Chase Emails Customers About Fees During Hurricane Sandy

Chase bank is communicating with customers about Hurricane Sandy. Before the storm hit land, the company emailed customers about plans to waive fees. It's an interesting email and shows the company's kinder side.

On its website, Chase repeats a version of the open paragraph and provides customers with information about open branches. The branch locator allows customers to search for branches and see the status of each.

As of this writing, neither Bank of America nor HSBC have similar messages on their websites.

Discussion Starter and Assignment Idea: 

• What is your reaction to Chase's email to customers?
• Go to the websites of other major banks. Do you find messages similar to that of Chase? How do they compare?

Apple's Ad Sounds More Like an Attack

Apple followed the court order to post the Samsung lawsuit ruling, but the company followed only the letter of the law. Information Week and other sources call the notification on Apple's website a mockery.

Apple sued Samsung for copying its iPad design too closely when creating its tablet, the Galaxy. But the company lost the patent infringement lawsuit and, as a result, was required to communicate the decision, according to  Information Week:

"The court gave Apple seven days to post notification of the ruling in a font of no less than 11 pixels, with a link to the ruling, that must remain on Apple's U.K website for six months or until the court orders otherwise. It also required Apple to publish the same notification in the first five pages of the Financial Times, the Daily Mail, The Guardian, Mobile Magazine, and T3 magazine, in a font of no less than 14 pixels."

In the notification, however, Apple takes several stabs at Samsung. Apple quotes the judge's ruling about the Apple design:

"It is an understated, smooth and simple product. It is a cool design."

"The informed user's overall impression of each of the Samsung Galaxy Tablets is the following. From the front they belong to the family which includes the Apple design; but the Samsung products are very thin, almost insubstantial members of that family with unusual details on the back. They do not have the same understated and extreme simplicity which is possessed by the Apple design. They are not as cool."

Apple posts a link to the ruling, as required, but then ends with another blow to its competitor:

"However, in a case tried in Germany regarding the same patent, the court found that Samsung engaged in unfair competition by copying the iPad design. A U.S. jury also found Samsung guilty of infringing on Apple's design and utility patents, awarding over one billion U.S. dollars in damages to Apple Inc. So while the U.K. court did not find Samsung guilty of infringement, other courts have recognized that in the course of creating its Galaxy tablet, Samsung willfully copied Apple's far more popular iPad."

Image source.

UPDATE: After being reprimanded by the UK court, Apple has replaced its notice with a revision.

Discussion Starters:

• Did Apple take the right approach for the company? Did the company do the right thing? What are the arguments for and against this approach?
  
• Should the judge have been even more specific in instructing Apple how to post the decision? Why or why not?

Another Premature News Report: Dow Chemical

For the second time in two weeks, bad news was inadvertently released ahead of schedule. Although Dow Chemical had planned to announce 2,400 employee layoffs and 20 plant closings on Thursday morning with its quarterly earnings statement, the news went out as a draft Tuesday night.

On Dow Chemical's earnings conference call, Doug May, VP of investor relations, explained the mishap in his introduction:

"Good morning, everyone, and welcome. Thank you for joining us on such short notice and being flexible with your schedules. As you know, we issued our earnings press release yesterday evening, October 23. This was earlier than usual due to an inadvertent and premature release of our restructuring announcement. Both the restructuring release and the earnings release went out on Business Wire and were posted on the Internet on dow.com."

In this case, the market reacted favorably to the restructuring. However, for Google, in a similar situation last week, the result wasn't nearly as positive.

Google's intent was to release its disappointing third-quarter results after the closing bell, but the draft statement slipped out on at 12:30 p.m. with the text "PENDING LARRY QUOTE." CEO Larry Page briefly said on the earnings call, "I'm sorry for the scramble earlier today."

Google blamed its finanial printer, RR Donnelly:

"Earlier this morning RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorization. We have ceased trading on NASDAQ while we work to finalize the document. Once it's finalized we will release our earnings, resume trading on NASDAQ and hold our earnings call as normal at 1:30 PM PT."

Google shares lost about 9% before trading was halted.

Discussion Starters:

• Why is it important for companies to coordinate disappointing market news, such as layoffs and quarterly earnings?
• What controls should a company have in place to avoid this type of situation?

Fujitsu's Laptop for Women: Sexist or Smart Marketing?

