Cheesecake's Failed Promotion

Cheesecake.PNG

To celebrate its 40th anniversary, Cheesecake Factory offered free cheesecake delivery, but stores ran out and deliveries were slow.

Through the app DoorDash, customers ordered a free slice of the cake. The company said 40,000 slices were available, and people who didn’t get their promised piece got angry. Drivers were put in uncomfortable positions, sometimes waiting hours for orders to be ready for delivery. A flight between drivers broke out in Arlington, VA, and one got arrested.

The company responded by expressing gratitude for the tremendous interest and by complimenting themselves for delivering 60,000 slides—but no apology came. DoorDash tweeted, “A huge shoutout to all of the hardworking Dashers who made this exciting day possible! You’re the real MVPs.” A Cheesecake Factory spokesperson said, “Our Day of 40,000 Slices promotion had such a tremendous response from our guests that we extended it and delivered more than 60,000 complimentary slices. We were truly humbled by the popularity of the offer and by how quickly our fans responded as all of the 60,000 complimentary slices were ordered within an hour of the promotion's start time."

Discussion:

  • How could Cheesecake Factory have done a better job planning the promotion?

  • Should the company response be different? Do you think the leaders should apologize? Why or why not? If so, what would be an appropriate apology?



Deutsche Bank on the Defense

DB stock.PNG

With stock at an all-time low and a German government raid last week, Deutsche Bank is trying to reassure customers and shareholders. Finance chief James von Moltke said on CNBC, “To date, we’re not aware of any wrongdoing on our part.” The investigation relates to the Panama Papers, which are documents made public in 2016 that revealed tax havens for individuals from more than 200 countries.

Throughout the CNBC interview, von Moltke tries to put the issue into perspective. He says the investigation involves a small, trust services business that the bank sold earlier this year. However, some of the money laundering accusations involve current managers. Still, von Moltke claims that new precautions are in place today.

Deutsche Bank stock fell further on the news, losing 51% of its value this year.

Discussion:

  • Assess the CFO’s video interview with CNBC. What persuasive communication strategies do you observe?

  • Which are his strongest and weakest arguments?

  • Also assess his delivery skills: tone, rapport, volume, pace, and so on.

Prep School Criticized for Abuse and False Apps

Landry 2.PNG

College prep school T.M. Landry has garnered national attention for helping Black students get into college, but all has not been well at the school. Students are speaking out about emotional and physical abuse as well as falsified college applications.

According to a New York Times report, examples of physical abuse include “forced to kneel on rice, rocks, or hot concrete for hours” and being “choked, yelled at, and berated.” Students report being told to lie on college applications about classes they took and the conditions under which they grew up, for example, exaggerating their poverty.

The Landrys, a married couple who run the school, defended their actions, saying they push kids to their limits. Mr Landry admits to physical contact, and he said, “Oh, I yell a lot.” Since a 2013 case against him that included probation, Landry says he no longer practices physical punishment. He also denied falsifying students’ applications.

College results have not been great. Students who spent more time at the prep school are more likely to withdraw or transfer to less demanding programs. The New York Times article describes an unaccredited school with little traditional programming, so students may not be academically prepared for the schools that admit them.

Image source.

Discussion:

  • Assess the school website. The opening video features Mr. Landry, and the rest of the site boasts college acceptances. How convincing might families find the way the school is promoted? Other than admitting abuse, should the site say more to give parents and prospective students a more accurate picture of the school philosophy and practice?

  • How is this situation an example of failing integrity? Also consider intent versus impact. What could the founders' intent, and how is that different from the impact? 

Dolce and Gabanna Cancels Show and Apologizes

Italian fashion designer Dolce and Gabanna cancelled a major show scheduled in Shanghai and apologized to the Chinese people for an offensive ad and comments on social media. The ad showed Chinese-French model Estelle Chen, in separate videos, eating pizza and pasta with chopsticks. With stereotypical music in the background, the ads seem to mock the woman and a Chinese pronunciation of the company’s name.

D&G.JPG

After criticism on Weibo, the company made the situation far worse. Co-founder Stefano Gabbana posted negative comments, at right, about China and its people on Instagram, and then denied the comments, claiming his account had been hacked.

Later, Dolce and Gabbana leaders tried to recover by posting a statement on the company’s Instagram account: "We are very sorry for any distress caused by these unauthorized posts. We have nothing but respect for China and the people of China." Another post read, "Our dream was to bring to Shanghai a tribute event dedicated to China which tells our history and vision. It was not simply a fashion show, but something that we created especially with love and passion for China and all the people around the world who loves Dolce & Gabbana.”

