Profile of a Wells Fargo Whistleblower

Duke Tran was a Khmer Rouge slave in Cambodia when he was 17 years old, but he made his way to the United States and eventually landed a job at Wells Faro. At some point, Tran received phone calls from customers about large payments due on loans ($90,000 and $165,000). In both cases, the customers said they didn't have a loan with the bank, and Tran couldn't find any documentation. When Tran asked his supervisor what to do, he was told, "It’s no problem. If the customer calls back, you tell them it’s a balloon [due all at once]." Tran refused to lie to the customers and got fired: “I told him this is a fraud. I cannot be a part of that. He got upset."

This is one of many stories of retaliation against whistleblowers at the company, but Tran persisted. Rather than fight for his job back, Tran wanted the bank to admit wrongdoing. A New York Times article describes what Tran went through:

To further his lawsuit, he opened his life to intense scrutiny, used vacation time at his new job to attend meetings and court dates, and told and retold the story of his experiences at the bank, which maintained that Mr. Tran had been fired for poor performance and that there had been no cover-up of missing documents. He would not go away. . .

He couldn’t sleep. He couldn’t bring himself to tell his wife, Ann, and their sons, Justin and Jimmy, that he had been fired. When they asked why he wasn’t going to work in the mornings, Mr. Tran said he was on vacation. When that excuse no longer seemed plausible, he invented another.

“I thought, my God, I’ve lost my American dream,” he said.

His wife worked in a dental equipment factory. She earned $17 per hour, and it was suddenly the family’s only income.

Although he didn't want to, Tran eventually settled for what is estimated to be "seven figures."

Cover image source. Page image source.

Discussion:

• Which character dimensions does Tran most demonstrate?
• When have you been in a situation where you had to decide whether to speak out against a company practice? What was your decision process? How did it turn out?
• HR told Tran he was fired for not responding to a customer whose call he had taken. How is this problematic?

More Companies Take Action to Curb Gun Sales

Dick's Sporting Goods has taken a strong stance on gun control. In a statement, the company announced it will no longer sell assault-style rifles and will no longer sell firearms to people under 21 years of age. The statement dances the fine line between both sides of the gun control debate:

We support and respect the Second Amendment, and we recognize and appreciate that the vast majority of gun owners in this country are responsible, law-abiding citizens. But we have to help solve the problem that’s in front of us. Gun violence is an epidemic that’s taking the lives of too many people, including the brightest hope for the future of America – our kids.

Walmart also announced it will no longer sell to people under 21 years of age. The company ended some firearm sales in 2015, so this policy further restricts what people can purchase when.

Companies are in a tough spot. Dicks, Walmart, Delta, and other companies have suffered backlash for their decisions, including people promising to boycott.

Discussion:

• Compare Dick's and Walmart's statements. How do they differ? Which is more effective and why?
• Describe Dick's choices. What are the risks and rewards of the announcement?
• Should other CEOs jump into the controversy? How might the decision depend on industry, customer base, or the leader him- or herself?

Companies Distance Themselves from the NRA

Following the school shooting in Florida, several companies are distancing themselves from the National Rifle Association. The organization lists many member benefits on its website, including travel and insurance discounts, but these are shrinking as more companies are discontinuing services.

For example, several major car rental companies—Enterprise Rent-A-Car, Alamo Rent a Car, National Car Rental, Avis, Budget, and Hertz—and major airlines, such as United Air Lines and Delta, will eliminate discounts for NRA members.

The NRA posted a statement on its website to deflect blame, reinforce its mission, and deny the impact of these companies' actions:

FAIRFAX, VA – The more than five million law-abiding members of the National Rifle Association have enjoyed discounts and cost-saving programs from many American corporations that have partnered with the NRA to expand member benefits. 

Since the tragedy in Parkland, Florida, a number of companies have decided to sever their relationship with the NRA, in an effort to punish our members who are doctors, farmers, law enforcement officers, fire fighters, nurses, shop owners and school teachers that live in every American community.  We are men and women who represent every American ethnic group, every one of the world’s religions and every form of political commitment.

