First Debate of Republican Candidates
The presidential election is still more than a year away, but the Republican candidates already debated for the first time.
Donald Trump has been leading in the polls, and he was positioned in the center of the 10 candidates. Trump won the debate in terms of airtime with 11 minutes, 14 seconds.
In its casual, sardonic style, The Skimm summarized the debate as follows:
"That Donald Trump likes to talk a lot. And everyone else would like some more attention. Trump is going for the White House - even if he doesn't get the GOP nomination. And he clarified that he doesn't like to insult all women. Just Rosie O'Donnell. Jeb had to talk about his last name. But he'd prefer if you call him ‘ Veto Corleone.' Dr. Ben Carson reminded everyone that he exists, and that he's separated Siamese twins. Scott Walker is proud to be normcore. Rand Paul and Chris Christie do not - repeat DO NOT - like each other. Everyone likes the Iran nuclear deal just about as much as they like Hillary Clinton (hint: they don't, but Kimye does). John Kasich said he still doesn't like the idea of gay marriage, but he'd still love his daughter if she were gay. Marco Rubio feels #blessed to be on stage with all these candidates, since the Dems can't even find one. And Ted Cruz and Mike Huckabee were there too."
Discussion Starters:
- Who do you think won the debate? What criteria do you use for deciding?
- Compare The Skimm's summary to that of other news reports. How do they compare, and what could account for the differences?
- Questions about climate change weren't included in the debate. Why do you think this is the case? Should they have been included?
Controversy About CEO Pay Disclosure
The U.S. Securities and Exchange Commission voted to require CEOs to disclose how their pay compares to that of employees in their organization. The requirement is part of the Dodd-Frank Act, passed in 2010 to prevent another financial crisis and to protect consumers.
The decision is one strategy for what people consider pay inequity between high- and low-earners in the United States, which has increased dramatically, as reported by BloombergBusiness:
"Average CEO pay at the 350 largest U.S. companies by revenue surged 997 percent from 1978 to 2014, while the compensation of non-supervisory employees rose 10.9 percent, according to the Economic Policy Institute, a research group that advocates for workers.
"While CEOs earned about 30 times what the typical employee did in 1978, corporate chiefs' pay had jumped to more than 300 times their employees' compensation as of 2014, the institute said."
Opponents say the ruling creates an expensive process and will serve only to embarrass CEOs. But the decision offers several ways for companies to calculate wages, excludes up to 5% of foreign workers, and requires reporting only every three years.
Discussion Starters:
- What's your view of the ruling? Is this the right move, and will it achieve its purpose?
- How do you assess the Economic Policy data shown above? What story do the numbers tell, and what may be missing?
- How could you display the Economic Policy Institute data visually? What chart type(s) would be most appropriate?
Kraft's Direct Recall Notice
In a straightforward press release, Kraft announced a recall of its Singles products. The headline is clear and specific, and the main point is up front. The notice begins as follows:
THE KRAFT HEINZ COMPANY VOLUNTARILY RECALLS SELECT VARIETIES OF KRAFT SINGLES PRODUCTS DUE TO POTENTIAL CHOKING HAZARD
Only 3-Lb. and 4-Lb. Packages of Kraft Singles Included in Recall
NORTHFIELD, Ill.--(BUSINESS WIRE)--Jul. 31, 2015-- The Kraft Heinz Company is voluntarily recalling select code dates and manufacturing codes of Kraft Singles individually-wrapped slices due to the possibility that a thin strip of the individual packaging film may remain adhered to the slice after the wrapper has been removed. If the film sticks to the slice and is not removed, it could potentially cause a choking hazard.
This Smart News Release features multimedia. View the full release here:http://www.businesswire.com/news/home/20150731005896/en/
Kraft calls this a "Smart News Release" because it has more than text. A table and images show how to find affected products.
One line in the release expresses the company's sentiment: "We deeply regret this situation and apologize to any consumers we have disappointed."
Discussion Starters:
- Complete an audience analysis for this situation. What is important for Kraft to know as it navigates this recall?
- Analyze the entire release for clarity, tone, organization, and so on. Which principles for bad-news messages from Chapter 8 are followed, and which are not?
- What else, if anything, should the company communicate at this point? Is the apology sufficient?
University of Cincinnati Shooting
A University of Cincinnati campus police officer shot Samuel DuBose, whose car was pulled over for a missing license plate. A video taken from the officer's own body camera led people to consider the shooting "purposeful." A grand jury has indicted the officer for murder. If he is convicted, he faces 15 years to life in prison.
Hamilton County Prosecutor Joe Deters has been outspoken about the situation.
In a news conference, Deters, who is a University of Cincinnati graduate, criticizes the UC police force:
"I graduated from UC twice, it's a wonderful university, I love their president, but they're not cops. And we have a great police department in Cincinnati, probably the best in Ohio. And I talked to the chief about it today, and I said 'you guys should be doing this stuff.' And I think he's in agreement with it.
"The university does a great job educating people, and they made a lawyer out of me, kinda, and that should be their job. Being police officers shouldn't be the role of this university. I don't think so. Now, they can interview these guys and I'm sure they have great cops in the university police department, but they should be held to the same standard, and if they were with the CPD, they would be held to the same standard in training CPD officers are. And I think it would be a good thing for the university."
Deters also says, "I've been doing this for over 30 years. This is the most asinine act I've ever seen a police officer make. Totally unwarranted. It's an absolute tragedy in the year 2015 that anyone would behave in this manner. It was senseless, and I met with the family just moments ago. It's just horrible."
Nothing appears on UC's website, including "News," which is prominent on its home page.
Discussion Starters:
- Should UC post something on its website? If so, what and where should it be placed?
- Is Deters doing the right thing? What's the relationship between a city's and a university's police force?
Political Polls and Charts
Ah, politics and polling. The media loves to report every data point, but now we have an example of a misleading poll. People have been surprised that Donald Trump, Republican presidential candidate, hasn't taken more of a hit after his comment about Senator John McCain. Trump said, "He's a war hero because he was captured. I like people that weren't captured, OK?"
A New York Times article explains why Trump may still lead the Republican polls, although people are upset by the remark. One explanation is that poll reporting lags. We hear the results of polls days after they're taken. In the chart below, the article shows the results of Huffington Post and CNN polls as we saw them in the news, showing Trump's comments on July 18.
This second chart shows the results of polls the date they were taken:
Discussion Starters:
- How much do you think poll matter during an elective? How, if at all, do they influence you?
- What can be done to ensure that polls don't mislead the public? Consider the roles and responsibilities of news agencies.
"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?