Smashing Keurigs to Defend Roy Moore

TempPeople are posting videos of themselves destroying their Keurig coffee machines to protest the company's decision to pull advertising from Fox News because of an interview with Roy Moore. Moore, who is running for Senator for Alabama, has been accused of having sexual relations with a 14-year-old girl and other teenagers when he was in his 30s.

Sean Hannity interviewed Moore, and Keurig and other advertisers, including E-Trade, Realtor.com, ELOQUII, 23andMe, and Nature's Bounty, thought the interview was too light and let Moore off easily. Keurig CEO Bob Gamgort explained his reasoning in an email to employees including this excerpt:

"The catalyst for the current situation was commentary made by Sean Hannity on his TV and radio programs last week, which sparked a significant number of consumer complaints directed to us as advertisers on his TV program. Hannity himself later apologized for his comments in his own tweet: "As I said on TV tonight, I apologize when I misspoke and was not totally clear earlier today."

Hannity's conservative fans aren't happy with the decision.

UPDATE: Some advertisers deleted tweets, which does not reflect well on the brands.

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Discussion:

  • Assess the CEO's full email to employees. Analyze his audience and communication objectives. How well does he explain the situation?
  • In what ways is this an issue of integrity for multiple people involved?

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.

Florida State University Suspends Greek Life Activities

A fraternity member's death was the last straw for the president of Florida State University. John E. Thrasher suspended all fraternity and sorority activities on campus, calling for "a new normal for Greek life." Temp

The student death, which occurred during pledging, follows another student death in September and cocaine charges for another member. In a statement, Thrasher explained the decision and called on the Greek community to find innovative practices. He emphasized the importance of the pause: "The president said this pause is needed to review and reflect on the loss of a young life."

In a long list, the university itemizes what is not allowed, including meetings or events, and specific FSU activities are mentioned, such as Homecoming "pomping, skit night, or spear-it night."

Discussion:

  • The university website refers to the decision as an "indefinite interim suspension." Sounds redundant, doesn't it? Do you think this is intentional or a grammatical oversight?
  • Assess the university's FAQs. How well does the administration anticipate and address questions?
  • The president is demonstrating compassion and courage, but of course, not everyone agrees with the decision. What are the counterarguments?

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?

Two NPR Executives Leave

TempNPR's head of the news division was forced to resign after two women accused him of sexual harassment. Michael Oreskes admitted his failings in a statement:

"I am deeply sorry to the people I hurt. My behavior was wrong and inexcusable, and I accept full responsibility."

Soon after, NPR's chief executive, Jarl Mohn, announced a medical leave:

"As many of you know, last March, I suffered a nearly fatal ruptured aorta. I returned to work with the blessing of my physician with one important caveat - I cannot allow my blood pressure to rise. Regretfully, the hypertension has returned to a dangerous level."

Mohn said he noticed other issues with Oreskes, for example, inappropriate expense reporting, and took some responsibility for the impact of Oreskes' behavior:

"In retrospect, I did not see the bigger pattern of poor judgment and unacceptable behavior. I am sorry, and I have learned from this."

The news hit the industry hard, partly because we rely on reporters' integrity, particularly when allegations of "fake news" are common on both sides of the political aisle.

Discussion:

  • Should we have higher standards for news reporters? Why or why not?
  • Did Mohn do the right thing by resigning? What are the arguments on both sides of his decision?

We Learn More About Kevin Spacey

TempNot so shocking, more people are coming forward to complain about Kevin Spacey's sexual behavior. Crew members of "House of Cards" say he created a "toxic" work environment, particularly for young men. A production assistant accused him of assault, and seven others tell stories of aggressive touching, inappropriate comments, and other harassing behavior.

