More Companies Take Action to Curb Gun Sales

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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

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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?

Students Fight for Gun Control

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After the school shooting that killed 17 people in Florida, students across the country are protesting for tighter gun control laws. High schoolers left their classes to confront politicians on their failure to change laws and for taking money from the National Rifle Association. Delaney Tarr was one of the vocal students:

"We've had enough of thoughts and prayers. ... If you supported us you would have made a change long ago and you would be making change now. So this is to every law maker out there. No longer can you take money from the NRA ... because we are coming after you."

Adding fuel to the controversy, some GOP members have accused students of being hired actors. Rep. Daryl Metcalfe criticized the protests:

“This morning I was working out and listening to the news about ‘students’ being bussed in to the Florida Capitol. The hypocrisy of the left struck me! They expect lawmakers to listen to the policy advice of 18 year old and younger ‘students’ who are advocating for gun control, but they do not believe 18 year olds who are old enough to serve on the battlefields of Afghanistan are old enough to purchase a rifle.”

Other Republicans, such as Marco Rubio, contradicted such messages, calling claims that students are actors “the work of a disgusting group of idiots with no sense of decency.”

Image source.

Discussion:

  • In what ways are students demonstrating courage? What obstacles do they face as they protest for greater gun control?
  • Assess students' messaging. How do they balance emotional appeals and logical arguments? Which are most effective in this situation?
  • What do Republicans want from this controversy? In other words, what are these lawmakers' interests? How do their criticisms of the students help or hurt their case?

Adam Rippon Demonstrates Authenticity and Questions Pence

U.S. Olympic figure skater Adam Rippon has been public about being gay and having a history of an eating disorder. Rippon says he felt pressure to fit a particularly body image and sometimes starved himself to achieve it.

In January, Rippon said he would refuse a meeting with Vice President Mike Pence because of his support of "conversion" therapies, attempts to change someone's sexual orientation or gender identity. Pence denied the claim and expressed support for all athletes:

“The accusation is totally false with no basis in fact," Alyssa Farah, Pence's press secretary, stated. "But despite these misinformed claims, the Vice President will be enthusiastically supporting all the U.S. athletes competing next month in Pyeongchang.”

However, an NBC article identifies a message on Pence's website that supports Rippon's claim:

Under the headline "Strengthening the American Family" and just below his stated opposition to same-sex marriage and anti-discrimination laws protecting "homosexuals," Pence's platform advocates that resources "be directed toward those institutions which provide assistance to those seeking to change their sexual behavior."

Discussion:

  • What's your view of Rippon's statement?
  • Explain VP Pence's statement given his documented platform? How do you reconcile the claims?
  • In what ways does Rippon demonstrate authenticity?

Shark Tank Example: Learning from Failure

On a recent Shark Tank, two entrepreneurs sought investment in their dog water company—flavored water for your favorite pet to drink. The sharks weren't excited, and Robert Herjavec summed up the sentiment: "My challenge is with you." He then listed the reasons the founder gave for not being farther along with the business, and they were all outside her control. At one point, the founder blames the economy and the company's inability to get a business loan.

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The founder doesn't quite understand—or doesn't acknowledge the criticism. She responds with, "But I'm still here!" and seems to miss the point entirely.

The end is also awkward. It takes a while for her to leave because she's still selling even after all sharks are "out."

Discussion:

  • How could the entrepreneurs demonstrate humility and their ability to learn from failure? In other words, how can they describe their setbacks in a way that doesn't turn off investors?
  • How do you view the founder's last couple of minutes with the sharks? I admire persistence, but is it too much? If so, why?

 

 

Critics Say Bank of America Fees Hurt People with Less Income

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Customers want Bank of America to stop charging fees for accounts with low balances. The company ended its free checking account and will start charging $12 per month.

Critics say the decision disproportionately hurts low-income consumers. The president of a financial advocacy organization explains the consequences:

“The debate over Bank of America’s accounts and fees points to a larger economic justice issue — people with less income pay more to get cash, make payments, and conduct their business. Without access to safe and affordable bank accounts, low-income consumers often turn to costly alternative financial services, such as currency exchanges or check-cashers. The bottom line is: the most financially vulnerable need more and better options to transact their business and participate in the financial mainstream.”

Few big banks still have free checking options because they are expensive to maintain. Banks prefer to move customers to digital solutions. But many low-income people don't have smartphones or reliable internet access. More than 287,000 people have signed a Change.org petition.

