Sponsor Trouble for Maria Sharapova

Russian Tennis star Maria Sharapova is in a tough spot. She admitted that she failed a drug test and has taken "full responsibility" for it. 

Sharapova said she was taking Meldonium, a medication for heart disease, which was added to the list of banned substances this year. She also said that the medication goes by another name, which she didn't know: "It is very important for you to understand that for 10 years this medicine was not on WADA's banned list, and I had been legally taking the medicine. But on January the first, the rules have changed." She also said, "I made a huge mistake. I let my fans down and I let the sport down."

But did she have to call the hotel's carpet "ugly"? 

Although her admission and apology are clear, her sponsors don't want to wait for more news. Nike issued this statement: "We are saddened and surprised by the news about Maria Sharapova. We have decided to suspend our relationship with Maria while the investigation continues. We will continue to monitor the situation." Tag Heuer and Porsche also cancelled contracts, with the former explaining, "We had been in talks to extend our collaboration. In view of the current situation, the brand has decided not to renew the contract with Sharapova."

As of today, Nike's website page, "Maria Sharapova News" shows positive stories about the star and no mention of the decision. 

Discussion Starters: 

• How well is Sharapova handling the situation? Assess the news conference. 
• Did Nike, Tag Heuer, and Porsche do the right thing? What pressures are on the sponsoring companies?

Criticism of Law Schools' Graduation Data

A 2008 graduate of Thomas Jefferson School of Law is suing the institution for luring students to enroll by using false post-graduation data. Anna Alaburda's claim is one of 15 similar suits, although all but two have been dropped or dismissed.

Alaburda has $170,000 worth of student debt and has not found a full-time job in law since her graduation. Students' claims are that law schools include jobs such as part-time waitressing in their employment stats, inflating their placement rates. According to an article in The New York Times, 

"Law schools labor to keep their employment data at the highest percentage level because it is a major factor in national law school rankings, which in turn give schools the credibility to charge six figures for a three-year legal education."

Since the charges, the American Bar Association has required law schools to give more information. On its website, you can download detailed statistics from all schools.

Overall, according to the National Association for Law Placement, rates have increased, but class size is shrinking, so it's tough to draw conclusions.

Discussion Starters: 

• What is a law school's responsibility to share placement rates with prospective students? How does it balance honesty with recruiting targets?
• How would you make a decision about whether to attend law school-or a particular school? What data would be important for you to consider?

Whole Foods' Orange Controversy

Whole Foods is selling pre-peeled, plastic-packaged oranges and has been criticized for it. The company touts sustainability measures, including, according to its mission statement, "reduced or reusable packaging, as well as encouraging shoppers to reduce waste through our 'nickel per bag' rebate program."

The tweet, at left, shows the company's decision, and a representative told Huffington Post, "a lot of our customers love the convenience of our cut produce offerings, but this was a simple case where a handful of stores experimented with a seasonal product spotlight that wasn't fully thought through. We're glad some customers pointed it out so we could take a closer look."

But people didn't like the decision to pull the oranges either. Some said they were useful for people with arthritis and other physical limitations. 

Whole Foods is struggling because of lower-cost organic sellers, such as Costco. Last year, the company was criticized for selling asparagus spears in a bottle of water for $5.99. This product was also pulled.

Discussion Starters: 

• What's your view of the pre-packaged orange? Is this a good product, does it contradict Whole Foods' mission, or both? 
• Did Whole Foods act hastily in pulling the product? Consider the company's decision process. 

The Republicans' 11th Debate

Insults flew during what theSkimm called the "1,000,000th GOP debate." Hosted by Fox News, the debate included the last four standing candidates: Donald Trump, Ted Cruz, Marco Rubio, and John Kasich. Here's part 1:

After Trump's boycott of the previous debate, he and moderator Megyn Kelly started out on a better note:

"Mr. Trump. Hi. How are you doing?" Kelly said.

