Pro-Life Congressman Resigns

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

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

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

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

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

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

Murphy also posted a statement on his website:

Statement From Congressman Tim Murphy

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

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

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

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Discussion:

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

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

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

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

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

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Discussion:

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

TempThe NBA is speaking out about the controversy over whether players can "take a knee"-or kneel-during the national anthem, which NFL players have been criticized for doing. In a memo from deputy commissioner Mark Tatum, the message is loud and clear-but hidden towards the end:

"...players, coaches and trainers stand respectfully for the anthem. The league office will determine how to deal with any possible instance in which a player, coach or trainer does not stand for the anthem. (Teams do not have the discretion to waive this rule)."

Most of the memo avoids the issue entirely and instead encourages players to continue to be active within the community.

TO: NBA BOARD OF GOVERNORS, TEAM PRESIDENTS,GENERAL MANAGERS
FROM: MARK TATUM, DEPUTY COMMISSIONER &CHIEF OPERATING OFFICER
CC: LEAGUE OFFICE
DATE: SEPTEMBER 29, 2017
RE: NEXT STEPS: BUILDING STRONGER, SAFER COMMUNITIES

As a follow-up to our discussions at this week's Board of Governors meetings, this document outlines suggested steps each team could take as we prepare for the start of the season and continue to develop impactful community programs.

I. ENGAGING PLAYERS AND SENIOR LEADERSHIP

If you have not done so already, we suggest organizing discussions between players, coaches, general managers and ownership to hear the players' perspectives.

One approach would be for team leadership to review existing team and league initiatives and encourage players to share their thoughts and ideas about them. Following those conversations, teams could develop plans prior to the start of the regular season for initiatives that players and senior leadership could participate in, such as:

- Hosting Community Conversations with youth, parents, community leaders and law enforcement about the challenges we face and our shared responsibility to create positive change.

- Creating "Building Bridges Through Basketball" programs that use the game of basketball to bring people together and deepen important bonds of trust and respect between young people, mentors, community leaders, law enforcement and other first responders.

- Highlighting the importance of mentoring with the goal of adding 50,000 new mentors to support young people through our PSA campaign.

- Engaging thought leaders and partners. A variety of experts, speakers and partner organizations are available to players and teams as you continue these conversations and develop programming.

- Establishing new and/or enhancing ongoing team initiatives and partnerships in the areas of criminal justice reform, economic empowerment and civic engagement.

II. OPENING WEEK

As we approach opening week, each team could explore ways to use their first home game as an opportunity to demonstrate your commitment to the NBA's core values of equality, diversity, inclusion and serve as a unifying force in the community, including:

- A joint address to fans featuring a player or coach prior to the National Anthem. This could include a message of unity and how the team is committed to bringing the community together this season.

- A video tribute or PSA featuring players, community leaders, faith leaders and team leadership speaking about the issues they care about and photos from past community events.

III. KEY MESSAGES

- These are difficult and nuanced issues.

- We support and encourage players to express their views on matters that are important to them.

- The NBA has a rule that players, coaches and trainers stand respectfully for the anthem. The league office will determine how to deal with any possible instance in which a player, coach or trainer does not stand for the anthem. (Teams do not have the discretion to waive this rule).

- Our team's focus remains on unity and collective action that leads to meaningful change in society. The players have embraced their roles in those efforts and we are proud of the work they do in our communities.

- We believe sports are a unifier and this is an opportunity for the NBA to once again lead by its core values of equality, inclusion and unity and to bridge divides and bring people together.

In a video statement, NBA commissioner Adam Silver echoed Tatum's memo. Silver said he expected players to follow the league's rules of standing for the anthem. Although he encouraged freedom of expression, he also said, "It's my hope that our players will continue to use that as a moment of unity."

A writer for Yahoo sports argues that players should be able to take a knee. Part of his argument follows:

Let's be clear: Athletes are not possibly putting their careers at risk, opening themselves up to jeering fans in arenas and on social media, because they are anti-national anthem, anti-flag, anti-America, anti-military or any other "anti" that has been used to diffuse any honest discourse. That those arguments have distracted from the true purpose of this activism only goes to show why it is necessary. Change won't come if no one listens. It certainly won't come if a league that presents itself as progressive and forward-thinking discourages civil methods used to bring about awareness.

