evening begin work following clearance from the NTSB and work will continue through the night.

The accident occurred just before 7:30 a.m. on Sunday, a southbound, Hudson Line train with about 120 passengers on board derailed just north of the Spuyten Duyvil station in the Bronx. All cars derailed.

The National Transportation Safety Board sent a team of investigators who arrived on Sunday and immediately began documenting the scene.  Metro-North is cooperating fully with that investigation. With NTSB approval, Metro-North workers will begin clearing the cars, using cranes and heavy equipment.

Customers are advised to check the website for the latest service updates.

A Twitter search for an apology revealed nothing. Metro-North tweeted a flurry of apologies about service failures before the accident, and one rider posted an MTA text message apologizing for service back in August.

  Metro-North tweets

MTA 2

A NY Daily News article from November 11 tells us we should expect nothing like an apology:

"The MTA doesn't issue an apology when someone is hit by a subway train - and it doesn't whip out the checkbook, either.

"About 90% of the 92 "man-under" lawsuits that were resolved in the last five years ended in the Metropolitan Transportation Authority's favor, according to a breakdown by the MTA.

"The MTA didn't pay a dime in 73 of those cases. It dispensed with another nine cases with paltry go-away payments averaging $40,000, according to the authority's information. Five big cases did result in payoffs totaling $33 million. . . ."

Between Sunday, when the accident occurred, and today, Thursday, at noon, Metro-North tweeted about 85 times. Three of those tweets apologize only for service issues.

The only hint of humanity seems to be in this tweet:

MTA 4

Discussion Starters:

  • How is the MTA different from other organizations we have seen apologize over the past several years?
  • What is the legal perspective on apologies? How can a management team effectively balance this with humanity?
  • Draft a tweet, news release, and email to victims' families to apologize for the derailment.
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Study Finds Facebook Improves Image During a Crisis

FBA Missouri School of Journalism study found that Facebook posts improved how people perceived organizations during a crisis. A doctoral candidate showed study participants two fictional stories about universities in crisis. Then, participants read Facebook posts by each university and were asked how the felt about the crisis. Attitudes about the organizations improved, and participants thought the crisis was less severe.

Seoyeon Hong also found that a narrative, or storytelling, type of writing in the Facebook posts was more effective than a style that wasn't narrative:

"This indicates that the effect of narrative tone in organizational statements during crises increases perceived conversational human voice, which represents a high level of engagement and best communicates trust, satisfaction, and commitment to the audience. This is an important practice for public relations professionals because perceptions that an organization is sincerely trying to provide timely and accurate information during a crisis can lead to not only more favorable attitudes toward the organization, but also perceptions of less responsibility the organization has for causing the crisis."

Discussion Starters:

  • Does this research surprise you? Why or why not?
  • Find an example of an organizationi's Facebook post written as a narrative. What is effective about that style?
Read More
07: Persuasive, 08: Bad News Amy Newman 07: Persuasive, 08: Bad News Amy Newman

Yale Communicates During "Lockdown"

Yale University had a communication challenge after a threatening phone call caused a campus lockdown. A student reported that his roommate was planning to go to campus with a gun. Later, the police interviewed a witness who saw someone with a "long gun." The call turned out to be a hoax, and reports of someone with a gun could have been a police officer, who were making their way to the scene.

Still, the university sprung into action, possibly with concerns about another Virginia Tech or Sandy Hook shooting. The university policy department provided updates on its Facebook Page.

  Yale FB post

Appropriate for crisis communications, these bad-news messages use the direct style: the main point is right up front.

Yale FB pos2t

Now, on Yale's Emergency Management site, we see no mention of a potential gunman. Likely the university would like to see the entire incident go away.

