Trump Undocumented Workers Speak Out

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Employees of Trump National Golf Club in Bedminster, NJ, say they are undocumented in the U.S. and express disappointment at the president’s comments about immigrants. For five years, Victorina Morales has worked at the property, and her responsibilities sometimes include providing housekeeping services for the president’s private quarters.

Although the president may not have known about their status, Morales and a former employee say several within the housekeeping, maintenance, and landscaping crews don’t have papers to work legally in the U.S.

Morales said her status is known at the club, and she was hurt when she heard the president comparing recent immigrants to criminals:

“We are tired of the abuse, the insults, the way he talks about us when he knows that we are here helping him make money. We sweat it out to attend to his every need and have to put up with his humiliation.”

During the presidential campaign, President Trump said of his businesses, “We didn’t have one illegal immigrant on the job.”

Image source.

Discussion:

  • What risks does Morales take by speaking out? Why might she forge ahead and not be deterred by those risks?

  • How is this a potential issue of integrity for President Trump?

  • Should President Trump be held accountable for undocumented workers on his properties? Why or why not?

Marriott Security Breach

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Personal information of more than 500,00 guests was stolen from the Starwood reservation system. Exposed data includes payment card information, and critics say the company could have avoided the breach years ago. In 2015, Starwood announced a small breach, which cybersecurity experts say should have inspired the company to do more at the time. Starwood argues it didn’t realize the risk, and Marriott leaders argue that they had not yet acquired Starwood. On Friday, Marriott shares were down 5.6%.

A notice at the top of the Marriott homepage reads, “For more information on the Starwood guest reservation database security incident, please click here.” Although the breach was from a Starwood database, the media is consistently reporting the news as “Marriott.” That link and a press release on the website both go to legal sounding statements, although they do provide FAQs at the bottom.

Lawsuits have already been filed against the company for failing to protect users’ data.

Discussion:

  • Is the company taking adequate responsibility for the breach? Explain your response.

  • How can Marriott respond to this crisis and protect the brand at this point?

  • How can the website information be improved? Consider the primary and second audiences, communication objectives, organization, writing style and so on.

Dolce and Gabanna Cancels Show and Apologizes

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

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

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

They also posted an apology video.

Discussion:

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

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

  • Which leadership character dimensions are illustrated by this situation?

GM Lays Off 15,000 Employees

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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?

Hotel Cleaning Caught on Video

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

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

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

Discussion:

  • What oversight should hotels have for room cleaning?

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

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

Negative Reports About Facebook

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

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

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

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

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

Zuckerberg image source.

Discussion:

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

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

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

Nissan Chairman Is Arrested

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

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

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

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

Nissan image source. Ghosn image source.

Discussion:

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

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

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

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.

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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?

Controversy About Wildfires

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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?

Timing Bad-News Messages

This week, we saw two examples of timing communications to improve image.

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President Trump waited until after the important mid-term elections to fire Attorney General Jeff Sessions. President Trump wasn’t happy with Sessions since he recused himself from the Russia election interference investigation back in 2017.

Although Sessions did technically “resign,” he did so at the President’s request. Sessions confirms this in his resignation letter, which begins, “At your request, I am submitting my resignation.”

Facebook capitalized on a busy news day to announce bad news: a report that the company didn’t do enough to stop anti-Rohingya propaganda on its platform. The site may have contributed to escalated violence in Myanmar. Skimm writers joked, “What to say when the midterms are dominating the headlines… Time to drop some bad news. Right, Facebook?”

FB image source.

Discussion:

  • Why didn’t President Trump fire Jeff Sessions after he recused himself? Why is the timing better now, more than a year later?

  • What other examples have you seen of companies taking advantage of news cycles?

  • The benefits of reporting bad news on a slow news day may be obvious. What are the risks?

Elementary Teachers Dress as Border Wall

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For Halloween, elementary school teachers in Middleton, Idaho, wore costumes portraying parts of a border wall and depicting stereotypes of Mexicans. Pictures showing them smiling as a group with the slogan, “Make America Great Again,” were posted to a Facebook page.

The teachers dressed up during school hours, and parents alerted the school administrators to the problem. In addition to their complaints, 12 local advocacy organizations wrote a letter to the superintendent, including this statement:

“The intent or misjudgments of the individuals involved does not undo the trauma experienced by students, families and communities. The impact on these students does not stay only with them but has lasting effects beyond the school or classroom. We believe the school and classrooms have now become hostile environments that are not conducive to the education of the students.”

In response, the school district posted a statement on its website:

The events that took place at Heights Elementary School in Middleton on Halloween are disturbing and inappropriate. The teachers involved, as well as school administrative personnel, and the Middleton School District showed extremely poor judgment.

The messages conveyed are the antithesis of the beliefs and values of the Idaho Education Association and its dedicated members throughout the state.

