Sponsorships Getting Less Clear
The Federal Trade Commission has guidelines for celebrities and bloggers to reveal their sponsorship ties, but they are not consistently followed, and some say the guidelines could be clearer. Companies shell out thousands of dollars for people with large numbers of followers to mention their brands on social media. But what's the difference between testimony and an ad?
Mary K. Engle, the FTC's associate director for advertising practices told The New York Times that, although an endorsement has to be clear, they are not "prescriptive" about what's included in a social mention. The FTC guidelines suggest starting a post with something like "#Ad." According to the Times, "For example, simply saying 'thank you' to a brand or adding '#sp' or '#spon' probably isn't clear enough, while saying a brand is a 'partner' probably is," Engle said.
The organization Truth in Advertising wrote a letter to the Kardashian/Jenner family about recent posts they consider to be deceptive marketing. On her Instagram account, Kylie Jenner displays Fit Tea but fails to mention that this is a paid endorsement.
Discussion Starters:
- Should the FTC create more specific guidelines for what to include in social media posts? Or should celebrities know better?
- What's the value of disclosing that a celebrity is compensated by a brand? How, if it all, would a clearer marking affect your decision to buy a product?
Mylan CEO Defends EpiPen Price Hike
Fighting critics who call the price hike "greedy" and "outrageous," Mylan CEO Heather Bresch makes no excuses for running a for-profit company. Yet the cost of an EpiPen has increased from about $165 in 2011 to more than $600 today.
In a CNBC interview, Bresch stressed that "everybody who needs an EpiPen, has an EpiPen." She focused the costs involved in making the product widely available.
Trying to deflect blame, Bresch said, "This is a healthcare issue. . . . The system incentivizes higher prices." Pharmacy, retailers, and wholesalers are all taking a cut and are raising their prices.
Discussion Starters:
- Twice, Bresch said, "As a mother..." How effective is this strategy as part of her argument?
- How well does Bresch convey her points? Which arguments do you find most and least convincing?
- CNBC's chart is effective because it shows the dramatic increase over time. What's your view of the caption about skiing?
Costco Credit Card Transition Causes Problems
Costco is doing its best to resolve continued problems after transitioning from American Express to Visa credit cards. The decision was announced in June: 11 million customers would now have Citi and Costco co-branded credit cards, and American Express would no longer be accepted. Issues started early with Citi CEO Michael Corbat addressing questions on an earnings call in June. On the call, Corbat admitted that Citi received a high volume of customer calls:
"We're working through that. We're gaining on it. We're very focused on it. We've got a lot of resources deployed against it, and it's something we can fix in the short order."
Today, customers still have trouble getting through to the call center, and the situation has worsened. One customer posted a screenshot of his phone showing a call that lasted 1 hour and 43 minutes. Others complained that they received an incorrect card or none at all, and automatic payments were stopped.
To make the situation worse, Citi sent emails to some Costco members by mistake. The email should have gone to people who let their memberships expire, so customers thought their accounts had been hacked. Citi spokesperson Jennifer Bombardier focused on the size of the conversion:
"With a conversion of this magnitude - one of the single largest portfolio conversions in history (11 million cards) - and a brand as beloved as Costco, call volumes were unprecedented," Citi told Business Insider. "With a portfolio of this size and eight months of pent up demand during which time we couldn't address questions on the new product or existing accounts as the portfolio was with a different issuer, the call volume was groundbreaking as of June 20th."
In an FAQ on its website, Costco answered common customer questions.
Discussion Starters:
- Who should take the blame for these problems? How can each company explain its role without damaging the partnership and the other's brand?
- Review Costco's FAQ. How helpful do you find the answers? What else could the company include on this page?
Critics of Under Armour's Decision to Cancel a Sponsorship
Under Armour has cancelled its relationship with hunter Sarah Bowmar after reports that her husband, Josh, speared a bear and bragged about it. The Human Society called the spearing "giddy and ruthless."
Although spear hunting is legal, some believe it is inhumane. An Under Armour spokesperson said, "The method used to harvest this animal was reckless and we do not condone it."
According to a Reuters report, Josh Bowmar defended the practice as a quicker, more humane cause of death than bullets or arrows.
