"Gawker Grows Up"

After big executive news last week, Gawker CEO Nick Denton wrote a long message to staff. Gawker's executive editor and the editor-in-chief of Gawker.com resigned after an article, which revealed that a high-ranking magazine executive was texting a gay escort, was removed from the site after a board vote. Denton explained the decision in a post, including, "The point of this story was not in my view sufficient to offset the embarrassment to the subject and his family." 

The executives' perspective, reflected partly in a message from Max Read (editor-in-chief) to Gawker writers, was about the faulty separation between editorial freedom and business (my paraphrase):

"On Friday a post was deleted from Gawker over the strenuous objections of Tommy and myself, as well as the entire staff of executive editors. That this post was deleted at all is an absolute surrender of Gawker's claim to 'radical transparency'; that non-editorial business executives were given a vote in the decision to remove it is an unacceptable and unprecedented breach of the editorial firewall, and turns Gawker's claim to be the world's largest independent media company into, essentially, a joke." 

In his message to staff, CEO Denton discussed these issues and announced management team changes. Part of his post addressed controversy about the removed story: 

"My professional life is committed to a free press and open discourse. While the reputation of our media brands remains a proper concern of the company, we do not and will not make story decisions based on advertiser feedback. Our credibility with both readers and advertisers depends on strong, incisive and independent journalism.

"I will put the company on the line rather than cave to legal pressure from the subject of a story, no matter how powerful. I will preserve Gawker Media's reputation for fighting press freedom cases that other media companies would settle.

"In regards to the recent story about a media executive blackmailed by an escort, I've explained extensively I ordered this misjudged exposé removed because it was not in line with the editorial standards I believe Gawker.com should maintain. And yes, it was also damaging to the brand of Gawker.com and the reputation of the company that shares the same name."

Denton ended his message, "Gawker grows up." 

Image source.

Discussion Starters: 

• Explain the executives' and the CEO's positions on the removed story in your own words.
• How is this story relevant to business communicators? 
• Assess Denton's message to staff. What works well, and what could be improved in the organization, tone, writing style, and so on?

Email Still Prevails

New evidence shows the continued prevalence of email in the workplace. Its demise has been predicted over time, particularly with the increase of social media. But three examples this week tell us otherwise: 

• Eighty-one percent of respondents in a Social Journalism Study by Cision prefer email for story pitches. Thirty percent preferred the phone, and 24% preferred social media. (Respondents could choose multiple methods.) 
• A video, "Email in Real Life," is making the Internet rounds. "A Conference Call in Real Life" was popular a couple of months ago, and this video follows the same corporate humor. 

• Complaints about email persist. A TechCrunch article, "It's All Your Fault Email Is Broken," denies help from programs and instead blames us, the user. The author cites a GFI Software study, which found that 55% of people check email after 11 p.m., 59% check email on vacation, and 76% respond to emails within an hour. A New York Times article tells us to "Stop Checking Email So Often." 

Discussion Starters: 

• The GFI study asked people whether email is a blessing or a curse. Ninety-percent said it was a blessing. What do you think? How would you answer the other questions? 
• How long will email persist in organizations? With so many other tools available, why has it been the default communication for so long?

Toshiba Resignations

Toshiba has announced the resignation of the chief executive and seven other board members in the wake of an accounting scandal. An independent report found that the company had overstated earnings by $1.2 billion over seven years. 

In a news conference, Chief Executive Hisao Tanaka said, "I apologize from my heart to all our stakeholders. To clarify management responsibility, I resign my posts as president and member of the board of directors as of today."

In the Japanese culture, it is traditional to bow deeply, particularly when admitting wrongdoing. Tanaka also said, "The responsibility lies in the management, including myself. As a response, I am stepping down from the post as the CEO and president."

The committee that issued the report found "systematic involvement, including by top management, with the goal of intentionally inflating the appearance of net profits." The committee also wrote, "Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors." 

In a company statement, Toshiba promises changes as a result of the committee's findings, including disclosing the investigation report and correcting past financial statements. 

Image source.

Discussion Starters: 

• What differences do you see in Toshiba and Toyota's news conferences (in 2010) compared to American companies' public hearings, such as GM's? 
• How much confidence do you have in Toshiba after hearing this news? What can the company do to rebuild the brand?

