Data in the Uber's Safety Report

Uber published its first safety report, and the company is lauded for its transparency. A Wall Street Journal article leads with the number of sexual assaults reported during the last two years: 5,981. Of course, any number is too many—no one should be assaulted in an Uber or anywhere else. And sexual assaults are notoriously underreported, so we have no idea how many have actually occurred.

At the same time, a skeptic might want to know the total number of rides in order to put the number of reports in context. The report does provide this information (see the report for footnotes):

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The report makes additional attempts to put the numbers in context:

All of that work culminates in the Safety Report that we are sharing with you, the public, today. To put US safety challenges in context:

• In 2018, over 36,000 people lost their lives in car crashes in the United States alone (3)

• Approximately 20,000 people were the victims of homicide in 2017(4)

• Nearly 44% of women in the US have been a victim of sexual violence in their lifetime—which means that more than 52 million women live with that experience every day (5)

Every form of transportation is impacted by these issues. For example, the NYPD received 1,125 complaints of sex offenses in the transit system during the same time period covered by this report.(6,7) In the United States alone, more than 45 rides on Uber happen every second. At that scale, we are not immune to society’s most serious safety challenges, including sexual assault. Yet when collecting data for that portion of our report, we found there was no uniform industry standard for counting and categorizing those types of incidents.

The 84-page report is incredibly detailed and includes external reports for credibility and the number of charges for various types of assaults.

Discussion:

• Analyze the report: the audience, communication objectives, organization, writing style, format. What works well, and what could be improved?

• Does the context in these examples convince you that the numbers aren’t so bad? Why or why not?

• Otherwise, how well does Uber address the safety issues? How do you assess the report credibility? What other questions do you have?

Communications Criticized at Syracuse University

A Chronicle of Higher Education article says that communications at Syracuse University “didn’t help” the racial issues. In the past few weeks, videos, slurs, and drawings, such as swastikas, culminated in a rumor that a “white-supremacist manifesto” was sent to students’ phones. The manifesto was said to be a copy of the one associated with the March New Zealand shootings, and Chancellor Kent D. Syverud responded, “It was apparent that this rumor was probably a hoax, but that reality was not communicated clearly and rapidly enough to get ahead of escalating anxiety.”

The response didn’t address student concerns, which have been bubbling for years. Syverud was criticized for his response in 2014 during campus protests about climate. To the recent racist incidents, students are demanding quicker and more direct action. The chancellor’s choice of words is also at issue, as expressed by Mona Lisa Faz, a graduate student of communications:

“Since when did calling someone the n-word or creating a swastika in the snow ever count as bias?” she wrote in an email to The Chronicle. She called Syverud’s response “a whitewashing and playing down of what is really happening. I get you don’t want to alarm people, but I’m a Latina, and when you play down a hate crime, THAT is alarming to me and my community.”

The University is trying to catch up, posting a chart showing students’ demands and actions taken.

Notes image source.
Protest image source.

Discussion:

• Read more about the Syracuse University situation. What were the administration’s major missteps? How can they best recover now?

• What’s your view of the chart? What works well about this approach, and how might it fall short?

• Some are calling for the chancellor to resign. Should he? Why or why not?

• What leadership character dimensions are illustrated by this situation?

Prince Andrew's BBC Interview Does Not Go Well

Prince Andrew took a BBC interview to explain his relationship with Jeffrey Epstein, who had served prison time for having sex with a minor. The Duke of York spent a night at Epstein’s mansion, which some victims called a ”House of Horrors.” The Duke is shown in photographs, along with photos of young women coming into and leaving the house. One woman claims that, when she was 17, she was forced to have sex with Prince Andrew. Since that time, Epstein committed suicide in jail, where he was facing sex trafficking charges.

Prince Andrew told the BBC interviewer, “I kick myself for on a daily basis because it was not something that was becoming of a member of the Royal Family and we try and uphold the highest standards and practices and I let the side down, simple as that."

When asked about his stay at the mansion, Prince Andrew replied, "It was a convenient place to stay. I mean I've gone through this in my mind so many times. At the end of the day, with a benefit of all the hindsight that one can have, it was definitely the wrong thing to do. But at the time I felt it was the honourable and right thing to do and I admit fully that my judgement was probably coloured by my tendency to be too honourable but that's just the way it is."

