Bank of America Tries to Repair Its Image

As the target of some "Occupy Wall Street" demonstrations, Bank of America is fighting back. The company's image has suffered in part because of many foreclosed homes (and "robo-signers"), a recent announcement of $5 monthly fees for debit cards, 30,000 layoffs, and a poorly timed website outage. Now Bank of America is running ads in major cities to focus on its good work: charitable donations, small business loans, and loan modifications to help homeowners prevent foreclosure.

Bank spokesperson T.J. Crawford explains, "The campaign aims to deliver the facts about Bank of America's local impact. Sharing the significant work we do at the local level and critical role we play is more important than ever." An ad that ran in Charlotte, NC, the bank's headquarters, had the tagline, "We're working to help keep the North Carolina economy moving forward."

In July 2011, Bank of America published its first Corporate Responsibility Report. On its website, the bank reaffirms its "commitment to shareholders, customers, and clients." In a video on the site, the company gives several examples of how it has served local communities.

 

(View video transcript.)

Discussion Starters and Assignment Ideas:

• The "Executive Summary" of Bank of America's Corporate Social Responsibility report is 16 pages (download). How does this differ from a typical executive summary? Why do you believe Bank of America took this approach?
• Convert the executive summary to a more typical one-page executive summary. What is most important to include, and how can you present this information? For variety, write two versions: one as paragraph text and another in presentation software format (e.g., PowerPoint).
• How do you assess Bank of America's messages? Do you buy its image as a socially responsible company? Which messages in the CSR video do you find most and least convincing?

More Emails Embarrass Their Writers

In case you need more proof that your emails may become public, two successive front page New York Times articles on Monday highlight damaging emails. The first article uncovers emails about Solyndra, the solar-panel manufacturer that received government funding and has since declared bankruptcy. In one email, Lawrence Summers, President Obama's former chief economic adviser, wrote, "While that is good for us, I can't imagine it's a good way for the government to use taxpayer money." In another email, he wrote, "I relate well to your view that gov is a crappy vc [venture capitalist]." Depending on your perspective, these emails prove that either the administration should have known better than to make the Solyndra deal or there was serious, rational internal debate about the prospect before the deal was done. 

The second New York Times story revealed emails about the pipeline currently debated. According to the artile, "...e-mails released Monday paint a picture of a sometimes warm and collaborative relationship between lobbyists for the company building the billion-dollar pipeline and officials in the State Department, the agency that has final say over the pipeline." The emails have environmental groups questioning the objectivity of those making the final decision.

In both of these situations, it is doubtful that the writers intended for their emails to become public.

Discussion Starters:

• How could these emails have been better protected? Is it possible to keep email from being retrieved later by simply deleting it?
• What lesson do you learn from these articles? How can you protect your own communications in the future?

Note to Tweeters Who Hire Ghostwriters: Change Your Password

Someone who calls himself a "Social Marketing & Communications Strategist" is facing embarrassment over his Twitter account. Apparently, @Mark Davidson had hired three people to ghostwrite tweets for him, only to be exposed on his own Twitter feed. One angry former writer took advantage of Davidson's failure to change his Twitter password and kept posting after he stopped working for Davidson:

Discussion Starters:

• What are the ethical considerations of someone tweeting for someone else? Does Davidson's job influence your perspective? (On Twitter, he describes himself as "Internet sales & marketing professional. I write a lot of things to amuse myself and others. On occasion, I even have deep thoughts.")
• After this incident, Davidson (himself, apparently) posted this tweet: "WANTED: Social Media Account Ghost Writer. We've recently had an opening at http://twitter.com/#!/markdavidson. (Serious inquiries only.)" Would you apply? Why or why not?

Hacked NBC Twitter Account Announces Ground Zero Attack

Twitter hacking continues. This time, NBC is the victim, and the tweets are cruel. The Script Kiddies hacked Fox News in July, claiming that President Obama had been assassinated. Apparently, NBC's social media director clicked on an email attachment that allowed access to the culprit:

"'Ryan, You need to get off TWITTER immediately and protect your family from the hurricane. That is an order.' Osborn wrote back 'I'm sorry. Who is this?' The sender then replied, 'I'm the girl next door' with an attachment. Osborn said he mistakenly clicked on the attachment and it contained a Christmas tree."