Discussion Starters:

  • Look for other university communications about the incident. What else can you find? 
  • Although I can't find the email on the web, the articles reference one sent from the university to students and parents. What do you think was included in the message? Draft a possible outline of the email. 
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Walmart Workers Plan Strike on Black Friday

Our Walmart, an organization of employees, is planning a strike on Friday, November 29, Black Friday. On its website, Our Walmart conveys the group's mission:

OUR Walmart Vision

We envision a future in which our company treats us, the Associates of Walmart, with respect and dignity. We envision a world where we succeed in our careers, our company succeeds in business, our customers receive great service and value, and Walmart and Associates share all of these goals.

Called "Black Friday Walmart Protests," the strike is planned across the U.S. This map shows locations where associates have requested a strike.

Walmart protest map

Discussion Starters:

  • Clearly, Our Walmart uses emotional appeal as the basis for its arguments. What about the video works well and what does not?
  • Assess the Our Walmart website for effective design, organization, word choice, and so on. What improvements would you recommend for the site owners?
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

New "Teach" Campaign

The Department of Education is trying a new approach to get top students to become teachers. With help from Teach for America, Microsoft, State Farm, the teachers' unions, "Make More. Teach," videos feature teachers doing interesting work and show teaching as a rewarding profession. 

Taylor Mali narrates the videos. Mali became associated with teaching after his comedy bit, "What Teachers Make." His commentary responded to criticism from someone asking the question about a teacher's salary.

The recruiting campaign is important, considering how the U.S. lags behind other countries in recruiting the best students. The comparison is clear in a McKinsey report, "Closing the Talent Gap: Attracting and Retaining Top-third Graduates to Careers in Teaching," which is featured in of Business Communication: In Person, In Print Online, Chapter 10.

Discussion Starters:

  • Watch the videos. In what ways are they similar to the military recruiting ads?
  • Analyze the persuasive strategies used. What examples do you find of logical arguments, emotional appeals, and credibility? How are visuals, voice, and music used? What types of people are portrayed, and so on?
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Another Video from Low Pay Is Not OK

Here's another video brought to us by Low Pay Is Not OK, the organization promoting higher wages for fast-food workers. The last video was a captioned telephone call from McDonald's employee Nancy Salgado, asking about health and other benefits. This one takes issue with advice from the company to its employees. 

In an email, the video was advertised with this introductory text:

Don't they read this stuff before they post it on the web?

McDonald's knows they don't pay their employees like me enough to make ends meet. But instead of paying us enough to get by, their "help" consists of a website that's chock full of CLUELESS (and offensive!) tips. You have to see it to believe it.

Titled, "McDonald's Really Told Their Employees to Quit Complaining," the video refers to documentation for employees:

 Discussion Starters:

  • What persuasion strategies are used in the video? Which are most and least effective in encouraging higher pay for workers?
  • The music and graphics are similar to those used in the previous video. In what ways do they support and detract from the message?
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Reinforcing Advertising Rules for Bloggers

BlogBloggers who are paid by companies to advertise a product or service must come clean about the relationship, according to the U.K. Advertising Standards Authority (ASA). This should be just a reminder to bloggers because the rules aren't new-but apparently they aren't followed consistently.

The ASA article indicates that bloggers asked for clarification:

"Why are we doing this? We've received a steady stream of enquiries from bloggers wanting clarity on this issue and how the rules apply to their blogs."

Below are the rules:

Rules

2.1    Marketing communications must be obviously identifiable as such.

2.2    Unsolicited e-mail marketing communications must be obviously identifiable as marketing communications without the need to open them (see rule 10.6).

2.3    Marketing communications must not falsely claim or imply that the marketer is acting as a consumer or for purposes outside its trade, business, craft or profession; marketing communications must make clear their commercial intent, if that is not obvious from the context.

2.4    Marketers and publishers must make clear that advertorials are marketing communications; for example, by heading them "advertisement feature."

Part of the issue may be that bloggers are paid but asked by companies not to disclose the relationship. Although this puts bloggers in a difficult position, the rules-and ethics-are clear. Perhaps companies need the reminder, not bloggers.

