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Organizational Responses to 10 corporate responses from exemplary to abysmal. SPECIAL REPORT: Brought to you by: Crisis LEADERSHIP BOARD

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Page 1: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

Organizational Responses to

10 corporate responses from exemplary to abysmal.

SPECIAL REPORT:

Brought to you by:

CrisisLEADERSHIP BOARD

Page 2: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

How communicators handle crisis is the ultimate test of leadership. Whether it’s a public health scare or a brand reputation crisis, as a communicator you need to be prepared for a multitude of challenges. And oftentimes, access to industry peers for insights and guidance is critical to your success.

Join your peers and be part of Ragan’s Crisis Leadership Board. Members enjoy the following benefits:

• Subscription to the Crisis Communications Daily newsletter

• Online portal providing reports, content and discussions

• Online Idea Exchange for members only

• All-access ticket to Ragan’s annual Crisis Management Conference

• Twice-monthly members-only conference call

• Twice-yearly member-only meetings

Collaborate with your colleagues and get the latest insights on crisis management best practices and how to prepare for disruptive events.

Apply for Membership Todayhttps://www.ragan.com/crisis-leadership-board/

Or contact us at:800.878.5331

[email protected]

*Membership is limited to those in a communications, marketing or human resources role. Member title must be senior manager or above.

Be Prepared.

CrisisLEADERSHIP BOARD

The resources you need before, during and post-crisis.

• Best practices

• Idea sharing

• Training

Page 3: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

Copyright 2020 Ragan Communications

SPECIAL REPORT: Organizational Responses to Black Lives Matter

Table of Contents:Introduction 1

Ben & Jerry’s 2

IBM 4

Google 5

Sephora 6

Quaker Oats/PepsiCo 7

Adidas 8

Starbucks 9

Amazon 10

Facebook 11

Crossfit 13

The Ragan TeamOwner: Mark Ragan

CEO: Diane Schwartz, [email protected]

COO: Mandy Zaransky-Hurst, [email protected]

CMO: Amy Jefferies, [email protected]

CFO: Brian Gilbert, [email protected]

VP, Editorial: Roula Amire, [email protected]

Editor, Ragan.com: Robby Brumberg, [email protected]

Editor, PRDaily.com: Ted Kitterman, [email protected]

Senior Web Developer: Vladimir Prvulovic, [email protected]

Customer Service & Sales: Shallon Blackburn, [email protected], 800-878-5331

Copyright 2020 Ragan Communications

Page 4: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

1 Copyright 2020 Ragan Communications

For activists and advocates on diversity, equity and inclusion, words are no longer enough.

With a renewed conversation around race and structural inequality in the wake of the death of George Floyd in Minneapolis, many organizations have tried to add their voice to the chorus of voices calling for change. Speaking up has been touted as the only option for businesses in a media environment where silence is seen as a failure to act.

Many organizations have found their voice, on their social media channels, with messages in media outlets and statements in online newsrooms. However, audiences are well within their rights to be skeptical.

The topic of diversity, equity and inclusion isn’t new, and it was only a few months ago that some organizations were downplaying its importance in the face of concerns about COVID-19. Before that, some human resource officers said that talk of racism in the workplace was “noise.”

So, what messages are standing out? Here are 10 noteworthy responses ranked from best to worst:

Introduction

Page 5: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

2 Copyright 2020 Ragan Communications

The ice cream company has always been outspoken around political and cultural issues and its strong statement in support of the Black Lives Matter movement stands out.

The statement, released on June 2, used the words “white supremacy” and voices support for legislative action.

It wrote in a post on its website:

All of us at Ben & Jerry’s are outraged about the murder of another Black person by Minneapolis police officers last week and the continued violent response by police against protestors. We have to speak out. We have to stand together with the victims of murder, marginalization, and repres-sion because of their skin color, and with those who seek justice through protests across our country. We have to say his name: George Floyd.

Ben & Jerry’s history of speaking up was part of what allowed the company to have a strong and noteworthy stance here.

Delish wrote:

This recent post was different from the posts of other brands in many ways, largely because it was not even close to their first foray into political issues. The company had affirmed its support of the Black Lives Matter movement in 2016 and has posted many other articles including one detailing its support of reparations for Black Americans, one explaining systemic racism, and another supporting front end criminal justice reform. They also released a Justice Remix’d flavor last year to bring awareness to criminal justice reform and structural racism. This history and the power of the most recent statement proved to many that Ben & Jerry’s words were genuine.

