Amazon Increases Pay to $15/Hour
Starting November 1, Amazon will pay 250,000 and 100,000 seasonal workers at least $15 an hour. A blog post quoted CEO Jeff Bezos:
“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead. We’re excited about this change and encourage our competitors and other large employers to join us.”
The post include a video, “Amazon associates react to $15 minimum wage announcement”:
The company also they would work to increase the federal minimum wage, which, as an Amazon SVP says, could improve from the “current rate $7.25 [which] was set nearly a decade ago,”
One analyst predicted that, after taxes, Amazon’s operating profit will take a hit of 1 of 2%. But the move is being well received. For example, Senator Bernie Sanders, a former critic, complimented the decision:
“What Mr. Bezos has done today is not only enormously important for Amazon’s hundreds of thousands of employees, it could well be a shot heard around the world. I urge corporate leaders around the country to follow Mr. Bezos’s lead.”
Discussion:
Assess Amazon’s blog post and video. How well does the company use the news to improve the company’s image?
What’s your view of the move: the right thing to do, a bad financial decision, or something else?
Nike Takes a Chance on Kaepernick
Former National Football League quarterback Colin Kaepernick will be the new celebrity face of Nike's "Just Do It" campaign. Kaepernick was the center of controversy when players were both complimented and criticized for "taking a knee" to protest racism and promote social justice.
Nike and Kaepernick already had a sponsorship deal, but this new contract extends it. The deal may be "awkward," to use The New York Times's phrase, because the NFL has not been able to stop player protests, to the dismay of President Trump and others.
Also, Kaepernick hasn't played in the league since 2016 and has an active grievance, accusing the league of conspiring to prevent him from playing.
But neither Nike nor Kaepernick are shying away from the message. The first ad shows Kaepernick with the caption, "Believe in something. Even if it means sacrificing everything."
As part of the deal, Nike will contribute to "Know Your Rights," Kaepernick's foundation to "fight oppression of all kinds globally, through education and social activism.
Discussion:
What risks is Nike taking with this contract? Do you believe the campaign will be well received, divisive, or something else?
Nike didn't respond to The New York Times for comment about the story. Should the company include a comment or make a statement? Why or why not?
What leadership character dimensions are illustrated by this story?
President Trump Criticizes Google
In two tweets, President Trump criticized Google and other technology companies of "suppressing voices of Conservatives and hiding information and news that is good." Calling the situation "very serious" and "very dangerous," he claims that "fake" liberal news is elevated in search engines, while "fair" Republican/Conservative perspectives are suppressed.
The president's evidence is based on searching for "Trump News," which he claims resulted in 96% of stories from "National Left-Wing Media." The data came from Lou Dobbs' reporting on Fox Business Network about an "unscientific study" by PJ Media, a conservative organization.
It's also unclear which news organizations Fox and President Trump put in the "left-wing" category. A Wall Street Journal article explains that the president considers even mainstream media outlets to be "fake news," so what he calls unfair representation may not align with a "statistically neutral news aggregator."
Yet the article acknowledged that the search engine algorithm for Google News is "opaque." In addition, Facebook was questioned during Congressional Hearings about suppressing conservative views, and several technology companies did recently close accounts belonging to Alex Jones and InfoWars, a conservative organization, for violating terms of agreement. Social media sites (except Twitter, which has retained Jones's account) provide reasons for closing Jones's account such as his claiming that the shooting at Sandy Hooks Elementary School in 2013 was a hoax.
A spokesperson for Google denies biased search results:
"We continually work to improve Google Search and we never rank search results to manipulate political sentiment."
Discussion:
- Try to find evidence on both sides of this argument: that Google News is unbiased against President Trump and that his claims are unfounded.
- What's your view about Google Search results? How might your own political perspective factor into your view?
- How can you ensure that you're getting the most balanced news possible? (Hint: Don't rely on your Facebook feed.)
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?
Ohio Football Coach: Another Case of Deleted Messages
Ohio State football coach Urban Meyer will forgo pay and the ability to coach three games because of his failure to appropriately handle a staff member's misconduct. A New York Times article chronicles issues with Zach Smith's behavior, including paying $600 at a strip club during a recruiting event, a domestic violence charge, and an affair with a staff member.
