Biles Handles the Media

In addition to winning an Olympic gold medal for gymnastics, Simone Biles made headlines for handling two difficult situations beautifully. 

Tired of hearing some media coverage for the games, Biles shot back, "I'm not the next Usain Bolt or Michael Phelps. I'm the first Simone Biles." An article in The Atlantic called NBC's coverage of the Olympics:

The coverage of women's gymnastics has a long tradition of emphasizing the contrasts of its competitors: traditional girlishness on the one hand, traditionally masculine qualities-"power" chief among them-on the other. And NBC's gymnastics commentators (under a mandate from NBC to address themselves to a notional "Madeleine in Middle America, who doesn't know gymnastics") have reveled in those easy contradictions. Biles stands, they have emphasized, at only 4 feet, 8 inches tall. She giggles a lot. A promotional package NBC aired during Rio's women's gymnastics qualifying round featured Biles's parents talking about her love for shopping. It also showed her getting a manicure.

The article went on to say it was as though NBC were saying, "Look at that girl do all that! She's powerful like Michael Phelps, but a girl!."

In another incident drawing attention to her (and needing her attention to clear things up), an NBC commentator, Al Trautwig, referred to her parents as Biles's grandfather and his wife. The couple legally adopted and raised Simone. Trautwig repeated his position on social media.

Biles simply said, "I personally don't have a comment. My parents are my parents, and that's it."

Image source.

Discussion Starters: 

• Biles is getting a crash course in media attention. Do you agree with my assessment that she's handling it well? What else can she do? 
• Read The Atlantic article about NBC's portrayal of women and the Olympics. Do you agree with the author's criticism? What rings true for you, and what doesn't? 

Taking Offense

Two groups are backtracking this week for offensive symbols and language. Are people too sensitive, or should marketers be more careful? 

The Trump campaign for president created the first failing: a logo that looked pornographic to some people. A Slate article is titled, "A Hard Look at the Trump-Pence Campaign's Penetrating New Logo." Twitter jokes abound: 

• @ellievhall: "When two people love each other very much and want to start a campaign together..."
• @willrahn: "How are we supposed to explain the new Trump logo to our children??"

Although the Trump campaign hasn't responded specifically, the logo no longer appears on the website.

In other news, Forever 21 has pulled t-shirts for boys with sayings such as, "Sorry, I only date models," "Chicks are all over me," and "Ladies Man." Critics say the t-shirts sexualize children. 

Forever 21 communicated the decision in a statement: "Forever 21 takes feedback and product concerns very seriously. With regards to the T-shirts in question, after receiving feedback we have taken immediate action to have them removed from our website.  We sincerely apologize to anyone who was offended by the products."

Discussion Starters: 

• What's your opinion to the initial question: Are people too sensitive, or should marketers be more careful? 
• Did the Trump campaign and Forever 21 do the right thing in pulling the logo and t-shirts? 
• Should the Trump campaign communicate anything else at this point? Did the Forever 21 statement say enough? 

Chipotle's New Film Short

Chipotle needs to win back customers, so it went back to its film-making roots and created a new short video: "A Love Story." 

Kids with competing lemonade and orange juice stands grow each and lose sight of natural ingredients. Set to the Backstreet Boys' "I Want It That Way," film is a direct hit to fast-food restaurants like Burger King. The last line is "I never want to hear you say, 'I want it that way.' " The couple, of course, return to fresh fruits and vegetables and live happily ever after.

The end of the video announces Chipotle's rewards program. Like the free burrito, this is a another attempt to rebuild loyalty.

Mark Shambura, Chipotle's brand marketing director, explained the goal: "We think 'Love Story's' message will galvanize our loyalists and remind people of the Chipotle they love." Shambura is not to be confused with Mark Crumpacker, the company's former chief creative and development executive who, before being placed on leave because of a drug arrest, led the company's rebranding efforts.

