The Visual Pull of Tech Stocks

Line charts show how the “Magnificent Seven” tech stocks—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—affect the S&P 500. Students can analyze the potential audience and objective of each of these visual displays, find others, or create their own. Hover over for comments about each, and click on the slide for the original source. The data represents different timeframes, so the charts aren’t quite comparable.

This simple line chart compares returns of the total S&P 500 to that of the seven and the other 493 stocks. Note the typo in the first date on the X axis.

Dating back to October 2022, this line chart shows the downward pull of the seven in addition to the recent upswing. We can almost feel the effect both ways—the drag and the lift.

With this detail, we see the contribution of each stock. This would work better without the separate legend.

This tree map shows the market value of each stock, which explains why a rise in, for example, Microsoft, more significantly affects the S&P.

The donut is more graphical but conveys less than the tree map does.

This infographic/bubble chart has visual appeal (but weird color combinations) -- and does convey more information (including both market cap and return) than the others do.

This one is pretty but conveys little.

Students also might be interested in evaluating whether Tesla should remain part of the Magnificent Seven. Some believe it’s lackluster performance makes it unworthy of the designation.

China Changes Youth Unemployment Measure

After a five-month lapse, China reported youth unemployment data, which looks better because of new metrics. The change raises questions about data integrity and reporting.

According to China’s National Bureau of Statistics, the unemployment rate of people between 16 and 24 years old dropped from a high of 23.1 in June to 14.9 in December. But the rate doesn’t mean more young people are employed. The Bureau now excludes students enrolled in school, even if they’re seeking part-time employment. Reports also will now separate people between 25 and 29 from those between 25 and 59. A record number of college graduates are having a particularly difficult time finding jobs, partly because of restrictions on tech, real estate development, and education fields and because of a slow recovery from the pandemic, which Chinese officials seem reluctant to admit.

The youth data change might not have been as alarming if China hadn’t stopped reported data after that record high in June.

Students might discuss the significance of these changes and compare how China reports jobless data to U.S. methodology (see U.S. Bureau of Labor Statistics). This situation is a good project for students to dig into the data and also analyze, for example, differences between urban and overall rates.

Students also can find or create charts to visualize the change over time. They’ll likely find mostly line charts like the one at right that shows the urban rate over the past two years. As many do, this chart has a truncated Y axis, exaggerating the differences (and yet, one percentage point is a lot of people out of work).

Jelly Roll Speaks Out and Demonstrates Character

Not often do we see a rapper turned country music artist in front of congress. Students might be interested in discussing Jelly Roll’s character and analyzing his persuasive statement.

With a history of addiction, selling drugs, and jail time, Jelly Roll is open about his past. His hit “Save Me” (and others), his inspiring speech when he won the Country Music Award for New Artist of the Year, and his tearful video when he learned he received two Emmy nominations demonstrate his vulnerability and gratitude for his new life. We learn more about Jelly Roll during a CBS Sunday Morning interview, when he talks about being in therapy and says, “I think it’s cool to think about vulnerability that way—that we can all grow together, and that it’s OK to not have it figured out. . . .” Correspondent Kelefa Sanneh also noted his authenticity, among other character dimensions: “Songs like ‘Song of a Sinner’ and ‘Need a Favor’ make fans feel as if they really know him and believe in him.”

In his testimony to encourage lawmakers to pass a bill to sanction drug traffickers, Jelly Roll uses several persuasion strategies we teach in business communication classes. With a tattooed face, Jelly Roll started with a joke about having a microphone for performing. Then he captures attention with data about the number of people who will die from drug overdose during his five-minute testimony. He uses other logical appeals, including this poignant analogy about the average number of people who die every day in the United States of fentanyl overdose:

Could you imagine the national media attention it would get if they were reporting that a plane was crashing every single day and killing 190 people?

Students may have a lot to say about the speech, which demonstrates credibility, logical argument, and emotion appeal. In some respects, he risks little. He is vulnerable, speaking of his wife’s addiction and a past he might prefer to forget, but his advocacy is unlikely to affect his career negatively: he’s getting positive publicity and his role might endear people toward him. Still, he demonstrates integrity by being consistent in his music and in his life. He is making “living amends,” as people do in Twelve Step programs: taking positive steps when apologies aren’t possible or enough.

Image source.

Disclosing an Illness

Defense Secretary Lloyd J. Austin III delayed telling the White House about his prostate cancer, which raises questions about whether or when a corporate executive should disclose an illness.

At a news conference on January 9, Pentagon Press Secretary Gen. Patrick Ryder apologized for failing to notify proper channels when Austin was hospitalized:

I recognized that I should have tried to learn more and to press for an earlier public acknowledgement. So I want to offer my apologies and my pledge to learn from this experience. And I will do everything I can to meet the standard that you expect from us.

He also said, “Secretary Austin has taken responsibility for the issues with transparency.”

