Amazon Responds to NYT Piece

Two months after The New York Times published a scathing article about Amazon's work environment, the company is responding. Right after the article, Jeff Bezos did send an email to employees, and others wrote their own perspective. But this is an official and attacking review of the article by Jay Carney, former White House press secretary, and now VP of worldwide corporate affairs at Amazon.

Reminiscent of criticism of Rolling Stone's article on rape at the University of Virginia, this piece challenges New York Times reporters' fact checking. Will The New York Times also retract its article?

Carney begins his rebuttal with the quote featured in the Times article: "Nearly every person I worked with, I saw cry at their desk." He writes,

"Olson's words were so key to the narrative the Times wished to construct that they splashed them in large type just below the headline.

"Here's what the story didn't tell you about Mr. Olson: his brief tenure at Amazon ended after an investigation revealed he had attempted to defraud vendors and conceal it by falsifying business records. When confronted with the evidence, he admitted it and resigned immediately."

It will be interesting to see how The New York Times responds to these claims.

UPDATES:

• Dean Baquet, executive editor of The New York Times responded, justifying the article. He said that more than 100 employees were interviewed, and themes emerged clearly (which, he says, have been supported by thousands of comments on the Times' website). Baquet also cites several employees and clarifies their perspective more fully.
• Carney again responded, questioning the Times' fact-checking.

Image source.

Discussion Starters:

• Why did Amazon publish this article two months after The Times piece?
• How do you think The Times will respond? What could the reporter say to substantiate the article?
• UPDATE: Do Banquet's response and/or Carney's response change your opinion of the story or Amazon?

IHOP Gets Cute But Crosses a Line

Sure, companies need to attract attention, and social media is a good way to differentiate a brand. But IHOP went too far with its references to breasts, and people didn't respond well. These images and the tweet say it all. 

With an edgy voice, the company is trying to reach a younger demographic, but it backfired. People responded with anger and surprise. @JuddLegum tweeted,  "Something is going on with IHOP on Twitter and I hope I never find out what it is." 

To the company's credit, it sent a quick, natural apology tweet: 

Discussion Starters: 

• It's difficult for companies to know what's just edgy and funny-and what crosses an ethical line. How would you advise companies to distinguish? 
• Assess IHOP's response tweet. Does it work? Should the company have issued a longer or different apology?

Pope Apologizes for...What?

Pope Francis has issued an apology, but critics want to know what it's for. He asks for forgiveness for "the scandals that have occurred recently both in Rome and at the Vatican."

A Reuters article says the apology is "an apparent reference to two cases of priests and gay sex revealed this month during a major meeting of bishops." The article also indicates, "The pope also appeared to be referring to a scandal exposed in the Italian media last week about an order of priests who run a parish in a well-to-do neighborhood in Rome." 

But for some, the apology isn't clear enough. The outreach director for the organization Survivors Network of those Abused by Priests (SNAP) expressed her frustration:

"Instead of stopping clergy sex scandals, Pope Francis is again asking forgiveness for them. That may be good public relations but it's irresponsible leadership."

This isn't the first broad apology. In 2000, John Paul II made what The Guardian called "a sweeping apology for 2,000 years of violence, persecution and blunders." 

Discussion Starters:

• What's your view of the pope's apology? Is it enough? 
• If the pope were to be more specific, what could he say?

Coastal Commission Bans Whale Breeding

In what could result in the final demise of SeaWorld, the California Coastal Commission announced a ban on breeding whales. Because SeaWorld no longer captures whales from the wild (and hasn't in 35 years, according to the theme park), its source of entertaining orcas must come from breeding within the current supply.

In a press release, SeaWorld says it will "review options." President and CEO Joel Manby said, "Depriving these social animals of the natural and fundamental right to reproduce is inhumane and we do not support this condition."

The Editorial Board of the San Diego Union-Tribune scored a win for SeaWorld by questioning the legality of the Coastal Commission's ban. The article ended with this encouragement: "But SeaWorld has options, the most obvious being a court challenge. We urge it to aggressively pursue that option."

