Interview with Delta CEO
In a LinkedIn interview, Delta CEO Ed Bastian discussed the decision to revoke the National Rifle Association (NRA) discount after the Parkland, FL, shootings, one year ago. The discount was for NRA members, and only 13 took advantage. But the real loss was in $40 million in tax benefits, which Georgia Governor Cagle fought to strike after the company’s decision.
Bastian admits that the loss was significant. But he concludes, “Our brand is worth so much more, and our values are not for sale.”
Bastian refers to the NRA’s “divisive rhetoric” and says that he didn’t want “to be seen as advocates” of the organization and its views. He also describes what we might call authentic or purpose-driven leadership:
"If you know who you are, you can make those decisions. And that you can make those decisions and sleep well at night.”
Discussion:
What leadership character dimensions are demonstrated by this situation?
Do you think Bastian did the right thing for Delta? Why or why not?
How well does Bastian address the interviewer’s question? Overall, how do you assess his delivery?
Emails to International Duke Students Sparks Controversy
Faculty at Duke University Medical Center have been criticized for asking international students to speak only English. The controversy started when an administrator of the biostatistics program sent an email after hearing complaints from faculty members that Chinese students were speaking “VERY LOUDLY” in their native language in “student lounge/study areas.” The faculty expressed concern that students “were not taking the opportunity to improve their English and were being so impolite.”
Also in the email, the administrator said that faculty asked for students’ names so that they might deny them job and project opportunities.
Students took offense and started a petition. In response, the administrator of the program stepped down from her position, and the university posted a letter to students in the program.
Discussion:
What’s your view of international students speaking in their native language at an American University?
Was the administrator out of line? Why or why not?
How do you assess the university’s response to the controversy?
What leadership character dimensions are at play?
Lawsuit Charges Purdue Pharma Family with Instigating Opioid Crisis
In a 312-page complaint, Massachusetts lawyers detail how members of the Purdue Pharma family contributed to the opioid epidemic. The complaint shows the company’s aggressive marketing strategy, including how it convinced doctors to over-prescribe drugs.
One argument in the documentation shows how representatives were trained to encourage doctors to prescribe medication to what the company called “opioid-naive” patients:
Purdue also promoted its drugs for opioid-naive patients using the receptive term “first line opioid.” “First line” is a medical term for the preferred first step in treating a patient. Opioids are not an appropriate first line therapy. Nevertheless, Purdue’s internal documents and testimony from sales reps shows that Purdue repeatedly promoted OxyContin as “first line” — “the first thing they would take to treat pain.” (Sic: “first-time opioid” should include a hyphen.)
A 2001 email written by Richard Sackler, whose family owns OxyContin, blames victims:
“We have to hammer on abusers in every way possible. They are the culprits and the problem. They are reckless criminals.”
The lawsuit also charges the family with claiming that opioids are addictive to only one percent of the population, although they had no evidence for that claim.
This lawsuit follows others in Washington, Ohio, and Alabama. Last year, the company did stop promoting opioids.
Discussion:
Read more in the legal complaint. According to the documentation, how did the company wrongfully use persuasive communication?
In some of the documentation, we see ads and tactics that any company might use. Which do you find to be typical examples, and which cross an ethical line?
MSU Gets Another New Interim President
Michigan State University hired a second interim president. First, President Lou Anna Simon resigned after 13 years following criticism that she didn’t do enough to stop Dr. Larry Nassar from abusing girls. John Engler replaced her as interim president in 2018, but he, too, faced criticism for insensitivity to Nassar’s victims.
Most recently, Engler commented after a $425 million fund was approved for 332 current claimants and another $75 million was approved for additional victims. Engler said, “The people who got the $425 million are probably OK." Engler said he was thinking more about the potential additional victims who haven’t been part of the process yet. He made things worse when he said more:
"You’ve got people, they are hanging on and this has been … there are a lot of people who are touched by this, survivors who haven’t been in the spotlight. In some ways they have been able to deal with this better than the ones who’ve been in the spotlight who are still enjoying that moment at times, you know, the awards and recognition. And it’s ending. It’s almost done.”
People took great offense to his implication that the earlier claimants have “enjoyed the spotlight.” So now, MSU has a new interim president, Satish Udpa.
