The Walt Disney Company
The Walt Disney Company, also referred to simply as Disney, is a global entertainment company known for many different types of entertainment. The Walt Disney Company headquarters are located in Burbank, California. According to The Walt Disney Company website, Disney has 195,000 employees and is operating in 45 countries around the globe. The company owns and operates famous names such as ABC, ESPN, Pixar, Marvel Studios, and many others. According to Investopedia, in March of 2019, Disney officially gained all media assets of 21st Century Fox, making it the largest media powerhouse on the planet. Disney is leading the entertainment industry but still has to compete with big names such as Times Warner, Sony, CBS, and Comcast. While these aren’t as big as Disney, they offer products for a variety of viewers, forcing Disney to continue to compete and release newer products. The Wall Street Journal states that Disney’s annual revenue for the 2018 year was $59.43 billion. The Walt Disney Company has created a brand that puts a strong emphasis on acting with ethics, being a family company, and protecting our global future. They have created a positive image for their company in society, and with this strong image, they continue to grow and innovate the entertainment industry.
The Demise of Roseanne
Roseanne was a show that ran from October 18, 1988, to May 20, 1997, and again from March 27, 2018, to May 22, 2018. It aired on the ABC Network, an umbrella company under The Walt Disney Company. The show portrayed a working class American family and had a cult following of over 18.2 million viewers. On May 29th, 2018, American actress, comedian, writer, and television producer Roseanne Barr went on Twitter to share some thoughts that were considered racist by many. The tweet was aimed at Valerie Jarrett, senior advisor to United States President Barack Obama. Soon after, ABC Entertainment’s President, Channing Dungey, released a statement in defense of those wishing for Barr’s show to be canceled due to her tweet. Within hours, Dungey went on to Twitter to assert the network’s decision to cancel Roseanne, declaring that the messages in Barr’s tweet were, “abhorrent, repugnant and inconsistent with their values” (Aaron, Iacullo, Mendheim, & Zhang, 2019). In rapport, Walt Disney Chairman and CEO, Robert Iger, firmly backed Dungey’s statement, tweeting from his personal Twitter account that “there was only one thing to do here, and that was the right thing” (Aaron et al., 2019). Barr went on to give multiple interviews both justifying her tweet and offering apologies, which led to 34% of the public disagreeing with ABC’s decision to cancel the show.
The Ethical Dilemma
In this case, there were no legal issues leading up to the cancellation of Roseanne. However, according to the PRSA Code of Ethics, there were ethical issues. In regards to advocacy, as a lead actress in a show that brings in millions of views per episode, the ideals promoted to the public must mirror the ideals of the network. Barr was not serving the public interest since she was not acting as a responsible advocate for the network she served. The ABC network president took action by canceling her show since she felt her tweet proved Barr’s ideals were, “inconsistent with their values” (Aaron et al., 2019). The Page Principles hold that one must realize an enterprise’s true character is expressed by its people. Barr tumbled into a downhill spiral due to the fact that she promoted negative ideas and views that are adverse to the ideals that a family network, such as Disney, wishes to be associated with. It is the responsibility of corporate communications to advocate for respect, diversity, and inclusion, where Barr did not meet ABC’s requirement of these values. When Barr was meant to remain calm, patient and good-humored following the crisis, she instead logged onto Twitter to speak her mind. These tweets turned into apologies, that soon turned into jumbled excuses attempting to save her reputation.
Textbook Application
Throughout the When You Wish Upon A Star case study, multiple textbook key ideas were present. First, the case study brought light to multiple contributions of public relations for organizations: organizational motivation, crisis management, and change agentry. Organizational motivation “builds internal relationships to foster positive morale, teamwork, productivity, and corporate culture,” (Swann, 2014, p. 3). During the Roseanne crisis, the ABC Studios team made it clear that what Barr tweeted was not in line with the standards and thoughts of the company. “Roseanne’s Twitter statement is abhorrent, repugnant and inconsistent with our values, and we have decided to cancel her show,” said the president of ABC Entertainment, Channing Dungey (Aaron et al. 2019). Public relations practitioners have the job of crisis management, meaning they are in charge of creating the appropriate response to help maintain a company’s reputation during a time of dysfunction. In this case, Dungey tweeted right away that the show would be canceled and Barr’s behavior would not be tolerated. By doing so, Dungey avoided any questions regarding racial prejudice coming from the studio.
