Morgan Stanley Clarifies a Termination

In December, a female reporter accused a former congressman who was hired as a managing director at Morgan Stanley of sexual harassment. Morgan Stanley fired Harold Ford Jr., and he lost his gig as a frequent commentator on MSNBC.

Ford had maintained his innocence, and now, the company is saying Ford was not terminated for sexual harassment but was let go because of other misconduct: 

" Morgan Stanley would like to clarify the circumstances of Mr. Ford’s departure. We take allegations of inappropriate conduct seriously, The press has reported that Mr. Ford was terminated for sexual misconduct. He was not. We have not received any internal allegations of sexual harassment or misconduct involving him either before or after his separation became public. As previously stated, his separation was based on corporate policy.”

The statement is curious because it mentions only internal allegations—or maybe I'm reading into it too much.

Discussion:

• How do you read the statement and possible distinction between internal and external?
• Why would Morgan Stanley issue such a statement two months after Ford's termination?

Calls for Michigan State President to Resign

Some believe it's a matter of integrity and accountability; others believe this will start the healing process. In addition to public demands, one Michigan State trustee says it's time for the university president to resign over Dr. Lawrence G. Nassar's sexual abuse of dozens of female athletes.

The rest of the university trustees have shown public support for the president, Lou Anna Simon. In a statement, they said, "President Simon is the right leader for the university, and she has our support." But the sole trustee, Mitch Lyons, disagrees:

“I don’t feel that President Simon can survive the public outcry that has been generated by this tragedy. I feel that our best recourse is for President Simon to resign immediately in order to allow the healing process to begin."

According to a Detriot News story, several university officials, including the president, heard complaints about Nassar. Simons admits, “I was informed that a sports medicine doctor was under investigation. I told people to play it straight up, and I did not receive a copy of the report. That’s the truth.” People question her judgment in not seeing the final report, particularly given the recent explosive case at Penn State University. We will see what happens next.

Image source.

Discussion:

• Should Simon resign? Why or why not?
• What does it take for Lyons to break rank with the rest of the trustees? How would you describe the possible dynamics on the board?
• How does such abuse go on for so long? About 140 women complained about Nassar when he was working with Olympic athletes, and at least eight students came forward at the Michigan State.
• At the end of the trustees' statement, a reporter asks, "Why no questions?" But the board leaves the room without saying anything. Should they have taken questions? Why or why not?

Sonic Restaurant Tailors Communication

A New York Times article describes Sonic Drive-In's approach to different communication styles:

"... colors near employees’ nameplates signal their preferred communication style. Red means be brief, and blue suggests that people provide more detail."

This is a simple, creative way for employees to ask to be communicated with in a way that works for them. You might also see how this could benefit communication with customers and help employees tailor their own preferred style. It could encourage employees to pay attention to non-verbals, such as moving away or losing attention, that signal someone is talking too much. The colors also reinforce the brand.

We know that responsibility for communication is shared, yet this puts added pressure on the person conveying a message. How do you shorten your own style if you're verbose? How do you add detail if you're typically concise?

Image source.

Discussion:

• How would you describe yourself: blue or red?
• Think of a time when your style didn't match that of another person. In what ways were you able to adjust, and what was difficult for you?

Shark Tank Episode Illustrates Lack of Listening and Humility

The owners of Birddogs didn't do very well on Shark Tank. In Season 9, Episode 14, investors grilled the makers of gym shorts with built-in underwear and were skeptical about their responses.

At some point, Kevin O'Leary stopped the discussion to ask how they thought things were going. They didn't say much at that point, but viewers knew the answer: they probably wouldn't get a deal. At the end, Daymond John, the clothing expert and most likely partner, said, "You were also telling us about how you're better than everybody else. . . . I think it's a very elitist attitude, and I just wouldn't be able to work with you."

The entrepreneurs spoke in generalities about how their marketing was better than that of anyone else. They also claimed a 40% email marketing open rate, while their competitors had only 4%, which the sharks didn't believe.

When Lori Greiner was asking questions, one of the owners kept trying to jump in. He didn't demonstrate good listening skills.

Perhaps the worst of it was at the end. In closing, one of the men was incredulous about why they didn't get a deal.

Discussion:

• Watch the episode (available on Hulu). How well do you think the team handled the pitch? Do you share the sharks' view that they were arrogant and that their numbers "didn't add up"?
• How do you assess their presentation skills? What would have improved their delivery?
• How could they have listened and demonstrated humility? Try to give specific examples.