"Hi Megyn. You're looking well," Trump said.

BusinessInsider listed a few highlights of the debate, which I appreciate because I don't have the stomach for barbs about hair styles and body parts. Some clips relevant to communication follow:

9:18 p.m. EST - Trump dodged a question from Wallace about why some of his clothing line was made in Mexico instead of the US. Instead, Trump went after Rubio's assertion that the former reality-television star inherited $200 million from his father.

"This little guy has lied so much about my record," Trump said.

9:21 p.m. EST - Rubio slammed Trump for resorting to ad hominem attacks instead of addressing questions about policy. 

"You see what happens again when you challenge him on a policy issue?" Rubio said. "You ask him about economic issues, and he the first thing he does is launch into this thing about 'little Marco.'"

"He doesn't have answers and he's asking to be president of the United States."

10:23 p.m. EST -Rubio criticized Democrats for "politicizing" the water crisis in Flint, Michigan.

"The politicizing of it is unfair," Rubio said of the water crisis. "Because I don't think someone woke up some morning and said 'Let's poison people.'"

Discussion Starters:

• Assess the three examples above. How well did the candidates respond to the question or handle the issue?
• What do you consider to be the high points-and low points-of the debate?
• Who do you think "won" the debate?
• What, if any, influence will this debate have on the rest of the primary elections?

Snapchat Responds to Phising Scam

A Snapchat employee accidentally sent employees' personal information outside the company, and it has caused embarrassment. Snapchat has faced privacy concerns in the past, and now its own employees may question the company's security. 

The employee responded to a fake email that looked like it came from CEO Evan Spiegel. This is a common phising scam, which according to the Federal Trade Commission (FTC), is when "internet fraudsters impersonate a business to trick you into giving out your personal information." The FTC gives these examples of phising emails; we have all seen something similar:

• "We suspect an unauthorized transaction on your account. To ensure that your account is not compromised, please click the link below and confirm your identity."
• "During our regular verification of accounts, we couldn't verify your information. Please click here to update and verify your information."
• "Our records indicate that your account was overcharged. You must call us within 7 days to receive your refund."

Snapchat responded with an apology to its employees, posted on its blog: 

Discussion Starters: 

• What are some clues that an email address is fake? 
• Assess Snapchat's apology: word choice, tone, content, organization, and so on. 

Awkward Moment During VW Presentation

A protester didn't help Volkswagen's image during a press conference at the Geneva Motor Show. Dressed in a VW uniform, comedian Simon Brodkin got on stage to place a fake "cheat box" under the car while board member Jürgen Stackmann was speaking.  

Stackmann was in a tough spot and said "Thank you" repeated and awkwardly tried to escort Brodkin away from the car.

This isn't the first time Brodkin pulled a prank. During a FIFA press conference, he threw $600 in bills at President Sepp Blatter. After that stunt, Swiss authorities charged Brodkin with trespassing. 

Discussion Starters: 

• What's your view of Brodkin's antics? Is his approach more productive, disruptive, or destructive? 
• How well did Stackmann handle the incident? What could he have done differently? 

Clinton's "Abuela" Campaign Isn't Working Well

As of now, Hillary Clinton faces two Latino Republican adversaries: Ted Cruz and Marco Rubio. Of course, both are behind Trump in the polls, but anything can happen. PewResearchCenter reports more than 25 million eligible Latino voters, and Clinton is trying to reach them. 

A post on her campaign site is titled, "7 Things Hillary Clinton Has in Common with Your Abuela." The list includes worrying about children, knowing what's best, and highlighting accomplishments.

Clinton is a new grandmother, so the analogy may be fitting, but the post, sprinkled with Spanish words like "Respecto" and memes, is called "Hispandering" by some of the people she's trying to attract. In response, #NotMyAbuela began trending on Twitter.

 

The post isn't in Clinton's usual style, and maybe it's sloppy: the URL title says "8 ways," but somehow, only seven made it to the list.