Discussion Starters:

• What is your reaction to the series of hacking? Are these harmless pranks or potentially dangerous?
• What, if any, are the ethical implications of Twitter hacking?
• How do you assess NBC's statement: "The NBC News Twitter account was hacked late this afternoon and as a result, false reports of a plane attack on ground zero were sent to @NBCNews followers. We are working with Twitter to correct the situation and…sincerely apologize for the scare that could have been caused by such a reckless and irresponsible act"? Is this an appropriate response, or do you believe that more should be included in the network's statement?

Yahoo CEO: "I've just been fired over the phone..."

Carol A. Bartz leaves Yahoo in the same style in which she ran the company. Known for her abrasiveness, Bartz sent this email to employees: 

Hired in January 2009 at Yahoo, Bartz has a history of writing strong emails, such as this one, in which she tells her staff, "...people seem like they're waiting for something. I'm not sure if it's a sugar-low or what, but we need to stop waiting and get moving. Good things do not come to those who wait, they come to those who make things happen."  She is also known for her liberal use of the "F-bomb," as on this quarterly earnings call.

Following Bartz's email to staff, the board chair and Yahoo founders sent an email of their own, announcing the decision and explaining other changes at the company.

Discussion Starters:

• In Chapter 1 of the text, you read about communication media choices. What is your assessment of the chair of Yahoo's board firing Bartz over the phone? What could be the rationale for terminating her over the phone rather than in person?
• What is your assessment of Bartz's email to Yahoo employees? Do you consider this appropriate, inappropriate, or something in between?

Surf the Web Guilt-Free

A recent study, "Impact of Cyberloafing on Psychological Engagement," found that time spent browsing the Internet had positive results on productivity. Researchers at the National University of Singapore found that people who spent 10 minutes surfing were "significantly more productive and effective at the tasks than those in the other two groups [who did other tasks] and reported lower levels of mental exhaustion, boredom, and higher levels of engagement," as reported by The Wall Street Journal.

The effects of surfing were better than personal emailing, phone calls, and texting for a 10-minute break.  According to Vivien Lim, one of the study's authors, these tasks are not as restorative because they demand more cognitive attention. But when people surf, they "usually choose to only visit the sites they like -- it's like going for a coffee or a snack break."

This study has important implications for employers. Concerned about lost productivity, some companies restrict employees' online behavior. Perhaps they should relax the standards -- and focus on work outcomes instead.

 Discussion Starters:

• What do you do when you take a break from work or studying? What do you find most relaxing?
• On a job, have you surfed the web or done non-work-related tasks online? Did your company or manager frown on this, or was it acceptable for a few minutes?
• What are the downsides of employers allowing surfing on company time?

Missouri Law Bans Teacher-Student Contact on Social Networking Sites

If you're a teacher in Missouri, don't "friend" a student on Facebook or follow a student on Twitter. These relationships are now banned. Supporters say that the new law protects students against harmful predators; opponents say that the ban limits teachers' ability to help students with everything from homework assignments to providing assistance during crises. Although email could be used for teacher-student interactions, some teachers want to communicate with students via Facebook because "kids are rapidly abandoning email," according to one educator (listen to the interview). 

Discussion Starters:

• What is your view of the new law? Do you believe this is a good thing, an obstacle to learning, or something else? What are the potential negative consequences of this law?
• What is your own experience with interacting with instructors online? In what ways have your interactions been beneficial -- or not?
• Do you see a difference between a student friending a teacher on Facebook and a teacher friending a student? Do you see a difference between being Facebook friends and following someone on Twitter?

