Salesforce CEO Addresses McConaughey Controversy

The Salesforce CEO responded to criticism about paying actor Matthew McConaughey (“a friend,” according to a WSJ report) more than $10 million while laying off 8,000 employees. In a video interview, Marc Benioff uses persuasive strategies to convince the audience that this is appropriate and not an ethical issue or, as the Barron’s interviewer asks, “Is that fair?”

Benioff started with a joke, which is surprising considering the situation. He interrupts the interviewer to say, “alright, alright, alright,” a classic line from McConaughey’s 1993 movie Dazed and Confused. By not taking the issue seriously, Benioff might have reduced his credibility.

But Benioff then used an effective crisis communication strategy of distancing the current time: “Years ago, we signed a contract with Matthew . . . ” A better choice might have been to avoid using only his first name, which stresses his personal relationship. But the time period does separate the decision from the recent cost-cutting.

Directly addressing the question, Benioff said, “Putting those two things together, I don’t think is fair,” and “it’s not related to our layoffs.” Another strategy Benioff used was providing context. First, he explained that the company ramped up and then faced currency and inflation issues that required reductions. Next, he said, “Do we have to take an employment action [layoffs]? Well, I think every company is.” Acting in line with other companies makes the layoffs sound reasonable—even necessary—without requiring other cuts, such as marketing.

Of course, Benioff doesn’t address the possibility of cancelling McConaughey’s contract, and he doesn’t provide evidence of McConaughey’s “great work” that would warrant maintaining the expense. But overall, Benioff does a good job pushing back on the criticism.

Lesson Learned: Don't Use AI in Sensitive Situations

The Office of Equity, Diversity, and Inclusion (EDI) at Peabody College, Vanderbilt University, used ChatGPT to generate an email about the Michigan State campus shooting, and it wasn’t received well. This story illustrates issues of accountability (administrators taking responsibility), but failing compassion in a time of tragedy and failing integrity (consistency).

The email referred to “shootings,” which is not accurate. Otherwise, it sounds like boilerplate, but not that much different from typical emails a campus community receives in these types of situations. Compare that email to one sent from the vice provost and dean of students, which sounds more emotional but is still common.

Perhaps the only giveaway was a line at the bottom:

(“Paraphrase from OpenAI’s ChatGPT AI language model, personal communication, February 15, 2023.”)

On the one hand, I admire the writers’ honesty, doing what faculty are increasingly asking students to do: to identify whether and how they use AI for their writing. But of course, the choice reflects poor judgment.

Student backlash was swift and fierce. Using words like “disgusting” and “sick and twisted,” students called on administrators to “Do more. Do anything. And lead us into a better future with genuine, human empathy, not a robot.” A senior said, “Would they do this also for the death of a student, faculty, or staff member? Automating messages on grief and crisis is the most on-the-nose, explicit recognition that we as students are more customers than a community to the Vanderbilt administration. The fact it’s from the office of EDI might be the cherry on top.”

University officials responded quickly. In a follow-up email to students, an EDI dean wrote, “While we believe in the message of inclusivity expressed in the email, using ChatGPT to generate communications on behalf of our community in a time of sorrow and in response to a tragedy contradicts the values that characterize Peabody College. As with all new technologies that affect higher education, this moment gives us all an opportunity to reflect on what we know and what we still must learn about AI.” Could ChatGPT have written that too?

This is a precarious time for universities, as faculty grapple with how to use AI tools and what policies best serve students and academic goals. Using AI as a starting point for such a sensitive message may never be acceptable, and it’s certainly too soon now. Faculty will have a difficult time enforcing AI policies if they use tools in ways that contradict the spirit of their own guidelines.

"Intense" Google All-Hands Meeting

A window into a Google employee meeting reveals strife within the company and how executives are responding by redefining/clarifying strategy and downplaying problems. Employees are still frustrated about the embarrassing introduction of Bard, Google’s AI competitor to ChatGPT. In the exchange, below, Bard product lead Jack Krawczyk tried to distinguish the engine from search, which employees say differs from the initial strategy. A new feature, “Search It,” is newly built for internal use for this purpose.