Ben & Jerry’s Ice Cream

01

Page 6: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

3 Copyright 2020 Ragan Communications

The stance won kudos on social media as well:

Takeaway: Stand up for your beliefs, even when it isn’t popular to do so, and audiences will be more receptive when taking a stand is paramount.

Page 7: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

4 Copyright 2020 Ragan Communications

When thinking through your product offering and the impact it might have, it’s important to think beyond branding. That’s what led IBM, followed by other tech companies, to announce it would stop offering facial recognition technology, which could be used to target minorities.

However, unlike some companies that announced a moratorium on facial recognition tech, IBM made a forceful statement and called on lawmakers to introduce regulations on the technology to prevent it being abused by law enforcement.

The statement came in a June 8 letter to Congress that the company published on its website.

The Verge wrote:

IBM will no longer offer general purpose facial recognition or analysis software, IBM CEO Arvind Krishna said in a letter to Congress today. The company will also no longer develop or research the technology, IBM tells The Verge. Krishna addressed the letter to Sens. Cory Booker (D-NJ) and Kamala Harris (D-CA) and Reps. Karen Bass (D-CA), Hakeem Jeffries (D-NY), and Jerrold Nadler (D-NY).

“IBM firmly opposes and will not condone uses of any [facial recognition] technology, including facial recognition technology offered by other vendors, for mass surveillance, racial profiling, violations of basic human rights and freedoms, or any purpose which is not consistent with our values and Principles of Trust and Transparency,” Krishna said in the letter. “We believe now is the time to begin a national dialogue on whether and how facial recognition technology should be employed by domestic law enforcement agencies.”

Takeaway: Think about more than the optics of your brand and products. The impact your prod-ucts have on the world are just as important and deserve scrutiny.

02IBM

Page 8: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

5 Copyright 2020 Ragan Communications

The tech company said it would make big investments in DE&I with a commitment to improve leadership representation for unrepresented groups to 30% by 2025. They also promised to work on hiring and retaining diverse employees with other initiatives.

One significant difference was how Google was thoughtful about creating a more inclusive en-vironment, ending practices like “badge-checking” coworkers and other interactions that could lead to microaggressions or racial profiling.

CEO Sundar Pichai wrote in a note:

As one example, we’ve had a security practice of Googlers watching for “tailgaters” in order to reduce instances of unauthorized visitors in offices. We have realized this process is suscep-tible to bias. So, over the past year, our Global Security and Resilience team partnering with a cross-functional working group, conducted extensive research, listened to Black Googlers’ experiences, and developed and tested new security procedures to ensure we could maintain the safety and security of the Google community without relying on this type of enforcement. Now, as we prepare to return to the office, we will end the practice of Googlers badge-checking each other and rely on our already robust security infrastructure.

The move is a great example of how listening to your employees and examining all aspects of your culture that might unintentionally do more harm than good can lead to a more welcoming workplace.

Takeaway: Listen to your employees to guide important culture change and create a more welcoming workplace.

Google

03

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SPECIAL REPORT: Organizational Responses to Black Lives Matter

6 Copyright 2020 Ragan Communications

The beauty products retailer was the first to sign the “15 Percent Pledge,” an initiative where stores promise to stock their shelves with products from black-owned businesses. The move is an example of what active listening and joining initiatives already in motion can look like.

Glamour reported:

“We were inspired to make the 15 Percent Pledge because we believe it’s the right thing to do, for our clients, our industry, and for our community,” said Artemis Patrick, Sephora’s chief merchandising officer, in a statement. “Ultimately, this commitment is about more than the prestige products on our shelves; it starts with a long-term plan diversifying our supply chain and building a system that creates a better platform for Black-owned brands to grow, while ensuring Black voices help shape our industry.”

Others can join the 15 Percent Pledge and promise to offer at least 15% of their products from black-owned businesses.

Takeaway: Don’t try to reinvent the wheel. Find initiatives that are already in progress and lend your brand power to help amplify those messages.

Sephora

04

Page 10: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

7 Copyright 2020 Ragan Communications

It’s been important for companies to also take a look at the product lines they offer when trying to understand their impact on culture and systemic racism. Upon reflection, Quaker Oats, which is owned by PepsiCo, decided it had to rebrand its Aunt Jemima syrup and pancake products.

NBC News reported:

“We recognize Aunt Jemima’s origins are based on a racial stereotype,” Kristin Kroepfl, vice president and chief marketing officer of Quaker Foods North America, said in a news release. “As we work to make progress toward racial equality through several initiatives, we also must take a hard look at our portfolio of brands and ensure they reflect our values and meet our consumers’ expectations.”