He also referred to Epstein’s behavior as unbecoming: “Do I regret the fact that he has quite obviously conducted himself in a manner unbecoming? Yes.” When questioned, he said, “I’m sorry. I’m being polite. I mean in the sense that he was a sex offender.”

Responses to the interview have been negative. Since the interview, AON, Cisco, KMPG, and a British charity have removed or are considering removing their brand affiliations with the prince’s name and his work.

Prince Andrew has since tweeted his sympathy and decision to “step back from public duties for the foreseeable future.”

Discussion:

• Describe the arguments for and against Prince Andrew’s decision to take the BBC interview.

• Looking at the BBC interview, do you think he could have handled the situation better? What could he have done differently?

• Analyze the prince’s tweet. What’s your view of that decision and communication? How well is the prince managing the fallout?

• What leadership character dimensions are illustrated by this situation?

Microsoft's Diversity and Inclusion Report

Microsoft’s 2019 Diversity and Inclusion report is the company’s sixth since 2014.

In the introductory letter, we learn about positive changes in demographic data:

In technical roles alone, we have 49% more women, 48% more Hispanic/Latinx, and 67% more African American/Black employees than we did three years ago. And beyond population growth, this year’s snapshot shows diversity representation has risen in every demographic category we track.

The report includes a few dazzling graphics, such as the one shown here.

Discussion:

• Read the entire report. What principles of business communication are followed?

• What suggestions for improvement would you suggest to the report authors?

• What’s your view of the graphic shown here? What is the main point? How else could the data be shown?

• Although the report writers acknowledge that some of the diversity increase in technical roles is attributed to employee growth, what other questions might a skeptic ask?

SoftBank's Vague WeWork Slides

SoftBank already took a financial hit because of its investment in WeWork. Now, the company is facing criticism about its data analysis and presentation.

A deck SoftBank Group (SBG) used to justify its WeWork investment includes several “hypothetical” and vague slides, like this one.

If you’re having trouble reading the footnote, here it is:

This hypothetical illustration is provided solely for illustrative purposes, reflects the current beliefs of SBG as of the date hereof, and is based on a variety of assumptions and estimates about, among others, future operating results, the value of assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions on which this hypothetical illustration is based. There are numerous factors related to the markets in general or the implementation of any specific operational plan that cannot be fully accounted for with respect to the hypothetical illustration herein. Any targets or estimates are therefore subject to a number of important risks, qualifications, limitations, and exceptions that could materially and adversely affect the hypothetical illustration presented herein. Accordingly, actual results may differ materially from the hypothetical illustration presented herein. For the avoidance of doubt, this illustration does not reflect actual results or metrics from the company.

The slide title is also odd: the illustration isn’t hypothetical, but the profitability is.

Discussion:

• How might this chart affect SoftBank’s credibility?

• What other examples in the SoftBank deck are problematic?

• What leadership character dimensions are illustrated by this situation?

Letter from WeWork Employees

As WeWork plans layoffs, employees are asking for input into what happens to them and their peers. Referring to themselves as WeWorkers Coalition, the employees wrote a letter to the management team.

To the We Company Management Team:

WeWork’s company values encourage us to be “entrepreneurial, inspired, authentic, tenacious, grateful and together.” Today, we are embracing these qualities wholeheartedly as we band together to ensure the well-being of our peers.

We come from many departments across the company: building maintenance, cleaning, community, design, product, engineering and more. We believe that in the upcoming weeks we have the unique opportunity to demonstrate our true values to the world. This is a company that has inspired many of us, challenged us, and has been a formative personal and professional experience for those of us who began our careers here. WeWork has been not just a workplace, but a source of friendships and inspiration along the way.

We also believe our product can have a lasting positive impact on the world. We want to improve workplace happiness for millions of office workers and support small and medium sized businesses in their entrepreneurial efforts. We have been proud to support these goals and dedicate our time and talent to achieve them. This has been our story so far.

Recently, however, we have watched as layers are peeled back one-by-one to reveal a different story. This story is one of deception, exclusion and selfishness playing out at the company’s highest levels. This is a story that reads as a negation of all our core values. But this story is not over.

Thousands of us will be laid off in the upcoming weeks. But we want our time here to have meant something. We don’t want to be defined by the scandals, the corruption, and the greed exhibited by the company’s leadership. We want to leave behind a legacy that represents the true character and intentions of WeWork employees.

