More Companies Take Action to Curb Gun Sales

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

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

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

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

Discussion:

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

Companies Distance Themselves from the NRA

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

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

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

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

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

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

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

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

Discussion:

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

Newspaper Apologizes for Cartoon

The Albuquerque Journal in New Mexico issued an apology for a cartoon some call racist. Critics say the image advances "the most false and negative stereotype of DREAMers." Of the states, the Hispanic population is highest in New Mexico—48.5%.

In a statement, editor Karen Moses explained the paper's view:

Political cartoons are often satire and poke at more than one point of view. I do not presume to know what cartoonist Sean Delonas was trying to convey in his cartoon that was published in Wednesday’s Albuquerque Journal. But on one level it appeared to us to be poking at President Trump’s rhetoric by portraying a quaking Republican couple who were painting Dreamers with a broad, totally false, brush.

Obviously, that was not the message received by many readers. Instead, many saw an extremely objectionable cartoon and thought that was the position of the Journal. It is not.

In hindsight, instead of generating debate, this cartoon only inflamed emotions. This was not the intent, and for that, the Journal apologizes.

I repeat that the Albuquerque Journal does not condone racism or bigotry in any form.

I also want to reiterate that we do not agree with many of the opinions expressed on the editorial pages, which are intended to encourage debate. Also, the editorial board decides what to publish on these pages, and that is separate from the newsroom and its reporters.

News agencies report conflicting data about crimes rates among immigrants. Compare data presented by The New York Times and Breitbart.

Discussion:

• What's your view of the cartoon: funny, offensive, or something else?
• How well did the newspaper editor handle the response?
• Compare data from these two articles about immigrants: The New York Times and Breitbart. What do they each analyze, and how do they present the data? How do you explain the differences?

Misleading Headlines About the Market Dip

The stock market took a dive this week, but headlines are making it sound worse than it is. Here are three examples:

• FoxNews: "Investors hope for reversal after biggest stock market dip of all time"
• The Guardian: "Australian and Asian stock markets slide after Dow suffers biggest one-day points fall – as it happened"
• CNBC: "Dow's nearly 1,600-point plunge marks its biggest one-day point drop ever"

The headlines are technically correct that a nearly 1,600 point decline is the largest in U.S. history, but looking at only the point value is misleading. A percentage drop would be a better indication of the effect. This table represents the largest daily stock market losses. The display below is sorted by point loss; the table at right is sorted by percentage. You can see that 2018-02-05 falls in rank when we look at the percentage.

Also, the stock market has had incredible gains this past year, so the 26,000+ value could be viewed as an anomaly, and most analysts didn't believe those gains were sustainable.

Discussion:

• What are the ethical considerations for news agencies publishing these headlines?
• What might be a more appropriate headline for the news?

Perhaps this one-year chart helps keep the loss in perspective. It includes today's rebound of 567 points.

Questions of Transparency

The long-awaited memo written by Republican staff members about potential impropriety from the Justice Department and F.B.I in the Russia investigation has been revealed. Now, The New York Times editorial board is calling, once again, for President Trump to reveal his tax returns:

Since the Republicans are now on board with greater transparency, they will no doubt push President Trump to release his tax returns, as every other major-party presidential nominee has done for the past four decades, won’t they?

How about the White House visitor logs, which the Trump administration started hiding from the public last year? Or, say, the names of all foreign governments and officials who have stayed — at their own or at American taxpayers’ expense — at Mr. Trump’s Washington hotel, at his Mar-a-Lago resort in Florida or at his golf courses and his other businesses since he became president? Or the names of every foreign business with which the Trump Organization has a financial relationship, especially in countries where America has sensitive foreign policy interests, like China, India, Russia, Turkey or Saudi Arabia?

The reasoning sounds like reciprocity, but the argument may not get no more traction now than it did during the presidential campaign. A Pew research study in January 2017 showed that 60% of those surveyed believed Trump "has responsibility" to release his returns. Although some were adamant about the release at the time, the Wall Street Journal, for example, reported that the returns wouldn't tell us much anyway.

Discussion:

• What are the advantages and downsides of President Trump revealing his tax returns?
• Read the entire opinion piece. What other arguments do the authors make?
• Do you agree with their reasoning? Why or why not?
• How would you describe the tone? Does the approach help or hurt the argument?

Penn Removes Several Recognitions of Steve Wynn

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

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

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

Discussion:

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

Call for Gymnastics Board to Resign

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

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

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

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

Discussion:

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

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?