They also posted an apology video.

Discussion:

  • What’s your view of the ad series? Can you see how people would think they are offensive? Why or why not?

  • How well did Dolce and Gabanna eventually recover from the incident? Analyze the apology video.

  • Which leadership character dimensions are illustrated by this situation?

Hotel Cleaning Caught on Video

Housekeepers in 14 hotels in China were caught on video using a towel or sponge to clean multiple surfaces, including toilets, showers, and glassware. Hotels included W Hotel Beijing, Bulgari Hotel in Shanghai, InterContinental Beijing Sanlitun, Hilton Beijing, Beijing JW Marriott Hotel, Peninsula Beijing, and Shangri-La Hotel Beijing.

So far, five of the hotels have issued statements. The Peninsula wrote, “The hotel will still take measures to strengthen the implementation of the standard procedures for room service staff to ensure all aspects meet the established standards of the Peninsula.” Park Hyatt in Beijing referred to the situation as an isolated occurrence.

WechatIMG126.jpeg

China's Ministry of Culture and Tourism ordered hotels to review their practices and called for an investigation.

Discussion:

  • What oversight should hotels have for room cleaning?

  • Analyze Park Hyatt's message: audience, communication objectives, writing style, and so on. How well does the company address the situation?

  • This isn’t the first time such as report has become public about luxury hotels. Do you think these cases are isolated, as the Park Hyatt claims, or systemic?

Negative Reports About Facebook

Two recent articles cite trouble at Facebook. The first is a New York Times story titled, “Delay, Deny and Deflect: How Facebook’s Leaders Fought Through Crisis.” The report is a damning criticism of how the company, and particularly Mark Zuckerberg and Sheryl Sandberg, handled recent situations:

But as evidence accumulated that Facebook’s power could also be exploited to disrupt elections, broadcast viral propaganda and inspire deadly campaigns of hate around the globe, Mr. Zuckerberg and Ms. Sandberg stumbled. Bent on growth, the pair ignored warning signs and then sought to conceal them from public view. At critical moments over the last three years, they were distracted by personal projects, and passed off security and policy decisions to subordinates, according to current and former executives.

The article accuses the company’s response to Russia’s meddling in U.S. elections, data privacy issues, and hate speech and propaganda. The article describes aggressive lobbying and efforts to conceal Russia’s infiltration of the network.

The second article, a Wall Street Journal report, describes declining employee morale at Facebook. Criticism about the company and the declining stock price are getting difficult for employees to stomach. According to the Journal article, employees are questioning the company’s growth strategy and are concerned by a lack of innovation. Employees are also less optimistic about the company’s future. One year ago, 87% employees said they were optimistic; today, that number is 52%.

The Times article reports that Zuckerberg has been asked whether it’s time for new company leadership, and he has repeatedly said that he will not step aside.

Zuckerberg image source.

Discussion:

  • What’s your view of the situation at Facebook? Is the Times article on target, too harsh, too lenient, or something else?

  • One possibility is that the company is experiencing a natural progression—a growth cycle that most companies experience. What do you think?

  • What are the value and potential downsides of employee surveys?

Nissan Chairman Is Arrested

Nissan’s chairman was arrested for financial misconduct, including under-reporting his income in securities fillings. Carlos Ghosn may have been engaging in improprieties for years.

Nissan.jpg

The news came as a surprise to many. Ghosn is a popular business figure, credited with turning around Nissan, Renault, and Mitsubishi by forming an alliance and directing cost-cutting and layoffs. According to a Wall Street Journal article, the shock is felt particularly at Renault; a union leader described the reaction as “a feeling of stupefaction and a lot of anger.”

The French government has a 15% state in Renault, so President Emmanuel Macron also weighed in: “As a shareholder, the French state will remain extremely vigilant regarding the stability of the alliance.” At this point, officials are still trying to sort out the news and determine leadership going forward.

Nissan CEO Hiroto Saikawa delivered a news statement, translated in English on Bloomberg. The company also issued this matter-of-fact statement.

Nissan image source. Ghosn image source.

Discussion:

  • Why would a successful business executive engage in financial misconduct? What leadership character dimensions are lacking?

  • How does financial impropriety go on for years in a situation like this? Who should be accountable for the misconduct?