Discussion:
Try to see Engler’s point of view. What was he trying to convey with his comments?
We might say that Engler’s comments lacked compassion. What else is problematic about his comments?
What’s your view? Was forcing Engler’s resignation the right thing to do? Why or why not?
Report on Larry Nassar
A new report on the former Olympics coach and doctor, Larry Nassar, blames officials at Michigan State University, the U.S. Olympics Committee (USOC), and USA Gymnastics for allowing his abuse of hundreds of girls over decades. The investigators concluded, “Numerous institutions and individuals enabled his abuse and failed to stop him.”
In some cases when officials learned of an abuse allegation against Nassar, they waited weeks or months to report to; in other cases, officials reported claims but didn’t do enough to follow up. In still other cases, officials did nothing at all.
Nassar was finally convicted and sentenced to what will be life in prison. With the report results, some hope the USOC will now be investigated.
The report aligns with an NPR podcast, Believed, tracing claims against Nassar and his medical defense, which was accepted by too many for too long.
Discussion:
How do you think the abuse continued for so long? If you listen to the podcast Believed, you’ll hear Nassar’s defense during police interviews.
Analyze the report. What business communication principles are followed, and in what ways could the report be improved?
GM Lays Off 15,000 Employees
General Motors will lay off about 15,000 employees and close five U.S. factories. About 2,250 employees accepted a voluntary buyout, which could include six months of pay. But that number wasn’t enough for GM to reach it goals.
About 8,000 salaried employees, or 15% of the workforce, will leave the company. Engineers and designers are hardest hit, and the company will hire more technology workers to focus on electric and hybrid vehicles. The move reflects shifts in consumer preferences against small cars, such as Cruze compact and Volt, in favor of SUVs and trucks. Gas prices are low, so people want larger, more convenient vehicles.
In a statement, GM outlined its plans for the future, and Chairman and CEO Mary Barra explained the decision:
“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future. We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”
President Trump said he spoke with Barra and was “very tough.” He also said he’s “not happy” about the plant closings and is hoping for the company to rebuild in Ohio.
Discussion:
Evaluate GM’s statement. What business writing principles are followed, and what could be improved?
What else, if anything, should GM do to maintain brand image during the cuts? For example, Barra could agree to media interviews. Should she? Why or why not?
Announcing a Restaurant Closing
Danny Meyer gives us a great model of how to write a bad-news message. In his announcement about closing the restaurant North End Grill, Meyer demonstrates communicating with humility and transparency.
Meyer describes the pain involved in closing a restaurant, including the effect on employees. He admits to mistakes and relates this closing to Tabla, which closed four years ago. He didn’t need to remind us, but he does so humbly, and as a lesson to learn from failure.
Meyer’s message is encouragement for compassionate, transparent communication planning:
All too often in our industry, a padlock on the front door might be the very first notice employees, landlords, and suppliers receive that a restaurant will be closing.
He also teaches us that leading requires courage:
[W]hen reality dictates closing, we have a choice: to do so in secrecy and shame, or instead, with dignity, integrity, and pride.
Restaurant image source. Meyer image source.
Discussion:
Analyze Meyer’s full statement: audience, objectives, writing style, organization, etc. What works well, and what could be improved?
In what ways does Meyer’s statement illustrate vulnerability as a leadership strength?
One Way to Increase Understanding
Wanting a break from technology, singer and songwriter Gabriel Kahane traveled the United States by train, meeting people and hearing their stories. Right after the 2016 presidential election, Kahane rode Amtrak trains for almost 9,000 miles to understand how people across the country think and feel.
Kahane describes his strategy for what he calls “radical empathy”:
I set some ground rules for myself when I was on the train. One of the things that I was really interested in doing wasn't arguing with people. And I think that that is sort of one of the fundamental problems that we face right now, is this idea we all sort of have contempt for the other side.
We say, well, I just can't engage with that person. And there were some cases where I failed, and I would then go back to my sleeper car and write in my journal: You argued. You said you weren't going to do that.
Kahane challenges how much importance we place on “efficiency.” He says that downtime gives us space to reflect about shared, complex problems: “I think there's a real consequence to not having that space to just sit silently and think, what is it to be in this other person's body.”
