"Gawker Grows Up"
After big executive news last week, Gawker CEO Nick Denton wrote a long message to staff. Gawker's executive editor and the editor-in-chief of Gawker.com resigned after an article, which revealed that a high-ranking magazine executive was texting a gay escort, was removed from the site after a board vote. Denton explained the decision in a post, including, "The point of this story was not in my view sufficient to offset the embarrassment to the subject and his family."
The executives' perspective, reflected partly in a message from Max Read (editor-in-chief) to Gawker writers, was about the faulty separation between editorial freedom and business (my paraphrase):
"On Friday a post was deleted from Gawker over the strenuous objections of Tommy and myself, as well as the entire staff of executive editors. That this post was deleted at all is an absolute surrender of Gawker's claim to 'radical transparency'; that non-editorial business executives were given a vote in the decision to remove it is an unacceptable and unprecedented breach of the editorial firewall, and turns Gawker's claim to be the world's largest independent media company into, essentially, a joke."
In his message to staff, CEO Denton discussed these issues and announced management team changes. Part of his post addressed controversy about the removed story:
"My professional life is committed to a free press and open discourse. While the reputation of our media brands remains a proper concern of the company, we do not and will not make story decisions based on advertiser feedback. Our credibility with both readers and advertisers depends on strong, incisive and independent journalism.
"I will put the company on the line rather than cave to legal pressure from the subject of a story, no matter how powerful. I will preserve Gawker Media's reputation for fighting press freedom cases that other media companies would settle.
"In regards to the recent story about a media executive blackmailed by an escort, I've explained extensively I ordered this misjudged exposé removed because it was not in line with the editorial standards I believe Gawker.com should maintain. And yes, it was also damaging to the brand of Gawker.com and the reputation of the company that shares the same name."
Denton ended his message, "Gawker grows up."
Discussion Starters:
- Explain the executives' and the CEO's positions on the removed story in your own words.
- How is this story relevant to business communicators?
- Assess Denton's message to staff. What works well, and what could be improved in the organization, tone, writing style, and so on?
Email Still Prevails
New evidence shows the continued prevalence of email in the workplace. Its demise has been predicted over time, particularly with the increase of social media. But three examples this week tell us otherwise:
- Eighty-one percent of respondents in a Social Journalism Study by Cision prefer email for story pitches. Thirty percent preferred the phone, and 24% preferred social media. (Respondents could choose multiple methods.)
- A video, "Email in Real Life," is making the Internet rounds. "A Conference Call in Real Life" was popular a couple of months ago, and this video follows the same corporate humor.
- Complaints about email persist. A TechCrunch article, "It's All Your Fault Email Is Broken," denies help from programs and instead blames us, the user. The author cites a GFI Software study, which found that 55% of people check email after 11 p.m., 59% check email on vacation, and 76% respond to emails within an hour. A New York Times article tells us to "Stop Checking Email So Often."
Discussion Starters:
- The GFI study asked people whether email is a blessing or a curse. Ninety-percent said it was a blessing. What do you think? How would you answer the other questions?
- How long will email persist in organizations? With so many other tools available, why has it been the default communication for so long?
Toshiba Resignations
Toshiba has announced the resignation of the chief executive and seven other board members in the wake of an accounting scandal. An independent report found that the company had overstated earnings by $1.2 billion over seven years.
In a news conference, Chief Executive Hisao Tanaka said, "I apologize from my heart to all our stakeholders. To clarify management responsibility, I resign my posts as president and member of the board of directors as of today."
In the Japanese culture, it is traditional to bow deeply, particularly when admitting wrongdoing. Tanaka also said, "The responsibility lies in the management, including myself. As a response, I am stepping down from the post as the CEO and president."
The committee that issued the report found "systematic involvement, including by top management, with the goal of intentionally inflating the appearance of net profits." The committee also wrote, "Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors."
In a company statement, Toshiba promises changes as a result of the committee's findings, including disclosing the investigation report and correcting past financial statements.
Discussion Starters:
- What differences do you see in Toshiba and Toyota's news conferences (in 2010) compared to American companies' public hearings, such as GM's?
