The Kyte Baby Controversy Is a Case Study in Best (and Worst) Business Practices

The Kyte Baby Controversy Is a Case Study in Best (and Worst) Business Practices
A close up photo of a premature baby's foot in a file photo. Premature birth is one possible symptom of congenital syphilis. (Fred Dufour/AFP via Getty Images)
Hillary Doran
2/5/2024
Updated:
2/5/2024
Commentary
In recent weeks, the viral Kyte Baby controversy has taken center stage and sheds light on a multitude of issues affecting the business world, ranging from workplace policies and remote work flexibility to the power of social media to shape public opinion and influence business outcomes.
The story began when Kyte Baby—a baby clothing and products company—fired an employee who refused to return to in-person work from leave after her request was denied to work remotely from the NICU to care for her newly adopted, premature baby. The fallout from this incident has sparked public outrage, boycotts, apologies from Kyte Baby, a GoFundMe campaign for the former employee, and unprecedented support from competitors in the baby clothing industry.

Kyte Baby’s mistakes and ensuing public relations disaster were avoidable. Still, the company’s response to the controversy provides a case study in the best and worst business practices and underscores the impact of social media and other external forces on business. The incident is an opportunity for other business leaders to learn from Kyte Baby’s blunders and critically examine their company’s human resources (HR) policies and practices.

Most obviously, this situation should prompt businesses to review maternity leave policies. Company HR departments typically have established guidelines for maternity leave to ensure fairness and compliance with labor laws such as the Family and Medical Leave Act. While these guidelines may not always be perceived as fair, they aim to create a standardized process for all employees.

The Kyte Baby case serves as a reminder that there can be exceptions to one-size-fits-all policies. Clearly, the public at large agrees with the idea that this mother—who communicated from the beginning that she wanted to fulfill her work responsibilities—should have been met with more flexibility and support from her employer. Any business that ignores public outcry against its actions may do so at its peril.

Kyte Baby’s response to its employee’s request is borderline baffling, especially given the rise of remote and hybrid work options over the last decade. More than ever, companies have the opportunity to be more flexible in accommodating employees’ needs. The Kyte Baby situation raises questions about the willingness of companies to adapt to changing circumstances. Companies must consider whether jobs that were traditionally done on-site can be successfully performed remotely without compromising productivity.

The Kyte Baby saga also shows social media’s impact on business. Social media has provided individual consumers with a powerful platform to voice their opinions and hold companies accountable. Basically the entire Kyte Baby drama played out on social media—exemplifying how social media can amplify stories, stoke public backlash and even affect a company’s bottom line. This phenomenon underscores the importance of businesses actively managing their online reputation and being responsive to public sentiment.
Sustainable and ethical business practices are important aspects of any company’s operations. This incident highlights a dissonance between Kyte Baby’s stated ethos as a family-oriented business and its actions toward this employee—a young woman growing her family via the adoption of a newborn. The language on the “about” page of Kyte Baby’s website states the company has designed its business to support parents and caregivers and uphold ethical standards. Clearly, it failed to walk those beliefs out. Business leaders should build robust protocols to ensure company behavior and decision-making is aligned with stated company values. A little planning can stave off post-facto apologies and customer outrage.

An unprecedented and unexpected part of this kerfuffle has been the response from Kyte Baby’s competition—a new form of guerrilla marketing. Other players in the baby clothing industry have rallied around the former Kyte Baby employee, donated to her GoFundMe campaign, and created content based on the controversy. Clearly, these brands hope to capitalize on the public’s attention. In the age of social media this tactic feels a little opportunistic and borderline unseemly, but in the dog-eat-dog world of business, the potential advertising value of such actions can significantly boost a brand’s visibility.

The Kyte Baby controversy serves as a microcosm of broader issues facing businesses in the modern era. It calls for introspection and adaptation to ensure that companies not only articulate their values but also integrate them into their decision-making processes. As social media continues to be a driving force in shaping public perception, businesses must navigate these waters with sensitivity and empathy to foster trust and loyalty among their customer base.

Hillary Doran, MBA, is a Pepperdine alum and a director at Pepperdine Graziadio Business School.
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