Harvard Case - The Walt Disney Company: Sexual Harassment and Controversies on Social Media
"The Walt Disney Company: Sexual Harassment and Controversies on Social Media" Harvard business case study is written by Wiboon Kittilaksanawong, Yiwen Chen. It deals with the challenges in the field of Organizational Behavior. The case study is 17 page(s) long and it was first published on : Aug 27, 2020
At Fern Fort University, we recommend that The Walt Disney Company implement a comprehensive and multifaceted strategy to address the issues of sexual harassment and social media controversies. This strategy should focus on building a culture of respect, accountability, and transparency. It should also prioritize proactive measures to prevent future incidents, cultivate a more inclusive environment, and effectively manage online reputation.
2. Background
This case study explores the challenges faced by The Walt Disney Company in navigating allegations of sexual harassment and managing online controversies. The company, renowned for its family-friendly brand image, has been confronted with several high-profile incidents, including allegations against former CEO Michael Eisner and the firing of several executives for misconduct. The case study highlights the impact of these incidents on the company's reputation, employee morale, and financial performance. It also examines the role of social media in amplifying these issues and the challenges of managing online narratives.
The main protagonists of this case study are:
- The Walt Disney Company: A global entertainment conglomerate with a long history and a strong brand image.
- Michael Eisner: The former CEO of The Walt Disney Company, who was accused of sexual harassment.
- The victims of sexual harassment: Individuals who have experienced misconduct within the company.
- Social media users: Individuals who have amplified the controversies surrounding the company through online platforms.
3. Analysis of the Case Study
This case study can be analyzed through the lens of several frameworks, including:
Organizational Culture: The case study reveals a deeply ingrained culture of power and secrecy within The Walt Disney Company, which may have contributed to the prevalence of sexual harassment and the difficulty in addressing these issues.
Leadership Styles: The case study highlights the importance of ethical leadership and the impact of leadership styles on organizational culture. Michael Eisner's leadership style, characterized by a focus on profits and a lack of transparency, may have contributed to the company's struggles with sexual harassment.
Team Dynamics: The case study underscores the importance of fostering a culture of respect and accountability within teams. The lack of open communication and support within teams may have contributed to the silence surrounding sexual harassment.
Change Management: The case study demonstrates the challenges of implementing significant organizational change, particularly when it involves addressing sensitive issues like sexual harassment. The company's response to the controversies has been met with resistance and skepticism, highlighting the need for a more comprehensive and transparent approach to change management.
Communication Patterns: The case study reveals the importance of effective communication in managing crises and building trust. The company's initial responses to the controversies were often perceived as defensive and lacking in empathy, further damaging its reputation.
Diversity and Inclusion: The case study highlights the importance of creating a diverse and inclusive workplace. The company's efforts to address the issues of sexual harassment and social media controversies will be more effective if they are grounded in a commitment to diversity and inclusion.
Employee Engagement: The case study emphasizes the importance of employee engagement in fostering a positive and productive work environment. The company's efforts to address the controversies will be more successful if they involve employees in the process of creating a more respectful and inclusive workplace.
Crisis Management: The case study demonstrates the importance of having a well-defined crisis management plan in place. The company's response to the controversies has been inconsistent and reactive, highlighting the need for a more proactive and strategic approach to crisis management.
Corporate Social Responsibility: The case study underscores the importance of corporate social responsibility in maintaining a positive brand image and building trust with stakeholders. The company's efforts to address the controversies will be more effective if they are aligned with its commitment to corporate social responsibility.
4. Recommendations
1. Implement a Comprehensive Sexual Harassment Policy:
- Develop a clear and concise policy: The policy should explicitly define sexual harassment, outline reporting procedures, and provide clear consequences for violations.
- Provide mandatory training: All employees, including executives, should undergo mandatory training on sexual harassment prevention and awareness.
- Establish a confidential reporting system: Victims should have access to a confidential and independent reporting system, ensuring their safety and anonymity.
- Conduct regular audits: The company should conduct regular audits to assess the effectiveness of its sexual harassment policy and identify areas for improvement.
2. Foster a Culture of Respect and Accountability:
- Promote open communication: Encourage open dialogue and feedback on workplace issues, creating a safe space for employees to voice concerns.
- Empower employees: Provide employees with the resources and support to report misconduct without fear of retaliation.
- Hold leaders accountable: Ensure that leaders are held accountable for their actions and the actions of their teams.
- Promote diversity and inclusion: Create a workplace environment that values diversity and inclusion, fostering a sense of belonging for all employees.
3. Implement a Proactive Social Media Strategy:
- Develop a comprehensive social media policy: The policy should outline guidelines for employee conduct on social media and provide clear consequences for violations.
