Equifax and Marriott CEOs Testify About Security Breaches

U.S. Senators grilled Equifax and Marriott CEOs about data breaches at the companies in the past two years. Equifax CEO Mark Begor responded to questions following a Senate subcommittee report titled, “How Equifax Neglected Cybersecurity and Suffered a Devastating Data Breach.” The report concludes an investigation of the 2017 breach of 143 million customers’ personal data and accuses the company of not prioritizing security, not following its own patching policies, failing to notify the public in a timely manner, and more.

Begor defended the company and blamed the increasing sophistication of hackers:

“These attacks are no longer just a hacker in the basement attempting to penetrate a company’s security perimeter, but instead are carried out by increasingly sophisticated criminal rings or, even more challenging, well-funded nation-state actors or military arms of nation-states.”

But Senators pointed out that credit company competitors Experian and TransUnion have managed to avoid similar attacks.

The Marriott breach affected 83 million guests of Starwood, which Marriott acquired after the breach took place. Compared to the Equifax situation, Marriott got a pass from senators, such as Tom Carper of Delaware, who said, “The data breach announced by Marriott this past November does not appear to have been caused by the same cultural indifference to cybersecurity the record indicates existed at Equifax. Rather, it looks like Marriott inherited this breach from Starwood.”

Marriott has been consistent in blaming Starwood for the issue, wanting to preserve the brand. In his testimony, CEO Arne Sorenson reinforced the company separation:

“We conducted an assessment on integrating the two systems, although this inquiry was legally and practically limited by the fact that until the merger closed, Starwood remained a direct competitor.”

Here is Sorenson interviewed on CNBC:

Discussion:

• Watch some of the testimony. How well did each CEO handle the Senators’ questions?

• Assess Sorenson’s appearance on CNBC. What did he do to try to rebuild the company’s image? What persuasive strategies did he use?

• Review the subcommittee’s report on the Equifax breach. How is the report organized? How would you describe the writing style and tone? What suggestions would you have for the authors to improve readability?

• From your perspective, what leadership character dimensions do the CEO illustrate or fail to illustrate?

Open Letter to Amazon

After Amazon’s failed move to Long Island City, Queens, local executives, lawmakers, and others signed an open letter asking Amazon to reconsider. The letter focuses on the benefits NYC would gain from having Amazon, particularly 25,000 new jobs.

Also appearing as a full-page ad in the New York Times, the letter includes some emotional appeal about New Yorkers’ “charm” and acknowledges difficulties in getting community support for the project. Not until the last paragraph do we see a shift from New York to Amazon and how the company would benefit from building in Long Island City.

Discussion:

• What principles of persuasion does the letter illustrate?

• How could the letter be improved?

• What leadership dimensions are illustrated? Which may be lacking?

Instacart Tries to Make Things Right

Criticized for underpaying shoppers, personal grocery delivery company Instacart is changing its compensation model. Personal shoppers were always paid a minimum for orders, but the company had started including tips in that minimum amount. The company admitted to paying only 80 cents in some cases for someone to pick and deliver a batch of groceries. In a petition, personal shoppers claimed that “customers' tips are essentially being paid to Instacart rather than to the workers ourselves.”

In a blog post, Instacart CEO Apoorva Mehta admits “clearly we haven’t always gotten it right.” He announced policy changes to ensure the following:

• Tips should always be separate from Instacart’s contribution to shopper compensation

• All batches will have a higher guaranteed compensation floor for shoppers, paid for by Instacart

• Instacart will retroactively compensate shoppers when tips were included in minimums

Shopper image source.

Discussion:

• Read Mehta’s entire blog post. What principles of business communication does he follow? What, if anything, can be improved?

• In what ways does Mehta demonstrate strong leadership character?

• How could Instacart have avoided this situation, including the negative effects on personal shoppers and the negative publicity?

Jeff Bezos’s Medium Post

News is swirling about Amazon CEO Jeff Bezos’s long Medium post accusing the National Enquirer of “extortion and blackmail” for pictures of him and a woman other than his wife. Bezos claims that Chairman and CEO David Pecker acts of behalf of President Trump to discredit key people, and he cites an immunity deal between the Enquirer and the justice department for these actions. President Trump has openly criticized Amazon for not paying enough taxes.