Spacey is experiencing more fallout from the news. In addition to Netflix's ending the show and the Emmy's cancelling a special award, Netflix announced it will not allow Spacey back on set. The company issued this statement: 

"Netflix was just made aware of one incident, five years ago, that we were informed was resolved swiftly. On Tuesday, in collaboration with MRC, we suspended production, knowing that Kevin Spacey wasn't scheduled to work until Wednesday. Netflix is not aware of any other incidents involving Kevin Spacey on-set. We continue to collaborate with MRC and other production partners to maintain a safe and respectful working environment. We will continue to work with MRC during this hiatus time to evaluate our path forward as it relates to the production, and have nothing further to share at this time."

His publicist and talent agency also ended their relationship.

Discussion:

  • Knowing more about the complaints now, do you think Spacey should have handled his initial apology to Anthony Rapp and coming out statement differently?
  • Assess Netflix's statement: who is the audience, and what are the communication objectives? What works well, and what could be improved?
  • What's your view of the publicist ending their relationship? What if the publicist helped Spacey with the initial statement? Does that change your view? Why or why not?

Pizza Hut and Papa John's Jump into NFL Controversy

Should CEOs get involved in political controversies? While some applaud "brand activism," others criticize business leaders who don't agree with their views.

Papa John's CEO has been vocal about the business impact of NFL players not standing during the national anthem. When explaining same-store sales, John Schnatter blamed NFL leadership:

"We are totally disappointed that the NFL and its leadership did not resolve the ongoing situation to the satisfaction of all parties long ago. This should have been nipped in the bud a year and a half ago."

Schnatter also said, "Leadership starts at the top, and this is an example of poor leadership." Schnatter contributed $1,000 to President Trump's election campaign and is aligned with the president's views on the subject. He blamed the "polarizing" actions of team members for causing declining viewership and fewer pizza orders. 

But others say NFL viewership was declining long before this political controversy, and Pizza Hut jumped into the conversation. Greg Creed, CEO of Yum! Brands, Pizza Hut's parent company, said the NFL hasn't affected its sales at all.

Daniel Roberts tweeted stock comparisons on Yahoo to show that Papa John's (in red) has been declining for some time. Yum Brands is in blue. But we should be careful about comparing "apples and oranges" here.

Discussion:

  • How is the stock comparison flawed? (Hint: What companies are compared?)
  • What do you think of Papa John's CEO's statements? Should he stay out of it, or is he right to express his views?
  • How is this story an issue of leader integrity?

A Chef Resigns After Sexual Harassment Charges

An investigation found 25 employees of Besh Restaurant Group claiming sexual harassment. BRG owns 14 restaurants, including Restaurant August in New Orleans and Johnny Sanchez in New Orleans and Baltimore.

The women describe a hostile working environment where "vulgar and offensive comments, aggressive unwelcomed touching, and sexual advances were condoned and sometimes even encouraged by managers and supervisors." Some charges were against John Besh, co-owner of the group.

When faced with the first complaint, Besh said it was "a consensual relationship with one member of my team." But additional women came forward, and it became more difficult for Besh to isolate the incident. BRG announced Besh's decision to resign. In an email to employees, CEO Shannon wrote, "John has decided to step down from all aspects of operations and to provide his full focus on his family."

Besh and BRG issued statements in response to the claims.

John Besh's statement:

"Two years ago, I deeply hurt those I love by thoughtlessly engaging in a consensual relationship with one member of my team. Since then I have been seeking to rebuild my marriage and come to terms with my reckless actions given the profound love I have for my wife, my boys and my Catholic faith. I also regret any harm this may have caused to my second family at the restaurant group, and sincerely apologize to anyone past and present who has worked for me who found my behavior as unacceptable as I do.

"I alone am entirely responsible for my moral failings. This is not the way the head of a company like ours should have acted, let alone a husband and father. But it should not taint our incredible team of more than 1,000 employees, nor undermine our unyielding commitment to treating everyone with respect and dignity, regardless of gender, race, age and sexual preference."

