L.L. Bean: Return Doesn't Mean Lifetime Replacement

L.L. Bean has had it with customers who abuse their generous return policy. The company is making two major changes: customers must return products within one year unless they are damaged, and customers must produce a receipt.

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A company spokesperson explained the decision:

"If it's been over a year and someone is able to provide a proof of purchase and if the product does not fall within one of our Special Conditions such as products damaged by misuse, abuse, pet damage, personal reasons unrelated to product performance or satisfaction and more, we would honor the return."

Although it was a small percentage of customers, some had taken advantage of the product "guarantee." The question we might ask is, Why did it take so long? Or, why now?

Discussion:

  • Why do you think L.L. Bean waited until now to tighten the return policy? What are the potential consequences of the decision?
  • Assess the message to customers. Who are the primary and secondary audiences? How well does the message meets its objectives?
  • How do you see this as an issue of integrity? How is L.L. Bean demonstrating learning from failure?

Misleading Headlines About the Market Dip

The stock market took a dive this week, but headlines are making it sound worse than it is. Here are three examples:

  • FoxNews: "Investors hope for reversal after biggest stock market dip of all time"
  • The Guardian: "Australian and Asian stock markets slide after Dow suffers biggest one-day points fall – as it happened"
  • CNBC: "Dow's nearly 1,600-point plunge marks its biggest one-day point drop ever"

The headlines are technically correct that a nearly 1,600 point decline is the largest in U.S. history, but looking at only the point value is misleading. A percentage drop would be a better indication of the effect. This table represents the largest daily stock market losses. The display below is sorted by point loss; the table at right is sorted by percentage. You can see that 2018-02-05 falls in rank when we look at the percentage.

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Also, the stock market has had incredible gains this past year, so the 26,000+ value could be viewed as an anomaly, and most analysts didn't believe those gains were sustainable.

Discussion:

  • What are the ethical considerations for news agencies publishing these headlines?
  • What might be a more appropriate headline for the news?
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Perhaps this one-year chart helps keep the loss in perspective. It includes today's rebound of 567 points.

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Questions of Transparency

The long-awaited memo written by Republican staff members about potential impropriety from the Justice Department and F.B.I in the Russia investigation has been revealed. Now, The New York Times editorial board is calling, once again, for President Trump to reveal his tax returns:

Since the Republicans are now on board with greater transparency, they will no doubt push President Trump to release his tax returns, as every other major-party presidential nominee has done for the past four decades, won’t they?

How about the White House visitor logs, which the Trump administration started hiding from the public last year? Or, say, the names of all foreign governments and officials who have stayed — at their own or at American taxpayers’ expense — at Mr. Trump’s Washington hotel, at his Mar-a-Lago resort in Florida or at his golf courses and his other businesses since he became president? Or the names of every foreign business with which the Trump Organization has a financial relationship, especially in countries where America has sensitive foreign policy interests, like China, India, Russia, Turkey or Saudi Arabia?

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The reasoning sounds like reciprocity, but the argument may not get no more traction now than it did during the presidential campaign. A Pew research study in January 2017 showed that 60% of those surveyed believed Trump "has responsibility" to release his returns. Although some were adamant about the release at the time, the Wall Street Journal, for example, reported that the returns wouldn't tell us much anyway.

Discussion:

  • What are the advantages and downsides of President Trump revealing his tax returns?
  • Read the entire opinion piece. What other arguments do the authors make?
  • Do you agree with their reasoning? Why or why not?
  • How would you describe the tone? Does the approach help or hurt the argument?

No More "Chief Wahoo" for Cleveland Indians

The Cleveland Indians has decided to remove its controversial logo, Chief Wahoo. Baseball Commissioner Rob Manfred encouraged the team to change the design on its uniforms, where it had been placed since 1948.

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Although some fans feel attached to the logo, others feel, as a New York Times article describes, "the use of ethnic groups as mascots and nicknames for teams is demeaning."

Manfred explained the decision in a statement:

"Major League Baseball is committed to building a culture of diversity and inclusion throughout the game. Over the past year, we encouraged dialogue with the Indians organization about the club's use of the Chief Wahoo logo. During our constructive conversations, [Indians owner] Paul Dolan made clear that there are fans who have a long-standing attachment to the logo and its place in the history of the team.