Others support the decision, including the Humane Society and PETA, which has advertised against SeaWorld's orca conditions by comparing their living conditions to a bathtub.

Discussion Starters:

• Assess the persuasive arguments in the Editorial Board's article. Which do you find most and least convincing?
• What actions should SeaWorld take now? Consider legal options and messaging.

McGraw-Hill Addresses Textbook Controversy

Under the title "Patterns of Immigration," a McGraw-Hill textbook explains that Africans came to America as "workers." In another section, the book says Europeans came as "indentured servants." A mother's video describing her son's experience and the book went viral. She shows pages from the book that list consultants, advisors, and reviewers who seem to have approved the book.  

The publisher issued a statement. 

McGraw-Hill President and CEO David Levin called the caption a "mistake" and wrote in a message to employees, "We are deeply sorry that the caption was written this way. While the book was reviewed by many people inside and outside the company, and was made available for public review, no one raised concerns about the caption. Yet, clearly, something went wrong, and we must and will do better."

Discussion Starters: 

• What's your view of the "mistake"?
• How could the text get by so many reviewers? 
• Analyze McGraw-Hill's two statements: the Facebook post and the CEO's quotation. What do you find effective, and what could be improved?

Planned Parenthood Fights Allegations

A video showing Planned Parenthood officials discussing how they provide fetal tissue for research has caused outrage and a fight from the organization. Abortion opponents use the video as evidence of Planned Parenthood's "selling baby parts," but the organization denies these claims. 

In a statement on its website, Planned Parenthood refers to opponents as "extremists" and calls the videos "highly political" with "at least 42 splices": 

"They are engaged in a fraud, and the claims they've made have been discredited and disproven. If there was any truth to these videos, the footage would be shared with a judge who would take the necessary steps to seize records and conduct an investigation.  Instead, the videos were shared with members of Congress in advance of being released to the public and then used in an effort to defund Planned Parenthood and eliminate access to women's health care."

The Planned Parenthood website has additional statements, and Cecile Richards appeared before Congress to testify. 

Discussion Starters: 

• Analyze the organization's statements on its website. What themes emerge? How would you describe the tone? 
• In what ways do your own views of abortion affect how you read the organization's statements?

VW Executive Changes and More Comms

Since the scandal broke, Volkswagen has sprung in action, making executive changes and stepping up communications. No surprise, Martin Winterkorn resigned. However, his statement is unusual (as was his video, considering the likelihood that he would leave the company): 

"I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group. 

"As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the Supervisory Board to agree on terminating my function as CEO of the Volkswagen Group. I am doing this in the interests of the company even though I am not aware of any wrong doing on my part. 

"Volkswagen needs a fresh start – also in terms of personnel. I am clearing the way for this fresh start with my resignation. 

"I have always been driven by my desire to serve this company, especially our customers and employees. Volkswagen has been, is and will always be my life. 

"The process of clarification and transparency must continue. This is the only way to win back trust. I am convinced that the Volkswagen Group and its team will overcome this grave crisis." 

Since the decision on Wednesday, VW has hired a new chief executive, Matthias Müller, previously head of Porsche. A New York Times article title calls him an "insider"-notable because of criticism about the company's centralized control of power.  

Additional communications include the following: 

• Statement by the executive board
• Statement by the CEO of VW car brands
• Statement about further restructuring

Discussion Starters: 

• Analyze the most recent communications. Are you convinced the company is doing all it can to fix the situation and regain customer confidence?
• As far as I know, U.S. VW customers have not received any direct communication (e.g., an email) from the company. What's your view about this? 

KU Must Reinstate Student Who Posted Derogatory Tweets

The University of Kansas lost a lawsuit after expelling a student for posting derogatory tweets about his girlfriend. According to the court decision, the university's code of conduct applies only to tweets posted while a student is on campus. Without clear evidence, Navid Yeasin should not have been expelled: he could have tweeted while off campus. 