Leaders might naturally avoid disclosing an illness. A palliative care doctor said, “It’s very human to not want to have yourself sort of flayed open for the world to see.” He’s describing vulnerability, or emotional exposure. Others say it’s a coping mechanism, trying to control the uncontrollable. Compartmentalization—to a point—is a useful way to deal with a diagnosis. But experts warn that being too secretive can lead to isolation and may not get people the help they need.

Austin’s situation reminds me of others who have disclosed illnesses for good reasons. Alex Trebek, long-time Jeopardy! host announced is illness on air. He described his rationale for the message about his stage 4 pancreatic cancer diagnosis: to be “open and transparent” and to avoid “overblown or inaccurate reports.” His diagnosis has a particularly low survival rate, so the decision might have been easier for him, as he accepted his likely death. For different reasons, Senator John Fetterman revealed his mental health struggles, which was lauded as courageous and a way to normalize depression.

For corporate CEOs, the decision to disclose health issues is complicated because of the potential impact on customer, employee, or investor confidence. Famously, Steve Jobs downplayed and delayed disclosing his pancreatic cancer and other health issues, which was highly criticized for its impact on, for example, investor decision making, and was a troubling situation for some board members.

According to this Harvard Law article, “Best Practices for Disclosing Executive Health Issues,” the obligation for public disclosure is limited:

If a senior executive is incapacitated and therefore unable to perform his or her duties, disclosure is required (particularly if the executive performs certain roles [9] or is otherwise reasonably believed to be critical to the success of the company).

In addition to reviewing the risks and approaches, including a communication plan, the article authors provide examples of companies that gave full disclosures, mixed disclosures, and “The Silent Treatment.” They conclude: “Most risk arises from partial disclosures or “half-truths”—which should be avoided. Sometimes silence with respect to executive health is the best policy.” Maybe, but I’ll also quote a university communication executive: “The trust will come out.”

Corporate executives have difficult choices in these situations. In this case, Austin didn’t really have a decision to make: he should have followed protocol and did not.

Image source.

Costco Accepts the Union with Humility

In a great display of humility, Costco management wrote to employees about the new union—a good, positive message to share with students. The CEO and president co-signed the letter to acknowledge the union and reinforce their values, which, they admit, may not have been upheld:

[W]e’re disappointed in ourselves as managers and leaders. The fact that the majority of Norfolk employees felt that they wanted or needed a union constitutes a failure on our part.

The Costco leaders made a good choice if for no other reason that the vote is done, so they might as well accept it. Also, they’re right about the reason for all union activity: employees aren’t getting what they want or need from management and seek outside help.

But few leaders admit this. Starbucks and Amazon, in particular, fought union activity to the extent that the National Labor Relations Board accused Starbucks of interfering with employees’ rights and Amazon of not bargaining in good faith.

Microsoft hasn’t been entirely antagonistic against union activity. After acquiring Activision Blizzard last year, it entered into a neutrality agreement with the Communications Workers of America. This meant that employees were free to choose a union without management’s interference (although that is the law). Employees did vote for the union, Microsoft’s first in the United States, and a spokesperson commented:

In light of the results of the recent unionization vote, we recognize the Communications Workers of America (CWA) as the bargaining representative for the Quality Assurance employees at ZeniMax. We look forward to engaging in good-faith negotiations as we work towards a collective bargaining agreement.

A tech writer made a good point about who defines “good faith.” In response to a similar (but more defensive) Apple statement about its union, he wrote:

To some extent, it could be said that Apple now has a spotlight on its actions at the negotiations—whether it meets the union on the union’s definition of good faith negotiations, or whether it continues to stand on its own record of positive remuneration in spite of the union’s negotiating position.

We’ll see more company responses as union activity gains speed for the first time in decades, particularly in tech and retail industries.

Boeing Crisis Comms Need Work

Once again, Boeing is in crisis communication mode trying to explain plane failures. Messaging could sound more authentic and compassionate.

After part of the fuselage fell off an Alaska Airlines Boeing 737 Max 9 plane, United found loose bolts needing “additional tightening” on the same model. In a flashback to the horrible deaths caused by MAX planes five years ago, the FAA grounded 171 of the planes.

On its website, Boeing lists daily “Updates,” but none of them acknowledge the fear (and of course, the inconvenience) to passengers. The audience for these messages is the public, and communications to passengers seem to be missing. One update restates what CEO Dave Calhoun said in a company-wide meeting to employees:

When it comes to the safety of our products and services, every decision and every action matters. And when serious accidents like this occur, it is critical for us to work transparently with our customers and regulators to understand and address the causes of the event, and to ensure they don’t happen again. This is and must be the focus of our team right now. I am deeply grateful to our colleagues who have been working tirelessly on our company’s response over the past two days.