The final contribution of public relations used in this case was change agentry. Public relations practitioners can “assist with organizational changes through communication and other activities to ease resistance to change and promote a smooth transition for those affected by changes,” (Swann, 2014, p. 3). After the Roseanne issue occurred, Iger sent out a company-wide email, including stakeholders, apologizing for the abrupt cancelation of the show. Reaching out to employees and stakeholders when an issue like this occurs is important because it helps to provide answers to questions they may have about their employers. It clarifies the situation so no one is left without knowing the exact reasoning for the company’s decision, and what actions will not be tolerated from employees.
Barr also caused ABC Studios to engage in corporate social responsibility. Corporate social responsibility is a “concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis,” (Swann, 2014, p. 39). Dungey did not have to cancel the show when Barr’s racist tweets were posted, but she knew they were wrong and were not a representation of the entire company and staff. In order to maintain a mutually beneficial relationship with the public and ABC’s stakeholders, Dungey made the decision to cut the show. Racism is a social issue that is still very much alive today, if Dungey had not canceled the show almost immediately, ABC would have taken a bigger hit, socially and economically. In the case of Barr, two corporate social responsibility issues were at risk: community investment and human rights & welfare. After Dungey announced the cancelation of the show, some viewers took to Twitter to announce that they felt the show should remain on the air. As a way to compromise and keep viewers happy, ABC Studios decided to make a spin-off show called The Connors, which included the original cast of Roseanne excluding Barr. By doing so, ABC Studios not only showed its support for Valerie Jarrett, but it also adhered to the opposing view of not cancelling the show. This was a compromise that satisfied both Jarrett and fans of ABC and Roseanne.
Media relations is a large part of what public relations practitioners and companies have to do. Media relations is the public relations practitioners “relationship with the editors and reporters of the mass media that function as communication channels directly to the organization’s stakeholders,” (Swann, 2014, p. 94). Even though the original reaction of the team was not to go to a news outlet, Iger and Dungey still communicated using Twitter with the help of their PR team. By publishing the news directly from the president, ABC was able to give information to its viewers in a legitimizing manner.
It’s arguable that conflict management is the most important part of a public relations practitioner’s job. Conflict management can be broken into four phases: proactive phase, strategic phase, reactive phase, and the recovery phase. Each phase allows for companies to properly frame the situation in order to refrain from harming the reputation or image of the company. Considering Barr turned to Twitter, ABC Studios did a great job controlling the conflict and backlash through the same platform. Dungey and Iger wasted no time explaining to the stakeholders, public, and internal employees that Barr’s actions were unacceptable and not a representation of ABC or their parent company. Even though some viewers of Roseanne were against the cancelation, the overwhelming population was relieved. By canceling the show, ABC Studios was able to maintain its company’s values of “everything that bears our name comes with our commitment to always act ethically, create content and products responsibly, maintain respectful workplaces, invest in communities, and be good stewards of the environment,” (Disney’s Senior Executive Vice President and Chief Financial Officer, Christine M. McCarthy). As we’ve learned from the textbook, it’s important for a company to keep their values in mind when conflicts occur. The values act as a guide for PR practitioners to navigate conflicts in a way that serves the public, but also maintains company culture.
Public relations practitioners also have the role of being advocates. Companies like ABC Studios and Disney have a worldwide following and they can use its platform to help enforce change. Considering the United States is having ongoing issues surrounding racism, it is important for large companies like ABC and Disney to hold those around them accountable. During the Roseanne case, the executives of each company made it clear that Barr’s actions were despicable and should have never have occurred. ABC and Disney used their position of power to address a situation that is quite prevalent in our culture.
Insider-Activist
One theory from this course that applies to this case study is insider-activist concept. This theory suggests that the public relations professionals within the company should act as change agents inside their organization and the public. In this case, Barr’s racist actions on social media reflected on ABC and The Walt Disney Company as a whole. How they responded to the conflict is their opportunity to be an activist in the fight against prejudice and racism in the media. They responded quickly, showing the public that they had zero tolerance for this negative behavior from employees and to show how strongly they felt about this, they proved it by canceling the show. The company has a huge platform to act in ethical ways and put actions to their words is a huge movement in society. The Walt Disney Company is holding all those they employ responsible for acting ethically and not promoting views to the public that do not align with the views of the company as a whole. The people within the company who acted quickly and justly to show the public that The Walt Disney Company does not agree with the actions of their famous actress turns negative situations like this one into a way to make a change in the greater society. If a company as successful as Disney isn’t going to stand against racism, it would allow its competitors to act unjustly too. They are an example of how to handle a terrible situation and make sure that they, and their competitors, hold themselves accountable so that a change is made in the future.