On Instagram, Sarah Bowmar expressed her disappointment:
"I love and care about all of you and wanted to let you know that due to recent circumstances and media attention of a LEGAL hunt, @underarmour and @uahunt have terminated their relationship with us due to international social pressure from anti hunters. It really breaks my heart, we lived and breathed the brand for years and gave them everything that we had. We will never speak ill of the company. Just wanted to let everything know our current situation and how heartbroken we are when we did nothing wrong. Receiving that phone call was one of the hardest things I've ever went through. Don't be silent in this. If this bothers you- please reach out to UA and let them know."
This may be a lose-lose situation for Under Armour. Now, people are petitioning for the company to reinstate her contract.
Discussion Starters:
- Did Under Armour make the right decision in cancelling Bowmar's contract? Read more about the public reaction. Should the company reinstate her now?
- How well did Under Armour communicate the decision? Other than the short statement, I don't see any posting on Twitter from the company or its affiliate, @UAHUNT. Should they post something, or let it go?
McDonald's Pulls Kids' Fitness Trackers
After a sizable backlash, McDonald's is pulling fitness trackers for kids. People complained that worrying kids about their weight could cause more problems than good. Brian Cuban, who writes and speaks about his history of an eating disorder and addition, posted the tweet shown here. This story reminds me of the teen magazine that showed girls what type of bathing suit they should wear for their body type. 
Chicago Tribune noted the "apparent hypocrisy of McDonald's encouraging children to exercise while also serving them high-fat foods":
Indeed, the paradox of a fitness monitor wedged in a Happy Meal box alongside chicken nuggets and french fries is hard to ignore. Even the healthiest Happy Meal combination will have kids ingesting 410 calories and 19 grams of fat, according to the company's online nutrition calculator. That's a lot of steps.
In announcing the decision to pull the bands, a McDonald's spokesperson said the company had received "limited reports of potential skin irritations that may be associated with wearing the band." No mention of the controversy was mentioned.
Discussion Starters:
- Should McDonald's have been more forthcoming about the controversy? What could have been the positive and negative consequences of admitting the issue about kids' weight?
- Articles about the story say that people can distinguish between what companies do for the social good and what companies do for themselves. How does that play into the reaction in this case? Are those goals mutually exclusive?
Embarrassment for the Olympic Athletes and an Apology
U.S. Olympic swimmer Ryan Lochte concocted a story about being robbed in Rio de Janiero and later apologized. Lochte said he and three other swimmers were robbed by people claiming to be police officers. Turns out, other U.S. swimmers said Lochte was drunk and unruly, and we learned later what actually happened: he vandalized a gas station bathroom, and armed guards approached him.
Lochte posted an apology on Instagram. But the damage extended far beyond the gas station. Rio officials are angry about the hit this incident may have on the city's reputation, and the Olympic's committee is trying to distance itself from Lochte's behavior.
Lochte's statement hasn't satisfied many people. Quoted in The New York Times, sports commentator Rodrigo Mattos said, "Lochte apologizes but doesn't admit lying. He's still portraying himself as a victim. So much arrogance."
Discussion Starters:
- Why did Lochte lie? How believable was the story, and what role did the other swimmers play?
- Another approach, of course, is to come forward with the truth even before the story got out. What could have been the consequences of this approach?
- Should Lochte have said something different in his apology? What is at stake?
- Do you agree with Mattos's views that Lochte is arrogant? How would you define arrogance, and how does Lochte show this trait?
Biles Handles the Media
In addition to winning an Olympic gold medal for gymnastics, Simone Biles made headlines for handling two difficult situations beautifully.
Tired of hearing some media coverage for the games, Biles shot back, "I'm not the next Usain Bolt or Michael Phelps. I'm the first Simone Biles." An article in The Atlantic called NBC's coverage of the Olympics:
The coverage of women's gymnastics has a long tradition of emphasizing the contrasts of its competitors: traditional girlishness on the one hand, traditionally masculine qualities-"power" chief among them-on the other. And NBC's gymnastics commentators (under a mandate from NBC to address themselves to a notional "Madeleine in Middle America, who doesn't know gymnastics") have reveled in those easy contradictions. Biles stands, they have emphasized, at only 4 feet, 8 inches tall. She giggles a lot. A promotional package NBC aired during Rio's women's gymnastics qualifying round featured Biles's parents talking about her love for shopping. It also showed her getting a manicure.
