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?

Fudging Numbers to Make the NYC Subway Look Better

New York Governor Andrew Cuomo's staff is criticized for inflating power-related issues as the cause of subway failures. Transit officials apparently broadened the definition of power issues so that Con Edison, the local utility company, would be given more of the blame when subways aren't running. Emails were discovered before Governor Cuomo was scheduled to give a breakfast talk, during which he said the number of outages due to power failures was 32,000 in the past year, while the actual number was more like 8,000:

When you we're a kid and you had a train set you had to plug it in. We have to plug in the MTA every morning and the MTA does not control the power supply to the MTA. Over the last 12 months, 32,000 delays because of power related issues and they can either be a power surge or power shortage, but 32,000 delays. The MTA doesn't control the power, Con Edison does. Con Edison has a duty to safely, prudently and effectively provide electricity that powers the subway system. Con Ed is a regulated utility under the state's Public Service Commission. April 21 after the last outage I ordered an investigation of the Con Ed infrastructure after a particularly devastating failure. The investigation goes on but PSC has already found that Con Ed must make immediate and significant improvements in this system because the reliability depends on it.   

The chief of staff of the transit agency wrote in an email that they were "looking for a higher delay number for power." The expanded definition was that ConEd "caused or contributed to" delays. One example is when a person jumps or falls onto the tracks; ConEd will shut off the power for safety. With the new definition, the delay becomes ConEd's fault.

Cover image source.

Discussion:

• We certainly can use numbers to our advantage when trying to persuade others. How does this situation "cross a line"?
• What should Governor Cuomo do now? What, if any, statement would be appropriate?
• Do you remember "Bridegate" in New Jersey? How is this situation similar or different?

Morgan Stanley Clarifies a Termination

In December, a female reporter accused a former congressman who was hired as a managing director at Morgan Stanley of sexual harassment. Morgan Stanley fired Harold Ford Jr., and he lost his gig as a frequent commentator on MSNBC.

Ford had maintained his innocence, and now, the company is saying Ford was not terminated for sexual harassment but was let go because of other misconduct: 

" Morgan Stanley would like to clarify the circumstances of Mr. Ford’s departure. We take allegations of inappropriate conduct seriously, The press has reported that Mr. Ford was terminated for sexual misconduct. He was not. We have not received any internal allegations of sexual harassment or misconduct involving him either before or after his separation became public. As previously stated, his separation was based on corporate policy.”

The statement is curious because it mentions only internal allegations—or maybe I'm reading into it too much.

Discussion:

• How do you read the statement and possible distinction between internal and external?
• Why would Morgan Stanley issue such a statement two months after Ford's termination?

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.

President Trump Refers to "S---hole" Countries

During a meeting about immigration policy, lawmakers heard President Trump ask why the U.S. would admit people from "s---hole" countries like African countries and Haiti instead of places like Norway.

I have refrained here as have some TV news stations (NBC, shown here), but the major print news outlets—NY Times, Washington Post, and Wall Street Journal—all printed the actual profanity. The New York Times explains the decision:

But several media executives said on Thursday that the news value of Mr. Trump’s remarks, which the White House did not dispute, was undeniable.

“It would be futile to mask the word when the language itself, in reference to Haiti and African countries, was so extraordinary,” said The A.P.’s vice president for standards, John Daniszewski.

Discussion:

• Why would some media outlets use the word, while others avoid it? What does the decision involve?
• Some take issue with the reporting about "vulgar," "crude," or "profane" language, calling for the press to call the president a "racist" instead. What are your thoughts? First, does the comment indicate that he is a racist? Second, should the news agencies report this differently?
• An argument could be made that the president is just being himself, authentic. What do you think of this view?

Intel CEO Warns of Vulnerability, a Little Late

The CEO of Intel has bad news: a patch for a chip vulnerability will slow down computer operations. In an interview with Bloomberg, a technology analyst explains the typical process when finding security issues: companies find a bug and solve it before going public. However, this time, an issue known for perhaps a year went unsolved and was kept quiet—until now.