We will spend time together Tuesday talking about our company’s response to this accident, and reinforcing our focus on and our commitment to safety, quality, integrity and transparency. While we’ve made progress in strengthening our safety management and quality control systems and processes in the last few years, situations like this are a reminder that we must remain focused on continuing to improve every day.

On January 9, a video of Calhoun talking with employees was posted on the site. In this message, he found some emotion, referring to the shocking pictures, which reminded him that he’s a parent and grandparent. His delivery style is natural, but much of the message sounded canned. Imagine if he said “honesty,” instead of “transparency,” which he announced like a section heading:

[Honesty.] Let me talk a little bit about what I did today and what I’ll keep doing with members of our team who are with us today. We’re going to approach this, number one, acknowledging our mistake. We are going to approach it with 100% in complete [honesty] every step of the way.”

Transparency seems best achieved through actions rather than promises—like safety.

Unfortunately for Boeing, other media sources aren’t reflecting well on the company. Several passenger TikTok videos show the missing part of the plane. (Passengers are uncharacteristically calm, perhaps because this is one of those situations when they have absolutely no control and no choice but to surrender.) A former employee whistleblower told CNBC, “It really wasn’t a surprise, sadly.”

In a CNBC interview, Corporate Communication Professor Paul Argenti criticized Boeing’s “focus on profits rather than safety, and you need to do both.” He encouraged a greater sense of urgency in [CEO Dave] Calhoun’s response: “I don’t see him saying the kinds of things that would give me confidence in the organization.” Argenti said that we need to know what went wrong and what the company will do to fix it, and “They need somebody new. . . a hero to come in and save this company.” The former CEO also struggled with communication.

Air Alaska showed a bit more compassion towards customers on the flight, but it’s at the end of the statement:

A statement from Alaska Airlines CEO, Ben Minicucci:

At Alaska Airlines, safety is our foundational value and the most important thing we focus on every day. Following tonight’s event on Flight 1282, we have decided to take the precautionary step of temporarily grounding our fleet of 65 Boeing 737-9 aircraft. Each aircraft will be returned to service only after completion of full maintenance and safety inspections. We anticipate all inspections will be completed in the next few days.

I am personally committed to doing everything we can to conduct this review in a timely and transparent way.

We are working with Boeing and regulators to understand what occurred tonight, and will share updates as more information is available. The NTSB is investigating this event and we will fully support their investigation.  

My heart goes out to those who were on this flight – I am so sorry for what you experienced. I am so grateful for the response of our pilots and flight attendants. We have teams on the ground in Portland assisting passengers and are working to support guests who are traveling in the days ahead.

-Ben

FAFSA and Other Form Problems

A parent describes his experience completing the “simplified” Free Application for Federal Student Aid (FAFSA), which was supposed to be easier than the old college financial aid form but still illustrates business communication problems.

The parent received only intermittent access a couple of months after the form was planned to be available. He complimented the clean design, friendly user interface, and fewer questions than on past forms. The biggest issues seems to be that the promised “soft launch” was half-baked—too late, not consistently available, and buggy. He suggested waiting until next year, when it could be fully available in the summer to give families more time.

The Federal Student Aid department’s launch announcement warns people not to “fill out the form immediately when the soft launch period opens” and includes a long list of potential problems. So the reporter might have headed the advice.

Form changes are guided by the FAFSA Simplification Act, which the U.S. Department of Education explains in a message to an unclear audience. The process introduces a new acronym (SAI), and the message is repetitive and includes information that possibly no audience would find useful, for example,

This data exchange has been made possible by the Fostering Undergraduate Talent by Unlocking Resources for Education Act (FUTURE Act), which we’ll implement alongside FAFSA simplification starting with the 2024–25 award year.

Students might rewrite this message to an audience of students and their parents, explaining just a little of the rationale for the changes but focusing primarily on the benefits and what to expect. To the department’s credit, a virtual assistant is offered with links to other pages. Students also could analyze communications on this page, whose audience is more clearly parents and students. But I find the video slow and devoid of information.

How to Spot a Fake Review

Fake online reviews are unfair to competitors and can cause bad purchase decisions. Students benefit from knowing how to spot these reviews, and the topic raises bigger questions about integrity.

People depend on online reviews for purchase decisions, but 30-40% of reviews are considered unreliable. A CNBC article suggests ways to avoid being duped:

• Beware of five-star reviews, particularly without text or right after a negative review appears.

• Check reviewers who have locked profiles, post only one time, use a stock photo, or post about businesses in multiple countries.

• Don’t be fooled by detailed reviews with photos, which can still be fake.

Other sources suggest evaluating the writing:

• Repeated mentions of the product or brand name

• Language you would see in an ad or press release

• Unnatural language (for example, “robust wireless data transmission”)

But some of these strategies require digging and might not be practical for someone perusing Airbnb or looking for a mop. Some research found that language models do a better job than humans in detecting fake reviews, so that might be the best defense.