Marriott Apologizes for Mislabeling Chinese Region

Marriott apologized for mistakenly listing Tibet,  Macau, Hong Kong, and Taiwan as countries in a drop-down menu under China. This is a controversial issue, which the company has since acknowledged in a statement on its website beginning as follows:

"Marriott International respects and supports the sovereignty and territorial integrity of China. Unfortunately, twice this week, we had incidents that suggested the opposite: First, by incorrectly labelling certain regions within China, including Tibet, as countries in a drop-down menu on a survey we sent out to our loyalty members; and second, in the careless “like” by an associate of a tweet that incorrectly suggested our support of this position. Nothing could be further from the truth: we don’t support anyone who subverts the sovereignty and territorial integrity of China and we do not intend in any way to encourage or incite any such people or groups. We recognize the severity of the situation and sincerely apologize."

Marriott is not alone in the mistake: 24 airlines have similar website configurations. The Marriott situation was complicated by an employee "liking" a post by Friends of Tibet, suggesting that the company supports the independence of Tibet. 

The statement goes on to describe what Marriott will do differently in surveys in the future.

Discussion:

• Marriott says the survey was created by another company to which the project was outsourced. They don't say it as an excuse, but is it? What is Marriott's responsibility for oversight?
• How well does the statement express the apology? What, if anything, could be improved?

President Trump Refers to "S---hole" Countries

During a meeting about immigration policy, lawmakers heard President Trump ask why the U.S. would admit people from "s---hole" countries like African countries and Haiti instead of places like Norway.

I have refrained here as have some TV news stations (NBC, shown here), but the major print news outlets—NY Times, Washington Post, and Wall Street Journal—all printed the actual profanity. The New York Times explains the decision:

But several media executives said on Thursday that the news value of Mr. Trump’s remarks, which the White House did not dispute, was undeniable.

“It would be futile to mask the word when the language itself, in reference to Haiti and African countries, was so extraordinary,” said The A.P.’s vice president for standards, John Daniszewski.

Discussion:

• Why would some media outlets use the word, while others avoid it? What does the decision involve?
• Some take issue with the reporting about "vulgar," "crude," or "profane" language, calling for the press to call the president a "racist" instead. What are your thoughts? First, does the comment indicate that he is a racist? Second, should the news agencies report this differently?
• An argument could be made that the president is just being himself, authentic. What do you think of this view?

H&M's Product and Photo Criticized

Yet another retailer is criticized for a product and image considered, as Forbes puts it, "racially insensitive." This time, H&M is answering for an image of a black child in a hooded sweatshirt with the message, "Coolest Monkey in the Jungle."

As predicted, the company pulled the product and issued an apology:

"We understand that many people are upset about the image. We, who work at H&M, can only agree. We are deeply sorry that the picture was taken, and we also regret the actual print. Therefore, we have not only removed the image from our channels, but also the garment from our product offering globally. It is obvious that our routines have not been followed properly. This is without any doubt. We will thoroughly investigate why this happened to prevent this type of mistake from happening again."

Still, some people are boycotting H&M, and Grammy winner Abel Tesfaye (aka "The Weeknd") says he is cutting ties with the brand.

Discussion:

• Same question as usual: How did this happen? How could the product and image have passed a review process?
• Abercrombie has been accused of intentionally creating controversial clothing. Do you think this is the case with H&M? Why or why not?
• To what extent is H&M taking responsibility for the incident? What else, if anything, should the company do?

How to Cultivate Self-Awareness

A recent Harvard Business Review article tells us the best way to cultivate self-awareness. We know that self-awareness is critical to leadership and self-development, yet new studies demonstrate the power and limitations of being self-aware.

The author explains, "introspection doesn't always improve self-awareness." When people focus on "why" ("Why did I do this?"), they might dwell too much on their fears and just reinforce the way they are. Instead, asking "what" questions ("What should I do next time to prevent this from happening again?"), encourages learning because it's more objective and focused on the future.

The author also identifies four self-awareness archetypes around our internal and our external self-awareness. Internal self-awareness is understanding our own values, passions, and aspirations, while external self-awareness is understanding how others view these aspects of ourselves.

Discussion:

• Which archetype best describes you? What are the advantages and drawbacks of this orientation?
• How does understanding your archetype help with team communications and teamwork?
• Do you find yourself asking more "why" or "what" questions when you spend time reflecting? How would you describe the potential danger of focusing on "why"?

How Does a White Supremacist Change?