Bloomberg says chip makers had downplayed the effects of the patch, but CEO Brian Krzanich has finally described the issue:

“We believe the performance impact of these updates is highly workload-dependent. As a result, we expect some workloads may have a larger impact than others. As of now we have not received any information that these exploits have been used to retrieve customer data.”

In other words, the patch works but will slow down operations.

A technology analyst says this is the first time chip makers like Intel have gotten caught needing to admit a potential vulnerability, and it's unclear why it hasn't been fixed before this point.

Bloomberg reports on the secrecy and implications:

“Our first priority has been to have a complete mitigation in place,” said Intel’s Parker. “We’ve delivered a solution.”

Some in the cybersecurity community aren’t so sure. Kocher, who helped discover Spectre [a bug], thinks this is just the beginning of the industry’s woes. Now that new ways to exploit chips have been exposed, there’ll be more variations and more flaws that will require more patches and mitigation.

"This is just like peeling the lid off the can of worms," he said.

Image source.

Discussion:

• In what ways did Intel avoid accountability? How did the avoidance affect the company? What would have been a more appropriate response to finding the bugs?
• Distinguish between this computer vulnerability and vulnerability in interpersonal relationships. One is good; the other is not.
• Read the Intel CEO's quote, above. It sounds jargony but was presented at CES, a conference of IT professionals. Did he use appropriate language, or does his word choice demonstrate a lack of transparency? What do you think?

H&M's Product and Photo Criticized

Yet another retailer is criticized for a product and image considered, as Forbes puts it, "racially insensitive." This time, H&M is answering for an image of a black child in a hooded sweatshirt with the message, "Coolest Monkey in the Jungle."

As predicted, the company pulled the product and issued an apology:

"We understand that many people are upset about the image. We, who work at H&M, can only agree. We are deeply sorry that the picture was taken, and we also regret the actual print. Therefore, we have not only removed the image from our channels, but also the garment from our product offering globally. It is obvious that our routines have not been followed properly. This is without any doubt. We will thoroughly investigate why this happened to prevent this type of mistake from happening again."

Still, some people are boycotting H&M, and Grammy winner Abel Tesfaye (aka "The Weeknd") says he is cutting ties with the brand.

Discussion:

• Same question as usual: How did this happen? How could the product and image have passed a review process?
• Abercrombie has been accused of intentionally creating controversial clothing. Do you think this is the case with H&M? Why or why not?
• To what extent is H&M taking responsibility for the incident? What else, if anything, should the company do?

NBC's Integrity Called Into Question

NBC's Twitter account manager overstepped when posting about Oprah at the Golden Globes.  

The company tweeted a correction and removed the post:

"Yesterday a tweet about the Golden Globes and Oprah Winfrey was sent by a third party agency for NBC Entertainment in real time during the broadcast. It is in reference to a joke made during the monologue and not meant to be a political statement. We have since removed the tweet." 

Donald Trump Jr. didn't miss the chance to reinforce his father's criticism of mainstream media as "fake news."

Discussion:

• How well did NBC handle the situation? What else, if anything, should the company do?
• How damaging do you think this tweet is for NBC and for mainstream media?
• To what extent did NBC demonstrate accountability?
• What are the other dangers of outsourcing a Twitter account? (Hint: authenticity)

Banned Words for the CDC?

The Washington Post may have "mischaracterized" a report that the Centers for Disease Control (CDC) was "banned" from using certain words in its budget documents. Reports claimed that the Trump Administration would prevent the CDC from using these seven words: vulnerable, entitlement, diversity, transgender, fetus, evidence-based, and science-based.

But in a Facebook post, CDC Director Brenda Fitzgerald denied such restrictions. She is upholding the integrity of the organization.

What really transpired between the CDC and the Trump Administration? The Human Rights Commission, an LGBTQ organization, wants to know. In addition to projecting the seven words boldly across a Trump hotel in Washington, D.C., in protest, the organization has asked for more information:

"In conjunction with the enormous light display, HRC has filed a Freedom of Information Act (FOIA) with the Department of Health and Human Services (HHS) for any and all records, including communications with the CDC, relating to the banned words from November 2016 onward."