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Discussion:

  • Analyze the NBA memo against principles of business writing. Who are the primary and secondary audiences? What are Tatum's objectives? How does he organize the memo?
  • How well does the memo capture the league's perspective? How do you think players might have reacted? 
  • Analyze Michael Lee's argument in the Yahoo article. What are his strongest and weakest arguments?
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Miracles Happen: An Apology from Uber

TempThe typically non-apologetic Uber is apologizing. Two factors likely caused the company's change: 1) a new CEO, and 2) losing its operating license in London.

The new CEO has already demonstrated his vulnerability by talking about his emotions and showing us more of who he is as a person. An article in The Guardian explains why the city decided not to renew the company's license, which expires September 30:

TfL [Tranport for London] said last week Uber was not a "fit and proper" private car-hire operator and cited four areas of concern, including its approach to reporting criminal offences and carrying out background checks on drivers. But sources close to TfL indicated that a change of conduct from the taxi firm, the culture of which is being reformed by its new chief executive, could leave the door open to a fresh licence application.

The London decision is a blow for the ride-sharing company, and Uber is doing what it can to rebuild its image.

Temp

London Mayor Sadiq Kahn responded to the apology: 

"I welcome the apology from Dara Khosrowshahi, the Uber CEO. Obviously I am pleased that he has acknowledged the issues that Uber faces in London. Even though there is a legal process in place, I have asked TfL to make themselves available to meet with him."

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 Discussion:

  • Assess Khosrowshahi's apology. What works well, and what could be improved? (Hint: What organization principles apply?)
  • What is the value of an apology? In this case, how does Uber's apology help its position with London?
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Updates About the Florida Nursing Home

TempNew information has surfaced about patient deaths at the Rehabilitation Center at Hollywood Hills. The toll is up to 11 residents, who died from heat exhaustion, heart failure, and other issues related to extreme heat at the facility.

Now we have new questions about accountability. Administrators at the facility made several calls to Florida Power and Light (FPL) requesting they restore power. Some parts of the facility had lost power, including a transformer needed to run the air conditioning. Although they were told that help was on the way, FPL didn't arrive for days.

Another turn in the story is about Governor Rick Scott's responsibility. Before the storm, he gave his cell number to nursing homes and encouraged them to call with emergencies.Because they didn't get a response from FPL, rehab center administrators left a message on Scott's cell phone. The call was returned, and administrators were told to call 911, which they did. When they still didn't get assistance, they called Scott's cell two more times. The governor's office released a statement:

"Every call made to the Governor from facility management was referred to the Agency for Health Care Administration and the Florida Department of Health and quickly returned."

FPL also released a statement about the case:

"The tragic and senseless loss at Hollywood Hills Rehabilitation Center is the subject of a criminal homicide investigation by law enforcement," the DOH [Department of Health] noted. "Let's be clear – this facility is located across the street from one of Florida's largest hospitals, which never lost power and had fully operating facilities. It is 100 percent the responsibility of healthcare professionals to preserve life by acting in the best interest of the health and well-being of their patients."

FPL spokesperson Peter Robbins also said, "What we know now is that a portion of the facility did, in fact, have power, that there was a hospital with power across the parking lot from this facility, and that the nursing home was required to have a permanently installed, operational generator."

The nursing home is under criminal investigation and has lost its license to operate and its ability to accept Medicare funding.

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Discussion:

  • How is this story an issue of accountability, integrity, and compassion? What failures contributed to the deaths?
  • How well did the FPL and governor respond to criticism? How convincing do you find their statements?
  • Critics say the rehab center staff should have moved residents, for example, to the hospital across the street. What's your view of their responsibility?
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Integrity, 07: Persuasive Amy Newman Integrity, 07: Persuasive Amy Newman

Coca-Cola Works on Brand Image

TempYou won't hear the word "soda" in this Coca-Cola ad. The company is focusing on corporate advertising and trying to associate the brand with good things, such as employing people throughout the United States.

In the video, the narrator says, "We make much more than our name suggests," for example, tea and juice. The commercial emphasizes water sustainability and helping people go to college.

Clearly, the company is downplaying its connection to soda because of research and negative press. A Harvard nutrition page summarizes research linking sugary drinks to heart disease, type 2 diabetes, and other health problems. The site encourages people to choose different beverages.

Discussion:

  • How closely is the Coca-Cola name tied to soda? What else could the company do to improve brand image and perception of social responsibility?
  • What's your assessment of the commercial? What are the objectives, and does the ad meet them?
  • To what extent is the commercial an issue of integrity? Is the company consistent and whole?
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Talking About Climate Change: Too Soon?