One tool, Fakespot, a browser add-on, promises to flag fake reviews on Amazon and other sites using AI technology. The Hopeless Geek analyzes tech products and gave Fakespot a mixed review. His point is that the program analyzes reviews, not products. For example, Samsung was flagged as possibly being "deceptive,” but Geek argues the conclusion is based on how the reviews are written. Amazon also protested Fakespot and convinced Apple to remove the app, which it claimed was wrong about products 80% of the time.

Fakespot warns us about the integrity of fake reviews while developing its own credibility as an app. The website uses several strategies that students would recognize to demonstrate ethos; for example, we see “trust” and “truth” several times, reputable company logos (those the app covers and news articles about the app), and testimonials. The site also uses social proof (“millions of consumers like you”) to convince us to install the add-on.

Spotting fake reviews is complicated. If ChatGPT writes a review for someone feeding it the information, is it fake? In a letter, US Public Interest Resource Group (PIRG) encourages the U.S. Federal Trade Commission (FTC) to do more to investigate and monitor websites. Complicated problems require multiple solutions—beyond what individual users can do.

Hasan Minhaj Defends Embellishing Stand-Up Comedy

The comedian Hasan Minhaj isn’t cowering after a New Yorker reporter fact checked and criticized his Netflix series Patriot Act and other performances. His response is an unusual approach for crisis communication. Students might discuss issues of integrity and analyze evidence in this situation.

In her article, “Hasan Minhaj’s ‘Emotional Truths’,” Clare Malone wrote,

[A]fter many weeks of trying, I had been unable to confirm some of the stories that he had told onstage. . . . Still, he said that he stood by his work. “Every story in my style is built around a seed of truth,” he said. “My comedy Arnold Palmer is seventy per cent emotional truth—this happened—and then thirty per cent hyperbole, exaggeration, fiction.”

In part, Malone’s focus was on the consequences of Minhaj’s fabrications (he might say “embellishments”). When comparing his stories to George Santos’s, Minhaj says Santos’s are "pointless,” whereas his have societal value, which gives him moral standing. Students can discuss how much is too much “stretching the truth.” How might standards of integrity differ for comedians, politicians, organizational leaders, entrepreneurs, job applicants, etc.?

People make difficult decisions about whether and how to respond to criticism. Minhaj fought back. A New York Times writer summarizes Minhaj’s response well:

Typical crisis management dictates you should move on, not fixate. But in our attention economy, where the most popular Netflix specials of the past year featured Chris Rock talking about the Slap and John Mulaney joking about going to rehab, comedians are wise to consider Rahm Emanuel’s famous political advice: Never let a good crisis go to waste. Minhaj split the difference. He did not linger on the story but dedicated a solid chunk of jokes to it that got one of the biggest responses of the night. There were moments when I even thought this scandal might be the best thing that ever happened to him.

During a recent Beacon Theater show, Minhaj quipped to the audience, “Don’t fact check me.” He said of the New Yorker report, “I got caught embellishing for dramatic effect,” and said it was too bad it was such “a dorky scandal” and not one involving, for example, child abuse.

In a 21-minute video watched, so far, 1.9 million times, Minhaj addressed criticism head-on, showing headlines and a Bill Maher clip. He apologized to those hurt by his routines and addressed three stories in detail. He distinguished between what really happened and how he changed details to create a funny/poignant story. Supporting his points, Minhaj played audio from the interview with the New Yorker reporter. As he acknowledges during the video, his explanations are a bit much (saying at one point, “If you’re still here,” and, I admit, I dropped off soon after). But he does provide good evidence of the reporter ignoring or missing information. (For a deep dive of disputed facts, read this Slate analysis.) Naturally, Malone posted a short statement on X, defending her reporting.

To his credit, Minhaj has enough perspective to conclude with a main point (direct organization plan—up front!): he didn’t “fake racism.” Students can draw their own conclusions and whether they are convinced by Minhaj’s presentation of the evidence.

This situation gives students a different perspective on crisis communications. Minhaj highlighted rather than downplayed criticism, which may have avoided his getting “cancelled” and might even elevate his reputation.

BP Focuses on Misleading Statements, Not Relationships

BP is unusually blunt in publicizing the results of an investigation against the former CEO. But the focus is on misleading, not inappropriate relationships.

I analyzed a previous statement about this situation in which the Board used softer, ambivalent language:

Mr Looney has today informed the Company that he now accepts that he was not fully transparent in his previous disclosures.  He did not provide details of all relationships and accepts he was obligated to make more complete disclosure.

This recent statement holds little back:

Following careful consideration, the board* has concluded that, in providing inaccurate and incomplete assurances in July 2022, Mr Looney knowingly misled the board. The board has determined that this amounts to serious misconduct, and as such Mr Looney has been dismissed without notice effective on 13 December 2023. This decision had the effect of bringing Mr Looney’s 12 month notice period to an immediate end. [The asterisk refers to a note about the interim CEO.]