The law-abiding members of the NRA had nothing at all to do with the failure of that school’s security preparedness, the failure of America’s mental health system, the failure of the National Instant Check System or the cruel failures of both federal and local law enforcement.

Despite that, some corporations have decided to punish NRA membership in a shameful display of political and civic cowardice.  In time, these brands will be replaced by others who recognize that patriotism and determined commitment to Constitutional freedoms are characteristics of a marketplace they very much want to serve.

Let it be absolutely clear. The loss of a discount will neither scare nor distract one single NRA member from our mission to stand and defend the individual freedoms that have always made America the greatest nation in the world.

Discussion:

• Did these companies make the right decision? Some NRA members are boycotting them as a result.
• In its statement, the NRA refers to companies' "shameful display of political and civic cowardice." Do you see their actions as cowardice, courageous, or something else? What is the difference?

NYU Criticized for Racially Insensitive Menu Items

One of the NYU dining halls created new menu items to observe Black History Month. Unfortunately, the items reinforced racial stereotypes and weren't well received, according to a New York Times report:

"Barbecue ribs, corn bread, collard greens, and two beverages with racist connotations: Kool-Aid and watermelon-flavored water."

After a sophomore, Nia Harris, complained about the menu and didn't get a satisfying response, she wrote an email calling the decision "racially insensitive" and "just ignorant." She described her perspective and experience in a Facebook post:

Harris seems more concerned about the failed response than the initial decision to create the menu. Clearly, staff members could have handled this situation differently.

Later, the university did respond, including statements from Aramark to which dining at NYU is outsourced.

Discussion:

• Describe Harris's point of view. What were the university's missteps in this situation? Why do you think Harris didn't get a better response?
• Assess the university's response. They blame Aramark. Is that appropriate in this case? Why or why not?
• Now assess Aramark's two statements. How well does the company address the criticism?

Students Fight for Gun Control

After the school shooting that killed 17 people in Florida, students across the country are protesting for tighter gun control laws. High schoolers left their classes to confront politicians on their failure to change laws and for taking money from the National Rifle Association. Delaney Tarr was one of the vocal students:

"We've had enough of thoughts and prayers. ... If you supported us you would have made a change long ago and you would be making change now. So this is to every law maker out there. No longer can you take money from the NRA ... because we are coming after you."

Adding fuel to the controversy, some GOP members have accused students of being hired actors. Rep. Daryl Metcalfe criticized the protests:

“This morning I was working out and listening to the news about ‘students’ being bussed in to the Florida Capitol. The hypocrisy of the left struck me! They expect lawmakers to listen to the policy advice of 18 year old and younger ‘students’ who are advocating for gun control, but they do not believe 18 year olds who are old enough to serve on the battlefields of Afghanistan are old enough to purchase a rifle.”

Other Republicans, such as Marco Rubio, contradicted such messages, calling claims that students are actors “the work of a disgusting group of idiots with no sense of decency.”

Image source.

Discussion:

• In what ways are students demonstrating courage? What obstacles do they face as they protest for greater gun control?
• Assess students' messaging. How do they balance emotional appeals and logical arguments? Which are most effective in this situation?
• What do Republicans want from this controversy? In other words, what are these lawmakers' interests? How do their criticisms of the students help or hurt their case?

Merck CEO Explains His Decision to Speak Out Against President Trump

Merck CEO Ken Frazier was the first to speak out after hearing President Trump's response to the violence in Charlottesville, VA. He left the President's American Manufacturing Council and started a trend for others to follow. In a recent New York Times interview, Frazier explains his decision:

“In that moment, the president’s response was one that I felt was not in concordance with my views. And I didn’t think they were in concordance with the views that we claim to hold as a country.”

“I wanted to say that this was a statement I was making in terms of my own values, and the company’s values, and there was unanimous support for that,” he said. “My board supported that 100 percent.”

In the interview, Frazier tells of another time he demonstrated courage—when he fought for the release of a man on death row.