However, the company did not address the slow pace of change when it came to addressing the racist branding—a problem the company had identified before George Floyd’s death.

The New York Times reported:

PepsiCo said in a statement Wednesday that there were “several workstreams” reviewing the brand in 2016 and that “due to personnel changes and shifting priorities, the workstream was eventually put on hold.”

Since then, Quaker Oats has not given Aunt Jemima significant promotion. Last year, Quaker Oats spent $245,000 marketing the brand, compared with $6.2 million it spent on Life Cereal, excluding social media, according to the research firm Kantar.

A stronger statement would have offered transparency around previous inaction—complicated though it might be—and then look to the future.

Takeaway: Be honest about how your organization has fallen short in the past. Don’t provide excuses for why change hasn’t happened sooner, but own it as a mistake and promise a brighter future.

Quaker Oats/PepsiCo

05

Page 11: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

8 Copyright 2020 Ragan Communications

The Germany-headquartered sportswear apparel brand had a bumpy start with its messaging as it tried to embrace calls for change and acknowledge its failure to address DE&I concerns in the past.

In a series of tweets, the brand admitted it hadn’t done enough in the past to support minorities in the workplace and beyond:

However, when employees wrote an open letter to the company’s leaders with specific requests, they were initially rebuffed. The internal debate led to a leadership change with the former head of Human Resources, who once dismissed the topic of racism as “noise,” to depart.

The series of events embodies the imperative, which some have called “getting your house in order,” a requirement for brands that are going to be outspoken about issues like DE&I to do more than talk big game.

Takeaway: You must address statements or actions that go against your promises around DE&I. If the numbers—and your past statements—show your culture isn’t a welcoming place for diverse employees, think about how you can make systemic and structural changes.

Adidas

06

Page 12: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

9 Copyright 2020 Ragan Communications

Starbucks was one of the brands that was outspoken about supporting the BLM movement, but then stumbled when it came time to take real action. The company prohibited employees from wearing pro-BLM apparel while at work, a decision it later reversed.

CNN reported:

Although the company publicly supports “Black Lives Matter” on its social media channels and in a press release, an internal memo to employees obtained by BuzzFeed News earlier this week explains that Starbucks wouldn›t let baristas do the same. But on Friday, Starbucks reversed its stance, saying they can wear a «Black Lives Matter» T-shirt or pin until new branded shirts are delivered to 200,000 employees that includes the phrase.

“This movement is a catalyst for change, and right now, it’s telling us a lot of things need to be addressed so we can make space to heal,” Starbucks said in a publicly shared letter to employees announcing the new T-shirt design.

The company has struggled with its record on race and the police an employee called the cops on a couple of Black patrons in 2018. The chain closed all of its U.S. stores for a day of racial bias training.

Takeaway: Beware of old habits around DE&I messaging. Organizations that try to hide behind policies from past years to avoid addressing racial equality in their communities won’t be able to meet the cultural moment.

07Starbucks

Page 13: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

10 Copyright 2020 Ragan Communications

Jeff Bezos has signaled on his social media channels about the importance of the Black Lives Matter movement.

On his Instagram he shared a message from an irate customer about Amazon’s pro-BLM stance, quipping that this was a kind of customers he was “happy to lose.” Amazon also encouraged employees to use their day in the office for Juneteenth for self-reflection and education around race.

However, some have argued that Amazon doesn’t back up its bold statements particularly when it comes to how it treats its employees.

Vox wrote:

Many have called out the discrepancy between a company’s policies and treatment of workers compared to the public statements delivered during a time of crisis. For example, customers found it hypocritical how Amazon has a reported history of underpaying and overworking warehouse employees in grueling conditions, especially during the coronavirus. (Eighty-five percent of Amazon’s black workforce hold unskilled jobs, which includes warehouse workers, and the company has only one black senior-level employee.) Amazon CEO Jeff Bezos did not disclose whether he would be making any donations.

Takeaway: How you treat and engage employees is a huge part of your corporate reputation, and storytelling and PR spin won’t make up for policies that fail to address employee safety.

Amazon

08

Page 14: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

11 Copyright 2020 Ragan Communications

Facebook’s top chief Mark Zukerberg took to his platform to share a message in support of Black Lives Matter, and tried to address some of the criticism that has been pointed at the company and how it has handled accusations of hate speech, harassment and more.

He wrote:

As we continue to process this difficult moment, I want to acknowledge the real pain expressed by members of our community. I also want to acknowledge that the decision I made last week has left many of you angry, disappointed and hurt. So I am especially grateful that, despite your heartfelt disagreement, you remain focused on taking positive steps to move forward. That can’t be easy, so I just want to say I hear you and I’m grateful.

