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Author Question: Shouldn't public relations practitioners keep quiet when there's bad news that could affect the ... (Read 92 times)

RODY.ELKHALIL

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on: Aug 11, 2018
Shouldn't public relations practitioners keep quiet when there's bad news that could affect the performance of their company's stock? Why not let investment analysts discover the news on their own?
 
  What will be an ideal response?

Question 2

Why, in your opinion, did Sunbeam's board of directors issue the remarkable statement that the company's financial report from the previous year might be unreliable?
 
  What will be an ideal response?


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katara

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Reply #1 on: Aug 11, 2018
Answer to Question 1

As discussed elsewhere in the book, practitioners employed by publicly held
companies face ethical (Chapter 6) and legal (Chapter 15) requirements to
disclose any information that could influence an investor's decision to buy or sell
stock. Even if you put the ethical and legal requirements aside, being less than
honest is just plain bad business. The most important thing a practitioner has is
his/her credibility. Jeopardizing that credibility to artificially boost stock prices
is short sighted and, as demonstrated in this case, potentially destructive.

Answer to Question 2

As discussed in the answer to the first question, there were ethical and legal
considerations. And as discussed, there was the need to reestablish the
company's damaged credibility


RODY.ELKHALIL

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Reply 2 on: Aug 11, 2018
Excellent

scikid

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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