The article went on to say it was as though NBC were saying, "Look at that girl do all that! She's powerful like Michael Phelps, but a girl!." 
In another incident drawing attention to her (and needing her attention to clear things up), an NBC commentator, Al Trautwig, referred to her parents as Biles's grandfather and his wife. The couple legally adopted and raised Simone. Trautwig repeated his position on social media.
Biles simply said, "I personally don't have a comment. My parents are my parents, and that's it."
Discussion Starters:
- Biles is getting a crash course in media attention. Do you agree with my assessment that she's handling it well? What else can she do?
- Read The Atlantic article about NBC's portrayal of women and the Olympics. Do you agree with the author's criticism? What rings true for you, and what doesn't?
Taking Offense
Two groups are backtracking this week for offensive symbols and language. Are people too sensitive, or should marketers be more careful?
The Trump campaign for president created the first failing: a logo that looked pornographic to some people. A Slate article is titled, "A Hard Look at the Trump-Pence Campaign's Penetrating New Logo." Twitter jokes abound:
- @ellievhall: "When two people love each other very much and want to start a campaign together..."
- @willrahn: "How are we supposed to explain the new Trump logo to our children??"
Although the Trump campaign hasn't responded specifically, the logo no longer appears on the website.
In other news, Forever 21 has pulled t-shirts for boys with sayings such as, "Sorry, I only date models," "Chicks are all over me," and "Ladies Man." Critics say the t-shirts sexualize children.
Forever 21 communicated the decision in a statement: "Forever 21 takes feedback and product concerns very seriously. With regards to the T-shirts in question, after receiving feedback we have taken immediate action to have them removed from our website. We sincerely apologize to anyone who was offended by the products."
Discussion Starters:
- What's your opinion to the initial question: Are people too sensitive, or should marketers be more careful?
- Did the Trump campaign and Forever 21 do the right thing in pulling the logo and t-shirts?
- Should the Trump campaign communicate anything else at this point? Did the Forever 21 statement say enough?
Chipotle's New Film Short
Chipotle needs to win back customers, so it went back to its film-making roots and created a new short video: "A Love Story."
Kids with competing lemonade and orange juice stands grow each and lose sight of natural ingredients. Set to the Backstreet Boys' "I Want It That Way," film is a direct hit to fast-food restaurants like Burger King. The last line is "I never want to hear you say, 'I want it that way.' " The couple, of course, return to fresh fruits and vegetables and live happily ever after.
The end of the video announces Chipotle's rewards program. Like the free burrito, this is a another attempt to rebuild loyalty.
Mark Shambura, Chipotle's brand marketing director, explained the goal: "We think 'Love Story's' message will galvanize our loyalists and remind people of the Chipotle they love." Shambura is not to be confused with Mark Crumpacker, the company's former chief creative and development executive who, before being placed on leave because of a drug arrest, led the company's rebranding efforts.
Discussion Starters:
- One analyst warns that Chipotle shouldn't ignore the core issue of how the company is overcoming the crisis of food safety. How well do you see Chipotle explaining new procedures, etc. to consumers?
- Chipotle's video short, The Scarecrow, with more than 16 million views on YouTube, has been criticized. Some say Chipotle didn't live up to its claims even before the E. coli outbreaks; for example, what does "naturally raised" mean? What criticism could you foresee with the "A Love Story" short?
Red Cross Apologizes for Poster
The Red Cross tried to be inclusive by showing kids of different races in its "Be Cool, Follow the Rules" poster about pool safety. But when you look closely, you see that most white kids are "cool," and most kids of color are "not cool."
The "not cool" kids of color are running, diving over a white kid, and pushing a white kid. The Red Cross responded directly to tweets, for example, "@EmmyBetzThank you for bringing this to our attention. We're removing this from our site immediately & are creating new materials," and "@Jsawyer330We removed this poster within 24 hours. We didn't scrutinize it like we should have, and apologize for any offense."
