Ad Agency CEO Resigns

In the midst of a discrimination lawsuit and evidence of sexist and racist behavior, the CEO of J. Walter Thompson has resigned. Founded in 1864, J. Walter Thompson is the fourth-largest agency in the world and was acquired in 2015 by WPP. 

In a highly publicized case, Erin Johnson, JWT's chief communications officer, accused CEO Gustavo Martinez of an "unending stream of racist and sexist comments as well as unwanted touching and other unlawful conduct." 

Alleged comments made by Martinez are shocking, so I won't quote them here, but you can read them for yourself if you're interested. 

WPP responded with a statement from Martinez: 

"I am aware of the allegations made against me by a J. Walter Thompson employee in a suit filed in New York Federal Court. I want to assure our clients and my colleagues that there is absolutely no truth to these outlandish allegations, and I am confident that this will be proven in court."

Johnson has a video of a May 2015 company meeting apparently showing Martinez making offensive comments, but his lawyers are trying to prevent this as evidence for the case, claiming it contains "highly confidential and proprietary" information.  

Image source.

Discussion Starters: 

• What else, if anything, should parent company WPP say at this time? 
• A lawsuit is usually an employee's last resort. How can employees subjected to discriminatory or harassing remarks address them internally? What is a company's responsibility in such situations? 

Carrier Layoff Video Goes Viral

In a video taken by a Carrier employee, we see bad news delivered first hand. An executive announces that the furnace and heating equipment factory will move to Mexico-eliminating 1,400 jobs at the Indianapolis plant.

Understandably, employees are upset. Represented by the United Steelworkers union, they receive good pay, including overtime. Employees seem to like working at the factory, despite long hours and what a New York Times article calls "painstaking work." As one employee said, "It's pretty cool working there. And when you do it for 60 hours a week, people are like family."

Akhil Johri, Carrier's CFO says that factory moves and job cuts "painful," but essential "for the long-term, competitive nature of the business and shareholder value creation. We feel good about being able to execute on that." The company is concerned that it will go the way of the auto industry, unable to compete with international manufacturers.

Robert McDonough, a senior executive at United Technologies (Carrier's parent company), said, "This was a really tough decision. This will have a real impact on folks we care about and this community. We're an American company, but we compete globally."

Still, UT promoted the decision during a recent meeting with shareholders and analysts, who typically react positively to such news. As the NY Times explains, 

"Wall Street is looking for United Technologies to post a 17 percent increase in earnings per share over the next two years, even though sales are expected to rise only 8 percent. Bridging that gap means cutting costs wherever savings can be found."

UT CEO Gregory J. Hayes is feeling the pressure of stock performance, and his 2015 bonus was cut by 50%. But, as article says, "with a total compensation package of $5.7 million, he made more last year than Carrier's factory workers could earn in several lifetimes."

Discussion Starters: 

• What's your view of the decision? Consider both UT and the employees' perspective. 
• Assess what we see of the Carrier meeting. How could the company have delivered the news differently? What, if anything, would change the employees' reactions? 

SeaWorld Ends Orca Breeding Program

SeaWorld is still trying to recover from the negative publicity from Blackfish, the 2013 documentary about orca whales in captivity. Now, the entertainment park has announced it will no longer breed orca whales. This is the biggest move since SeaWorld changed its shows, and it gives hope to animal rights activists. PETA tweeted about the decision as well as Ringling Brothers' decision to stop traveling with elephants in its circus. 

Slate is probably right. Pressure continues to mount on SeaWorld: ticket sales continue to decline, and corporations continue to pull partnerships. 

Although the reaction to the news is mostly positive, this still leaves current orcas in captivity, not living in the best conditions. But some experts say there's little other choice: whales bred in captivity cannot easily be released.  

Discussion Starters:

• Read SeaWorld's "5 Things You Need to Know. . ." Assess the content choices and approach. Who is the intended audience? Would they find this piece convincing? What questions might remain? 
• Should SeaWorld have made this decision long ago? Why or why not?

Wounded Warrior Project Exposed for Overspending

The Wounded Warrior Project, a not-for-profit organization that helps war veterans, is under fire for overspending. With 500 employees and $225 million raised in 2015, the organization seems, on surface, to be successful and doing good work. But its expenses show a different picture: 

• $250 million budgeted for soda and candy for its staff
• A CEO who was paid $470,000 a year
• Less than 60% of funds going to veterans (about 90% of top organizations' funds go to programming) 
• Lavish staff retreats, including one at a five-star resort that cost almost $1 million

The snack expenses have received particular attention. The budget was revealed in a senior executive's email about staff gaining weight. According to The Daily Best, "Emails reveal that the organization spent more than $46,000 on snacks at its Jacksonville, Florida, headquarters in summer 2015."

In addition, employees have been quoted saying the environment is like a "frat party" and that the outings aren't about team-building as claimed: "You don't learn anything about your teammates, you don't learn anything about how to better serve-you just have a good time at donors' expense, you have a good meal, and then everyone drinks."

Why hasn't this been reported sooner? According to another employee, the organization operates like a cult:

"It's a brainwashing, in essence… You need to be quiet, do what you're told, drink the Kool-Aid and parade around with that logo on. It's cult, it really is… it's like how you would train a monkey, if you do something give them a piece of candy-in this case you give them a T-shirt or a polo… it's extreme intimidation," 

According to The Times article, "At least half a dozen former employees said they were let go after raising questions about ineffective programs or spending."

No surprise, Wounded Warriors is also criticized for not meeting veterans' needs. Programming like cooking classes, yoga, hiking trips, and Lego clubs aren't that helpful. 