  • Assess Saikawa’s news statement. What works well to improve brand image, and what could be improved?

Controversy About Wildfires

Trump tweet.JPG

As wildfires rage in California, let’s look at controversy about the cause. So far, fires have taken 31 lives, and more than 200 people are missing. Governor Jerry Brown requested federal aid.

In a tweet, President Trump blamed California for poor forest management. This drew a harsh response from the California Professional Firefighters association, which called the statement “dangerously wrong.” In a statement, the group defended state actions, firefighters, and victims:

“The president’s message attacking California and threatening to withhold aid to the victims of the cataclysmic fires is Ill-informed, ill-timed and demeaning to those who are suffering as well as the men and women on the front lines.”

Later, the president tweeted a more compassionate message:

More than 4,000 are fighting the Camp and Woolsey Fires in California that have burned over 170,000 acres. Our hearts are with those fighting the fires, the 52,000 who have evacuated, and the families of the 11 who have died. The destruction is catastrophic. God Bless them all.

Discussion:

  • Analyze the California Professional Firefighters statement: audience, objectives, writing style, organization, etc. How well does the group defend its position?

  • How well does the statement illustrate principles of persuasion: logical argument, emotional appeal, and credibility?

  • Which leadership character dimensions does this situation illustrate?

Google Employees Protest Sexual Harassment

Google Walkout.PNG

Thousands of employees walked out of more than 20 Google offices around the world on Thursday to protest how the company handled sexual harassment charges. Employees in California, Berlin, Dublin, London, Singapore, Tokyo, Zurich, and other locations organized under the group, “Google Walkout For Real Change‏.”

The reaction came after a New York Times article revealed several senior-level managers left the company, quietly, because of sexual harassment. Some were given large financial payouts.

In addition to a more transparent process, employees are asking for an end to pay equity and forced arbitration, which requires employees to settle cases within the company and denies them the right to sue.

In response to the walkouts, CEO Sundar Pichai said, “Employees have raised constructive ideas for how we can improve our policies and our processes going forward. We are taking in all their feedback so we can turn these ideas into action.”

Image source.

Discussion:

  • How do you view the walkouts: a waste of time, overstepping, a productive way to protest, or something else? Respond to the same question for their list of demands.

  • What, if any, impact do you think the walkouts will have on company practices? Googlers did encourage the company’s decision to end an artificial intelligence contract with the Defense Department.

  • What leadership character dimensions are illustrated by the situation?

GM Offers Employee Buyouts

To cut costs, General Motors is offering voluntary severance packages to 18,000 employees. The company is taking this path before mandatory layoffs, which could happen if not enough people leave voluntarily.

GM Cruise.jpg

To receive an offer, employees must have been with GM for at least 12 years and be on salary (not an hourly wage), which means more senior-level employees will be leaving. Typically, these employees are in managerial positions and are paid more highly, so the move means more savings.

The company is focusing on its most profitable regions and already cut salaried staff from about 90,000 to 77,000 after selling off its European divisions. At the same time, GM is staffing up technology functions to compete in the self-driving car market. Through its Cruise division, GM is planning to introduce a ride-sharing, autonomous vehicle in 2019.

Office image source. Cruise image source.

Discussion:

  • Why would a company choose a voluntary severance model instead of mandatory layoffs?

  • What factors should employees consider before deciding to take a package?

Reversal at Maryland

Maryland players.JPG

The University of Maryland has reversed its position on keeping football coach DJ Durkin. At first, Durkin was reinstated after a damning report about player abuse which resulted in the death of a student, Jordan McNair. Critics say the University’s Board of Regents overstepped in disallowing Loh to terminate the coach.

Now, pressure from students, players, the McNair family, and politicians left the University with no choice but to fire Coach Durkin. In a letter, President Loh explained the decision, including his previous concerns about Durkin’s return.

McNair’s father made a statement, including a message to President Loh when asked:

“The same thing I’ve always said to Dr. Loh. I’ve always commended Dr. Loh for having a level of integrity and doing the right thing even since he first initially came to the hospital, and secondly, when he came to us as a family to apologize and to take full moral and legal responsible for the tragic events that happened.”

In the meantime, Maryland players were involved in an altercation. It seems as though this situation has divided the team as well.

UPDATE: James T. Brady, chairman of the University System of Maryland’s Board of Regents, resigned last week, and President Loh is winning back his power. A Chronicle article notes that Loh won the “battle waged in the court of public opinion,” and whether he will leave the University as planned is now unclear. In a statement, Brady explained his decision and, using the word “proud” three times, cites board accomplishments during his tenure.