In addition, the organization issued this statement:
Red Cross Issues Statement on Water Safety Poster
Monday, June 27, 2016 (Washington, D.C.) – The American Red Cross appreciates and is sensitive to the concerns raised regarding one of the water safety posters we produced. We deeply apologize for any misunderstanding, as it was absolutely not our intent to offend anyone. As one of the nation's oldest and largest humanitarian organizations, we are committed to diversity and inclusion in all that we do, every day.
To this end, we have removed the poster from our website and Swim App and have discontinued production. We have notified all of our partner aquatic facilities requesting they take down the poster. Our organization has emphasized to our partners and on social media that it was absolutely not our intent to offend anyone and apologized for this inadvertent action. We are currently in the process of completing a formal agreement with a diversity advocacy organization for their guidance moving forward.
For more than 100 years, part of the Red Cross mission has been to help everyone be safe in, on and around the water. Countless lives have been saved with our water safety educational and aquatics programs. In order to further support our mission and dedication to inclusion, we launched our Aquatics Centennial Campaign (www.redcross.org/centennialswim) in 2014. We are working to reduce the drowning rate in 50 high-risk communities over a 5-year period by helping to teach at least 50,000 more children and adults to swim. With this campaign, we are focusing on areas with higher-than-average drowning rates and participants who otherwise wouldn't have the opportunity to take swim lessons.
Once again, we apologize for any inadvertent misunderstanding with regard to the production of this poster, and believe we have taken every step to address the situation.
Discussion Starters:
- What's your view of the poster? A lifeguard called it "super racist." Do you agree?
- Assess the Red Cross's statement. How does the organization use principles of persuasion to address concerns?
Lancome Criticized for Cancelling a Performer
The cosmetics company Lancome had hired Denise Ho, a Canto-pop star, to perform at a free concert. A democracy activist, Ho was criticized by a Bejing paper, and Lancome cancelled the show. The company now faces criticism, which the South China Morning Post says is its own fault:
"What's a definite no-no is to hire someone like Ho and then promptly ditch her after an official mainland newspaper complains. That not only makes you look spineless and unprincipled, it shows you are incompetent, which is more unforgivable in the corporate world."
Ho had questioned the decision in a statement posted in Chinese on Facebook:
I understand that this was a decision made by Lancôme's head office. Here I demand Lancôme's head office spell out the reasons behind the decision. The company owes me and the public a proper explanation.
Freedom, justice and equality are the values cherished by the people of Hong Kong. If we are penalised for defending our rights and upholding our beliefs, this is not just about me any more. Our value system has been completely distorted.
The company made one short statement: "Hong Kong Actress Denise Ho is not a spokesperson of LANCOME. We are sorry for the confusion caused. Thank you for your continuous support to LANCOME."
Of course, that wasn't enough, and a longer statement, shown here, came later.
Discussion Starters:
- Ho was arrested in the 2014 Umbrella Movement. Should Lancome have known better? Or stuck with its initial decision?
- Assess Lancome's statements. What else, if anything, should the company say?
Zoo Defends Killing Gorilla
Although reports say a boy "fell" into a gorilla cage at a the Cincinnati Zoo and Botanical Garden, the zoo says the boy "climbed through a public barrier." Harambe the gorilla was shot and killed on the spot. A YouTube video showing part of the incident received more than 14 million views so far, and people on both sides of the argument are outraged.
With the hashtag #JusticeforHarambe, animal activists and others question the zoo's decision and blame the parents.
People for the Ethical Treatment of Animals (PETA) says this situation is another example of why people shouldn't gawk at animals in captivity.
The zoo explained the decision in a media statement, in a Facebook post, and during a press conference. The director scolded people who dispute the decision, saying they don't understand silverback behavior and weren't there to assess the situation. He has a point: people view a one-minute clip on YouTube and decide that the gorilla was holding the boy's hand and helping him to safety. But what do we know?
Discussion Starters:
- What's your view, given what you have read about the situation? Did the zoo act appropriately? What else would you like to know in order to make a judgement call?
- Assess the zoo's three communications: media statement, Facebook post, and press conference. What, if anything, can management do differently to address the criticism?
Persuasion for Britain to Leave the EU
British celebrities have joined forces and signed a letter to convince Britons to stay with the European Union.
In the letter, 282 big names (most of which I never heard of) from film, fashion, art, music, and theater focus on "EU markets and influence, access to EU funding, and movement of talent." The letter body follows:
The EU referendum marks the biggest democratic decision of our time, and the outcome will have lasting and far-reaching consequences for the future of this country for generations to come.