"Nonetheless, the club ultimately agreed with my position that the logo is no longer appropriate for on-field use in Major League Baseball, and I appreciate Mr. Dolan's acknowledgement that removing it from the on-field uniform by the start of the 2019 season is the right course."

Groups are pressuring the Washington Redskins and Atlanta Braves to change their names.

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Discussion:

  • Do you find the Chief Wahoo symbol offense? Why or why not? If not, how would you describe the position of those who do?
  • Did the Cleveland Indians make the right decision? Some believe Manfred overstepped by pressuring the team. What are your thoughts?

Call for Gymnastics Board to Resign

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As female athletes are recognized in a full-page newspaper ad for their courage in telling their stories of abuse, the U.S. Olympics CEO is calling for the entire USA Gymnastics board to resign by Wednesday.

In an open letter to Team USA Athletes, CEO Scott Blackman apologized and identified four next steps:

1. We Must Change the Culture of the Sport.
2. We Must Change the Governance Structure of the NGB.
3. We Must Know Who Knew What and When.
4. We Must Support Safe Sport Victims and Survivors.

Three members of the board already resigned, but critics say that is not enough. Blackman doesn't accuse any board members of knowing about abuse, but he says the culture must change and this is the best way to achieve that change.

Discussion:

  • What is the value of asking for the entire board's resignation? What, perhaps, are the limitations?
  • What should the board do?
  • How else can Blackman and the rest of the Olympics Committee make athletes feel safe again?

 

 

MSU President's Resignation Letter

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After calls for her resignation, Lou Anna Simon, the 13-year Michigan State University president submitted her letter. She could not escape criticism that she knew of Dr. Larry Nassar's sexual abuse of students and didn't do enough. Simons admitted encouraging an investigation and not receiving the final report. Reports also say that at least 14 university staff members received complaints about Nassar over two years.

Although most of the board initially supported her, students and others did not, and in the end, the board chair wrote, "We agree with Dr. Simon that it is now time for change."

Simon's letter is a mix of sympathy for the victims, love for the college, and defeat. In this paragraph, she focuses on blame:

As tragedies are politicized, blame is inevitable.  As president, it is only natural that I am the focus of this anger.  I understand, and that is why I have limited my personal statements.   Throughout my career, I have worked very hard to put Team MSU first.  Throughout my career, I have consistently and persistently spoken and worked on behalf of Team MSU.  I have tried to make it not about me.  I urge those who have supported my work to understand that I cannot make it about me now.  Therefore, I am tendering my resignation as president according to the terms of my employment agreement.

Discussion:

  • Critics say Simon shifts accountability in her letter, particularly the paragraph above. What's your view?
  • Did Simon make the right decision? Why or why not? 
  • What should the university do to help the campus recover from this situation? How can they rebuild trust and make MSU feel like a safe place?

Fudging Numbers to Make the NYC Subway Look Better

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New York Governor Andrew Cuomo's staff is criticized for inflating power-related issues as the cause of subway failures. Transit officials apparently broadened the definition of power issues so that Con Edison, the local utility company, would be given more of the blame when subways aren't running. Emails were discovered before Governor Cuomo was scheduled to give a breakfast talk, during which he said the number of outages due to power failures was 32,000 in the past year, while the actual number was more like 8,000:

When you we're a kid and you had a train set you had to plug it in. We have to plug in the MTA every morning and the MTA does not control the power supply to the MTA. Over the last 12 months, 32,000 delays because of power related issues and they can either be a power surge or power shortage, but 32,000 delays. The MTA doesn't control the power, Con Edison does. Con Edison has a duty to safely, prudently and effectively provide electricity that powers the subway system. Con Ed is a regulated utility under the state's Public Service Commission. April 21 after the last outage I ordered an investigation of the Con Ed infrastructure after a particularly devastating failure. The investigation goes on but PSC has already found that Con Ed must make immediate and significant improvements in this system because the reliability depends on it.   