In detail, the board describes compensation decisions, which amount to the CEO forfeiting about $41 million. Some compensation from 2022 also will be clawed back.

I am curious about the board’s reasoning. “This amounts to serious misconduct” refers to his misleading the board, not the relationships. Are these not also considered misconduct? Or are they just harder to prove—or to talk about?

I also note that the board avoids saying Looney “lied,” which means making a false statement. Wasn’t that the case? “Providing inaccurate and incomplete assurances” sounds like lying to me—maybe not the “incomplete” ones but the “inaccurate” statements. “Mislead” sounds more professional, subtler, which makes the news release blunt, but not that blunt.

Missing Communications Prep in University Testimony

If students need an example of the value of crisis communication, the university presidents’ testimony this past week proves the point. An embarrassment to all three colleges, Harvard, University of Pennsylvania, and MIT, the public hearing ended with apologies from two of the leaders and the resignation of Penn’s.

A New York Times article describes how a law firm prepared both the Harvard and Penn presidents. As business communication faculty know, legal advice protects the organization from litigation. But crisis communication advice protects the organization’s, and the leader’s, reputation.

To a PR expert, the lack of proper preparation, including practicing answering a range of difficult questions, is clear. NY Representative Elise Stefanik asked the most pointed question: “Does calling for the genocide of Jews violate Harvard’s rules of bullying and harassment? Yes or No?“ Presidents focused on speech vs. conduct and said it “depended on the context.” Harvard President Claudine Gay gave vague answers about Harvard’s “commitment to free expression” and “rights to privacy.” Stefanik and other lawmakers accused Gay of not speaking with “moral clarity.”

To me, the character dimension most at issue is integrity—the universities’ commitment to DEI and free speech, yet what some see as an inconsistent application. All three presidents issued statements after the hearings:

• Harvard: President Gay issued a short statement, contradicting her response to Stefanik’s question: "There are some who have confused a right to free expression with the idea that Harvard will condone calls for violence against Jewish students. Let me be clear: Calls for violence or genocide against the Jewish community, or any religious or ethnic group are vile, they have no place at Harvard, and those who threaten our Jewish students will be held to account.” In an interview with the Harvard Crimson, she apologized and demonstrated compassion, “I am sorry,” “Words matter,” and “When words amplify distress and pain, I don’t know how you could feel anything but regret.”

• MIT: In a statement, President Kornbluth linked to her opening statement and wrote generally about community and fighting against hate. She didn’t directly address the hearings or her responses to questions.

• Penn: Demonstrating humility in a video message, President Magill admitted that she should have responded differently: “In that moment, I was focused on our University’s longstanding policies aligned with the U.S. Constitution, which say that speech alone is not punishable. I was not focused on, but I should have been, the irrefutable fact that a call for genocide of Jewish people is a call for some of the most terrible violence human beings can perpetrate. It's evil—plain and simple.”

Magill has since resigned from Penn along with the Board chair. Alumni pressure at Penn was particularly strong even before the hearings. Hedge fund manager Bill Ackman, possibly the loudest voice, is calling for the other presidents to resign as well. A Harvard graduate, Ackman wrote an additional letter to his alma mater, a good example of persuasive communication if you’re prepared to manage fallout from a heated class discussion.

Image from source.

Goldman's PR Problem

On the podcast The Prof G Pod, Scott Galloway discusses how the media portrayed the end of an Apple-Goldman consumer finance partnership. He blames Goldman communication staff for the poor reflection on the company.

From about 19:15 to 25:00 on the segment, “Goldman and Apple Part Ways” [NSFW], Galloway and cohost Ed Elson describe how the story was framed in inflammatory headlines, for example, WSJ’s “Apple Pulls Plug on Goldman Credit-Card Partnership” and Business Insider’s “Apple Wants to Cut Ties with Goldman Sachs.” They say the headlines are surprising because Goldman initiated the split, not Apple.

Galloway provides two reasons for the slant. First, he blames Goldman for not managing the message. He said, “Quite frankly, the comms people at Goldman didn’t do their job.” He also said, “The core competence now of every CEO has to be storytelling.” Second, he said the media tends to favor Apple.

They also discussed what gets read. Ed Elson asked for ChatGPT’s help in writing headlines to get clicks, and the results were similar to those published.

Despite Galloway’s usual cursing, the segment is useful for students to learn about corporate communication, particularly the importance to company valuation.

Chevy Ad Makes People Cry

Emotional appeal as a persuasive tactic is fully evident in a new Chevrolet ad. Grandma has dementia, but a Chevy helps her remember.

In the video, a granddaughter takes grandma for a ride in her 1972 Chevy Suburban, tarped in the garage for who knows how long but running flawlessly. During the five-minute commercial, we hear John Denver playing on the car’s ill-fated 8-track tape.