The IEA and the Middleton Education Association stand ready, willing, and able to assist the district in providing diversity and cultural competency training for Middleton School District employees. As troubling as the situation is, it does provide us with an opportunity for education and growth so that people can be made more aware of how hurtful these kinds of insensitive behaviors can be.

Discussion:

  • What’s your view of the teachers’ costumes: harmless fun, insensitive, hurtful, or something else?

  • Assess the district’s statement. Who is the audience and what are the communication objectives? How well does it achieve its purpose.

  • Write a better apology. How can you demonstrate humility and address concerns more specifically? Include consequences: what should the district do as a result?

Reversal at Maryland

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

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

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

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

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

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

Discussion:

  • How is this situation an issue of integrity?

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

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

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

University of Maryland President Resigns

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Following a report about a student death, University of Maryland President Wallace D. Loh will resign. Loh had apologized for the loss of Jordan McNair, a football player who died during rigorous training. A Washington Post article quotes the McNair’s attorney about the apology:

Hassan Murphy, the McNair family’s attorney, said Loh “remains the only person thus far in this process who has accepted moral and legal responsibility and has spoken from his heart about what happened.”

“If the university will not do right by Jordan, we promise to explore every possible avenue that will,” Murphy added.

Since then, an investigation uncovered deep issues with the athletics program and a culture of silence: “problems festered because too many players feared speaking out.” An independent committee presented its findings and recommendations in a 200-page report.

Rick Court, the former strength-and-conditioning coach, was terminated, but the athletics director and football coach will remain in their positions. Despite Loh’s recommendation, the University regents encouraged Loh to allow Coach DJ Durkin to return after his suspension. According to the Post article, Loh was permitted to stay at the university through June 2019 only if Durkin stayed on.

Several senators have questioned the decision and accuse the University of putting “athletics over academics.”

The Post also reports that several players walked out during their first meeting with Coach Durkin.

Image source.

Discussion:

  • Did the University regents make the right decision in asking for Loh’s resignation? Why or why not?

  • Did Loh do the right thing by allowing Durkin to return?

  • Analyze the investigation report: audience, organization, content, writing style, and so on. Which business writing principles are followed, and how could the report be improved?

Tesla Investigated for Fraud

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

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

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

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

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Discussion:

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

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

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

Google Admits Sexual Harassment Incidents

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

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

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

Hi everyone,

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

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

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

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

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

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

Sundar and Eileen

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Discussion:

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

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

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

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

Facebook's War on "Fake News"

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

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

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

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

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

Discussion:

  • How do you interpret Facebook’s progress?

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

Racist Comments on a Ryanair Flight

People are calling for boycotts of Ryanair because staff didn’t address a passenger’s racist comments on a flight from Barcelona to London. The man went on a rant towards a 77-year-old, Jamaican-born, British passenger, calling her an "ugly black bastard” and “a stupid ugly cow."

The passenger tried to get the woman to move to another seat: "I don't care whether she's f------ disabled or not. If I tell her to get out she gets out." He also threatened her: “If you don't go to another seat, I'll push you to another seat.” The woman’s daughter said she was taking her mother on a trip after her husband had died.

Although other passengers tried to silence the man and called for him to be removed from the plane, staff seemed to do very little. Even after the incident was reported, the company posted a meager response on Twitter.

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Later, the company also said, "As this is now a police matter, we cannot comment further."

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Discussion:

  • What could be Ryanair’s rationale for not removing the man from the plane? Was it the right decision?

  • Why didn’t Ryanair say more after the incident? What, if anything, should the company leaders have said?


Facebook's Messaging Over Time

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

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

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

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

Image source.

Discussion:

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

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

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

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

Senators Send Harsh Letter to Google

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

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

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

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

Google logo image source.

Discussion:

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

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

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

  • Google may have been avoiding its own vulnerability.

Amazon Loses Favor After Announcing $15 Wage

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Amazon received good press for announcing employees would earn a minimum of $15/hour. But today’s news tells a different story.

Although the hourly wage will increase, Amazon is cutting bonuses and stock options, and employees fear it will cost them thousands of dollars in total compensation. The stock options, according to employees’ online posts, gave them a sense of company ownership. Some proposed walking out on Black Friday, the biggest shopping day of the year. Amazon had also granted bonuses for attendance and productivity, called Variable Compensation Plan, or V.C.P.

In response, company leaders said they would look at employees’ total compensation to make sure no one would be worse off after the changes. A spokesperson also released this statement:

"The significant increase in hourly cash wages more than compensates for the phase out of incentive pay and [restrictive stock units]. We can confirm that all hourly Operations and Customer Service employees will see an increase in their total compensation as a result of this announcement. In addition, because it's no longer incentive-based, the compensation will be more immediate and predictable."

Box image source. Cart image source.

Discussion:

  • This is quite possibly a miscommunication or, more to the point, poor communication from Amazon officials to employees. How could the company have done a better job?

  • How well does the statement address the criticism? What else should the company communicate at this point?

  • How is this an issue of integrity for the company?