The chief of staff of the transit agency wrote in an email that they were "looking for a higher delay number for power." The expanded definition was that ConEd "caused or contributed to" delays. One example is when a person jumps or falls onto the tracks; ConEd will shut off the power for safety. With the new definition, the delay becomes ConEd's fault.

Cover image source.

Discussion:

  • We certainly can use numbers to our advantage when trying to persuade others. How does this situation "cross a line"?
  • What should Governor Cuomo do now? What, if any, statement would be appropriate?
  • Do you remember "Bridegate" in New Jersey? How is this situation similar or different?

Calls for Michigan State President to Resign

Some believe it's a matter of integrity and accountability; others believe this will start the healing process. In addition to public demands, one Michigan State trustee says it's time for the university president to resign over Dr. Lawrence G. Nassar's sexual abuse of dozens of female athletes.

The rest of the university trustees have shown public support for the president, Lou Anna Simon. In a statement, they said, "President Simon is the right leader for the university, and she has our support." But the sole trustee, Mitch Lyons, disagrees:

“I don’t feel that President Simon can survive the public outcry that has been generated by this tragedy. I feel that our best recourse is for President Simon to resign immediately in order to allow the healing process to begin."

According to a Detriot News story, several university officials, including the president, heard complaints about Nassar. Simons admits, “I was informed that a sports medicine doctor was under investigation. I told people to play it straight up, and I did not receive a copy of the report. That’s the truth.” People question her judgment in not seeing the final report, particularly given the recent explosive case at Penn State University. We will see what happens next.

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Discussion:

  • Should Simon resign? Why or why not?
  • What does it take for Lyons to break rank with the rest of the trustees? How would you describe the possible dynamics on the board?
  • How does such abuse go on for so long? About 140 women complained about Nassar when he was working with Olympic athletes, and at least eight students came forward at the Michigan State.
  • At the end of the trustees' statement, a reporter asks, "Why no questions?" But the board leaves the room without saying anything. Should they have taken questions? Why or why not?

President Trump Refers to "S---hole" Countries

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During a meeting about immigration policy, lawmakers heard President Trump ask why the U.S. would admit people from "s---hole" countries like African countries and Haiti instead of places like Norway.

I have refrained here as have some TV news stations (NBC, shown here), but the major print news outlets—NY Times, Washington Post, and Wall Street Journal—all printed the actual profanity. The New York Times explains the decision:

But several media executives said on Thursday that the news value of Mr. Trump’s remarks, which the White House did not dispute, was undeniable.

“It would be futile to mask the word when the language itself, in reference to Haiti and African countries, was so extraordinary,” said The A.P.’s vice president for standards, John Daniszewski.

Discussion:

  • Why would some media outlets use the word, while others avoid it? What does the decision involve?
  • Some take issue with the reporting about "vulgar," "crude," or "profane" language, calling for the press to call the president a "racist" instead. What are your thoughts? First, does the comment indicate that he is a racist? Second, should the news agencies report this differently?
  • An argument could be made that the president is just being himself, authentic. What do you think of this view?

NBC's Integrity Called Into Question

NBC's Twitter account manager overstepped when posting about Oprah at the Golden Globes.  

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The company tweeted a correction and removed the post:

"Yesterday a tweet about the Golden Globes and Oprah Winfrey was sent by a third party agency for NBC Entertainment in real time during the broadcast. It is in reference to a joke made during the monologue and not meant to be a political statement. We have since removed the tweet." 

Donald Trump Jr. didn't miss the chance to reinforce his father's criticism of mainstream media as "fake news."

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Discussion:

  • How well did NBC handle the situation? What else, if anything, should the company do?
  • How damaging do you think this tweet is for NBC and for mainstream media?
  • To what extent did NBC demonstrate accountability?
  • What are the other dangers of outsourcing a Twitter account? (Hint: authenticity)

More Water Issues for Flint and No Response

Flint, Michigan, is in the news again for poor water quality. After findings of too much lead in drinking water, the city was under an agreement to replace faulty pipes, provide water filters, and report on progress. However, advocacy groups say the city is already falling short of the terms set in March of this year. According to the NPR article, "City and state officials did not immediately respond to the allegations."

Although some water service lines have been replaced, the number is not keeping pace with the agreement. Critics say that "all of the City's status reports have been late, incomplete, inaccurate, or a combination thereof."

