Integrity, 02 and 03: Interpersonal Amy Newman Integrity, 02 and 03: Interpersonal Amy Newman

Papa John's Gets Clear About Neo-Nazis

TempAfter 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:

Temp

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?
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Florida State University Suspends Greek Life Activities

A fraternity member's death was the last straw for the president of Florida State University. John E. Thrasher suspended all fraternity and sorority activities on campus, calling for "a new normal for Greek life." Temp

The student death, which occurred during pledging, follows another student death in September and cocaine charges for another member. In a statement, Thrasher explained the decision and called on the Greek community to find innovative practices. He emphasized the importance of the pause: "The president said this pause is needed to review and reflect on the loss of a young life."

In a long list, the university itemizes what is not allowed, including meetings or events, and specific FSU activities are mentioned, such as Homecoming "pomping, skit night, or spear-it night."

Discussion:

  • The university website refers to the decision as an "indefinite interim suspension." Sounds redundant, doesn't it? Do you think this is intentional or a grammatical oversight?
  • Assess the university's FAQs. How well does the administration anticipate and address questions?
  • The president is demonstrating compassion and courage, but of course, not everyone agrees with the decision. What are the counterarguments?
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Wells Fargo's Stiff CEO Video

TempWells Fargo is still trying to rebuild trust after several scandals, including creating millions of fake accounts for customers. The company sent emails to customers and included a link to a new video featuring CEO and president Tim Sloan.

The email starts with a sort-of apology, indicating that they haven't communicated enough.

Wells Fargo home page
 
Dear Wells Fargo Customer,

Customers like you have told us they want to hear more about what we've been doing to address our challenges over the past year.

Please click here for a two-minute message from our CEO and President, Tim Sloan.

We've been making things right for our customers and team members, compensating customers who were harmed, and rehiring thousands of team members.

We've been holding senior leaders responsible, up to and including termination, and the forfeiture of hundreds of millions of dollars in executive compensation.

And we've been fixing what went wrong, including the elimination of product sales goals for retail bankers in our bank branches and call centers, reinforcing our commitment to ethics and integrity, and refocusing everything we do on our customers.

For more details and the latest on our ongoing efforts to build a better company for our customers, please go to www.wellsfargo.com/commitment.

 

Sloan's messages are consistent: they take responsibility, and they are trying to "make things right." But Sloan is as stiff as he was in another video, created in April.

Discussion:

  • Do you agree or disagree with my criticism of the email and video? Why or why not?
  • How else would you evaluate the email and video?
  • Sloan also isn't giving many specifics. What else, if anything, should he say?
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Pizza Hut and Papa John's Jump into NFL Controversy

Should CEOs get involved in political controversies? While some applaud "brand activism," others criticize business leaders who don't agree with their views.

Papa John's CEO has been vocal about the business impact of NFL players not standing during the national anthem. When explaining same-store sales, John Schnatter blamed NFL leadership:

"We are totally disappointed that the NFL and its leadership did not resolve the ongoing situation to the satisfaction of all parties long ago. This should have been nipped in the bud a year and a half ago."

Schnatter also said, "Leadership starts at the top, and this is an example of poor leadership." Schnatter contributed $1,000 to President Trump's election campaign and is aligned with the president's views on the subject. He blamed the "polarizing" actions of team members for causing declining viewership and fewer pizza orders. 

But others say NFL viewership was declining long before this political controversy, and Pizza Hut jumped into the conversation. Greg Creed, CEO of Yum! Brands, Pizza Hut's parent company, said the NFL hasn't affected its sales at all.

Daniel Roberts tweeted stock comparisons on Yahoo to show that Papa John's (in red) has been declining for some time. Yum Brands is in blue. But we should be careful about comparing "apples and oranges" here.

Discussion:

  • How is the stock comparison flawed? (Hint: What companies are compared?)
  • What do you think of Papa John's CEO's statements? Should he stay out of it, or is he right to express his views?
  • How is this story an issue of leader integrity?
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Harvey Weinstein's Plea

TempHarvey Weinstein may have worsened his case by sending emails to friends asking for their defense. After several allegations of sexual harassment and at least two charges of assault over decades, the Hollywood producer's board of directors was getting ready to fire him from the company. Not willing to go quietly, Weinstein emailed people, including Jeffrey Katzenberg, the chairman of Walt Disney Studies. But he didn't get the response he was expecting.