A popular story about the piece is how Bezos used the word “complexifier”:

“My ownership of the Washington Post is a complexifier for me. It’s unavoidable that certain powerful people who experience Washington Post news coverage will wrongly conclude I am their enemy.”

A Slate article explores whether it’s a real word, and it is not in standard English. The “investigation” concludes that the word “appears most at home in the canon of self-help business gobbledygook.” As expected, memes, like the one here, are popular.

Bezos’s post is interesting from a business writing and character perspective if nothing more.

Discussion:

• Analyze Bezos’s post: who are the primary and secondary audiences, and what are his communication objectives? How is it organized? What is the tone?

• To what extent does Bezos meet his communication objectives?

• Overall, what’s your view of his approach to address the situation with this post?

• Which leadership character dimensions does Bezos demonstrate?

More About Failure Resumes

Two years ago, a Princeton professor’s “CV of Failures” went viral, encouraging all of us to admit our misses and view them as learning experiences. This week, The New York Times popularized the idea in an article, “Do You Keep a Failure Resume?”

The author advises a strategy:

“When you fail, write it down. But instead of focusing on how that failure makes you feel, take the time to step back and analyze the practical, operational reasons that you failed. Did you wait until the last minute to work on it? Were you too casual in your preparation? Were you simply out of your depth?”

Of course, what he’s proposing is self-reflection. But the approach is rationale: to think through what happened. Research tells us that a more emotional approach—allowing yourself to actually feel negative emotions from a failure—leads to greater learning and makes it less likely that you’ll make the same mistake in the future.

We may avoid failure because we feel shame. The graphic above shows the difference between failing and “being a failure.” Experiencing failure instead of feeling like a failure helps us be vulnerable instead of feeling what could be debilitating shame.

Quote image source.

Being a Failure image source.

Discussion:

• How do you typically view failure? Do you try to forget about it? Are you harsh with yourself? Or something else?

• Do you have a process of regular self-reflection? What could you do on a daily basis to learn from both your successes and your failures?

Governor's Racist Yearbook Images

Virginia State Governor Ralph Northam is facing calls for his resignation when images from his 1984 medical school yearbook surfaced. After Northam was in the news this week for supporting women’s rights to an abortion, a conservative group posted the images on the website Big League Politics.

Two people appear in one image: one in blackface and the other wearing a KKK outfit. Northam responded to the controversy with this statement:

“I am deeply sorry for the decision I made to appear as I did in this photo and for the hurt that decision caused then and now. This behavior is not in keeping with who I am today and the values I have fought for throughout my career in the military, in medicine, and in public service. But I want to be clear, I understand how this decision shakes Virginians’ faith in that commitment.”

For some, the apology isn’t enough. Several democrats who recently entered the 2020 presidential race have weighed in: Sen. Elizabeth Warren (Mass.), Sen. Kamala D. Harris (Calif.), Sen. Kirsten Gillibrand (N.Y.), Sen. Cory Booker (N.J.), and Julián Castro (former mayor of San Antonio) all called for Northam’s resignation. He has been in office about 13 months.

UPDATE: Governor Northam now says he did not appear in the photo, and he refuses to resign:

Discussion:

• What do you think Northam thought when he ran for office? Did he not remember the photo, or did he not think it was a big deal, or was he hoping that people wouldn’t find out? You have to wonder.

• Should Northam have done or said anything in addition to the apology to garner more support? Would it have made a difference in the public response?

• How do you interpret Northam changing position?

• Should Northam resign? Why or why not?

Gillette Ad Gets Mixed Reviews

Gillette took a risk with its new ad campaign. Spinning its 30-year slogan, “The Best a Man Can Get,” the company introduced, “The Best a Man Can Be.” A new video references sexual harassment, challenges the expression “boys will be boys,” and encourages men to “hold other men accountable.”

Gillette explains the rationale in a press release. In addition, the URL thebestamancanbe.org redirects to https://gillette.com/en-us/the-best-men-can-be, where the company explains the campaign:

Thirty years ago, we launched our The Best A Man Can Get tagline.

Since then, it has been an aspirational statement, reflecting standards that many men strive to achieve.