Statement from Raymond Landry, Besh Restaurant Group's general counsel:

"We have learned recently that a number of women in our company feel that we have not had a clear mechanism in place to allow them to voice concerns about receiving the respect they deserve on the job. I want to assure all of our employees that if even a single person feels this way, it is one person too many and that ends now.

"While we've had a complaint procedure in place that complies with all existing laws, we now recognize that, as a practical matter, we needed to do more than what the law requires and we have revamped our training, education and procedures accordingly. Now that we have learned of these concerns, we believe going forward that everyone at our company will be fully aware of the clear procedures that are now in place to safeguard against anyone feeling that his or her concerns will not be heard and addressed free from retaliation."

Discussion:

  • Analyze Besh's response: the first attempt, his statement, and his decision to step down.
  • How well does Landry's statement for BRG address the situation? What, if anything, should the company do differently?

Harvey Weinstein's Plea

TempHarvey Weinstein may have worsened his case by sending emails to friends asking for their defense. After several allegations of sexual harassment and at least two charges of assault over decades, the Hollywood producer's board of directors was getting ready to fire him from the company. Not willing to go quietly, Weinstein emailed people, including Jeffrey Katzenberg, the chairman of Walt Disney Studies. But he didn't get the response he was expecting.

Weinstein's email is below. He demonstrates some vulnerability but fails to take full responsibility, instead saying "a lot of the allegations are false as you know":

My board is thinking of firing me. All I'm asking, is let me take a leave of absence and get into heavy therapy and counseling. Whether it be in a facility or somewhere else, allow me to resurrect myself with a second chance. A lot of the allegations are false as you know but given therapy and counseling as other people have done, I think I'd be able to get there. 

I could really use your support or just your honesty if you can't support me. 

But if you can, I need you to send a letter to my private gmail address. The letter would only go to the board and no one else. We believe what the board is trying to do is not only wrong but might be illegal and would destroy the company. If you could write this letter backing me, getting me the help and time away I need, and also stating your opposition to the board firing me, it would help me a lot. I am desperate for your help. Just give me the time to have therapy. Do not let me be fired. If the industry supports me, that is all I need. 

With all due respect, I need the letter today.

Instead, Katzenberg emailed Weinstein and made his response public. In part, he says, "You have done terrible things to a number of women over a period of years," yet Katzenberg calls him a friend and offers his help.

An interesting part of this story is the criticism of men who have come forward with a preface such as, "As a father of two daughters." A writer for Vulture explains this perspective.

Image source.

Discussion:

  • What's your view of Weinstein's letter to his friends? What other approaches could he take knowing his board is planning to fire him?
  • How do you assess Katzenberg's response and his choice to make the email public? Is he a bad friend? What is he trying to accomplish for himself and for Weinstein in his response?
  • Finally, what's your view of people referencing their wives and daughters? Is the Vulture writer's perspective spot on, too harsh, or something else?

Pro-Life Congressman Resigns

TempWe might expect a congressman who serves on the U.S. government's House Pro-Life Caucus to be against abortion in his personal life. But Representative Tim Murphy reportedly suggested that his girlfriend get an abortion if she is pregnant.

A women who says she was having an affair with Murphy went public with text messages:

She: "...zero issue posting your pro-life stance all over the place when you had no issue asking me to abort our unborn child just last week when we thought that was one of the options."

He: "I've never written them. Staff does them. I read them and winced. I told staff don't write any more."

Curiously, he didn't dispute her allegation about the abortion request. Pro-life advocates criticized Murphy for his "hypocrisy."

Although the woman wasn't pregnant, Murphy resigned from his position. House Speaker Paul Ryan announced the decision, saying "I think it's appropriate he move on to the next chapter in his life." Murphy said he'll "take personal time to seek help as my family and I continue to work through our personal difficulties." 

Murphy also posted a statement on his website:

Statement From Congressman Tim Murphy

For Immediate Release: October 4, 2017
Contact: Carly Atchison 202.225.2301

WASHINGTON, DC - Today Congressman Tim Murphy (PA-18) released the following statement:

"After discussions with my family and staff, I have come to the decision that I will not seek reelection to Congress at the end of my current term.
 