Discussion Starters:

• Did Clinton misstep with this campaign? Should she do anything in response?
• What should she do to reach Latino voters? Is it hopeless?

Chris Rock: It's About Opportunity

Chris Rock didn't disappoint as the host of this year's Academy Awards. His monologue focused on the question of racism, as expected for the second-year-in-row, all-white slate of nominees. 

Early on, Rock welcomed the crowd to the ceremony, "otherwise known as the White People's Choice awards." He also addressed his own critics directly by explaining why he didn't boycott. He concluded that the issue is about fairness: "We want opportunity. We want the black actors to get the same opportunities as white actors. That's it." 

In addition to the ten-minute monologue, jokes and parodies about #OscarsSoWhite continued throughout the night from Rock and other actors.

As the cameras panned the audience, we saw some awkward reactions. People seemed uncomfortable with some of the jokes, not quite sure whether they were funny or whether they should laugh.

One joke, about Asians, didn't go over well at all. Rock introduced "accountants" to the stage: three Asian children (one with a Jewish surname), dressed in suits. Mee Moua, of Asian Americans Advancing Justice, explained,

"Last night's ceremony, and particularly the 'joke' involving Asian children, which played off more than one damaging stereotype of Asians and Asian Americans, exposed one of the failings of how we talk about race in America: race relations are not a black-white binary," she said.

"It is to all of our detriment to look at race narrowly. We need to work together to dismantle the systems that devalue the experiences of minority groups so we can see the tales of the diversity that have shaped our nation reflected accurately."

Actress Constance Wu also weighed in.

Discussion Starters:

• What, if any, impact do you think Rock's performance will have on the Academy?
• What's your view of the accountant joke?
• How do you explain the audience's reactions at times? Consider how actors responded to some of the jokes.

LinkedIn's First TV Ad

We'll see the first LinkedIn TV ad during this year's Oscars. The company decided to use a space theme for the commercial partly because of a successful NASA recruiting campaign on the platform. "We saw the astronaut as a universal symbol of the dream job and anchoring the campaign around that story would bring it to life," said Nick Bartle, vice president of marketing. With The Martian receiving nominations for best picture and best lead actor, the ad fits the awards ceremony well. 

Bartle also explained the company's hope in producing the ad:

 "'You're Closer Than You Think' is LinkedIn's first-ever integrated marketing campaign and TV spot that's inspired by LinkedIn's vision to create economic opportunity for the global workforce. We want this to permeate in everything we do, including helping our members find jobs, learn from influential people, build their professional brand and connect with people who can make a difference in their path."

The voice over, LinkedIn's CEO Jeff Weiner, personalizes the ad with a story about his father. 

Discussion Starters: 

• Why do you think LinkedIn waited until now to produce a TV ad? 
• What's your view of the ad? Is this the right audience, and do you find it effective?

SeaWorld Behaved Badly

Readers of BizCom in the News know I have a keen interest in SeaWorld, particularly after the documentary Blackfish revealed poor treatment of orcas, which has caused trainer injuries and deaths. I wrote a short case, "SeaWorld's Response to Blackfish" (and corresponding assignment), and have had Samantha Berg, a former SeaWorld trainer profiled in the movie (and a Cornell Veterinary College graduate) guest speak in my Corporate Communication class. As a crisis communication situation, the entertainment company did horribly, offering little response as criticism on social media was mounting.

Now SeaWorld executives admit to having employees pose as animal rights activists to understand their strategy. Desperate times lead to desperate measures. The company has suffered financially and, last week, announced changes at the executive level. People for the Ethical Treatment of Animals (PETA) Executive Vice President Tracy Reiman said, "The tawdry orca sideshows and despicable spying tactics are sinking SeaWorld's ship." 