Discussion:

• Explain what might be Frazier's decision process for leaving the council.
• Do you think he made the right decision? Why or why not?
• How does Frazier demonstrate courage?

News Conference About Florida Shooting

Officials have made statements about the school shooting in Parkland, Florida, that left 17 people dead and another 16 injured. Themes focus on healing—giving families and others affected time to mourn, charging the perpetrator, and preventing similar incidents from happening in the future.

As we typically see in these news conferences, multiple people give their perspective, and we may see the influence of their role and their personal views.

Political conversations about the FBI's role and gun control have already started. President Trump also made a statement after the tragedy.

Discussion:

• Analyze each person's contribution to the news conference. How do you see their role and their personal views affecting what they say and how they say it?
• What's your view about the political conversation: should we avoid talking about gun control now, or it this the best time? How do your own political views factor into your perspective?

Penn Removes Several Recognitions of Steve Wynn

For the first time in more than 100 years, the University of Pennsylvania has revoked an honorary degree. Following accusations of sexual misconduct against Steve Wynn, the trustees announced the revocation in addition to plans for removing Wynn's name from "Wynn Commons" and from a scholarship fund.

The message, sent by email and posted on the school's website, explained the decision and announced that an honorary degree for Bill Cosby also will be revoked. University leaders were careful to describe their decision process as well as the delay in revoking Cosby's degree. This is a good example of anticipating and addressing potential criticism.

Judging by comments on Twitter, reactions to the university's decision to take a stand seem to be neutral or positive.

Discussion:

• Did UPenn make the right decision? Why or why not?
• Analyze the message. What principles of business are followed, and how can the message be improved? Consider the audience analysis, organization, tone, and so on.
• How is this an example of courage? What risks does the university face?

Call for Gymnastics Board to Resign

As female athletes are recognized in a full-page newspaper ad for their courage in telling their stories of abuse, the U.S. Olympics CEO is calling for the entire USA Gymnastics board to resign by Wednesday.

In an open letter to Team USA Athletes, CEO Scott Blackman apologized and identified four next steps:

1. We Must Change the Culture of the Sport.
2. We Must Change the Governance Structure of the NGB.
3. We Must Know Who Knew What and When.
4. We Must Support Safe Sport Victims and Survivors.

Three members of the board already resigned, but critics say that is not enough. Blackman doesn't accuse any board members of knowing about abuse, but he says the culture must change and this is the best way to achieve that change.

Discussion:

• What is the value of asking for the entire board's resignation? What, perhaps, are the limitations?
• What should the board do?
• How else can Blackman and the rest of the Olympics Committee make athletes feel safe again?

MSU President's Resignation Letter

After calls for her resignation, Lou Anna Simon, the 13-year Michigan State University president submitted her letter. She could not escape criticism that she knew of Dr. Larry Nassar's sexual abuse of students and didn't do enough. Simons admitted encouraging an investigation and not receiving the final report. Reports also say that at least 14 university staff members received complaints about Nassar over two years.

Although most of the board initially supported her, students and others did not, and in the end, the board chair wrote, "We agree with Dr. Simon that it is now time for change."

Simon's letter is a mix of sympathy for the victims, love for the college, and defeat. In this paragraph, she focuses on blame:

As tragedies are politicized, blame is inevitable.  As president, it is only natural that I am the focus of this anger.  I understand, and that is why I have limited my personal statements.   Throughout my career, I have worked very hard to put Team MSU first.  Throughout my career, I have consistently and persistently spoken and worked on behalf of Team MSU.  I have tried to make it not about me.  I urge those who have supported my work to understand that I cannot make it about me now.  Therefore, I am tendering my resignation as president according to the terms of my employment agreement.

Discussion:

• Critics say Simon shifts accountability in her letter, particularly the paragraph above. What's your view?
• Did Simon make the right decision? Why or why not? 
• What should the university do to help the campus recover from this situation? How can they rebuild trust and make MSU feel like a safe place?