Discussion Starters:

• One analyst warns that Chipotle shouldn't ignore the core issue of how the company is overcoming the crisis of food safety. How well do you see Chipotle explaining new procedures, etc. to consumers?
• Chipotle's video short, The Scarecrow, with more than 16 million views on YouTube, has been criticized. Some say Chipotle didn't live up to its claims even before the E. coli outbreaks; for example, what does "naturally raised" mean? What criticism could you foresee with the "A Love Story" short?

Red Cross Apologizes for Poster

The Red Cross tried to be inclusive by showing kids of different races in its "Be Cool, Follow the Rules" poster about pool safety. But when you look closely, you see that most white kids are "cool," and most kids of color are "not cool." 

The "not cool" kids of color are running, diving over a white kid, and pushing a white kid. The Red Cross responded directly to tweets, for example, "@EmmyBetzThank you for bringing this to our attention. We're removing this from our site immediately & are creating new materials," and "@Jsawyer330We removed this poster within 24 hours. We didn't scrutinize it like we should have, and apologize for any offense." 

In addition, the organization issued this statement:

Red Cross Issues Statement on Water Safety Poster

June 27, 2016

Monday, June 27, 2016 (Washington, D.C.) – The American Red Cross appreciates and is sensitive to the concerns raised regarding one of the water safety posters we produced. We deeply apologize for any misunderstanding, as it was absolutely not our intent to offend anyone. As one of the nation's oldest and largest humanitarian organizations, we are committed to diversity and inclusion in all that we do, every day.

To this end, we have removed the poster from our website and Swim App and have discontinued production. We have notified all of our partner aquatic facilities requesting they take down the poster. Our organization has emphasized to our partners and on social media that it was absolutely not our intent to offend anyone and apologized for this inadvertent action. We are currently in the process of completing a formal agreement with a diversity advocacy organization for their guidance moving forward.

For more than 100 years, part of the Red Cross mission has been to help everyone be safe in, on and around the water. Countless lives have been saved with our water safety educational and aquatics programs. In order to further support our mission and dedication to inclusion, we launched our Aquatics Centennial Campaign (www.redcross.org/centennialswim) in 2014. We are working to reduce the drowning rate in 50 high-risk communities over a 5-year period by helping to teach at least 50,000 more children and adults to swim. With this campaign, we are focusing on areas with higher-than-average drowning rates and participants who otherwise wouldn't have the opportunity to take swim lessons.

Once again, we apologize for any inadvertent misunderstanding with regard to the production of this poster, and believe we have taken every step to address the situation.

Discussion Starters: 

• What's your view of the poster? A lifeguard called it "super racist." Do you agree?
• Assess the Red Cross's statement. How does the organization use principles of persuasion to address concerns? 

Lancome Criticized for Cancelling a Performer

The cosmetics company Lancome had hired Denise Ho, a Canto-pop star, to perform at a free concert. A democracy activist, Ho was criticized by a Bejing paper, and Lancome cancelled the show. The company now faces criticism, which the South China Morning Post says is its own fault:

"What's a definite no-no is to hire someone like Ho and then promptly ditch her after an official mainland newspaper complains. That not only makes you look spineless and unprincipled, it shows you are incompetent, which is more unforgivable in the corporate world." 

Ho had questioned the decision in a statement posted in Chinese on Facebook:

I understand that this was a decision made by Lancôme's head office. Here I demand Lancôme's head office spell out the reasons behind the decision. The company owes me and the public a proper explanation.

Freedom, justice and equality are the values cherished by the people of Hong Kong. If we are penalised for defending our rights and upholding our beliefs, this is not just about me any more. Our value system has been completely distorted.

The company made one short statement: "Hong Kong Actress Denise Ho is not a spokesperson of LANCOME. We are sorry for the confusion caused. Thank you for your continuous support to LANCOME." 

Of course, that wasn't enough, and a longer statement, shown here, came later. 

Discussion Starters:

• Ho was arrested in the 2014 Umbrella Movement. Should Lancome have known better? Or stuck with its initial decision?
• Assess Lancome's statements. What else, if anything, should the company say?