On its website, SeaWorld admitted the deception under a broader statement about security and risk management:

SeaWorld to strengthen company's security and risk management

February 25, 2016

During its earnings call today, SeaWorld announced that its Board of Directors is taking steps to strengthen the company's security and risk management policies and controls. Following the completion of an investigation conducted by independent outside counsel, the Board has directed that the company's management team end a practice in which certain employees posed as animal rights activists in connection with efforts to maintain the safety and security of company employees, customers, and animals in the face of credible threats that the company had received. The Board also has directed the company's management team to strengthen oversight and controls to guide operations and security practices. SeaWorld has retained Freeh Group International Solutions, LLC to evaluate current controls and develop new policies and standards to ensure best practices company-wide.

All personnel matters pertaining to those involved have been handled internally. That said, Mr. McComb remains an employee of SeaWorld, has returned to work at SeaWorld in a different department and is no longer on administrative leave.

"We recognize the need to ensure that all of our security and other activities align with our core values and ethical standards. As always, the security and well-being of our employees, customers and animals remain at the forefront of our business practices," said Joel Manby, President and Chief Executive Officer of SeaWorld Entertainment, Inc.

The report contains confidential business information related to the company's security practices. The company will not comment beyond this statement.

Image source.

Discussion Starters:

• What should SeaWorld do now to try to protect what's left of its brand image?
• Assess the statement above. How well does the company handle the admission?

Facebook's Reactions

Today, Facebook finally rolled out its new Reactions, a broader array of symbols to complement the traditional "like" button. The six new emojis let us express more refined feelings, such as love, laughter, sadness, and anger, and they are animated.

The selections took Facebook a while. After user testing, the company settled on these six winners and decided how to represent them on a page. Too many cluttered posts, but too few got lost. Instead, the three most common reactions to posts will appear below each.

Quoted in Wired, Vyvyan Evans, a professor of linguistics at Bangor University said, "The stratospheric rise of emoji is essentially fulfilling the function of nonverbal cues in spoken communication." We miss, for example, facial expressions and gestures in Facebook posts and text messages, so emojis help us express our feelings.

Chevrolet seems first out of the gate to use the new Reactions in an ad. In this commercial, the company tells us, "Chevrolet looked out into a sea of likes and thought the time was right to love. Introducing the new Chevy Malibu. Start Loving."

Discussion Starters:

• Do you love the new emojis, or do they make you sad or angry?
• What downsides do see for Facebook to expand the options?

Uber Responds to Shooting Incident

Uber is responding to a shooting incident with one of its drivers, who killed six people and wounded two in Kalamazoo, Michigan. The company's safety procedures are in question, but the incident had nothing to do with the shooter's role as an Uber driver, although this connection is how he's most identified in news reports. The company published the following short statement on its website.

In response to further questioning, Uber says the gunman passed its background checks, had no criminal record, and received customer ratings of 4.73 out of 5. He had been an Uber driver for almost a month and picked up more than 100 passengers.

Under "Details on Safety" on its website, Uber describes its driver-checking process. One criticism is that fingerprinting isn't required, as it is for taxi and limousine drivers. Also, unlike taxi drivers, there is little interaction with others. The founder of an app that lets Uber and Lyft drivers chat said, "I think taxi drivers traditionally have had fleets and lots, so at the beginning of the shift, you will go, check in with a dispatcher, hang out, have a coffee with other taxi drivers and then go out - rather than this completely dispersed Uber network, where you don't have to go anywhere, you just turn on the app in your car and drive for eight hours and never talk to any other driver."

But a member of Uber's Safety Advisory Board defending the company  practice: "As it stands right now, the system that Uber has is extremely safe, and the idea that simply by having someone look at someone that they could determine if they're about to have a psychotic episode is a faulty theory."

This news comes soon after Uber settled a lawsuit about safety claims.

Discussion Starters:

• What's your view of the link between Uber and the shooting? Is it unfair to the company or about time its safety practices are revealed (or something else)?
• How else, if at all, should Uber respond? What's the danger of responding too loudly in this case?

