WHEN COMPANIES “MESS UP” HOW DO THEY “SQUARE IT”? How To Eat HUMBLE CROW

WHEN COMPANIES “MESS UP” HOW DO THEY “SQUARE IT”? How To Eat HUMBLE CROWHUMBLE CROW

In the last few months, several major corporations have been forced to admit to doing things that were seriously wrong in their day-to-day operations.  I’ve done numerous posts on these pages about Wells Fargo and their myriad transgressions.  Facebook, as well, has had to eat humble crow in recent months regarding their mining and selling of personal data posted by their customers on their Facebook pages.

And, Uber is another company where the dreadful gifts just don’t seem to stop giving – from running over pedestrians to having women passengers assaulted by their drivers – and that’s not to even mention their serious mismanagement in the last few years.  Thus, these companies have been spending their time during the past several months engaging in a variety of ways to say “sorry” to their customers.  Wells has been running radio and tv ads proclaiming that it’s a “new day at Wells” –  one would certainly hope so!  As they’re attempting to earn back the public’s trust, they have thus far spent $21.5 million on the mea culpa ads.  Uber is airing a spot that mentions nothing of their scandals but features their new CEO (who hopefully will be able to turn around this promising company).  CEO Dara Khosrowshahi promises that the company is moving in new directions (which one can guess is certainly true).  Likewise, Facebook has been airing a tv ad pledging to address fake news and data misuse and to re-focus on the basic business plan of “connecting people.”  This might be a just-in-time effort, as Millennials are apparently dropping out of Facebook participation in droves.

So, having to say one’s sorry in today’s environment is both absolutely necessary as well as hugely costly.  Of course, the advertising costs of saying “sorry” pale in comparison to the fines that have been levied on Wells by the federal government, or those that could have been (and possibly still will be) levied on Facebook.  Not to mention the costs extracted from lawsuits filed against the companies by unhappy and wronged customers.  Sounds like it might be far cheaper to just do things the right way to start with.  Of course, that would require an altered management structure – one that is long overdue at Facebook.  And one that has recently been enacted at both Uber and Wells.

 

WHEN COMPANIES “MESS UP” HOW DO THEY “SQUARE IT”? How To Eat HUMBLE CROW

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