False Tweet Rocks the Stock Market

A fake tweet on Associated Press's Twitter feed sent the blue-chip Dow down about 145 points in two minutes. The market quickly recovered, but the incident reminds us how reactive we are to potentially false information.

Associated Press confirmed that its feed had been hacked, although no individual or group has yet taken responsibility. The false tweet is below.

This is certainly not the first case of hacking. Facebook and Twitter both admitted security breaches over the past few months. In a February blog post, Twitter outlined plans to improve security.

Image source.

Discussion Starters:

• What are the ethics of this situation? Analyze the behavior of those who acted and those affected.
• Are the hackers responsible for the effect of the tweet, or should investors be smarter about using information to make trades?

NYU Prof to Student: "Get Your Sh** Together"

An NYU professor's email response to a student is going viral. The dispute started when a student walked into Scott Galloway's brand strategy class an hour late, and the professor dismissed him based on a policy of not allowing students who arrive more than 15 minutes late to stay in the class.

The student wrote an email to Prof. Galloway, explaining his position:

Prof. Galloway,

I would like to discuss a matter with you that bothered me. Yesterday evening I entered your 6pm Brand Strategy class approximately 1 hour late. As I entered the room, you quickly dismissed me, saying that I would need to leave and come back to the next class. After speaking with several students who are taking your class, they explained that you have a policy stating that students who arrive more than 15 minutes late will not be admitted to class.

As of yesterday evening, I was interested in three different Monday night classes that all occurred simultaneously. In order to decide which class to select, my plan for the evening was to sample all three and see which one I like most. Since I had never taken your class, I was unaware of your class policy. I was disappointed that you dismissed me from class considering (1) there is no way I could have been aware of your policy and (2) considering that it was the first day of evening classes and I arrived 1 hour late (not a few minutes), it was more probable that my tardiness was due to my desire to sample different classes rather than sheer complacency.

I have already registered for another class but I just wanted to be open and provide my opinion on the matter.

Regards,
xxxx

-
xxxx
MBA 2010 Candidate
NYU Stern School of Business
xxxx.nyu.edu
xxx-xxx-xxxx

In response, Prof. Galloway took the opportunity to teach what some may call a life lesson:

From: scott@stern.nyu.edu
To: "xxxx"
Subject: Re: Brand Strategy Feedback

         xxxx:

Thanks for the feedback. I, too, would like to offer some feedback.

Just so I've got this straight...you started in one class, left 15-20 minutes into it (stood up, walked out mid-lecture), went to another class (walked in 20 minutes late), left that class (again, presumably, in the middle of the lecture), and then came to my class. At that point (walking in an hour late) I asked you to come to the next class which "bothered" you.

Correct?

You state that, having not taken my class, it would be impossible to know our policy of not allowing people to walk in an hour late. Most risk analysis offers that in the face of substantial uncertainty, you opt for the more conservative path or hedge your bet (e.g., do not show up an hour late until you know the professor has an explicit policy for tolerating disrespectful behavior, check with the TA before class, etc.). I hope the lottery winner that is your recently crowned Monday evening Professor is teaching Judgement and Decision Making or Critical Thinking.

In addition, your logic effectively means you cannot be held accountable for any code of conduct before taking a class. For the record, we also have no stated policy against bursting into show tunes in the middle of class, urinating on desks or taking that revolutionary hair removal system for a spin. However, xxxx, there is a baseline level of decorum (i.e., manners) that we expect of grown men and women who the admissions department have deemed tomorrow's business leaders.

xxxx, let me be more serious for a moment. I do not know you, will not know you and have no real affinity or animosity for you. You are an anonymous student who is now regretting the send button on his laptop. It's with this context I hope you register pause...REAL pause xxxx and take to heart what I am about to tell you:

xxxx, get your shit together.

Getting a good job, working long hours, keeping your skills relevant, navigating the politics of an organization, finding a live/work balance...these are all really hard, xxxx. In contrast, respecting institutions, having manners, demonstrating a level of humility...these are all (relatively) easy. Get the easy stuff right xxxx. In and of themselves they will not make you successful. However, not possessing them will hold you back and you will not achieve your potential which, by virtue of you being admitted to Stern, you must have in spades. It's not too late xxxx...

