In the News–Leadership & Strategy
Liberty Tax Sex Scandal Draws Investor Suit Targeting Hewitt
Jef Feeley and Anders Melin, Bloomberg, December 13, 2017
Some Liberty Tax Inc. investors have lost patience with founder John Hewitt. A pension fund is asking a judge to order Hewitt to relinquish his controlling stake in the national tax-preparation service after an internal review found that while running the company, he had sex in his office and hired relatives of female employees with whom he’d had romantic relationships.
The Liberty case is just the latest in a string of firings of prominent men as sexual harassment accusations shake public figures in fields as diverse as the media, the U.S. Congress and restaurant chains. Even company founders such as Uber’s Travis Kalanick and the Weinstein Co.’s Harvey Weinstein have lost their jobs following harassment allegations.
Company boards are increasingly being drawn into the fray. “This is opening up a whole new area of liability for corporations,” said Davia Temin, president and CEO of Temin & Co., a New York-based crisis management company. “They have to seriously look at the risks this behavior poses to the company.” […read more]
Crisis of the Week: NBC News Faces Questions After Lauer Firing
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, December 12, 2017
NBC News is in crisis after it fired longtime “Today” show anchor Matt Lauer after he was accused of sexual misconduct. The move came hours before the magazine Variety published a story detailing some of Mr. Lauer’s alleged actions with female staffers. The day after the firing, two more women came forward to accuse Mr. Lauer, who apologized and said: “Some of what is being said about me is untrue or mischaracterized, but there is enough truth in these stories to make me feel embarrassed and ashamed.”
NBC News President Andy Lack issued a statement on Nov. 29, saying the “detailed complaint” against Mr. Lauer was a “clear violation of our company’s standards.” He said the priority is to create a workplace environment where everyone feels safe, adding “any actions that run counter to our core values are met with consequences, no matter who the offender.” At the time of the firing, the network said it didn’t know of any complaints against Mr. Lauer during his time at NBC, only to later say no complaints had been made to “current management.” Mr. Lack sent a memo to staff on Dec. 1, saying the company is reviewing Mr. Lauer’s prior behavior and that it needs to “build a culture of greater transparency, openness and respect.”
The experts break down how well NBC News handled this crisis from a communications standpoint.
“NBC’s handling of the Matt Lauer affair is a fascinating example of the almost-triumph of alt-fact and spin,” said Davia Temin. “In the end, though, it turned out to be a serious breach of public trust.” […read more]
Met Opera Grapples With Sex Accusations Amid Financial Challenges
Jennifer Smith, The Wall Street Journal, December 4, 2017
The Metropolitan Opera already was struggling to get its financial house in order when the bombshell hit: Multiple allegations of sexual abuse by famed conductor James Levine, who served as the company’s music director for four decades.
Those accusations, which led the Met this past weekend to suspend its relationship with Mr. Levine and launch an internal probe, could complicate its funding woes.
“The right road is to get ahead of it,” said Davia Temin, chief executive of Temin and Company Inc., a reputation and crisis-management consultancy. “You have to demonstrate, from the time you start hearing of a report…that you are taking the moral high ground.” […read more]
NBC Fires Matt Lauer for “Inappropriate Behavior”
Richard Quest, Quest Means Business, CNN Money, November 29, 2017
U.S. TV anchor, Matt Lauer, was fired by NBC news after a complaint about inappropriate sexual behavior in the workplace.
Forget the drawn-out Harvey Weinstein or Kevin Spacey. With Matt Lauer, it all happened very quickly. The complaint was filed against Lauer on Monday. The investigation took place on Tuesday. And he was fired last night. The speed shows how seriously companies are now taking sexual harassment claims.
“It’s about time. Finally…through some conglomeration of social media, more women around, finally it is being taken seriously, and not a wink, wink, nod, nod,” said Davia Temin.
“I think that you can probably assume from the quickness with which Matt Lauer was fired that there was some real proof there. We don’t know what they saw. They’re not sharing everything. It’s not total transparency. Nor should it be. But there’s probably an awful lot of proof there. So, what I would say to you is, it’s not time yet. It’s not time for the pushback when we’re still just starting to hear what the real problem is.”
“All I can say is, it’s about time that they start looking the right way now. Let’s not castigate them for that yet.” […read more]
Halperin Scandal Adds to List of Harassment Concerns
Richard Quest, Quest Means Business, CNN Money, October 26, 2017
Five women have come forward with harassment claims against the journalist, Mark Halperin, relating to his time at ABC news. Halperin says he’s now stepping back from his role at MSNBC and NBC news. And while he denies some of the allegations, he does say he’s deeply sorry.
What is a company supposed to do when there are people like President H. W. Bush, who believed it was OK to pat a woman’s posterior. You’ve got Halperin, who asked people out on dates and then tried to kiss them, allegedly. Where are we going with this?
“Well, I think from time immemorial, we’re going to something that has been almost always true. And we’ re reaching a tipping point right now where it’s no longer acceptable. People are starting to talk about it more. Women are telling their stories more. And it starts with one person’ s personal narrative.”
But the company itself…what is the company supposed to do?
“First of all, they’ve already got the stuff on the books. They’ve got their regulations on the books. They haven’t ever enforced them in the way that most women would like to see it. So, what can companies, if the companies are getting serious about this, because of social media, because of 24-hour news shows, what now they need to do are carrots, sticks, and nudges. This is to change behavior. Carrots, sticks, nudges.” […read more]
To watch the interview, CLICK HERE.