Reddit's CEO Change

Reddit has been a spiral of drama in the past few weeks. Wired gives a useful chronology of the CEO changes and other issues. Ellen Pao was hired as interim CEO in November 2014 after Yishan Wong resigned. Pao had been in the news because she was a junior investment partner at Kleiner Perkins Caufield & Byers and sued the firm for gender discrimination. She lost the suit, which went to trial, in March 2015. 

At Reddit, Pao was criticized for banning several subreddits (topical groups within Reddit). Although Reddit was created as a place for free speech, some of it is hateful. But users felts that Pao overstepped in closing down some sites. More than 200,000 people signed a change.org petition calling for Pao's resignation.

In her resignation post, Pao thanked her supporters but focused on the trolls and hateful comments she had received. She asks people to consider others' humanity and writes, "So why am I leaving? Ultimately, the board asked me to demonstrate higher user growth in the next six months than I believe I can deliver while maintaining reddit's core principles."

According to Wired,

Reddit is home to some of the most hateful content on the Internet, but at least some of it appears to be here to stay. Reddit [new] CEO Steve Huffman said during an AMA [ask me anything] on the site today that the company would ban communities that "incite harm or violence against an individual or group of people," as well as any subreddit that "harasses, bullies, or abuses an individual or group of people."

But he did call out a specific racist subreddit by name-a name so offensive that we won't repeat it here-as an example of the kind of content that would remain, though likely under a new classification-an assurance that brought cheers from the subreddit's members.

Wired also summarizes Pao's resignation:

Some have decried Ellen Pao's resignation from Reddit as a step in the wrong direction for an industry where women leaders are still a distinct minority, but the site's detractors say good riddance. Though Reddit was originally intended as a place where the ideals of free speech and the wisdom of the crowd would reign, often the crowd turned into a mob.

Discussion Starters:

• People are so divided over Pao's resignation. What's your opinion? Was the decision best for the website? What are the consequences? 
• How, if at all, does her Kleiner lawsuit factor into your opinion? What if she had won the case?

Deceptive Native Advertising and Other Issues

After binge-listening to Serial, I'm hooked on StartUp, the show about a new podcast company, Gimlet Media. Episode 9 of Season 1 is an excellent example of crisis communication and some problems associated with advertising. 

A podcast includes an ad of a nine-year-old boy describing how he uses a website. The boy and his mother weren't clear that the interview would be for an ad; instead, the proud mom thought her son would be interviewed for a "This American Life" radio show. In the episode, StartUp founder Alex Blumberg describes the mistake, which wasn't intentional but got a lot of social media attention.

The story reminded me of a study recently published by Reuters Institute. According to the research, "More than a third of British and American readers of online news say they have felt 'disappointed or deceived' after reading an article that turned out to be paid for by an advertiser." This is the dilemma of native advertising, which the Reuters study describes as follows: 

"Brand messages look more like regular content – sitting in the same templates and using the same formats that might be used for a standard piece of journalism or a user-generated post on social media."

Although this isn't quite the same as the StartUp controversy, both methods of advertising need to be handled well. In the StartUp episode, Blumberg describes how careful the company is to let people know an advertisement is coming, so it's not mistaken for program content. Blumberg also explains the value of native advertising but is careful not to endorse products just because they're paid to do so. 

Discussion Starters: 

• What's your reaction to native advertising? Have you been duped? How did you feel?
• What mistakes did the Gimlet team make in Episode 9?
• What are the mother's responsibilities in the situation? What, if anything, could she have done differently?

Companies' Responses to Gay Marriage Ruling

The Supreme Court's ruling in favor of same-sex marriage has inspired many companies to show their support. With popular opinion on their side, 379 companies had encouraged the Supreme Court to eliminate bans across the country. Huffington Post shows a remarkable alphabetical list. 

Now that the decision is made, companies have recolored their logos and written messages to show their support. Ben & Jerry's changed the name of its Chocolate Chip Cookie Dough ice cream to "I Dough, I Dough," with an image of two identical cows holding hands. 

It's interesting to see which companies are vocal. Apple, Google, American Apparel don't surprise me, but Maytag? 