Discussion:

  • How is this situation an issue of integrity?

  • The regents had planned to terminate President Loh. Should they reverse this position too?

  • What should the University do now to repair its image?

  • We have heard nothing that I found from the regents (except their confidence in Coach Durkin). Should they communicate something now? What could they say that could help instead of hurt the situation?

Emotions and Political Views After Synagogue Shooting

A shooter killed eleven people and wounded several others, including three police officers, in a Pittsburgh synagogue. Officials report that the act was motivated by hate, and the shooter is quoted saying, “I just want to kill Jews.” The Washington Post calls it, “The deadliest attack on Jews in the history of the United States.”

President Trump condemned the shootings: “This wicked act of mass murder is pure evil . . . . hard to believe and, frankly, something that is unimaginable.” The president also promoted the idea of armed guards: “If there were an armed guard inside the temple, they would have been able to stop them. Maybe there would have been nobody killed except for him, frankly.”

Pittsburgh Mayor Bill Peduto disputed this view: “The approach we need to be looking at is how we take the guns—the common denominator of every mass shooting in America—out of the hands of those looking to express hatred through murder.”

During a news conference, Pittsburgh Public Safety Director Wendell Hissrich gave an emotional statement, calling the crime scene “horrific.”

Image source.

Discussion:

  • We see Hissrich’s emotions during the news conference. He demonstrates authenticity and vulnerability. How do you view his delivery?

  • President Trump’s comments during this time are controversial. What’s your view? How might your own feelings about gun advocacy or gun control affect your perspective?

Tesla Investigated for Fraud

Tesla is facing a new challenge this week: a U.S. Federal Bureau of Investigation (FBI) criminal probe into whether the company misstated production data and therefore misled investors. The investigation will focus on Model 3 sedans.

A Wall Street Journal article explains part of the issue. CEO Elon Musk tweeted on July 2, 2017, “Looks like we can reach 20,000 Model 3 cars per month in Dec.“ But reports at the time showed a less optimistic picture. The result was only 2,700 cars produced for the entire year.

A spokesperson said the FBI document requests were voluntary and defended the company:

“When we started the Model 3 production ramp, we were transparent about how difficult it would be, openly explaining that we would only be able to go as fast as our least lucky or least successful supplier, and that we were entering ‘production hell.’ Ultimately, given difficulties that we did not foresee in this first-of-its-kind production ramp, it took us six months longer than we expected to meet our 5,000 unit per week guidance. Tesla’s philosophy has always been to set truthful targets –- not sandbagged targets that we would definitely exceed and not unrealistic targets that we could never meet. While Tesla gets criticized when it is delayed in reaching a goal, it should not be forgotten that Tesla has achieved many goals that were doubted by most. We are enormously proud of the efforts of the whole company in making it through this difficult ramp and getting us to volume production.”

Image source.

Discussion:

  • What’s your view of Musk’s statement compared to the result: arrogance, entrepreneurial optimism, or something else?

  • How well does the Tesla spokesperson address the investigation? What else, if anything, should the company say at this point?

  • In what ways does the company demonstrate a lack of vulnerability in this situation?

Google Admits Sexual Harassment Incidents

It’s been quiet until now, but Google has fired 48 employees for sexual harassment. A New York Times article exposed a number of high-profile departures dating back to 2014, including Andy Rubin, who developed the Android.

Rubin was paid $90 million when the company asked for his resignation, but executives never told the entire truth: that Rubin left because he was accused of sexual misconduct. Instead, then-CEO Larry Page, complimented him: “I want to wish Andy all the best with what’s next,” and “With Android, he created something truly remarkable—with a billion-plus happy users.” Rubin denies the claim and the circumstances of his termination.

In addition to this situation, the Times article cites a number of relationships between senior-level managers and employees. An email from CEO Sundar Pichai and the VP of people operations to staff acknowledges the 48 departures, including 13 “senior managers and above.”

Hi everyone,

Today's story in the New York Times was difficult to read.

We are dead serious about making sure we provide a safe and inclusive workplace. We want to assure you that we review every single complaint about sexual harassment or inappropriate conduct, we investigate and we take action.

In recent years, we've made a number of changes, including taking an increasingly hard line on inappropriate conduct by people in positions of authority: in the last two years, 48 people have been terminated for sexual harassment, including 13 who were senior managers and above. None of these individuals received an exit package.