In the immediate term, we want those being laid off to be provided fair and reasonable separation terms commensurate with their contributions, including severance pay, continuation of company-paid health insurance and compensation for lost equity. We are not the Adam Neumanns of this world — we are a diverse work force with rents to pay, households to support and children to raise. Neumann departed with a $1.7 billion severance package including a yearly $46 million “consulting fee” (higher than the total compensation of all but nine public C.E.O.s in the United States in 2018). We are not asking for this level of graft. We are asking to be treated with humanity and dignity so we can continue living life while searching to make a living elsewhere. In consideration of recent news, we will also need clarity around the contracts our cleaning staff will be required to sign in order to keep their jobs, which are being outsourced to a third party. Those of us who have visas through WeWork need assistance and adequate time to find a new employer to sponsor our respective visas.

In the medium term, employees need a seat at the table so the company can address a broader range of issues. We’ve seen what can happen when leadership makes decisions while employees have no voice. We will need to see more transparency and more accountability.

We also need the thousands who maintain our buildings and directly service members to receive full benefits and fair pay, rather than earning just above minimum wage.

We need allegations of sexual misconduct and harassment to be taken seriously, acted on immediately and resolved with transparency.

We need diversity and inclusion efforts to materialize into real actions, not just talking points at company meetings.

We need salary transparency so we can surface and address systemic inequalities.

We need an end to forced arbitration contracts, which strip employees of their right to pursue fair legal action against the company.

We need all of this, and more.

In the long term, we want the employees who remain at WeWork, and those who join in the future, to inherit something positive we left behind. We want them to never find themselves in this position again, and for that to happen, they need a voice.

With this letter we are introducing ourselves, the WeWorkers Coalition. We are taking full advantage of our legal right to establish this coalition, and in doing so, we hope to give the future employees of WeWork the voice we never had.

We want to work with you. Please join us in writing a better ending to this chapter of the WeWork story.

By this Thursday at 5:00 p.m. EST, we would like to receive confirmation of your receipt of this letter and an indication of your willingness to meet us.

The WeWorkers Coalition

@weworkersco • info@weworkersco.org • #weworkers-coalition

Image source.

Discussion:

• What principles of business writing do the employees follow?

• What persuasive strategies do they use in the letter? Find examples of logical argument, emotional appeal, and credibility.

• What do you consider the strongest and weakest arguments?

• What leadership character dimensions are illustrated in this situation?

CVS Apologizes to Puerto Rican Customer

A Purdue University engineering student showed his Puerto Rican identification card to two CVS employees who said he couldn’t buy cold medicine. The customer service representative and a supervisor at the Indiana store said he needed to show a valid U.S. ID card or visa. Puerto Ricans are U.S. citizens.

José Guzmán Payano told reporters his point of view:

"And then when she asked me for a visa, I was in shock at that time. It wasn't worth talking anymore. It is weird because we're such a broad campus at Purdue. There are people from everywhere. But I can't use my ID from Puerto Rico? Not even my passport? This shouldn't happen here. Period."

Guzmán Payano also explained the situation to his mother, who relayed the story on Facebook, which attracted attention. Although Guzmán Payano filed a complaint with CVS, it took more than a week for the company to respond—after the story appeared in a local newspaper. The company told The NY Times this was an “an isolated incident,” and confirmed, “We absolutely recognize Puerto Rican driver’s licenses to be a valid form of U.S. identification.

A spokesperson for CVS said the company will investigate:

"We are committed to ensuring that every customer receives courteous, outstanding service in our stores, and we apologize to the customer for his recent experience. We are fully investigating this matter to learn more about what occurred."

CVS exterior image source. CVS interior image source.

Discussion:

• In Guzmán Payano’s mother’s Facebook post, she wonders how this could have happened: “Was it his accent? Was it his skin color? Was it the Puerto Rican flag on the license?” What do you think?

• How well has CVS handled the situation to this point? What, if anything, should the company have done differently? What should they do now?

• In an updated post, Guzmán Payano’s mother asks people not to harm CVS employees. This isn’t the first time we have seen violent reactions following social media posts. What’s your view of this?