Discussion:

  • What's your view? Is Bank of America being unfair, or is this just a good business decision?
  • What is the value of a petition? On what principles of persuasion does a petition rely?
  • How well does the image on the petition site, shown here, work? The emotional appeal is obvious. Does it help or detract from the message?

Best and Worst Super Bowl Commercials

The Washington Post published its list of best and worst commercials in the 2018 Super Bowl. As usual, all ads were heavy on humor and other forms of emotional appeal.

The most popular ad seems to be "It's a Tide Ad," which pokes fun at Super Bowl ads for beer, jewelry, cars, and so on.

"Alexa Loses Her Voice" was also popular. Alexa is sick (with the flu?), and replacement Alexas don't live up to her standards, failing to give directions, set the mood appropriately, and play country music.

In the Post's worst list is a Dodge Ram ad that used a Martin Luther King quote. The company confirmed that it worked with his estate for the appropriate approvals, but not everyone thinks it's wise to use MLK's words to sell cars.

Discussion:

  • Which were your most and favorite Super Bowl commercials? On what do you base your assessment?
  • What's your view of the Dodge Ram ad?

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?

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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?

Controversy About Apple's "What's a Computer?" Ad

Apple's upbeat "What's a Computer?" commercial isn't winning a lot of fans. The long version on YouTube shows a child using an iPad to video chat with a friend, send a picture, type a paper, take a picture, pay for food, draw, and read a comic book. When asked by a woman we assume is the mother, "What you doing on your computer?," the child responds, "What's a computer?"

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Cute? Many people think not. According to a Business Insider article, some find the ad "infuriating."

Discussion:

  • What did Apple hope to accomplish with this ad? To what extent did the company achieve its purpose?
  • We might say this is a lesson in humility for Apple. How do you see it?
  • Why do you think people are so angry about it?

Morgan Stanley Clarifies a Termination

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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?

Shark Tank Episode Illustrates Lack of Listening and Humility

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The owners of Birddogs didn't do very well on Shark Tank. In Season 9, Episode 14, investors grilled the makers of gym shorts with built-in underwear and were skeptical about their responses.

At some point, Kevin O'Leary stopped the discussion to ask how they thought things were going. They didn't say much at that point, but viewers knew the answer: they probably wouldn't get a deal. At the end, Daymond John, the clothing expert and most likely partner, said, "You were also telling us about how you're better than everybody else. . . . I think it's a very elitist attitude, and I just wouldn't be able to work with you."

The entrepreneurs spoke in generalities about how their marketing was better than that of anyone else. They also claimed a 40% email marketing open rate, while their competitors had only 4%, which the sharks didn't believe.

When Lori Greiner was asking questions, one of the owners kept trying to jump in. He didn't demonstrate good listening skills.

Perhaps the worst of it was at the end. In closing, one of the men was incredulous about why they didn't get a deal.

Discussion:

  • Watch the episode (available on Hulu). How well do you think the team handled the pitch? Do you share the sharks' view that they were arrogant and that their numbers "didn't add up"?
  • How do you assess their presentation skills? What would have improved their delivery?
  • How could they have listened and demonstrated humility? Try to give specific examples.

Marriott Apologizes for Mislabeling Chinese Region

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Marriott apologized for mistakenly listing Tibet,  Macau, Hong Kong, and Taiwan as countries in a drop-down menu under China. This is a controversial issue, which the company has since acknowledged in a statement on its website beginning as follows:

"Marriott International respects and supports the sovereignty and territorial integrity of China. Unfortunately, twice this week, we had incidents that suggested the opposite: First, by incorrectly labelling certain regions within China, including Tibet, as countries in a drop-down menu on a survey we sent out to our loyalty members; and second, in the careless “like” by an associate of a tweet that incorrectly suggested our support of this position. Nothing could be further from the truth: we don’t support anyone who subverts the sovereignty and territorial integrity of China and we do not intend in any way to encourage or incite any such people or groups. We recognize the severity of the situation and sincerely apologize."

Marriott is not alone in the mistake: 24 airlines have similar website configurations. The Marriott situation was complicated by an employee "liking" a post by Friends of Tibet, suggesting that the company supports the independence of Tibet. 

The statement goes on to describe what Marriott will do differently in surveys in the future.

Discussion:

  • Marriott says the survey was created by another company to which the project was outsourced. They don't say it as an excuse, but is it? What is Marriott's responsibility for oversight?
  • How well does the statement express the apology? What, if anything, could be improved?