The CEO and COO have been ousted, and the board is trying to rebuild the organization. In a press release, management disputes many claims but admits, "The review also found that some policies, procedures and controls at WWP have not kept pace with the organization's rapid growth in recent years and are in need of strengthening."

Image source. 

Discussion Starters: 

• What do you think prevented employees from going to the press or other sources about Wounded Warriors' overspending? Even if jobs are threatened, we do have whistleblower laws to protect people. 
• In addition to the press release, what should Wounded Warriors do to rebuild trust? Do you think the organization will be successful, or is it hopeless?
• Will employees have a difficult time finding a new job? How can they discuss their experience in a job interview?

GS and Barclays Emails to Staff

A Goldman Sachs partner wrote an email to junior staff that was intended to be motivational. BusinessInsider writes, "every young person on Wall Street should read it.

Presumably, the impetus was a lot of unhappy people because of the market conditions and several recent employee departures. The email includes big pictures and few words. This is the first screen of it, and here's the rest. 

According to BusinessInsider, "We're told that the associates love it and they're passing it around internally." 

When Googling to find the email, I came across this Barclays email to interns from last summer. I'm not sure how I missed it, but it's an incredible example of Wall Street culture and communication.

The Washington Post published the email, calling it "the latest cringeworthy Wall Street memo to interns." It included "Ten Commandments" for new interns, such as bringing a spare tie for associates, wearing a bow tie, being the last one to leave at night "no matter what," and bringing a pillow to work for sleeping under the desk. The second commandment sounded overriding: "Remember: this is a summer internship for a full-time offer. It won't be easy. If you can't handle the heat, get out of the kitchen."

The Post received this response from Barclays management: 

"This email communication was in no way authorized by Barclays. Barclays is fully committed to creating an environment where both our bankers and our business can thrive. We have implemented policies and training guidelines to enable employees to gain valuable experience while at the same time maintaining a healthy work-life balance."

Discussion Starters: 

• Do you agree with BusinessInsider's assessment of the GS email? Why or why not? 
• What's your view of the large pictures? Do these help or detract from the written message? 
• How do you find the Barclays' "Ten Commandments" email? Does it match with your experience as an intern? 
• Discuss what may have happened internally at Barclays after The Washington Post published the email. Should intern managers have leeway in what they communicate to interns, or should their communication be held more tightly? 

250 Men's Wearhouse and Jos. A. Bank Stores to Close

Tailored Brands has announced the closing of about 250 Men's Wearhouse and Jos. A Bank stores. The men's clothing stores aren't producing expected profits, and a recent change worsened the situation. Jos. A Bank held a "buy-one-get-three-free" promotion for years, which annoyed consumers, but eliminating the sales strategy lost comparable-store sales 14.6%. 

In a press release on its website, Tailored Brands explained the decision with quotations from CEO Doug Ewert.

"While our fourth quarter and full year results were consistent with our revised guidance, we remain very disappointed by the weak Jos. A. Bank results.  Our transition away from unsustainable promotions has proven significantly more difficult and expensive than we expected.  We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business. Additionally, our Men's Wearhouse, Moores, and K&G brands continue to perform well, with profitability in line or ahead of our expectations. . . . 

As part of our store rationalization program we plan to close approximately 250 stores during fiscal year 2016. The store closures fall into three categories. First, we expect to close 80 to 90 full-line Jos. A. Bank stores which we believe have limited potential for meaningful profit improvement. Second, we will close all Jos. A. Bank (49) and Men's Wearhouse (9) outlet stores. We have determined that outlet stores, which collectively were not profitable, are not sufficiently differentiated enough from our core offerings and have not resonated with our customers. Lastly, we intend to close between 100 and 110 MW Tux stores. These closings are a continuation of our strategy of migrating tuxedo rentals to full line stores and reflective of our new partnership with Macy's, Tuxedo Shop @ Macy's.  We have refined our Tuxedo Shop @ Macy's rollout schedule and now plan to open 166 stores in 2016 with the balance of 122 stores to be opened in 2017."

Ewert did express his confidence in the remaining stores: "We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business."

Discussion Starters: 

• Analyze the company's statement. Looking at the organization, style, tone, and so on, which principles of business writing are followed, and which are not?
• How will employees react to this news, particularly after the decision to end the suit promotion?

Zuckerberg Calls Out Employee About #AllLivesMatter

CEO Mark Zuckerberg isn't pleased with the Facebook employee who crossed out "Black Lives Matter" and wrote "All Lives Matter" on the company's graffiti wall. In an internal message to staff, Zuckerberg called the action "disrespectful" and "malicious." 

 

MPK refers to the company's Menlo Park, California, office. Overall, two percent of the company's employees are Black, and I'm sure this incident won't help with their recruiting efforts. The tech industry statistics, according to USA Today, are worse:

A fraction of the tech work force in Silicon Valley is African American and little progress has been made on  the problem. Only 1% of venture-capital-backed start-ups are led by African-Americans and less than 1% of general partners at major venture capital firms in Silicon Valley, the ones that back tomorrow's Facebooks and Googles, are African American.

The predominantly white male industry runs the risk of losing touch with the diverse nation - and world - that forms its customer base. At the same time African Americans are being excluded from the fastest-growing, highest-paying jobs in the nation.

The graffiti wall is an open space for employees to write anything-and yet, crossing out another's writing makes a statement in itself. Zuckerberg is taking a positive approach by inviting employees to learn more about the #BlackLivesMatter movement. 

Image source. 

Discussion Starters: 

• Explain the issue as you understand it. What are #BlackLivesMatter and #AllLivesMatter?
• What's your view of Zuckerberg's reaction and message to staff? 
• The company may find out who changed the marking, What, if any, action is appropriate to take against the employee?

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?