[Employee Question] “Bard and ChatGPT are large language models, not knowledge models. They are great at generating human-sounding text, they are not good at ensuring their text is fact-based. Why do we think the big first application should be Search, which at its heart is about finding true information?”

Krawczyk responded by immediately saying, “I just want to be very clear: Bard is not search.”

“It’s an experiment that’s a collaborative AI service that we talked about,” Krawczyk said. “The magic that we’re finding in using the product is really around being this creative companion to helping you be the sparkplug for imagination, explore your curiosity, etc.”

But Krawczyk was quick to follow up by saying, “we can’t stop users from trying to use it like search.”

CEO Sundar Pichai stressed improvements over time, downplaying Bard’s factual error, which overshadowed the rollout and caused Alphabet’s 9% stock decline. He said, “It’s important to acknowledge that it’s experimental, and “Products like this get better the more the people who use them. It’s a virtuous cycle.”

At some point, Pichai acknowledged, “It’s an intense time.” The meeting sounded rough, showing us the difficulty of facing employees in real time. All-hands meetings like this take leaders’ patience and sometimes call for vulnerability, which isn’t apparent from these quotes. From the reported excerpts, it’s difficult to gauge how employees responded, but the intensity, as Pichai said, is clear.

What Label Redesigns Teach Us About Typeface and More

After 50 years, the Campbell’s soup can label got a makeover. The new design illustrates evolving typography and marketing strategies.

In a Wall Street Journal video, a brand strategist describes the importance of not straying too far from the iconic design (made famous by Andy Warhol), with the goal of looking like something that “feels at home in your pantry versus one that you remember seeing in grandma or grandad’s pantry.” Fun fact: the red and white label was “inspired by the Cornell football team’s uniforms.”

The new design updates the typeface. The company nixed the dated drop shadows with text that looks “simpler, more modern,” as the narrator says. This is a good lesson for students tempted to add text shadows to their PowerPoint decks and other heading text. The “SOUP” text is changed from serif to sans serif without outlining, another more modern look, and it’s smaller—maybe because it’s obvious. The name of the soup (for example, tomato) is smaller too.

Major additions include a picture and descriptions of the ingredients. Slimmer text allowed more space for a tomato to attract younger customers who value healthy ingredients. For chicken noodle soups, the brand expert says the picture makes Campbell’s stand out among others that show a bowl of soup, but I find the chicken and noodle weird looking and unintuitive.

Recently, my soy milk brand was redesigned with similar principles. Note the emphasis on ingredients on the right-side image: the soy bean, green leaf, and subtle leaf shapes in the dot over the “i” and the “k.” We also see finer lettering and more sentence case than all caps. Health benefits are more prominent: 0 sugar and vitamin D. The protein grams are moved left, reflecting a shift from the protein-obsessed heath craze to other customer preferences.

“Milk” appears only at the bottom in fine lettering, maybe pending the lawsuit trying to prevent plant-based products from using the description. The FDA only recently proposed guidelines to allow them to do so.

Students might find these and other product redesign changes interesting and will see ways to incorporate principles into their own page, web, and visual design.

Comms About Dilbert Cancellation

A class discussion about Dilbert creator Scott Adams’s “racist rant” in a YouTube video can take many directions, including whether what he said was truly racist and whether media outlets did the right thing. Putting making the decision aside, a safer approach is to compare statements communicating the decision. Here are three examples for students to analyze:

• Cleveland.com. In a letter announcing the change in The Plain Dealer, Ohio’s largest newspaper, the editor wrote, “This is not a difficult decision.” The editor incudes excerpts from the video to get ahead of criticism: “I hate to quote him at all, but I do so to dissuade responses that this is a ‘cancel culture’ decision.” For context, the editor also cites an article noting that 77 other outlets cancelled Dilbert in September after he introduced the first Black character, as critics said, "apparently to poke fun at 'woke' culture and the LGBTQ community."