In 2015, we launched Respect@ and our annual Internal Investigations Report to provide transparency about these types of investigations at Google. Because we know that reporting harassment can be traumatic, we provide confidential channels to share any inappropriate behavior you experience or see. We support and respect those who have spoken out. You can find many ways to do this at go/saysomething. You can make a report anonymously if you wish.

We've also updated our policy to require all VPs and SVPs to disclose any relationship with a co-worker regardless of reporting line or presence of conflict.

We are committed to ensuring that Google is a workplace where you can feel safe to do your best work, and where there are serious consequences for anyone who behaves inappropriately.

Sundar and Eileen

Image source.

Discussion:

  • Should Google have been more transparent about the previous departures? Why or why not?

  • Should the executives say more in the email about the specific departures mentioned in the Times article? Why or why not?

  • Assess the email for audience analysis, objectives, tone, organization, and style. What works well, and what could be improved?

  • Which leadership character dimensions does Pichai demonstrate and fail to demonstrate?

Facebook's War on "Fake News"

Facebook has taken several steps to banish incorrect information on the site. The company provides three examples of questionable news items and the action they took, including what they missed.

In some of these situations, stories were doctored with images from related situations. One image, with the caption, “Man from Saudi spits in the face of the poor receptionist at a Hospital in London then attacks other staff,” represents a situation that happened at a veterinary hospital. The post explains, “On Facebook, we’ve seen years-old images of violent acts, protests and war zones reposted and used to inflame current racial or ethnic tensions.”

Another story promised that NASA would pay people $100,000 “to stay in bed for 60 days.” Although this may sound appealing—and it did garner millions of Facebook views—again, this claim referred to an older article in which a journalist was paid $18,000 for staying in bed for 70 days. But the offer no longer stands.

A Standard study reports that Facebook’s efforts are working to reduce misinformation, although we don’t yet see the same effects on Twitter: “Interactions then fell sharply on Facebook while they continued to rise on Twitter.“ A Mashable report explains:

“Mark Zuckerberg and company may be on the right track when it comes to fighting fake news, but as you can see from those engagement numbers, it’s not a success story quite yet. Even with the downward trend over the past 2 years, Facebook is still responsible for much more of the spread of fake news than a social platform like Twitter.”

Discussion:

  • How do you interpret Facebook’s progress?

  • Assess the Facebook post. How well is the company taking responsibility and explaining what still needs to be done?

Facebook's Messaging Over Time

The Wall Street Journal reports how Facebook has repositioned itself since its founding in 2004.

In 2005, at Harvard, founder Mark Zuckerberg said Facebook’s purpose is to ”look people up” and for “connecting to people.” In 2008, Facebooke expands and messages focus on helping people “share information. . . and share parts of their identity with each other.” In 2010, Zuckerberg’s vision enlarged: “People can have instantly social and personalized experiences everywhere that they go.” Soon after, Zuckerberg focused on problem solving.

In 2012, Zuckerberg said, “Our mission isn’t to be a public company. Our mission is to make the world more open and connected.” By 2013, Zuckerberg was seeing Facebook’s role in selecting governments, getting healthcare access—improving people’s lives.

More recently, given concerns about privacy and misinformation, Zuckerberg’s messages focus on responsibility.

Image source.

Discussion:

  • The WSJ video has a negative connotation about Facebook’s changing message, particularly in light of today’s news about shareholder proposals to split Zuckerberg’s roles. Do you agree with this assessment?

  • How well has Zuckerberg handled messages about the evolution of Facebook in the past 14 years? What, if anything, can he do differently now?

  • Do you agree with the proposal to split the CEO and chairman jobs? In other words, does Zuckerberg have too power? Does he need help at this point?

  • How is Facebook’s evolving messaging a potential matter of integrity?

Senators Send Harsh Letter to Google

US Senate Letter.PNG

The U.S. Committee on Commerce, Science, and Transportation sent a strongly worded letter to Google CEO Sundar Pichai. The senators question what the company has done to protect 500,00 users whose profile information was stolen in 2015. Their anger stems from knowledge of an internal memo, cited in a Wall Street Journal article, discouraging disclosure because of fear of “immediate regulatory interest” and the requirement for Pichai to testify before Congress.