Derek Black grew up in a prominent white supremacist family, but his views about race changed when he went to college and met people who cared to challenge him. The New York Times Daily Show rebroadcast an interview with Black, and we hear first-hand about his growing up and about his evolution. (Read the transcript.)

Black's father started Stormfront, a white nationalist website, and his godfather was David Duke, once a leader of the Ku Klux Klan. Black describes his family and friends as a close group, connected by a shared purpose. Although he says that his family doesn't single out individuals, they believe that IQ is linked to race, and that people of color are biologically inferior.

After spending time with Jewish people and comparing research, Black came to understand—over the course of a year—that his research was flawed. He now denounces the white supremacist movement.

Image source.

Discussion:

• How would you describe Black's transformation? What is significant about his development in terms of understanding cultural differences?
• Black wanted to stay in the background after his discovery, but he says he felt compelled to be more publicly vocal. What are the arguments for and against staying anonymous?
• Describe how Black demonstrates intellectual humility.

Papa John's Vague Message About a New CEO

Papa John's Founder and CEO John Schnatter will be replaced by a long-time insider, Steve Ritchie. Although the company didn't confirm a connection, a New York Times report assumes the move is related to Schnatter's controversial statements about the NFL. He blamed NFL leadership for allowing players to kneel during the national anthem, which he said led to declining viewership and, as a result, declining pizza sales.

The company's news statement also says little about the decision. Instead, the message focuses on Ritchie's qualifications, with endorsements from Schnatter, who will remain board chair.

Schnatter's accusations were criticized by some and, unfortunately, touted by white supremacist groups. Schnatter did his best to disentangle from the association with hate groups, but the damage may have been done.

Image source.

Discussion:

• Did the company make the right decision? What are the potential consequences?
• Should Papa John's say more about the reason Schnatter is stepping down? Why or why not?

Banned Words for the CDC?

The Washington Post may have "mischaracterized" a report that the Centers for Disease Control (CDC) was "banned" from using certain words in its budget documents. Reports claimed that the Trump Administration would prevent the CDC from using these seven words: vulnerable, entitlement, diversity, transgender, fetus, evidence-based, and science-based.

But in a Facebook post, CDC Director Brenda Fitzgerald denied such restrictions. She is upholding the integrity of the organization.

What really transpired between the CDC and the Trump Administration? The Human Rights Commission, an LGBTQ organization, wants to know. In addition to projecting the seven words boldly across a Trump hotel in Washington, D.C., in protest, the organization has asked for more information:

"In conjunction with the enormous light display, HRC has filed a Freedom of Information Act (FOIA) with the Department of Health and Human Services (HHS) for any and all records, including communications with the CDC, relating to the banned words from November 2016 onward."

Discussion:

• How is this an issue of integrity for the CDC? What do you think actually transpired between the CDC and the Trump Administration?
• Where do you think the Washington Post went wrong—or did it?
• Assess the CDC director's response. How well did she handle the issue and rebuild the agency's image? 

Roy Moore's Wife Doesn't Help His Case

At a campaign rally the day before her husband's election for U.S. Senator, Kayla Moore tries to convince audiences that he is a good man. As Roy Moore is accused of sexual assault and harassment of minors, Mrs. Moore tells the audience, "One of our lawyers is a Jew." 

Mrs. Moore apparently didn't realize that the expression, "Some of my best friends are _______" has become a joke. In addition to her arguments against anti-Semitism, she said, "We have many friends that are Black, and we also fellowship with them in our church and in our home." 

We hear weak, scattered applause after this comment. After her note about their attorney, we hear some laughter; perhaps people were embarrassed for her, or perhaps they thought she was poking fun at the old expression. But she was not.

President Trump continues to campaign for Roy Moore as we wait for the people of Alabama to decide tonight. 

Discussion:

• How do you assess Kayla Moore's speech? Her husband seems proud. How do you explain it? 
• Do you agree with the criticism or find it too harsh? 
• What else could Kayla Moore have said to support her husband? 

David Chang Improves His Response

When David Chang's restaurant, Momofuku, received a negative review in the New York Times in 2016, he didn't respond with humility. In addition to lots of cursing, Chang rejected the criticism (f-words omitted):

“I can’t ever read that review again—I’ll get so ___ angry, I’ll die. I made a lot of that food! I tasted it! It was delicious. And . . . ___! I believe in the ___ food we make in that restaurant, I believe it to be really delicious, I believe it to be innovative . . .”