- How much confidence do you have in Toshiba after hearing this news? What can the company do to rebuild the brand?
Users Get Duped by Hotel Booking Sites
Last week, I wrote about the false report that Bloomberg is acquiring Twitter. This week's news is about people believing they book a hotel online, but the reservation is through a fake site.
According to the American Hotel & Lodging Association (AH&LA), 2.5 million bookings-$220 million-are going to rogue sites. Users who book through these sites may find that they don't have a reservation when they get to a hotel, they may be charged large fees, or they may get misinformation about rates or cancellation policies.
The Better Business Bureau suggests that people double check URLs, don't believe logos (which are easily copied), and avoid deals that are "too good to be true."
An LA Times article reminds us to look for secure signs on a website when entering personal information such as a name for a reservation or a credit card number: "You'll know you are connected by https if you see a lock in the URL bar of your Web browser."
Image source from the AH&LA.
Discussion Starters:
- What other advice would you have for people to assess whether a website is valid? Use the principles in Chapter 9 and your own ideas.
- Do you think a hotel has any responsibility for these rogue sites? Why or why not?
Reddit's CEO Change
Reddit has been a spiral of drama in the past few weeks. Wired gives a useful chronology of the CEO changes and other issues. Ellen Pao was hired as interim CEO in November 2014 after Yishan Wong resigned. Pao had been in the news because she was a junior investment partner at Kleiner Perkins Caufield & Byers and sued the firm for gender discrimination. She lost the suit, which went to trial, in March 2015.
At Reddit, Pao was criticized for banning several subreddits (topical groups within Reddit). Although Reddit was created as a place for free speech, some of it is hateful. But users felts that Pao overstepped in closing down some sites. More than 200,000 people signed a change.org petition calling for Pao's resignation.
In her resignation post, Pao thanked her supporters but focused on the trolls and hateful comments she had received. She asks people to consider others' humanity and writes, "So why am I leaving? Ultimately, the board asked me to demonstrate higher user growth in the next six months than I believe I can deliver while maintaining reddit's core principles."
According to Wired,
Reddit is home to some of the most hateful content on the Internet, but at least some of it appears to be here to stay. Reddit [new] CEO Steve Huffman said during an AMA [ask me anything] on the site today that the company would ban communities that "incite harm or violence against an individual or group of people," as well as any subreddit that "harasses, bullies, or abuses an individual or group of people."
But he did call out a specific racist subreddit by name-a name so offensive that we won't repeat it here-as an example of the kind of content that would remain, though likely under a new classification-an assurance that brought cheers from the subreddit's members.
Wired also summarizes Pao's resignation:
Some have decried Ellen Pao's resignation from Reddit as a step in the wrong direction for an industry where women leaders are still a distinct minority, but the site's detractors say good riddance. Though Reddit was originally intended as a place where the ideals of free speech and the wisdom of the crowd would reign, often the crowd turned into a mob.
Discussion Starters:
- People are so divided over Pao's resignation. What's your opinion? Was the decision best for the website? What are the consequences?
- How, if at all, does her Kleiner lawsuit factor into your opinion? What if she had won the case?
Scott Walker's Logo Controversy
Presidential candidate Scott Walker revealed a new logo, but critics say it's too close to that of America's Best Contacts & Eyeglasses.
The company has commented on the similarity, particularly to point out that it is not endorsing Scott Walker. According to NPR, CEO Reade Fahs also said Walker has probably seen the logo: "It's on hundreds of stores across the country. So assuming he's got good vision, he probably would have spotted it in his campaign travels. And we have lots of stores in Wisconsin too." Fahs said the controversy is "sure good for our business." He said, "Ever since the controversy erupted our online eye exam bookings have hit record levels."
A Walker spokesperson told NPR, "There are thousands and thousands of people who use the American flag as branding." She may be right, and logos are often called into question for similarities. Hillary Clinton was criticized for hers when she announced her campaign in April.
Discussion Starters:
- What's your view of the similarity? Should the Walker campaign have known better?
- What should Walker do at this point? Should the governor find a new logo?