During a press conference, Meyer apologized, saying, "I should have done more, and I am sorry for that," and "I followed my heart and not my head."
The Times article also describes a conversation between Meyer and Smith about deleting text messages. I should count the number of stories on this blog since 2010 illustrating that deleting texts and emails fail to get the desired result. These messages are almost always recoverable, and the act of deletion makes the accused look even more guilty.
In addition, in this situation, Ohio State officials at first failed to produce messages requested by the school newspaper. Worse, several staff knew about the request, but no one even approached Coach Meyer to retrieve them.
Discussion:
- Once again, where are the many places deleted messages may be stored? How else can they be retrieved?
- What's your view of the strip club visits? Could Meyer reasonably argue that this is just part of the recruiting process? After all, no students were invited—only university and high school coaches.
- Assess the press conference. How well did university officials, including Meyer, respond to reporters' questions? Did the team appropriately take accountability?
The Debate Over Quarterly Reporting
President Trump is asking the SEC to no longer require report quarterly earnings. Instead, companies would report results every six months.
This may be good news for those who believe that publishing frequent earnings reports encourage a short-term focus. The idea is that investors make rash decisions based on the results from only three months.
One downside of the change could be less transparency. The value of quarterly reports is that investors are more aware of what's happening. In addition, the process itself may be useful internally, as a former investment banker explains:
"What I see from the inside of the quarterly earnings cycle is that there’s actually a lot of discipline in it. That process of having to prepare it, release it, explain it and answer questions has real value.”
Also, not everyone agrees that eliminating the report will foster longer-term thinking. As a compromise, some are proposing that reports are still published, but that specific earnings-per-share guidance information isn't included.
Discussion:
- Describe the importance of transparency in financial reporting. How does this relate to accountability?
- What's your view of the proposal to eliminate quarterly reports? Do you see additional benefits or downsides than what is mentioned here?
- In his tweet, President Trump refers to making "business (jobs) even better." How do you see this as a result of his proposal?
What Is "Dehumanizing" Speech?
The New York Times reports Twitter's struggle to define what constitutes "dehumanizing" speech. Apparently, the only agreement among Twitter's team members is that the decision is "incredibly complex."
Categorization is critical, as the company has a reputation as a sometimes dark place of trolls and harassment. Yet this week, Apple, Facebook, YouTube have expunged content from Alex Jones's Infowars, which is known for spreading misinformation, including that the shooting at Sandy Hook was a hoax. You can imagine how this angered families of lost children.
In a tweet, CEO Jack Dorsey explained Twitter's decision to keep Infowars content, but employees, particularly, have not responded positively.
Twitter is in a difficult spot because, on the other hand, sites have been criticized for censoring conservative views. Del Harvey, the company's VP of Trust and Safety, wrote an email to employees further explaining the company's rationale.
Discussion:
- How would you define "dehumanizing" speech? What character dimensions are involved?
- What persuasive strategies does Harvey use in her email to employees? Which are most and least convincing and why?
- What is your view about Infowars content? Should Twitter remove it from the site as other social media companies have done? How might your own political views factor into your thinking?
CEO Activism
Weber Shandwick's third annual report explores CEO activism, which Brian Moynihan, CEO Bank of America, defines and supports:
“Our jobs as CEOs now include driving what we think is right. It’s not exactly political activism, but it is action on issues beyond business.”
The report found that almost half of Americans "believe CEO activism influences the decisions and actions of government," and almost half of consumers "would be more likely to buy from a company led by a CEO who speaks out on an issue they agree with." Millennials, particularly, prefer CEOs to speak out on issues, and CEOs with more social media accounts have better stock performance for their company.
A Wall Journal Street writer observes that leaders rarely make a business case for issues, even if their company would benefit. Instead, they are speaking to consumers directly to change hearts and minds.
Top issues for CEOs include training, equal pay and sexual harassment, and CEOs are avoiding gun control, nationalism, marijuana legalization, and abortion."