Zoo Defends Killing Gorilla

Although reports say a boy "fell" into a gorilla cage at a the Cincinnati Zoo and Botanical Garden, the zoo says the boy "climbed through a public barrier." Harambe the gorilla was shot and killed on the spot. A YouTube video showing part of the incident received more than 14 million views so far, and people on both sides of the argument are outraged. 

With the hashtag #JusticeforHarambe, animal activists and others question the zoo's decision and blame the parents.

People for the Ethical Treatment of Animals (PETA) says this situation is another example of why people shouldn't gawk at animals in captivity.

The zoo explained the decision in a media statement, in a Facebook post, and during a press conference. The director scolded people who dispute the decision, saying they don't understand silverback behavior and weren't there to assess the situation. He has a point: people view a one-minute clip on YouTube and decide that the gorilla was holding the boy's hand and helping him to safety. But what do we know? 

Discussion Starters: 

• What's your view, given what you have read about the situation? Did the zoo act appropriately? What else would you like to know in order to make a judgement call?  
• Assess the zoo's three communications:  media statement, Facebook post, and press conference. What, if anything, can management do differently to address the criticism? 

Persuasion for Britain to Leave the EU

British celebrities have joined forces and signed a letter to convince Britons to stay with the European Union. 

 

In the letter, 282 big names (most of which I never heard of) from film, fashion, art, music, and theater focus on "EU markets and influence, access to EU funding, and movement of talent." The letter body follows:

The EU referendum marks the biggest democratic decision of our time, and the outcome will have lasting and far-reaching consequences for the future of this country for generations to come.

The referendum forces us to look in the mirror and ask ourselves: what kind of nation do we want to be? Are we outward-looking and open to working with others to achieve more? Or do we close ourselves off from our friends and neighbours at a time of increasing global uncertainty?

From the smallest gallery to the biggest blockbuster, many of us have worked on projects that would never have happened without vital EU funding or by collaborating across borders. Britain is not just stronger in Europe, it is more imaginative and more creative, and our global creative success would be severely weakened by walking away.

And what would ‘Out' really mean? Leaving Europe would be a leap into the unknown for millions of people across the UK who work in the creative industries, and for the millions more at home and abroad who benefit from the growth and vibrancy of Britain's cultural sector.

From the Bard to Bowie, British creativity inspires and influences the rest of the world. We believe that being part of the EU bolsters Britain's leading role on the world stage.

Let's not become an outsider shouting from the wings.

Creative Industries Federation survey

Among reasons cited for the vote of confidence in Europe by Creative Industries Federation members were:

Access to EU markets and influence - the EU is the largest export market for the UK creative industries, totalling 56% of all overseas trade in the sector. It is vital that Britain is able to influence regulatory discussions which may have a bearing on future trading, such as the current discussions around the creation of the Digital Single Market.

Access to EU funding – the Creative Europe programme has provided seed funding for films such as The King's Speech, The Iron Lady and Slumdog Millionaire. ERDF funding has provided vital support to arts organisations in the regions, including the Liverpool Everyman and Sage Gateshead. In addition, Federation cultural education members benefit from the €80bn innovation fund, Horizon 2020. All this could be imperilled.

Movement of talent – the UK is a creative hub. Close collaboration with EU partners is key to Britain maintaining this position. From orchestras to art schools to architecture firms, the UK's creative industries are enriched by the diversity of cultural exchange and strengthened by the movement of talent across the EU.

The creative industries have been the fastest growing sector of the UK economy since 2008 and added £84.1bn GVA to the economy last year.

The creative industries employ 1.8m people in this country (1 in 17 jobs in the UK; and 1 in 8 jobs in London). [DCMS stats from January 2016 – 2014 figures].

The creative economy (includes the contribution of those who are in creative occupations outside the creative industries) employ 2.8m people in this country (1 in 11 jobs in UK; and 1 in 6 jobs in London).

Not everyone agrees. A columnist for The Guardian wrote an article titled, "The luvvies' Brexit letter only shows most people vote with their wallets." According to The New York Times, "luvvies" is "a satirical term borrowed from Private Eye magazine to describe Britain's self-enamored stars." 