Layoffs to Begin This Week at RIM, Maker of BlackBerry

Research in Motion will begin laying off 10% of its workforce this week. This comes as no surprise to people watching the company: the BlackBerry has been losing smartphone market share and has dropped to second place after Google's Android. Also, RIM warned of lower revenues and announced layoffs (their "cost optimization program") last month.

Skeptics doubt that the layoffs will be an effective long-term solution for RIM:

Video source.

In a press release dated July 25, 2011, this is how the company explained the decision:

Cost Optimization Program
In addition to the management changes outlined above, RIM today provided further details on its cost optimization program, which is focused on eliminating redundancies and reallocating resources to focus on areas that offer the highest growth opportunities and alignment with RIM's strategic objectives.  The workforce reduction is believed to be a prudent and necessary step for the long term success of the company and it follows an extended period of rapid growth within the company whereby the workforce had nearly quadrupled in the last five years alone.

As part of this broad effort, RIM is reducing its global workforce across all functions by approximately 2,000 employees. RIM intends to notify impacted employees in North America and certain other countries this week. The remainder of the global workforce reductions will occur at a later date subject to local laws and regulations.  All impacted employees will receive severance packages and outplacement support. 

The size of this workforce reduction is in line with the preliminary estimate that was factored into RIM's full year financial guidance on June 16, 2011.  Following the completion of the workforce reduction, RIM's global workforce is expected to be approximately 17,000 people.  Additional information about the financial impact of this workforce reduction and other operating expense reductions will be communicated when the company reports Q2 results on September 15, 2011. As explained on June 16, 2011, any one-time charges associated with the cost optimization program are not included in RIM's Q2 and full year outlook, but will be identified and disclosed on September 15, 2011.

Discussion Starter and Assignment Idea:

• According to Chapter 1 of the text, what type of language is used in RIM's press release? What examples can you find of different barriers to communication?
• Rewrite this segment of the press release for employees. What would you say differently to internal staff who may be affected by the decision? When you're finished, exchange drafts with a partner. Which version do you prefer and why?

Fox News' Twitter Feed Hacked with False Reports of Obama's Death

Fox News was the latest victim of computer hacking when its Twitter feed showed several false tweets about President Obama's death. As of this writing, the source of the security breach is unclear.

CNET's hacker chart shows a series of recent attacks, which have caused increasing concern about computer security.

Video source.

 

Discussion Starters:

• The hackers' rationale for breaching Fox News' Twitter feed is this: "We are looking to find information about corporations to assist with antisec [a concerted hacker attack on corporate and government security]. Fox News was selected because we figured their security would be just as much of a joke as their reporting." What do you think of this response? Did the hackers make a funny joke, raise a good point, or present a serious concern?
• What are the consequences of this breach for the country? For Fox News?

As "Sheriff" of Vancouver Riots, Social Media Nabs Several People

Disappointed fans rioted after the Vancouver Canucks' Stanley Cup loss, and now some are paying the price. A University of British Columbia student, caught up in the action and caught on video, took two pair of pants from a store. She has since apologized on her blog. 

Cacnio wasn't the only one identified in riot videos (she can be seen at 1:30 - 1:33 below). According to a Globe and Mail story, "Social media has become the sheriff of this unlawful event, in essence rounding up a number of rioters by posting their pictures on the Internet and encouraging people to identify the people in them. That has led to online shaming of those named, some of whom have since turned themselves into police and are lining up to publicly apologize online."

Discussion Starters:

• If a prospective employer Googled you, what would he or she find? (Try searching for yourself to make sure.)
• How do you assess Cacnio's apology? She has quite an extensive list of people to whom she apologizes. Do you think this is appropriate given the situation, or did she do more than was necessary?

Company Examples for Chapter 1: Understanding Business Communication

Princess Cruises Apologizes (December 2016)

Princess Cruises, owned by Carnival, published several messages to apologize for illegally dumping oil-contaminated waste into the ocean. The company's communications certainly are prolific, but how honestly do they admit wrongdoing, and how well do they rebuild the brand?