A Forbes article offers this advice for CEOs:
- Develop an authentic voice and quick actions
- Connect your customers with your activism efforts
- Align activism efforts with a company’s mission
- Be willing to act against your own self-interest
Discussion:
- What are the risks and rewards of activism to a CEO and to the company? How does integrity factor in?
- What examples have you seen of CEOs speaking out? How do you assess the situations? How did you feel about the gestures?
- Read the Weber PPT deck. What principles of business report writing are followed, and what could be improved?
Scott Pruitt Resigns
Environmental Protection Agency (EPA) head Scott Pruitt resigned after months of accusations of overspending and other ethical issues. Questions about Pruitt's judgment involved expensive travel, getting a job for his wife, and underpaying for an apartment.
President Trump had supported Pruitt, but the controversy may have reached a tipping point. Discovery of secret calendars could have been the last straw. A whistleblower said Pruitt kept three different calendars to hide meetings.
In his resignation letter to the president, Pruitt referred to "unrelenting attacks on me personally, [sic] my family, are unprecedented and have taken a sizable toll on all of us." In a tweet, President Trump was gracious and complimentary.
Discussion:
- If you're familiar with Pruitt's history in the position, which of his alleged ethical lapses do you consider more serious? Which are less serious?
- On balance, do you agree with Pruitt that he was attacked? How might your own political views affect your perspective?
- Did he do the right thing by resigning? Why or why not?
- How does Pruitt's resignation letter differ from resignation letters written for corporate jobs?
Intel CEO Resigns Over Relationship With Employee
A Wall Street Journal article describes events leading to the Intel CEO's resignation. Brian Krzanich had an affair with a mid-level manager at the company, but the relationship ended years ago. Still, the affair became public when the woman told a co-worker who, citing the company's strict policy, reported it to the board of directors.
Intel has a particularly tough policy, which bans any relationships among managers and any employees and requires employees to report known relationships.
In a news release, the company announced the news in the first paragraph and then quickly moved to the future: the appointment of an interim CEO and expressions of confidence for Intel's strategy. Still, the stock fell 3.5% on the news.
Discussion:
- Did Krazanich do the right thing by resigning? Why or why not?
- What are the advantages and downsides of Intel's strict policy? "Non-fraternization" seems dated and odd, doesn't it? Why would a company use this title?
- Consider the employees who discussed the affair. We might assume that one confided in the other. What were the steps along the way that led to Krazanich's resignation? Who is accountable for the result?
Valedictorian's Speech About Sexual Assault Is Cut Short
Just as a high school valedictorian started talking about sexual assault at the school, her mic was cut off. Lulabel Seitz, in Petaluma, CA, had planned to discuss issues of students, including herself, being silenced after reporting incidents of sexual misconduct. The school administration warned her to avoid the topic in her speech: “For weeks, they have threatened me against ‘speaking against them’ in my speech. Sometimes we know what’s right and have to do it despite the threats.”
When the time came for her speech, Seitz said, “Because the class of 2018 has demonstrated time and time again that we may be a new generation, but we are not too young to speak up, to dream and to create change, which is why even when some people on this campus, those some people..." And then there was silence from the podium as her classmates cheered her on: "Let her speak."
She did continue, on YouTube, where she uploaded her complete speech and the ending to her sentence: “And even learning on a campus in which some people defend perpetrators of sexual assault, and silence their victims, we didn’t let that drag us down.”
This story exemplifies the Streisand Effect, which The Economist describes as demonstrating "how efforts to suppress a juicy piece of online information can backfire and end up making things worse for the would-be censor." The Effect was named when performer Barbra Streisand sued the California Coastal Records Project for including pictures of her Malibu house. The suit was considered frivolous, and photos of the home went viral, giving Streisand far more attention than she would have otherwise received from the Coastal Project.
In the case of the high school student, the administration silenced her during the ceremony, but her YouTube video, as of this writing, received almost 230,000 views, far more than the number of people who attended graduation. Also, now the school's handling of sexual misconduct situations is on full display.
The school responded with a short statement:
"Administrators and staff in Petaluma City Schools care deeply about the safety and well being of our students. Due to student privacy issues, we cannot and should not respond with specific information. We can say that when issues of sexual assault come to our attention, local law enforcement has initial jurisdiction and determines the course of action."
