Bank of America Tries to Repair Its Image

As the target of some "Occupy Wall Street" demonstrations, Bank of America is fighting back. The company's image has suffered in part because of many foreclosed homes (and "robo-signers"), a recent announcement of $5 monthly fees for debit cards, 30,000 layoffs, and a poorly timed website outage. Now Bank of America is running ads in major cities to focus on its good work: charitable donations, small business loans, and loan modifications to help homeowners prevent foreclosure.

Bank spokesperson T.J. Crawford explains, "The campaign aims to deliver the facts about Bank of America's local impact. Sharing the significant work we do at the local level and critical role we play is more important than ever." An ad that ran in Charlotte, NC, the bank's headquarters, had the tagline, "We're working to help keep the North Carolina economy moving forward."

In July 2011, Bank of America published its first Corporate Responsibility Report. On its website, the bank reaffirms its "commitment to shareholders, customers, and clients." In a video on the site, the company gives several examples of how it has served local communities.

 

(View video transcript.)

Discussion Starters and Assignment Ideas:

• The "Executive Summary" of Bank of America's Corporate Social Responsibility report is 16 pages (download). How does this differ from a typical executive summary? Why do you believe Bank of America took this approach?
• Convert the executive summary to a more typical one-page executive summary. What is most important to include, and how can you present this information? For variety, write two versions: one as paragraph text and another in presentation software format (e.g., PowerPoint).
• How do you assess Bank of America's messages? Do you buy its image as a socially responsible company? Which messages in the CSR video do you find most and least convincing?

Two More UBS Executives Resign

Not surprisingly, the two co-global heads of UBS's Equities division have resigned. These resignations follow a trading scandal that cost the Swiss bank $2.3 billion and the CEO's resignation on September 25.

An email to employees from interim CEO Sergio Ermotti uses a sharper tone than emails from the previous CEO:

"We have to be straight with ourselves. In no circumstances should something like this ever occur. The fact that it did is evidence of a failure to exercise appropriate controls. Our internal investigation indicates that risk and operational systems did detect unauthorized or unexplained activity but this was not sufficiently investigated nor was appropriate action taken to ensure existing controls were enforced."

Discussion Starters:

• Ermotti's email uses an indirect organizational plan. Do you think this is appropriate in this case? Why or why not?
• Compare Ermotti's email to that of Carsten Kengeter, the head of the UBS investment bank. What differences do you notice, and how would you explain them?   Download UBS emails.

Reebok Pays $25 Million Because of Deceptive Ads

As it turns out, you can't get toned just by wearing a pair of shoes. Reebok is paying big refunds because claims about their RunTone and EasyTone shoes cannot be substantiated. The company marketed these products on claims such as "You can work your hamstrings and calves up to 11% harder." Lacking evidence to prove these results, Reebok was fined $25 million by the Federal Trade Commission. Customers may apply for a refund via the FTC website.

Although Reebok agreed to the settlement, the company stands by its products and will continue selling the shoes. In a statement, Reebok affirms, 

"We have received overwhelmingly enthusiastic feedback from thousands of EasyTone customers, and we remain committed to the continued development of our EasyTone line of products."

 

Discussion Starters:

• How did Reebok fall short in its claims? What questions would you have after hearing the data about the shoes?
• Do you consider Reebok's advertising to be deceptive? Why or why or not?

Excessive Kissing on Southwest Flight?

#BoycottSouthwest Airlines is trending because of an in-flight kissing incident. Leisha Hailey, an actress on the TV show The L Word, and her partner, musician Camila Grey, were asked to deplane after kissing on board. Hailey tweeted about the incident:

"I have been discriminated against by @SouthwestAir. Flt. attendant said that it was a ‘family' airline and kissing was not ok."

"This is an outrage. I demand a public apology by @SouthwestAir and a refund. Hate is not a family value. I will never fly this airline."

Proud of their LGBT-friendly policies, Southwest posted this statement:

Update: Southwest has issued a second statement, explaining that the passengers were removed from the plane because of profanity, not kissing.

Discussion Starters:

• After reading about this incident, would you boycott Southwest? Why or why not? What other information would you want to know before making a decision?
• How do you assess Southwest's response to the situation? What did they do well, and what, if anything, could they have done differently?
  