A marketing team at Fujitsu thought that a laptop "aimed at female users" was a good idea, but the company isfacing ridicule. Among the "Floral Kiss" features is "a flip latch that can easily open the display-even by users with long fingernails."

In its press release, the company says that its female employees designed the laptop to include the following: 

1. Elegant design down to the details

2. Custom-designed applications

3. Design collaboration model with the jewelry brand ''agete"

Applications include Scrapbook, Diary, and Horoscopes, presumably activities that interest women.

The design, too, is tailored to the gentler sex:

The top casing has been constructed with an elegant and refined gradation with gold trim, and it features a flip latch that can easily open the display-even by users with long fingernails. The power button is adorned with a pearl-like accent, and the power status LED and Caps Lock key are decorated with diamond-cut stone for a sophisticated look. An exquisite gold ring frames each key on the transparent keyboard, highlighting its elegant style. In addition, the outtake and intake vents all feature a floral motif design.

A writer for Business Insider points out the absurdity of the product:

I can't count the number of times I've been typing away on my Mac Book Pro and thought, wow, this consumer experience sure would be enhanced if my caps lock key were bedazzled and there was a built-in daily horoscope app. … This computer comes with both.

Image source.

Discussion Starters:

• What's your view of the laptop focus: a silly idea, a shrewd marketing tactic, or something else?
• Critics of the product say that women don't need a special laptop, particularly one bejeweled and pink. What's your view?

Obama, Romney Give Funny (Yes, Funny) Speeches

At a dinner for the Alfred E. Smith Memorial Foundation, both candidates showed their humorous side. In quips about themselves and each other, President Obama and Governor Romney had the crowd going.

Here are a few of the highlights of Romney's ten-minute speech:

• "It's nice to finally relax and wear what Ann and I wear around the house." (Formal attire)
• "I was actually hoping the President would bring Joe Biden along this evening because he'll laugh at anything." (Referencing the VP debate)
• "President Obama and I are each very lucky to have one person who's always in our corner-someone who we can lean on and someone who's a comforting presence without whom we wouldn't be able to go into the day. I have my beautiful wife, Ann; he has Bill Clinton."

Obama had his share of laughs in his nine-minute speech:

• "This is the third time Govenor Romney and I have met recently. As some of you have noticed, I had a lot more energy in our second debate. I felt really well rested after the nice long nap that I had during the first debate."
• (About the first debate) "For example, I learned that there are worse things that can happen to you on your anniversary than forgetting to buy a gift."
• "I went shopping in some stores in Midtown. I understand that Governor Romney went shopping for some stores in Midtown."
• "Mitt is his middle name. I wish I could use my middle name."

Discussion Starters: 

• Watch both speeches. Do any of the jokes surprise you?
• In what ways, if any, do the speeches sway your thinking about the candidates?

Nordstrom Email Supporting Gay Marriage

After the Chick-fil-A controversy this summer, companies are on edge about the issue of same-sex marriage. Rather than oppose the issue, the Nordstrom brothers have taken a strong stance, supporting a Washington state "Freedom to Marry" referendum.

In an email sent to all employees, three Nordstrom executive brothers declared their support:

From: Nordstrom, Blake

Sent: Thursday, October 11, 2012 8:03 AM

To: Leadership 2012

Subject: Freedom to Marry

October 11, 2012

To all employees:

We have long had a philosophical approach to our business to be inclusive about the way we serve customers as well as how we work to create a workplace where every employee is welcomed and respected. It's simply how we operate.

With respect to our gay and lesbian employees, Nordstrom was an early adopter of adding sexual orientation to our anti-discrimination policy, which means we guarantee the same legal rights and protections in our workplace to gay and lesbian employees just as we do for other employees regardless of sex, race, color, creed, national origin, religion, age, marital status, pregnancy, physical, mental or sensory disability, and gender identity. This goes beyond the Federal government's protection in Title VII, the Civil Rights Act of 1964, which still excludes sexual orientation. In 1998, we began offering life partner benefits to employees.

We feel the next step in this journey is to now support freedom to marry, also called marriage equality. There is a lot of awareness of this issue across the country and we've heard from many employees and customers. We gave this thoughtful consideration and felt the time was right to come out in support of this civil rights issue. It is our belief that our gay and lesbian employees are entitled to the same rights and protections marriage provides under the law as our other employees. We also believe supporting freedom to marry will help us create a more attractive and inclusive workplace for our current and prospective employees. Again – this decision is consistent with our long-time philosophy of inclusivity and equality for our customers and employees.