Image source

Discussion Starters:

  • What situations may be blurry for bloggers? Think of a few examples when the rules may not be clear.
  • What are the U.S. rules for bloggers? Research the issue and compare the advice for U.S. blogger.
  • What are the rules for people who tweet? Should celebrities, for example, reveal their relationships with companies they promote?
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Guns & Ammo Editor Resigns Over Controversial Article

Guns_Ammo_December_2013_CoverGuns & Ammo editor Jim Bequette is stepping down after publishing an editorial, "All Constitutional Rights Need Regulation, Even 2nd Amendment." As a firearms magazine, Guns & Ammo doesn't typically include articles about regulation. 

Bequette's apology was posted to the website:

"As editor of Guns & Ammo, I owe each and every reader a personal apology.

"No excuses, no backtracking.

"Dick Metcalf's 'Backstop' column in the December issue has aroused unprecedented controversy. Readers are hopping mad about it, and some are questioning Guns & Ammo's commitment to the Second Amendment. I understand why."

 

Continue reading the apology.

 
Discussion Starters:
  • Read the entire apology. What persuasion principles does Bequette use in the piece?
  • Assess Bequette's decisions: why would he run the piece and later apologize for it?
Read More

McDonald's Employee Help Line Is Recorded

You many remember Nancy Salgado, who recently confronted McDonald's USA President about her wages. She claims to be working at the restaurant chain for 10 years and is making $8.25 an hour.

The organization "Low Pay Is Not OK" posted a recording of her call to McDonald's employee help line. I received an email about the incident: 

  McDonald's help line

Video captions of the phone interaction focus on public assistance for McDonald's workers: 

 

Discussion Starters: 

  • How do you assess the organization's argument that the public is supplementing workers' wages? In what ways do you find this argument convincing, and how does it fall short?
  • Imagine that you're the person who received Salgado's call on the help line. How would you react to the posted video? Should she have done anything differently on the call?
  • The recording is clearly edited. What do you think may have happened during the deleted portions? Does that affect your reaction? 
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Former Hostess of Heart Attack Grill Tells All

Heart Attack GrillI guess we should expect unorthodox practices at a restaurant called Heart Attack Grill, but still, an ex-hostess's comments on Reddit are surprising. In an opening post, the former employee welcomes questions:

"I am an ex-Hostess of the controversial Heart Attack Grill. If you aren't familiar it's the restaurant located in Downtown Vegas who is known for their 9000 calorie Quadruple Bypass Burger, Butterfat Milkshakes, and the infamous "if you weigh 350 pounds you eat for free" gimmick. It is a hospital themed restaurant where all customers have to wear hospital gowns, and if you don't finish your food we spanked you with a paddle. Ask me anything!"

One jarring admission on the website (if it's true) is that the employee's manager had her video record a person who passed out in the restaurant:

"At one point, the man passed out. I heard him knock onto the hard ground. We had to call an ambulance. A manager made me take out my cell phone to record a video of the whole thing, so they could send it to the media. It was on a Friday afternoon, and he hoped it would make the news so they could have a busy weekend. The food may or may not have been responsible for what happened to that man."

With a name like Heart Attack Grill, you don't shy away from controversy. Rather, the restaurant founder and owner Jon Basso promotes the food, admitting in a Bloomberg interview, "I am probably the only restaurateur in the entire world who is unapologetically telling you that my food is bad for you, that it will kill you, and that you should stay away from it."

The Heart Attack Grill website describes the business: selling high-calorie food (including an 8,000-calorie Quadruple Bypass Burger), having customers dress in hospital gowns, spanking customers who don't finish their meal, and offering free meals to customers weighing over 350 pounds. 

Discussion Starters:

  • What's your view of the restaurant's "unapologetic" strategy? 
  • How do you assess the ex-hostess's Reddit posts? After reading several of them, do you think she helped or hurt the brand? 
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Starbucks' Petition to End the Government Shutdown

If you've been to Starbucks lately, you may have seen a petition to end the government shutdown. The company is promoting the petition through several channels.