But turn on the news today and it’s easy to believe that men are not at their best. Many find themselves at a crossroads, caught between the past and a new era of masculinity. While it is clear that changes are needed, where and how we can start to effect that change is less obvious for many. And when the changes needed seem so monumental, it can feel daunting to begin. So, let’s do it together.

It’s time we acknowledge that brands, like ours, play a role in influencing culture. And as a company that encourages men to be their best, we have a responsibility to make sure we are promoting positive, attainable, inclusive and healthy versions of what it means to be a man. With that in mind, we have spent the last few months taking a hard look at our past and coming communication and reflecting on the types of men and behaviors we want to celebrate. We’re inviting all men along this journey with us – to strive to be better, to make us better, and to help each other be better.

From today on, we pledge to actively challenge the stereotypes and expectations of what it means to be a man everywhere you see Gillette. In the ads we run, the images we publish to social media, the words we choose, and so much more.

As part of The Best Men Can Be campaign, Gillette is committing to donate $1 million per year for the next three years to non-profit organizations executing programs in the United States designed to inspire, educate and help men of all ages achieve their personal “best” and become role models for the next generation.

Our tagline needs to continue to inspire us all to be better every day, and to help create a new standard for boys to admire and for men to achieve… Because the boys of today are the men of tomorrow.

We’ve all got work to do. And it starts today.

Not everyone appreciates the new campaign. The YouTube video received 582,000 likes and 1 million dislikes. Some feel that the video unfairly accuses all men of not doing better.

A Gillette spokesperson said the campaign “is much more than a video—it is a commitment to spark and contribute to positive change through our voice as an advertiser and our actions as a brand and a company.” Analysts say the current boycotts probably won’t last long and will have little bottom-line effect on the company.

Discussion:

• What’s your view of the video? Do you appreciate the message, find it offensive, or something else?

• What else, if anything, should the company say in response to the controversy?

• Which leadership character dimensions are illustrated by this story?

Acting Attorney General's Credentials Questioned

Acting U.S. Attorney General Matthew Whitaker seems to have inflated his self-description as an “Academic All-American.” The title appeared on a bio for his previous law firm’s website, on an application for a judge position in 2010, and on a resume discovered from 2014.

Whitaker played football at the University of Iowa for two years, but he didn’t receive the official honor, according to the organization that grants the title. In 1992, the title went to another Iowa player.

Part of the confusion may be caused by a media guide produced by the university. An assistant athletic director admitted to describing Whitaker as “District VII academic All-American,” which is not correct.

Whitaker image source. Resume icon image.

Discussion:

• The Wall Street Journal report doesn’t include a quotation from Whitaker. What, if anything, should Whitaker say to defend himself?

• What on your resume could be called into question? Have you exaggerated any of your experience that could be discovered? Should you change anything to be more accurate?

• How is this situation an issue of integrity? What other character dimensions could be at play here?

Cheesecake's Failed Promotion

To celebrate its 40th anniversary, Cheesecake Factory offered free cheesecake delivery, but stores ran out and deliveries were slow.

Through the app DoorDash, customers ordered a free slice of the cake. The company said 40,000 slices were available, and people who didn’t get their promised piece got angry. Drivers were put in uncomfortable positions, sometimes waiting hours for orders to be ready for delivery. A flight between drivers broke out in Arlington, VA, and one got arrested.

The company responded by expressing gratitude for the tremendous interest and by complimenting themselves for delivering 60,000 slides—but no apology came. DoorDash tweeted, “A huge shoutout to all of the hardworking Dashers who made this exciting day possible! You’re the real MVPs.” A Cheesecake Factory spokesperson said, “Our Day of 40,000 Slices promotion had such a tremendous response from our guests that we extended it and delivered more than 60,000 complimentary slices. We were truly humbled by the popularity of the offer and by how quickly our fans responded as all of the 60,000 complimentary slices were ordered within an hour of the promotion's start time."

Discussion:

• How could Cheesecake Factory have done a better job planning the promotion?

• Should the company response be different? Do you think the leaders should apologize? Why or why not? If so, what would be an appropriate apology?

Announcing a Restaurant Closing

Danny Meyer gives us a great model of how to write a bad-news message. In his announcement about closing the restaurant North End Grill, Meyer demonstrates communicating with humility and transparency.