People Duped by Twitter Story
A fake story that Bloomberg is buying Twitter sent shares up 8.5% at one point. The news came from the website bloomberg.market-not the real bloomberg.com-with the title "Twitter attracts suitors." The report claimed Bloomberg would acquire Twitter for $31 billion.
According to a Reuters article, experts say the "fake website and report did not require a high level of skill." Anyone can register a website. What's surprising is that people believed the news so readily. Former CEO Dick Costolo's name was misspelled as Costelo in the article.
Although Twitter and the SEC didn't comment on the story, Bloomberg Ty Trippet representative offered a brief statement: "The story was fake and appeared on a bogus website that was not affiliated with Bloomberg."
Discussion Starters:
- What principles of evaluating sources from Chapter 9 would have helped readers assess the story?
- Should Twitter have made a statement about the story? Why or why not? If so, what should the company have said?
- What are the ethical considerations in this story? Who got hurt?
Microsoft's Latest Layoff Email
Microsoft CEO Satya Nadella sent an email to employees announcing a major layoff-7,800 employees. This is in addition to the 18,000 employees laid off last year.
Satya's email breaks the news starting in the third paragraph:
"We anticipate that these changes, in addition to other headcount alignment changes, will result in the reduction of up to 7,800 positions globally, primarily in our phone business. We expect that the reductions will take place over the next several months.
"I don't take changes in plans like these lightly, given that they affect the lives of people who have made an impact at Microsoft. We are deeply committed to helping our team members through these transitions."
Nadella goes on to describe changes in the company's phone, mapping, and advertising businesses. His email is considerably better than Stephen Elop's long, rambling message in 2014, which revealed the bad news in the 11th paragraph.
Still, U.S. Republican Senator Jeff Sessions criticized Microsoft's layoffs:
"Microsoft has just announced it is laying off another 7,800 workers, on top of the 18,000 layoffs it has already announced. This means Microsoft has shed roughly 1/5th of its workforce in the past couple years. And yet Microsoft, perhaps more than any other major U.S. company, has claimed it suffers from a shortage of American workers and must therefore import more H-1B foreign guest workers."
Discussion Starters:
- Assess Nadella's email. What works well, and what could be improved? Consider the audience and purpose when you analyze the tone, word choice, organization, and so on.
- What's your view of Senator Sessions' criticism. Is this fair given the current layoffs?
Subway Cuts Ties with Jared
After more than 15 years as the Subway poster-child, Jared Fogle may have to find a new gig. The company has cut ties with Fogle after learning about an investigation related to child pornography.
Fogle lost 245 pounds in 1999 and starred in his first Subway ad in January 2000 with the disclaimer, "The Subway diet, combined with a lot of walking, worked for Jared. We're not saying this is for everyone. You should check with your doctor before starting any diet program. But it worked for Jared." This started an advertising campaign to emphasize healthy food options at Subway.
Of course, Fogle may be exonerated of any wrongdoing. A raid on Fogle's home was instigated by the arrest of a former executive director of Fogle's nonprofit organization, whose mission is to combat childhood obesity.
Subway isn't taking any chances. In a statement, the company said, "Jared continues to cooperate with authorities and he expects no actions to be forthcoming. Both Jared and Subway agree that this was the appropriate step to take."
Discussion Starters:
- Did Subway do the right thing? What if Jared is proved innocent? Could he have legal grounds to sue Subway?
- Some believe it's time for Jared to go, anyway. What do you think, based on the company's performance, goals, and so on?
Fresh Hashtag Fails
It's been a while since someone has ventured into a Twitter hashtag and it backfired. This week, Fifty Shades of Grey author EL James and presidential hopeful Louisiana Governor Bobby Jindal fell victim to snarky tweets.
From her hashtag #AskELJames, James caught nasty questions about her writing style:
- "Do you get paid per adjective?"
- "Have you ever held a dictionary?"
- "Did you ever consider using a thesaurus, or did that sound too much like hard work?"
Governor Jindal tried the #AskBobby but got similar poor results. People questioned his record and his success as a governor.
Discussion Starters:
- Research a few successful hashtags. What is the difference between these and those that fail?
- If you were running for office, would you try this approach? If so, how?