The referendum forces us to look in the mirror and ask ourselves: what kind of nation do we want to be? Are we outward-looking and open to working with others to achieve more? Or do we close ourselves off from our friends and neighbours at a time of increasing global uncertainty?
From the smallest gallery to the biggest blockbuster, many of us have worked on projects that would never have happened without vital EU funding or by collaborating across borders. Britain is not just stronger in Europe, it is more imaginative and more creative, and our global creative success would be severely weakened by walking away.
And what would ‘Out' really mean? Leaving Europe would be a leap into the unknown for millions of people across the UK who work in the creative industries, and for the millions more at home and abroad who benefit from the growth and vibrancy of Britain's cultural sector.
From the Bard to Bowie, British creativity inspires and influences the rest of the world. We believe that being part of the EU bolsters Britain's leading role on the world stage.
Let's not become an outsider shouting from the wings.
Creative Industries Federation survey
Among reasons cited for the vote of confidence in Europe by Creative Industries Federation members were:
Access to EU markets and influence - the EU is the largest export market for the UK creative industries, totalling 56% of all overseas trade in the sector. It is vital that Britain is able to influence regulatory discussions which may have a bearing on future trading, such as the current discussions around the creation of the Digital Single Market.
Access to EU funding – the Creative Europe programme has provided seed funding for films such as The King's Speech, The Iron Lady and Slumdog Millionaire. ERDF funding has provided vital support to arts organisations in the regions, including the Liverpool Everyman and Sage Gateshead. In addition, Federation cultural education members benefit from the €80bn innovation fund, Horizon 2020. All this could be imperilled.
Movement of talent – the UK is a creative hub. Close collaboration with EU partners is key to Britain maintaining this position. From orchestras to art schools to architecture firms, the UK's creative industries are enriched by the diversity of cultural exchange and strengthened by the movement of talent across the EU.
The creative industries have been the fastest growing sector of the UK economy since 2008 and added £84.1bn GVA to the economy last year.
The creative industries employ 1.8m people in this country (1 in 17 jobs in the UK; and 1 in 8 jobs in London). [DCMS stats from January 2016 – 2014 figures].
The creative economy (includes the contribution of those who are in creative occupations outside the creative industries) employ 2.8m people in this country (1 in 11 jobs in UK; and 1 in 6 jobs in London).
Not everyone agrees. A columnist for The Guardian wrote an article titled, "The luvvies' Brexit letter only shows most people vote with their wallets." According to The New York Times, "luvvies" is "a satirical term borrowed from Private Eye magazine to describe Britain's self-enamored stars."
The New York Times article compares this effort to another political celebrity move: J.K. Rowlings opposed Scotland's independence, and didn't win herself any favors as a result.
Discussion Starters:
- How convincing do you find the celebrities' letter? Which are the strongest and weakest arguments?
- What's your view of celebrity involvement in political controversies? How does these differ, or do they, from celebrity product endorsements?
Amtrak Apologizes, Again
It took a year, but the National Transportation Safety Board (NTSB) finally announced the cause of an Amtrak crash in May 2015 that killed eight and injured about 200 people. The driver had accelerated to 106 mph, although the limit for a curve on the track was less than half that. Turns out, the driver was distracted by an emergency situation involving another train, which the driver heard on the radio. The NTSB press release calls this "the result of a loss of situational awareness."
The NTSB report includes 11 safety recommendations and notes that "positive train control, a technology that could have automatically stopped the train and prevented the derailment" wasn't in place. Amtrak has since implemented the technology and issued this statement, included in a Yahoo article:
"Amtrak has taken full responsibility for and deeply regrets the tragic derailment of Northeast Regional Train 188. Our hearts go out to the families who suffered a loss, the passengers and employees who were injured and to everyone onboard the train," the company said in a statement, adding that they would "quickly implement" the NTSB's recommendations after a review.
On its Facebook page last May, Amtrak wrote this apology. Both statements are big improvements over the service updates we usually see from Amtrak and MetroNorth after accidents. Of course such updates are important, but so are apologies-and not only when the company is found to be at fault.