Meyer describes the pain involved in closing a restaurant, including the effect on employees. He admits to mistakes and relates this closing to Tabla, which closed four years ago. He didn’t need to remind us, but he does so humbly, and as a lesson to learn from failure.

Meyer’s message is encouragement for compassionate, transparent communication planning:

All too often in our industry, a padlock on the front door might be the very first notice employees, landlords, and suppliers receive that a restaurant will be closing. 

He also teaches us that leading requires courage:

[W]hen reality dictates closing, we have a choice: to do so in secrecy and shame, or instead, with dignity, integrity, and pride.

Restaurant image source. Meyer image source.

Discussion:

• Analyze Meyer’s full statement: audience, objectives, writing style, organization, etc. What works well, and what could be improved?

• In what ways does Meyer’s statement illustrate vulnerability as a leadership strength?

Reversal at Maryland

The University of Maryland has reversed its position on keeping football coach DJ Durkin. At first, Durkin was reinstated after a damning report about player abuse which resulted in the death of a student, Jordan McNair. Critics say the University’s Board of Regents overstepped in disallowing Loh to terminate the coach.

Now, pressure from students, players, the McNair family, and politicians left the University with no choice but to fire Coach Durkin. In a letter, President Loh explained the decision, including his previous concerns about Durkin’s return.

McNair’s father made a statement, including a message to President Loh when asked:

“The same thing I’ve always said to Dr. Loh. I’ve always commended Dr. Loh for having a level of integrity and doing the right thing even since he first initially came to the hospital, and secondly, when he came to us as a family to apologize and to take full moral and legal responsible for the tragic events that happened.”

In the meantime, Maryland players were involved in an altercation. It seems as though this situation has divided the team as well.

UPDATE: James T. Brady, chairman of the University System of Maryland’s Board of Regents, resigned last week, and President Loh is winning back his power. A Chronicle article notes that Loh won the “battle waged in the court of public opinion,” and whether he will leave the University as planned is now unclear. In a statement, Brady explained his decision and, using the word “proud” three times, cites board accomplishments during his tenure.

Discussion:

• How is this situation an issue of integrity?

• The regents had planned to terminate President Loh. Should they reverse this position too?

• What should the University do now to repair its image?

• We have heard nothing that I found from the regents (except their confidence in Coach Durkin). Should they communicate something now? What could they say that could help instead of hurt the situation?

Emotions and Political Views After Synagogue Shooting

A shooter killed eleven people and wounded several others, including three police officers, in a Pittsburgh synagogue. Officials report that the act was motivated by hate, and the shooter is quoted saying, “I just want to kill Jews.” The Washington Post calls it, “The deadliest attack on Jews in the history of the United States.”

President Trump condemned the shootings: “This wicked act of mass murder is pure evil . . . . hard to believe and, frankly, something that is unimaginable.” The president also promoted the idea of armed guards: “If there were an armed guard inside the temple, they would have been able to stop them. Maybe there would have been nobody killed except for him, frankly.”

Pittsburgh Mayor Bill Peduto disputed this view: “The approach we need to be looking at is how we take the guns—the common denominator of every mass shooting in America—out of the hands of those looking to express hatred through murder.”

During a news conference, Pittsburgh Public Safety Director Wendell Hissrich gave an emotional statement, calling the crime scene “horrific.”

Image source.

Discussion:

• We see Hissrich’s emotions during the news conference. He demonstrates authenticity and vulnerability. How do you view his delivery?

• President Trump’s comments during this time are controversial. What’s your view? How might your own feelings about gun advocacy or gun control affect your perspective?

Tesla Investigated for Fraud

Tesla is facing a new challenge this week: a U.S. Federal Bureau of Investigation (FBI) criminal probe into whether the company misstated production data and therefore misled investors. The investigation will focus on Model 3 sedans.

A Wall Street Journal article explains part of the issue. CEO Elon Musk tweeted on July 2, 2017, “Looks like we can reach 20,000 Model 3 cars per month in Dec.“ But reports at the time showed a less optimistic picture. The result was only 2,700 cars produced for the entire year.