Grandma awakens during the journey, remembering the old days and speaking in complete, cogent sentences. She returns to her family, seemingly fully recovered.

Chevrolet’s head of marketing said the ad was created “with help” from the Alzheimer’s Association:

We talked a lot about reminiscence therapy—not that it's a cure or a solve, but the power of music, the power of memories are things that can enable the person going through it to feel more comfortable. And the people that are the caregivers that are surrounding them, to also feel more comfortable.

A clinical chaplain tells me it’s not uncommon for people with dementia to get reoriented in familiar situations (like listening to “Sunshine on My Shoulders”), although the extremes in this case are unlikely. Chevy tries to avoid this problem by calling it a “good day,” but we might consider it a “miraculous day.” A Yahoo! article also points out, “It’s worth noting, though, that people with Alzheimer’s may not recall short-term memories, as the ad’s grandmother does when she realizes she’s due back for Christmas dinner.”

I wonder how folks at the Alzheimer’s Association feel about the ad. They might worry about false expectations for people with dementia. But I get it: It’s a fantasy. That’s what Christmas—or advertisements—are often about. I teared up when grandma and grandpa reunited too.

Maybe Chevy can change the title. The generic, “A Holiday to Remember,” appeases those who don’t celebrate Christmas. But the lights, red and green decorations, pinecone wreath, and that Lands’ End sweater all scream Christmas. Even grandma says at the end, “Merry Christmas.”

Avoiding Shopping Scams and Other Online Deception

Talking about online retail scams is one way to remind students to evaluate websites critically. A Wall Street Journal quiz shows that younger people are susceptible to shopping fraud, despite what students might think about older people’s vulnerability.

The U.S. Federal Deposit Insurance Corporation (FDIC) describes signs of consumer fraud:

• Fake websites and apps

• Email links

• Making payments on unsecure sites

• Using public wifi to shop or access sensitive information

• Package delivery confirmation scams

These traps seem obvious—until we fall for them. If students don’t admit being duped, maybe they’ll talk about someone who was or a fraudulent site or message they avoided.

If you cover Cialdini’s Seven Principles of Persuasion (including a new one—unity), students might identify how online retailers use each. They can find examples on their favorite shopping websites and discuss how ethically the principle is used. Students will easily find examples of scarcity (Cyber Monday! Giving Tuesday! Black Friday!).

Image source.

He's Back: OpenAI Announces Sam Altman's Return

After more than 700 employees threatened to quit, Sam Altman and Greg Brockman agreed to return to OpenAI. The news was announced on X, where most of the communications have taken place—perhaps symbolic of the company’s losing control of the message. Nothing yet appears on the OpenAI blog, where Altman’s termination was first announced.

On the OpenAI X account, we see the smiling, reunited group and an announcement of the new board:

We have reached an agreement in principle for Sam Altman to return to OpenAI as CEO with a new initial board of Bret Taylor (Chair), Larry Summers, and Adam D'Angelo. We are collaborating to figure out the details. Thank you so much for your patience through this.

Formal announcements are missing from Microsoft’s blog too. Instead, posts by Altman and Nadella are chronicled with Nadella’s two previous posts about the situation. Two tired to press the shift key, Altman restated his commitment to the company and the team:

Sam Altman: i love openai, and everything i’ve done over the past few days has been in service of keeping this team and its mission together. when i decided to join msft on sun evening, it was clear that was the best path for me and the team. with the new board and w satya’s support, i’m looking forward to returning to openai, and building on our strong partnership with msft.

Satya Nadella: We are encouraged by the changes to the OpenAI board. We believe this is a first essential step on a path to more stable, well-informed, and effective governance. Sam, Greg, and I have talked and agreed they have a key role to play along with the OAI leadership team in ensuring OAI continues to thrive and build on its mission. We look forward to building on our strong partnership and delivering the value of this next generation of AI to our customers and partners.

Both messages say just enough, without blame or regret. Any explanation, for example, of a lost Microsoft venture, would only raise more questions. Clearly, they both want to move on, which is a theme: employees seem done with the drama, and even some of us watching have had enough.

Emmett Shear, who served as the second interim CEO for about a minute and a half, also expressed his gratitude on X:

I am deeply pleased by this result, after ~72 very intense hours of work. Coming into OpenAI, I wasn’t sure what the right path would be. This was the pathway that maximized safety alongside doing right by all stakeholders involved. I’m glad to have been a part of the solution.

For now, the drama is over. But OpenAI is a changed company, with new, self-imposed hurdles. Communication will need to be a top priority, and perhaps more of it will take place through more traditional channels. The new, experienced board members likely will have ideas for how to rebuild the company’s reputation, and they might, at some point, address whatever rifts caused Altman’s termination to start this chain of events.