The government has its own messaging on a website from the mayor's office. According to the data and chart, the city is "on track."

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Discussion:

  • Read the criticism and the mayor's report. What are the discrepancies, and how do you account for them?
  • What else, if anything, should the city do to communicate its progress and demonstrate accountability?

Papa John's Vague Message About a New CEO

Papa John's Founder and CEO John Schnatter will be replaced by a long-time insider, Steve Ritchie. Although the company didn't confirm a connection, a New York Times report assumes the move is related to Schnatter's controversial statements about the NFL. He blamed NFL leadership for allowing players to kneel during the national anthem, which he said led to declining viewership and, as a result, declining pizza sales.

The company's news statement also says little about the decision. Instead, the message focuses on Ritchie's qualifications, with endorsements from Schnatter, who will remain board chair.

Schnatter's accusations were criticized by some and, unfortunately, touted by white supremacist groups. Schnatter did his best to disentangle from the association with hate groups, but the damage may have been done.

Image source.

Discussion:

  • Did the company make the right decision? What are the potential consequences?
  • Should Papa John's say more about the reason Schnatter is stepping down? Why or why not?

 

Banned Words for the CDC?

The Washington Post may have "mischaracterized" a report that the Centers for Disease Control (CDC) was "banned" from using certain words in its budget documents. Reports claimed that the Trump Administration would prevent the CDC from using these seven words: vulnerable, entitlement, diversity, transgender, fetus, evidence-based, and science-based.

But in a Facebook post, CDC Director Brenda Fitzgerald denied such restrictions. She is upholding the integrity of the organization.

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What really transpired between the CDC and the Trump Administration? The Human Rights Commission, an LGBTQ organization, wants to know. In addition to projecting the seven words boldly across a Trump hotel in Washington, D.C., in protest, the organization has asked for more information:

"In conjunction with the enormous light display, HRC has filed a Freedom of Information Act (FOIA) with the Department of Health and Human Services (HHS) for any and all records, including communications with the CDC, relating to the banned words from November 2016 onward."

Discussion:

  • How is this an issue of integrity for the CDC? What do you think actually transpired between the CDC and the Trump Administration?
  • Where do you think the Washington Post went wrong—or did it?
  • Assess the CDC director's response. How well did she handle the issue and rebuild the agency's image? 

Roy Moore's Wife Doesn't Help His Case

At a campaign rally the day before her husband's election for U.S. Senator, Kayla Moore tries to convince audiences that he is a good man. As Roy Moore is accused of sexual assault and harassment of minors, Mrs. Moore tells the audience, "One of our lawyers is a Jew." 

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Mrs. Moore apparently didn't realize that the expression, "Some of my best friends are _______" has become a joke. In addition to her arguments against anti-Semitism, she said, "We have many friends that are Black, and we also fellowship with them in our church and in our home." 

We hear weak, scattered applause after this comment. After her note about their attorney, we hear some laughter; perhaps people were embarrassed for her, or perhaps they thought she was poking fun at the old expression. But she was not.

President Trump continues to campaign for Roy Moore as we wait for the people of Alabama to decide tonight. 

Discussion:

  • How do you assess Kayla Moore's speech? Her husband seems proud. How do you explain it? 
  • Do you agree with the criticism or find it too harsh? 
  • What else could Kayla Moore have said to support her husband? 

 

Persuasive Letter from Scholars to NYC Mayor

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

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

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

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

In closing the letter, the group suggests alternatives:

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

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Discussion:

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

Indiana University Is Next to Suspend Greek Life

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

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

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

Discussion:

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

NBC Fires Matt Lauer

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Another media star has fallen after reports of sexual harassment. NBC fired Matt Lauer after one complaint, but the company mentioned more were likely—and they have come.

Several women tell about Lauer's inappropriate attention, advances, and exposure. He played what Variety called a "crass quiz" at work that categorized women.  

Lauer worked for NBC since 1994, mostly as a "Today" show co-host. Known as "the crown jewel of the network’s news division," Lauer interviewed U.S. presidents and other senior leaders and celebrities throughout this career.