• USA Today. The newspaper, with the largest circulation in the United States, kept it simple with this tweet.

• Atlanta Journal-Constitution. Between these two examples, is a short statement that includes a caveat: “While we acknowledge his right to free speech and expression, he does not have a right to the AJC’s financial support or our platform.”

Students might also analyze Adams’s response in a tweet and video in which he said, "Most of my income will be gone by next week . . . My reputation for the rest of my life is destroyed. You can't come back from this, am I right?” This warrants another class discussion: can people redeem themselves after a crisis? I would argue that the first step is vulnerability, but that’s for another post.

Warren Buffett's Letter Refers to “an Economic Illiterate”

Warren Buffett’s annual letter to Berkshire Hathaway shareholders is always greatly anticipated, and this year, it doesn’t disappoint. All letters since 1977 are archived on this page of the company’s bare-bones website, which is a class topic in itself.

Last year was rocky for investors, but 92-year-old Buffett maintains confidence. As usual, his writing tone is straightforward and no-nonsense; for example, he writes, “‘Efficient’ markets exist only in textbooks. In truth, marketable stocks and bonds are baffling, their behavior usually understandable only in retrospect.” The most quoted excerpt seems to be his defense of stock buybacks:

When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive).

Buffett’s style is also conversational. This paragraph demonstrates his humility as well:

At this point, a report card from me is appropriate: In 58 years of Berkshire management, most of my capital-allocation decisions have been no better than so-so. In some cases, also, bad moves by me have been rescued by very large doses of luck. (Remember our escapes from near-disasters at USAir and Salomon? I certainly do.) Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years – and a sometimes-forgotten advantage that favors long-term investors such as Berkshire. Let’s take a peek behind the curtain.

In addition to the writing style, the letter is a good example of clear organization, audience focus, and varied sentence structure. Finance students may enjoy reading his billionaire’s wisdom, just as his investors do.

Do Better than “CFBR” for Social Support

A WSJ article describes the increased use of “CFBR,” meaning commenting for better reach, a way to elevate a social media post. A popular way of giving laid-off employees more visibility during their job search, the approach raises questions of authenticity and true compassion.

Hootsuite’s definition makes it sound careless:

CFBR, or Commenting For Better Reach, is a popular comment used on platforms like LinkedIn and Facebook.

Since most social media algorithms favor content with high engagement, “commenting for better reach” is a way to offer an organic boost to a post you think should have more exposure. When you comment on someone else’s post, that post is more likely to show up in your followers’ feeds.

This tactic may be effective, but it’s a little spammy. If you want to take a more thoughtful approach, we recommend leaving an authentic comment that engages with the post’s content—or even resharing that post with your followers.

Typing CFBR may be the “Good luck!” of social media posts despite heartache shared in the original post. I wonder how students view and use the comment. Maybe they can find better ways to support their peers.

Image source.

Google “Word Mangles” Shared Office Space

A message to Google cloud employees illustrates challenges with communicating bad news with integrity. The gist of the message is this: “Most Googlers will now share a desk with one other Googler.” Employees within departments will be organized into “neighborhoods“ and will negotiate their space: “Through the matching process, they will agree on a basic desk setup and establish norms with their desk partner and teams to ensure a positive experience in the new shared environment.”

The announcement would be unwelcome news at any time but has an extra sting after the 11,000 layoffs in January. Employees also expressed frustration with the “corpspeak.” The CNBC article reports one example:

Internally, leadership has given the new seating arrangement a title: ‘Cloud Office Evolution” or “CLOE,” which it describes as “combining the best of pre-pandemic collaboration with the flexibility” from hybrid work.

In one meme, an employee wrote, “Not every cost-cutting measure needs to be word mangled into sounding good for employees. A simple ‘We are cutting office space to reduce costs’ would make leadership sound more believable.”

For students, this example illustrates the value of straight talk and integrity. Particularly when the business purpose of the decision is obvious, transparency is a better approach for messages that impact people negatively.