Discussion:
What’s your view of “radical empathy,” as Kahane describes it? What is the value, and what are the downsides of his approach?
What character dimensions does Kahane illustrate in this story?
News Conference About Shooting
A former marine shot 12 people in a California bar, and local officials delivered a news conference. Ventura County Sheriff Geoff Dean spoke first (about 5:00 on the video) to explain officers’ response and what they knew at the time.
We see the sheriff get emotional when answering questions about his deputy, Sergeant Ron Helus, who also died.
The shooting was particularly painful for people at the bar who also survived the Las Vegas shooting about a year ago. One young man, Telemachus Orfanos, survived the earlier incident but not this one.
Discussion:
Assess Sheriff Dean’s statement for content, organization, and delivery. What worked well, and what, if anything, could be improved?
Assess how well Sheriff Dean responded to media questions.
Controversy About Wildfires
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?
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.”
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?
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
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?
Megyn Kelly Terminated from NBC
NBC Today Show host Megyn Kelly said she thought it was acceptable to wear blackface for Halloween. Kelly might need to brush up on the history of blackface, which started in minstrel shows in the 1800s. Then, like now, blackface reinforced racial stereotypes and was terribly demeaning to black people.
Kelly apologized on the show, but people were still upset. Her colleague, Al Roker, said “she owes a bigger apology to folks of color around the country.” NBC waited two days, but insiders say she will be terminated.
Here’s the full text of her email to NBC staff:
Dear friends & teammates –
One of the wonderful things about my job is that I get the chance to express and hear a lot of opinions. Today is one of those days where listening carefully to other points of view, including from friends and colleagues, is leading me to rethink my own views.
When we had the roundtable discussion earlier today about the controversy of making your face look like a different race as part of a Halloween costume, I suggested that this seemed okay if done as part of this holiday where people have the chance to make themselves look like others. The iconic Diana Ross came up as an example. To me, I thought, why would it be controversial for someone dressing up as Diana Ross to make herself look like this amazing woman as a way of honoring and respecting her?
I realize now that such behavior is indeed wrong, and I am sorry. The history of blackface in our culture is abhorrent; the wounds too deep.
I’ve never been a “pc” kind of person — but I understand that we do need to be more sensitive in this day and age. Particularly on race and ethnicity issues which, far from being healed, have been exacerbated in our politics over the past year. This is a time for more understanding, love, sensitivity and honor, and I want to be part of that. I look forward to continuing that discussion.
I’m honored to work with all of you every day.
Love,
Mk
Discussion:
What’s your view of Kelly’s original comments?
Assess Kelly’s email. Do you find her apology meaningful, insincere, or something else?
Did NBC do the right thing by firing her? Why or why not?
We await a statement from NBC. Draft one on behalf of the company.
Which leadership character dimensions are illustrated by this situation?
Bad News at Verizon and Sears
Verizon and Sears employees are facing job loss in the coming months.
Verizon is outsourcing some technology functions to Infosys, resulting in 2,500 jobs leaving the company.
At first, Verizon wasn’t planning to offer severance, but pressure from employees caused company leaders to change the approach. Timing was part of the problem: last month, 44,000 Verizon managers were offered a voluntary severance package to leave the company. Now, about 1,000 employees have a choice of whether to work for Infosys or accept severance pay.
Sears is declaring Chapter 11 bankruptcy after years of attempts to save the department store. The company has been steadily shedding stores. Only 700 are left, down from 1,000 in February, and more than 3,000 about a decade ago.
CNN reports that Sears has been warning investors that they may go out of business, and suppliers are requiring payment up front.
Discussion:
What’s your view of Verizon’s severance plans: unfair, discriminatory, financially necessary, based on sound principles, or something else?
Sears investors and suppliers recognize the likely fate of Sears. How prepared do you think employees are? What could the company do to help employees at this point?
Are U.S. Campuses Coddling Students?
A new book, The Coddling of the American Mind: How Good Intentions and Bad Ideas Are Setting Up a Generation for Failure, explores the impact of political discourse on U.S. college campuses. The book is an expansion of an Atlantic article in which Jonathan Haidt, one of the book authors, disputed “trigger warnings” and other anxiety-avoiding tactics.