Boeing CEO Responds to Questions

This week, Boeing CEO Dennis Muilenburg answered lawmakers’ questions about the two Max 737 plane crashes in the past year. Facing families of deceased passengers, Muilenburg began his testimony with an apology:

“I’d like to begin by expressing my deepest sympathies to the families and loved ones of those who were lost in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents, including those who are here in the room today. I wanted to let you know, on behalf of myself and all of the men and women of Boeing, how deeply sorry I am. As we observe today the solemn anniversary of the loss of Lion Air Flight 610, please know that we carry the memory of these accidents, and of your loved ones, with us every day. They will never be forgotten, and these tragedies will continue to drive us to do everything we can to make our airplanes and our industry safer.”

One of the most tense moments was when Senator Ted Cruz questioned Muilenburg (see video). Muilenburg also faced criticism as he was leaving. The mother of a victim of the second crash responded to his invoking his Iowa farm background:

“Go back to Iowa. Do that.” She also said, “I don't feel like you understand. It's come to the point where you're not the person anymore to solve the situation."

Discussion:

• Watch more of Muilenburg’s testimony. What are some examples of questions he addressed well, and how could he have done better?

• How well does Muilenburg balance emotional appeals, logical arguments, and credibility in his testimony?

• What leadership character dimensions are illustrated by this situation and by Muilenburg’s testimony?

• Muilenburg’s interaction with the mother is a difficult situation for anyone to handle, and we can certainly understand her grief and anger. How would you have responded?

  CNN reports:

  “In response, Muilenburg said he respects her viewpoint. "But I want to tell you the way I was brought up. And I'm just being honest here about it. I learned from my father in Iowa ... when things happen on your watch you have to own them and you have to take responsibility for fixing them," he said.

Plain Language from Financial Advisers

A Wall Street Journal writer asks financial advisers to speak to us in plain English. A new Securities and Exchange Commission rule—described in 564 pages—calls for simpler writing. But the author wants advisers to go further, for example, to use more visuals and categories: “color-coded from red to green, for instance, or arrayed on a scale from 1 to 10.”

Fortunately, the rule includes a summary, although students of business communication will find problems:

The Securities and Exchange Commission (the “Commission” or the “SEC”) is adopting new rules and forms as well as amendments to its rules and forms, under both the Investment Advisers Act of 1940 (“Advisers Act”) and the Securities Exchange Act of 1934 (“Exchange Act”) to require registered investment advisers and registered broker-dealers (together, “firms”) to provide a brief relationship summary to retail investors. The relationship summary is intended to inform retail investors about: the types of client and customer relationships and services the firm offers; the fees, costs, conflicts of interest, and required standard of conduct associated with those relationships and services; whether the firm and its financial professionals currently have reportable legal or disciplinary history; and how to obtain additional information about the firm. The relationship summary will also reference Investor.gov/CRS, a page on the Commission’s investor education website, Investor.gov, which offers educational information to investors about investment advisers, broker-dealers, and individual financial professionals and other materials. Retail investors will receive a relationship summary at the beginning of a relationship with a firm, communications of updated information following a material change to the relationship summary, and an updated relationship summary 2 upon certain events. The relationship summary is subject to Commission filing and recordkeeping requirements.

Plain language in government documents started as an initiative in the 1990s, and the group highlights before-and-after examples.

Discussion:

• How could you rewrite the summary, above, for easier reading?

• Review the Plain Language website. What are your impressions of the group’s work?

Business Leaders Sign Letter to Top Officials

Fifty CEOs and business school leaders signed a letter to President Trump and other top-ranking politicians urging action to allow for more international applications. The letter comes after a report by the Graduate Management Admissions Council showing declining applications.

Report conclusions follow:

[A]llowing top talent to study and work in the country of their choice helps create jobs, not take them. It offers insight into changing trends for historically talent-attracting and talent-supplying countries. Business school applications are a powerful metric—and forecast—of the success of individual economies in prioritizing talent and therefore leading innovation and growth. A survey of these latest metrics shows change in our midst—and for certain economies, warning signs for the future.

In their letter, the business leaders write that the U.S. is “needlessly capping our growth and can do better.” They urge U.S. politicians to allow more movement by taking the following action:

• Removing “per-country” visa caps, modernizing our visa processing system, and reforming the H-1B visa program to make it possible for the most talented people to have a reasonable chance of gaining entry to the United States.

• Creating a “heartland” visa that encourages immigration to the regions of the United States that could most use the vitality of these talented individuals.