Discussion:

• How is this an issue of integrity for the CDC? What do you think actually transpired between the CDC and the Trump Administration?
• Where do you think the Washington Post went wrong—or did it?
• Assess the CDC director's response. How well did she handle the issue and rebuild the agency's image? 

Alexa at Work?

Amazon's Alexa is coming to the office in the form of Echo. The company wants to install the voice assistant at offices for help with copying, meeting set-up, directions, and more.

Wirecutter describes the technology and use:

What sets Alexa and Echo apart from first-generation voice assistants is responsiveness. There’s no activation button to press. Simply say the trigger word (either “Alexa,” “Echo,” “Amazon,” or “Computer”) followed by what you want to happen, and it will usually be done—as long as you’ve set up everything properly and are using the correct command. Once you get used to the quirks, using Alexa feels much more natural and responsive than speaking to a phone-based voice assistant like Apple’s Siri. As a result, you’ll likely find yourself using your phone less frequently when you’re at home.

Although the technology may be an issue, BBC reports that the bigger issues are privacy and security. After all, Alexa would always be "on" and would hear everything that goes on in the office.

Amazon plans to partner with makers of cars and appliances, so Alexa can be with you at every step. Some analysts think Amazon's big push on Alexa compensates for its not having a mobile phone to compete with Apple and others.

Discussion:

• Do you use a voice assistant? How do you use it, and how does it work for you?
• What's your view of Alexa at work? What privacy and security issues might concern companies?
• Would you recommend Alexa for some types of business but maybe not others? Which?

Should You Leave a Company Involved in a Scandal?

A Wall Street Journal article explores the impact on employees whose company embarrasses them. When mired in a scandal, the company no longer reflects our values, and we may want to end the association.

An employee at Uber, for example, left after news about sexual harassment became public. Her family questioned her affiliation and, as she describes, "staying there would have meant going against what I believe in." Employees who want to live their values may feel better leaving. Of course, this assumes that people have opportunities elsewhere, which isn't the case for everyone.

The article warns against making a rash decision and suggests alternatives:  

WHEN YOUR EMPLOYER'S IMAGE STRESSES YOU OUT

• Take time to calm feelings of stress or anxiety.
• Consider other options before quitting.
• Spend more time on job tasks that are meaningful to you.
• Find something to love in your company's mission.
• Try to fix some part of the company's problem that you can control.
• Strengthen relationships with people at work you enjoy.
• Mentor and encourage subordinates who show promise.
• Work on building skills that will help you in the future.

Discussion:

• Have you been a part of organization that didn't align with your values? How did you handle the situation?
• Which of the article's suggestions do you find most and least useful? Which have you used in the past?

Professor's Derogatory Yelp Review

A Boston University professor posted a Yelp review with personal comments about restaurant employees. Dirk Hackbarth, at BU's Questrom School of Business, didn't like the service at Café ArtScience and wrote a review, referring to the employees' weight. He described the general manager as "fat guy" and wrote of the bar director, "Asian cool skinny dude at bar was friendly but knew he was powerless vis a vis the host - different weight class I guess though fat guy probably never heard of mma [mixed martial arts] tricks etc."

The school dean tweeted,

"We are aware of an inappropriate Yelp review posted by a member of our faculty. It does not represent our views and values. We are extremely disappointed by this occurrence."

The original Yelp post was deleted. Two prohibitions in Yelp's Terms of Service may apply to this situation:

• Writing a defamatory review
• Promoting bigotry or discrimination

Discussion:

• Assess the dean's response. Who is his audience, and what are his objectives?
• Did Yelp do the right thing by deleting the review? Why or why not?
• How do you see this situation as potential issues of humility and integrity? Consider the professor's role and standing at the university.

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?

Two NPR Executives Leave

NPR's head of the news division was forced to resign after two women accused him of sexual harassment. Michael Oreskes admitted his failings in a statement:

"I am deeply sorry to the people I hurt. My behavior was wrong and inexcusable, and I accept full responsibility."

Soon after, NPR's chief executive, Jarl Mohn, announced a medical leave:

"As many of you know, last March, I suffered a nearly fatal ruptured aorta. I returned to work with the blessing of my physician with one important caveat - I cannot allow my blood pressure to rise. Regretfully, the hypertension has returned to a dangerous level."