Weinstein's email is below. He demonstrates some vulnerability but fails to take full responsibility, instead saying "a lot of the allegations are false as you know":

My board is thinking of firing me. All I'm asking, is let me take a leave of absence and get into heavy therapy and counseling. Whether it be in a facility or somewhere else, allow me to resurrect myself with a second chance. A lot of the allegations are false as you know but given therapy and counseling as other people have done, I think I'd be able to get there. 

I could really use your support or just your honesty if you can't support me. 

But if you can, I need you to send a letter to my private gmail address. The letter would only go to the board and no one else. We believe what the board is trying to do is not only wrong but might be illegal and would destroy the company. If you could write this letter backing me, getting me the help and time away I need, and also stating your opposition to the board firing me, it would help me a lot. I am desperate for your help. Just give me the time to have therapy. Do not let me be fired. If the industry supports me, that is all I need. 

With all due respect, I need the letter today.

Instead, Katzenberg emailed Weinstein and made his response public. In part, he says, "You have done terrible things to a number of women over a period of years," yet Katzenberg calls him a friend and offers his help.

An interesting part of this story is the criticism of men who have come forward with a preface such as, "As a father of two daughters." A writer for Vulture explains this perspective.

Image source.

Discussion:

  • What's your view of Weinstein's letter to his friends? What other approaches could he take knowing his board is planning to fire him?
  • How do you assess Katzenberg's response and his choice to make the email public? Is he a bad friend? What is he trying to accomplish for himself and for Weinstein in his response?
  • Finally, what's your view of people referencing their wives and daughters? Is the Vulture writer's perspective spot on, too harsh, or something else?
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Pro-Life Congressman Resigns

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

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

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

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

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

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

Murphy also posted a statement on his website:

Statement From Congressman Tim Murphy

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

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

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

Image source.

Discussion:

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

TempFormer Equifax CEO Richard Smith admitted failures during a House Energy and Commerce Committee hearing. Smith had already apologized in a video statement, but during the hearing, he mentioned his personal accountability:

"The criminal hack happened on my watch. I am truly and deeply sorry for what happened."

Yet critics say that Equifax is still not taking full responsibility. A TechCrunch article highlights Smith's testimony blaming one person: 

"The human error was that the individual who's responsible for communicating in the organization to apply the patch, did not."

The TechCrunch writer seems to think this is ridiculous:

"The notion that just one person didn't do their job and led to the biggest breach in history is quite an amazing claim and shows a fundamental lack of good security practices. But that's what Smith says led to this disaster."

Smith and Equifax's CIO retired from the company after the news became public, which took a while: executives apparently knew about a software issue back in March, but the company didn't announce the breach until September.

A Wired article cites "6 Fresh Horrors from the Equifax CEO's Congressional Hearing." In addition to the delayed admission, the article attack's Equifax's technology, including inadequate patching, failure to encrypt data, limited security reviews, and insufficient website capabilities.

Another twist is this case is why three top people in the company sold $1.8 million in stock around the time they would have learned of the breach. Smith denies questions of integrity:

"I've know these individual for up to 12 years. They're men of integrity. I have no indication that they had any knowledge of the breach when they made this sale." 

Image source.

Discussion:

  • Assess Smith's testimony. What parts do you find most and least convincing? 
  • What else, if anything, should Equifax do now to rebuild trust?
  • In what ways is this case an issue of integrity?
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Integrity, 07: Persuasive Amy Newman Integrity, 07: Persuasive Amy Newman

Coca-Cola Works on Brand Image

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

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

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

Discussion:

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

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

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

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

Mayor Jackie Biskupski:

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

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

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

Chief Mike Brown:

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

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

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

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

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

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

Discussion:

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

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

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

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

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

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

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

Discussion:

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

TempAirbnb is offering free rooms for people who had to leave their homes because of Hurricane Harvey. Evacuees won't have to pay fees to hosts through September 25. Originally, the offer was through September 1, but the company extended it after seeing the storm's devastation. Free listings appear for homes in Houston, Dallas, Austin, and San Antonio.