Again, thanks for the feedback.

Professor Galloway

The professor told Business Insider that he's "getting an email about every three minutes from people (all over the world) voicing support/anger (about an 8:1 ratio)."

Discussion Starters:

• This email exchange is three years old. What took so long for it to go viral?
• What's your reaction to each email? How could both the student and the professor possibly have changed their behavior, language, or perspective?

What Do Social Media Teams Look Like?

A Ragan/NASDAQ OMX Corporate Solutions survey of 2,714 communicators uncovered how organizations' social media teams are structured. This infographic, created by Go-Gulf.com, highlights a few interesting facts about those who completed the questionnaire:

• Only 27% have a dedicated social media team. (It would be interesting to know the size of the companies and industries.) 
• 42% have only one person working on social media.
• Only 22% plan to hire more people to manage social media next year.
• 25% use interns for social media work.

 

Image source.

Discussion Starters:

• What, if anything, surprises you about this data?
• How do you think these numbers might vary for hospitality, retail, technology, and other industries?
• If you could project out five years, how do you think this data might change? What are your predictions?

The IRS Doesn't Consider Emails Private

Strategizing with your accountant about how to avoid paying taxes? Asking your mom whether you really have to declare that research stipend? These conversations best not happen over email.

The IRS believes it can access taxpayer's emails without a warrant, according to a response to the American Civil Liberties Union (ACLU)'s asking for the agency's privacy policy. As a defense, the IRS seems to conjure the Electronic Communications Privacy Act (ECPA), which the ACLU calls "hopelessly outdated":

"It draws a distinction between email that is stored on an email provider's server for 180 days or less, and email that is older or has been opened. The former requires a warrant; the latter does not. Luckily, the Fourth Amendment still protects against unreasonable searches by the government."

Enacted in 1986, the Act doesn't account for where many people now store email: in the cloud. Similarly, the agency seems to claim that people have "no privacy expectation" for email stored on a server.

Although the IRS denies doing so, the agency may search social media sites for posts that may contradict some of the claims made on tax returns.

Image source. 

Discussion Starters:

• If the IRS did search and read your emails, what would it find?
• Does this news make you more cautious about what you might send over email? How so?

Coming Soon: Video Chat at Your ATM

Bank of America is adding what the company calls the "human touch of a teller" to the customer's ATM experience. In a statement, the company says that the service provides additional hours of personalized service for customers who need it:

"The new technology gives customers access to a range of services during extended hours to address their daily banking needs, and provides them with convenience, control and flexibility over how, when and where they bank. Using the new ATMs, customers can speak with a Bank of America teller via real-time video and receive the same quality of personal assistance they would if they walked up to a banking center counter."

The statement also says that ATMs in Boston will be the first equipped with the service, with other locations rolling out throughout 2013. In case you fear this will replace your beloved teller at the branch, Bank of America assures us, "Banking center tellers will still be available for customers who choose to conduct their banking transactions in person" (for the few diehards).

Discussion Starters:

• Who do you think will make most use of the voice chat service? Under what circumstances would you?
• What are the costs to Bank of America of implementing the new service (financial and other), and what are the benefits? What else do you think factored into the company's decision to offer this innovative service?

SEC Gives Guidance for Social Media Disclosures

Companies no longer have to wonder what is acceptable to disclose on social media sites. The SEC has set rules for how information may be disseminated on Facebook, Twitter, and other sites.

In the past, the SEC has been stringent on what companies can communication online. Because of Regulation Fair Disclosure (Reg FD), the SEC wanted to ensure that all investors have access to information at the same time, so that no one individual or group has an advantage in investing.

Now, the agency has softened its requirements. According to a New York Times article, companies can now post, with some restrictions: 

"...companies could treat social media as legitimate outlets for communication, much like corporate Web sites or the agency's own public filing system called Edgar. The catch is that corporations have to make clear which Twitter feeds or Facebook pages will serve as potential outlets for announcements."