In a brief video on Instagram, CEO Howard Schultz asks customers to "Join us in our stores to sign a petition to ask our government to come together, solve our problems, and open up our government."

Starbucks petition

With the hashtag #ComeTogether, Starbucks is inspiring its 4.7 million followers to sign, and full-page print ads in The New York Times, The Wall Street Journal, USA Today and The Washington Post are promoting the campaign. 

If that's not enough, Starbucks is asking people to text a code to encourage the government to get back to work.

Discussion Starters:

  • This is not the first political issue that Starbucks has gotten behind. What other recent examples can you find?
  • What are the risks and rewards for Starbucks' involvement in this campaign? Why would the company-and Schultz particularly-want to deal with this controversy?
  • Overall, do you think it's a good idea? Why or why not?
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Employee Confronts McDonald's President at Dinner

The president of McDonald's USA Jeff Stratton was caught off guard during a dinner in Chicago. Ten-year-employee Nancy Salgado interrupted the event at the Union League Club of Chicago when Stratton was speaking. The confrontation was captured on video and is described by TheRealNews.com.

On the video, Salgado says, "I'm a single mother of two. It's really hard for me to feed my two kids and struggle day to day. Do you think this is fair that I have to be making $8.25 when I've been working at McDonald's for 10 years?"

Stratton responded, "I've been there 40 years." Then, Salgado was told she would be arrested. She and six other protestors were given trespassing tickets. 

Discussion Starters:

  • What's your view of the situation? What would lead Salgado to confront the president in this way? On the other hand, what other avenues does she have?
  • How do you assess Stratton's response? What could he have said or done differently?

 

Read More

Twitter CEO Responds to Criticism About Lack of Women Execs

As Twitter's IPO approaches, the company is being criticized for having an all-white board and only one woman on its executive team (an attorney who was hired five weeks ago). Also, although Twitter has females in VP business roles, none are in technical roles.

Twitter management has acknowledged the problem. Back in March, chief technology officer Adam Messinger told The New York Times: "Half our customers, more or less, are women, and we want to have empathy for our customers, and part of that is having a wide variety of opinions in-house. It's also something a lot of people here think is the right thing to do." He also said, "There is definitely a supply-side problem." A New York Times writer has since suggested 25 women from a variety of industries who would "bring value beyond a checked box."

In response to the criticism, CEO Dick Costolo attacked Vivek Wadhwa, who was quoted in the NY Times article: 

Costolo Tweet
In a blog post for the Wall Street Journal, "Silicon Valley Has a Code Name for Sexism & Racism," Wadhwa asked for an apology-and flung an insult of his own:

"Yes, Costolo's comments were inappropriate and he owes me a formal apology. But I don't for a moment think that he is overtly sexist or that he deliberately discriminates. I think that he is reflecting a common behavior in Silicon Valley, where power brokers proudly tout their 'pattern recognition' capabilities. They believe they know a successful entrepreneur, engineer, or business executive when they see one. Sadly, the pattern is always a Mark Zuckerberg, Marc Andreessen, Jeff Bezos-or themselves. Nerdy white males."

And the missives continue:

  Costolo Tweet 2

Discussion Starters:

  • Some people have expressed disappointment in what they consider Costolo's defensiveness. What's your view? What could have been a better response?
  • How, if at all, do you think this controversy will affect Twitter's pending IPO? Should the issue of female management be a consideration as the comany goes public?
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Riders Stuck on Roller Coaster for More Than Two Hours

Twelve thrill-seekers got more than they wanted when a roller coaster at Universal Orlando malfunctioned and left them in the air for more than two hours. The twelve-story Rip Ride Rockit reaches speeds of 65 mph and, according to the webpage, "features six near-miss moments and first-ever thrills including a record-breaking loop."

Naturally, the fiasco was recorded on a cell phone.