Although the university argued that off-campus harassment can create a hostile on-campus environment, the court disagreed: 

"It seems obvious that the only environment the university can control is on campus or at university-sponsored or supervised events. After all, the university is not an agency of law enforcement but is rather an institution of learning."

An attorney with the American Civil Liberties Union (ACLU) supported the decision: 

"To police stuff that doesn't have any connection with the university is a waste of resources. And to police speech - no matter how (offensive) that speech is - is a waste of resources. KU needs to focus on real sexual assault on campus."

Discussion Starters: 

• What's your view of the court's decision? 
• Should UK make a statement at this point? What would the university say, whether or not it decides to appeal?

TV Station Apologizes for Showing Nazi Symbol on Yom Kippur

It's hard to imagine how such a mistake could happen. A Chicago TV station showed a Nazi image when talking about Yom Kippur, the Jewish Day of Atonement. "Jude" is the German word for Jew, and the blue stripes were used on Jewish uniforms in concentration camps. 

The station issued apologies live and on Twitter.

"Last night we ran a story to recognize Yom Kippur, the Jewish Day of Atonement.  Regrettably, we failed to recognize that the artwork we chose to accompany the story contained an offensive symbol.  This was an unfortunate mistake.  Ignorance is not an excuse.  We are extremely embarrassed and we deeply apologize to our viewers and to the Jewish community for this mistake.

"We are investigating how this situation occurred, reviewing our in-house policies and making changes in order to avoid such mistakes from happening in the future.  Thank you for your understanding. We promise to do better."

 

Discussion Starters:

• The station said it would investigate how the mistake happened, but it hasn't followed up yet. How do you think it happened? Under what situations would they not respond with a reason?
• Assess the apology. How effective are the video and written statement?

Volkswagen Upsets Customers

Volkswagen customers are furious, and the executives have a lot of explaining to do. Chief Executive Martin Winterkorn may be known for his meticulousness, but he missed the boat in ensuring that the company met ethical industry standards. An investigation has revealed that millions of diesel cars don't meet emissions guidelines; worse yet, software to intentionally deceive tests was built into many models.

A New York Times article covers background (drama) between Winterkorn and former Chairman Ferdinand Piëch. Now, Winterkorn seems to be holding the responsibility. Because VW has centralized management practices, he'll have a tough time convincing stakeholders that senior management wasn't involved. 

As you can imagine, VW customers aren't happy about the situation. They bought the "clean diesel" line from the company and "green" award-winning Passats, Golfs, Jettas, Beetles, and Audi A3's that aren't what the company claimed. The fixes are expensive and will cause drops in performance or trunk space. A Wired article also warns that, whether people "dodge the recall or not, your car's resale value is likely to drop as far and fast as VW's stock, which has plunged 20 percent since the feds came down on VW Friday." 

On its website, VW posted two statements relevant to this situation. The first addresses the findings and apologizes (below), and the second-issued two days later-says the company is "working at full speed to clarify irregularities concerning a particular software used in diesel engines." 

In addition to these written statements, Winterkorn created an apology video: 

UPDATE: Today's post, as predicted, included Winterkorn's resignation:

Discussion Starters:

• Analyze the two company statements. In what ways do they rebuild company image, and how do they fall short? 
• What else does the company need to do to gain consumer confidence? What should Winterkorn do? 
• The news was announced on Sept. 20. How many days do you predict it will take him to step down?

Comedian Apologizes for 9/11 Account

For 14 years, Steve Rannazzisi stuck to his story of escaping the Twin Towers during the 9/11 attacks. In 2009, he gave a detailed account of the day and how the event inspired him to move to Los Angeles. Now a comedian with his own TV show, a special on Comedy Central, and an endorsement deal with Buffalo Wild Wings, Rannazzisi's lie is biting him back.

Rannazzisi posted a series of tweets, but his confession doesn't seem to be winning him any favors. He also published a statement, which The New York Times called "contrite":

"It was profoundly disrespectful to those who perished and those who lost loved ones. The stupidity and guilt I have felt for many years has not abated. It was an early taste of having a public persona, and I made a terrible mistake. All I can ask is for forgiveness."