UBS CEO Resigns

Following the scandal that caused Swiss bank UBS $2.3 billion, CEO Oswald J. Grübel has resigned. In a memo to employees, Grübel says, "I did not take the step of resigning lightly."

In the memo, Grübel includes a pep talk for employees:

"As I've always emphasized, a lot of work remains to be done here. So don't let recent events distract you from your work. Continue giving your all and keep your focus on your clients. I am certain that UBS can carve out a strong place for itself within the fundamentally changing financial industry."

This memo follows a previous communication to employees, in which Grübel explained the incident and wrote, "Ultimately, the buck stops with me."

Discussion Starters:

• Who are Grübel's primary and secondary audiences for this memo?
• What would you identify as Grübel's goals of this message?
• In your opinion, to what extent did he achieve these goals?

Note to Tweeters Who Hire Ghostwriters: Change Your Password

Someone who calls himself a "Social Marketing & Communications Strategist" is facing embarrassment over his Twitter account. Apparently, @Mark Davidson had hired three people to ghostwrite tweets for him, only to be exposed on his own Twitter feed. One angry former writer took advantage of Davidson's failure to change his Twitter password and kept posting after he stopped working for Davidson:

Discussion Starters:

• What are the ethical considerations of someone tweeting for someone else? Does Davidson's job influence your perspective? (On Twitter, he describes himself as "Internet sales & marketing professional. I write a lot of things to amuse myself and others. On occasion, I even have deep thoughts.")
• After this incident, Davidson (himself, apparently) posted this tweet: "WANTED: Social Media Account Ghost Writer. We've recently had an opening at http://twitter.com/#!/markdavidson. (Serious inquiries only.)" Would you apply? Why or why not?

Solyndra Legal Team Gets Into the Action

Solyndra executives had agreed to testify before the U.S. Oversight and Investigations Subcommittee, but their lawyers have since advised them to plead the Fifth Amendment. Solyndra, a solar-panel manufacturer that received $535 million in stimulus funding, has filed for bankruptcy and is now under criminal investigation. The executives maintain their innocence: "The company is not aware of any wrongdoing by Solyndra officers, directors, or employees in conjunction with the DOE [Department of Energy] loan guarantee or otherwise..."

Two letters from the legal team explain why executives Brian Harrison (CEO) and Bill Stover (CFO) will not answer questions that may incriminate them during Congressional hearings on Friday.

In response, U.S. committee members expressed their dissatisfaction:

"Who exactly are Solyndra's executives trying to protect, and what are they trying to hide?

"Despite repeated assurances that they would testify voluntarily and answer questions this Friday, today we received the news that these executives – who had plenty to say to federal officials when securing half a billion dollars in taxpayer funding for their venture – plan to invoke their Fifth Amendment right against self-incrimination and will not answer questions from Congress."

Discussion Starters:

• Compare the two legal letters for Solyndra executives. What minor differences do you see, and how do you account for these?
• How do you assess the U.S. committee chairmen's response to the news? What do you notice about the tone of their statement?
• Consider the politics involved in this situation. Who are the major players, and what is driving their actions?

Hacked NBC Twitter Account Announces Ground Zero Attack

Twitter hacking continues. This time, NBC is the victim, and the tweets are cruel. The Script Kiddies hacked Fox News in July, claiming that President Obama had been assassinated. Apparently, NBC's social media director clicked on an email attachment that allowed access to the culprit:

"'Ryan, You need to get off TWITTER immediately and protect your family from the hurricane. That is an order.' Osborn wrote back 'I'm sorry. Who is this?' The sender then replied, 'I'm the girl next door' with an attachment. Osborn said he mistakenly clicked on the attachment and it contained a Christmas tree."

Discussion Starters:

• What is your reaction to the series of hacking? Are these harmless pranks or potentially dangerous?
• What, if any, are the ethical implications of Twitter hacking?
• How do you assess NBC's statement: "The NBC News Twitter account was hacked late this afternoon and as a result, false reports of a plane attack on ground zero were sent to @NBCNews followers. We are working with Twitter to correct the situation and…sincerely apologize for the scare that could have been caused by such a reckless and irresponsible act"? Is this an appropriate response, or do you believe that more should be included in the network's statement?