Princess Cruises

A comment posted on YouTube under the president's video sums up one perspective: "[T]his video needs taking down and a new one with someone who looks sorry is put up. [H]er reading of this is terrible, like watching a 12yr old at a school play." (The writer needs to take one of our courses! But students might agree with his assessment.)

These examples can be used to discuss persuasive strategies (Chapter 7), oral presentations (Chapter 11), and ethics (Chapter 1):

• News story
• Website response page
• Press release
• President video
• EVP Fleet Operations video

Marriott CEO Writes an Open Letter to President-Elect Donald Trump (November 2019)

Arne Sorenson Letter to Donald Trump

Arne Sorenson's letter to President-elect Trump illustrates principles of persuasion (Chapter 7) and can be used to discuss medium choice (Chapter 1). How does the letter reflect Marriott's business interests? Why did Sorenson choose LinkedIn? 

OLDER EXAMPLES

Collection of companies' social media policies.

Apple's (leaked) social media policy.

Great email exchange by two lawyers (discussed in Chapter 1). Useful to discuss ethics, tone, and more. Here's a PowerPoint file to reveal the messages, and you can read more about the situation here.

Excerpts of Goldman Sachs emails (topic in Chapter 1) collected by the Wall Street Journal. As the WSJ reporter says, "The [Senate] committee will likely use many of the emails to illustrate Goldman's sometimes contradictory and unflattering statements about its role in the mortgage meltdown." Read more here.

National Labor Relations Board's memo about social media policies, 2012.

General Mills statement reverting back to its original legal terms.

A general's emailabout the value of reading. Read more about the situation.

Ellen Pao's controversial resignation from Reddit, 2015.

Facebook communications: Communicating Our Community Standards and Guidelines, 2015.

Former Twitter CEO Dick Costolo's posts taking responsibility for cyberbullying on the site, 2015.

Go to examples for Chapter 2.

Videos for Chapter 1: Understanding Business Communication

Mylan CEO defends 400% drug price hike.

Princess Cruises CEO apologizes for illegal dumping.

Stanford University study about multitasking. Useful to discuss noise and distractions that interfere with communication.

Scene from the movie Up in the Air where Natalie Keener and Ryan Bingham debate using videoconferencing to communicate layoffs: 20:07 – 25:48. (I can send the clip by email; it's too large to post here.)

"Flair" scene (13) from the movie Office Space (download).  Useful to discuss barriers to communication.  Referenced in Exercise 5.

Aggressive customer service at Aggresshop.

Video from the Deloitte Film Festival (example of using social media internally).

Kevin Smith discusses the "too fat to fly" incident on Southwest Airlines (example of using social networking to connect with customers).

Analyst from Southwest Airlines discusses the company's social media strategy.

Brian Williams interview with Matt Lauer about his questionable NBC reporting, 2105.

Sepp Blatter resigns from FIFA after corruption scandal, 2015.

Hillary Clinton discusses the controversy over her personal emails, 2015.

Go to videos for Chapter 2.

Beware of Document Leaks

The Story

The Wall Street Journal has created a website, SafeHouse, to solicit documents and databases. Billed as a way for the public to help the WSJ "uncover fraud, abuse, and other wrongdoing," the publisher is taking a WikiLeaks-like strategy to attract whistleblowers. Leaked documents make good news stories -- and create big headaches for corporate communicators.

Source: Disclose.tv - Wall Street Journal Opens A Wikileaks Type Site Video

Discussion Starters

• What do you see as the potential impact of SafeHouse (and other newspapers getting into the game) on corporations?
• How would you advise managers to avoid sensitive communications from getting leaked?
• If you uncovered wrongdoing at work, what avenues would you take to report the issue? What resources may be available within your company? What are the advantages and disadvantages of using these internal channels first?

Assignment Ideas

• Go to the SafeHouse website. How easy is it to upload information?
• On the new website, how are users assured anonymity? Explore the website to see the extent to which whistleblowers are protected. 
• Imagine that you were the chief legal officer of a major company. Write an email to all employees to reinforce your communications policy. Using guidelines in Chapter 1 of the text, how can you remind people to protect their email and other communications?