Buffalo Wild Wings is reconsidering their deal:  

"We are disappointed to learn of Steve's misrepresentations regarding the events of September 11, 2001. We are currently re-evaluating our relationship with Steve pending a review of all the facts."

Discussion Starters: 

• What's your assessment of Rannazzisi's tweets and statement?
• Should Buffalo Wild Wings cancel his contract? Should Comedy Central cancel his show? If so, what should they say?

Auschwitz Museum Accused of Insensitivity

Management of the Auschwitz museum in Poland say they were just trying to cool off visitors from the heat, but people took offense to the sprinkler system they say reminded them of gas chambers used during the Holocaust. A visitor from Israel said, "As soon as I got off the bus I walked into the shower contraption. I was in shock. It was a punch to the gut."

A spokesperson for the museum told TIME, "Because of the extreme heat wave we have experienced in August in Poland, mist sprinklers which cool the air were placed near the entrance to the Museum. The mist sprinkles do not look like showers and the fake showers installed by Germans inside some of the gas chambers were not used to deliver gas into them."

He also said, "The safety and health of visitors are our priority during the period of extreme heat. Cooling air have been really helpful to visitors in this difficult situation."

Image source.

Discussion Starters:

• What's your view of the situation? Should the museum have had the foresight to avoid this controversy? Should the management handle the situation differently now? Or are people just being overly sensitive?
• Can you think of a statement that would address visitors' concerns, yet explain management's perspective in a more balanced way?

Is Dr. Dre's Apology Enough?

The movie "Straight Outta Compton" about hip hop has raised questions about Dr. Dre's history of domestic violence. One victim called the film "revisionist history" because it omitted incidents of abuse by members of N.W.A.

Dr. Dre did issue this statement to The New York Times:

"Twenty-five years ago I was a young man drinking too much and in over my head with no real structure in my life. However, none of this is an excuse for what I did. I've been married for 19 years and every day I'm working to be a better man for my family, seeking guidance along the way. I'm doing everything I can so I never resemble that man again."

He added, "I apologize to the women I've hurt. I deeply regret what I did and know that it has forever impacted all of our lives."

Apple, which hires Dr. Dre as a top consultant, also issued a statement:

"Dre has apologized for the mistakes he's made in the past and he's said that he's not the same person that he was 25 years ago. After working with him for a year and a half, we have every reason to believe that he has changed."

Victims and reporters have been highlighting Dr. Dre's past. And the LA Times reported that an abuse scene was in an earlier version of the movie but was cut.

The controversy doesn't seem to be affecting movie goers. Box office results show "Straight Outta Compton" leading this weekend with $26 million in sales after a $60 million opening.  

Image source.

Discussion Starters:

• Are you convinced by Dr. Dre's apology? Is it enough?
• Did Apple do the right thing by issuing its own apology? What are the risks?

McDonald's Copies Burrito Ads

McDonald's has apologized for using photographs similar to another campaign. About a month ago, photos of a man getting engaged to a burrito were making the rounds on Twitter. Recently, McDonald's showed a series of photos of people in similar positions with its food. Compare the left and right images below, shown on Adweek.

David Sikorski, a freelance writer, told Adweek that he created the idea:

"I came up with the concept as a satirical take on the engagement photos that flood my everyday social media channels. The photos are in fact licensed. We gave permission to BuzzFeed for the first use of the photos within an article highlighting the project."

Kristina Bakrevski was the photographer for the campaign. She said, "My reaction was shock, disbelief. I was mad, even though a lot of friends told me the imitation was a form of flattery." For its part, McDonald's responded:

"This shouldn't have happened, and, with our agency partner, we're working to find out how it did. We're reaching out to David Sikorski and Kristina Bakrevski. We apologize to them, their fans and ours."

Discussion Starters:

• McDonald's statement says they will explore how this happened. What are your theories, and how could this have been prevented?
• What else, if anything, should McDonald's do? How could the company avoid a lawsuit at this point?
• Sikorski and Bakrevski said they would like to be paid. How much do you think is appropriate?