In a statement, the agency summarized the new rule:

"The Securities and Exchange Commission today issued a report that makes clear that companies can use social media outlets like Facebook and Twitter to announce key information in compliance with Regulation Fair Disclosure (Regulation FD) so long as investors have been alerted about which social media will be used to disseminate such information."

In other words, investors need to know a company's social media strategy-where information will be posted.

By most standards, the rules are long overdue. Companies such as Netflix have been investigated by the SEC for posting information on Facebook. The clarification will help companies use multiple channels to reach multiple audiences.

Discussion Starters:

• Read the SEC's statement. What else do you learn from reading "between the lines"?
• What questions or potential difficulties remain for companies deciding what, when, where, and how to post?

Emails Reveal Legal Bill Padding

Lawyers should know better than to send joke emails they want to keep private. Emails among attorneys at DLA Piper, the world's biggest law firm, have become public in a lawsuit about overbilling.

The suit is a counterclaim by an energy executive who has $675,000 in unpaid bills with DLA Piper. In the suit, Adam H. Victor accuses DLA Piper of inflating billable time by performing unnecessary tasks and taking too long to complete them with too many staff.

The emails seem to confirm his claims. Here are two examples, captured by The New York Times. In the first, an attorney says that "random people" were working on the case "for whatever reason" to "churn that bill, baby!" 

 

In a second email, an attorney gloats about going $200,000 over the firm's estimate.

Read more emails.

Discussion Starters: 

• Describe what you perceive to be the working environment that supports these types of emails. In other words, what makes these acceptable-perhaps even encouraged?
• How do emails become public in such situations? Aren't they private-just sent to one or two people?

Twitter Turns 7

To celebrate its seventh birthday, Twitter produced a video to show its accomplishments and a few historic tweets.

Here are some stats about Twitter from 2012, of particular interest to business communicators: 

• 56% of customer tweets to companies are being ignored.
• 32% of all Internet users are using Twitter.
• 34% of marketers have generated leads using Twitter.

The average age on Twitter is 37.3, according to Pingdom, compared to 40.5 for Facebook. As Twitter declines in average age, Facebook has increased-about two years in the past two years for each.

Discussion Starters:

• How do you use Twitter, if at all? What value do you see for you personally?
• What would inspire you to communicate with company via Twitter rather than Facebook or an online form?

MIT Media Lab SXSW Faux Pas

As the rest of us watch the snow fall, participants in the SXSW interactive festival in Austin are enjoying the technology, music, and general coolness of the event.

Festival mainstay MIT Media Labs surprised people with its promotional wristbands that many considered sexist. The bands were given to people who attended an MIT party.

In a blog post, the organization published this apology:

"We appreciate all of the feedback we've received about the party we hosted at The Parish Underground on Saturday night at SXSW. While we received a lot of positive responses, we want to address an issue with the wristbands that were given to people who came in the door. They were offensive and in no way reflect the sentiments of the MIT Media Lab. These wristbands were provided by the venue, and while we didn't realize what was printed on them until after they'd been handed out, we should have prevented the situation from occurring in the first place.

"The Media Lab is firmly committed to supporting women in the sciences, computing, arts, and engineering. We don't like – and certainly don't want to support or disseminate – offensive messaging. We appreciate those of you who noticed the wristbands and pointed them out to us; please accept our sincere apology."

Image source.

Discussion Starters:

• What's your reaction to the wristbands: clever marketing, offensive, or something else? 
• What's the significance, if any, of MIT Media Labs distributing the wristbands at SXSW?
• How do you assess the organization's apology?

Fake Menu for Guy Fieri's Restaurant

Note to business owners: register all web domains similar to your company's name. Guy Fieri didn't, and a prankster created a fake menu on guysamericankitchenandbar.com. Fieri's restaurant is at the URL GuysAmerican.com, and the fake menu is a good visual imitation of the real one.

 Bryan Mytko had some fun with the idea and bragged about it on Twitter:

This is the second time Fieri is doing damage control in the past few months. The fake menu follows a scathing New York Times review of Fieri's restaurant.

