MEDIA: CBC News Network Weekend Business Panel (July, 2019)

Summer days also mean studio days for the CBC News Network Weekend Business Panel, alongside Sherena Hussain and Janet Stewart.  On a personal note, it was great to get a chance to work with Janet, who I know as the anchor of CBC News in Winnipeg!

There are so many stories we could have discussed on what was a busy and varied news week; here’s what we covered:

Facebook’s $5 Billion Fine.  Federal regulators have fined Facebook $5 Billion for US privacy violations.  What are the implications for the company, in what has become an ongoing saga of operational problems?

Boeing’s Max Mess.  Boeing is considering pausing production of its troubled 737 Max jets after two devastating crashes, a lengthy “fix” process, and public concerns.  With the grounding impacting airlines and ongoing regulatory scrutiny, can the Max’s reputation be salvaged?

When Inspired Honey Hits the Shelves.  Investigations by the Canadian Food Inspection Agency have found that some products that claim to be honey are anything but.  What should consumers do when shopping for food items and is there an even broader impact?

Although some have shown little concern about the magnitude of Facebook’s recent fine, there’s no denying that $5 Billion is a massive amount of money.  Given the many shortfalls that have been observed over the last few years, including in terms of privacy, security, unintended use of subscriber data, and questionable content, there should be significant concern over the potential for additional financial penalties that could be in store for Facebook.

It’s critical that the company put fundamental systems and processes in place to proactively combat threats and mitigate risk, and although new compliance measures require certification from Facebook’s CEO, the strength of such obligations tends to be related to the person who signs.  To this end, executives must have a full appreciation of the serious nature that certification entails, and not fall into the category of those who sign their name with little recognition of the magnitude and consequences.  Many will be watching this next chapter very closely, including regulators.

First and foremost, the story of the Boeing 737 Max is a tragedy, with two horrific crashes and the loss of hundreds of lives.  Couple this with a relatively slow response from Boeing to ground the planes, criticism and concern from pilots, lawsuits from victims’ families, and a significant financial and operational impact to airlines and there’s not denying that a crisis is at hand.

Companies in this type of industry must always be mindful of the high degree of attention that must be paid to areas such as design, testing, training, and communication.  In the event that there proves to have been weaknesses in these areas and others, Boeing must take steps to fully review what was behind this disaster, and resolving it should start at the leadership level.  Consumers have their eye on the Max; how many would trust this technology enough to get on board again?

It’s certainly disturbing when a food item turns out to be something other than what was expected; this is just what has occurred with some products labeled as honey.  Besides the obvious risk and unfairness to consumers, this scenario also impacts companies that are producing and selling quality products in an honest manner, as doing so tends to be more expensive than items that are “watered down” or laced with cheaper inputs.

There is no excuse for companies incorporating additives into a food item that is being represented as pure or of superior quality; how dangerous it is to have such products in Canada’s food supply.  Although shoppers have a job to do when it comes to reading labels, the onus is on companies to be truthful about their products; regulators must also take steps to ensure that standards are in place to protect consumers, as well as a robust enforcement regime.  There is no place for dishonest, fraudulent, or low quality food products in Canada, period.

These are serious topics, but there was a moment to smile.  The reason?  Watch the archived version and find out why!

 

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Jenifer Bartman

Business Advisor| Speaker| Published Author| CBC News Network Weekend Business Panel| Former Venture Capital Executive
Jenifer Bartman
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