"I plan to spend my remaining months in office continuing my work as the national leader on mental health care reform, as well as issues affecting working families in southwestern Pennsylvania.
 
"We have accomplished much in the past year through the Helping Families in Mental Health Crisis Act and there is much work yet to be done.
 
"In the coming weeks I will take personal time to seek help as my family and I continue to work through our personal difficulties and seek healing. I ask you to respect our privacy during this time." 

Image source.

Discussion:

  • Assess Murphy's statement. How well does his address the situation? What else, if anything, could he say, or what could he say differently?
  • In what ways is this situation an issue of integrity? Do you see a contradiction, or do you believe Murphy's political stance and personal stance may differ?

Equifax Visits Congress

TempFormer Equifax CEO Richard Smith admitted failures during a House Energy and Commerce Committee hearing. Smith had already apologized in a video statement, but during the hearing, he mentioned his personal accountability:

"The criminal hack happened on my watch. I am truly and deeply sorry for what happened."

Yet critics say that Equifax is still not taking full responsibility. A TechCrunch article highlights Smith's testimony blaming one person: 

"The human error was that the individual who's responsible for communicating in the organization to apply the patch, did not."

The TechCrunch writer seems to think this is ridiculous:

"The notion that just one person didn't do their job and led to the biggest breach in history is quite an amazing claim and shows a fundamental lack of good security practices. But that's what Smith says led to this disaster."

Smith and Equifax's CIO retired from the company after the news became public, which took a while: executives apparently knew about a software issue back in March, but the company didn't announce the breach until September.

A Wired article cites "6 Fresh Horrors from the Equifax CEO's Congressional Hearing." In addition to the delayed admission, the article attack's Equifax's technology, including inadequate patching, failure to encrypt data, limited security reviews, and insufficient website capabilities.

Another twist is this case is why three top people in the company sold $1.8 million in stock around the time they would have learned of the breach. Smith denies questions of integrity:

"I've know these individual for up to 12 years. They're men of integrity. I have no indication that they had any knowledge of the breach when they made this sale." 

Image source.

Discussion:

  • Assess Smith's testimony. What parts do you find most and least convincing? 
  • What else, if anything, should Equifax do now to rebuild trust?
  • In what ways is this case an issue of integrity?

Harvey Weinstein Apologizes for Sexual Harassment

TempRevered Hollywood producer Harvey Weinstein has been accused of sexual harassment, and he has apologized. A New York Times article cites "decades" of sexual harassment, including regular reports of women seeing Weinstein partially or fully naked. Women also report being asked for massages and other sexual activities, but few reported them at the same.

He submitted a written apology that meets many of the criteria for a good apology, yet a reporter on The Daily described a different conversation with Weinstein. She indicated that, over the phone, Weinstein's response was more "complicated." She says that he denied some aspects of the accusations, and indeed, his attorney has said, "he denies many of the accusations as patently false."

Image source.

TempDiscussion:

  • Read the NY Times article. How credible do you find the women's reports? Which are more credible than others?
  • To what extent do you find Weinstein's written statement credible? How would you explain some of the contradictions between the statement and the quotations from him and his lawyer? 
  • In part, Weinstein describes another time, when his behavior was considered acceptable. (Think Mad Men.) Do you buy this argument? Why or why not?

Coca-Cola Works on Brand Image

TempYou won't hear the word "soda" in this Coca-Cola ad. The company is focusing on corporate advertising and trying to associate the brand with good things, such as employing people throughout the United States.

In the video, the narrator says, "We make much more than our name suggests," for example, tea and juice. The commercial emphasizes water sustainability and helping people go to college.

Clearly, the company is downplaying its connection to soda because of research and negative press. A Harvard nutrition page summarizes research linking sugary drinks to heart disease, type 2 diabetes, and other health problems. The site encourages people to choose different beverages.