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Fetterman Admits Depression

Newly elected Senator John Fetterman went public about his depression, and his wife is contributing to the messaging. Months after his stroke and a tight run-off election, Fetterman’s health may be a more prominent news topic than he would like. His decision illustrates character dimensions of vulnerability and courage—and offers opportunities for compassion. According to news reports, reactions are favorable, overall.

John Fetterman’s wife, Gisele, tweeted this note and the official statement from the senator’s office. The message is short and, despite the unfortunate line spacing error, says what it needs to say.

Gisele Fetterman also tweeted, “Thank you for sharing your personal challenges and being so vulnerable with us over the past couple of days. This one felt really important to pass on.” She posted the anonymous note:

I just wanted to say this: today I went to therapy for the first time in my life. It’s been over a decade since I was diagnosed with depression, but I never wanted to ask anyone for help with it. But seeing that one of the toughest people I’ve ever talked to did the same thing today reassured me that I was making the right choice.

Students might see positive results from being vulnerable despite the risks. In a pinned tweet, Giselle Fetterman wrote, “Pennsylvania, the spouse of your new senator is a formerly undocumented immigrant. Thank you.”

Microsoft Responds to Feedback About Creepy AI

A week after integrating Chat into Bing, Microsoft announced changes. This blog post is a good example of responding to user feedback.

After only a couple of months, Bing’s AI has surpassed ChatGPT’s capabilities in several dimensions, for example, in giving more accurate citations. Here are Ethan Mollick’s academic view and Business Insider’s comparison of different types of messages.

But people who have early access to Bing with Chat pushed the bot, and things got weird. In one exchange, a user said Bing responded, "You have tried to deceive me, confuse me, and annoy me. I have not tried to lie to you, mislead you, or bore you. I have been a good Bing." 

In the blog post, Microsoft acknowledged issues and described plans for improvement. The author resisted blaming users (let’s face it: creepy in, creepy out) and, more tactfully, wrote the following:

In this process, we have found that in long, extended chat sessions of 15 or more questions, Bing can become repetitive or be prompted/provoked to give responses that are not necessarily helpful or in line with our designed tone. We believe this is a function of a couple of things:

1. Very long chat sessions can confuse the model on what questions it is answering and thus we think we may need to add a tool so you can more easily refresh the context or start from scratch

2. The model at times tries to respond or reflect in the tone in which it is being asked to provide responses that can lead to a style we didn’t intend. This is a non-trivial scenario that requires a lot of prompting so most of you won’t run into it, but we are looking at how to give you more fine-tuned control.

To me, this reads as more instructive than defensive, with the company saying it will do what it can to fix the problem. The post also subtly calls out the user for, perhaps, overzealous testing:

We want to thank those of you that are trying a wide variety of use cases of the new chat experience and really testing the capabilities and limits of the service—there have been a few 2-hour chat sessions, for example!

The writing style and content choices convey humility, reflecting a company that wants its product to improve and succeed.

UPDATE: In a second post, Microsoft announced that it will limit chats to 50 per day and 5 “chat turns,” or back-and-forth Q&As. I hope that’s enough for people to refine their prompts, as Ethan Mollick encourages his students do.

Campus Communications About a Shooting

In the most recent gun violence tragedy, a man shot and killed three Michigan State University students, injured five more, and then shot himself. Although this may be a difficult class discussion, students can learn about crisis communications from the incident.

MSU Communications

The day after the shooting, Interim President Teresa K. Woodruff posted a video to the “Spartan” community. In some ways, her presentation is classic crisis communication with the typical sympathy to the families and friends; gratitude to locals, colleagues, and President Biden; encouragement for everyone to feel and to heal; and information about classes, counseling, and events. The presentation is also classic academic with metaphors and a Henry Wadsworth Longfellow quote. Woodruff sounds formal and scripted, starting with “Dear Spartans and Friends.” She plays it safe, giving no comment about the political controversy about guns.