 Discussion Starters: 

• How do companies decide whether and how to show their support? What are the risks either way? 
• Does whether a company shows its support influence whether you would buy its products or services? 

Brian Williams: "I Said Things That Were Wrong"

Brian Williams will be replaced as NBC news anchor following an investigation into his reporting. In an interview with Matt Lauer, Williams admitted stretching the truth in some cases:

"It had to have been ego that made me think I had to be sharper, funnier, quicker than anybody else. Put myself closer to the action, having been at the action in the beginning." 

He said he didn't intend to mislead viewers:

"I told stories that were wrong. It was not from a place where I was trying to use my job and title to mislead...I got it wrong. I own this. And I own up to this."  

NBC announced the decision and Williams' replacement, Lester Holt, on its website. The company included a quotation from Steve Burke, CEO of NBCU, expressing confidence in Williams' future career at MSNBC: 

"As you would imagine this was a difficult decision. Brian Williams has been with NBC News for a very long time and he has covered countless news events with honor and skill. As I said in February, we believe in second chances, and I am hopeful that this new beginning will be good for Brian and the organization. This matter has been extensively analyzed and deliberated on by NBC. We are moving forward."

In that news announcement, Williams offered this apology: 

"I'm sorry. I said things that weren't true. I let down my NBC colleagues and our viewers, and I'm determined to earn back their trust. I will greatly miss working with the team on Nightly News, but I know the broadcast will be in excellent hands with Lester Holt as anchor. I will support him 100% as he has always supported me. I am grateful for the chance to return to covering the news. My new role will allow me to focus on important issues and events in our country and around the world, and I look forward to it."

Discussion Starters: 

• Are you surprised at the decision after reading the news? Why did NBC executives move Williams to MSNBC rather than terminate his contract? 
• How well did Williams handle the apology? What else, if anything, should he say at this point? 

Organic Farmers Displeased with Whole Foods

Whole Foods needs to complete with traditional grocery stores, which are offering more organic items. Arguably, Whole Foods created the market, but stores such as Costco, which sold $4 billion of organic foods in 2014, are increasing their food selection and offer lower prices and one-stop-shopping.

Responsibly Grown is the company's new strategy of labeling foods "good," "better," or "best." 

Although Whole Foods claims to "Reward farmers who work hard to protect human health and the environment," organic farmers say they will no longer benefit from having a federal certified organic designation. According to an organic farmer quoted in The New York Times, "Becoming organic is a big investment of time and money. This ratings system kind of devalues all that - if you can get a ‘best' rating as a conventional farmer using pesticides and other toxic substances, why would you grow organically?"

According to The New York Times, the lines are increasing blurred: 

"Conventional growers can receive higher rankings than organic farmers by doing things like establishing a garbage recycling program, relying more on alternative energy sources, eliminating some pesticides and setting aside a portion of fields as a conservation area."

Matt Rogers, associate global produce coordinator at Whole Foods, says the program gives consumers more choice and encourages conventional farmers to move toward the organic standard, which currently doesn't include "water, waste, energy, farmworker welfare."

Discussion Starters: 

• Do you consider Whole Foods' new rating system ethical? Use the Guidelines for Ethical Decision Making in Chapter 1 to form your opinion. 
• What's your view of the Responsibly Grown program? Do you tend to side with Whole Foods' or the farmers' perspective?

Supreme Court Rules Against Abercrombie on Hijab

The Supreme Court settled a case about Abercrombie & Fitch for denying a Muslim woman a job because she wore a headscarf, or hijab, for religious reasons. After the applicant's interview, the assistant store manager deemed her qualified for the job, but the district manager said her hajib would violate the company's dress code. 

This is a major win for the Equal Employment Opportunity Commission (EEOC), the federal agency that brought charges against the retailer. The Society for Human Resource Management summarizes the decision: 

"In an 8-1 opinion, the U.S. Supreme Court held that an employer may not refuse to hire an applicant if the need for a religious accommodation was a motivating factor in the employer's decision, unless accommodation would pose an undue hardship.

"The prohibition on refusing to hire an applicant to avoid accommodating a religious practice does not apply, as Abercrombie argued, only where an applicant has informed the employer of her need for an accommodation."

Image source. 