Discussion:

  • How closely is the Coca-Cola name tied to soda? What else could the company do to improve brand image and perception of social responsibility?
  • What's your assessment of the commercial? What are the objectives, and does the ad meet them?
  • To what extent is the commercial an issue of integrity? Is the company consistent and whole?

Defense After Nurse Is Arrested

TempA nurse at a Utah hospital was arrested for disobeying an officer's request, and everyone seems to be apologizing. An officer asked Alex Wubbels to draw blood from a man who was unconscious, and she refused. Wubbels said, in order to draw blood, the patient would need to be under arrest, and she would need to see a warrant. She said she had authority from hospital administrators to maintain her position.

The police officer, Jeff L. Payne, became angry and said she would be arrested if she didn't comply. And then he followed through while Wubbels screamed for help. It seems that Officer Payne's anger may have impaired his judgment.

Statements from the Salt Lake City major and the chief of police offer apologies for the incident:

Mayor Jackie Biskupski:

"Like many of you, I watched the video of police officers interacting with University of Utah Medical Center nurse Alex Wubbles for the first time through the media late yesterday. What I saw is completely unacceptable to the values of my Administration and of the values of the Salt Lake City Police Department. I extend a personal apology to Ms. Wubbles for what she has been through for simply doing her job.

There is currently an Internal Affairs investigation examining the actions, and the Civilian Review Board is conducting a parallel investigation. I have reiterated to Chief Brown that I expect the highest level of professionalism and integrity from his team. I have also instructed Chief Brown to conduct a thorough review of all policies and trainings to ensure respect for all individuals, in all situations. Following the incident Salt Lake City Police Department command met with hospital administration. We immediately changed policies that may have been a factor in this encounter, and the officer's duties have been modified.

I take these incidences very seriously. Since I took office, I have been working with Salt Lake City Police Department to increase our use of de-escalation techniques and we have had great success, and this incident is a troubling set back to those efforts. No medical professional in Salt Lake City should be hindered from performing their duties, and certainly not be fearful of the police officers they so often partner with to save lives."

Chief Mike Brown:

"I was alarmed by what I saw in the video with our officer and Ms. Wubbles. I am sad at the rift this has caused between law-enforcement and the nurses we work so closely with. I want to be clear, we take this very seriously. Immediate steps were taken and within 12 hours, body cam footage was reviewed and an internal affairs investigation started. We've looked at the actions that took place, the policies that could have prevented it, and the training that must be done. Within 24 hours of this incident, Salt Lake City Police Department took steps to ensure this will never happen again. We met with hospital CEO and COO, Nursing Management Team, their legal representation team, and University of Utah Chief Brophy. 

Most notable of all these conversations were that we apologized for the incident and promised to find a solution. Additionally, our policy management team continues to work closely with the hospital staff on improved policies and training. 

To date, we have suspended the officer from the blood draw program. We have already replaced our blood draw policy with a new policy. All remaining officers on the blood draw program have reviewed, and are operating under the new policy and protocol.

It is my sincere desire to get back to a very cooperative, respectful, and friendly relationship with our "brothers and sisters in white" we work so closely with. Salt Lake City Police Officers have a very soft spot in our hearts for all medical professionals. We know that if we are ever hurt in the line of duty, it is their caring hands that will perhaps save our lives one day. 

I believe we can learn from mistakes and from building strong relationships with everyone we work with and serve. By doing that we become a stronger police department." 

In addition, Mayor Jackie Biskupski apologized during a news conference and announced an internal investigation. Biskupski also said they met with hospital administrators and changed some policies. Police Chief Mike Brown also apologized  and said they would put steps in place to make sure this type of incident doesn't happen again.  

Discussion:

  • How effective are the apologies from the mayor and police chief? What works well, and what could be improved?
  • How well did they answer questions? What were their best responses?
  • In what ways did the nurse demonstrate courage? What risks did she take to stand by her position?
  • How did she also demonstrate integrity?