Discussion:

• Analyze the letter. Who are the primary and secondary audiences? What are the communication objectives? How do you assess the organization and writing style?

• What persuasive communication strategies do the writers use? Which are most and least effective?

• Analyze the report using the same questions.

• How well does the infographic summarize the report conclusions? What could be improved?

Reciprocity in the News

Students of persuasion likely learned about reciprocity. In my class, we discuss reciprocity as a logical reasoning type and as one of Cialdini’s six principles of persuasion. We also talk about quid pro quo, meaning “this for that,” as a type of sexual harassment.

Steven Pinker, a cognitive scientist at Harvard, wrote an opinion piece in the New York Times titled, “A Linguist’s Guide to Quid Pro Quo,” referring to the discussions between President Trump and Ukrainian President Volodymyr Zelensky.

President Trump and his supporters have gone to the heart of the issue, denying any quid pro quo. Senator Lindsey Graham of South Carolina tweeted, “What a nothing (non-quid pro quo) burger.” Defenders also say that this type of reciprocity is common for political leaders.

Pinker believes that an explicit “if,” “then” construction isn’t necessary for a quid pro quo agreement:

It’s true that the transcript of the reconstructed conversation does not reveal a smoking sentence with an “if” and a “then.” But to most readers, Mr. Trump’s claim that he was merely musing about his druthers does not pass the giggle test. That is because people in a social relationship rarely hammer out a deal in so many words but veil their offers in politeness and innuendo, counting on their hearers to listen between the lines.

More typically, we see politeness in reciprocal transactions. During the call, President Trump said, “I would like you to do us a favor though.”

This article also raises issues about a “transcript,” which he describes as a reconstructed conversation. The summary isn’t verbatim, and it’s unclear whether a recording exist.

Discussion:

• Describe reciprocity as a method of influence. What is the value to business relationships, and what dangers should be avoided?

• Talk about a time when you practiced reciprocity, but it felt imbalanced—either for you or for the other person? How did it feel? How can avoid this in the future?

• In this case, do you think President Trump crossed a line, or do you believe his statement, “There was no quid pro quo”?

LeBron James Enters the Tweet Debate

As the NBA struggles to recover after Houston Rockets General Manager Daryl Morey tweeted in support of Hong Kong protesters, LeBron James questioned Morey’s choice:

“Yes, we all do have freedom of speech. But, at times, there are ramifications for the negative that can happen when you’re not thinking about others, when you’re only thinking about yourself. . . . I believe he wasn’t educated on the situation at hand, and he spoke. And so many people could have been harmed, not only financially, but physically, emotionally, spiritually. So just be careful. . . .”

The Wall Street Journal reports that people were “stunned” by his comment because James is typically careful about his public comments.

Discussion:

• What’s your view of James’ commenting on the situation? Should he have avoided commenting? Why or why not?

• What’s your view of his comments? How well did he handle the situation?

• What leadership character dimensions are illustrated by James’ comments?

NBA Tweetstorm

The NBA is thrust into a political quagmire after Houston Rockets general manager Daryl Morey tweeted in support of the Hong Kong protesters: '“Fight for Freedom. Stand with Hong Kong.” The tweet has since been deleted.

NBA Commissioner Adam Silver is dancing a line between protecting Morey’s free speech and staving off China’s backlash. Critics say the league is driven by profit instead of principle. He has tried to clarify his position:

“It is inevitable that people around the world — including from America and China — will have different viewpoints over different issues. It is not the role of the NBA to adjudicate those differences. However, the NBA will not put itself in a position of regulating what players, employees and team owners say or will not say on these issues. We simply could not operate that way.”

At this point, The Wall Street Journal reports better news:

“The situation appears to have de-escalated. After a week of blistering anti-NBA rhetoric in Chinese media, the government is signaling that it’s time to cool it, a message that includes the vitriol directed at the Rockets, according to one person familiar with the situation.”

But the Journal also acknowledges: “China’s love affair with the Rockets might not be the same again.”

Discussion:

• Should Morey have avoided sending the tweet? Why or why not?

• How do you assess the league’s response to the situation?

• Analyze Silver’s news conference. What did he do well, and what could he have done differently?

Layoffs Planned at WeWork

After a failed IPO and questions about its leadership and financials, WeWork is planning to downsize. New co-CEOs Artie Minson and Sebastian Gunningham warned employees to expect layoffs but said they will be handled “humanely.”