Conditions are explained on Airbnb's Disaster Response site. Currently, the site lists programs for Hurricane Harvey and for the Mumbai floods.

Other sharing companies have stepped up following the hurricane. Uber, Lyft, and WeWork are offering free services and other promotions. 

Discussion:

  • What examples of generosity have you seen during Hurricane Harvey?
  • How should a small business owner decide what to offer? What are the advantages and disadvantages of, for example, a restaurant offering free food?
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Companies Criticized for Price Gouging

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

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

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

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

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

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

Image source.

Discussion:

  • What's your view of raising prices during disasters? How is this different from revenue management?
  • Analyze Best Buy's statement. How well does this meet audience needs and communication objectives?
  • Did Best Western do the right thing in severing the hotel from the company? What will be the consequences of this action?
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Is Poland Spring Water from Poland Spring?

Poland.jpg

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

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

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

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

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

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

Discussion:

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

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

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

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Martin Shkreli's Failed Communications

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

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

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

In 2014, he tweeted about his board of directors: 

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

Image source.

Discussion:

  • What is the value of an apology, and how could saying "I'm sorry" have helped Shkreli?
  • What non-verbal behavior does Shkreli demonstrate? For example, watch 8:00 - 9:00 of the Congressional hearing. How do you interpret his non-verbals?
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Brother's Response to My Complaint

TempOn my Brother printer, the "Toner Low" light came on, and I shook the toner, which always gives me several more pages of good quality printing. But at some point, the printer wouldn't print anymore. To my eye, the pages still looked good. I was printing pages of my new book to proofread and didn't notice a difference for my purpose.

I emailed Brother to see if I could override the function and get more out of my cartridge. (Replacements cost about $50.) I saw several YouTube videos with instructions, so clearly I'm not the only one who has this idea. But I couldn't find my model. I asked Brother for help, and this is the response I received: download Brother printer response.

I appreciate that the purpose is up front in the email and that my question is answered. But the email is so long and not very well organized. Also, the writer spends a lot of time defending why the printers are set up to stop. Of course, quality is important, but shouldn't I get to decide what is "good enough" for my print jobs? My HP printers keep going until they're grey and streaked.

Discussion:

  • What's your view of the function to stop printing? Am I just cheap, or should Brother avoid the shutoff?
  • What are the communication objectives for Bother's response? What is important for a customer in this situation?
  • How could the writer have organized the email differently?
  • How clear are the instructions?
  • What else would improve the message?
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Comparing CEO Statements

TempA writer for The New York Times doesn't condemn CEOs for leaving President Trump's business advisory councils, but she says that we should expect more, particularly from those who gave what she considers vague statements. Zoe Greenberg writes,

It's fine to thank these executives for doing the right thing. But to look to these men as brave leaders? Let's not lower our standards, both politically and morally, so far that we're cheering for the absolute bare minimum of human decency.

She gives the example of Brain Krzanich of Intel's statement:

 I resigned to call attention to the serious harm our divided political climate is causing to critical issues, including the serious need to address the decline of American manufacturing.

The Los Angeles Times rounded up 15 CEOs' statements about their decision to leave, some before the Charlottesville incident. Comparing the statements and the reasons they identified is an interesting exercise. Some executives used the opportunity to promote their companies, and some gave more specific reasons that others.

Image source.

Discussion:

  • Which executives most used the opportunity to promote their company?
  • Which gave the most vague and most specific reasons for leaving?
  • What other differences do you notice?
  • Which statements do you find most effective and why?
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CEOs Leave President Trump's Business Advisory Councils

TempSeveral CEOs have left or were planning to leave President Trump's business advisory councils after his response to the Charlottesville, VA, incident. President Trump has been stalwart in blaming "both sides" of the protests in Charlottesville, which escalated in violence. For some CEOs, the response wasn't strong enough in condemning white supremacists. In a news conference, President Trump said there was violence among the liberal contingent as well as those wanting to, for example, defend confederate statues. He drew an analogy between George Washington and Thomas Jefferson, who owned slaves, with Robert E. Lee, who led the confederate army during the U.S. civil war.