The New York Times article compares this effort to another political celebrity move:  J.K. Rowlings opposed Scotland's independence, and didn't win herself any favors as a result.

Image source.

Discussion Starters: 

• How convincing do you find the celebrities' letter? Which are the strongest and weakest arguments? 
• What's your view of celebrity involvement in political controversies? How does these differ, or do they, from celebrity product endorsements?

Amtrak Apologizes, Again

It took a year, but the National Transportation Safety Board (NTSB) finally announced the cause of an Amtrak crash in May 2015 that killed eight and injured about 200 people. The driver had accelerated to 106 mph, although the limit for a curve on the track was less than half that. Turns out, the driver was distracted by an emergency situation involving another train, which the driver heard on the radio. The NTSB press release calls this "the result of a loss of situational awareness." 

The NTSB report includes 11 safety recommendations and notes that "positive train control, a technology that could have automatically stopped the train and prevented the derailment" wasn't in place. Amtrak has since implemented the technology and issued this statement, included in a Yahoo article: 

"Amtrak has taken full responsibility for and deeply regrets the tragic derailment of Northeast Regional Train 188. Our hearts go out to the families who suffered a loss, the passengers and employees who were injured and to everyone onboard the train," the company said in a statement, adding that they would "quickly implement" the NTSB's recommendations after a review.

On its Facebook page last May, Amtrak wrote this apology. Both statements are big improvements over the service updates we usually see from Amtrak and MetroNorth after accidents. Of course such updates are important, but so are apologies-and not only when the company is found to be at fault.

Image source.

Discussion Starters: 

• Compare the two apologies from Amtrak. Should the organization do something differently now? 
• How can transportation companies balance important service updates with apologies in crisis situations? 

Priceline CEO Resigns

Priceline CEO Darren Huston has resigned after a relationship with an employee became known. A former CEO, Jeffery Boyd, will serve as interim CEO, and COO Gillian Teams will replace Huston as Booking.com's chief, which was also Huston's position. Booking.com is a unit of Priceline Group.  

Priceline denies any connection between company performance and Huston's departure. Huston has had some big wins as CEO: acquiring OpenTable, signing a booking agreement with TripAdvisor, and seeing company revenue increase almost 36% since taking over in January 2014.

The company also says that the employee wasn't under Huston's direct supervision, although, as CEO, all employees eventually report into him. In a statement, Priceline said Huston "had engaged in activities inconsistent with the board's expectations for executive conduct, which Mr. Huston acknowledged and for which he expressed regret." The former CEO received a salary of $22 million and won't receive any severance pay.

The lead investigator of the incident said, "I am satisfied with the board's thorough review of this issue. The performance of the business under Darren has been strong, and the company is very well-positioned to continue executing on its strategy for growth. Jeff is deeply familiar with the company's strategy and leadership team, which consists of highly accomplished entrepreneurs and seasoned professional executives with long tenure in the business.  We are confident the company is in strong hands while we conduct a search for a new CEO."

Discussion Starters: 

• Why would Priceline emphasize that the employee wasn't a direct report? Does it matter?
• Priceline has no statement on its website. Should the company post something? Why or why not, and if so, what should the statement say?

Target Defends Inclusive Bathrooms

Despite the controversy, Target is not backing down from its plan to allow transgender people to use the bathroom and fitting room they prefer. The company points to inclusivity as a core belief.

Backlash came most intensely from the American Family Association, which started a petition for people to boycott the retail chain and received more than 517,000 signatures. The petition suggests that Target instead install unisex bathrooms, but Target spokesperson Molly Snyder said that hundreds of stores already "have single-stall, family restrooms for those who may be more comfortable with that option." Snyder also said, "We certainly respect that there are a wide variety of perspectives and opinions. As a company that firmly stands behind what it means to offer our team an inclusive place to work - and our guests an inclusive place to shop - we continue to believe that this is the right thing for Target."

The group's concern seems to be about sexual predators; apparently, they don't understand the difference between a predator and someone who is transgender. This FAQ from GLAAD explains the term.