Mohn said he noticed other issues with Oreskes, for example, inappropriate expense reporting, and took some responsibility for the impact of Oreskes' behavior:

"In retrospect, I did not see the bigger pattern of poor judgment and unacceptable behavior. I am sorry, and I have learned from this."

The news hit the industry hard, partly because we rely on reporters' integrity, particularly when allegations of "fake news" are common on both sides of the political aisle.

Discussion:

• Should we have higher standards for news reporters? Why or why not?
• Did Mohn do the right thing by resigning? What are the arguments on both sides of his decision?

TripAdvisor Identifies Issues at Hotels

TripAdvisor has decided to identify hotels where issues about "healthy, safety, and discrimination" have been reported. Given the increasing conversations about sexual harassment, the company is stepping up, but the notice raises serious concerns for hotels.

Related to this move, TripAdvisor has apologized for removing a post reporting a rape by a hotel security guard. Turns out, other women posted similar reports, and there is a pattern. In a statement, the company also explained its plan to use badges:

Official TripAdvisor Statement Concerning Raquel Rutledge/USA Today Network Story

NEEDHAM, Mass., Nov. 1, 2017

The following is the official statement from TripAdvisor concerning the article by Raquel Rutledge of the USA Today network:

"TripAdvisor's site includes more than 535 million reviews and opinions from global travelers who write about their experiences at hotels, with airlines, restaurants and local attractions. Like any other content business, we work to adhere to publishing guidelines that are in place to ensure the accuracy and integrity of those reviews.

TripAdvisor has always maintained - since our founding - a strict separation between our commerce and content businesses. Despite assertions and statements made by a recent USA Today article, there is no tie between commercial relationships with our partners and how our content guidelines are applied to reviews or forum posts published on the site.  

We apologize to the sexual assault victim reported on in the article, who had her forum post removed seven years ago on TripAdvisor. At the time, we had a policy whereby we judged content to be in breach of our guidelines if it did not adhere to family-friendly language. More than seven years ago that meant all language needed to be G-rated. A few years ago, we changed that policy to allow more descriptive reviews on the site about first-hand accounts of serious incidents like rape or assault. We recognized then that our previous guidelines went too far in preventing information like this from being shared.

Over the last several years, this policy change has yielded many first-hand accounts of serious incidents being published on the platform. A simple search of TripAdvisor will show numerous reviews from travelers over the last several years who wrote about their first-hand experiences that include matters of robbery or theft, assault and rape. We believe any first-hand experience should be posted to our site as a means to communicate to other consumers looking for information on where they should travel.

When we were made aware that this post had been removed under our previous guidelines, we republished it in line with our revised policy.

We are horrified that this victim experienced this assault on her vacation in Mexico, and other travelers should be aware of this incident. 

In order to better inform consumers and provide them with even more information about their travels, TripAdvisor is creating a "badge" notification to apply to businesses to alert consumers of health and safety or discrimination issues at that business reported on within the media or other credible sources of information. 

We will continue to work to improve and evolve our moderation and publishing guidelines as we work to provide the most accurate information in the travel industry available online."

The new badge will read as follows:

Discussion:

• What ethical issues and communication challenges are raised by this decision? Consider perspectives of hotel guests, managers, and staff. What are the potential advantages and potential negative implications? 
• If you owned a hotel that received this badge, what would you do?
• In what ways does TripAdvisor's statement demonstrate compassion? Where does it fall short?

Air Force Admits Failure

The U.S. Air Force admits it didn't properly report Devin P. Kelley's history to federal law enforcement. The error is critical because Kelley's violent past may have prevented him from buying guns he used to kill 26 people in a Texas church. Kelley spent 12 months in prison and left the Air Force with a "bad conduct" discharge after harming his wife and child.

Air Force spokeswoman Ann Stefanek said, "Initial information indicates that Kelley's domestic violence offense was not entered into the National Criminal Information Center database." This omission led to Kelley's passing the background check before he could purchase guns at a firearms retailer.