University's List of Banished Words Includes "Fail"

The Story

In an attempt to stop the "Mis-Use, Over-Use and General Uselessness" of certain words, Lake Superior State University publishes an annual List of Banished Words.  Topping this year's list are "viral," "epic," "fail" (sorry, only as a noun), "wow factor," "a-ha moment" (perhaps in honor of Oprah's retirement), "back story," "BFF," and "man up."

 
Discussion Starters

• How do you feel about these words?  Should they be "banished" (or curtailed), or are they harmless?
• Which of these words are you surprised to see?  Which are not surprising?

Assignment Ideas

• Identify which of these words would be problematic in business communication.  Use the barriers to communication described in Chapter 1 to explain your answer.
• In small groups, brainstorm a list of additional words that might  make your own "banished" list.  Which annoy you the most and why?

1700 Holiday Layoffs, via Conference Call

The Story

Companies make many difficult decisions, but they don't always communicate them well.  To share the "news quickly and consistently," Sanofi-Aventis pharmaceutical company announced 1700 employee layoffs via two conference calls: one for those staying and one for those leaving.  The company's holiday season timing didn't win them any new friends.

 

Discussion Starters

• Conference calls may not have been the best choice, but was the company's unethical?  Where do you see the lines in this situation between unprofessional, insensitive, and unethical?
• Jack Cox, senior director of media relations, explained the decision to The Huffington Post: " 'Rather than cascade these announcements and stretch the notifications over the course of days, we decided to address these colleagues at one time, to explain the rationale for the reductions and express appreciation for the contributions they've made to the organization,' he said. 'We acknowledged in the call that delivering this news on a teleconference wasn't ideal, but given the scope and scale of the reductions, there was no other way to share this news quickly and consistently.' "  

Although the medium caused Sanofi-Aventis bad publicity, can you see Cox's point?  What might be a good compromise solution?  You might want to revisit Communication Media Choices from Chapter 1.

Assignment Ideas

• If an employee who reports to you complained about the conference call, what would you say?  How would you balance explaining the decision and empathizing with the employee about the bad news?  Role play with a partner in class.
• Write an apology email to employees.  Be honest and empathetic, and be careful about getting yourself in legal trouble.

Gap in Ethics? Made in U.S.A. = Made in China

The Story

Gap, consistently rated one of Ethisphere's Most Ethical Companies, is under fire.  The company's "Feed USA" campaign promised to donate $5 to school lunches for each bag sold.   Although the poster advertising the campaign is stamped "Made in the U.S.A.," the bags themselves have a label that reads "Made in China."

Discussion Starters

• What do you think of this situation?  Looking at the images posted, do you think the campaign is misleading, or is this no big deal?
• How do you think this bodes for the Gap's rating as one of the most ethical companies? Would you withdraw this distinction, or keep it for other reasons?

Assignment Ideas

• A representative for the Gap responded to the story: "'We regret any misunderstanding,' a rep for The Gap tells Consumerist, adding that the Feed USA Canvas Tote bag and the Bandana Bag are actually both made here in the good old U S of A. 'However, the FEED USA Denim Bucket bags are made in China, and should not have been connected to the made in the USA signs.... We apologize for any inaccurate messaging.'"  However, the signage doesn't indicate that some of the bags were made in China, and bags made in China still have the "Feed USA" logo.  Try another approach for Gap.  What could you say instead, which might be better received, considering the situation? 
• Write an email to Gap explaining your position on the topic.  You choose: either urge the company to change the campaign or show your support for their efforts.

WikiLeaks: Is Big Business Next?

The Story

After over 250,000 U.S. State Department documents became public by WikiLeaks, the organization's founder warns that big business may be next in line for a security breach.  Companies have reason to worry.  The WikiLeaks documents revealed embarrassing information, such as references to the prime minister of Italy as "feckless and vain" and to North Korea's leader as a "flabby old chap."  If documents and internal communications of "a major American bank" are revealed, as Julian Assange promises, a company may suffer deep embarrassment.