We recognize there are differing opinions about freedom to marry. We hope we've been clear about why we made this decision. To all of our employees – if you choose to talk about this with each other, please do so respectfully. We want you to be informed about our position so you can also respectfully answer any customer questions that come your way.

Thank you.

Blake, Pete, Erik

Blake Nordstrom, President, Nordstrom, Inc

Pete Nordstrom, President of Merchandising, Nordstrom

Erik Nordstrom, President of Stores, Nordstrom

According to GLAAD (The Gay & Lesbian Alliance Against Defamation), several companies have shown active support of same-sex marriage:

"Nordstrom joins many Washington-based companies who have come out in support for marriage equality, including REI, Expedia, Amazon, Starbucks, Microsoft, and Nike. In Minnesota, General Mills and Thomson Reuters have come out agains the proposed marriage amendment that would limit the freedom to marry. Carlson Company Chairman, Marilyn Carlson Nelson has been actively campaigning against the amendment. Additionally, GOP Hedge Fund billionaire Paul Singer made a donation to advocate for marriage equality in Maine."

GLAAD also cites a Washington poll showing support for Referendum 74 at 55%, compared to 40% opposed. Although this isn't a huge spread, the data may indicate that Nordstrom and other supporting companies are on the popular side of the vote.

Discussion Starters:

• What are the benefits and risks to Nordstrom, as a company, of showing its support for the referendum? 
• In the email, how do the Nordstrom brothers connect their beliefs to the mission and values of the company?

NYT Article: BlackBerry Is Like an "Embarrassing Relative"

A New York Times article delivers a harsh blow to Research in Motion (RIM), the maker of Blackberrys. Several quotes from users paint a sad picture of the BlackBerry as a public embarrassment:

• "I'm ashamed of it."
• "I want to take a bat to it."
• "You can't do anything with it. You're supposed to, but it's all a big lie."
• "I feel absolutely helpless."

The article tells stories of people hiding their BlackBerry underneath their iPad, not using their BlackBerry at cocktail parties, and getting "disgusted" looks when asking a hotel concierge for a charger.

These aren't great testimonials for the product that was called "CrackBerry" when first introduced because of its popularity and additive qualities. Now it seems people can't wait to trade it in for an iPhone 5.

The article quotes an investment analyst saying that RIM's recent video, a play on REO Speedwagon's "I'll Just Keep on Loving You," is "a sign of a desperate company."

RIM clearly is not happy with the article. Amy McDowell, senior director of corporate communications at RIM, said that the company wasn't asked for input on the story. In response, CEO Thorsten Heins wrote an opinion letter in The New York Times:

"BlackBerry as Black Sheep in Smartphones" (Business Day, Oct. 16) lacks the balance your readers expect.

With more than 80 million customers globally, BlackBerry is growing and remains one of the world's most popular smartphones. I've just come from visiting carriers and partners in all parts of the world, and they have told me that there are millions of BlackBerry fans out there who not only find great value in their device, but also pride in being a BlackBerry owner.

While any report of dissatisfaction among our users is a cause for concern that I take very seriously, the comments supporting BlackBerry both online and in calls we've received from our customers in response to your article are encouraging to me.

BlackBerry remains the leader in providing security for corporate customers, which is why more than 90 percent of the Fortune 500 rely on BlackBerry. It's true that some companies put restrictions on accessing certain applications for security reasons, but applications like Yelp and OpenTable are, in fact, among the approximately 100,000 apps available in BlackBerry AppWorld.

We've received excellent feedback from carriers, developers and partners for our upcoming BlackBerry 10 platform and are on track to deliver it in the first quarter of 2013. We appreciate the customers who have remained loyal to the BlackBerry platform and look forward to winning back many who have left.

THORSTEN HEINS
President and Chief Executive
Research In Motion
Waterloo, Ontario, Oct. 16, 2012

Image source.

Discussion Starters:

• Should The New York Times have contacted RIM for comment on the story before publication? Does it have an obligation to do so?
• What examples of logical argument, emotional appeal, and credibility do you find in Heins's opinion letter?

Wyclef Jean's Failed Haitian Charity

Haitian-American rapper Wyclef Jean's charity is now defunct, with questions of impropriety in its wake. A New York Times article, "In Haiti, Little Can Be Found of a Hip-Hop Artist's Charity," cites angry creditors wondering what happened to $16 million in donations and "trail of debts, unfinished projects, and broken promises."