In the letter, the senators compare Google’s response to Facebook’s in light of the Cambridge Analytica breach:

“At the same time that Facebook was learning the important lesson that tech firms must be forthright with the public about privacy issues, Google apparently elected to withhold information about a relevant vulnerability for fear of public scrutiny.”

The senators then list specific information about vulnerabilities for Google to provide by October 30.

Google logo image source.

Discussion:

  • Read the Wall Street Journal article for more background information. Did the senators respond appropriately? Why or why not?

  • What is Google’s accountability in this situation? What is the committee’s accountability?

  • In addition to responding to the senators’ requests, what, if anything, should Google communicate to the public at this point?

  • Google may have been avoiding its own vulnerability.

Climate Change Report

IPCC.PNG

If you weren’t already concerned about climate change, a new UN report may change your thinking. The extraordinary report, written by dozens of scientists from 40 countries who reviewed more than 6,000 studies, reveals a bleak picture for the Earth’s future. The introduction, titled “Chapter 1: Framing and Context” is 61 pages, and the rest of the report is a long, deep dive into the data.

The most significant conclusion is that global warming must be limited quickly. The authors write with great urgency that the Earth’s temperature has already increased and that further increases will create heatwaves, eliminate ice in the Arctic Ocean, melt massive ice sheets, devastate coral reefs, and produce intense storms. Further, global warming will result in more poor people: "Climate change is projected to be a poverty multiplier, which means that its impacts make the poor poorer and increase the total number of people living in poverty.”

The authors suggest limiting the planet's warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-Industrial Revolution temperatures to avoid catastrophic results. They also warn that this requires "rapid, far-reaching, and unprecedented changes in all aspects of society."

A New York Times article, “Dire Climate Warning Lands With a Thud on Trump’s Desk,” describes President Trump’s disinterest in the report findings. Similarly, a text search on today’s Wall Street Journal home page finds an article about Exxon but nothing about the UN report.

Discussion:

  • Analyze the report audience, objectives, writing style, and organization. Which business writing principles are followed?

  • What improvements would you make to improve report readability?

  • What are your views about climate change? What evidence leads to your conclusions?

WhatsApp Message Causes Dramatic Infibeam Stock Price Drop

Infibeam stock.jpg

Infibeam, an India e-commerce company, lost more than 70% of its stock value after a WhatsApp message questioned the company’s governance. The message was reported to be sent by an analyst at Equirus Securities months ago, but it only recently surfaced and went viral. Equirus denies involvement.

An India Times article explains the message:

“The note said the company gave an interest-free and unsecured loan to a subsidiary with negative net assets to be repaid over eight years. The note also mentioned that the company has re-classified its co-founder, who continues to hold a large chunk of shares, as non-promoter.”

An Infibeam spokesperson responded to the controversy:

“The company has given interest-free unsecured loans to its wholly owned subsidiary NSI Infinium Global since inception. These loans are short-term loans which are repayable on demand and have been utilised by NSI solely for its business and operations. Further, there has been no change in the promoters from the list of promoters identified and disclosed by the company info in the offer documents for its IPO.”

Discussion:

  • How can people do a better job at distinguishing between real reports and rumors?

  • How well did Infibeam respond to the news? What effect do you expect on the company stock on Monday?




Facebook Breach Announced Today

Millions of Facebook users inadvertently gave hackers access to their accounts, and the company is trying to fix the problem. Hackers found a way in through the “View As” feature, which people use to see how their profile looks to others.

FP spotlight.jpg

The company learned of the issue this week and today held a conference call with reporters. To the extent to which Facebook could manage the story, it’s the perfect day for such a report, when the country is focused on whether lawmakers will support Brett Kavanaugh’s nomination to the Supreme Court despite allegations of sexual assault.

On the conference call, CEO Mark Zuckerberg stressed that fighting hackers is an ongoing concern:

"This is a really serious security issue. This underscores there are just constant attacks from people who are trying to take over accounts and steal information from our community. This is going to be an ongoing effort." 

Facebook’s VP of product development posted a “Security Update” statement on Facebook’s news site, including this reassurance:

“People’s privacy and security is incredibly important, and we’re sorry this happened. It’s why we’ve taken immediate action to secure these accounts and let users know what happened.”

Cover image source. Spotlight image source.

Discussion:

  • Do you agree that Facebook timed the announcement when a bigger story would likely overshadow the news? Or am I just cynical?

  • Assess the Security Update as a persuasive message. Describe the tone and organizational strategy. How well does the statement achieve its objectives?

  • How well does the company take responsibility for what happened?