I believe our platforms can play a positive role in helping to heal the divisions in our society, and I’m committed to making sure our work pulls in this direction. To all of you who have already worked tirelessly on ideas to improve, I thank you. You’re making a difference, and together we’ll make a difference. And while we will continue to stand for giving everyone a voice and erring on the side of free expression in these difficult decisions -- even when it’s speech we strongly and viscerally disagree with -- I’m committed to making sure we also fight for voter engagement and racial justice too.

However, some say that Facebook’s actions as a company have actively undermined the cause, particularly when it comes to its inaction to combat misinformation.

The New York Times wrote:

On Facebook, for example, the most popular post on the day of Mr. Zuckerberg’s Black Lives Matter pronouncement was an 18-minute video posted by the right-wing activist Candace Owens. In the video, Ms. Owens, who is black, railed against the protests, calling the idea of racially biased policing a “fake narrative” and deriding Mr. Floyd as a “horrible human being.” Her monologue, which was shared by right-wing media outlets — and which several people told me they had seen because Facebook’s algorithm recommended it to them — racked up nearly 100 million views.

Ms. Owens is a serial offender, known for spreading misinformation and stirring up partisan ran-cor. (Her Twitter account was suspended this year after she encouraged her followers to violate stay-at-home orders, and Facebook has applied fact-checking labels to several of her posts.) But

09Facebook

Page 15: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

12 Copyright 2020 Ragan Communications

she can still insult the victims of police killings with impunity to her nearly four million followers on Facebook.

Facebook has also been criticized for its inability to keep and promote Black workers. The com-pany made very little progress in improving D&I numbers for its last report in 2019.

Takeaway: Facebook is an example of good intentions without a lot of success to show for it. For companies looking to address DE&I, outcomes must be prioritized and efforts that make a lot of noise without changing that status quo should not be touted as meaningful investments.

Page 16: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

SPECIAL REPORT: Organizational Responses to Black Lives Matter

13 Copyright 2020 Ragan Communications

The owner of the gyms made one of the worst statements in the wake of the murder of George Floyd, and after significant backlash he stepped down from his leadership role.

The New York Times reported:

Mr. Glassman posted a tweet that made light of both the coronavirus pandemic and the killing of George Floyd in police custody, and last weekend spoke belligerently to CrossFit gym owners about race and racism in a remarkable Zoom call that was leaked to reporters.

“We’re not mourning for George Floyd, I don’t think me or any of my staff are,” said Mr. Glassman on the Zoom call, according to a recording of the call provided to The New York Times.

The tone-deaf, offensive approach was lambasted on social media and by members of the CrossFit community, gyms joined a list to stop using the CrossFit brand name, who were disappointed in Glassman’s statement.

10CrossFit

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SPECIAL REPORT: Organizational Responses to Black Lives Matter

14 Copyright 2020 Ragan Communications

The resulting chaos forced Glassman to step aside and shows that beyond the moral imperatives of a moment, leaders must consider the many stakeholders of their organization who could be affected by their words.

Takeaway: In our diverse, global and increasingly more transparent society, a lack of empathy will quickly ruin reputational goodwill you might have built up.

Page 18: Brought to you by: Crisis · 2020. 9. 17. · Adidas 8 Starbucks9 Amazon 10 Facebook 11 Crossfit 13 The Ragan Team Owner: Mark Ragan CEO: Diane Schwartz, DianeS@ragan.com COO: Mandy

About UsFor more than five decades, Lawrence Ragan Communications, Inc., has been a leader in training for professionals in corporate communications, public relations, social media and management. Ever since the launch of “The Ragan Report” in 1970, Ragan has provided communicators and executives with timely, practical and relevant information that few others can match. Ragan is rooted in helping the communications professional advance in their careers while also improving the voice of the organizations they serve. The Ragan brand includes highly curated live and virtual events, three leadership Councils, multiple websites, an awards division, a consulting arm and targeted newsletters. Ragan live events draw more than 3,000 professionals annually and provide attendees with access to leading communicators, best practices and rich networking opportunities.

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Ragan’s Crisis Leadership Board is the resource you need before, during and post-crisis. As a Board member, you have access to an online members-only portal, all-access pass to the annual Crisis Management Conference, subscription to the Crisis Communications Daily, access to research, data, case studies, checklists, tipsheets, articles and other resources, plus a peer to peer discussion board to interact with other members. You and your team will also have unlimited use of online training via webinars and virtual conferences on crisis management topics.

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