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CEOs readying for potential worker demonstrations: a closer look

Google's CEO, Sundar Pichai, recently terminated around 50 employees who opposed the company's ties with the Israeli government. His justification for the dismissal was simply: This is a company.

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May 1, 2024
5 min read
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CEOs readying for potential worker demonstrations: a closer look

This story previously appeared in the Before the Bell newsletter from CNN Business. Want to subscribe? Click here. If you prefer to listen, you can do so by following the same link.

Some individuals didn't approve of his conduct, with the group organizing the protest expressing their disapproval.

"Google is throwing a fit because the company's executives are humiliated by the strong show of employees at the recent sit-ins, as well as their mishandling of these events," the No Tech for Apartheid group stated in a statement.

As employees across the United States witness protests against the Israel-Hamas war and encampments spring up on college campuses, they might ponder if these actions could spread to offices as well.

Before the Bell spoke with Johnny C. Taylor Jr., president and CEO of trade organization SHRM (previously known as the Society for Human Resource Management), about how businesses are preparing for prospective employee protests and how workers should express contrasting viewpoints at the workplace and beyond.

This interview has been edited for length and clarity.

Do you believe Google's actions were legitimate? Is it okay for employees to demonstrate at their place of work?

I completely, wholeheartedly, concur with Sundar Pichai.

Organizations frequently provide forums for workers to express their views since they want to foster a diverse perspective. Expressing feelings isn't appropriate through obstructing work entrances or taking over division presidents' offices. Disrupting the business is unacceptable.

We hire individuals and value differing opinions, but we shouldn't disrupt business operations.

Should workers be concerned about protesting outside of the workplace?

It depends. Avoid anything that negatively affects the company's reputation, even during non-work hours. Be mindful that you represent your company, and if your actions don't align with their culture or values or tarnish their brand, they can fire you. If you disagree, you can always seek employment elsewhere.

How should corporate leadership manage or address escalating tensions in the workplace?

Strong leadership states, "We value your differences and embrace them." Diversity is something they must be committed to. They should state that we can disagree, but we must disagree respectfully.

Effective leaders convene employees, telling them they can share their perspectives but that berating or embarrassing colleagues is unacceptable. More and more CEOs are declaring this, recognizing that we've reached this point. Incivility will no longer be tolerated.

I heartily support this. Since overcorrecting, we've realized that people desire a mixed work environment, but only if there's agreement.

You'd be surprised by the number of people who prefer to come to work without engaging in social debates.

Should company leadership address concerns raised by protesters?

In general, ignore them. There will always be workers who disagree with various issues, but a CEO must maintain client relationships. We establish our values and how we operate beforehand. Employees can disagree respectfully and civilly, challenging decisions, but after a commitment has been made, we can't keep revisiting them while simultaneously running a business.

You interact with CEOs daily. Are they concerned about employee protests?

Yes. Most of the CEOs I've talked to have yet to experience employee protests, but they're bracing for it. They feel it won't be restricted to Google. However, I don't think it will become widespread because Google addressed the situation rapidly and unapologetically. I doubt it will become commonplace.

Google's response to the antitrust lawsuit has provided a significant cushion for other companies, causing many management teams to design contingency plans.

Rolls-Royce is extending its factory to produce vehicles less rapidly

Rolls-Royce is significantly enlarging its factory in Chichester, England. This BMW-owned company will be adding five new buildings, with construction set to begin next year, according to my colleague Peter Valdes-Dapena.

When vehicle manufacturers increase their production facility, it's typically for one clear reason: manufacturing more cars. Yet, this is not the case with Rolls-Royce. Producing and selling more Rolls-Royces would jeopardize the brand's revered exclusivity.

Thus, Rolls-Royce's factory expansion is not geared towards building additional cars but designing and creating more extravagant and expensive vehicles. Such products require more time for craftsmanship and more space for specialized workshops and storage of rare materials.

In fact, this factory expansion is a testament to Rolls-Royce's ultra-wealthy clientele. Although they can only afford to buy a limited number of vehicles, they are happy to spend more on the luxury and exclusivity that Rolls-Royce offers.

Between 2020 and now, Rolls-Royce has seen a 17% uptick in sales, resulting in a record 6,032 cars and SUVs sold worldwide last year. During this same period, the cost per vehicle increased an incredible 43%, with the average spent per vehicle rising from $350,000 in 2020 to $500,000 in 2021.

The increase in revenue per vehicle is largely attributed to complex and time-consuming customization requests, also known as 'bespoke' work. Rolls-Royce nicknames these personalized orders 'Bespoke' and for fully custom-built models, 'Coachbuild.'

Martin Fritsches, president of Rolls-Royce Motor Cars Americas, explains, "We're not growing much in volume. That's not our focus point. But the bespoke area is gaining importance, and has been expanding dramatically, especially during the last couple of years."

CEOs of OpenAI, Google, and Microsoft to join other major tech executives on federal AI safety panel

The US government is seeking advice from prominent artificial intelligence companies on how to utilize the technology they create to safeguard airlines, utilities, and other critical infrastructure, particularly during potential AI-powered attacks, say my colleagues Brian Fung and Sean Lyngaas.

The Department of Homeland Security (DHS) disclosed on Friday that the advisory group they're establishing will feature top executives from some of the largest industries and corporations.

The panel will include CEOs from companies like Google, Microsoft, and OpenAI alongside defense contractors such as Northrop Grumman and air carrier Delta Air Lines.

This move showcases the close collaboration between the US government and the private sector as they seek to combat the potential risks and benefits of AI while there is no targeted national AI law.

The group of experts will offer guidance to sectors like telecommunications firms, pipeline operators, electric utilities, and others on utilizing AI responsibly. They will also help these sectors prepare for potential AI-related disruptions.

"Artificial intelligence is a revolutionary technology that can enhance our national interests in unprecedented ways," said DHS Secretary Alejandro Mayorkas in a statement. "At the same time, it poses significant risks - risks that we can address by adopting best practices and taking purposeful, measured actions."

Among the panel's other members are the CEOs of technology providers such as Amazon Web Services, IBM, and Cisco; chipmakers like AMD; AI model developers such as Anthropic; and civil rights groups like the Lawyers' Committee for Civil Rights Under Law.

The DHS asserts that these individuals will provide essential insights into how various sectors can effectively implement AI in a secure and safe manner.

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    Source: edition.cnn.com

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