 Discussion Starters

• What are the ethical considerations of making companies' documents and internal communications public?  What is the value to society?  What are the potential risks?
• Does the possibility of your email or other documents becoming public concern you?  Does this encourage you to rethink how you write messages?  How?
• How can individual managers working for a company protect themselves from these attacks?

Assignment Ideas

• Look at emails you have sent over the past six months.  Which would cause you embarrassment if they were published in the Wall Street Journal?
• Write an email to Julian Assange, the founder of WikiLeaks.  Take a position: either convince Assange to continue his pursuit of business OR convince him to stop his pursuit.  Be sure to explain and support your position.

Can Facebook Get You Fired?

The Story

Angry at her boss, an ambulance company employee posted negative comments about him on her Facebook page.  Three weeks later, the employee was fired.  The company claims that the employee was terminated for other reasons, but the National Labor Relations Board (NLRB) is suing for illegal discharge.  The claim is based on the National Labor Relations Act, which protects employees' "concerted activity."  The claim also challenges the company's social media policy, which tries to curb employees' online comments about their companies. This case will be an interesting one to watch!

Update (2/8/11): The case was settled, which doesn't change laws around Facebook posts but does put companies on notice.

Discussion Starters

• The employee, Dawnmarie Souza, used strong language about her supervisor.  Legal or not, what's your view on whether this was a good idea?  
• What situations have you encountered where employees' (or students') Facebook post have gotten them in trouble?

Assignment Ideas

• First, consider NLRB's news release about the case.  In the third paragraph, the NLRB states that "the company's blogging and internet posting policy contained unlawful provisions, including one that prohibited employees from making disparaging remarks when discussing the company or supervisors and another that prohibited employees from depicting the company in any way over the internet without company permission."  Next, review a company's social media policy. (You'll find many here.)  Does the company's policy include language that restricts an employee's online activity?  If so, write an email to the company's VP, social media, explaining the situation and warning him or her that the policy is in question (although nothing has been decided yet).
• Research other cases where employees have been terminated for online comments.  Choose one situation to discuss with the rest of the class.  Do you think the termination was appropriate in this case?  Why or why not?
• Look at your Facebook page.  Are there any posts that could be called into question by a past or potential future employer?

German Companies Block Social Networks

The Story

To reduce security threats and address concerns about productivity, several German companies are blocking employees' access to social networks.

 

Discussion Starters

• If you have worked in an office environment, how active were you on social networks like Facebook? Did this affect your productivity?
• Will this action stop employees from participating in social networks?  Why or why not?
• The move addresses concerns about viruses and employees revealing trade secrets online. How will blocking access to social networks address these concerns?  How will they fail to address these issues?
• What are the downsides of blocking employees' access?  What are the benefits to companies of having employees contribute information about their brand on social networks?

Assignment Ideas

• Employees can speak positively on behalf on their companies, which could promote a brand.  Contribute a positive comment about a company or brand on a social network. 
• Review a Facebook fan page for your favorite brand or product.  Analyze the comments: are most comments positive or negative?  What can you conclude about this?
• How does this policy of German companies compare with common policies of U.S. companies?  Review a few social media policies of U.S. companies and write a report to summarize your findings.

World Series Goes Social

The Story

Opening Day of the World Series brings new ways for fans to celebrate -- and commiserate -- with other fans.

 

 

 Discussion Starters

• How would you expect social media tools to affect MLB fans'  connection to the games and to each other?
• From the teams' owners' perspective, what are the challenges of managing social media?  What are the benefits to the teams?

Activity Ideas

• Compare Facebook fan pages of the San Francisco Giants and the Texas Rangers. Which is more effective for engaging fans and why?  Write an email to the creator of the weaker fan page with 3-4 suggestions for improvement.
• In small groups, search for news about the World Series on Twitter.  What keywords work best for your search?  What does your search reveal about how people are using Twitter?