Fox Sports Makes Fun of Asians at USC

For a Fox Sports Network video to promote the Pac-12 football conference, comedian Bob Oschack interviews Asian students at USC. These students don't know about the conference -- and likely don't care -- but are asked to speak on camera.

Download Fox Sports Network Targets Asians at USC

A spokesperson from Fox Sports apologized for the video:

"The context was clearly inappropriate, and the video was removed as soon as we became aware of it. We will review our editorial process to determine where the breakdown occurred and we will take steps to ensure something like this never happens again."

Discussion Starters:

• Do you consider the video racist? Is it ethical? Explain your position.
• What could Fox Sports change in their editorial process to make sure this doesn't happen again, as the spokesperson promises?

Should the NYC Mayor's Office Have Disclosed Domestic Violence Arrest?

When Bloomberg's deputy mayor Stephen Goldsmith resigned, the administration said that he was leaving "to pursue private-sector opportunities in infrastructure finance." In a statement, Goldsmith said, "The change will provide me, at age 64, with more flexibility for me and my family and a secure foundation for our future."

But the story has changed. Prior to his resignation, Goldsmith was arrested following an altercation with his wife and spent two days in jail. Critics say that the arrest should have been disclosed as soon as the administration knew. This is significant partly because of Goldsmith's role, which was to oversee major city agencies: police, fire, transportation, sanitation, and buildings.

Discussion Starters:

• Did the administration have a responsibility to disclose Goldsmith's arrest? 
• Evaluate the decision: what are the arguments supporting and against disclosure? How might the administration's view differed from Goldsmith's perspective?
• Goldsmith's wife seems to have changed her story from what was reported in the arrest record. The original record describes quite a physical scene, and yet Mrs. Goldsmith later denied that physical violence occurred. What role, if any, do you think she played in the decision not to disclose the incident?

Hyundai Commercial NSFW or the Netherlands

A car with three doors? The Hyundai Velostar looks like a coupe and boasts a "functional 3rd door," according to the website description. In an odd twist, a commercial promoting the Velostar emphasizes the door, yet was banned by Hyundai's head office for its explicit content. Critics say that the commercial was designed to be viral and that the ban is simply part of the marketing plan. 

It is an interesting question: the third door is not listed among the Velostar's safety features, apparently the main point of the commercial.

Discussion Starters:

• Do you consider the commercial too explicit for American TV? Why or why not?
• Do you think that pulling the ad was a planned marketing ploy by Hyundai -- or a genuine reaction to the commercial?
• What ethics are involved in this situation? Is the commercial ethical? If Hyundai planned for the video to be banned and viral, is that ethical?

Cornell University President Wants to End Fraternity Pledging

In an opinion letter in The New York Times, Cornell University president David Skorton demands an end to pledging, which he calls a "guise" for hazing. According to Skorton, pledging is not, as some fraternities purport, a way for students to prepare for membership, but "is often the vehicle for demeaning activities that cause psychological harm and physical danger." The impetus for this action, says Skorton, is a student death in February believed to be the result of fraternity hazing. Skorton is calling on the Greek community to offer solutions:

"Yesterday, I directed student leaders of Cornell's Greek chapters to develop a system of member recruitment and initiation that does not involve 'pledging' - the performance of demeaning or dangerous acts as a condition of membership."

As for any sound, persuasive argument, Skorton address the skeptic's question:

"Why not ban fraternities and sororities altogether, as some universities have done? Over a quarter of Cornell undergraduates (3,822 of 13,935 students) are involved in fraternities or sororities. The Greek system is part of our university's history and culture, and we should maintain it because at its best, it can foster friendship, community service and leadership."

Discussion Starters:

• Do you agree with President Skorton that the line between hazing and pledging is blurred? Why or why not?
• What do you consider to be the most persuasive argument in his letter? Least?
• What would convince fraternities to abide by this request? In other words, what is the best way to persuade fraternities to change?

Law Students Put Their Education to Work and Sue Their Schools

Law school graduates are seeking class-action status in a suit against their alma maters Thomas Cooley Law School and New York Law School. The plaintiffs claim the schools defraud applicants by overstating job placement rates. Apparently, included in some schools' employment rates are people in part-time jobs, temporary jobs, jobs that don't require a J.D., and fellowships sponsored by the school. The plaintiffs are seeking tuition refunds and changes in how employment numbers are reported.