Discussion Starters: 

• What's your view of the case? Consider the legal requirements described by SHRM as well as Abercrombie's perspective. 
• How would you react if you shopped at Abercrombie and saw an employee wearing a headscarf? 

Facebook Encourages a $15 Wage and Other Benefits

Facebook is taking a stand to increase wages. In a statement, COO Sheryl Sandberg described new standards for companies who want to do business with Facebook. The first paragraph is shown here: 

Sandberg writes that this is "the right thing to do for our business and our community." She also mentions, "We've been working on these changes for some months and had originally planned to announce this last Monday." Monday was May 4; sadly, Sandberg's husband, SurveyMonkey CEO Dave Goldberg, passed suddenly on May 1. 

Read more.

Discussion Starters: 

• What's your view of Facebook's position? Why would the company jump into this controversial debate? Consider Sandberg's history. 
• Is it fair for Facebook to require these standards of its suppliers? What are the potential consequences? Read the entire post, so you know what the company is requiring. 
• Why did Sandberg mention the company's original date for the announcement? How do you expect people to react to this? 

Welsh Bus Company Rethinks Sexy Ad

Are people just too sensitive, or did this Welsh bus company cross a line with its ad? The picture of a naked woman with a provocative line was created for a Cardiff, Wales, company promoting its cross-city service.

A representative for the Advertising Standards Agency reported 45 complaints and told Business Insider, "We've received complaints about this ad, but we understand that the advertiser will be taking it down within the next 24 hours and has removed its accompanying tweet in response to the concerns it's received. We'll continue to monitor the situation in case further action is needed."

On Twitter, New Adventure Travel promised to take down the ads: 

In view of the reaction to our bus advertising today we wish to set out our position:

Firstly we have stated that our objectives have been to make catching the bus attractive to the younger generation. We therefore developed an internal advertising campaign featuring males and females to hold boards to promote the cost of our daily tickets.

The slogan of 'ride me all day for £3' whilst being a little tongue in cheek was in no way intended to cause offence to either men or women and, if the advert has done so then we apologise unreservedly. There has certainly been no intention to objectify either men or women.

Given the volume of negativity received we have decided to remove the pictures from the back of the buses within the next twenty four hours.

Discussion Starters: 

• What's your view? Is this just a catchy ad and people are too sensitive? Or is the ad potentially offensive?
• What, if any, cultural differences are at play? How do you think this would be received in the United States?
• How do we decide what "crosses a line"? What criteria do you use to form your opinion? 
• Did New Adventure Travel do and say the right thing?

RBS Executive Leaves After Snapchat Photos Become Known

Rory Cullinan, the chairman of the Royal Bank of Scotland's investment bank, will leave the company by agreement. The news followed shortly after Snapchat images became publicly known.

Last year, Cullinan sent his daughter Snapchats with captions saying, "Not a fan of board meetings xx," "Boring meeting xx," and "Another friggin meeting." Snapchats don't last-unless, of course, someone takes a screenshot and posts them to Instagram, as his daughter did, with the message, "Happy Father's Day to the indisputable king of Snapchat."

Cullinan was with the bank for six years but in his current role for only two months. The Telegraph reported that critics didn't think McEwan took his role seriously, particularly because the bank is mostly owned by the government. RBS CEO Ross McEwan gave this statement:

"We would like to express our thanks to Rory for his very significant contribution to the rebuild of RBS over the past 6 years. He has built and led APS, Non-Core, RCR and recently completed the very successful follow-on sale of Citizens post its IPO last year. We wish him every success in the future."

Cullinan said, "I am pleased and proud to have played a significant part in restoring RBS to a safe and sound agenda over the past 6 years. I wish all my colleagues continued success."

In his defense, someone wrote on the Telegraph site: "Personally I think any sane well adjusted adult would find those sort of meetings boring. If there any grounds for criticism it is that he didn't cut the number of unnecessary meetings typical in large banks."

Image source.

Discussion Starters:

• Was it the right decision for Cullinan to leave the bank after six years? Why or why not?
• What's your view of the comment about boring meetings in large banks?
• In what ways, if at all, does it matter that the bank is mostly government owned?
• Does anyone else find it strange for a father to send such messages to his daughter and for her to post them on Instagram? 