The new leadership had already prepared employees: "While we anticipate difficult decisions ahead, each decision will be made with rigorous analysis, always bearing in mind the company's long-term interest and health." The new information gives employees a better sense of what will come.

But news stories aren’t consistent. Fortune reports 2,000 layoffs or about 16% of WeWork employees affected, while Dice reports 5,000. Dice acknowledges differences in reporting.

Affected employees could be in business segments that will be spun off, so they may still have a job. WeWork may try to sell Meetup, Managed by Q, and Conductor brands.

Discussion:

• Assess WeWork’s communications to employees so far. Even if the percentage were clear, the number of layoffs may change. Are the new leaders doing the right thing in giving an estimate now?

• Employees know layoffs are coming “soon.” Should they have more specific dates? Consider whether this is a good idea.

https://fortune.com/2019/09/25/wework-new-ceos-memo-employees/

WeWork: "Humbler"

Several articles in the past few weeks have scolded WeWork CEO Adam Neumann and the investors who followed his story.

The Wall Street Journal was the first to describe Neumann’s odd behavior and published another article, “WeWork Investors Turned Off by ‘Sloppy’ IPO Filings.” The recent article explains one problem in the filings (shown below):

“A section headed ‘illustrative annual economics’ that assumed 100% workstation utilization vanished, for example, as did two graphs portraying a typical location going from ‘-$’ to ‘+$,’ with no y-axis showing the actual dollar amounts being depicted.”

A New York Times article, “Was WeWork Ever Going to Work?” criticizes investors for missing obvious problems with the company’s initial business plan, such as the reliance on start-up revenue when most entrepreneurial ventures fail. According to this report, it took people finally looking at the data to realize how much We is losing and how hard it will be for the company to succeed.

The article includes other examples of investors’ blind exuberance:

“It is not merely money that separates the ruling class from the rest of the country. Often it seems as if it is the gaping difference in the application of common sense. Ultimately, it was the bankers, technocrats, statesmen and acolytes of the data-junkie class who were willing to believe that Elizabeth Holmes, a 19-year-old college dropout who thought a black turtleneck would make her Steve Jobs, was going to revolutionize blood-testing. It didn’t seem to matter that she could not deliver any real evidence to prove it.”

An Inc. article, “The Future of WeWork: Leaner, Humbler, and Duller,” suggests a new path for We. The author suggests less hype, fewer employees, and more discipline for the company to survive.

WeWork image source.

Discussion:

• Who do you blame for WeWork’s failed IPO?

• If you believe the New York Times article, investors are gullible. Do you agree with this assessment? If so, why might this be the case?

• Read the “Note”—the fine print—under the table, shown above. How do you interpret this information?

• What should We do now to build credibility and save the business?

East Carolina University Leader Placed on Leave

East Carolina University’s interim chancellor is being investigated for inappropriate behavior with students. One video shows Dan Gerlach chugging beer and dancing with students, and photos show him with his arm around a student at a local hangout in Greenville, NC.

Gerlach wrote a statement in his defense:

When I first started here, and even before, one constant concern that I heard was that our students needed a leader of the university to be present and approachable, someone who can speak to them in their language. That’s what I’ve set out to do at ECU. I regret that these photos are being perceived as anything more than what they are.

A member of the board of trustees said, “This is very concerning without question.” However, the bar owner defended the chancellor in a tweet:

I wasn’t there, but two of the staff told me that several people were kind of excited to see the chancellor out and in the bar…It really is a damn shame. The guy came in with some off duty cops to have some beer. Just wrong place, wrong time.

Discussion:

• How do you assess Gerlach’s response? Explain his perspective of the situation.

• Analyze the bar owner’s tweet. How much credibility does he have in this situation?

• What do you think of university administrators socializing with students in this way? Do you have a different perspective of faculty? Why or why not?
  
  

WeWork Co-Founder and CEO Steps Down

WeWork announced that Adam Neumann will leave his position after controversy about the company’s financial situation and the co-founder and CEO’s behavior. Within a week, the company went from preparing for an IPO to facing criticism that led to this ouster and a delayed public offering.