Of course, the incident raises bigger questions about how often relevant background information is not reported about former service members. U.S. Air Force Sec. Heather Wilson appeared on MSNBC's Squawk Box to admit the failings during a televised interview. When asked whether she was concerned about possible liability from victims' families, she said, "No, I'm more interested in responsibility. And we've taken responsibility, and we're going to find out what happened and fix it.”

Image source.

Discussion:

• The Air Force has readily admitted a critical failing, which could have led to 26 deaths. Why would the organization choose this disclosure?

• Describe how Wilson is demonstrating vulnerability. What are the potential downsides?

We Learn More About Kevin Spacey

Not so shocking, more people are coming forward to complain about Kevin Spacey's sexual behavior. Crew members of "House of Cards" say he created a "toxic" work environment, particularly for young men. A production assistant accused him of assault, and seven others tell stories of aggressive touching, inappropriate comments, and other harassing behavior.

Spacey is experiencing more fallout from the news. In addition to Netflix's ending the show and the Emmy's cancelling a special award, Netflix announced it will not allow Spacey back on set. The company issued this statement: 

"Netflix was just made aware of one incident, five years ago, that we were informed was resolved swiftly. On Tuesday, in collaboration with MRC, we suspended production, knowing that Kevin Spacey wasn't scheduled to work until Wednesday. Netflix is not aware of any other incidents involving Kevin Spacey on-set. We continue to collaborate with MRC and other production partners to maintain a safe and respectful working environment. We will continue to work with MRC during this hiatus time to evaluate our path forward as it relates to the production, and have nothing further to share at this time."

His publicist and talent agency also ended their relationship.

Discussion:

• Knowing more about the complaints now, do you think Spacey should have handled his initial apology to Anthony Rapp and coming out statement differently?
• Assess Netflix's statement: who is the audience, and what are the communication objectives? What works well, and what could be improved?
• What's your view of the publicist ending their relationship? What if the publicist helped Spacey with the initial statement? Does that change your view? Why or why not?

Pizza Hut and Papa John's Jump into NFL Controversy

Should CEOs get involved in political controversies? While some applaud "brand activism," others criticize business leaders who don't agree with their views.

Papa John's CEO has been vocal about the business impact of NFL players not standing during the national anthem. When explaining same-store sales, John Schnatter blamed NFL leadership:

"We are totally disappointed that the NFL and its leadership did not resolve the ongoing situation to the satisfaction of all parties long ago. This should have been nipped in the bud a year and a half ago."

Schnatter also said, "Leadership starts at the top, and this is an example of poor leadership." Schnatter contributed $1,000 to President Trump's election campaign and is aligned with the president's views on the subject. He blamed the "polarizing" actions of team members for causing declining viewership and fewer pizza orders. 

But others say NFL viewership was declining long before this political controversy, and Pizza Hut jumped into the conversation. Greg Creed, CEO of Yum! Brands, Pizza Hut's parent company, said the NFL hasn't affected its sales at all.

Daniel Roberts tweeted stock comparisons on Yahoo to show that Papa John's (in red) has been declining for some time. Yum Brands is in blue. But we should be careful about comparing "apples and oranges" here.

Discussion:

• How is the stock comparison flawed? (Hint: What companies are compared?)
• What do you think of Papa John's CEO's statements? Should he stay out of it, or is he right to express his views?
• How is this story an issue of leader integrity?

Voice Program Makes for a Funny Comment

A comment posted on The New York Times website turned out to be gibberish. The replies were almost as funny as the post. People referred to political parties and Waiting for Godot. One reader understood what happened: a voice-to-text program interrupted the writer.

In response, Christine explained that someone came to her door in the middle of her writing the post. She didn't turn off the program, so whatever she said got translated and posted for all to read. As she describes,

"I was composing a message using the autospeak, and a friend arrived early to my house," she wrote in a reply further down the thread. "I had no idea all that drivel was being recorded - there are even errors in the drivel! And then to be a pick, with about 15 emails announcing such, meant that my email went rogue."

Discussion:

• How have you used voice-to-text programs? What are the benefits?
• This examples gives us one obvious downside of using transcription services. What are some others?