Discussion Starters:

• How would you explain the issue to someone who knows nothing about gender identity?
• Assess Target's statement. Is this the best approach to the controversy?

Lyft's First TV Commercial

With a bit of assonance and a lot of humor, Lyft creates its first television ad. The tagline is, "Riding is the new driving," and it shows all the discomforts and inconveniences of driving: traffic, accidents, and getting a ticket. 

Lyft's creative director, Jesse McMillin told AdWeek,

"Obviously as we grow and continue to evolve as a brand, we want to make sure we're constantly pushing ourselves to have a vibe and aesthetic that feels professional and cool. But in doing that, we also want to make sure we stay true to the roots of the company. That's really what informs us more than what any of our competitors are doing."

In a second video, Lyft's executives describe the approach of the ad to convey the main point: ride-sharing is the better choice. 

Lyft has had fun with other YouTube videos. Hall of Fame wide receiver Jerry Rice picks up a few people and chats them up, but he says, "I'm not really into sports." Before he reveals his true identity, he stops the car to stretch, take a nap, and dance with a few people. Racecar driver Danica Patrick also makes an appearance as a Lyft driver-a fast one. 

Discussion Starters:

• What's your view of the commercial? Do you find it as entertaining as the Lyft executives intended? 
• What makes the commercial memorable?

Did Airbnb Depress Hotel Rates?

For the first time, I've seen a claim that Airbnb has affected hotel rates in New York City. A New York Post article, "Airbnb's cheap rates hurt Big Apple hotels big time," says that it's 1.7% less expensive to stay in a hotel in NYC this year than it was last year. Hotel stake owner  Richard Born says, "If Airbnb were to go away, room rates would go up by 15 percent." 

Students may see this as a single-cause fallacy, and they may be right: new hotel development added 30,000 rooms to the city this year. But Mark VanStekelenburg, managing director of CBRE Hotels, points to Airbnb's $80-per-room average rate and says that Airbnb rooms "account for" between 12 and 20% of all hotel rooms. 

Born also says, "Anyone who says Airbnb is not affecting NYC hotels is an idiot or hired by Airbnb to say that." 

Image source.

Discussion Starters: 

• Do you believe that Airbnb is to blame for declining NYC hotel rates? Why or why not? 
• What are the implications either way? How, if at all, should Airbnb respond to these accusations? 

Verizon CEO Responds to Criticism

A Verizon strike has put the CEO under pressure to explain worker pay and taxes. Employees in two unions have walked out after failed contract negotiations.

In a press release, union leaders from the International Brotherhood of Electrical Workers (IBEW) explained the reason for the strike, including this quotation from the president: 

"No one wants to go on strike, but Verizon-this immensely profitable company-is putting the squeeze on hard-working men and women who just want to come to work, do their jobs and be treated fairly."

Verizon's press release blames the unions for ending negotiations and refusing mediation. The company calls out union leaders for "ignoring today's digital realities" and focuses on the impact of the strike on customers: 

"Millions of Americans rely on Verizon for the ability to communicate, 24 hours a day, 7 days a week. We remain fully prepared to handle any work stoppage so that our products and services will be available where and when our customers need them."

Presidential candidate Bernie Sanders has gotten into the fight: 

Although CEO Lowell McAdam didn't address his own pay, he did respond to Bernie Sanders in a LinkedIn post. He focused on Verizon's contribution of taxes and employment. Like the press release, McAdam emphasized changing technologies and the need to keep pace. 

Discussion Starters: 

• Read arguments on both sides. Which are the strongest and weakest? With which do you most agree? 
• Assess McAdam's LinkedIn post. How well does he address Sanders' criticism? 

Amtrak Response to Crash

Once again, a rail crash brings mostly service updates-no apologies on its website and in the press. An Amtrak train struck maintenance equipment in Chester, Philadelphia, killing two maintenance workers and injuring 34 passengers and an engineer. The derailment disabled the internal communication system, so passengers in some cars didn't receive information for a half-hour after the accident.