According to the New York Times article, Jean was using funds for his personal benefit: 

"The forensic audit examined $3 million of the charity's 2005 to 2009 expenses and found $256,580 in illegitimate benefits to Mr. Jean and other Yéle board and staff members as well as improper or potentially improper transactions. These included $24,000 for Mr. Jean's chauffeur services and $30,763 for a private jet that transported Lindsay Lohan from New Jersey to a benefit in Chicago that raised only $66,000."

When accused of misdirecting funds, Jean said that he didn't need the money, offering as evidence, "I have a watch collection worth $500,000." This didn't quite endear people to his cause.

In his new book, "Purpose: An Immigrant's Story," Jean denies wrongdoing. Rather, he claims that he is the victim of "crucifixion."

A CEO letter that was posted on the charity's now-defunct website refers to "better accountability, more impact and greater financial transparency" and "a more disciplined Yéle Haiti." It's too late for that now. 

Image source.

Discussion Starters:

•  Read the CEO letter. Which parts are the most and least convincing?
•  Read the New York Times article. Which side of the story do you believe? 

New Yahoo CEO Starts Hunting

Now that Marissa Mayer, Yahoo's new CEO, is back from maternity leave, she is building her new management team. On her first day back, she has hired Henrique de Castro from Google to be the company's chief operating officer. According to Yahoo's press release,  "de Castro will be responsible for strategic and operational management of Yahoo!'s sales, operations, media and business development worldwide."

Yahoo published the usual feel-good statements from both parties:

"'Henrique is an incredibly accomplished and rigorous business leader, and I'm personally excited to have him join Yahoo!'s strong leadership team,' said Marissa Mayer, CEO of Yahoo!. 'His operational experience in Internet advertising and his proven success in structuring and scaling global organizations make him the perfect fit for Yahoo! as we propel the business to its next phase of growth.'

"'The combination of Yahoo!'s unique properties with high quality content, its renewed focus on outstanding user experience and its massive reach bring tremendous value to users, advertisers and partners,' said de Castro. 'This is a pivotal point in Yahoo!'s history, and I believe strongly in the opportunity ahead. I can't wait to join Marissa and the team and get started.'"

De Castro could earn $60 million: a $600,000 base salary plus Yahoo stock and millions to compensate for lost Google stock.  

Image source with credit to YouTube.

Discussion Starters and Assignment Idea:

• Read Yahoo's press release. How is the statement organized? Do you find it well written?
• Write an email to employees announcing de Castro's appointment. How would you modify the company's press release to an internal audience?

Starbucks Requests Starbarks Name, Logo, and URL Change

Starbucks sent a cease and desist letter to Starbarks doggie daycare for having a name, logo, and web domain too similar to the coffee company's. A Starbucks representative defended the action: "...we have a legal obligation to protect our intellectual property . . . in order to retain our exclusive rights to it."

Andrea McCarthy-Grzybek, the owner of Starbarks,  said,  "I love the name. Everyone loves it. It's clever. It's not like we sell coffee or anything they do." With the URL, www.starbarksdog.com, the Algonquin, IL, small business offered to change the sign color to yellow and to use a graphic of paws instead of the stars, but Starbucks didn't bite (sorry).

Another company, with the domain starbarksaz.com, had a similar fate. Management explained the situation on its website: 

"Due to a conflict with a very famous coffee company our previous name (which we cannot mention) had to be changed to Canine Village only.  We are the same kennel and Canine Village was always a 'part' of our name.  This website will be shut down shortly  so please go to www.caninevillage.com and see all our wonderful reviews and many pages of information.  You can also email us with specific questions to caninevillage@cox.net.  Thank you for your understanding of this inconvenience."

As expected, public opinion is mixed, with some people blaming Starbucks for bullying and others saying the small business should have known better.

Image source 1.

Image source 2.

Discussion Starters and Assignment Idea:

• What's your view of the situation? Is Starbucks a bully, or should the small business owner have chosen another name? 
• Write a draft comment for the owner's Facebook page supporting one side of the argument.

Chase Misses on Philanthropy Program

AdAge ran an article lambasting the Chase Community Giving Program, a Facebook-based, philanthropic campaign.

The program certainly has had some success. If one measure of engagement is the number of Facebook "likes," then the page is a sure winner, with 3.8 million. Also, in 2012 alone (the program has run since 2009), 196 charities received $5 million in prizes, based on online votes.