Amtrak Leaders Take Responsibility

Amtrak's leaders have apologized for a train crash in Washington that left three people dead and about 100 more injured. Two of the men who died were train enthusiasts who traveled together to experience the new route.

In the past, Amtrak has been slow to apologize. This time, the response is better, yet not enough for some, as you see in this response on Twitter.

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The president and CEO's full message is below:

To our customers,

On behalf of everyone at Amtrak, I want to share that we are deeply saddened by the tragic event involving train 501 on December 18th. We are profoundly sorry for those who have lost a loved one, were injured, or are otherwise impacted by this horrible event. At this time, our primary concern continues to be caring for our customers and employees, and we are using every available resource to assist those affected. We share everyone’s sense of urgency to identify exactly what caused this to happen, and we continue to fully cooperate with the investigation being led by the NTSB.

If you are traveling with us during the holiday season, I want to assure you that Amtrak remains committed to your safety. Our primary focus is and will always be getting you to your destination safely, comfortably, and efficiently. We are truly privileged to serve you and thank you for your continued patronage.

Richard Anderson

As always in these situations, Amtrak provided regular service updates on its website, and this apology is an improvement. But, after several similar crashes, including those involving MTA trains, people want to know what will be done to prevent this from happening again.

Discussion:

  • What's your view of the president's message? How well does the message meet principles of apologies?
  • What else should the organization do now? How can it rebuild its image and assure people that Amtrak trains are safe?

Persuasive Letter from Scholars to NYC Mayor

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New York City Mayor Bill de Blasio is under pressure to remove four statues that a group considers racist. More than 120 academics and artists signed a letter to persuade the mayor.

The letter assumes that two monuments "have no place on City property" and have "no defenders." They describe them as follows:

  • The Dr. J. Marion Sims statue in Central Park, commemorating a doctor who performed surgical experiments on enslaved African American women, including children, without anesthesia or consent. Momentum for its removal has spurred a remarkably broad coalition in support of the long-standing demand from Black and Latinx Harlemites that this affront be removed.
  • Historic markers of Vichy France’s Nazi collaborators, Philippe Pétain and Pierre Laval, are located in the Canyon of Heroes. Lest anyone need reminding, Vichy organized its own deportation to Auschwitz of over 70,000 Jewish French citizens.

The other two are more controversial, and the authors identify several arguments to support removing them. One is of Theodore Roosevelt, and the other is of Christopher Columbus.

In closing the letter, the group suggests alternatives:

In calling upon the Commission to recommend the removal of the aforementioned monuments, we also endorse any forward-looking post-removal initiative to advance understanding of these histories and make creative use of the vacated city property. These statues could be placed in dedicated museum spaces or memorial gardens, as has happened in Germany, India, South Africa and across Eastern Europe. The Roosevelt monument by James Earle Fraser could be profitably displayed alongside Fraser’s The End of the Trail in the Metropolitan Museum, for example, so that viewers could explore how race and eugenics were visualized in the period. The empty sites could be used as the subject for artistic competitions, as with London’s Fourth Plinth in Trafalgar Square. In short, we see the outcome of the Commission not as destroying heritage, let alone the purported erasure of history, but as the beginning of an exciting new set of possibilities for public art and museums in New York City, one finally devoted to an inclusive and reparative vision of the difficult histories of settler colonialism and the Indigenous peoples of this land.

Image source.

Discussion:

  • How would you describe the writing style in the letter? In what ways is it similar to and different from business writing?
  • How is the letter organized? How could the organization be improved?
  • Assess the argument for the two monuments in question. How do the authors use logical arguments, emotional appeals, and credibility? Which are their strongest and weakest arguments?

Chipotle Announces Search for New CEO

After founding the first Chipotle restaurant in 1993, Steve Ells will leave his position as CEO and become executive chairman. Chipotle locations have struggled with food safety issues since 2008, when customers at a La Mesa, California, restaurant came down with hepatitus, and 54 Kent State students were affected by norovirus at a local restaurant. Since then, other locations have been affected by these illnesses as well as Salmonella and E. Coli.

Company stock has suffered, and this move signals a hopeful change. It's a tough spot for the company's board because Ells has been the face of Chipotle for so long, but the situation has not improved despite efforts for better food safety and new menu items, such as queso dip, which was not well received.