Yelp Manages Open Letter from Employee

Yelp is in the news for an employee's angry "open letter" about pay. She describes how she's suffering financially and blames the company for not paying a living wage.  

The company issued this statement to Business Insider:

We do not comment on personnel issues. However, we did agree with many of the points in Ms. Jane's post and we viewed it as her real, personal narrative about what it's like to live in the Bay Area. Most importantly, it's an important example of freedom of speech.

We agree with her comments about the high costs of living in San Francisco, which is why we announced in December that we are expanding our Eat24 customer support team into our Phoenix office where will pay the same wage.

Yelp CEO Jeremy Stoppelman also responded on Twitter, shown here. As you see from tweet 3/5, the employee was fired, which didn't inspire goodwill.  

The employee continued tweeting after her termination.

Discussion Starters:

• Should the employee have voiced her concerns in a different medium? Consider her goal, the ethics, and the result.
• Read the employee's letter. How well does she convey her argument?
• How well did Yelp handle the situation? What, if anything, should the company have done differently?

The Perfect Email Is 50 - 125 Words

The email productivity company Boomerang researched which emails are most likely to get quick responses, and the winners are between 50 and 125 words. According to the study, "a 25-word email works about as well as a 2000-word one, with only a 44% chance of getting a response."

By analyzing more than 5.3 million messages, Boomerang identified other features of successful emails. The company does acknowledge that these guidelines may not be best in every situation. Of course, your audience and the context always trump averages, but when in doubt...

• Write at a third-grade reading level. Use simple words and short sentences. 
• Use a tone that's slightly negative or positive, rather than neutral. 
• Use 3- or 4-word subject lines.
• Include 1-to-3 questions for a 50% higher response rate.
• Send your email early in the morning or during lunch. 

The company experimented with interesting versions of emails for dating and criticism. See whether you can guess which were most successful. 

Boomerang can be useful in managing messages. You can schedule when emails go out and receive reminders from the software.  

Discussion Starters: 

• How does this research match your own experience? Does anything surprise you? 
• How would emails to your manager, for example, differ from these guidelines? 

More Homes People Can't Afford

Did we not learn our lesson from the 2007 - 2008 financial crisis? A new "opportunity" exists for people with low-incomes to own a home, but of course, it comes will some big catches. 

Investors bought dozes of vacant, dilapidated homes around the country and are selling them with a "contract for deed, or land contract." These include high-interest loans, which are difficult to pay as is, but pile on the need to fix major problems like mold, plumbing, and electric, and people are likely to default. One homeowner, who lives on a disability check, said, "It's like one thing after another is falling apart." 

No surprise, the Akron, Ohio, housing administrator said that firms are targeting people "who do not have the financial ability to comply, nor the savvy to realize that they are being taken advantage of."

The contracts are a confusing mess. One posted on The New York Times' website is 109 pages long. 

Sadly, this reminds me of a scene in The Jungle.

Discussion Starters:  

• What lessons should we have learned from the financial crisis?
• What are the communication responsibilities and barriers in these situation? Identify both for the investors and buyers. 

Uber Pays $28M and Adjusts Safety Language

Uber has settled two lawsuits claiming the company misled consumers about safety. Charging a $2.30 fee, Uber promised to do background checks of its drivers, but the company failed to do the type of fingerprinting required for taxi drivers.

As part of the settlement, Uber will change some language in its promotions: the "Safe Ride Fee" will now be called a "Booking Fee."

In a statement, Uber reinforces its rationale for assuring passengers of safety but admits, "no means of transportation can ever be 100 percent safe. Accidents and incidents do happen." 

Discussion Starters:

• How, if at all, will the language change and financial settlement affect passengers? 
• How well does Uber explain the settlement? Of course, the company tries to spin the news positively. Does it succeed? 