Discussion:
- What, if anything, should the school administrators have done differently before Seitz's speech?
- What is Seitz's responsibility? Should she have avoided discussion of sexual assault, as she was instructed by school officials?
- What else should school officials say now? How can they repair the district's image and address issues raised?
- How is this an issue of integrity for the school and for Seitz?
Analyzing Communications Around the USC Crisis
After the University of Southern California's president resigned last month, crisis communication experts analyzed university messaging. When a gynecologist was accused of inappropriate exams and comments over decades working for the university, 200 faculty called for President C.L. Max Nikias's resignation. Faculty wrote that they believed Dr. Nikias "has lost the moral authority to lead the University.” Although the Administration denies any type of coverup, the gynecologist was allowed to continue in his job even after many allegations in 2016. Dr. Nikias did resign.
A Wall Street Journal article chronicles the following university communications:
A May 21 statement from university Provost Michael Quick denied university leadership knew of the doctor’s improper behavior, stating: “It is true that our system failed, but it is important that you know that this claim of a cover-up if patently false.” Prior to that, the university issued statements about the matter from Mr. Nikias on May 18 and May 15, and statements from other university officials on May 15 and May 16. University administrators also are contacting students.
Criticism of the communication includes sounding defensive, not completing the investigation quickly enough, and failing to report investigation results to those affected. One writer complimented the statement by the chair of the university's executive committee.
Discussion:
- How does this situation illustrate character dimensions such as vulnerability, accountability, and integrity?
- Read the executive committee chair's statement. In what ways does the statement illustrate authenticity? What other character dimensions are illustrated?
- Assess the university's other statements. What's your assessment of each?
- What should the university do at this point to rebuild trust?
Starbucks Clarifies Policy
Following criticism for arresting two black men in a Philadelphia store, Starbucks has set a new policy for bathroom use. Company leaders decided to adopt a more open policy, allowing anyone to use a store bathroom without purchasing products.
But people questioned the effect on Starbucks locations, worrying the policy would invite homeless people and drug users. Customers want space available for themselves. Employees, particularly, complained that the policy didn't have enough guidance for them to know, for example, when to call the police.
The new policy lists the following expectations for people in their stores:
- Using spaces as intended
- Being considerate of others
- Communicating with respect
- Acting responsibly
The policy also refers to "Addressing Disruptive Behaviors" procedures and clarifies, "If a situation presents an immediate danger or threat to partner or customer safety, Starbucks partners should call 911."
I'm struggling with the term "customer." The policy uses this terminology, and the WSJ article refers to paying and non-paying customers. To me, the latter is an oxymoron, but perhaps it is not given the company's mission to create a "third place."
Discussion:
- What benefits and potential downsides do you see from Starbucks' open policy?
- How could Starbucks further clarify the policy to address customers' and employees' concerns?
- One point of clarification, if you haven't mentioned it, is about timing. How long should people be permitted to stay without purchasing an item? What are your thoughts about what is fair?
- What's your view of the term "customer" in this context?
MSU's Denial as a Cultural Issue
A Chronicle of Higher Ed article blames Michigan State University's ambitions and culture for their leaders' lack of response to years of sexual abuse on campus. More than 12 people knew of complaints against physician Larry Nassar, but the abuse continued for years.
Lou Anna K. Simon's leadership is questioned in the article. Although clearly a committed leader to the university, Simon is criticized for focusing so much on "two decades of status-climbing" that a culture of denying any wrongdoing evolved. One of the trustees summed up the issue in a letter and emphasized "We must embrace our obligation to apologize and offer justice."
Apologizing may be a sore subject for the trustees because Simon avoided it in the case of Larry Nassar's victims, according to the Chronicle article:
She talked about how “it is virtually impossible to stop a determined sexual predator and pedophile, that they will go to incomprehensible lengths to keep what they do in the shadows.” She often used “regret,” “sympathize,” and “acknowledge” in her written statements, but not “apologize.” She emphasized that sexual assault is a societal problem, not a Michigan State one. She highlighted all of the steps the university had taken to prevent sexual misconduct.