Tom Schroder, a spokesperson for the park, called the problem a "technical glitch" and said, "We are going to work to understand what happened tonight before we reopen the ride again."

It took a while, but rescue teams moved the stuck car to a horizontal position that allowed people to walk along a platform towards elevators to ground.

With more than 99,000 followers, Universal Orlando's Twitter page appropriately addressed the situation:

Universal Orlando

Discussion Starters:

  • Assess the communications we have from Universal Orlando so far. What's your view of the spokesperson's statement and the tweets?
  • What would you suggest the company tweet when the ride reopens? Write a few tweets that would be appropriate to the situation.
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

HP Asks Remote Employees to Work at the Office

HP logoFollowing in Yahoo's footsteps, HP is next major company to ask employees who work from home to come into the office. Part of CEO Meg Whitman's turnaround plan for the company, employees are being asked to make a case for working remotely.

In a Q&A document, the company explains the rationale for the change, which is similar to Yahoo's, focusing on collaboration and innovation:

My Workplace, My HP Community. What is the goal of the effort?

As part of the company's overall turnaround strategy, there is an effort underway to bring employees who currently work from home to work from the office. This effort is part of the company's cultural shift and will help create a more connected workforce and drive greater collaboration and innovation. In some major sites thereto large amount of underutilized workspace and we want to make the best use of our space. HP will maintain flexible work arrangement options, but with greater clarity and consistency about how to use them.

Why now?

During this critical turnaround period, HP needs all hands on deck. We recognize that in the past, we may have asked certain employees to work from home for various reasons. We now need to build a stronger culture of engagement and collaboration and the more employees we get into the office the better company we will be. Belief in the power of our people is a core principle of the HP Way Now. Employees are at the center of what we do, we achieve competitive advantages through our people. HP has amazing employees who are driving great change. We believe the more employees we have working together, the better for HP and our customers.

How does this support the company strategy end culture?

We want to make HP a great place to work and build a stronger HP Way Now culture of engagement and collaboration. Employees who are more connected tend to be more collaborative, productive, and knowledgeable They will also have a greater sense of the company goals and experience a greater sense of pride in HP. We believe that having employees work from the office will unite and inspire them to achieve higher levels of operational excellence and innovation.

Which employees are affected?

The overall effort is designed to increase collaboration among all employees, including employees who regularly work from home despite having an assigned desk at a site, telework employees who are near HP sites, and those who regularly work in an office now. Employees with part-time or job share arrangements are expected to work from the office. Where legally permissible, contingent workers also are expected to work from the office.

 An HP spokesperson gave this statement to AllThingsD:

"Over the past several years, HP has been focused on developing workplaces that attract employees to the office and encourage effective and collaborative work. Our investments in real estate and IT infrastructure have made it possible to now accommodate more employees in the office and also support new styles of working which we believe will further HP's business strategies and objectives. Flexibility continues to be a core operating principle at HP."

Discussion Starters:

  • Compare Yahoo's email to employees to HP's Q&A. What similarities and differences do you notice, and what could account for them?
  • Which message is more effective and why?
  • List all of the possible questions and concerns that employees would have about the change. If you were part of HP management, how would you address them?
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Another Daniel Loeb Letter

Sotheby'sFollowers of business news may remember hedge fund manager Dan Loeb's letter to the Yahoo board of directors calling for the termination of Yahoo's now former CEO Scott Thompson. Thompson had falsified some information on his resume.

Now Loeb is after Sotheby's chairman and CEO Bill Ruprecht. This latest letter is more personal, according to a Reuters opinion writer, than his letter about Yahoo-or another letter about Sony's strategy. In this case, Reuters writer Felix Salman speculates that Loeb will not be successful in "outsting" Ruprecht, but he may get a stock price boost he's looking for.