Calls for Michigan State President to Resign

Some believe it's a matter of integrity and accountability; others believe this will start the healing process. In addition to public demands, one Michigan State trustee says it's time for the university president to resign over Dr. Lawrence G. Nassar's sexual abuse of dozens of female athletes.

The rest of the university trustees have shown public support for the president, Lou Anna Simon. In a statement, they said, "President Simon is the right leader for the university, and she has our support." But the sole trustee, Mitch Lyons, disagrees:

“I don’t feel that President Simon can survive the public outcry that has been generated by this tragedy. I feel that our best recourse is for President Simon to resign immediately in order to allow the healing process to begin."

According to a Detriot News story, several university officials, including the president, heard complaints about Nassar. Simons admits, “I was informed that a sports medicine doctor was under investigation. I told people to play it straight up, and I did not receive a copy of the report. That’s the truth.” People question her judgment in not seeing the final report, particularly given the recent explosive case at Penn State University. We will see what happens next.

Image source.

Discussion:

• Should Simon resign? Why or why not?
• What does it take for Lyons to break rank with the rest of the trustees? How would you describe the possible dynamics on the board?
• How does such abuse go on for so long? About 140 women complained about Nassar when he was working with Olympic athletes, and at least eight students came forward at the Michigan State.
• At the end of the trustees' statement, a reporter asks, "Why no questions?" But the board leaves the room without saying anything. Should they have taken questions? Why or why not?

BlackRock Encourages "A Sense of Purpose"

BlackRock CEO Larry Fink is encouraging companies to be more socially responsible. In his annual letter, the investment firm CEO describes the increasing wealth disparity in the United States:

"We are seeing a paradox of high returns and high anxiety. Since the financial crisis, those with capital have reaped enormous benefits. At the same time, many individuals across the world are facing a combination of low rates, low wage growth, and inadequate retirement systems. Many don’t have the financial capacity, the resources, or the tools to save effectively; those who are invested are too often over-allocated to cash. For millions, the prospect of a secure retirement is slipping further and further away – especially among workers with less education, whose job security is increasingly tenuous. I believe these trends are a major source of the anxiety and polarization that we see across the world today."

Fink is encouraging more engagement of shareholders and a focus on creating long-term value:

"Companies must ask themselves: What role do we play in the community? How are we managing our impact on the environment? Are we working to create a diverse workforce? Are we adapting to technological change? Are we providing the retraining and opportunities that our employees and our business will need to adjust to an increasingly automated world? Are we using behavioral finance and other tools to prepare workers for retirement, so that they invest in a way that that will help them achieve their goals?"

But critics say Fink is overstepping. On Squawk Box, Sam Zell said, "I didn't know Larry Fink had been made God."

Discussion:

• What's your view of Fink's position? Is this a good idea, or should he keep his thoughts to himself?
• What are Fink's communication objectives, and how well does he meet them?
• Assess the letter in terms of organization and writing style.

How Does a White Supremacist Change?

Derek Black grew up in a prominent white supremacist family, but his views about race changed when he went to college and met people who cared to challenge him. The New York Times Daily Show rebroadcast an interview with Black, and we hear first-hand about his growing up and about his evolution. (Read the transcript.)

Black's father started Stormfront, a white nationalist website, and his godfather was David Duke, once a leader of the Ku Klux Klan. Black describes his family and friends as a close group, connected by a shared purpose. Although he says that his family doesn't single out individuals, they believe that IQ is linked to race, and that people of color are biologically inferior.

After spending time with Jewish people and comparing research, Black came to understand—over the course of a year—that his research was flawed. He now denounces the white supremacist movement.

Image source.

Discussion:

• How would you describe Black's transformation? What is significant about his development in terms of understanding cultural differences?
• Black wanted to stay in the background after his discovery, but he says he felt compelled to be more publicly vocal. What are the arguments for and against staying anonymous?
• Describe how Black demonstrates intellectual humility.

Morgan Spurlock Admits Sexual Misconduct

Documentarian Morgan Spurlock published an account of his sexual conduct, admitting, "I am part of the problem." He demonstrates vulnerability and describes a situation which a woman describes as rape. He also admits that he was "unfaithful to every wife and girlfriend I have ever had." Spurlock is the first public figure who admitted misconduct before he was accused.