According to a Reuters report, Amtrak has little to say:

Amtrak spokesman Mike Tolbert said the railroad was operating its normal schedule of train service along the busy Northeast rail corridor on Monday. He referred all other questions to the NTSB, which did not immediately respond to a request for comment.

As usual, the railroad's website is focused on service updates with nothing in the way of an apology. The "News Release" page shows two posts, one announcing the service disruption and another announcing the restoration plan. This was also the case in a Metro-North derailment in 2013 that killed 4 people.

Likewise, the Amtrak Facebook page gives only service updates.

To find an apology, we need to go to back to a 2015 crash. At the time, Amtrak's Facebook page did express some sentiment, although it repeats in subsequent posts, "We are deeply saddened by the loss of life." The second post conveys the message well:

As always, our first concern is taking care of our customers and employees. We have established a Family Assistance Center in Philadelphia to work closely with the family of passengers and crew on the train. Family members are encouraged to call the Amtrak Incident Hotline (800-523-9101) with questions about individuals on the train.   For our employees, the Amtrak Employee Assistance Program is staffed with trained counselors to support our employees and co-workers.

UPDATE: Finally, an apology on the Facebook page. Still nothing on the website.

Discussion Starters:

• What could explain the lack of apology? What, if anything, is different between this incident and 2015?
• How can Amtrak balance service updates and empathy? What should the organization post where?

Former Trump Communications Director Quits and Reveals Strategy

So much for loyalty. A communication director for Trump's Make America Great Again Super PAC has quit the campaign and written an open letter about her experience. Most significant, Stephanie Cegielski says that Trump wanted to hit double digits and perhaps hit second place, but he never wanted to nor expected to be in the lead. 

In her letter, Cegielski wrote, "His candidacy was a protest candidacy," and she describes her history:

"Almost a year ago, recruited for my public relations and public policy expertise, I sat in Trump Tower being told that the goal was to get The Donald to poll in double digits and come in second in delegate count. That was it."

She describes her initial excitement representing an alternative candidate but writes, "It wasn't long before every day I awoke to a buzzing phone and a shaking head because Trump had said something politically incorrect the night before. I have been around politics long enough to know that the other side will pounce on any and every opportunity to smear a candidate." 

Cegielski, like many, was surprised at his continuing success. She eventually got disillusioned and now fears a possible win: 

"What was once Trump's desire to rank second place to send a message to America and to increase his power as a businessman has nightmarishly morphed into a charade that is poised to do irreparable damage to this country if we do not stop this campaign in its tracks.

"I'll say it again: Trump never intended to be the candidate. But his pride is too out of control to stop him now."

Cegielski's credibility is at stake. The New York Times and The Wall Street Journal haven't taken up the story, and a Washington Post writer calls the article a successful "exercise in reputation management."

Discussion Starters: 

• Read Cegielski's entire open letter. How do you assess her credibility? Consider The Washington Post perspective. Part of the writer's criticism is "She was literally the P.R. person for the Public Relations Society of America," and she "took a position teaching a class at New York University's School of Professional Studies" on Reputation Management.
• What, if any, loyalty does Cegielski have to Donald Trump and his campaign? 

Companies Threaten to Boycott Georgia

As Georgia Governor Nathan Deal ponders a religious-liberty bill, several companies, and now the film industry, have threatened to withdraw their business if the bill becomes a law. The Washington Post explains the purpose of the bill (H.B. 757), on the surface:

The bill protects religious leaders from being forced to perform same-sex marriage ceremonies and individuals from being forced to attend such events. It also allows faith-based organizations to deny use of their facilities for events they find "objectionable" and exempts them from having to hire or retain any employee whose religious beliefs or practices differ from those of the organization.