Deceptive Native Advertising and Other Issues
After binge-listening to Serial, I'm hooked on StartUp, the show about a new podcast company, Gimlet Media. Episode 9 of Season 1 is an excellent example of crisis communication and some problems associated with advertising.
A podcast includes an ad of a nine-year-old boy describing how he uses a website. The boy and his mother weren't clear that the interview would be for an ad; instead, the proud mom thought her son would be interviewed for a "This American Life" radio show. In the episode, StartUp founder Alex Blumberg describes the mistake, which wasn't intentional but got a lot of social media attention.
The story reminded me of a study recently published by Reuters Institute. According to the research, "More than a third of British and American readers of online news say they have felt 'disappointed or deceived' after reading an article that turned out to be paid for by an advertiser." This is the dilemma of native advertising, which the Reuters study describes as follows:
"Brand messages look more like regular content – sitting in the same templates and using the same formats that might be used for a standard piece of journalism or a user-generated post on social media."
Although this isn't quite the same as the StartUp controversy, both methods of advertising need to be handled well. In the StartUp episode, Blumberg describes how careful the company is to let people know an advertisement is coming, so it's not mistaken for program content. Blumberg also explains the value of native advertising but is careful not to endorse products just because they're paid to do so.
Discussion Starters:
- What's your reaction to native advertising? Have you been duped? How did you feel?
- What mistakes did the Gimlet team make in Episode 9?
- What are the mother's responsibilities in the situation? What, if anything, could she have done differently?
Age Distribution of Social Network Users
A new Business Insider report shows the age distribution of social network users. Unfortunately, only those 18 and older are included in this graphic.
Social networks around images continue to increase in popularity. Instagram now outpaces Facebook as teens' "most important" social network: 32% compared to 14%. Forty-two percent of women online use Pinterest.
Facebook, LinkedIn, Twitter, and Pinterest continue to attract older demographics. According to comScore quoted by Business Insider, "Less than two-fifths of Facebook's adult user base in the US is aged 18 to 34."
Discussion Starters:
- Why are so few users aged 18 to 24 on Twitter? And yet the site seems to be more popular with pre-teens. Why?
- What, if anything, surprises you about the data?
- How should businesses respond to this information?
Companies' Responses to Gay Marriage Ruling
The Supreme Court's ruling in favor of same-sex marriage has inspired many companies to show their support. With popular opinion on their side, 379 companies had encouraged the Supreme Court to eliminate bans across the country. Huffington Post shows a remarkable alphabetical list.
Now that the decision is made, companies have recolored their logos and written messages to show their support. Ben & Jerry's changed the name of its Chocolate Chip Cookie Dough ice cream to "I Dough, I Dough," with an image of two identical cows holding hands.
It's interesting to see which companies are vocal. Apple, Google, American Apparel don't surprise me, but Maytag?
Discussion Starters:
- How do companies decide whether and how to show their support? What are the risks either way?
- Does whether a company shows its support influence whether you would buy its products or services?
New Words in the Oxford English Dictionary
The Oxford English Dictionary now includes 500 new words. Twerking is getting publicity: attributed to Miley Cirus, the word has origins dating back to 1820, a blend of twist and jerk.
Several additions are new slang words, such as bae and lamestream, while others reflect social media activities, such as selfie stick, troll, and Twitterati. Lamestream is new to me-a blend of lame and mainstream (like TV, I guess).
Portuguese and Arabic dictionaries got more than 900 new entries. What a decision process this must be!
Discussion Starters:
- Read the recent updates from Oxford. Do you know all of the terms? Are they good choices to include?
- What criteria do you think are used to determine whether a word makes it into the dictionary?
- How do you decide whether to use a new word in business? What about the purpose, audience, culture, and so on would help you use words appropriately yet not fall behind?
Walmart, Amazon, and Others Stop Selling Confederate Flag Images
Items such as this "Rebel Flag Southern Pride Confederate Redneck Belt Buckle" will no longer be sold at Walmart. Walmart, eBay, Amazon, and Sears will discontinue the flag image that many consider a symbol of racism. The decision comes in the wake of nine murders at an African-American church in South Carolina.
Held by the southern U.S. states that supported slavery, the flag may fly for the last time on South Carolina state grounds. Governor Nikki Haley has called for the flag to be removed, a decision that requires a vote by two-thirds of the legislature.