Merck chief executive Ken Frazier was the first to resign from the president's manufacturing council. Others filed suit, and still others planned to resign, including Indra Nooyi of Pepsi, Jamie Dimon of JP Morgan, Alex Gorsky of J&J, and Jeff Immelt of GE.

Doug McMillon, Walmart's chief executive, has been vocal and has faced criticism from Walmart customers. In a memo to employees, McMillion explained his position:

 Respect for the individual is one of our core beliefs at Walmart. And the role we play in communities around the country to build a more diverse and inclusive society is more critical than ever as the tragic events in Charlottesville over the weekend painfully reminded us. Our prayers are with the victims and their families. 

As we watched the events and the response from President Trump over the weekend, we too felt that he missed a critical opportunity to help bring our country together by unequivocally rejecting the appalling actions of white supremacists. His remarks today were a step in the right direction and we need that clarity and consistency in the future.

Our country is facing some very difficult issues that require our elected officials, business leaders and community-based organizations to work together. Representing a company with the largest and one of the most diverse groups of associates in the U.S., and an even more diverse customer base of tens of millions of customers, we believe we should stay engaged to try to influence decisions in a positive way and help bring people together. I will continue to strongly advocate on behalf of our associates and customers, and urge our elected officials to do their part to promote a more just, tolerant and diverse society. 

Thank you for representing Walmart and our values today -- and every day.

Before another group, inspired by Nooyi of Pepsi, could resign, President Trump decided to disband all of his business advisory councils. The decision is a blow to the president, who prided himself on his business relationships when taking office.

Image source.

Discussion:

  • Did these business leaders do the right thing? Why or why not?
  • What did it take for Merck's CEO to take the lead, and for Pepsi's CEO to inspire the next wave? What was at risk for both of them and for other CEOs?
  • Besides addressing the Charlottesville situation differently, what could President Trump have done differently to maintain his relationships with these business leaders?
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Cargill Muslim Employees Get EEOC Support

TempThe Equal Employment Opportunity Commission (EEOC) is siding with Cargill employees over their right to pray at work. Employees filed a claim against the company because their opportunities to pray during breaks had been curtailed. The EEOC's support means that Cargill management will have to reach an agreement with employees on prayer time.

The issue began in Colorado in 2015 when 150 employees walked off the job in protest. Supervisors told them they would no longer be able to prayer during breaks. The employees were terminated for attendance violations.

Employees report being closely monitored so they didn't pray, for example, in the bathroom. Cargill denies such claims.

The hope is for Cargill and the employees to reach a confidential agreement. If they fail, the employees can pursue a discrimination lawsuit.

Image source.

Discussion:

  • What protects U.S. employees' right to pray at work?
  • How would you describe the company's position?
  • Assess statements by the company in the Star Tribune article. Based on these quotes, how well is the company responding to the controversy?
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BMW Denies Collusion

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

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

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

In a statement, BMW denied the accusations:

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

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

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

Image source.

Discussion:

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

James-hackett.img.1495457332190Ford has appointed a new CEO to replace Mark Fields, who had been with the company for 28 years. Jim Hackett joined Ford's board in 2013 from Steelcase, and he'll have three new leaders reporting to him. A New York Times article describes Fields' less-than-stellar performance as CEO:

During Mr. Fields's three-year tenure - a period when Ford's shares dropped 40 percent - he came under fire from investors and the company's board for failing to expand the company's core auto business and for lagging in developing the high-tech cars of the future. . . .

The board's decision to change management was made on Friday, eight days after Mr. Fields had been sharply criticized during the company's annual shareholders' meeting for Ford's deteriorating financial results.

Ford has faced safety recalls and has been struggling against GM and Google to develop a self-driving car. The board said Fields' retirement decision was mutual.

The company's news release included this quote from the chairman about Fields: Ford CEO

Mark Fields has been an outstanding leader and deserves a lot of credit for all he has accomplished in his many roles around the globe at Ford," Bill Ford said. "His strong leadership was critical to our North American restructuring, our turnaround at the end of the last decade, and our record profits in the past two years.

Image source.

Discussion:

  • Read the full press release. Describe the audience, objectives, and structure. What's the purpose of the summary bullets at the top?
  • Should the company's press release have said more or something different about Fields? Does the quotation seem to reflect reality?

 

 

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