TempEPA chief Scott Priutt says it's "insensitive" to talk about climate change as people are wrestling with hurricanes. The response follows a request from Miami Mayor Tomás Regalado the Friday before Hurricane Irma hit Florida:

"This is the time to talk about climate change. This is the time that the president and the EPA and whoever makes decisions needs to talk about climate change," said Regalado, who flew back to Miami from Argentina Friday morning to be in the city during the storm. "If this isn't climate change, I don't know what is. This is a truly, truly poster child for what is to come."

Pruitt said,

"To have any kind of focus on the cause and effect of the storm versus helping people, or actually facing the effect of the storm, is misplaced," and "To use time and effort to address it at this point is very, very insensitive to this people in Florida."

Pruitt has also said that he doesn't believe that carbon dioxide emissions is a major contributor to climate change. Scientists report changing "climate change" in their documentation to other words.

In a Los Angeles Times opinion article, "Harvey and Irma say this is the right time to discuss global warming," the reporter calls Pruitt's response "patently absurd." He compares the hurricanes to shootings, when it is the right time to talk about gun control.

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Discussion:

  • What's your view? Should we discuss climate change as the hurricanes are happening? What are the arguments on both sides?
  • How, if at all, might your opinion change if you or your family were victims of the hurricane?
  • For leadership character, this could be an issue of accountability and compassion. How do you see these dimensions playing a role in the debate?
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Defense After Nurse Is Arrested

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

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

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

Mayor Jackie Biskupski:

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

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

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

Chief Mike Brown:

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

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

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

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

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

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

Discussion:

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

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

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

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

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

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

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

Discussion:

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

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

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

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

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

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

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

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Discussion:

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

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

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

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

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

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

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

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

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Discussion:

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

TempAs Texas prepares for Hurricane Harvey, government officials and news organizations are preparing communications to help:

  • President Trump issued a statement about monitoring the storm and encouraging people to evacuate if they are in the Hurricane's path. The president is also tweeting about the storm.
  • His statement points to Ready.gov, a website rich with resources for preparing families in case of flooding, hurricanes, or extreme heat.
  • CNN's website shows live updates of the storm's path.
  • The National Hurricane Center is posting coastal warnings and a visual of the cone.
  • Texas Governor Greg Abbott was interviewed by BBC and is hosting a meeting to plan emergency operations. (His website includes a tweet but nothing else yet about the storm.)

And, of course, the media is covering the storm with bold headlines:

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Discussion:

  • Explore Ready.gov. What do you notice about the key messages, organization, and use of visuals? How easy is it to find information?
  • Ready.gov, as of now, doesn't feature Hurricane Harvey; it's generic. Should the site be updated to feature the storm? Why or why not?
  • Also explore Governor Abbott's website. Does this site feature the hurricane yet? How do you think the hurricane should be positioned here?
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Air Canada CEO Gets Defensive

TempNo one wants to face a reporter's tough questions, but it's best to handle them gracefully. Air Canada's CEO and president Calin Rovinescu got angry during an interview with a Globe and Mail reporter, and it didn't end well.

Rovinescu was asked about bumping a 10-year-old boy when a flight was overbooked, and he responded,

No. I'm not getting into specific customer dynamics with you, Trevor. And that's not what I expected this interview to be about, and I'm happy to end it here if that's-I'm not getting into discussions with respect to specific customer experiences.

The interviewer then asked Rovinescu about weather planning because of climate change, and he was a bit sarcastic, saying they can't do anything to control the weather. Things seem to get worse when the interviewer pushed him about an incident in July, when a plane almost collided with others on the taxiway:

Can you talk to me about pilot error? Just in terms of-

Trevor, I'm not sure I'm loving the direction of your interview here. I thought we were talking about a more generic dynamic around what the airline has achieved.

Instead, Rovinescu could have used the technique of "bridging," or transitioning from the interviewer's question to something more positive about the airline's safety record or plans for the future. He sounded defensive throughout, and the interviewer took advantage by asking tougher questions.

Rovinescu wanted to avoided seeming vulnerable-risking emotional exposure-which just made him more vulnerable and open to harm. A PR Daily article summarizes the issue well:

[Rovinescu] reacted to Cole's questions instead of answering them-and by doing so, unnecessarily increased the negative tone of the article.

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Discussion:

  • Read the reporter's questions. How could Rovinescu have responded to each instead?
  • Did the reporter push too much? Were his questions unfair?
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Is Poland Spring Water from Poland Spring?