His most famous movie was Super Size Me, which criticized McDonald's for unhealthy food. Super Size Me 2: Holy Chicken! was going to premiere at the Sundance Film Festival but will be withdrawn. In addition, Spurlock's production company, Warrior Poets, announced that he will step down:

On behalf of Warrior Poets, we as partners have always supported our company and its endeavors. As of today, Morgan Spurlock will be stepping down effective immediately.

We will continue to lead the company as equal partners, producing, distributing & creating from our independent production company.

Respectfully,
Co-Founder & Partner Jeremy Chilnick
and Partner Matthew Galkin

Discussion:

• What's your view of Spurlock's statement, which some call a "confessional"? Some consider it trite, while others applaud his openness.
• Was it best for Spurlock to step down from Warrier Poet? Why or why not?

Podcast About Using LinkedIn for Networking

In this 8-minute podcast, hear how Lizzie, a Cornell University student, musters up the courage to contact people on LinkedIn for informational interviews. Her message is shown here.

Amy Newman with Lizzie on LinkedIn

More Criticism for Starbucks' Coffee Cup

Starbucks' coffee cup isn't spared another year of criticism. In 2015, Donald Trump, before he was president, said the company participated in a "War on Christmas" because its cup was a solid red color with no Christmas symbols.

This year, the company is accused of having a "gay agenda." At one point during the promotional video, two women have their hands on a cup and are looking at each other. A company spokesperson said, "This year's hand-drawn cup features scenes of celebrating with loved ones-whoever they may be. We intentionally designed the cup so our customers can interpret it in their own way, adding their own color and illustrations."

A compilation of Starbucks Christmas coffee cups shows an interesting history. The first holiday cups, in 1997, were in four colors, none of which were red. Also, although this year's cup is identified as "not red," many of the drawings are red.

Starbucks is no stranger to controversy. During the political firestorm earlier this year, CEO Howard Schultz promised to hire 10,000 refugees by 2022.

Discussion:

• How do you interpret the coffee cup? What does it mean to you? Do you think Starbucks is trying to promote a "gay agenda"?
• This may be another example of "brand activism." Should Starbucks stay out of the fray or take a stand on some issues? What are the advantages and downsides of each approach?

Smashing Keurigs to Defend Roy Moore

People are posting videos of themselves destroying their Keurig coffee machines to protest the company's decision to pull advertising from Fox News because of an interview with Roy Moore. Moore, who is running for Senator for Alabama, has been accused of having sexual relations with a 14-year-old girl and other teenagers when he was in his 30s.

Sean Hannity interviewed Moore, and Keurig and other advertisers, including E-Trade, Realtor.com, ELOQUII, 23andMe, and Nature's Bounty, thought the interview was too light and let Moore off easily. Keurig CEO Bob Gamgort explained his reasoning in an email to employees including this excerpt:

"The catalyst for the current situation was commentary made by Sean Hannity on his TV and radio programs last week, which sparked a significant number of consumer complaints directed to us as advertisers on his TV program. Hannity himself later apologized for his comments in his own tweet: "As I said on TV tonight, I apologize when I misspoke and was not totally clear earlier today."

Hannity's conservative fans aren't happy with the decision.

UPDATE: Some advertisers deleted tweets, which does not reflect well on the brands.

Discussion:

• Assess the CEO's full email to employees. Analyze his audience and communication objectives. How well does he explain the situation?
• In what ways is this an issue of integrity for multiple people involved?

Apologies from Louis C.K. and His Former Manager

After several women told similar stories about Louis C.K.'s sexual misconduct, the comedian wrote a statement (NSFW). Some appreciate Louis C.K.'s taking responsibility and consider it a far better response than we have seen from Harvey Weinstein or Kevin Spacey. Others think the statement fell short, particularly because he didn't use the words "I'm sorry" or "I apologize."