The authors are clear that harassment and discrimination are wrong, and that students who experience them should report the incidents. But, according to a Bloomberg article, we may lose the ability to communicate with each other:
“They worry about the What worries him is the looseness of the term ‘bias’ and the idea that students are urged not to work out their concern with the alleged perpetrator but to report it directly to the authorities.”
Also concerning the authors is the high percentage of liberal faculty members. A recent study shows that 39% of the most elite liberal arts schools have no Republican professors. The Bloomberg writer notes the possible negative effect:
"Critics argue that the atmosphere of liberal orthodoxy increases the risk that graduates will enter the workforce without knowing how to confront political viewpoints different from their own.”
Discussion:
What’s your view? Are we coddling students, or do they need more protection and “safe spaces”?
How would you describe the differences among discrimination, harassment, and bias?
How might the issue of protecting people from bias contribute to sexual harassment in the workplace? How can we help people sort out problems at an interpersonal level?
JD.com CEO Arrested for Sexual Misconduct
Richard Liu, founder and CEO of Chinese e-commerce company JD.com, was arrested in Minneapolis for sexual misconduct. Because of his high profile and billionaire status, Liu’s arrest was the most popular topic of conversation on social media in China last week.
Two people describe a case involving a student at the University of Minnesota, part of a joint doctoral program in business administration with Tsinghua University. Liu was released without bail and has returned to China. He denies any wrongdoing, and JD.com posted a statement in Chinese, translated by a student:
Sunday, Sep. 2, 2018
We have noticed that there are rumors and false accusations about Mr. Qiangdong Liu on Weibo (Chinese social media site, similar to Twitter) recently. We hereby declare as follows: Liu was falsely accused while in the US on a business trip, but the police investigators found no misconduct and that he would continue his journey as planned. The company will take necessary legal action against false reporting or rumors.
Monday, Sep. 3, 2018
So far as we know, Mr. Liu was arrested on Aug. 31, 2018 in Minneapolis for investigation. He was released from custody shortly. There was no accusation or bail required for the release. Mr. Liu has returned to China and will resume his business activities as originally planned.
In addition to the stock price drop and embarrassment this causes Liu and JD.com, the company may have a governance problem. Liu is required to attend board meetings in person (although he may be able to join via video or telephone). Without him, as an 80% voting rights owner, the board may be unable to make decisions for the business.
A New York Times article focuses on China’s fascination with self-made billionaires as celebrities. Online discussions featured photos of Jack Ma laughing at Liu’s trouble.
Discussion:
I don’t see a statement or press release from Liu or from the company in English. Should Liu or the company publish something at this point on the website? Why or why not?
What should the company do now to manage through this crisis?
How does the Chinese reaction compare to situations in the United States? Can you think of a similar situation when Americans were fascinated by a leader’s hardship?
Changes at Riot Games
Following allegations of sexism, Riot Games has apologized and is making changes. A long report by Kotaku placed blame mostly on the fast company growth and sexist working environment.
Trying to shed its “bro-culture” stigma, leaders have acknowledged that the company could be more inclusive. In a long statement last month titled, “Our First Steps Forward,” the company starts by apologizing to “to all those we’ve let down.” The statement then lists steps the company will take around inclusion initiatives, staffing, training, and so on
In a more recent statement, the company announced hiring a “leadership and strategy expert,” Frances Frei, who had also worked with Uber. The statement includes this quotation from Frei:
“After spending time with Riot’s leadership and many others across the organization, it became clear that Riot is truly putting everything on the table and committing to evolving its culture. In my interactions with Rioters, I’ve seen extraordinary levels of engagement on these issues across the company. Every Rioter with whom I’ve met truly cares about inclusion, which means real change is possible. Riot isn’t interested simply in fixing problems on the surface, it has the ambition to be an industry leader and to provide a roadmap for others to follow. I share that ambition and am eager to help Riot navigate this process.”
Discussion:
Read Kotaku’s report. How credible do you find the investigation and reporting? What could increase the credibility?
Assess Riot Games’ statement. Who is the audience and what are the communication objectives? How do the organization, writing style, and tone affect your assessment?