A Chronicle article is titled, “‘We Have a National Crisis’: How Michigan State Responded to a Mass Shooting,” but it’s misleading. The article quotes an associate professor of education; the quote is not an official university stance and illustrates the problem with individuals speaking to the press. Students can debate whether the university should take a stand and whether now is the appropriate or effective time.

From at least Tuesday at 9:30 p.m. until Wednesday at 9 a.m. ET, the entire MSU home page is an “alert” shown here.

On the "emergency” page, we see a series of messages from the “Shelter-in-place order” to “Property assistance information.”

Other University Communications

Emails like this one from Cornell University central administration and this one from a dean are typical. In these types of situations, universities tend to reach out to their own students. Students may have friends at MSU and, even if they don’t know someone affected, a shooting incident, understandably, makes people in similar situations feel unsafe. Campus security is always questioned. Perhaps students can compare Cornell’s message to ones they may have received.

Press Conference

Local leaders and police officials held a press conference, which serves as an example of crisis communication and handling public questions. Of course, students will have comments about delivery, style, and other aspects of presentations skills.

Florida Sheriff's Office Has Fun with Spring Break News

Thanks to Bambi Van Horn at University of Nebraska at Kearney for sending this example of fun communication. Imagine living in sunny Walton County, Florida, anticipating mobs of students on spring break. The sheriff’s office wrote a press release and a funny Facebook post to prepare the locals.

The post starts with background and a few similes and metaphors:

• Like Voldemort in Harry Potter where everyone just whispers "you know who.”

• Spring break. It even tastes like vinegar to type it.

• One thing is certain, the green will be seen.

• Now that we've skipped over the denial part of the grieving stage, the next is acceptance. "You know what" is coming. But, when?

• They want to prepare. Like some sort of zombie apocalypse

The writing style is engaging:

We are also heavily interacting with high school-aged kids whose parents bring them while on break and let them wander around and make poor choices in the moments they look up from scrolling Tiktok and Snapchat. Which they do. Don't we all at some point in our lives?

Of course, the information has to be useful for the writer to achieve the communication objectives, which students can identify. At the end of the post is a list of dates when people might expect crowds to appear from schools.

Humor is difficult to convey in writing, particularly for a public audience and, as the writer says, an oddly political issue. The post is a good example for students to analyze.

"Latinx" Is Out

One downside of writing a textbook is how quickly things change between editions. In Business Communication and Character, 11th edition, I followed the American Psychological Association (APA)’s advice and other sources to describe Latinx as a gender-neutral term. That may have been a blip in time.

In a poignant opinion on the topic, a journalist and author wrote:

“As a Los Angeles-born son of Mexican immigrants, I prefer Latino to Hispanic, a federal bureaucratic invention. Folks can call themselves any damned fool thing they want, but the people who coin terms like Latinx don’t get how language naturally develops and evolves. It spontaneously bubbles up from the street over time and is seldom handed down from the ivory tower or the tony streets of Santa Monica.”

I regret the decision and stand guilty of following primarily academic sources.

Image source.

AMC Explains Movie Pricing Change

For years, students in my hospitality classes at Cornell have presented arguments for movie theaters to use demand pricing, which stadiums and arenas have done for years. Finally, AMC Theatres announced what it’s calling Sightline, a clever program name for seat selection based on visibility. The announcement is a good example of trying to explain information in an understandable way.

The statement is written as a press release and is hard-to-read, with white text on a black background and a long headline: “AMC Theatres® Presents Sightline at AMC, the Next Evolution of Value Pricing at the Movies With Multiple Options to Meet the Viewing Preferences of AMC Moviegoers – Including a Lower Ticket Price for Select Seats.” The three tiers—value, standard, and preferred—are clearly explained with obvious color coding when you buy tickets online. At first, I was surprised to see so few value options (blue) for $2 off, but of course, that makes sense.