- Monitor online conversations: The company should actively monitor online conversations related to its brand and respond promptly and effectively to negative feedback.
- Engage with stakeholders: The company should engage with stakeholders on social media, responding to concerns and building relationships.
- Leverage social media for positive messaging: The company should use social media to promote its positive initiatives and values, building a more positive online presence.
4. Enhance Crisis Management Capabilities:
- Develop a comprehensive crisis management plan: The plan should outline procedures for responding to crises, including communication protocols, stakeholder engagement strategies, and damage control measures.
- Train employees on crisis communication: All employees, particularly those in leadership positions, should receive training on crisis communication and media relations.
- Establish a dedicated crisis response team: The company should establish a dedicated crisis response team to handle urgent situations and provide consistent communication to stakeholders.
5. Invest in Leadership Development:
- Develop ethical leadership programs: The company should invest in leadership development programs that emphasize ethical decision-making, accountability, and respect for all employees.
- Promote diversity in leadership: The company should actively promote diversity in leadership positions, ensuring that leadership teams reflect the diversity of the workforce.
- Provide ongoing training: Leaders should receive ongoing training on issues related to sexual harassment, diversity, and inclusion, as well as crisis management.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations are aligned with The Walt Disney Company's core values of family, creativity, and innovation. They promote a workplace environment that is safe, respectful, and inclusive, consistent with the company's mission to entertain, inform, and inspire.
- External customers and internal clients: The recommendations are designed to protect the company's reputation and build trust with external customers and internal clients. They address the concerns of victims of sexual harassment and promote a positive and productive work environment for all employees.
- Competitors: The recommendations are designed to help The Walt Disney Company maintain its competitive advantage in the entertainment industry. They promote a strong brand image, a positive work environment, and a proactive approach to managing online reputation.
- Attractiveness ' quantitative measures: The recommendations are expected to have a positive impact on the company's financial performance by reducing legal liabilities, improving employee morale, and enhancing brand reputation.
6. Conclusion
The Walt Disney Company faces significant challenges in addressing the issues of sexual harassment and social media controversies. However, by implementing a comprehensive and multifaceted strategy that focuses on building a culture of respect, accountability, and transparency, the company can effectively address these issues and build a more positive and sustainable future.
7. Discussion
Alternatives not selected:
- Ignoring the issues: This would be a short-sighted and irresponsible approach that would likely lead to further damage to the company's reputation and financial performance.
- Issuing a public apology without taking concrete action: This would be perceived as insincere and would not address the underlying issues.
- Focusing solely on legal compliance: While legal compliance is important, it is not sufficient to address the cultural and systemic issues that contribute to sexual harassment.
Risks and key assumptions:
- Resistance to change: There may be resistance to change from some employees and executives, particularly those who benefit from the current power dynamics.
- Cost of implementation: Implementing these recommendations will require significant investment in resources, training, and technology.
- Effectiveness of implementation: The effectiveness of these recommendations will depend on the company's commitment to implementing them fully and consistently.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and resource allocation for each recommendation.
- Communicate the plan to stakeholders: The company should communicate the plan to employees, investors, and the public, demonstrating its commitment to addressing the issues.
- Monitor progress and make adjustments: The company should regularly monitor the progress of implementation and make adjustments as needed.
- Engage in ongoing dialogue with stakeholders: The company should maintain open communication with stakeholders, listening to their concerns and responding to their feedback.
By taking these steps, The Walt Disney Company can create a more respectful, accountable, and inclusive workplace environment, while also effectively managing its online reputation and building a more sustainable future.
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Case Description
Between 2017 and 2019, The Walt Disney Company (Disney) faced two major scandals that threatened to damage its family-friendly brand image. Disney's brand value decreased by 5 per cent from 2017 to 2018, although it remained the most valuable media brand worldwide. In November 2017, John Lasseter, Disney's executive producer, was accused of illegal sexual misconduct at its Pixar Animation Studios (Pixar). Following the allegations, Lasseter left the company in December 2018. Further, during the June and September of 2018, Rian Johnson, the writer and director of The Last Jedi for Disney's subsidiary, Lucasfilm Ltd. LLC (Lucasfilm), posted unprofessional, aggressive, and insulting responses on his personal Twitter account to fans who hated the film. In April 2019, Disney chief executive officer (CEO) Robert Iger announced that no new Star Wars movies written or directed by Johnson would be put into development. Why did Disney not take immediate action to address these two scandals? How should Disney mitigate the losses stemming from the two scandals and prevent them from happening again? What should Disney do to further grow its sustainably?
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