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Random: I’m laughing at the Microsoft Teams jokes. People reacted to Brockman’s first post that Altman was fired over Google Meet. Here are a couple of recent clever posts:

In response to Altman’s post about returning:

The lengths this man will go to not use Microsoft teams (@isroprisdead)

In response to Brockman’s post about returning:

blink twice if it’s bc of ms teams (@gajeshnaik)

Is Snoop Dogg Vulnerable or Self-Promoting?

Snoop Dogg’s November 16 announcement that he’s quitting “smoke” sounds as though he’s struggling with a marijuana addiction. But further inspection raises questions about his intentions.

Snoop Dogg has a few cannabis-related businesses. He owns the marijuana brand Leafs by Snoop and Uncle Snoop’s, which launched Snazzle Os, onion-flavored, infused crispy snacks. Other planned projects include virtual cannabis items “authenticated by non-fungible tokens [NFTs].” A partnership with Martha Stewart produced Best Buds Bags, fancy bags to hold the duo’s BIC EZ Reach lighters on the outside.

One day (November 15) before his giving-it-up announcement, Snoop was quoted about the bag:

“This bag’s got it all. From my favorite lighter, favorite color, and dime-sized secret stash pockets to stash my favorite herbs.”

On November 19, he announced that he’s partnering with a smokeless fire pit maker, Solo Stove:

I love a good fire outside, but the smoke was too much. Solo Stove fixed fire and took out the smoke. They changed the game, and now I’m excited to spread the love and stay warm with my friends and family,

Vulnerability is great unless it’s used for personal gain; then, it’s inauthentic and more like persuasion or manipulation. To be fair, he didn’t specify what kind of smoke he was quitting, but X replies indicate I’m not the only one who drew the cannabis conclusion. Maybe this was intended as a joke, but I didn’t find it funny.

Botched Comms About Altman's Departure from OpenAI

After backlash following the sudden termination of CEO Sam Altman, the OpenAI board is in a bind. Their minimal communications and what seems like an impulsive decision caused problems inside and outside the company. The latest news is that Altman may return because of investor pressure—and because he and a few employees who resigned in protest started, within hours, setting up a competitive company.

The Board’s initial statement cites “safety concerns tied to rapid expansion of commercial offerings.” Although his termination seems shocking, we don’t know the level of friction between Altman and the board. This article describes the possible ideological differences between Altman and the board, which are more subtle than what some describe as differences between “doomers” and “accelerationists,” with more focus on how to rather than whether to expand generative AI

The company statement doesn’t say much, yet is “unusually candid,” as a Wall Street Journal writer put it:

Mr. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI.

“Candid” seems to be the word of the day. The WSJ writer means frank or forthcoming, while the board writer means truthful—both relate to integrity.

OpenAI President Greg Brockman was excluded from the meeting and resigned shortly after, writing on X that he was shocked too. Messages from Brockman and Altman to staff were short and professional. Other researchers resigned soon after. Altman has been posting his gratitude and potential plans regularly on X.

Microsoft tried to contain the damage. Without prior notice, CEO Satya Nadella posted a short statement expressing his continued confidence in the company. He referenced “Mira,” Interim CEO Mira Murati, and said nothing else about leadership changes. Still, Microsoft shares fell 1.7% by Friday’s close.

The OpenAI COO also tried to control damage in an email to staff that confirmed the decision was about a “breakdown in communications” (no kidding!) and not about “malfeasance.”

Students might be interested to learn more about the unusual governance structure of OpenAI. As a nonprofit board (in this case, only six members), they have more control over OpenAI’s leadership and operations than do investors of the subsidiary. Still, investors—and employees and the public—can and certainly are voicing their opinions. Whether or not Altman returns, the messaging will be interesting to watch.

Emotions Drove a Football Manager's Comments

A football writer offers a lesson for all business communicators: “Maybe managers shouldn’t give interviews straight after games.” Similar to other business situations, emotions run high, and people need to take a beat before they speak or write. Student athletes and fans will be particularly interested in this story, but the example is for anyone who reacts before thinking through the consequences.

Arsenal Football Club (soccer to Americans) manager Mikel Arteta took an interview after a disappointing game. He disputed a goal call:

We have to talk about the result because you have to talk about how the hell this goal stands up and it’s incredible. I feel embarrassed, but I have to be the one now come here to try to defend the club and please ask for help, because it’s an absolute disgrace that this goal is allowed. . . .It’s an absolute disgrace. Again, I feel embarrassed having more than 20 years in this country, and this is nowhere near the level to describe this as the best league in the world. I am sorry.

Critics called Arteta’s reaction “disproportionate.” Such language as “how the hell” and “absolute disgrace” reflect a far greater injustice. I’ll leave the analysis to sports enthusiasts, but it seems like a questionable call—not an outrage.