Now assess the statement about Frei. What’s your view of including Frei’s statement? What else, if anything, should be included in the statement?
Overall, how well is Riot Games demonstrating accountability? What other leadership character dimensions are demonstrated?
Disneyland Employees Speak Out
Disney employees are on screen in a New York Times op-ed video, "I Work at the Happiest Place on Earth. Why Can’t I Pay My Rent?" A 30-year concierge and a cosmetologist are featured more prominently. One is currently living in her car, and another says, tearfully, that she has spent time in her car. Both say they love their jobs, but along with 75% of Disneyland employees, they can't afford to pay "basic expenses every month." Data comes from a questionnaire and report, "Working for the Mouse."
The argument is for Disney to pay a living wage, and the call is for citizens to vote for an Anaheim proposal that affects Disneyland employees and some local hotel workers. In the video, one claim is that real wages have declined because of inflation—what $15 per hour bought seven years ago isn't the same today.
Business leaders who are fighting the measure say that the increase would hurt jobs. One local Chamber of Commerce member argued, "We estimate 3-4,000 jobs lost over next year or two by companies having to absorb this new increased cost. They're going to reduce hours and reduce jobs."
Senator and former presidential candidate Bernie Sanders is also featured in the video. He is proposing a bill he calls "Stop BEZOS" to tax Amazon and other large companies for public assistance received by their employees. The idea is for companies with 500 or more employees to pay the government back for support paid to their employees who cannot survive on earned wages.
Discussion:
- How well does the video make the case for higher wages? Which are logical and which are emotional appeals? What evidence is presented?
- Assess the credibility of the questionnaire and report, "Working for the Mouse." From your assessment, what makes the report both credible and questionable? In what ways does the report reflect business communication standards, and in what ways does it fall short?
- Research the impact of raising wages on industry, for example, this Cornell report. What's your view of this argument? It's a complicated question because of different industries, locations, labor supply, rates, etc.
- In what ways do the employees featured in the video demonstrate courage? What risks did they take in appearing on screen?
Archbishop Calls for Pope's Resignation
As more allegations of sexual abuse within the Catholic church become known, the most senior levels of the organization are facing new challenges. Last week, Pope Francis wrote a letter chastising abusers and calling on the Church to do better. Today, a former senior Vatican, who was an ambassador to the U.S., accused the pope of knowing about and covering up abuse cases since 2013. He is calling on the pope to resign.
The situation involves Archbishop McCarrick, who resigned as cardinal in July. McCarrick is accused of sexually abusing seminarians, and the Pope is accused of "rehabilitating" him rather than disciplining him and removing him from his position.
Archbishop Carlo Maria Viganò explains his reasoning in documented "testimony," including this segment:
Image source of Pope Francis and Archbishop McCarrick.
Discussion:
- Should the pope resign? Why or why not? How does this situation compare to corporate examples? Consider the hierarchy and relationships.
- In what ways is this situation a matter of integrity?
- Viganò uses the word parrhesia. What does this mean, and how does this relate to business communication?
- Which other leadership character dimensions are illustrated by this situation?
School Policy for "Natural" Hair
An 11-year-old black girl was sent home from school because her hair didn't fit guidelines for "natural" hairstyles. Over the summer, Christ the King Parish School in Terrytown, Louisiana, established a new policy, published in its handbook, banning hair extensions, which Faith Fennidy was wearing.
Videos show Fennidy crying, and critics called the policy discriminatory. But the Archdiocese of New Orleans defended the school's decision:
"This policy was communicated to all parents during the summer and again before the first day of school, and was applied to all students.
"The school offered the student's family an opportunity to comply with the uniform and dress policy and the family chose to withdraw the student; the student was not suspended or expelled."
A representative for the school also said, "We remain committed to being a welcoming school community that celebrates our unity and diversity." Fennidy decided not to return to the school.
Discussion:
- What's your view of the policy? Do you find it appropriate, discriminatory, or something else?
- How do attire policies in companies compare? What examples of similar policies have been problematic for companies?
- Read more about the situation on BusinessInsider. How well did the school handle the situation? What, if anything, could have been done differently?