This week, we see a different David Chang. A negative online comment received a warning: "Ruh roh, cue Chang rage," but we see an open, humble response from the man himself:

"[N]o Rage. We learn from this and will make them better. We didn't execute and that's on us."

Discussion:

• Assess Chang's response to @oafloaf. Who are his primary and secondary audiences, and what does he hope to accomplish?
• How do you explain Chang's different reactions? The sources are different, and it's one year later. What else?

Alexa at Work?

Amazon's Alexa is coming to the office in the form of Echo. The company wants to install the voice assistant at offices for help with copying, meeting set-up, directions, and more.

Wirecutter describes the technology and use:

What sets Alexa and Echo apart from first-generation voice assistants is responsiveness. There’s no activation button to press. Simply say the trigger word (either “Alexa,” “Echo,” “Amazon,” or “Computer”) followed by what you want to happen, and it will usually be done—as long as you’ve set up everything properly and are using the correct command. Once you get used to the quirks, using Alexa feels much more natural and responsive than speaking to a phone-based voice assistant like Apple’s Siri. As a result, you’ll likely find yourself using your phone less frequently when you’re at home.

Although the technology may be an issue, BBC reports that the bigger issues are privacy and security. After all, Alexa would always be "on" and would hear everything that goes on in the office.

Amazon plans to partner with makers of cars and appliances, so Alexa can be with you at every step. Some analysts think Amazon's big push on Alexa compensates for its not having a mobile phone to compete with Apple and others.

Discussion:

• Do you use a voice assistant? How do you use it, and how does it work for you?
• What's your view of Alexa at work? What privacy and security issues might concern companies?
• Would you recommend Alexa for some types of business but maybe not others? Which?

NBC Fires Matt Lauer

Another media star has fallen after reports of sexual harassment. NBC fired Matt Lauer after one complaint, but the company mentioned more were likely—and they have come.

Several women tell about Lauer's inappropriate attention, advances, and exposure. He played what Variety called a "crass quiz" at work that categorized women.  

Lauer worked for NBC since 1994, mostly as a "Today" show co-host. Known as "the crown jewel of the network’s news division," Lauer interviewed U.S. presidents and other senior leaders and celebrities throughout this career.

On air, Savannah Guthrie, Lauer's co-host on the show, read a statement from NBC Chairman Andy Lack. She was emotional as she read the decision.

Lauer issued this apology statement: 

"There are no words to express my sorrow and regret for the pain I have caused others by words and actions. To the people I have hurt, I am truly sorry. As I am writing this I realize the depth of the damage and disappointment I have left behind at home and at NBC.

"Some of what is being said about me is untrue or mischaracterized, but there is enough truth in these stories to make me feel embarrassed and ashamed. I regret that my shame is now shared by the people I cherish dearly.

"Repairing the damage will take a lot of time and soul searching and I'm committed to beginning that effort. It is now my full time job. The last two days have forced me to take a very hard look at my own troubling flaws. It's been humbling. I am blessed to be surrounded by the people I love. I thank them for their patience and grace."

Discussion:

• How well does Guthrie handle the announcement?
• Did NBC do the right thing in terminating Lauer? Was it too much of a risk after just one complaint?
• Assess Lauer's apology. How convincing do you find the statement? What else, if anything, could he say?

"Happily Gentrifying" Isn't Well Received

A Denver coffee shop is facing backlash from neighbors after posting a sign outside the building: "Happily Gentrifying the Neighborhood Since 2014."

Not everyone is a fan of gentrification, which typically means higher-income shops coming into a neighborhood with increasing rents. Often the result is that people of color and with lower incomes get driven out.

The coffee shop faced a broken window, graffiti outside the building that read "White Coffee," and about 200 protestors.

After initially dismissing the complaints and calling the sign a joke, the company founder said he didn't "fully appreciate the very real and troubling issue of gentrification."  He also said, "I recognize that we had a blind spot to other legitimate interpretations. I sincerely apologize—absolutely and unequivocally."

Discussion:

• Should the founder or store manager have know better than to post such a sign? Or was it a careless mistake? Or something else?
• How do you assess the founder's initial and follow-up responses? How could he have demonstrated more humility?

CBS This Morning Responds to Charlie Rose

After CBS co-host Charlie Rose was suspended for sexual misconduct, Gayle King and Norah O'Donnell were left to pick up the pieces. They didn't shy away from addressing issues directly. 