Discussion Starters:
- Compare the two apologies from Amtrak. Should the organization do something differently now?
- How can transportation companies balance important service updates with apologies in crisis situations?
Priceline CEO Resigns
Priceline CEO Darren Huston has resigned after a relationship with an employee became known. A former CEO, Jeffery Boyd, will serve as interim CEO, and COO Gillian Teams will replace Huston as Booking.com's chief, which was also Huston's position. Booking.com is a unit of Priceline Group.
Priceline denies any connection between company performance and Huston's departure. Huston has had some big wins as CEO: acquiring OpenTable, signing a booking agreement with TripAdvisor, and seeing company revenue increase almost 36% since taking over in January 2014.
The company also says that the employee wasn't under Huston's direct supervision, although, as CEO, all employees eventually report into him. In a statement, Priceline said Huston "had engaged in activities inconsistent with the board's expectations for executive conduct, which Mr. Huston acknowledged and for which he expressed regret." The former CEO received a salary of $22 million and won't receive any severance pay.
The lead investigator of the incident said, "I am satisfied with the board's thorough review of this issue. The performance of the business under Darren has been strong, and the company is very well-positioned to continue executing on its strategy for growth. Jeff is deeply familiar with the company's strategy and leadership team, which consists of highly accomplished entrepreneurs and seasoned professional executives with long tenure in the business. We are confident the company is in strong hands while we conduct a search for a new CEO."
Discussion Starters:
- Why would Priceline emphasize that the employee wasn't a direct report? Does it matter?
- Priceline has no statement on its website. Should the company post something? Why or why not, and if so, what should the statement say?
Lyft's First TV Commercial
With a bit of assonance and a lot of humor, Lyft creates its first television ad. The tagline is, "Riding is the new driving," and it shows all the discomforts and inconveniences of driving: traffic, accidents, and getting a ticket.
Lyft's creative director, Jesse McMillin told AdWeek,
"Obviously as we grow and continue to evolve as a brand, we want to make sure we're constantly pushing ourselves to have a vibe and aesthetic that feels professional and cool. But in doing that, we also want to make sure we stay true to the roots of the company. That's really what informs us more than what any of our competitors are doing."
In a second video, Lyft's executives describe the approach of the ad to convey the main point: ride-sharing is the better choice.
Lyft has had fun with other YouTube videos. Hall of Fame wide receiver Jerry Rice picks up a few people and chats them up, but he says, "I'm not really into sports." Before he reveals his true identity, he stops the car to stretch, take a nap, and dance with a few people. Racecar driver Danica Patrick also makes an appearance as a Lyft driver-a fast one.
Discussion Starters:
- What's your view of the commercial? Do you find it as entertaining as the Lyft executives intended?
- What makes the commercial memorable?
Did Airbnb Depress Hotel Rates?
For the first time, I've seen a claim that Airbnb has affected hotel rates in New York City. A New York Post article, "Airbnb's cheap rates hurt Big Apple hotels big time," says that it's 1.7% less expensive to stay in a hotel in NYC this year than it was last year. Hotel stake owner Richard Born says, "If Airbnb were to go away, room rates would go up by 15 percent."
Students may see this as a single-cause fallacy, and they may be right: new hotel development added 30,000 rooms to the city this year. But Mark VanStekelenburg, managing director of CBRE Hotels, points to Airbnb's $80-per-room average rate and says that Airbnb rooms "account for" between 12 and 20% of all hotel rooms.
Born also says, "Anyone who says Airbnb is not affecting NYC hotels is an idiot or hired by Airbnb to say that."
Discussion Starters:
- Do you believe that Airbnb is to blame for declining NYC hotel rates? Why or why not?
- What are the implications either way? How, if at all, should Airbnb respond to these accusations?
Verizon CEO Responds to Criticism
A Verizon strike has put the CEO under pressure to explain worker pay and taxes. Employees in two unions have walked out after failed contract negotiations.
In a press release, union leaders from the International Brotherhood of Electrical Workers (IBEW) explained the reason for the strike, including this quotation from the president:
"No one wants to go on strike, but Verizon-this immensely profitable company-is putting the squeeze on hard-working men and women who just want to come to work, do their jobs and be treated fairly."