In a company press release, Ells is quoted:

“I am incredibly proud of Chipotle and our people – and grateful to our loyal customers – and while we are continuing to make progress, it is clear that we need to move faster to make improvements,” said Ells. “Simply put, we need to execute better to ensure our future success. The Board and I are committed to bringing in an experienced leader with a passion for driving excellence across every aspect of our business, including the customer experience, operations, marketing, technology, food safety, and training.”

Added Ells, “Bringing in a new CEO is the right thing to do for all our stakeholders. It will allow me to focus on my strengths, which include bringing innovation to the way we source and prepare our food. It will ultimately improve our ability to provide our guests with delicious food that is prepared with high quality ingredients that are raised responsibly and served in a way that is accessible to everyone. I am confident that this will allow us to deliver value for our shareholders, and provide rewarding opportunities for our employees. Chipotle has vast unrealized potential. As we work hard to restore our brand, I believe we can capitalize on opportunities, including in areas such as the digital experience, menu innovation, delivery, catering, and domestic and international expansion, to deliver significant growth.”

The board chair is also quoted, speaking highly of Ells:

“Steve is a visionary leader and one of the most successful restaurateurs in history, having grown Chipotle from a single restaurant in Colorado to more than 2,350 restaurants today. Steve made the decision, and the Board agreed, that now is the right time to identify a new CEO who can reinvigorate the brand and help the company achieve its potential. We are committed to recruiting a world-class CEO for this incredible opportunity.”

Discussion:

  • Read the entire press release. What is not said? Should the release include anything else? 
  • How well does Ells's quote inspire confidence in the future of the brand? What parts do you find most and least convincing?
  • Who are the audiences for the press release? What are the company's objectives?
  • In a sense the board is demonstrating vulnerability. How would you describe their approach, and how effective do you think this is?

Indiana University Is Next to Suspend Greek Life

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Indiana University is following what is starting to be trend: suspending campus Greek life. University officials say activities are banned until at least the spring. The decision follows similar recent actions by Texas State University, Ohio State University, Ball State, and the University of Michigan after various charges of hazing, drug and alcohol abuse, and a death at Penn State.

Indiana's Interfraternity Council President wrote, "We are looking forward to working with our partners on campus as well as national headquarters and alumni to achieve our common goal of creating a sustainable environment for all our chapters to excel in future endeavors."

Indiana is trying to enforce its standards for fraternities and sororities, which is detailed in a "Agreement for Greek Organizations." The agreement focuses on providing and maintaining a safe environment, including not participating in hazing and controlling events where alcohol is served.

Discussion:

  • What effect do you think these suspensions will have on Greek life?
  • What actions, if any, has your university taken? What do you think should happen?
  • I can't find a statement from Indiana University. Should the administration issue one?

"Happily Gentrifying" Isn't Well Received

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A Denver coffee shop is facing backlash from neighbors after posting a sign outside the building: "Happily Gentrifying the Neighborhood Since 2014."

Not everyone is a fan of gentrification, which typically means higher-income shops coming into a neighborhood with increasing rents. Often the result is that people of color and with lower incomes get driven out.

The coffee shop faced a broken window, graffiti outside the building that read "White Coffee," and about 200 protestors.

After initially dismissing the complaints and calling the sign a joke, the company founder said he didn't "fully appreciate the very real and troubling issue of gentrification."  He also said, "I recognize that we had a blind spot to other legitimate interpretations. I sincerely apologize—absolutely and unequivocally."

Discussion:

  • Should the founder or store manager have know better than to post such a sign? Or was it a careless mistake? Or something else?
  • How do you assess the founder's initial and follow-up responses? How could he have demonstrated more humility?

Uber's Recovery Problem

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Uber's new CEO Dara Khosrowshahi may be having a tougher time than he anticipated. New charges have been issued against the company, including paying off a hacker to keep quiet about stolen customer information.

An analyst on Bloomberg said, "The payment of ransom is egregious, and the lack of investment in proactive cybersecurity measures...was beyond the pale." Other industry experts agree. “I was shocked,” a CTO officer at Menlo Security Inc. “Companies need to own up.” The board recently began an investigation into the $100,000 payment, and they terminated the chief security office and another employee as a result.