The company valuation has been reduced from about $47 to $15 billion based on governance issues and what the Wall Street Journal calls “ballooning losses.” The Journal also reported on Neumann’s “eccentric behavior,” including a heavy-party lifestyle that recently involved bring marijuana on a plane to Israel and saying that he might like to be the prime minister.

In its news release, WeWork provided scant information and a few quotations, including this from Neumann:

“As co-founder of WeWork, I am so proud of this team and the incredible company that we have built over the last decade. Our global platform now spans 111 cities in 29 countries, serving more than 527,000 members each day. While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive. Thank you to my colleagues, our members, our landlord partners, and our investors for continuing to believe in this great business.”

Neumann image source.

WeWork office image source.

Discussion:

• Compare the company’s news release to others announcing CEO departures. How does this one differ, and why would the company take this approach?

• What are the communication objectives of Neumann’s statement? How well does his quote meet those objectives? What else, if anything, should Neumann say or do?

Amazon Response to Employee Walkout

Like many around the world during the Global Climate Strike, hundreds of Amazon employees walked out of their offices yesterday. Employees have been urging Amazon leaders to take more steps to reduce fossil fuel dependency and wrote an open letter back in April. The pressure seems to be working.

On Thursday, CEO Jeff Bezos announced The Climate Pledge, with the following commitments:

• Commits to net zero carbon by 2040 and 100% renewable energy by 2030

• Orders 100,000 fully electric delivery vehicles, the largest order ever for electric delivery vehicles

• Invests $100 million in reforestation projects around the world to begin removing carbon from the atmosphere now

• Launches new sustainability website to report progress on commitments

The Pledge encourages other businesses to sign on, with Amazon leading the way. Bezos said, “We’re done being in the middle of the herd on this issue — we’ve decided to use our size and scale to make a difference.” Amazon employees reacted positively.

Discussion:

• Analyze the employees’ open letter. What persuasive strategies do they use? Look for examples of logical argument, emotional appeal, and credibility. What organizational strategies do the writers use?

• The Amazon announcement doesn’t mention employees’ influence in the decision, although news articles and employees make the connection. Should Bezos include this recognition? Why or why not?

• Describe a CEO’s dilemma in situations like these. When is it appropriate for leaders to meet their employees’ demands, and when should they resist? Did Bezos take the best course of action?

Online Reviews Written by Attractive People Carry More Weight

A study published in Consumer Marketing found that reviews written by more attractive rather than less attractive reviewers lead to “enhanced brand evaluation.” The Cornell and Penn State researchers swapped out photos of reviewers to test the impact of bias.

Marie Ozanne, assistant professor of food and beverage management in the School of Hotel Administration, explains the result:

“More often than we think, we are replicating our offline behavior online, and we don’t know the impact of all our general offline thinking on our online thinking. Hopefully, understanding it can help us be more conscious about it and find ways to focus more on the information that matters.”

Negative reviews didn’t see the same effect, which Ozanne believes illustrates how people think about products or services. When reading negative reviews, people may think more deeply about the product or service, and then the reviewer’s image becomes less important.

Image source. (Confession: I added a period after the first sentence.)

Discussion:

• To what extent do you rely on online reviews?

• How do you think appearance might influence your judgment—of online reviews or in other situations?

• How can you ward against the effect of appearance bias?

Google Reassures Employees They Can Speak Out

The National Labor Relations Board has ordered Google to allow dissent among its workforce. Although you might think of Google as a place of open ideas, some employees feel stifled.

The first public incident was the infamous “Google Memo,” which argued conservative ideas about women. The employee was terminated—a decision some thought essential for the company, and others thought unfair.

More recently, employees have complained that management puts restrictions on what they can say, including how they express attitudes about the company on social media. But employees in the U.S. are allowed to engage in potential union organizing activity, which includes discussing pay and issues with management.

The Wall Street Journal explains the agreement between NLRB and Google, which does not include a statement of responsibility:

“The settlement orders Google to inform current employees that they are free to speak to the media—without having to ask Google higher-ups for permission—on topics such as workplace diversity and compensation, regardless of whether Google views such topics as inappropriate for the workplace.”

Image source.

Discussion:

• What is the value of allowing debate in the workplace? What are the drawbacks?

• How can managers draw the line between employees’ right to dissent and what’s right for the company?

• Have you expressed political opinions at work? When and how were they received? Have you ever felt uncomfortable during others’ discussions? What did you do?