O'Donnell read from a script, and King had a script but didn't follow it as closely. She spoke from a more personal perspective, saying she is "not OK," and "I am still reeling." She mentioned her personal relationship with Rose but said, "He doesn't get a pass."

King hit on some points we haven't been hearing much about during all of reports of sexual misconduct, for example, the impact on women's bodies and on their careers and on what it's like for people close to an accuser to have conflicting, confusing feelings about the person.

The Washington Post covered allegations of sexual misconduct against Rose, including eight women, whose stories had "striking commonalities." Rose issued an apology statement:

“In my 45 years in journalism, I have prided myself on being an advocate for the careers of the women with whom I have worked,” Rose said in a statement provided to The Post. “Nevertheless, in the past few days, claims have been made about my behavior toward some former female colleagues.

“It is essential that these women know I hear them and that I deeply apologize for my inappropriate behavior. I am greatly embarrassed. I have behaved insensitively at times, and I accept responsibility for that, though I do not believe that all of these allegations are accurate. I always felt that I was pursuing shared feelings, even though I now realize I was mistaken.

“I have learned a great deal as a result of these events, and I hope others will too. All of us, including me, are coming to a newer and deeper recognition of the pain caused by conduct in the past, and have come to a profound new respect for women and their lives.”

Discussion: 

• What's your view of this segment? How well do you think the co-hosts handled the situation?
• Assess Rose's apology. How does it compare to others we have seen?
• Rose was revered in the industry, but CBS didn't hesitate in suspending him. Did they do the right thing?

More Criticism for Starbucks' Coffee Cup

Starbucks' coffee cup isn't spared another year of criticism. In 2015, Donald Trump, before he was president, said the company participated in a "War on Christmas" because its cup was a solid red color with no Christmas symbols.

This year, the company is accused of having a "gay agenda." At one point during the promotional video, two women have their hands on a cup and are looking at each other. A company spokesperson said, "This year's hand-drawn cup features scenes of celebrating with loved ones-whoever they may be. We intentionally designed the cup so our customers can interpret it in their own way, adding their own color and illustrations."

A compilation of Starbucks Christmas coffee cups shows an interesting history. The first holiday cups, in 1997, were in four colors, none of which were red. Also, although this year's cup is identified as "not red," many of the drawings are red.

Starbucks is no stranger to controversy. During the political firestorm earlier this year, CEO Howard Schultz promised to hire 10,000 refugees by 2022.

Discussion:

• How do you interpret the coffee cup? What does it mean to you? Do you think Starbucks is trying to promote a "gay agenda"?
• This may be another example of "brand activism." Should Starbucks stay out of the fray or take a stand on some issues? What are the advantages and downsides of each approach?

Papa John's Gets Clear About Neo-Nazis

After Papa John's CEO John Schnatter criticized NFL leadership for allowing players to kneel during the national anthem, the alt-right claimed Papa John's as their "official pizza." The announcement came on The Daily Stormer, a neo-Nazi website.

This was a little too close for Schnatter, and he denounced neo-Nazis in a series of tweets, the last one including a middle finger. In addition, company wrote in a statement, "We condemn racism in all forms and any and all hate groups that support it. We do not want these individuals or groups to buy our pizza."

Papa John's has softened its stance. The company also replied to a critical tweet after this series was tweeted:

Discussion:

• Read all of Papa John's tweets. How well is the company recovering from the situation?
• Clearly, they are alienating neo-Nazis-and that seems to be the point. What are the benefits and downsides of their approach? On balance, why do you think the company made this decision?

Professor's Derogatory Yelp Review

A Boston University professor posted a Yelp review with personal comments about restaurant employees. Dirk Hackbarth, at BU's Questrom School of Business, didn't like the service at Café ArtScience and wrote a review, referring to the employees' weight. He described the general manager as "fat guy" and wrote of the bar director, "Asian cool skinny dude at bar was friendly but knew he was powerless vis a vis the host - different weight class I guess though fat guy probably never heard of mma [mixed martial arts] tricks etc."

The school dean tweeted,

"We are aware of an inappropriate Yelp review posted by a member of our faculty. It does not represent our views and values. We are extremely disappointed by this occurrence."

The original Yelp post was deleted. Two prohibitions in Yelp's Terms of Service may apply to this situation:

• Writing a defamatory review
• Promoting bigotry or discrimination

Discussion:

• Assess the dean's response. Who is his audience, and what are his objectives?
• Did Yelp do the right thing by deleting the review? Why or why not?
• How do you see this situation as potential issues of humility and integrity? Consider the professor's role and standing at the university.