Product Overview

In late 2021, Netflix leadership had to deal with some fierce employee and public blowback after airing The Closer, a comedy special by comedian Dave Chappelle. In the special—the last of six that Chappelle was contracted to make for Netflix—his targets included the lesbian, gay, bisexual, transgender, queer/questioning, plus others (LGBTQ+) community, particularly the transgender and nonbinary segments of that population. Netflix co-CEOs Ted Sarandos and Reed Hastings were caught by surprise by the reaction, particularly from Netflix employees, to the special. While supportive of Chappelle despite his often-incendiary remarks over the years, Sarandos and Hastings knew they had to do major damage control. Had they made the wrong decision in allowing this particularly strident special to air? Should they take it off the platform? What was the future of Netflix’s relationship with Chappelle? And—very importantly for a company that prized its workforce and had tried to create a culture of inclusion and diversity—how would they deal with Netflix’s many disaffected employees?

Learning Objectives

The case covers a highly contentious event in the United States—the publication of and fallout from a Chappelle comedy special on Netflix, and students from a variety of backgrounds may come to the case with preconceived notions about what Netflix ought to do as a result. Therefore, there are two key challenges and opportunities in this case: 1. For students to experience the reality of ethical pluralism. There will be disagreement in the classroom, and students need to learn how engage in active listening to embrace, rather than recoil from, this pluralism. 2. For students to incorporate diverse concerns voiced by their classmates into their own case recommendations.