The trouble worsens when the Arsenal Football Club defends Arteta in a statement, which included unequivocal support: “Arsenal Football Club wholeheartedly supports Mikel Arteta’s post-match comments.” The Athletic describes what business communication faculty would conclude, comparing the response to a crisis situation:

But for a football club to release an “official statement,” once upon a time the sort of thing reserved for managerial dismissals and so forth, about a marginal refereeing decision they disagree with, is extraordinary.

Over-reactions are difficult to withdraw. Arsenal supported the manager, which generally is a good corporate practice, but doubling-down on exaggeration makes management look defensive and lacking humility, as if they know a wrong was committed but are stuck.

Of course, a better approach for Arteta is to have waited a bit, as the writer suggests. It’s the same for business communicators. Write an email while angry but don’t send it until a day or so later. During a difficult interaction, pause and step away if you need to. Most often, an immediate response, as this situation shows, isn’t needed.

"Open to Work" and Other Desperations

Although LinkedIn offers an “open to work” option, at least one recruiter says it’s the “biggest red flag" for employers. This reminds me of other ways students inadvertently appear desperate to recruiters.

LinkedIn explains the feature, which offers the option to show the banner to all LinkedIn members or only to recruiters. Users might select all members, thinking about networking strategies, but this might increase the look of desperation. LinkedIn also explains, “[W]e can’t guarantee complete privacy” because, if someone is still employed, recruiters at the company might find out from other recruiters that they’re on the market.

One recruiter compares job seeking to dating and encourages “exclusivity.” Business communication faculty may refer to Cialdini’s scarcity principle: people want what they can’t have.

We coach students to be more selective in their search. When a recruiter or hiring manager asks, “What’s your ideal job?,” students should have one in mind—not too narrow, but not too broad either. “I’ll do anything. I just want to work for xx” likely won’t inspire an offer. This reminds me of reading applications for the Cornell Nolan School of Hotel Administration. Many students would write that they applied because “it’s the best” program. That answer says little about the applicant’s decision process—or maybe the answer says it all.

On the other hand, students who lie about multiple job offers are playing a dangerous game. In addition to the obvious issues of integrity, college recruiters talk.

Networking requires more effort than a banner. Years of curating a network, which develops from supporting and being helpful to others, results in people who care about an applicant and want to see that person succeed. For students, this is more challenging but starts during school.

John Oliver Blasts McKinsey

Last Week Tonight produced a 26-minute segment criticizing management consultancy McKinsey. Students can decide whether John Oliver was fair in his conclusion that, “McKinsey’s advice can be expensive but obvious, its predictions can be deeply flawed, and it’s arguably supercharged inequality in this country.” He contrasts these conclusions with the CEO saying, “Our purpose is to create positive, enduring change in the world.”

Here are a few areas to explore, or you can just show the fake recruiting ad starting at 23:00, which is pretty funny.

Timing

I’m curious why Oliver created this segment now. McKinsey’s role in the opioid crisis, which he covers at around 12:00, was most highly litigated back in 2021 - 2022. He doesn’t point to anything specific since then.

Evidence

To make his points, Oliver uses a variety of evidence but mostly examples in the form of stories. If this were a serious rebuke of McKinsey, students might expect more data. I also question the many references to a 1999 film. Maybe things have changed since then? The inexplicable timing contributes to the segment feeling like the attack that it is, rather than a balanced piece. But I forget: This is “late-night news,” not actual news.

The Example of Eliminating Signatures

The example of identifying cost savings for an energy client is just silly (at 7:30). I wonder whether this is just a terrible example—or whether more information about the situation, or more examples in the original video, would make it less embarrassing. We don’t see the context.

Oliver’s Indignance

Oliver jokes about his British accent sounding “smug” (6:33), but his style is part of the reason I don’t watch him or other talk-show hosts. I’m guessing a lot of students find him funny because of his style. This might start an interesting discussion about delivery styles.

McKinsey’s Response

I don’t see any response from McKinsey, and I don’t think it would be wise. But it’s a worthy discussion point with students. Why wouldn’t the company respond? What are the arguments for responding? What, if anything, could the company say or do?

Other Perspectives

Business communication faculty—and journalism faculty—teach students to offer multiple, sometimes conflicting perspectives. At around 21:00, Oliver does present other sides. He acknowledges that other consulting firms sometimes act unethically or have questionable client relationships, which (sort-of) addresses criticism that he’s singling out McKinsey. Oliver also describes how McKinsey responded to an inquiry from the show a few days before airing and admits that he’s presenting examples, which McKinsey would say don’t represent their work. But he argues against these claims by saying that the harm McKinsey has done outweighs the good.

Character

Starting at around 22:30, Oliver calls out the character dimensions students will associate with this story. He calls for greater accountability and transparency, which I describe as part of integrity. That cues up the parody McKinsey recruiting video, which starts at 23:00 for students’ enjoyment.

Of course, the entire segment raises questions about Oliver’s own integrity. Then, again, the show is what it is intended to be: entertaining.