Companies are following suit. In a statement by a Walmart spokesperson, the company promised to remove all items carrying the flag graphic:
"We never want to offend anyone with the products that we offer. We have taken steps to remove all items promoting the confederate flag from our assortment -- whether in our stores or on our web site. We have a process in place to help lead us to the right decisions when it comes to the merchandise we sell. Still, at times, items make their way into our assortment improperly -- this is one of those instances."
An eBay spokesperson said that the confederate flag "become a contemporary symbol of divisiveness and racism." The online site along with Amazon and Sears will stop selling products with the image.
Discussion Starters:
- What's the opposing view? Why do people favor the image of the Confederate flag?
- Did Walmart and the others do the right thing? Why or why not?
- What other companies would you expect to announce a similar decision to discontinue products?
Brian Williams: "I Said Things That Were Wrong"
Brian Williams will be replaced as NBC news anchor following an investigation into his reporting. In an interview with Matt Lauer, Williams admitted stretching the truth in some cases:
"It had to have been ego that made me think I had to be sharper, funnier, quicker than anybody else. Put myself closer to the action, having been at the action in the beginning."
He said he didn't intend to mislead viewers:
"I told stories that were wrong. It was not from a place where I was trying to use my job and title to mislead...I got it wrong. I own this. And I own up to this."
NBC announced the decision and Williams' replacement, Lester Holt, on its website. The company included a quotation from Steve Burke, CEO of NBCU, expressing confidence in Williams' future career at MSNBC:
"As you would imagine this was a difficult decision. Brian Williams has been with NBC News for a very long time and he has covered countless news events with honor and skill. As I said in February, we believe in second chances, and I am hopeful that this new beginning will be good for Brian and the organization. This matter has been extensively analyzed and deliberated on by NBC. We are moving forward."
In that news announcement, Williams offered this apology:
"I'm sorry. I said things that weren't true. I let down my NBC colleagues and our viewers, and I'm determined to earn back their trust. I will greatly miss working with the team on Nightly News, but I know the broadcast will be in excellent hands with Lester Holt as anchor. I will support him 100% as he has always supported me. I am grateful for the chance to return to covering the news. My new role will allow me to focus on important issues and events in our country and around the world, and I look forward to it."
Discussion Starters:
- Are you surprised at the decision after reading the news? Why did NBC executives move Williams to MSNBC rather than terminate his contract?
- How well did Williams handle the apology? What else, if anything, should he say at this point?
Pope Francis's Encyclical on the Environment
Pope Francis has weighed in on the environment, warning us about "unprecedented destruction of ecosystems" and terrible consequences. In a 184-page letter, the Pope criticizes our "throwaway culture" and appeals to our morality to address the issue. He highlights inequality throughout his message:
"The human environment and the natural environment deteriorate together; we cannot adequately combat environmental degradation unless we attend to causes related to human and social degradation. In fact, the deterioration of the environment and of society affects the most vulnerable people on the planet: both everyday experience and scientific research show that the gravest effects of all attacks on the environment are suffered by the poorest. For example, the depletion of fishing reserves especially hurts small fishing communities without the means to replace those resources; water pollution particularly affects the poor who cannot buy bottled water; and rises in the sea level mainly affect impoverished coastal populations who have nowhere else to go. The impact of present imbalances is also seen in the premature death of many of the poor, in conflicts sparked by the shortage of resources, and in any number of other problems which are insufficiently represented on global agendas. It needs to be said that, generally speaking, there is little in the way of clear awareness of problems which especially affect the excluded. Yet they are the majority of the planet's population, billions of people."
Although his tone is foreboding, Pope Francis does offer encouragement:
"Yet all is not lost. Human beings, while capable of the worst, are also capable of rising above themselves, choosing again what is good, and making a new start, despite their mental and social conditioning. We are able to take an honest look at ourselves, to acknowledge our deep dissatisfaction, and to embark on new paths to authentic freedom. No system can completely suppress our openness to what is good, true and beautiful, or our God-given ability to respond to his grace at work deep in our hearts. I appeal to everyone throughout the world not to forget this dignity which is ours. No one has the right to take it from us."