Discussion Starters:

• What other domains should Guy Fieri have registered? At Easy Who Is, check a few more similar names to see who owns them. 
• Should Guy Fieri try to get the domain back? If the owner wants him to pay, what do you think would be an appropriate price?

Burger King's Twitter Feed Hacked

Burger King is the latest victim of Twitter hacking. With its page image turned into a McDonald's logo, the company suffered embarrassment for an hour before Twitter closed down the account.

 

Within this time, the hacker offended Burger King employees, promoted a musician, and claimed that the company had been sold to McDonald's. The first tweet was, "We just got sold to McDonalds! Look for McDonalds in a hood near you." Another tweet read, "We caught one of our employees in the bathroom doing this..." with a photo of someone shooting a syringe into his arm.

During the incident, @McDonald's tweeted, "We empathize with our @BurgerKing counterparts. Rest assured, we had nothing to do with the hacking."

Burger King shared this statement with Mashable:

 

When Burger King regained control of its Twitter feed, the writer acknowledged the thousands of new followers and tweeted, "Interesting day here at Burger King, but we're back! Welcome to our new followers. Hope you all stick around!"

Meanwhile, Twitter is under fire for so many recent hacks. In response, the site may institute two-factor authentication, which requires a user to respond to a text message before gaining access to the account from a mobile device. Facebook, Google, and Dropbox already have similar processes in place.

Discussion Starters:

• How do you think the hacking occurred? Where might Burger King have vulnerabilities in its Twitter feed or process?
• How do you assess Burger King's response? What, if anything, could the company have done differently?

S&P Emails and IMs Part of Government Suit

When will people learn that internal communications can go public? The federal government is suing Standard & Poor's for knowingly rating securities too highly, in effect, bolstering deals before the 2008 financial crisis. Internal emails and instant messages support this claim.

In one IM exchange, two analysts discuss a pending crash, and one admits that "we give in anyway."

In another exchange, one analyst IMs to another that "we rate every deal...it could be structured by cows." And in an email exchange, an analyst describes the pressure at S&P, and a client questions the built-in conflict of interest.

Although the video doesn't seem to be available online, analysts created a parody of the song, "Burning Down the House," by the Talking Heads.

What was apparently clear to some pockets of Wall Street took a while to hit Main Street, where the real damage was done. 

Discussion Starters:

• How else could these analysts have handled the pressure they were under?
• Why did these analysts feel comfortable communicating this way? Do you think S&P doesn't have a clear email policy? What else could be going on?

Applebee's Receipt Goes Public

Unhappy with not receiving a tip, an Applebee's server posted the signed check online-and got fired. The customer, Pastor Alois Bell, crossed out the 18% tip automatically added for large parties and wrote "0%" with the note, "I give God 10% why do you get 18?" The server, Chelsea, posted the receipt to the Atheism forum on Reddit.

Bell apparently left a $6 cash tip, but the server, Chelsea, was still offended by the note. When Bell learned that the receipt was posted online, she returned to Applebee's and demanded that everyone be fired. Later, she regreted her actions, calling them a lapse in judgement: "I've brought embarrassment to my church and ministry."

As expected, social media reactions are mixed, with many comments criticizing Applebee's decision to fire Chelsea. The company posted this response to its Facebook page: 

"We wish this situation hadn't happened. Our Guests' personal information-including their meal check-is private, and neither Applebee's nor its franchisees have a right to share this information publicly. We value our Guests' trust above all else. Our franchisee has apologized to the Guest and has taken disciplinary action with the Team Member for violating their Guest's right to privacy."

In addition, the CEO posted a statement on Applebee's website, including the excerpt from the policy:

"Employees must honor the privacy rights of APPLEBEE's and its employees by seeking permission before writing about or displaying internal APPLEBEE'S happenings that might be considered to be a breach of privacy and confidentiality. This shall include, but not be limited to, posting of photographs, video, or audio of APPLEBEE'S employees or its customers, suppliers, agents or competitors, without first obtaining written approval from the Vice President of Operations. . . . Employees who violate this policy will be subject to disciplinary action, up to and including termination of employment."