On air, Savannah Guthrie, Lauer's co-host on the show, read a statement from NBC Chairman Andy Lack. She was emotional as she read the decision.

Lauer issued this apology statement

"There are no words to express my sorrow and regret for the pain I have caused others by words and actions. To the people I have hurt, I am truly sorry. As I am writing this I realize the depth of the damage and disappointment I have left behind at home and at NBC.

"Some of what is being said about me is untrue or mischaracterized, but there is enough truth in these stories to make me feel embarrassed and ashamed. I regret that my shame is now shared by the people I cherish dearly.

"Repairing the damage will take a lot of time and soul searching and I'm committed to beginning that effort. It is now my full time job. The last two days have forced me to take a very hard look at my own troubling flaws. It's been humbling. I am blessed to be surrounded by the people I love. I thank them for their patience and grace."

Discussion:

  • How well does Guthrie handle the announcement?
  • Did NBC do the right thing in terminating Lauer? Was it too much of a risk after just one complaint?
  • Assess Lauer's apology. How convincing do you find the statement? What else, if anything, could he say?

Should You Leave a Company Involved in a Scandal?

TempA Wall Street Journal article explores the impact on employees whose company embarrasses them. When mired in a scandal, the company no longer reflects our values, and we may want to end the association.

An employee at Uber, for example, left after news about sexual harassment became public. Her family questioned her affiliation and, as she describes, "staying there would have meant going against what I believe in." Employees who want to live their values may feel better leaving. Of course, this assumes that people have opportunities elsewhere, which isn't the case for everyone.

The article warns against making a rash decision and suggests alternatives:  

WHEN YOUR EMPLOYER'S IMAGE STRESSES YOU OUT

  • Take time to calm feelings of stress or anxiety.
  • Consider other options before quitting.
  • Spend more time on job tasks that are meaningful to you.
  • Find something to love in your company's mission.
  • Try to fix some part of the company's problem that you can control.
  • Strengthen relationships with people at work you enjoy.
  • Mentor and encourage subordinates who show promise.
  • Work on building skills that will help you in the future.

Discussion:

  • Have you been a part of organization that didn't align with your values? How did you handle the situation?
  • Which of the article's suggestions do you find most and least useful? Which have you used in the past?

Papa John's Gets Clear About Neo-Nazis

TempAfter Papa John's CEO John Schnatter criticized NFL leadership for allowing players to kneel during the national anthem, the alt-right claimed Papa John's as their "official pizza." The announcement came on The Daily Stormer, a neo-Nazi website.

This was a little too close for Schnatter, and he denounced neo-Nazis in a series of tweets, the last one including a middle finger. In addition, company wrote in a statement, "We condemn racism in all forms and any and all hate groups that support it. We do not want these individuals or groups to buy our pizza."

Papa John's has softened its stance. The company also replied to a critical tweet after this series was tweeted:

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Discussion:

  • Read all of Papa John's tweets. How well is the company recovering from the situation?
  • Clearly, they are alienating neo-Nazis-and that seems to be the point. What are the benefits and downsides of their approach? On balance, why do you think the company made this decision?

Professor's Derogatory Yelp Review

TempA Boston University professor posted a Yelp review with personal comments about restaurant employees. Dirk Hackbarth, at BU's Questrom School of Business, didn't like the service at Café ArtScience and wrote a review, referring to the employees' weight. He described the general manager as "fat guy" and wrote of the bar director, "Asian cool skinny dude at bar was friendly but knew he was powerless vis a vis the host - different weight class I guess though fat guy probably never heard of mma [mixed martial arts] tricks etc."

The school dean tweeted,

"We are aware of an inappropriate Yelp review posted by a member of our faculty. It does not represent our views and values. We are extremely disappointed by this occurrence."

The original Yelp post was deleted. Two prohibitions in Yelp's Terms of Service may apply to this situation:

  • Writing a defamatory review
  • Promoting bigotry or discrimination

Discussion:

  • Assess the dean's response. Who is his audience, and what are his objectives?
  • Did Yelp do the right thing by deleting the review? Why or why not?
  • How do you see this situation as potential issues of humility and integrity? Consider the professor's role and standing at the university.