Verizon's press release blames the unions for ending negotiations and refusing mediation. The company calls out union leaders for "ignoring today's digital realities" and focuses on the impact of the strike on customers:
"Millions of Americans rely on Verizon for the ability to communicate, 24 hours a day, 7 days a week. We remain fully prepared to handle any work stoppage so that our products and services will be available where and when our customers need them."
Presidential candidate Bernie Sanders has gotten into the fight:
Although CEO Lowell McAdam didn't address his own pay, he did respond to Bernie Sanders in a LinkedIn post. He focused on Verizon's contribution of taxes and employment. Like the press release, McAdam emphasized changing technologies and the need to keep pace.
Discussion Starters:
- Read arguments on both sides. Which are the strongest and weakest? With which do you most agree?
- Assess McAdam's LinkedIn post. How well does he address Sanders' criticism?
Amtrak Response to Crash
Once again, a rail crash brings mostly service updates-no apologies on its website and in the press. An Amtrak train struck maintenance equipment in Chester, Philadelphia, killing two maintenance workers and injuring 34 passengers and an engineer. The derailment disabled the internal communication system, so passengers in some cars didn't receive information for a half-hour after the accident.
According to a Reuters report, Amtrak has little to say:
Amtrak spokesman Mike Tolbert said the railroad was operating its normal schedule of train service along the busy Northeast rail corridor on Monday. He referred all other questions to the NTSB, which did not immediately respond to a request for comment.
As usual, the railroad's website is focused on service updates with nothing in the way of an apology. The "News Release" page shows two posts, one announcing the service disruption and another announcing the restoration plan. This was also the case in a Metro-North derailment in 2013 that killed 4 people.
Likewise, the Amtrak Facebook page gives only service updates.
To find an apology, we need to go to back to a 2015 crash. At the time, Amtrak's Facebook page did express some sentiment, although it repeats in subsequent posts, "We are deeply saddened by the loss of life." The second post conveys the message well:
As always, our first concern is taking care of our customers and employees. We have established a Family Assistance Center in Philadelphia to work closely with the family of passengers and crew on the train. Family members are encouraged to call the Amtrak Incident Hotline (800-523-9101) with questions about individuals on the train. For our employees, the Amtrak Employee Assistance Program is staffed with trained counselors to support our employees and co-workers.
UPDATE: Finally, an apology on the Facebook page. Still nothing on the website.
Discussion Starters:
- What could explain the lack of apology? What, if anything, is different between this incident and 2015?
- How can Amtrak balance service updates and empathy? What should the organization post where?
Former Trump Communications Director Quits and Reveals Strategy
So much for loyalty. A communication director for Trump's Make America Great Again Super PAC has quit the campaign and written an open letter about her experience. Most significant, Stephanie Cegielski says that Trump wanted to hit double digits and perhaps hit second place, but he never wanted to nor expected to be in the lead.
In her letter, Cegielski wrote, "His candidacy was a protest candidacy," and she describes her history:
"Almost a year ago, recruited for my public relations and public policy expertise, I sat in Trump Tower being told that the goal was to get The Donald to poll in double digits and come in second in delegate count. That was it."
She describes her initial excitement representing an alternative candidate but writes, "It wasn't long before every day I awoke to a buzzing phone and a shaking head because Trump had said something politically incorrect the night before. I have been around politics long enough to know that the other side will pounce on any and every opportunity to smear a candidate."
Cegielski, like many, was surprised at his continuing success. She eventually got disillusioned and now fears a possible win:
"What was once Trump's desire to rank second place to send a message to America and to increase his power as a businessman has nightmarishly morphed into a charade that is poised to do irreparable damage to this country if we do not stop this campaign in its tracks.
"I'll say it again: Trump never intended to be the candidate. But his pride is too out of control to stop him now."
Cegielski's credibility is at stake. The New York Times and The Wall Street Journal haven't taken up the story, and a Washington Post writer calls the article a successful "exercise in reputation management."
Discussion Starters:
- Read Cegielski's entire open letter. How do you assess her credibility? Consider The Washington Post perspective. Part of the writer's criticism is "She was literally the P.R. person for the Public Relations Society of America," and she "took a position teaching a class at New York University's School of Professional Studies" on Reputation Management.
- What, if any, loyalty does Cegielski have to Donald Trump and his campaign?