Seeking Success
Prior to Barr’s now-infamous tweet, there were warning signs. She fought with President Trump over Twitter in December 2017, she accused Hillary Clinton of being involved with child-sex trafficking, and she alleged there was a coverup of a DNC staffer’s death. These events show a clear pattern of a Hollywood celebrity engaging with political figures on topics she is not well educated on. Although ABC nor Disney has ever commented on this, the companies most likely looked past the growing controversy surrounding Barr due to her high capital potential. It is not unheard of for contract partners to request a moratorium on certain discussion topics in the interest of mutual income. In this case, Disney/ABC should have heeded the warning signs and restricted Barr’s use of Twitter. Had this been done early enough, Disney could have avoided any blow up and gone on to make unprecedented margins on profit through the sitcom. However, it is important to note that while taking this presumptive action might have worked and can be an example for future cases, a restriction through Barr’s contract might not have stopped her actions or the contents and views of the tweet would have been expressed via an alternate platform. Regardless of the missed opportunity to prevent the unfortunate, ABC and Disney both acted in exemplary ways following the event.
It is important to recognize that ABC was being looked at as a leader in inclusivity following its appointment of Dungey, the first black American to be president of a major broadcast TV network. Dungey made a point to always promote diversity in the workplace as well as in representation. Along with Shonda Rhimes, Dungey made ABC into a groundbreaking network in terms of acceptance.
Within 9 hours of the tweet, Dungey had decided to cancel Roseanne and had announced that publicly. Not only was this response swift and strong, it aligned with what the majority of the public urged ABC to do. Barr’s tweet came less than three years after Dungey’s historic promotion, creating a harsh whiplash in what the public saw from ABC in terms of race and acceptance. If ABC had done anything less than completely dissociate from a racist remark from one of its top actors and most well-known employees, the appointment of Dungey would have been called a PR stunt rather than a well-deserved promotion and important moment in history. When responding to crises, organizations must be aware of the culture surrounding their brand and what the public expects them to do.
The most critical part of ABC’s and Disney’s response to Barr’s tweet was a unified and unwavering front. Dungey made a statement that was succinct and definite, she did not say much else immediately following the event, which helped keep ABC’s stance clear for the public. What helped ABC look even better to the public eye was having Iger tweet a sentiment of agreement and nothing else on the matter.
We can learn what went wrong with ABC’s response by looking at the aftermath of the situation. While there were high levels of agreement with the decision to cancel Roseanne, others were quick to point out how ABC had not canceled shows such as The View and The Tonight Show Starring Jimmy Fallon, both of which had promoted stars with controversial moments. Additionally, executives at ABC seemed to only think of the remainder of actors, crew, and showrunners after the public pointed out how hundreds of people lost their jobs over Barr’s tweet. This shows how while a swift and strong reaction can be highly admired, it is important to consider all the repercussions of every decision.
We learn another tactic from this event; ABC never took its eyes off Twitter after its first decision. Because of this, it was able to receive the criticism following the hundreds of lost jobs and took action. ABC and Disney negotiated to buy one season of a spin-off show in order to honor all other contracts from the original show. This looked favorable for ABC in the end, the public saw a company that has a zero-tolerance policy with racism in 2018, honors every contract of the innocent victims, and has a diverse and unified executive suite.
Responsibilities
Patience Baldacci was responsible for detailing the lessons learned section and formatting the paper and citations in APA. Carly Goetz was responsible for writing about the company details and the theoretical application sections. Dana Stuardi was responsible for the summary of the case and the legal/ethical problems . Haley Jernigan was responsible for the textbook analysis.
References
Aaron, B., Iacullo, A., Mendheim, H., & Zhang, E. (2019). When You Wish Upon A Star: Disney|ABC Puts Corporate Values First in Cancelling Roseanne [Case Study]. Retrieved from https://page.org/study_competitions/2019-page-case-study-competition
Armental, M., & Schwartzel, E. (2018, November 8). Walt Disney Posts Record Annual Profit. The Wall Street Journal. Retrieved from https://www.wsj.com/
Beattie, A. (2019, May 16). Walt Disney: How Entertainment Became an Empire. Investopedia. Retrieved from https://www.investopedia.com/
Edgers, G. (2019, March 21). Inside Roseanne Barrs Explosive Tweet. The Washington Post. Retrieved from https://www.washingtonpost.com/
PRSA Code of Ethics. (n.d.). Retrieved from https://www.prsa.org/about/ethics/prsa-code-of-ethics
Swann, P. (2014). Cases in Public Relations Management: The Rise of Social Media and Activism (2nd edition) New York: Routledge.
Patience Baldacci 