Image source.

Discussion Starters:

• What's your reaction to Chelsea's posting the receipt online? Was it her right, or did she misstep?
• Did Applebee's do the right thing by firing Chelsea? Why or why not? How do you assess the company's rationale-that posting the receipt was a violation of the guest's privacy?
• Read the CEO's statement. What do you consider his strongest and weakest arguments for terminating Chelsea?

Teacher May Be Fired for Posting Pics of Students

A teacher is under pressure for posting pictures of her students with duct tape across their mouths. What was intended as a funny moment within a class has become an issue for an Ohio school board.

When a middle-school student had trouble with her binder, 33-year-old teacher Melissa Cairns gave her some duct tape to hold it together. Instead, the student put the tape across her mouth. Getting a laugh from students encouraged others to do the same.

According to Cairns, the students asked her to talk a picture. She did. And posted it to Facebook with the caption, "Finally found a way to get them to be quiet!!!"

Another school employee reported her. Cairns removed the picture, as requested, but she is now suspended on unpaid leave, awaiting the school's decision. 

Discussion Starters:

• What about the teacher's perspective (in her video interview) makes sense to you? What doesn't?
• If you were the school principal, how would you handle the situation? 
• Imagine that you're a parent of one of the children whose picture was posted. What do you suppose your reaction might be?
• The CNET article refers to Cairns' "private" Facebook page. Is Facebook private?
• What could a school do to prevent this type of situation in the future?

More Teens and Young Adults Use Tumblr than Facebook

Is Facebook becoming passé?  Among 13-to-18-year-olds and 19-to-25-year-olds, Tumblr is the social media winner, according to one recent study. Although Facebook is still popular among these age groups, 55 % of teens and 52% of the young adults are on the site, compared to 61% and 57% on Tumblr.

One digital marketing consultant explains the difference this way:

"Facebook is where teens and young adults connect with family and some friends. Tumblr is where they connect with like-minded people about the topics they care about."

With its single-subject, short blog entries and animated GIFs, Tumblr appeals to the younger crowd. Facebook certainly is showing its age, with the average user now 40.5-not exactly the Harvard social seeker of its roots.

Survey researcher Gary Tan, 31, is concerned that he's already a "geezer":

"To be honest, it's a sobering notion that there's some piece of technology out there that you and your peer group doesn't use and doesn't understand. As far as I can tell, it might be a first for me and my geezer friends."

This survey is consistent with other reports that teens may not be as excited about Facebook as their older peers. A Los Angeles Times article in May 2012 reported that young people's "goal is to hook up with smaller circles of friends and share their thoughts and feelings away from the prying eyes of Mom and Dad." When parents are online, it's just not as much fun anymore.

Image source.

Discussion Starters:

• Does this latest survey match with your experience of social media sites? If you have younger brothers and sisters, do you find them interested in sites other than Facebook?
• What reaction do you have to the survey? Do you feel old and stodgy on Facebook?

Lance Armstrong's Doping Confession

After years of denying using performance-enhancing drugs, Lance Armstrong has finally admitted to doping. Although already under a lifetime ban of participating in Tour de France events and stripped of seven of his Tour de France titles and lucrative endorsements, the cyclist had held fast to his message: "I have never doped." He even sued some of his accusers.

But during an interview with Oprah Winfrey, Armstrong has finally come clean. The interview will air later this week with more details of the confession.

Things may get even worse for Armstrong. The federal government may join a whistleblower lawsuit to recoup money paid to Armstrong by the U.S. Postal Service to sponsor his cycling team. And if he officially admits drug use to the  World Anti-Doping Agency, he may face more lawsuits and fines.

Questions remain, for example, whether Armstrong will implicate others and what they may face.

Discussion Starters:

• Why did Armstrong choose to confess now? Why did he choose an interview with Oprah Winfrey to tell us the news?
• When the interview is aired, pay attention to Armstrong's word choices and language. Analyze his approach and delivery. What makes him credible now-or not?