Discussion:
- Analyze the trustee's letter. What principles of business writing are followed? What are the strengths of the letter, and what could be improved?
- The trustee encourages MSU leadership to listen. What does he mean by this, and how would listening help the situation?
- What is the value of apologizing and admitting failure? What are the potential downsides, particularly for a university trying to improve its stature?
- This story illustrates several failings of leadership character. Which can you identify, and which do you think are most relevant here?
Layoffs at Qualcomm
A Business Insider headline puts the news and purpose right up front:
Qualcomm is reportedly laying off as many as 1,000 employees as part of a $1 billion cost savings plan
The decision comes after a hostile takeover bid from Broadcom, a competitor in Singapore. Qualcomm made a commitment to save costs to its shareholders and appears to be following through, despite that the failing takeover bid.
A Bloomberg report reminds us that the company cut jobs in 2015, as well, in response to an activist investor's interests. A New York Times article calls Qualcomm "collateral damage" in "a looming trade war between the United States and China" that may impinge the company's growth.
The company declined to comment on news stories, and nothing related to layoffs is posted on its website.
Discussion:
- Should Qualcomm executives be more forthright about the change? What, if anything, should they communicate to the public and how?
- How do you assess the admission that the layoffs are intended to ward off hostile takeovers and reduce costs? How do you think these reasons would be received by shareholders? the press? customers? employees?
- How are the news and the company's communication an issue of integrity for Qualcomm?
Starbucks Apologizes, Again
Two black men were arrested at a Philadelphia Starbucks. Witnesses say they were just waiting for a friend and asked to use the restroom. The reason for calling the police seemed to be the same: that they were just waiting for friend. But because they didn't order anything, they were asked to leave and did not. Other customers say this is common at Starbucks, and the only reason the police were called was because the two men were black.
The company, at first, gave a weak apology using unclear pronoun references (see "this" and "these"). A longer apology came from the CEO Kevin Johnson later. In the statement, he identified steps the company would take and closed with this paragraph:
Finally, to our partners who proudly wear the green apron and to customers who come to us for a sense of community every day: You can and should expect more from us. We will learn from this and be better.
Johnson also posted an apology video.
In a video statement, Philadelphia Police Commissioner Richard Ross explained the situation from his point of view and defended the officers' actions. He also said that all officers get implicit bias training and gave an example of a police sergeant who was also denied access to a Starbucks bathroom. Ross's conclusion was that "they are at least consistent in their policy." Of course, not everyone agrees.
Discussion:
- Analyze Johnson's statement. Who are his primary and secondary audiences? What are his communication objectives, and how well did he achieve them?
- What organizational strategy does Johnson's statement illustrate? How do you assess his tone and writing style?
- What is an unclear pronoun reference, and how are they used in the first apology?
- What's your view of the situation? Did Starbucks do wrong? If so, at what point(s)? Are you boycotting Starbucks, as some promote, as a result?
- Which leadership character dimensions are illustrated by this example?
Uber CEO Compares Self-Driving Cars to Student Drivers
In defense of autonomous cars, Uber CEO Dara Khosrowshahi said, "Ultimately, self-driving cars will be safer than humans. But right now self-driving cars are learning. They’re student drivers.” On NBC's Today Show, Khosrowshahi confirmed that the company will continue its self-driving program despite a fatal crash last month in Arizona.
In the interview, when asked about Facebook and other technology companies facing privacy and safety issues, Khosrowshahi said he considers, "the challenges of technology getting into everyday life and the responsibilities that come with it." He repeated "responsibility" twice more within about the first minute of the interview. Like Mark Zuckerberg during the recent hearings on Capitol Hill, he said, "I welcome regulation," and "we're partnering with regulators."
Also as Zuckerberg clarified with lawmakers, Khosrowshahi said they don't sell data; however, he also said they don't "monetize data," which Facebook cannot say with its business model to sell ads.
Discussion:
- What principles of persuasion does Khosrowshahi demonstrate in this interview? Consider logical argument, emotional appeal, and credibility.