A spokesperson said the FBI document requests were voluntary and defended the company:

“When we started the Model 3 production ramp, we were transparent about how difficult it would be, openly explaining that we would only be able to go as fast as our least lucky or least successful supplier, and that we were entering ‘production hell.’ Ultimately, given difficulties that we did not foresee in this first-of-its-kind production ramp, it took us six months longer than we expected to meet our 5,000 unit per week guidance. Tesla’s philosophy has always been to set truthful targets –- not sandbagged targets that we would definitely exceed and not unrealistic targets that we could never meet. While Tesla gets criticized when it is delayed in reaching a goal, it should not be forgotten that Tesla has achieved many goals that were doubted by most. We are enormously proud of the efforts of the whole company in making it through this difficult ramp and getting us to volume production.”

Image source.

Discussion:

• What’s your view of Musk’s statement compared to the result: arrogance, entrepreneurial optimism, or something else?

• How well does the Tesla spokesperson address the investigation? What else, if anything, should the company say at this point?

• In what ways does the company demonstrate a lack of vulnerability in this situation?

Google Admits Sexual Harassment Incidents

It’s been quiet until now, but Google has fired 48 employees for sexual harassment. A New York Times article exposed a number of high-profile departures dating back to 2014, including Andy Rubin, who developed the Android.

Rubin was paid $90 million when the company asked for his resignation, but executives never told the entire truth: that Rubin left because he was accused of sexual misconduct. Instead, then-CEO Larry Page, complimented him: “I want to wish Andy all the best with what’s next,” and “With Android, he created something truly remarkable—with a billion-plus happy users.” Rubin denies the claim and the circumstances of his termination.

In addition to this situation, the Times article cites a number of relationships between senior-level managers and employees. An email from CEO Sundar Pichai and the VP of people operations to staff acknowledges the 48 departures, including 13 “senior managers and above.”

Hi everyone,

Today's story in the New York Times was difficult to read.

We are dead serious about making sure we provide a safe and inclusive workplace. We want to assure you that we review every single complaint about sexual harassment or inappropriate conduct, we investigate and we take action.

In recent years, we've made a number of changes, including taking an increasingly hard line on inappropriate conduct by people in positions of authority: in the last two years, 48 people have been terminated for sexual harassment, including 13 who were senior managers and above. None of these individuals received an exit package.

In 2015, we launched Respect@ and our annual Internal Investigations Report to provide transparency about these types of investigations at Google. Because we know that reporting harassment can be traumatic, we provide confidential channels to share any inappropriate behavior you experience or see. We support and respect those who have spoken out. You can find many ways to do this at go/saysomething. You can make a report anonymously if you wish.

We've also updated our policy to require all VPs and SVPs to disclose any relationship with a co-worker regardless of reporting line or presence of conflict.

We are committed to ensuring that Google is a workplace where you can feel safe to do your best work, and where there are serious consequences for anyone who behaves inappropriately.

Sundar and Eileen

Image source.

Discussion:

• Should Google have been more transparent about the previous departures? Why or why not?

• Should the executives say more in the email about the specific departures mentioned in the Times article? Why or why not?

• Assess the email for audience analysis, objectives, tone, organization, and style. What works well, and what could be improved?

• Which leadership character dimensions does Pichai demonstrate and fail to demonstrate?

Facebook's War on "Fake News"

Facebook has taken several steps to banish incorrect information on the site. The company provides three examples of questionable news items and the action they took, including what they missed.

In some of these situations, stories were doctored with images from related situations. One image, with the caption, “Man from Saudi spits in the face of the poor receptionist at a Hospital in London then attacks other staff,” represents a situation that happened at a veterinary hospital. The post explains, “On Facebook, we’ve seen years-old images of violent acts, protests and war zones reposted and used to inflame current racial or ethnic tensions.”

Another story promised that NASA would pay people $100,000 “to stay in bed for 60 days.” Although this may sound appealing—and it did garner millions of Facebook views—again, this claim referred to an older article in which a journalist was paid $18,000 for staying in bed for 70 days. But the offer no longer stands.

A Standard study reports that Facebook’s efforts are working to reduce misinformation, although we don’t yet see the same effects on Twitter: “Interactions then fell sharply on Facebook while they continued to rise on Twitter.“ A Mashable report explains:

“Mark Zuckerberg and company may be on the right track when it comes to fighting fake news, but as you can see from those engagement numbers, it’s not a success story quite yet. Even with the downward trend over the past 2 years, Facebook is still responsible for much more of the spread of fake news than a social platform like Twitter.”