Before this incident, Bloomberg reports that Khosrowshahi was already apologizing for the company's past actions:

Since he took over, London moved toward outlawing the service, citing “a lack of corporate responsibility.” Uber is appealing. (“I apologise for the mistakes we’ve made,” Khosrowshahi said in response.) He then traveled to Brasilia to meet with officials there and ward off restrictions on Uber’s business. (“In the past, we were a bit aggressive,” he told a Brazilian newspaper.) And now the mishandled data breach. (“We will learn from our mistakes.”)

I will argue what I have in the past on this blog in my new book on Building Leadership Character: Travis Kalanick lacked humility. He believed he was above the law and therefore wouldn't be help accountable for anything.

Discussion:

  • Do you agree with my assessment of Kalanick? Why or why not?
  • What can Khosrowshahi do to rebuild the company image?

 

Apologies from Louis C.K. and His Former Manager

After several women told similar stories about Louis C.K.'s sexual misconduct, the comedian wrote a statement (NSFW). Some appreciate Louis C.K.'s taking responsibility and consider it a far better response than we have seen from Harvey Weinstein or Kevin Spacey. Others think the statement fell short, particularly because he didn't use the words "I'm sorry" or "I apologize."

Quartz published an edited version of the statement, criticizing Louis C.K. for emphasizing how much he's admired rather than how sorry he is.

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Meanwhile, Louis C.K.'s manager, Dave Becky, ended their relationship and wrote his own statement:

"I profoundly regret and am deeply sorry for not listening to and not understanding what happened to Dana and Julia. If I had, I would have taken this event as seriously as it deserved to be, and I would have confronted Louis, which would have been the right thing to do.

I am providing this context so that others do not make the same mistake I did. At that time, I heard the story third-hand, and I interpreted the conversation as two women telling a story about a sexual encounter with a then-married Louis. Albeit enormously embarrassing, in no way did I interpret the interaction as threatening or non-consensual. I misperceived the casual way the story was portrayed to me - instead I should have recognized that it must have been a mask for their unease and discomfort in the face of his detestable behavior. My intent was to seek discretion to protect what I thought was a matter of infidelity. I now comprehend that my response was perceived as a threat to cover-up sexual misconduct. This is not an excuse. What I did was wrong, and again, I am extremely sorry.

In hindsight, I was operating blindly from a one-sided place of privilege. Until last week, I knew only of this one isolated incident. Although this may sound naïve, it is true. Never once, in all of these years, did anyone mention any of the other incidents that were reported recently - I am appalled to learn of these. I have come to realize my status wielded an atmosphere where such news did not reach me, or worse yet, that it seemed such news did not matter to me. It does. It matters tremendously.

I am going to take time to reflect on this, to educate myself daily, and to strive towards a more enlightened path. I want to ensure that all voices around me are heard, and that everyone is treated respectfully and empathetically. More than anything, I want to create an environment that is a better, safer and fairer place."

Becky also represents Aziz Ansari, Amy Poehler, and Kevin Hart. He did represent Pamela Adlon, but she terminated the relationship after the Louis C.K. news became public.

Discussion: 

  • If you read Louis C.K.'s statement (NSFW), what is your perspective? In what ways does it serve as an effective apology, and in what ways does it fall short?
  • Assess Becky's statement similarly.

Wells Fargo's Stiff CEO Video

TempWells Fargo is still trying to rebuild trust after several scandals, including creating millions of fake accounts for customers. The company sent emails to customers and included a link to a new video featuring CEO and president Tim Sloan.

The email starts with a sort-of apology, indicating that they haven't communicated enough.

Wells Fargo home page
 
Dear Wells Fargo Customer,

Customers like you have told us they want to hear more about what we've been doing to address our challenges over the past year.

Please click here for a two-minute message from our CEO and President, Tim Sloan.

We've been making things right for our customers and team members, compensating customers who were harmed, and rehiring thousands of team members.

We've been holding senior leaders responsible, up to and including termination, and the forfeiture of hundreds of millions of dollars in executive compensation.

And we've been fixing what went wrong, including the elimination of product sales goals for retail bankers in our bank branches and call centers, reinforcing our commitment to ethics and integrity, and refocusing everything we do on our customers.

For more details and the latest on our ongoing efforts to build a better company for our customers, please go to www.wellsfargo.com/commitment.

 

Sloan's messages are consistent: they take responsibility, and they are trying to "make things right." But Sloan is as stiff as he was in another video, created in April.

Discussion:

  • Do you agree or disagree with my criticism of the email and video? Why or why not?
  • How else would you evaluate the email and video?
  • Sloan also isn't giving many specifics. What else, if anything, should he say?