Poland.jpg

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

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

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

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

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

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

Discussion:

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

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

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

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Martin Shkreli's Failed Communications

TempFormer pharmaceutical executive Martin Shkreli damaged his own case by failing basic communication principles. As a juror said, he is "his own worst enemy" and "All he had to do was to tell everyone, ‘I'm sorry, I lost the money, all I can say is I'm sorry,' and that would be it."

In other words, just apologize. The jury found him guilty of fraud because he lied to hedge fund investors.

Throughout his career in the media, Shkreli came across as arrogant and indifferent to his impact on others. His company hiked the price of Daraprim, a potentially life-saving drug, from $13.50 to $750 per pill. A Daily Beast article called him "reprehensible" and worse.

In 2014, he tweeted about his board of directors: 

In January of this year, Shkreli was banned from Twitter for harassing a journalist. In 2016, he testified before Congress, and we see why people consider him offensive. He "takes the fifth," which is his right, but his behavior shows his lack of compassion. MoneyWatch posted "The many smirks of Martin Shkreli" during the hearing.

Image source.

Discussion:

  • What is the value of an apology, and how could saying "I'm sorry" have helped Shkreli?
  • What non-verbal behavior does Shkreli demonstrate? For example, watch 8:00 - 9:00 of the Congressional hearing. How do you interpret his non-verbals?
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Corona and Other Brands Capitalize on Eclipse

With the total eclipse coming Monday afternoon and glasses hard to come by, Corona is offering a solution. In a 35-second video, the company instructs us how to make a viewer from a beer box. TempApparently, solar corona is the beer's namesake, so the connection isn't entirely random. Ad agency Cramer-Krasselt created the campaign.

NASA Goddard posted a video to show how to make a viewer out of a cereal box, and a generic box is used as an example. But other companies have been using the eclipse to promote their brands.

A CNBC article identifies "17 clever ways brands are cashing in on the eclipse." Volvo, for example, designed a custom moon roof for viewing the eclipse from the road, but reports warn about traffic and accidents if people aren't careful while driving. Other companies are selling drinks, mattresses, train rides, houses, and a variety of food: half-moon cookies, donuts, pizza, and more.

Discussion:

  • What are potential downsides of a brand associating with the eclipse and using the event to promote products?
  • What is the most outrageous promotion you have seen related to the eclipse?
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Irvine Finds Room for Admitted Students

TempUniversity of California, Irvine, is trying to do right by 800 students who accepted the college's admissions offer above the expected number. When making admissions decisions, colleges always consider their "yield," or the percentage of students who will enroll. Admissions officers admit more students than they have space for, assuming some won't come because of financial reasons or school preference.

Initially, Irvine rescinded offers from about 500 students, but it was too late for them to enroll in other schools by that time. They informed students during the summer about transcript and other issues, which happens in a few cases each year, but this is an extraordinary number.

Then university administrators began softening. They admitted that they used standards that were too strict in order to lower their enrollment numbers. The vice chancellor wrote a message to students, including this excerpt:

We heard from some students that this year's process was too stringent and our customer-service approach needs improvement. I acknowledge that we took a harder line on the terms and conditions this year and we could have managed that process with greater care, sensitivity, and clarity about available options. Also contributing to the angst many of you have experienced is our traditional communication and outdated telephone systems that did not serve us well in this circumstance. For those who felt ignored or mistreated, I sincerely apologize.

We are making every effort to do better, immediately. I have directed the admissions team to step up the personal outreach to notified students. We're bringing in more people to review appeals and answer phones. We are committed to correcting any errors swiftly and providing the help you need in an empathetic and understanding way.

A few days later, Irvine's chancellor also apologized, and the university found a way to accommodate 290 more students. His message included this excerpt:

The stories of our students whose college dreams were crushed by our decision to withdraw admissions to hundreds of students are heartbreaking. And unacceptable.

This process is not working. We are a university recognized for advancing the American Dream, not impeding it. This situation is rocking us to our core because it is fundamentally misaligned with our values.

The apology is notable because we see so few of them from university presidents. Writers for The New York Times and Insider Higher Ed commented on the rarity of apologies, partly because of the complexity of academic institutions.

Image source.

Discussion:

  • Analyze the chancellor's and vice chancellor's messages. What communication principles do they use? How do the messages compare in content, tone, word choice, and organization?
  • What should Irvine have done differently in this situation? What are all of the touch points with students that could have been improved?
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BMW Denies Collusion

TempGerman automakers felt another blow this weekend when they were accused of colluding. The news came as Daimler recalls 3 million cars, and Audi recalls 850,000 to lower their emissions.