Discussion:

• How do you interpret Facebook’s progress?

• Assess the Facebook post. How well is the company taking responsibility and explaining what still needs to be done?

Senators Send Harsh Letter to Google

The U.S. Committee on Commerce, Science, and Transportation sent a strongly worded letter to Google CEO Sundar Pichai. The senators question what the company has done to protect 500,00 users whose profile information was stolen in 2015. Their anger stems from knowledge of an internal memo, cited in a Wall Street Journal article, discouraging disclosure because of fear of “immediate regulatory interest” and the requirement for Pichai to testify before Congress.

In the letter, the senators compare Google’s response to Facebook’s in light of the Cambridge Analytica breach:

“At the same time that Facebook was learning the important lesson that tech firms must be forthright with the public about privacy issues, Google apparently elected to withhold information about a relevant vulnerability for fear of public scrutiny.”

The senators then list specific information about vulnerabilities for Google to provide by October 30.

Google logo image source.

Discussion:

• Read the Wall Street Journal article for more background information. Did the senators respond appropriately? Why or why not?

• What is Google’s accountability in this situation? What is the committee’s accountability?

• In addition to responding to the senators’ requests, what, if anything, should Google communicate to the public at this point?

• Google may have been avoiding its own vulnerability.

British Rail Company Apologies

Great Western Railway is tripping over itself apologizing for thousands of canceled and late trains. Apologies by British train organizations are so common that a web designer created a site, https://www.sorryfortheinconvenience.co.uk, to chronicle statements, now totaling more than 420,000.

A look at the railway’s Twitter feed shows two failures but no apology. Maybe the organization is catching on: over-apologizing isn’t a good strategy. At some point, customers just want problems fixed.

Discussion:

• How can a leader know when the organization is apologizing too much?

• Take a look at the GWR Twitter feed. How would you advise the organization to improve its communications?

• What leadership character dimensions is GWR demonstrating and failing to demonstrate with its apologies?

Kavanaugh and Ford Demonstrate Vulnerability

During the Senate Judiciary Committee hearings, Judge Brett Kavanaugh and Dr. Christine Blasey Ford both displayed emotions for the media to analyze and compare.

A New York Times article reports, “Kavanaugh's show of both fury and tears was a cry from the flip side of the #MeToo movement.” We saw an angrier Kavanaugh than during his Fox News interview, perhaps a reaction to President Trump’s disappointment in his mild manner.

A CNN article recalls a 2005 interview when President Trump said, "When I see a man cry I view it as a weakness. I don't like seeing men cry." The article also concludes,

“Judgments on Kavanaugh's emotional performance will likely depend on each viewer's perspective, but he demonstrated the wider latitude that men in politics have today to show their emotions. However, were he a woman, he would likely be dismissed as overwrought, even hysterical, which helps explain why the witness who testified before him, Christine Blasey Ford, was far more composed and restrained.”

The Times article describes Ford’s presentation: “[H]er voice cracking but her composure intact.” In another Times piece, “The ‘Tight Rope’ of Testifying While Female,” the writer confirms, “She teared up in her testimony — her voice cracking — but she did not openly cry or break down.” That article also cites her asking for caffeine and telling a joke: “These are all codes for ‘she is displaying proper expectations of femininity.’”

Gender experts and other reporters also noted the contrast. Referring to Kavanaugh’s tears, Alicia Menendez of PBS said, “If he were a woman, we’d be questioning if she were unhinged.”

Both demonstrated vulnerability and risked emotional exposure. Despite the public backlash, Ford came forward to tell her story. And Kavanaugh responded by displaying emotions often viewed negatively for a man. However, overall, reports of his anger seem to overshadow the tears.

Kavanaugh image. Ford image source.

Discussion:

• What’s your view of the emotional displays during the testimony? How do you think gender differences factored into how each was judged?

• Have you ever cried at work? Which emotions are seen as appropriate, and which are discouraged? Should we be more open to both anger and sadness in the workplace?