Pastor Responds to Criticism

TempJoel Osteen, senior pastor at Lakewood Church in Houston, Texas, has a large following, but he has taken a hit since Hurricane Harvey. Critics say Osteen should have offered his mega-church, which seats 16,8000, to people needing housing after the storm. Instead, Osteen tweeted his prayers, and people say it wasn't enough.

Church officials said the building experienced "severe flooding," but pictures told a different story. In TV interviews, Osteen defended the church's practices. He said, "The main thing is, the city didn't ask us."

 In an article on PR Daily, Brad Phillips raised the issue of authenticity:

If you're cynical about televangelists, Osteen's tone in the Today show interview probably struck you as smarmy and self-satisfied. If you're one of the millions of people who watch his sermons and read his books, you probably viewed him as sincere.

Phillips also questioned why the church didn't have plans in place and, specifically, why the leaders didn't coordinate with Houston city officials ahead of time. 

The social media response has not been kind: memes abound.

Discussion:

  • What's your view of the church's actions during and after the hurricane?
  • How well did Osteen respond to criticism? What are his main arguments? Which are strongest, and which fall short?
  • Given Phillips' question about Osteen's authenticity, how do you view his interview on the Today show?
  • What's your view of the social media response and memes: cruel, justified, or something else?
  • How do your own religious beliefs or practices influence your assessment of the situation and of Osteen, particularly? 

Airbnb Steps Up During Hurricane Harvey

TempAirbnb is offering free rooms for people who had to leave their homes because of Hurricane Harvey. Evacuees won't have to pay fees to hosts through September 25. Originally, the offer was through September 1, but the company extended it after seeing the storm's devastation. Free listings appear for homes in Houston, Dallas, Austin, and San Antonio.

Conditions are explained on Airbnb's Disaster Response site. Currently, the site lists programs for Hurricane Harvey and for the Mumbai floods.

Other sharing companies have stepped up following the hurricane. Uber, Lyft, and WeWork are offering free services and other promotions. 

Discussion:

  • What examples of generosity have you seen during Hurricane Harvey?
  • How should a small business owner decide what to offer? What are the advantages and disadvantages of, for example, a restaurant offering free food?

Companies Criticized for Price Gouging

As Texans are desperate for housing and food in the aftermath of Hurricane Harvey, some companies are taking advantage. People reported hundreds of examples of price gouging for items like bottled water, groceries, gas, and hotel rooms. Temp

A Best Buy near Houston was selling a case of water for $42; others reported prices up to $99. Price gouging is illegal after natural disasters, as the Texas attorney general's site explains.

Best Buy issued a statement that this was the act of one store.Temp

A Best Western in Robstown was also over-charging: $321.89 a night compared to its usual price of $119. In addition to raising the room rate, the hotel added extra fees. The PR manager for Best Western's corporate office issued this statement:

"Best Western was founded on the principles of honesty, integrity, compassion, and service. We are deeply offended and saddened by the actions taken by this hotel. As a result, we are immediately severing any affiliation with the hotel. This hotel's actions are contrary to the values of Best Western. We do not tolerate this type of egregious and unethical behavior."

The hotel has been removed from Best Western's website.

Image source.

Discussion:

  • What's your view of raising prices during disasters? How is this different from revenue management?
  • Analyze Best Buy's statement. How well does this meet audience needs and communication objectives?
  • Did Best Western do the right thing in severing the hotel from the company? What will be the consequences of this action?

Is Poland Spring Water from Poland Spring?

Poland.jpg

A consumer lawsuit accuses Pepsi of falsely promoting Poland Spring Water. The product is marketed as "100% Poland Spring water," but the plaintiff group of 11 say it's really ground water. The company is accused of false advertising and misleading customers, and the plaintiffs seek $50 million in damages.