Quartz published an edited version of the statement, criticizing Louis C.K. for emphasizing how much he's admired rather than how sorry he is.

Meanwhile, Louis C.K.'s manager, Dave Becky, ended their relationship and wrote his own statement:

"I profoundly regret and am deeply sorry for not listening to and not understanding what happened to Dana and Julia. If I had, I would have taken this event as seriously as it deserved to be, and I would have confronted Louis, which would have been the right thing to do.

I am providing this context so that others do not make the same mistake I did. At that time, I heard the story third-hand, and I interpreted the conversation as two women telling a story about a sexual encounter with a then-married Louis. Albeit enormously embarrassing, in no way did I interpret the interaction as threatening or non-consensual. I misperceived the casual way the story was portrayed to me - instead I should have recognized that it must have been a mask for their unease and discomfort in the face of his detestable behavior. My intent was to seek discretion to protect what I thought was a matter of infidelity. I now comprehend that my response was perceived as a threat to cover-up sexual misconduct. This is not an excuse. What I did was wrong, and again, I am extremely sorry.

In hindsight, I was operating blindly from a one-sided place of privilege. Until last week, I knew only of this one isolated incident. Although this may sound naïve, it is true. Never once, in all of these years, did anyone mention any of the other incidents that were reported recently - I am appalled to learn of these. I have come to realize my status wielded an atmosphere where such news did not reach me, or worse yet, that it seemed such news did not matter to me. It does. It matters tremendously.

I am going to take time to reflect on this, to educate myself daily, and to strive towards a more enlightened path. I want to ensure that all voices around me are heard, and that everyone is treated respectfully and empathetically. More than anything, I want to create an environment that is a better, safer and fairer place."

Becky also represents Aziz Ansari, Amy Poehler, and Kevin Hart. He did represent Pamela Adlon, but she terminated the relationship after the Louis C.K. news became public.

Discussion: 

• If you read Louis C.K.'s statement (NSFW), what is your perspective? In what ways does it serve as an effective apology, and in what ways does it fall short?
• Assess Becky's statement similarly.

Florida State University Suspends Greek Life Activities

A fraternity member's death was the last straw for the president of Florida State University. John E. Thrasher suspended all fraternity and sorority activities on campus, calling for "a new normal for Greek life."

The student death, which occurred during pledging, follows another student death in September and cocaine charges for another member. In a statement, Thrasher explained the decision and called on the Greek community to find innovative practices. He emphasized the importance of the pause: "The president said this pause is needed to review and reflect on the loss of a young life."

In a long list, the university itemizes what is not allowed, including meetings or events, and specific FSU activities are mentioned, such as Homecoming "pomping, skit night, or spear-it night."

Discussion:

• The university website refers to the decision as an "indefinite interim suspension." Sounds redundant, doesn't it? Do you think this is intentional or a grammatical oversight?
• Assess the university's FAQs. How well does the administration anticipate and address questions?
• The president is demonstrating compassion and courage, but of course, not everyone agrees with the decision. What are the counterarguments?

Criticism of Kevin Spacey's Statement

Actor Anthony Rapp has accused fellow actor Kevin Spacey of sexual assault when Rapp was 14 years old. Rapp is known for his roles in Rent, Star Trek: Discovery, and A Beautiful Mind, while Spacey has a long history of movie credits and is currently co-starring in House of Cards.

Spacey responded to the allegations with an apology statement, and he took the opportunity to come out as a gay man. He is facing harsh criticism for deflecting attention away from the situation and for possibly linking being gap to pedophilia, an unfounded but common association.

Susan McCarthy, who manages SorryWatch, created "Bad Apology Bingo" and "Bad Apology Bingo Two" as lessons for what not to include in an apology statement. 

In addition to the public backlash, Netflix has announced that House of Cards, currently filming its sixth season, will not film a seventh. Also, Spacey will not receive the special Emmy award that was planned for new month.

Discussion:

• What's your view of the Spacey's response and the backlash?
• Did Netflix and the Emmy Awards do the right thing? Why or why not?