Nike Ends Relationship with Manny Pacquiao

Boxer Manny Pacquiao made derogatory comments about same-sex couples and lost his eight-year endorsement deal with Nike. On a Filipino television program, Pacquiao said. "If you have male-to-male or female-to-female [relationships], then people are worse than animals." He was explaining why he opposed same-sex marriage. 

Nike issued this statement: "We find Manny Pacquiao's comments abhorrent. Nike strongly opposes discrimination of any kind and has a long history of supporting and standing up for the rights of the LGBT community." 

In a video posted on Twitter and Instagram, Pacquiao apologized. 

According to ESPN, Pacquiao has a history of anti-gay sentiment: 

This week wasn't the first time Pacquiao has been involved in a furor over gay rights. In 2012 he was quoted as saying he was against same-sex marriage because "it's the law of God," though he denied implying that homosexuals should be put to death.

Discussion Starters: 

• Assess Pacquiao's video: do you find his statement and body language convincing? 
• Did Nike do the right thing? Discuss pros and cons of the decision. 

Apples Fights FBI's Demands

This is a pivotal moment in privacy for the country. Apple is under pressure from the Federal Bureau of Investigations and the Justice Department for access to phones belonging to shooters who killed 14 people in San Bernardino, California, late last year.

Tensions are high in this situation. The Justice Department said, "It is unfortunate that Apple continues to refuse to assist the department in obtaining access to the phone of one of the terrorists involved in a major terror attack on U.S. soil."

But Apple and civil liberties organizations argue that this could set a bad precedent against consumer privacy. The company would need to develop new technology that could be used in other situations. In a statement, CEO Tim Cook said, "The government suggests this tool could only be used once, on one phone. But that's simply not true. Once created, the technique could be used over and over again, on any number of devices."

A message to customers on Apple's website further explains the company's position:

The government would have us remove security features and add new capabilities to the operating system, allowing a passcode to be input electronically. This would make it easier to unlock an iPhone by "brute force," trying thousands or millions of combinations with the speed of a modern computer.

The implications of the government's demands are chilling. If the government can use the All Writs Act to make it easier to unlock your iPhone, it would have the power to reach into anyone's device to capture their data. The government could extend this breach of privacy and demand that Apple build surveillance software to intercept your messages, access your health records or financial data, track your location, or even access your phone's microphone or camera without your knowledge. 

Discussion Starters:

• What's your view? Should Apple meet the government's demands? What are the most convincing arguments on both sides?
• Read Cook's entire message to customers. How does he balance logical arguments, emotional appeal, and credibility?

Another IRS Data Breach

This is the second time the IRS has experienced a data breach. Hackers used social security information to create PINs for E-filing, which could allow them to capture tax refunds for 101,000 people.  

In a statement posted on its website, the IRS tries to deflect the issue: "Using personal data stolen elsewhere outside the IRS..."

 

Last year, hackers made away with $50 million in refund money. A federal investigative report concluded: "The Return Review Program Enhances the Identification of Fraud; However, System Security Needs Improvement." 

Discussion Starters: 

• How well does the IRS statement rebuild taxpayer confidence? 
• Read the 2015 report. Which principles from Chapter 10 are followed? Based on the report, should the IRS have done more in the past year? 

How to Communicate with College Applicants

A new survey could help college admissions officers reach applicants. A Chronicle of Higher Education article describes the results as "complicated," but I think most students would say they make perfect sense. Students want to receive texts for timely information, such as application deadlines and events, but they don't want general information blasts. Students are also open to one-on-one texts with admissions counselors. 

Differences among students may show their willingness for assistance. First-generation, low-income, and underrepresented minority students were more open to receiving texts. 

When asked which communication channels were helpful, students rated letters 46%, emails 65%, and the college website 52%.  

Image source.

Discussion Starters: 

• What about the survey results, if anything, surprises you? 
• How do you think the results may have changed in the past 5 years? 10 years? 
• What should admissions officers do with this information? 
• How well does this work as an infographic? Compare the image to principles in Chapter 9.