- What principles of leadership character does he demonstrate?
- What do you consider the strengths of this interview? What could Khosrowshahi improve?
Zuckerberg Testifies Before Congress
In many hours of testimony, Facebook CEO Mark Zuckerberg did his best to address lawmakers' questions about data privacy and, surprisingly, how Facebook works. Senators and Members of Congress asked questions about texting, about how the company makes money without a subscription model (Zuckerberg: "We sell ads."), whether Facebook owns users' data, whether Facebook sells data, how many "data categories" Facebook collects, and so on. This video compilation does not reflect well on our lawmakers.
Zuckerberg himself seemed surprised by some of the questions and wasn't fully prepared to answer them. A reporter captures a photo of Zuckerberg's notes, which are what we would expect, but it's fun (in a voyeuristic way) to see them.
On the second day of testimony, questions improved, and many focused on Facebook's treatment of conservative political views. These were fair questions, and Zuckerberg admitted they had made mistakes in screening some content as inappropriate. But several representatives seemed to ask similar questions about this and about the consent agreement with the FCC, as if the question hadn't been asked just moments earlier.
In a New York Times Daily Podcast, reporters discussed Zuckerberg's continued references to starting Facebook in his dorm room. They believed the strategy was a good one for demonstrating his humanity (emotional appeal) but was potentially damaging for his credibility because it reminded lawmakers that he is only 33 years old. A seat chair, which internet trolls called a "booster seat," didn't help.
Wall Street responded well to Zuckerberg's testimony, with the stock price rising both days.
Discussion:
- What's your view of Zuckerberg's testimony? Watch as much as you can tolerate.
- Should lawmakers have a better understanding of Facebook? What is their level of responsibility?
- Identify a few specific questions and Zuckerberg's answers. What leadership character dimensions does he demonstrate, and how could he have improved?
- Watching the testimony, how would you assess his authenticity? Do you know more about him as a person? Should we?
Howard University Reports on Misappropriated Funds
Howard University's investigation has concluded that $369,000 had been misappropriated by six employees who were terminated last year. A full report by the university identifies how they "double dipped" by receiving both tuition assistance and university grants between 2011 and 2016.
In a cover letter to the report, President Wayne A.I. Frederick wrote, “Howard University is committed to uncovering any impropriety in the administration of university-provided financial aid and federal student aid, to remediating all problems identified during this investigation, and to maintaining a robust compliance program to prevent any inappropriate dealings in the administration of financial aid."
A Washington Post article reports that the university tried to avoid going public before the review was completed, but an article posted online made this impossible. Student protests, which went on for more than a week, also may have sped up the timing.
Discussion:
- What business writing principles does the report demonstrate and fail to demonstrate? How could the report be improved?
- Assess the president's cover letter. Who are his primary and secondary audiences, and what are the communication objectives? How well does the letter achieve those objectives?
- What can the university do now to restore trust?
- How well does the university take responsibility for the situation?
An Interview with Sheryl Sandberg
During an interview with Judy Woodruff on PBS NewsHour, Facebook COO Sheryl Sandberg admitted mistakes and discussed plans for improving users' privacy. Sandberg didn't shy away from tough questions about Facebook's role in protecting users' information and admitted that the site had an important role during the 2016 presidential election, at least to get people to register to vote.
On whether Cambridge Analytica still has data, Sandberg admitted, "We were given assurances by them years ago that they deleted the data. We should’ve followed up. That’s on us. We are trying to do a forensic audit to find out what they have." She also said the company had "under-invested" in ways to protect users' information.
Viewers may notice that Sandberg repeatedly says versions of "That's a very good question." This could be a tactic to delay responding, or it could be that Woodruff asks good questions! Sandberg would be the first to acknowledge that many of the questions are ones the company leaders are asking themselves at this point. As pioneers, Facebook executives are reconsidering how people use the site and for what purpose.
Discussion:
- Assess Sandberg's presentation skills. How well does she deliver her ideas and address questions?
- What principles of persuasion does Sandberg demonstrate in the interview?
- What else, if anything, could Sandberg have said during this interview to rebuild trust in the company?