Accusation and Defense of Brett Kavanaugh

On the final days of interviews with Brett Kavanaugh to become a Supreme Court Justice, a woman has accused him of sexual assault when they were teenagers, more than 30 years ago. Professor Christine Blasey Ford wanted to stay anonymous, but she is now known as the one who claims Kavanaugh assaulted her at a Georgetown Preparatory School party when she was 15 and Kavanaugh was 17. She revealed her allegation in a letter to her congressman. Dr. Blasey believes that she would have been raped if Kavanaugh weren’t drunk. Both will testify on Monday.

For leadership and business communication students, let’s look at the arguments on both sides. Here is some of the evidence presented so far:

• Twenty-four women who attended private school with Dr. Blasey supported her in a signed letter “to attest to her honesty, integrity, and intelligence.” (For some letter-writing history, read the defense of Professor Avital Ronell and the subsequent explanation.)

• Dr. Blasey passed a polygraph test, but critics say the test is imperfect for proving truthfulness.

• Although Dr. Blasey doesn’t remember some details (for example, whose house they were at), trauma experts say this is typical for people who experience such a trauma.

• Kavanaugh denies the incident: “I categorically and unequivocally deny this allegation. I did not do this back in high school or at any time.”

• Mark Judge, Kavanaugh’s roommate at the time, said, “I have no memory of this alleged incident." Dr. Blasey claims he was in the room during the incident. Judge also said, "It's just absolutely nuts. I never saw Brett act that way.” He also said they were raised in Catholic homes that didn’t tolerate such behavior and that Kavanaugh was “brilliant” and not “into anything crazy or illegal.” Judge wrote a book, Wasted: Tales of a GenX Drunk, about his time at Georgetown Prep.

• Kavanaugh’s high school yearbook has become public and is “raising eyebrows,” as MSNBC and CNN both report. The yearbook includes captions such as “Do these guys beat their wives?” and “100 kegs or bust,” indicating a party culture. Mark Judge’s yearbook page, shown here, includes a quote: “Certain women should be struck regularly, like gongs.”

The FBI and/or congressional investigation is a nearly impossible task. Does this evidence help?

Cover image source. Yearbook image source.

Discussion:

• Which of these evidence points do you consider most and lease relevant to the question of whether Kavanaugh sexually assaulted Dr. Blasey?

• What biases might you bring to the analysis? Think about your own assumptions and how they might affect your interpretation.

• What advice would you give to members of Senate Judiciary Committee as they decide what happened and, ultimately, whether Kavanaugh should be elected to the highest court position.

JD.com CEO Arrested for Sexual Misconduct

Richard Liu, founder and CEO of Chinese e-commerce company JD.com, was arrested in Minneapolis for sexual misconduct. Because of his high profile and billionaire status, Liu’s arrest was the most popular topic of conversation on social media in China last week.

Two people describe a case involving a student at the University of Minnesota, part of a joint doctoral program in business administration with Tsinghua University. Liu was released without bail and has returned to China. He denies any wrongdoing, and JD.com posted a statement in Chinese, translated by a student:

Sunday, Sep. 2, 2018

We have noticed that there are rumors and false accusations about Mr. Qiangdong Liu on Weibo (Chinese social media site, similar to Twitter) recently. We hereby declare as follows: Liu was falsely accused while in the US on a business trip, but the police investigators found no misconduct and that he would continue his journey as planned. The company will take necessary legal action against false reporting or rumors.

Monday, Sep. 3, 2018

So far as we know, Mr. Liu was arrested on Aug. 31, 2018 in Minneapolis for investigation. He was released from custody shortly. There was no accusation or bail required for the release. Mr. Liu has returned to China and will resume his business activities as originally planned.

In addition to the stock price drop and embarrassment this causes Liu and JD.com, the company may have a governance problem. Liu is required to attend board meetings in person (although he may be able to join via video or telephone). Without him, as an 80% voting rights owner, the board may be unable to make decisions for the business.

A New York Times article focuses on China’s fascination with self-made billionaires as celebrities. Online discussions featured photos of Jack Ma laughing at Liu’s trouble.

Liu image source.

Discussion:

• I don’t see a statement or press release from Liu or from the company in English. Should Liu or the company publish something at this point on the website? Why or why not?

• What should the company do now to manage through this crisis?

• How does the Chinese reaction compare to situations in the United States? Can you think of a similar situation when Americans were fascinated by a leader’s hardship?