German officials found documents related to a potential technology cartel when looking for evidence about potential anti-trust issues related to steel. To avoid penalties, VW and Daimler admitted meeting regularly with competitors. Spiegel magazine quoted VW as saying five German carmakers met "several times a year" and had been "co-ordinating the development of their vehicles, costs, suppliers, and markets for many years, at least since the Nineties, to the present day."

One area of discussion was about the size of the technology to hold AdBlue, a chemical cleaning substance. Automakers agreed on a smaller tank to reduce costs and allow more room for accessories, such as audio, but this meant less efficient cleaning of exhaust gases.

In a statement, BMW denied the accusations:

"BMW vehicles are not manipulated and comply with respective legal requirements," and "The BMW Group categorically rejects accusations that Euro 6 vehicles sold by the company do not provide adequate exhaust gas treatment due to AdBlue tanks that are too small."

VW may have learned a lesson from the emissions scandal. A New York Times article summarizes how earlier admissions may have helped avoided trouble:

If Volkswagen had been honest with American officials [in May 2014 when Winterkorn received a memo about the inconsistent test results], the damage to the company's reputation and finances would very likely have been serious but not devastating. Similar cases suggest that Volkswagen would have paid a fine in the hundreds of millions of dollars.

Image source.

Discussion:

  • Assess BMW's strategy. What principles of persuasion is the company using? What crisis communication techniques would be useful to the company at this point?
  • To what, specifically, is VW admitting? What, specifically, is BMW denying?
  • Where's the line between meeting and collusion?
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Walmart Apologizes for Racist Description

TempWalmart blamed a seller for a racist description of a hair weaving net. The blurb included the "N-word" as an adjective with "brown" for the product color.

Walmart removed the description and issued an apology, shown here.

TempThe seller, Jagazi in the United Kingdom, said someone was using its name to sell products on Walmart's website. Jagazi wrote a statement denying connection with the product but didn't mention the racial slur.

We woke up this morning to the news that someone has used our name, Jagazi, to list an item. Please beware that we are reporting this to as many people as we can and trying to get all the listings pulled down. The real Jagazi is a 100% black company for black people. People have often used our brand name to try and sell their products. Please be aware. Very sorry for all the distress this has caused. We are feeling the pain here as well. Most shocking!
 

An AOL article author criticizes Jagazi for "indicating some offense to the racial slur and much offense to someone selling fake Jagazi on Walmart's website." Do you agree or disagree?

Image source.

Discussion:

  • How does a mistake like this happen?
  • How well did Walmart handle the apology? Should the company take more responsibility? Why or why not?
  • Assess Jagazi's response. What, if anything, should Jagazi have done differently?
  • The AOL article has a punctuation error. Can you find it?
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Did Ann Coulter Go Too Far?

 CoulterHave we had enough of customer complaints about airlines? The social media tenor seems to be trending in that direction, at least in the case of Ann Coulter and Delta Airlines.

Author and media personality Ann Coulter paid $30 for a seat with more legroom but was "inadvertently" moved as the airline shuffled seats to accommodate other passengers. Coulter tweeted several attacks on the airline, including a couple about other passengers: the one at right and, in another tweet, "Immigrants take American jobs (& seats on @Delta)." Temp 2

Delta promised to refund Coulter's $30 and pushed back on her insults. In tweets and in a statement, the company admitted confusion:

We are sorry that the customer did not receive the seat she reserved and paid for. More importantly, we are disappointed that the customer has chosen to publicly attack our employees and other customers by posting derogatory and slanderous comments and photos in social media. Her actions are unnecessary and unacceptable.    

Each of our employees is charged with treating each other as well as our customers with dignity and respect. And we hold each other accountable when that does not happen.

Delta expects mutual civility throughout the entire travel experience.

We will refund Ms. Coulter's $30 for the preferred seat on the exit row that she purchased.

Brandwatch assessed sentiment on social media and found more negative responses to Coulter than to Delta.

TempImage source.

Discussion:

  • Do you find yourself sympathizing more with the airline or with Coulter? Why?
  • How does the timing (moving her seat within 24 hours of the flight) affect your response, if at all?
  • Where did Coulter perhaps cross a line? Read more tweets here.
  • How well did Delta handle the situation? What, if anything, should the airline have done differently on social media or in the statement?
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