Chicago Tribune Takes Heat for Katrina Op-Ed

An opinion piece in the Chicago Tribune titled, "In Chicago, wishing for a Hurricane Katrina," has offended many who survived the devastating storm. The author's point was that New Orleans is better off today than before Hurricane Katrina. Kristen McQueary gives examples of an overthrown government, new housing, and improved schools: "Hurricane Katrina gave a great American city a rebirth."

Still, people didn't appreciate the humor: 

 

The newspaper has changed the article title to "Chicago, New Orleans, and rebirth" and removed some of the more offensive parts. But McQueary doesn't seem moved. 

Discussion Starters: 

• Read the original article. What's your reaction: does it offend you, do you see McQueary's point, or something else?
• McQueary's tweet seems to imply that, if would just read the piece, we would understand her perspective and why it's valid. How is her thinking flawed? 
• If she were to write an apology, what could she say to rebuild trust in herself as a journalist and for the Chicago Tribune?

Controversy About CEO Pay Disclosure

The U.S. Securities and Exchange Commission voted to require CEOs to disclose how their pay compares to that of employees in their organization. The requirement is part of the Dodd-Frank Act, passed in 2010 to prevent another financial crisis and to protect consumers. 

SEC Press Release

The decision is one strategy for what people consider pay inequity between high- and low-earners in the United States, which has increased dramatically, as reported by BloombergBusiness: 

"Average CEO pay at the 350 largest U.S. companies by revenue surged 997 percent from 1978 to 2014, while the compensation of non-supervisory employees rose 10.9 percent, according to the Economic Policy Institute, a research group that advocates for workers.

"While CEOs earned about 30 times what the typical employee did in 1978, corporate chiefs' pay had jumped to more than 300 times their employees' compensation as of 2014, the institute said."

Opponents say the ruling creates an expensive process and will serve only to embarrass CEOs. But the decision offers several ways for companies to calculate wages, excludes up to 5% of foreign workers, and requires reporting only every three years.

Discussion Starters: 

• What's your view of the ruling? Is this the right move, and will it achieve its purpose? 
• How do you assess the Economic Policy data shown above? What story do the numbers tell, and what may be missing? 
• How could you display the Economic Policy Institute data visually? What chart type(s) would be most appropriate? 

"Gawker Grows Up"

After big executive news last week, Gawker CEO Nick Denton wrote a long message to staff. Gawker's executive editor and the editor-in-chief of Gawker.com resigned after an article, which revealed that a high-ranking magazine executive was texting a gay escort, was removed from the site after a board vote. Denton explained the decision in a post, including, "The point of this story was not in my view sufficient to offset the embarrassment to the subject and his family." 

The executives' perspective, reflected partly in a message from Max Read (editor-in-chief) to Gawker writers, was about the faulty separation between editorial freedom and business (my paraphrase):

"On Friday a post was deleted from Gawker over the strenuous objections of Tommy and myself, as well as the entire staff of executive editors. That this post was deleted at all is an absolute surrender of Gawker's claim to 'radical transparency'; that non-editorial business executives were given a vote in the decision to remove it is an unacceptable and unprecedented breach of the editorial firewall, and turns Gawker's claim to be the world's largest independent media company into, essentially, a joke." 

In his message to staff, CEO Denton discussed these issues and announced management team changes. Part of his post addressed controversy about the removed story: 

"My professional life is committed to a free press and open discourse. While the reputation of our media brands remains a proper concern of the company, we do not and will not make story decisions based on advertiser feedback. Our credibility with both readers and advertisers depends on strong, incisive and independent journalism.

"I will put the company on the line rather than cave to legal pressure from the subject of a story, no matter how powerful. I will preserve Gawker Media's reputation for fighting press freedom cases that other media companies would settle.