But the article criticizes Chase's voting process:

"The same charges of voting fraud that have plagued the contest since it started also resurfaced this year, and Chase has been accused of conducting a secret vote count that allows it to block winners whose mission is not consistent with the bank's public image.   Even some of the winners were disgruntled, wondering whether the effort they had to make with their limited resources had actually left them worse off in the end."

Also, apparently a clerical error promised $10,000 in prizes to 15 charities that didn't win enough votes. Chase made good on the commitment but soured the program's credibility.

Chase's apology, shown here, received more than 6,500 "likes," but it may not be enough to offset comments such as this from a representative of a pet sanctuary:

"This mistake of theirs caused damage to each organization's ability to raise funds, since our supporters think we won 10K, and it damages the integrity of the organizations as well; people will think we did something wrong to cause us to lose the $10K."

B.L. Ochman, the author of the AdAge article offers this advice for companies running online contests: 

• [Understand that] Facebook is not a secure site for nominations or voting. 
• Acknowledge screw-ups openly.  ions stand to gain from engaging in productive conversations with both positive and negative responders.
• Don't be in such a hurry to announce winners. 
• Show us where the money goes. 
• Take viable steps to prevent cheating next year.

Discussion Starters:

• What else could Chase do now to redeem the program's credibility?
• Looking at the Facebook page, what suggestions do you have for Chase to improve its communications with online voters?

In Email to Employees, CEO Threatens Layoffs if Obama Wins

CEO David Siegel of Westgate Resorts wrote an email to his employees warning of dire circumstances if President Obama is re-elected. Excerpts follow, and you can read the entire email here.

The email is reminiscent of a chain letter from 2008 from an alleged small business owner. Siegel confirmed with Gawker that his letter is real and was sent to his employees, but he acknowledged using the original as a "guideline" and said, "It speaks the truth, and it gives [employees] something to think about when they go to the polls."

Siegel and his wife were the subject of a documentary, "The Queen of Versailles," about their plans to build the largest home in America-a $100-million-dollar, 28-bedroom, 90,000-square-foot mansion.

Discussion Starters:

• What are the potential consequences of a CEO's sending such an email to employees?
• Do you agree with Siegel's arguments? Why or why not?
• Does knowing about Siegel's extravagant home change your opinion of him or his concerns about his business?

#FirstWorldProblems Become a Clean Water PSA

The Haitian charity "Water Is Life" has co-opted ironic #FirstWorldProblems tweets into a public service announcement for clean water. In the video, Haitians read the tweets, which are shown as captions. On the charity's website, Water Is Life, one of the photo captions reads, "Donate to help solve real problems."

The campaign is the work of ad agency DDB New York, which has been both applauded and criticized for the messaging. Business Insider posted an article, "Poor Haitians Reading #FirstWorldProblems Tweets Might Be The Best Ad Of The Year," calling the effect "both funny and moving."

Critics of the campaign accused DDB of misunderstanding the irony of the tweets: #FirstWorldProblems aren't problems at all-that's the point. But Matt Eastwood, who led the campaign, told Business Insider, "We totally understand the irony of it. People are doing it as a joke. It leads to a desensitization around the issue." He also said, "We knew we were going to upset a few people. People in Haiti don't have the luxuries these guys do."

In a press release, the agency described its mission:

 "DDB New York announced today that it is attempting to eliminate the #FirstWorldProblems hashtag on Twitter – the first mission to wipe out, instead of promote, a trending hashtag. #FirstWorldProblems showcases concerns that seem important to those living in wealthy, industrialized countries, yet are, in fact, trivial compared to the issues faced by those struggling to survive in many parts of the world. Though meant in jest, these tweets about "problems"-such as having to get up to change the TV channel or a phone charger that won't reach the bed - also reveal a lack of sensitivity or awareness about serious social and health concerns and the ways that social media users can help alleviate real problems."

AdWeek sums up the issue well: "Harnessing a spoof hashtag in PSAs to drum up press coverage, popular support, and donations-how first world can you get?"

  

Discussion Starters:

• What's your opinion of the video: funny, moving, insensitive, or something else?
• Do you think the ad will be effective is encouraging people to donate to Water Is Life?

"Worldulike": EU's Spin on Climate Change

"A world you like. With a climate you like." This is the European Union's attempt to rebrand climate change, hoping people will choose a "Worldulike."

The website presents case studies of organizations that have taken saved energy expenses and, in some cases, redirected funds to better use, such as education.