Facebook's Community Standards

Facebook provided more detailed "Community Standards," which include the social network's approach to government requests. Requests for data and to restrict content were up to 35,051 in 2014.

The new guidelines specify what's acceptable and unacceptable in four categories:

• Keeping you safe (e.g., self-injury, bullying and harassment)
• Encouraging respectful behavior (e.g., nudity, hate speech)
• Keeping your account and personal information secure (e.g., authentic identity, fraud and spam)
• Protecting your intellectual property.

The Community Standards are particularly relevant this week, as a Penn State fraternity was suspended for having photos of nude women and other offensive images on "secret" Facebook pages.

Discussion Starters:

• What is the purpose of the Community Standards? Identify three or four specific communication objectives. Consider all of Facebook's many constituencies. 
• Which of the Standards do you find most and least clear? 
• Assess the video above. What's your view of the content and graphics?

Oklahoma Students Expelled for Racist Chant

Students at the University of Oklahoma are paying the price for participating in a racist chant caught on video. Two students at Sigma Alpha Epsilon were expelled for "creating a hostile educational environment for others," and the university chapter was closed. (Read letter to students.)

Students seem to be chanting the following:

There will never be a n** at SAE
There will never be a n** at SAE
You can hang him from a tree
But he'll never sign with me
There will never be a n** at SAE

Another video shows the chapter's house mother using the "N-word" repeatedly.

The national chapter of Sigma Alpha Epsilon issued a statement, including the following:

"In separate statements, the two men who have been expelled from the university have mentioned that the song was 'taught to us.' However, as has been maintained in previous statements, the national fraternity does not teach such a racist, hateful chant, and this chant is not part of any education or training. Our investigation has found very likely that the men learned the song from fellow chapter members, which reiterates why Sigma Alpha Epsilon did not hesitate to close the chapter completely because of the culture that may have been fostered in the group."

The incident raises issues of "serious lack of mature oversight," according to a lawyer on another case against the fraternity. In 2011, a Cornell University African-American sophomore died following a hazing ritual at SAE. George Desdunes was blindfolded and tied up. He died of alcohol poisoning. Although the fraternity was cleared of criminal wrongdoing, there were other charges, and the case is being pursued in civil court.

Attorney Douglas Fierberg said,

"By allowing teenagers to make these decisions independent of adult guidance, you can end up with a chapter gone far awry with things like this, even injury and death. Many of these chapters insist on self-management. But it's that very thing that makes them far more riskier than any other organization in the entire nation."

Discussion Starters:

• One SAE student and the parents of another wrote apologies. What else, if anything, should be done at this point?
• A writer for the The Washington Post said the expulsions are unconstitutional, based on the First Amendment. Read the article and discuss your perspective.

Hillary Clinton Discusses Personal Email Situation

At a news conference, Hillary Clinton describes how she used her personal email account while she was Secretary of State, a position she left two years ago. Clinton says she used one account (one device) for all emails for "convenience."

Her view is that work-related emails were sent to .gov accounts, so they are saved. For others, she says she followed the federal guidelines that "for any government employee, it is that employee's responsibility to determine what's personal and what's work related."

Full news conference.

Clinton says she regrets not using two separate devices but is glad that her personal email will become public. She sounds confident that no wrongdoing will be uncovered. According to The New York Times, about 30,500 personal emails have been given to the State Department in December, but another 32,000 have been deleted.

The Times article also questioned her explanation of wanting to carry just one device:

"Mrs. Clinton's explanation that it was more convenient to carry only one device seemed at odds with her remark last month, at a technology conference in Silicon Valley, that she uses multiple devices, including two kinds of iPads, an iPhone and a BlackBerry. She said then: 'I don't throw anything away. I'm like two steps short of a hoarder.'"

Discussion Starters:

• How do you think this controversy might affect Clinton's pending candidacy for president?
• What's your view of The Times' criticism of her carrying just one device, although she says she doesn't throw old devices away. Is this the same thing?

Print Lives (at JCPenney)

JCPenney is bringing back its hefty (120-page) print catalog. After reviewing data from online sales, the company recognized that, although people bought online, they were inspired by print photos.