To defend its data, Cooley issued a report (download) claiming, "Study Shows Lawyers Have One of the Highest Employment Rates of All Professional Occupations." Cooley has also responded with a lawsuit of its own against the plaintiffs' attorneys claiming defamation because of ads such as this:

Discussion Starters:

• Read more about the debate over statistics here. How do you assess the law schools' communication to students? Based on this information, do the plaintiffs have a case?
• Read the employment report issued by Cooley. What parts of the report do you find most and least convincing? 
• After reading the Cooley report, are you more or less sympathetic to the plaintiffs? In other words, how effective is the report in making the school's argument about employment? 
• Beyond the legal questions, and based on what you know from reading, do you believe these law schools are communicating ethically to applicants? Why or why not?

Missouri Law Bans Teacher-Student Contact on Social Networking Sites

If you're a teacher in Missouri, don't "friend" a student on Facebook or follow a student on Twitter. These relationships are now banned. Supporters say that the new law protects students against harmful predators; opponents say that the ban limits teachers' ability to help students with everything from homework assignments to providing assistance during crises. Although email could be used for teacher-student interactions, some teachers want to communicate with students via Facebook because "kids are rapidly abandoning email," according to one educator (listen to the interview). 

Discussion Starters:

• What is your view of the new law? Do you believe this is a good thing, an obstacle to learning, or something else? What are the potential negative consequences of this law?
• What is your own experience with interacting with instructors online? In what ways have your interactions been beneficial -- or not?
• Do you see a difference between a student friending a teacher on Facebook and a teacher friending a student? Do you see a difference between being Facebook friends and following someone on Twitter?

Using Amy Winehouse's Death for Small Business Advice

The Huffington Post is under fire for an article, "Amy Winehouse's Untimely Death Is a Wake Up Call for Small Business Owners."  According to blogger Tricia Fox, the 27-year-old British singer's death offers business lessons:

"For small business owners there is, however, a lot to be learned from Amy's untimely death.

"Although rarely referred to as such, most musical artists and celebrities are businesses in their own right. In fact, for all those detractors out there that say that being 'self-employed' is not a 'proper' business, think again. This successful business model is one that has been proven time and time again.

"But whether you are a pop star, a plumber or a business consultant, the same rules still apply: you are the product. And if that's the case, you are going to need to take really good care for yourself if you want your business to succeed."

Critics found little in common between Winehouse's death and running a small business and accused Fox of using the pop star's death for personal gain. Fox responded to criticism partly by citing cultural differences between the U.K. and the U.S.:

"For those of you who have been offended by my use of Amy Winehouse as an example, please accept my sincere apologies. Offence was never my intent. . . . Response to this blog in the U.K. has been positive. Response from the USA has been negative. I'm not sure why different nationalities have recieved [sic] the blog differently."

Discussion Starters:

• What is your reaction to the blogger's article? Do you agree with the criticism?
• Do you buy Fox's explanation of cultural differences? Why or why not?
• How could Fox have responded differently to the criticism?

How to Get People to Respond to Your Emails

The New York Times published an article yesterday, "Is Anyone There?" voicing the frustration that many of us feel when our emails go unanswered. There are no guarantees, but here are a few ideas for getting a response to your email:

• Use a catchy, specific subject line. These can be full sentences, for example, "Can you come to the meeting on Friday?" Consider including your entire message in the subject line and adding "[EOM]," meaning "end of message." This saves people having to open your message. (See SEND by Shipley and Schwable.)
• Make responding easy. Ask specific, easy questions that don't require a lot of reading or a complex answer. If you need more, schedule a meeting -- there's just so much email can do.
• Put your main point in the first sentence. Don't ramble with two paragraphs of background information before you ask for what you need.
• Focus on the reader. Consider what's important to the receiver -- why should he or she respond? "Please let me know whether I can contact Maryann directly. I want to save you the trouble, but I don't want to overstep either."
• Give a time frame for a response. "ASAP" means within 5 minutes to me, but may mean a week and a half to you. Try, "Will you please let me know by Tuesday, 7/16, whether this outline is on track, so I can finish the report by Friday?"
• Use short paragraphs and write concisely. Edit ruthlessly.
• Consider different colors and fonts to make your email skimmable -- within reason.
• Pick up the phone. Either as follow-up or {gasp!} in lieu of an email, trying calling someone instead. Email is the default medium for most business communication, but it's not the only choice.
• Send an IM instead. For quick questions, try for a quick answer.