According to the Food and Drug Administration (FDA), spring water has a specific definition: "Spring water shall be collected only at the spring or through a bore hole tapping the underground formation feeding the spring. There shall be a natural force causing the water to flow to the surface through a natural orifice." Although a Poland Spring did exist in Maine, according to the suit, it dried up almost 50 years ago.

The accusations are an issue of behavioral integrity, as my colleague Tony Simons defines it: doing what you say you will do. In other words, does Nestle Water promise something it doesn't deliver?

Nestle Waters denies the claims. In response to the suit, the company created an extensive web page with a brief statement, two videos, and an infographic. The statement reads as follows:

For more than 170 years, Poland Spring® has delivered great tasting spring water from Maine to millions of people in the Northeast. The claims made in the lawsuit are without merit and an obvious attempt to manipulate the legal system for personal gain. Poland Spring® is 100% spring water. It meets the U.S. Food and Drug Administration regulations defining spring water, all state regulations governing spring classification for standards of identity, as well as all federal and state regulations governing spring water collection, good manufacturing practices, product quality and labeling. We remain highly confident in our legal position.

They are taking a strong approach to counter the claims, and they accuse the plaintiffs of seeking personal gain. One of the videos, only 30 seconds, demonstrates principles of persuasion: emotional appeal, logical argument, and credibility.

Discussion:

  • What elements of persuasion (pathos, logos, ethos) do you find in the video example? What other communication strategies does Nestle Water use on its web page?

  • Analyze the full infographic from this page. What communication design principles does the infographic illustrate? How could it be improved?

  • Given what little we know so far about the case, what's your view? Do you side more with the plaintiffs or with Nestle Water?

Martin Shkreli's Failed Communications

TempFormer pharmaceutical executive Martin Shkreli damaged his own case by failing basic communication principles. As a juror said, he is "his own worst enemy" and "All he had to do was to tell everyone, ‘I'm sorry, I lost the money, all I can say is I'm sorry,' and that would be it."

In other words, just apologize. The jury found him guilty of fraud because he lied to hedge fund investors.

Throughout his career in the media, Shkreli came across as arrogant and indifferent to his impact on others. His company hiked the price of Daraprim, a potentially life-saving drug, from $13.50 to $750 per pill. A Daily Beast article called him "reprehensible" and worse.

In 2014, he tweeted about his board of directors: 

In January of this year, Shkreli was banned from Twitter for harassing a journalist. In 2016, he testified before Congress, and we see why people consider him offensive. He "takes the fifth," which is his right, but his behavior shows his lack of compassion. MoneyWatch posted "The many smirks of Martin Shkreli" during the hearing.

Image source.

Discussion:

  • What is the value of an apology, and how could saying "I'm sorry" have helped Shkreli?
  • What non-verbal behavior does Shkreli demonstrate? For example, watch 8:00 - 9:00 of the Congressional hearing. How do you interpret his non-verbals?

Brother's Response to My Complaint

TempOn my Brother printer, the "Toner Low" light came on, and I shook the toner, which always gives me several more pages of good quality printing. But at some point, the printer wouldn't print anymore. To my eye, the pages still looked good. I was printing pages of my new book to proofread and didn't notice a difference for my purpose.

I emailed Brother to see if I could override the function and get more out of my cartridge. (Replacements cost about $50.) I saw several YouTube videos with instructions, so clearly I'm not the only one who has this idea. But I couldn't find my model. I asked Brother for help, and this is the response I received: download Brother printer response.

I appreciate that the purpose is up front in the email and that my question is answered. But the email is so long and not very well organized. Also, the writer spends a lot of time defending why the printers are set up to stop. Of course, quality is important, but shouldn't I get to decide what is "good enough" for my print jobs? My HP printers keep going until they're grey and streaked.

Discussion:

  • What's your view of the function to stop printing? Am I just cheap, or should Brother avoid the shutoff?
  • What are the communication objectives for Bother's response? What is important for a customer in this situation?
  • How could the writer have organized the email differently?
  • How clear are the instructions?
  • What else would improve the message?