In a press release, Connie Hedegaard, European Commissioner for Climate Action, explains the new approach:

"We have a choice: We can ACT on our knowledge about climate change. Or we can sit idly by and watch as things get worse. Both options come with a price tag. So why not create a world we like, with a climate we like, while we still have time? With this campaign we want to focus the debate on the solutions and find out what is holding us back from applying them."

The name is already getting some ribbing from, for example, Roger Harrabin of BBC:  "The campaign title ‘Worldulike' will doubtless raise eyebrows. The name is uncomfortably reminiscent of the British baked potato restaurant chain Spudulike."

Discussion Starters:

• Do you think the EU's campaign will be successful in getting people to make better decisions about energy use-and in meeting the EU's goal of reducing greenhouse gases by by 80 to 95 percent by 2050? Why or why not?
• Choose one of the case studies on the website. What makes the example effective, and how could it be improved?

Burger King Loses in Drive-Thru Experience

QSR Magazine just published the latest data comparing quick-service restaurants' drive-thru experience-and Burger King came in last overall. For the 2012 Drive-Thru Performance Study, seven restaurants were rated on these criteria:

• Average Service Time
• Order Accuracy with OCB
• Order Accuracy without OCB
• Impact of Pre-Sell Menu
  on Timing
• Favorable Exterior
• Visibility of Dumpsters
• Cleanliness of Menuboard
• Condition of Landscaping
• Customer Service
• Service Attributes
• Order Confirmation Board
  In Place
• Speaker Clarity

The drive-thrus didn't fare too well on the customer service dimension. Brian Baker, president of Insula Research, the firm that led the study, said, "Even with pleasant demeanor, I'm thinking, why would that not be 100 percent? OK, so maybe 98 percent because everybody has a bad day, but it just seems like a no brainer to me. I'm still scratching my head on that."

Rather than 100%, ratings for "very friendly" ranged from 27% ro 57%, with Burger King receiving the most "rude" ratings: 2.8%

Denny Lynch, Wendy's senior vice president of communications, blamed service failures on limitations in hiring: 

"Part of it is to make certain we are hiring the right people. Wouldn't it be nice if [the drive-thru crewmember] had a great personality? Wouldn't it be nice if they could smile at you? Wouldn't it be nice if they could say, ‘Thank you, come back again'? So you hire people that have that personality and the skill level to be able to do that. … You can't just assume that they can handle every situation until they've done thorough training."

The study reported good news about drive-thru cleaniness. Brands generally did well in measures such as whether the dumpsters were visible and how clean the menu board appeared.

Discussion Starters and Assignment Idea:

• What can QSRs do to improve their customer service at the drive-thru windows? Consider the restaurants' hiring practices, training, performance standards, and management.  
• Create a visual chart from the customer service data above. If you wanted to convince Burger King management to focus on improving the drive-thru experience for customers, which data would you include? What type of chart would you use? Assume that your chart appeared on a PowerPoint slide, and include a talking headline to convey your main point. 

Strikes at Foxconn

Once again, Foxconn is in the news for labor issues. Although the company denies allegations, reports show workers on strike because of poor working conditions and unrealistic expectations for production. The maker of the iPhone 5 and other Apple products acknowledged two small disputes but no organized strike or stoppage. 

Last week, videos showed workers rioting. This Reuters report calls the situation "the dark side of tech assembly plants in China."

According to China Labor Watch, a watch group based in New York, between 3,000 and 4,000 workers have gone on strike. The group explains the conflict in a press release:

"In addition to demanding that workers work during the holiday, Foxconn raised overly strict demands on product quality without providing worker training for the corresponding skills. This led to workers turning out products that did not meet standards and ultimately put a tremendous amount of pressure on workers. Additionally, quality control inspectors fell into to conflicts with workers and were beat up multiple times by workers. Factory management turned a deaf ear to complaints about these conflicts and took no corrective measures. The result of both of these circumstances was a widespread work stoppage on the factory floor among workers and inspectors."

 Discussion Starters:

• So far, Apple has not issued a response to the latest news at Foxconn. Should the company respond, and if so, how?
• What is Apple's responsibility in this situation with its major supplier? What should the company do?

KitchenAid's Errant Tweet

One of KitchenAid's tweeters confused accounts. During the Presidential debate Tuesday night between President Obama and Mitt Romney, someone tweeted from KitchenAid's handle:

"Obamas gma even knew it was going 2 b bad!
'She died 3 days b4 he became president.'"