Facebook's App Has Security Problems

For the new year, Facebook posted a "Midnight Message Delivery" app for people to send notes when the clock struck 12. It was a cute idea, but the app was easily hacked.

A computer science student first discovered the security flaw. Jack Jenkins found that changing the message ID brings users to different messages intended to be private. For example, this message has a confirmation number at the end that can be changed easily: http://www.facebookstories.com/midnightdelivery/confirmation?id=76188.

Being able to read private messages was one issue; another was the ability to delete messages that people believed would be received.

Facebook has since disabled the app.

Discussion Starters:

• How does such a security flaw affect Facebook's credibility? To what extent could this affect people's trust in future Facebook apps?
• In addition to disabling the app, should Facebook post a message about the flaw? If so, what should the company say? 

Hitler Humor Falls Short

As it turns out, Hitler jokes can offend people. French bank BNP used a parody of Hitler from the movie, "Downfall" as a motivational video for employees. Some employees didn't find it funny.

A bank employee created the video, which was originally shown last year at a seminar for 100 international managers in Amsterdam. Apparently, it was uploaded to the company's intranet site for more employees to view.

Similar parodies have been used many times and are popular on the web, such as this example of Hitler's reaction to the iPad. The bank's version shows Hitler as a Deutsche Bank executive angry that competitor BNP is succeeding in the foreign exchange market.

It's possible that employees didn't know the history of the clip. Still, some had strong negative reactions: 

"We could not believe the bank had actually dared to do that-make an analogy between our competitors and the Nazi regime. It took us a few minutes to take it in."

"We were shocked. Nobody knew how to react. Some  Jewish employees from the United States did not find it funny at all."

Discussion Starters:

• How would you describe the bank's original intent of using the parody?
• Why do you think the controversy became public now, rather than after the seminar in Amsterdam last year?
• What's your view of how some employees reacted?

Ten Jargon Words of 2012

PR Daily asked readers to report their top jargon words of the year.

The winners are:

• Game-changer
• At the end of the day (and its cousin, having said that)
• YOLO
• Epic
• Low-hanging fruit
• Value-add
• Impactful
• Utilize

Some of these are real hangers-on. We're not yet tired of "epic fail," for example? But others are newer-at least to me. YOLO suddenly seems more popular than Pinterest.

Image source: PR Daily.

Discussion Starters:

• What do these words mean? After you define each, try to find a substitute.
• What's the problem with overusing jargon? Is it a big deal at all?

Anheuser-Busch to Paramount: Remove Budweiser Logo from "Flight"

In the new movie, "Flight," Denzel Washington's character, a pilot, is drinking a Budweiser beer while he lands a plane. Anheuser-Busch doesn't like the publicity and has asked Paramount to omit its logo from digital and future versions of the film.

 

In a statement to the Associated Press, Rod McCarthy, vice president of Budweiser said, "We would never condone the misuse of our products, and have a long history of promoting responsible drinking and preventing drunk driving. We have asked the studio to obscure the Budweiser trademark in current digital copies of the movie and on all subsequent adaptations of the film, including DVD, On Demand, streaming and additional prints not yet distributed to theaters."

A distributor of Stoli vodka, another alcohol represented in the movie, also is unhappy with the depiction of the brand. A representative of William Grant & Sons told the Associated Press, "Considering the subject matter of this film, it is not something in which we would have participated."

These companies may be out of luck. As the Associated Press explains, courts have ruled that movies can use representations of brands without permission:

"Trademark laws 'don't exist to give companies the right to control and censor movies and TV shows that might happen to include real-world items,' said Daniel Nazer, a resident fellow at Stanford Law School's Fair Use Project. 'It is the case that often filmmakers get paid by companies to include their products. I think that's sort of led to a culture where they expect they'll have control. That's not a right the trademark law gives them.'"

Image source.

Discussion Starters:

• What's your view of how alcohol is depicted in the movie? Do these companies have a right to try to protect their brand in this way?
• How do you think Paramount decided to use these brands? Did the movie producers not think about the impact on brands, did they consider the consequences and ignore them, or something else?
• How could this type of situation be prevented in the future? What are the responsibilities of filmmakers and brands?