However, people are concerned that the measure is discriminatory. According to the Human Rights Campaign (HRC), 

The bill adds a so-called "Religious Freedom Restoration Act" (RFRA), as well as retains and broadens discriminatory provisions that give explicit cover to taxpayer-funded religious organizations choosing to discriminate. While falsely framed as prohibiting the state government from making funding or tax status decisions based on an organization's religious views, in reality it opens the door to discrimination in social services and employment against a wide range of Georgians. The RFRA and other provisions could result in a range of harms. Taxpayer-funded adoption and foster care agencies could refuse to place children in desperate need of loving and caring homes with LGBT couples. Homeless shelters could turn away unwed couples and their families. Food pantries could turn away people of other faiths or even engage in race discrimination. Drug counseling centers could refuse to hire a qualified LGBT therapist.

Delta, Coca-Cola, Home Depot, Marriott, and Google, are among those urging Gov. Deal to veto the bill. Disney, including its subsidiary Marvel, wrote in a statement, "Disney and Marvel are inclusive companies, and although we have had great experiences filming in Georgia, we will plan to take our business elsewhere should any legislation allowing discriminatory practices be signed into state law." AMC Networks has expressed similar sentiment.

The revenue loss could hurt the state's economy. Georgia is the third most popular state for feature films, after California and New York. A letter signed by actors, writers, producers, and others working in the industry echoed the companies' concerns: 

Dear Gov. Deal,

As leaders in the entertainment industry, we have deep concerns about H.B. 757, which would sanction discrimination against LGBT people and others in Georgia.

As you know, Atlanta is often referred to as the Hollywood of the South. During the last fiscal year, at least 248 films and television productions were shot in Georgia, adding at least $1.7 billion in direct spending to the state's economy. Additionally, the entertainment industry helped to bring more than 100 businesses to Georgia through relocation or expansion in the past fiscal year. Only two states - California and New York - have a larger entertainment industry footprint and both have statewide non-discrimination protections on the books. Unfortunately, Georgia not only lacks such protections, but could soon move from a bad situation to worse with H.B. 757.

We pride ourselves on running inclusive companies, and while we have enjoyed a positive partnership on productions in Georgia, we will plan to take our business elsewhere if any legislation sanctioning discrimination is signed into state law.

We urge you to veto H.B. 757 and send a strong message that Georgia will not tolerate discrimination against citizens, employees and visitors to the state.

Thank you in advance for your consideration of this urgent issue.

Image source.

Discussion Starters: 

• How persuasive is the letter from the Hollywood constituencies?
• What should Gov. Deal do? Either way, how should he communicate his decision?
• Do you find the bill potentially discriminatory? How does the language affect your reaction?

Starboard Value Wants New Yahoo Board

Yahoo has been struggling, and hedge fund Starboard Value has a solution: replace the entire current board of directors. Known as an activist group, Starboard was successful in ousting Darden Restaurants' board in 2014 and gave us a great example of a persuasive PowerPoint deck. So far, we see a letter to shareholders, but with the same persuasive language. The opening is shown here:

NEW YORK, March 24, 2016 /PRNewswire/ -- Starboard Value LP (together with its affiliates, "Starboard"), one of the largest shareholders of Yahoo! Inc. (NASDAQ: YHOO) with an ownership interest in approximately 1.7% of Yahoo's outstanding shares, representing an investment of approximately $570 million, today announced that it is nominating a slate of nine highly qualified candidates for election to Yahoo's Board of Directors at the 2016 Annual Meeting.

Starboard also announced today that it has delivered the following open letter to Yahoo shareholders, which includes the names and detailed biographies of each of Starboard's nominees towards the end:

A LETTER TO THE SHAREHOLDERS OF YAHOO! INC.

Yahoo's Current Board has Failed to Deliver Results for Shareholders

Significant Board Change is Desperately Needed to Hold Management Accountable and Properly Oversee any Operational Turnaround Plan, Separation, or Sale of Assets

The Board Refuses to Embrace the Need for Significant Changes at Yahoo

Starboard is Therefore Nominating a Slate of Nine Highly Reputable and Extremely Qualified Directors for Election at Yahoo's 2016 Annual Meeting

The letter goes on to say, "We believe that Yahoo is deeply undervalued and opportunities exist within the control of management and the Board of Directors (the "Board") to unlock significant value for the benefit of all shareholders.  Unfortunately, as we have outlined in previous letters, we have been extremely disappointed with Yahoo's dismal financial performance, poor management execution, egregious compensation and hiring practices, and general lack of accountability and oversight by the Board.  We believe the Board clearly lacks the leadership, objectivity, and perspective needed to make decisions that are in the best interests of shareholders."