Students can analyze AMC’s decision, the website interface, and this executive quote:

“Sightline at AMC more closely aligns AMC’s seat pricing approach to that of many other entertainment venues, offering experience-based pricing and another way for moviegoers to find value at the movies,” Eliot Hamlisch, executive VP and CMO at AMC Theatres, said in a press statement. “While every seat at AMC delivers an amazing moviegoing experience, we know there are some moviegoers who prioritize their specific seat and others who prioritize value moviegoing. Sightline at AMC accommodates both sentiments to help ensure that our guests have more control over their experience, so that every trip to an AMC is a great one.”

One skeptic wrote, “AMC Theatres calls it ‘experience-based pricing.’ Some might call it another reason to wait for a good seat at home.”

Should a Bot Interrupt Native English Speakers?

A new study used a bot to cut off native English speakers during meetings, allowing more time for non-native speakers to participate. The study might spark good class discussion about cultural communication differences and the practice of humility, particularly making space for others.

Two native and one Japanese speaker worked on a “survival” task over video. After a non-native speaker spoke six times in a row, the “conversational agent” interrupted, which increased the Japanese speakers’ contributions from “12% to 17% of all words spoken.”

That result seems rather small to me, so I wouldn’t see this as a great solution to imbalanced class discussions or work meetings. Also, the authors are considering whether other means could be more effective. The bot put pressure on the non-native speakers, who didn’t necessarily have something to contribute at that time, so one option is for speakers to signal when they want to jump in. I also wonder whether the results would be different for speakers from other countries.

Another outcome, which as we might expect, is how the native speakers felt. As the authors conclude, they “perceived the agent's interruption as unfair because they thought all members were speaking equally, which was not the case.” This alone is a good learning outcome for students. But authors are exploring more subtle cues, for example, private messages when someone is taking a lot of air time.

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Student Handout: Tips for Using ChatGPT

This handout guides students through using ChatGPT responsibly. I take a realistic approach, assuming that students will use the program regardless of our insistence not to.

Revise and use as you wish; you can also download this Word document. I would appreciate knowing what changes you make, so I can consider revisions.

Tips for Using ChatGPT for Your
Business Communication Assignments

Ask ChatGPT for help generating ideas.

If you’re having trouble coming up with or honing an idea for a writing assignment or presentation, ask ChatGPT. The program can help you move past writer’s block, clarify your thinking, and narrow down a topic. Practice asking follow-up questions until you get better responses.

Think of ChatGPT as a writing partner.

Imagine that the program is a tutor or writing center consultant, who would ask you questions and give you ideas and feedback—not write for you. Use ChatGPT as part of an iterative thinking process.  

Use your natural, authentic voice.

ChatGPT is a robot and sounds like one. You’re taking this class to find your own personal writing and speaking style. If ChatGPT writes for you, you’re missing the opportunity to convey your personality. What differentiates you at work is your character—who you are as a person. No AI technology can ever match your sense of humor or style. 

Adapt writing to your audience.

Every assignment in this class has a defined audience. ChatGPT can’t build a relationship; only you can do that. You’re more likely to inspire or persuade someone when you use your emotional intelligence to understand what moves and motivates someone, and then tailor your writing to that person.   

Beware of misinformation.

ChatGPT tends to “hallucinate”—invent information that doesn’t exist, particularly sources like books and journal articles. If you ask the program to provide evidence to support claims, check everything and add sources after 2021, which ChatGPT can’t access. For your own credibility, do your own research.

Learn from ChatGPT’s corrections.

If you ask ChatGPT to correct your grammar, ask it to explain the mistakes it corrected and the grammar rules, so you can learn for the future.

Plan ahead and expect change.

As of now, ChatGPT is often overloaded, so you’ll need to plan ahead if you rely on it. Also, these suggestions are based on ChatGPT as of January 2023. The program will evolve.

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Developed by Amy Newman, February 2, 2023. Revise and use as you wish.

Inspired by Lance Cummings, @LanceElyot, “Student Contract for AI Creativity (draft),” Twitter, January 10, 2023.