Discussion Starters:
- What's your view of the Pope's message? Why is he contributing in this way to the debate?
- Assess the value of an encyclical. What is the significance of this communication method?
President Addresses Charleston Shooting
President Obama held a news conference to address the tragic shooting at a Charleston, SC, church. Nine people were killed at a black church by a white man. The President said a hate crime investigation will begin.
Much of the news conference focused on gun control:
"We don't have all the facts, but we do know that once again innocent people were killed in part because someone who wanted to inflict harm had no trouble getting their hands on a gun. Now is the time for mourning and for healing, but let's be clear: At some point, we as a country will have to reckon with the fact that this type of mass violence does not happen in other advanced countries. It doesn't happen in other places with this kind of frequency."
The President also discussed our nation's history:
"‘The fact that this took place in a black church obviously also raises questions about a dark part of our history. This is not the first time that black churches have been attacked, and we know that hatred across races and faiths pose[s] a particular threat to our democracy and our ideals.'"
Discussion Starters:
- Critics say the President didn't say enough about the hate crime. What's your view?
- How well did the President address reporters' questions at the news conference. What advice would you give him for future sessions?
NAACP President and Questions About Race
The NAACP president of the Spokane, WA, chapter has resigned after facing claims that she has been impersonating a black person. Rachel Dolezal's parents say she was born white; the family adopted four black children when Dolezal was a teenager, which some speculate began her changed racial identity.
The NAACP released a statement supporting Dolezal and addressing threats to the organization.
Today, Dolezal announced her resignation in a Facebook post addressed to the executive committee and NAACP members. Here are two paragraphs from her statement:
"I am delighted that so many organizations and individuals have supported and collaborated with the Spokane NAACP under my leadership to grow this branch into one of the healthiest in the nation in 5 short months. In the eye of this current storm, I can see that a separation of family and organizational outcomes is in the best interest of the NAACP.
It is with complete allegiance to the cause of racial and social justice and the NAACP that I step aside from the Presidency and pass the baton to my Vice President, Naima Quarles-Burnley. It is my hope that by securing a beautiful office for the organization in the heart of downtown, bringing the local branch into financial compliance, catalyzing committees to do strategic work in the five Game Changer issues, launching community forums, putting the membership on a fast climb, and helping many individuals find the legal, financial and practical support needed to fight race-based discrimination, I have positioned the Spokane NAACP to buttress this transition."
Discussion Starters:
- What's your view of the situation?
- The NAACP refers to "a legal issue with her family." How much does this play into the situation?
- Did NAACP do the right thing by supporting Dolezal? Did she do the right thing by resigning?
Organic Farmers Displeased with Whole Foods
Whole Foods needs to complete with traditional grocery stores, which are offering more organic items. Arguably, Whole Foods created the market, but stores such as Costco, which sold $4 billion of organic foods in 2014, are increasing their food selection and offer lower prices and one-stop-shopping.
Responsibly Grown is the company's new strategy of labeling foods "good," "better," or "best."
Although Whole Foods claims to "Reward farmers who work hard to protect human health and the environment," organic farmers say they will no longer benefit from having a federal certified organic designation. According to an organic farmer quoted in The New York Times, "Becoming organic is a big investment of time and money. This ratings system kind of devalues all that - if you can get a ‘best' rating as a conventional farmer using pesticides and other toxic substances, why would you grow organically?"
According to The New York Times, the lines are increasing blurred:
"Conventional growers can receive higher rankings than organic farmers by doing things like establishing a garbage recycling program, relying more on alternative energy sources, eliminating some pesticides and setting aside a portion of fields as a conservation area."
Matt Rogers, associate global produce coordinator at Whole Foods, says the program gives consumers more choice and encourages conventional farmers to move toward the organic standard, which currently doesn't include "water, waste, energy, farmworker welfare."
Discussion Starters:
- Do you consider Whole Foods' new rating system ethical? Use the Guidelines for Ethical Decision Making in Chapter 1 to form your opinion.
- What's your view of the Responsibly Grown program? Do you tend to side with Whole Foods' or the farmers' perspective?