It's been six years of focusing on web marketing, but the Consumerist explains the turnaround: 

"The catalog has been revived by the executive who killed it off in the first place, chairman and CEO Myron Ullman. The company assumed that catalog shoppers would switch to making their purchases online, as they have at other retailers. That wasn't the case: Ullman says that the company discovered that many online sales actually began when the customer was flipping through a catalog offline."

The Consumerist compares JCPenney's strategy to Restoration Hardware's. I'm not on the mailing list, but apparently the company distributes a 17-pound catalog. 

Image source. 

Discussion Starters: 

• What are the company's considerations in bringing back the catalog? Why do you think the management team discontinued it six years ago? 
• How do you see print and online ordering working together? What's your own process for shopping on the web?

Facebook Time, Multitasking, and Students' Performance

A study published in the Journal of Applied Developmental Psychology correlates time spent on Facebook and multitasking with poorer academic performance. An Iowa State researcher studied 1649 active student users, and found that seniors spent less time on Facebook and less time multitasking than freshmen, sophomores, and juniors.

Time spent on the site was negatively predictive of freshmen's GPA, and multitasking was negatively predictive of GPA for all ranks but seniors. 

Discussion Starters:

• What, if anything, about these findings surprise you?
• The respondents attended Iowa State University. Do you think the results would differ at other universities?
• What cautions would you raise about the findings?

McDonald's "Signs" Campaign

McDonald's is trying another tact for improving business. The latest marketing campaign, "Signs," shows the company standing by the community in times of tragedy. 

McDonald's is certainly taking different approaches from simply promoting the taste of its food. The previous campaign focused on how food is made-an attempt at transparency, which worked for some but not everyone. The same could be said of this one. 

Steve McKee, president of an ad agency in Albuquerque, complimented the approach: "I thought the ad was awesome. It's clear that all the billboards were real. It was demonstrating that McDonald's is Americana." Some say the ads distinguish McDonald's from Wendy's, Chipotle, and Burger King, which couldn't make such claims.

But others say the company is capitalizing on tragedy. And of course, any campaign is an opportunity for ridicule. 

Discussion Starters: 

• Describe the ad strategy. What objectives is McDonald's trying to achieve?
• What's your view of the campaign: tasteless, clever, or something else?

Study: Check Email Less Often

A new study from the University of British Columbia's psychology department tells us to stop checking email so frequently. The study asked one group of subjects to turn off their email alerts and check email only three times a day for a week. Another group was told to check email as many times as they would like. Then, the groups switched for a second week. 

Published in Computers in Human Behaviour, the study showed that checking email leads to feelings of stress and tension. Subjects answered the following questions: 

• How often have you felt that you were unable to control the important things in your life?
• How often have you felt nervous and stressed?
• How often have you found that you could not cope with all the things that you had to do?
• How often have you been angered because of things that were outside of your control?

Image source.

Discussion Starters: 

• Do these results surprise you? 
• How realistic is it to check email just two or three times a day at work? 
• What could you do to limit the number of times you check email throughout the day?

Ogilvy Apologizes for Distasteful Ad

Ad agency Ogilvy & Mather has apologized for an offensive ad produced for Kurl-on, an Indian mattress company. What could go wrong when portraying a 14-year-old Taliban shooting victim in a cartoon? 

The company wanted to show that heroic figures "bounce back," but the ad doesn't quite work. The New York Times describes Malala Yousafzai, featured in the promotion: 

"At the age of 11, Malala Yousafzai took on the Taliban by giving voice to her dreams. As turbaned fighters swept through her town in northwestern Pakistan in 2009, the tiny schoolgirl spoke out about her passion for education - she wanted to become a doctor, she said - and became a symbol of defiance against Taliban subjugation."

Two other ads in the series aren't much better. Steve Jobs is shown pushed out a door, and Gandhi is thrown from a moving train. 

Before this one hit paid media outlets, online news organizations flagged the image. Although Kurl-on hasn't responded to inquiries, Ogilvy issued this statement: 

"We deeply regret this incident and want to apologize to Malala Yousafzai and her family. We are investigating how our standards were compromised in this case and will take whatever corrective action is necessary."

Discussion Starters: 

• How do Kurl-on and Ogilvy share responsibility for the ad? How did this happen? 
• The ad was created in Ogilvy's Indian office and produced in a Chilean studio. How, if at all, do these facts affect your thinking about the ad?