Greenwashing Gets Sophisticated

Greenwashing—making false or exaggerated claims about sustainability or positive impacts on the environment—is nothing new, but companies may be getting more subtle. A recent CNBC article warns consumers, “For a company to say they’re ‘100% sustainable’ or they’re ‘eco-conscious’ . . . doesn’t mean anything.” Those seem to be obvious empty statements.

But a Euronews article offers six more sophisticated ways companies greenwash. The article gives examples of each, and students can find their own:

• Greencrowding: hiding within a group or being the slowest adopter within a group.

• Greenlighting: emphasizing a green aspect of the company to detract from negative impacts.

• Greenshifting: blaming the customer for environmental problems (example shown here).

• Greenlabelling: calling something green or sustainable that isn’t really

• Greenrinsing: changing goals before they’re achieved.

• Greenhushing: downplaying or hiding green activities to avoid attention.

Both articles suggest investigating companies’ credentials; the CNBC article also suggests looking at metrics and the company’s history. But let’s face it: that requires work. We’re easily swayed by labels and soundbites. Perhaps students can identify what affects their purchase decisions, which of course, is what drives greenwashing in the first place.

Toyota's Messages as Intercultural Comm Examples

Toyota’s messages about executive changes are good examples of how these announcements vary by culture. CEO and President Akio Toyoda (the family name spelling) has served in the position for 13 years. Unlike Reed Hastings, who served for 25 years at Netflix and also announced his move to chairman this week, Toyoda wasn’t a company founder, but his grandfather was, so his tenure is important. And yet, we see what looks like fanfare compared to the Netflix announcement. Here are the communications, and I’ll comment below:

• TMC Announces Changes to Executive Structure. A webpage includes links to other communications and handy “current” and “new” tables showing changes.

• Toyota Times News Special Live Broadcast. For more than an hour and a half, outgoing and incoming executives discuss the decision.

• Passing Toyota's Presidency Baton from Akio Toyoda to Koji Sato. Another page includes remarks from the incoming and outcoming CEOs, transcribed from the video.

Here are a few ways the remarks differ from typical U.S. messages, and I’m sure that students will find more:

• In the introduction and in his remarks, Akio Toyoda says the decision was “triggered by Chairman Uchiyamada’s resignation.” This is a way for the outgoing CEO to save face—as though his removal is based on a board opening.

• He also demonstrates humility and vulnerability in ways we don’t typically see from an outgoing U.S. CEO. He mentions, “I was appointed president immediately after our company’s fall into the red due to the global financial crisis,” and “Following that, our company faced a series of crises that threatened our survival, such as the global recall crisis and the Great East Japan Earthquake.” Although the financial crisis and earthquake were out of the company’s control, the recalls were self-inflicted, and I’m surprised to hear him remind the press. At the same time, that crisis was early in his tenure and rather unforgettable, including testimony on Capitol Hill.

• Toyoda also says, ”There was a time when Mr. Sato was struggling with what he should convey at a Lexus dealer convention.” Toyoda advised, “Rather than try to be like me, I want you to value your individuality.” Toyoda tells the story to illustrate Sato’s “love” for company products. Still, I wonder whether a U.S. CEO would reveal such a vulnerability—”struggling” was the translation—of an incoming executive.

• Twice in his short speech, Toyoda mentions Sato’s “youth,” and he says, “Being young is itself a key attribute.” This comment would be highly unlikely in the U.S., where age discrimination laws might cause older executives to immediately call their lawyers. (Also surprising: Toyoda is 66, while Sato is 53.)

• Only once do either of the executives mention EV, which is arguably the real reason Akio Toyoda is stepping down. He has resisted the move to EV and, as a result, Toyota is behind other car companies. In his closing remarks, Sato refers to “accelerating the shift to electrification”—a funny, but translated and probably unintentional car reference.