Here are headings of the full letter

  • Pressing Issues at Sotheby's
  • Management's Lack of Alignment with Shareholders
  • Limitations in Formulating and Executing Strategic Initiatives
  • A Prescription for Repairing Sotheby's

Discussion Starters:

  • Compare Loeb's three letters: to Yahoo, Sony, and Sotheby's. What differences do you notice, and what could account for them?
  • In what ways do you agree or disagree with the Reuters writer's view?

 

Read More

Bertolli Capitalizes on Barilla's Anti-Gay Comments

Competitor Bertolli is taking full advantage of the CEO of Barilla pasta's anti-gay comments.

After saying that he'll never make ads featuring gay people, CEO Guido Barilla is facing a new foe: Bertolli. Promising "Love and pasta for all!" the company posted this image to its Facebook timeline:

Bertolli

Given its history, Bertolli seems to be a supporter from way back. AdWeek discovered this commercial from a "couple of years" ago:

Discussion Starters:

  • What are the potential risks of Bertolli's advertising strategy?
  • If you were Guido Barilla, what, if anything, would you do in response?
Read More

Should Jamie Dimon Resign? CNBC Says No.

CNBC is accused of being less than objective in assessing whether JP Morgan Chase CEO Jamie Dimon should resign. In a pointed blog post, Reuters reporter Felix Salmon refers to CNBC producers and hosts as Dimon's "biggest cheerleaders" and criticizes them of not considering the whole story. Titled, "The JP Morgan apologists of CNBC," the post includes a clip from CNBC showing hosts asking leading questions. 

Readers may recall that JP Morgan Chase lost a risky trading hedge that could amount to to $20 billion in fines.

 Salmon highlights this excerpt from the video as an example of CNBC's tone:

Maria Bartiromo: Alex, to you first. Legal problems aside, JP Morgan remains one of the best, if not the best performing major bank in the world today. You believe the leader of that bank should step down?

Alex Pareene: I think that any time you're looking at the greatest fine in the history of Wall Street regulation, it's really worth asking should this guy stay in his job. In any other industry - I can't think of another industry. If you managed a restaurant, and it got the biggest health department fine in the history of restaurants, no one would say "Yeah, but the restaurant's making a lot of money. There's only a little bit of poison in the food."

The arguments on both sides use several reasoning types we discuss in class: criteria, analogy, dissocation, and others.

Discussion Starters:

  • How do you assess the interview? Is CNBC biased in its view?
  • How are principles of persuasion used in the arguments? What examples do you see of reasoning types, fallacies, and evidence?
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

AIG: Bonus Criticism "Just as Bad" as Lynchings

CEO AIGAIG's CEO has apologized for comparing criticism of employee bonuses to lynching.

In a Wall Street Journal article, Chief Executive Bob Benmosche was quoted as saying that anger about bonuses "was intended to stir public anger, to get everybody out there with their pitch forks and their hangman nooses, and all that -- sort of like what we did in the Deep South <decades ago>. And I think it was just as bad and just as wrong."

The criticism of bonuses began around 2009 during the financial meltdown when, in the midst of bailouts from the government, financial sector employees were collecting large bonuses. The banks' defense was that these employees were contractually due the bonuses, that the bonuses were essential to retain talent, and that only a few employees were responsible for bad decisions that caused the collapse. (I'm paraphrasing here.)

Reuters explains the lynchings in this way: "Thousands of people, mainly African-Americans and primarily in the South, were beaten, hanged and killed in the 19th and 20th centuries by racist mobs."

Do you see the analogy?

In a statement, Benmoshce later said, "It was a poor choice of words. I never meant to offend anyone by it."

Image source.

Discussion Starters:

  • Several news sources (Al Jazeera, Reuters, and others) called Benmoshe's statement an "apology." Is it? What does a apology typically include?
  • Read an article in Rolling Stone discussing the comment and other perceived failings of Wall Street. Analyze the author's arguments. How does he use logical arguments, emotional appeals, and credibility to make his points? Which are strongest and which are weakest?
Read More