Although the company deleted the tweet, the damage was done. Criticsm was quick and rampant on Twitter. 

Cynthia Soledad, a senior director at KitchenAid issued this response:

"During the debate last night, a member of our Twitter team mistakenly posted an offensive tweet from the KitchenAid handle instead of a personal handle. This tasteless joke in no way represents our values at KitchenAid. This person will no longer be tweeting for us and appropriate actions are being taken.  That said, I lead the KitchenAid brand, and I take responsibility for the whole team. I am deeply sorry to President Obama, his family, and our consumers for this careless error."

Soledad posted a similar comment on the company's Facebook page: 

Someone managing the KitchenAid handle also tweeted this apology:

Discussion Starters:

• What could KitchenAid have done to prevent this situation?
• How do you assess KitchenAid's apologies? What aspects of the company's response are effective, and what could be improved?

Viewer Regrets Comments About TV Anchor's Weight

A local news station viewer in Wisconsin says he "never meant to hurt" the TV anchor whom he accused of being a poor role model for young people because she's obese. Jennifer Livingston's husband posted the email on his Facebook page and wrote that it "infuriated" him.

In a four-minute, on-air response, Livingston called the comments "hurtful" and says that "attacks like this are not okay." She also took the opportunity to reinforce National Anti-Bullying Month.

Krause felt some remorse for his comments. He told ABC News, "It's possible I would revise a few things. I never meant to hurt Jennifer. If she is truly hurt, I do apologize for that." But Krause denied the label of "bully": "I'm in no position to bully her. She's a big media personality. I'm just a working stiff."

Discussion Starters:

• How effective was Livingston's response in explaining her position? Do you empathize with her more after watching the video?
• Krause argues that bullying has something to do with power or position. What is his argument, and do you agree with him?

American Airlines Responds to Loose Seats

After reports of seats coming loose during flights, American Airlines is investigating the situation and inspecting 47 planes. American admits that six planes each had a row of seats that weren't properly clamped down. Some became dislodged while in flight.

American spokeswoman Andrea Huguely issued a statement including these excerpts:

"Originally, American planned to evaluate the seats on eight Boeing 757 airplanes, but out of an abundance of caution, the decision was made to proactively evaluate a total of 47 Boeing 757 airplanes that have the same model Main Cabin seats with a common locking mechanism."
 
"American's internal investigation has focused on one of three types of Main Cabin seats on the 757s and how the rows of these three seats fit into the track that is used to secure the rows to the floor of the airplanes. Our maintenance and engineering teams have discovered that the root cause is a saddle clamp improperly installed on the foot of the row leg."

"Safety is -- and always will be -- American's top concern."

The seats are the latest in a series of issues plaguing the airline. Now under Chapter 11 bankruptcy protection, American has been grappling with labor relations issues that airline management blames for recent flight delays and cancellations.

According to a Washington Post article, the airline spokeswoman Andrea Huguely said that airline employees last touched the seats, but a labor union representative took issue with the accusation: "Our workers were the last to touch the seats only in the sense that after the seats came loose, we were dispatched [to fix them." Because seat installation is handled by a third-party, the labor union denies responsibility and blames management for the outsourcing decision. Indeed, Timco Aviation Services installed the seats. 

Regardless of where the responsibility lies, this is more bad publicity for American Airlines.

Discussion Starters:

• How can American Airlines manage this latest bout of bad news?
• How do you assess the airline's response?
• If you were the president of Timco Aviation Services, what would you do now?

Disgruntled Employee's Resignation Email Makes the Rounds

An employee at UK-based media agency MEC left the company with some harsh words. Kieran Allen, a senior account manager, wrote a bitter resignation email addressed to "All Staff" in the London office. Someone leaked the email, and it went viral. 

A spokesperson for MEC issued this poorly written response:

"We are sad that one of our employees has chosen to share their personal views in such a public way and has left the company with such bad feeling. 

"We are taking this issue seriously though given the highly personal nature of the email, we cannot comment further."

The interviewee named in the email denies the accusation of having sexual relations with her future boss: "I didn't sleep with him. I kissed him. I had been to the pub with Greg for an informal interview for a job. It was a kiss in the foyer whilst waiting for taxis. We were both single at the time."