Here are some more ideas, but reserve these for when you don't care too much about maintaining a relationship with the receiver:

• Send emails with a receipt. This is sure to annoy anyone into either responding or never opening another email from you.
• Send "Second Request" in the subject line. Truly overwhelmed emailers may appreciate this, but others will consider it an insult -- particularly if sent 3 hours after the original message.
• Copy someone important. This may inspire someone to jump in your behalf but also may embarrass someone into further non-response.

Sometimes, a non-answer is, in fact, an answer. If you don't hear back after an interview, yes, the recruiter is rude, but after a week or so, you probably have your response.

Discussion Starters:

• Have you sent email that didn't get a response? In retrospect, what could you have done differently?
• Have you ever ignored email sent to you? Do you consider it rude? Why or why not?

Fox News' Twitter Feed Hacked with False Reports of Obama's Death

Fox News was the latest victim of computer hacking when its Twitter feed showed several false tweets about President Obama's death. As of this writing, the source of the security breach is unclear.

CNET's hacker chart shows a series of recent attacks, which have caused increasing concern about computer security.

Video source.

 

Discussion Starters:

• The hackers' rationale for breaching Fox News' Twitter feed is this: "We are looking to find information about corporations to assist with antisec [a concerted hacker attack on corporate and government security]. Fox News was selected because we figured their security would be just as much of a joke as their reporting." What do you think of this response? Did the hackers make a funny joke, raise a good point, or present a serious concern?
• What are the consequences of this breach for the country? For Fox News?

Following Complaint Letter, No "Mystery Shopper" Study of Doctors

The Obama Administration had planned a survey to test how difficult it is for Medicaid and Medicare patients to get appointments with doctors. But following criticism about the cost of the study and the "proposed clandestine method of collecting information from physician offices," the study has been canceled.

For data collection, the study called for mystery shoppers, who would pose as patients. In a letter, Senator Mark Kirk emphasized the "stealth" nature of the plan and his belief that the purpose of the study -- to prove a shortage of doctors -- has already been documented.

Watch a related video: President Obama's discussion of Medicare.

Video source.

 Discussion Starters:

• What research was the Obama Administration trying to gather that they believed could only be obtained through mystery shoppers? In other words, what was the value of using mystery shoppers for this study?
• From reading Senator Kirk's letter, do you consider the original study with mystery shoppers to be ethical for this purpose? Why or why not?

Former Skype Employees Lose Stock Options

Following Microsoft's acquisition of Skype, former Skype employees are challenging the company's stance on stock options, including those they thought were "vested" or guaranteed. In a letter to one departing employee, the issue of stock options was explained:

"Not withstanding the exercisability of your Options, Section 12 of your Stock Option Grant Agreement (the 'Grant Agreement') provides that any shares issuable upon the exercise of your Options would be issued on your behalf to the Partnership."

Well that clears things up.

 
Read more here.

Assignment Idea:

• Read the letter about stock options. See how many nominalizations and prepositions you can identify.
• If you have enough finance knowledge, try to rewrite the letter in plain language.

Delta Criticized for Saudi Partnership: Can Jews Fly?

Delta Airlines has formed an alliance with Saudi Arabian Airlines that is causing people to question whether Delta discriminates against Jewish people. The Saudi government does not grant visas to Israelis. The Anti-Defamation League, an organization that fights anti-Semitism, has urged the airline not to "be a party" to discriminatory practices. Delta responded to the criticism in a statement: "Delta Air Lines does not discriminate nor do we condone discrimination against any of our customers in regards to age, race, nationality, religion, or gender." Read more of Delta's response on its blog.

 Discussion Starters:

• Do you consider Delta's partnership discriminatory? Why or why not?
• How do you react to Delta's response on its blog? Which arguments do you find most and least convincing?