Johnson Makes Rare Speech as Fidelity Deals With Harassment
Charles Stein, Laura Colby and Miles Weiss, Bloomberg, October 24, 2017
Fidelity Investments’ Abigail Johnson took center stage on Tuesday and counseled money managers gathering in Washington about charting their future in the digital world. But the chief executive, a featured speaker at one of the industry’s biggest conferences, is also struggling with a stubborn legacy of the past: the treatment of women in the world of finance.
Over the last two months, Fidelity, one of the largest investment companies, has dismissed two portfolio managers — one over allegations of inappropriate sexual comments and another over claims of sexually harassing a female junior employee.
Fidelity and other money managers may face a flood of complaints “now that the lid is off,” said Davia Temin, president and CEO of Temin & Co., a New York based crisis-management company.
Going forward, Johnson has to continue to “set the tone” that the organization will take every case that comes to light seriously and emphasize there’s also a business case for doing so, said Temin. While Fidelity is a closely held company without public shareholders, its customer base cares about these issues, she said. Some public pension funds already demand that women be included on teams that manage their money. […read more]
Faber, Weinstein Put Boards on Notice: You’re the Adults Now
Jeff Green and Jordyn Holman, Bloomberg, October 17, 2017
Corporate directors should now be on notice: bad behavior isn’t so easily swept under the rug. As a parade of executives has been outed as sexist, racist or both, boards have been called on to set — and enforce — standards of decent behavior.
On Tuesday, veteran investor and ubiquitous pundit Marc Faber agreed to leave the boards of three companies after he published racist commentary in his subscription newsletter. The week before, five Weinstein Co. directors quit in the wake of revelations about Harvey Weinstein and his history of alleged sexual assault and harassment made public by the New York Times and the New Yorker.
At this point, “CEOs and boards have to be the adults in the room,” said Davia Temin, head of the New York-based crisis-management firm Temin & Co. “Boards’ voices are getting strengthened, to some degree, because of the need of a counterpoint.” […read more]
How to Handle a PR Crisis a Lot Better Than Equifax
Leigh Anderson, Lifehacker, September 21, 2017
The Equifax data breach, in which 143 million accounts were compromised and which might have years-long consequences for consumers, was historic in its scope and potential for damage. But it’s also notable for how extraordinarily badly the company, at least from a public-relations standpoint, handled the fallout.
“It was a model of the worst case imaginable,” says Davia Temin, president and CEO of Temin and Company, a crisis and reputation-management firm. If you’re running a business, crises are inevitable.
It’s how you handle them that will determine whether you’ll move on relatively unscathed—or whether you’ll lose customers or even be forced out of business entirely. In this article, the author spoke to a couple of experts in the field about how they would have handled the Equifax breach better. […read more]
Crisis of the Week: Equifax Hit With Massive Reputation Breach
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, September 19, 2017
The hack of personal information of around 143 million people has put credit-monitoring service Equifax Inc. in the crisis bullseye. Hackers swiped Social Security numbers, birth dates, addresses and driver’s license numbers, leaving consumers trying to figure out their next moves—and unhappy with how Equifax was handling the situation. The breach is under investigation by the Federal Bureau of Investigation, Federal Trade Commission and several states.
Equifax issued a statement on Sept. 7 notifying the public about the breach—weeks after it said it first learned of the incursion. It issued ‘updates’ on Sept. 8, Sept. 11, Sept. 13, Sept. 14 and Sept. 15, the last one announcing the retirements of its chief information officer and chief security officer. Bloomberg reported three executives sold stock days after the company learned of the breach but NPR reported Equifax said in a statement not posted on its website the executives “had no knowledge that an intrusion had occurred at the time they sold their shares.” The company’s chief executive, Robert F. Smith, said the incident is “the most humbling moment in our 118-year history” and promised changes.
The experts evaluate how well Equifax has handled its crisis communications.
Davia Temin, chief executive, Temin and Co.: “Just terrible. Equifax’s public response to its breach affecting 143 million Americans remains one of the worst yet, serving only to exacerbate the crisis–and the company took over a month to plan it. It made pretty much every crisis communications gaffe in the book, systematically destroying public trust with every move.
“Equifax completely and purposefully understated the problem. ‘This is clearly a disappointing event for our company…’ the CEO said. Disappointed? Really? What about devastated? What about disconsolate? What about abjectly sorry? Second, it included its marketing brand message in its announcement: ‘We pride ourselves on being a leader in managing and protecting data.’ This set up an internal comparison between what it promises in its marketing and what just happened. ‘Proud?’ It should be ashamed. This simply served to magnify its fail–and the company’s complete cluelessness as to what it was about to unleash.
“The utter stupidity of Equifax appearing to pull a fast one on the American public by tying its acceptance of an offer for a year of free credit monitoring to the waiving of one’s right to a trial and mandating the use of arbitration is stunning. Only after a huge public outcry and the involvement of New York’s and other state’s attorneys general getting involved did it amend the offer to include a ‘write-us-within-30-days-to-opt-out’ clause. No matter what its ‘clarification’ noted, it was far too little, too late. What could have been a one-day killer of an announcement…has turned into a category 5 debacle for Equifax.”
To read the full article, CLICK HERE.
Davia Temin Says Trump Had No Choice But to End Councils
Scarlet Fu and Julie Hyman, Bloomberg, August 16, 2017
In today’s “Walk the Talk,” Davia Temin, head of the crisis-management firm Temin & Co., reacts to President Donald Trump’s decision to disband two advisory groups of U.S. business leaders. She speaks with Bloomberg’s Scarlet Fu and Julie Hyman on “Bloomberg Markets.”
To watch the interview on Bloomberg, CLICK HERE.
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