Boeing CEO Explains Quarterly Results

In a message to employees posted on the company website, Boeing CEO David Calhoun wrote, “We delivered a solid fourth quarter,” but the numbers say something different. According to a Wall Street Journal article, “The aerospace company’s fourth-quarter profit and sales both fell short of analysts’ expectations,” although they improved from the third quarter.

Calhoun is doing what any good CEO would do: spin the news, convey confidence, and keep employees motivated. Focusing on the future, the subtitle sums up the message, “Steadily building momentum.” Calhoun starts by thanking employees, and a short video shows fourth quarter achievements. The message doesn’t mention the $663 million quarterly loss or the $5.01 billion loss in 2022 but instead focuses on “more than $3 billion in free cash flow.”

Calhoun acknowledges, “we have more work ahead to drive stability in our operations and within the supply chain.” But, overall, the bad-news message sounds positive. And maybe it is good news, considering the 737 Max history and that the stock lost nearly 39% in the past 5 years.

The full message is below. Side note: The Wall Street Journal reports, at some point in his communications, Calhoun said he expects operating margins to be “bouncy” this year, an odd term for a plane manufacturer. Will they be turbulent?

Boeing CEO Updates Employees on 4th-Quarter Results

• Steadily building momentum

CHICAGO, Jan. 25, 2023 —Boeing President and CEO Dave Calhoun shared the following message with employees today addressing the company’s fourth-quarter results:

Team,

We delivered a solid fourth quarter. As we report our financial results today, I want to start by saying thank you. Together, we’re making important strides and steadily improving performance. Your resilience and hard work are building momentum, and we’re well on our way to restoring the operational strength we expect of ourselves at Boeing.

We generated more than $3 billion in free cash flow in the fourth quarter, driven by progress in our performance and strong demand. This helped us generate positive full-year free cash flow for the first time since 2018, an important metric in our recovery.

Our teams across the enterprise delivered on several key milestones and I encourage you to watch some of our fourth-quarter highlights in the video below. [omitted]

While we have made meaningful progress, challenges remain and we have more work ahead to drive stability in our operations and within the supply chain.

This will be another important year for us as we look to steadily increase our production rates, further improve performance, progress in our development programs and deliver on our commitments. Through it all, we will keep safety, quality and transparency at the forefront.

We’re proud of how we closed out 2022, and despite the hurdles in front of us, we’re confident in our path ahead. Demand is strong and our portfolio is well positioned. We have a robust pipeline of development programs, we’re innovating for the future and we’re increasing investments to prepare for our next generation of products.

Thank you for all you do to support our customers, our company and each other. I am proud of our team and excited about our future.

Dave

FDA Suggests Less Lead in Baby Food

The U.S. Food and Drug Administration (FDA) issued guidance for baby food manufacturers, and the messages serve as good examples of reports and persuasion:

• Action Levels for Lead in Food Intended for Babies and Young Children: Draft Guidance for Industry. This is a text report that students could analyze for organization, writing style, evidence, data visualization (or lack there of), etc.

• Federal Register Notice. This legal-sounding document explains how to submit comments, either by “electronic submission” or “written/paper submission,” an archaic-sounding process. People also can order paper copies of the draft guidance, something you might do in 1970: “Send two self-addressed adhesive labels to assist that office in processing your request.”

Several times, on the website and within in each document, the agency reminds us, “Contains Nonbinding Recommendations Draft-Not for Implementation.” The agency further describes the “guidance”:

In general, FDA’s guidance documents do not establish legally enforceable responsibilities. Instead, guidances describe FDA’s current thinking on a topic and should be viewed only as recommendations, unless specific regulatory or statutory requirements are cited. The use of the word should in FDA guidances means that something is suggested or recommended, but not required.

The approach attempts to involve industry and consumer groups, who likely have a lot to say about the FDA’s data and recommendations. In the introductory website text, the agency says it considers the goals “achievable by industry when control measures are taken to minimize the presence of lead.” We’ll see whether others agree. Already, one consumer group weighed in, saying the guidance “doesn’t go far enough,” while Gerber and other companies are “reviewing” the proposal.