Here's the email with names redacted:

From: Kieran Allen
Sent: 25 September 2012 08:11
To: MEC London UK All Staff
Subject: Leaving

Hello MEC,

It feels quite strange to be writing my leaving speech after 2 1/2 yrs. of loyal service to the company. It's the longest I have spent at a company and I owe MEC a lot for my training and development. I leave in a position where I can go and further my career in digital if I so wish and for that I pay MEC great tribute.

However I leave with a horrible taste in my mouth after my working life for the past 8months has been ruined by <redacted>.

Background:
Joined MEC in May 2010. Soon after I started to receive continuous praise from Kevin Kirby Account Director and <redacted> for my outstanding performance across accounts (mainly Specsavers) Inc. a commendation from <redacted> to Jason Dormieux about my ability and contribution. I also received high praise from Amy Creasey and Louise Temperley (re general Specsavers performance and securing a PPC turnaround for Colgate inc a 100%+ YoY spend increase).

October 2011
I decide to hand in my notice and join another agency in order to further my development. <Redacted> while initially cold to my departure rapidly changed tone and started to court me in order to stay.

January 2012
I retract my notice after <redacted> promotes me to Senior AM and gives me a substantial pay-rise along with the promise of rapid development.

However while all seemed well on the surface things were far from ideal in the background.

Oct-Feb 2011/12
My client load had been nearly trebled from 6 to 16 clients due to the departures of Aoife Bergin and Jacob Knox-Hooke (Brand team).
I was initially asked to help out in order to help service the clients while staff were recruited but I ended up being made the de-facto brand team manager along with my original client list.
The stress and strain took its toll and during late January – early February 2012 my health started to deteriorate rapidly.
I ended up breaking down to <redacted> that I couldn't take it anymore and that I was losing my mind under the pressure. Nothing changed although he knew I was beyond stacked.

Feb 21st I had to go to the doctors due to an imminent breakdown where I was ordered to stay off work indefinitely. I was signed off with Work Related Stress. I ended up needing over 2weeks off in order to recover.

On my return things went from bad to worse. <Redacted> instead of welcoming me back and looking to make things right, instead attacked me and made me feel an outsider. I was made to feel that I had actually done wrong.

Soon after my return in early March <redacted>

- blocked my 2011 bonus due to
1)"poor performance in 2011″
2) "being given a pay rise and promotion in Jan 2012″
3) "things not working out as recently planned"
4) "being monitored after coming back from illness"

- Gave me an official company verbal warning for poor performance in 2011

- Put me on a performance review

All of this though after
- Praising me regularly throughout 2010/11
- Courting me to stay when i decided to leave
- Promoting me to Senior Account Manager
- Giving me a 15% payrise
- Describing my performance as "outstanding" as late as December 2011 when there was a lot of issues due to staff departures
and my ability to step in and manage the brand teams PPC activity…

The only thing that changed during Feb/March 2012 is that I had to take 2 weeks off work due to work related stress and that <redacted> was questioned as Head of Department as to why this had happened under his watch and instead of taking responsibility he instead decided to attack me and my reputation in order to discredit my time off and make himself look less liable for blame.

This type of approach would seem extreme from a decent man but this is <redacted>  who openly in front of other team members

- Made jokes about the "Spastic Olympics" (referring to Para-Olympics)
- Openly claimed to be proud "not to have a drop of Jewish blood in him"
- Regularly made sexist and other bigoted remarks
- Took a female colleague out for a drink on the day he interviewed her, then later took her back to the MEC offices that night and had
sexual relations with her in the meeting rooms on the 3rd floor

The above is all common knowledge throughout the team. This is <redacted>'s style of leadership and is gross misconduct on many levels. It is hard to fathom that such a man is responsible for the work wellbeing of over 30staff.

I am writing this message in order to expose these failings and protect others in future. I am far from perfect personally or professionally but I am a good human being who treats people with respect. In 2012 this behaviour is not acceptable and certainly not in a company which touts itself as being all about its people.
Not one thing on this email has been exaggerated or made up. This is my truth to you all.

No doubt I fully expect the above to be ripped apart but as long as the truth is out there then that's all I can do.

Good luck to MEC and all those good people who strive to make her great.
Kieran

Kieran Allen
MEC
Senior Account Manager
Interaction

Discussion Starters:

• What's your impression of Allen's letter? Do you sympathize with him, or could there be another side to this story? 
• Does a bad work experience ever justify an email sent to all employees of a company, with the potential to go viral?
• Rewrite MEC's response to be more substantive and grammatically correct.