"In regards to the recent story about a media executive blackmailed by an escort, I've explained extensively I ordered this misjudged exposé removed because it was not in line with the editorial standards I believe Gawker.com should maintain. And yes, it was also damaging to the brand of Gawker.com and the reputation of the company that shares the same name."

Denton ended his message, "Gawker grows up." 

Image source.

Discussion Starters: 

• Explain the executives' and the CEO's positions on the removed story in your own words.
• How is this story relevant to business communicators? 
• Assess Denton's message to staff. What works well, and what could be improved in the organization, tone, writing style, and so on?

People Duped by Twitter Story

A fake story that Bloomberg is buying Twitter sent shares up 8.5% at one point. The news came from the website bloomberg.market-not the real bloomberg.com-with the title "Twitter attracts suitors." The report claimed Bloomberg would acquire Twitter for $31 billion.

According to a Reuters article, experts say the "fake website and report did not require a high level of skill." Anyone can register a website. What's surprising is that people believed the news so readily. Former CEO Dick Costolo's name was misspelled as Costelo in the article. 

Although Twitter and the SEC didn't comment on the story, Bloomberg Ty Trippet representative offered a brief statement: "The story was fake and appeared on a bogus website that was not affiliated with Bloomberg." 

Image source.

Discussion Starters: 

• What principles of evaluating sources from Chapter 9 would have helped readers assess the story? 
• Should Twitter have made a statement about the story? Why or why not? If so, what should the company have said?
• What are the ethical considerations in this story? Who got hurt? 

Subway Cuts Ties with Jared

After more than 15 years as the Subway poster-child, Jared Fogle may have to find a new gig. The company has cut ties with Fogle after learning about an investigation related to child pornography.

Fogle lost 245 pounds in 1999 and starred in his first Subway ad in January 2000 with the disclaimer, "The Subway diet, combined with a lot of walking, worked for Jared. We're not saying this is for everyone. You should check with your doctor before starting any diet program. But it worked for Jared." This started an advertising campaign to emphasize healthy food options at Subway.

Of course, Fogle may be exonerated of any wrongdoing. A raid on Fogle's home was instigated by the arrest of a former executive director of Fogle's nonprofit organization, whose mission is to combat childhood obesity.

Subway isn't taking any chances. In a statement, the company said, "Jared continues to cooperate with authorities and he expects no actions to be forthcoming. Both Jared and Subway agree that this was the appropriate step to take."

Discussion Starters:

• Did Subway do the right thing? What if Jared is proved innocent? Could he have legal grounds to sue Subway?
• Some believe it's time for Jared to go, anyway. What do you think, based on the company's performance, goals, and so on?

Deceptive Native Advertising and Other Issues

After binge-listening to Serial, I'm hooked on StartUp, the show about a new podcast company, Gimlet Media. Episode 9 of Season 1 is an excellent example of crisis communication and some problems associated with advertising. 

A podcast includes an ad of a nine-year-old boy describing how he uses a website. The boy and his mother weren't clear that the interview would be for an ad; instead, the proud mom thought her son would be interviewed for a "This American Life" radio show. In the episode, StartUp founder Alex Blumberg describes the mistake, which wasn't intentional but got a lot of social media attention.

The story reminded me of a study recently published by Reuters Institute. According to the research, "More than a third of British and American readers of online news say they have felt 'disappointed or deceived' after reading an article that turned out to be paid for by an advertiser." This is the dilemma of native advertising, which the Reuters study describes as follows: 

"Brand messages look more like regular content – sitting in the same templates and using the same formats that might be used for a standard piece of journalism or a user-generated post on social media."

Although this isn't quite the same as the StartUp controversy, both methods of advertising need to be handled well. In the StartUp episode, Blumberg describes how careful the company is to let people know an advertisement is coming, so it's not mistaken for program content. Blumberg also explains the value of native advertising but is careful not to endorse products just because they're paid to do so. 

Discussion Starters: 

• What's your reaction to native advertising? Have you been duped? How did you feel?
• What mistakes did the Gimlet team make in Episode 9?
• What are the mother's responsibilities in the situation? What, if anything, could she have done differently?