CEO Marissa Mayer has made several attempts to trim the business, but the company may be sold. In the shareholder letter, Starboard criticizes the process: "Bidders are uneasy over what was described as an uncharacteristically long document, three to four times longer than usual, without inclusion of private financial information." The board is accused of dealing unfairly in the process.

Discussion Starters:

• Read the Starboard Value letter to shareholders. What principles of persuasion are illustrated? How do the word choices contribute to or detract from the argument?
• How should Marissa Mayer respond? Research the Darden situation to draw some comparisons.
• Do you think we'll see a detailed PPT deck, as we did for the Darden situation? Why or why not? What are the similarities and differences in the businesses that may drive the genre choice?

Kellogg's Responds to Employee Urination Incident

Kellogg's is responding to a video showing a man urinating onto a conveyor belt at one of its factories. The video was taken in Memphis, Tennessee, in 2014 during a labor dispute, so any affected products are past their expiration date. In other words, it's too late to worry whether your box of Rice Krispies was tainted.

The U.S. Food and Drug Administration has started a criminal investigation, and the company is investigating internally. Of course, customers are furious.

Kellogg's has issued a statement and is addressing questions on its Facebook page. To CNN, Kris Charles, a Kellogg's spokesman, said the company is "outraged by this completely unacceptable situation." He also said, "We were shocked and deeply disappointed by this video that we just learned of yesterday. We immediately alerted law enforcement authorities and regulators." 

Kellogg's also posted a notice on its website.

Discussion Starters:

• What would lead an employee to take this action? Imagine the scene at the factory. Would other employees see this and not take action? In other words, how does something like this happen?
• Are people over-reacting, or is this a serious issue?
• Assess the company's response. How well did the social media manager address the Facebook post? Could he or she have said anything different?
• In addition to the statement given to CNN, what else could the company have said?

SeaWorld Ends Orca Breeding Program

SeaWorld is still trying to recover from the negative publicity from Blackfish, the 2013 documentary about orca whales in captivity. Now, the entertainment park has announced it will no longer breed orca whales. This is the biggest move since SeaWorld changed its shows, and it gives hope to animal rights activists. PETA tweeted about the decision as well as Ringling Brothers' decision to stop traveling with elephants in its circus. 

Slate is probably right. Pressure continues to mount on SeaWorld: ticket sales continue to decline, and corporations continue to pull partnerships. 

Although the reaction to the news is mostly positive, this still leaves current orcas in captivity, not living in the best conditions. But some experts say there's little other choice: whales bred in captivity cannot easily be released.  

Discussion Starters:

• Read SeaWorld's "5 Things You Need to Know. . ." Assess the content choices and approach. Who is the intended audience? Would they find this piece convincing? What questions might remain? 
• Should SeaWorld have made this decision long ago? Why or why not?

Snapchat Responds to Phising Scam

A Snapchat employee accidentally sent employees' personal information outside the company, and it has caused embarrassment. Snapchat has faced privacy concerns in the past, and now its own employees may question the company's security. 

The employee responded to a fake email that looked like it came from CEO Evan Spiegel. This is a common phising scam, which according to the Federal Trade Commission (FTC), is when "internet fraudsters impersonate a business to trick you into giving out your personal information." The FTC gives these examples of phising emails; we have all seen something similar:

• "We suspect an unauthorized transaction on your account. To ensure that your account is not compromised, please click the link below and confirm your identity."
• "During our regular verification of accounts, we couldn't verify your information. Please click here to update and verify your information."
• "Our records indicate that your account was overcharged. You must call us within 7 days to receive your refund."

Snapchat responded with an apology to its employees, posted on its blog: 

Discussion Starters: 

• What are some clues that an email address is fake? 
• Assess Snapchat's apology: word choice, tone, content, organization, and so on.