All Academic, Inc. Research Logo

Info/CitationFAQResearchAll Academic Inc.
Document

Avow or Avoid?: The Public Communication Strategies of Enron and WorldCom
Unformatted Document Text:  Avow or Avoid? 6 prices and the SEC investigation of his corporate loans. John W. Sidgmore was named CEO of WorldCom. On June 25, 2002, WorldCom fired its Chief Financial Officer, Scott D. Sullivan, and announced the discovery of improper accounting that had hidden $3.9 billion in expenses. On the same day, Sidgmore announced that WorldCom would eliminate 17,000 jobs (Healey, Pham & Huffstutter, July 27, 2002). On July 21, 2002, WorldCom filed for bankruptcy protection (WorldCom Files, July 21, 2002). Literature review Cooperation and Communication Lee et al. (1999) argued that “based on mutual understanding and appreciation of each other’s functions, public relations and legal counselors need to develop and maintain a cooperative relationship” (p. 248). They suggested that communication behaviors and activities are essential to cooperative relationships (p. 248). They found that public relations and legal counsel in a crisis management team establish cooperative relationships (p. 260). Crisis Communication Styles Fearn-Banks (1996) defines a crisis as “a major occurrence with a potentially negative outcome affecting an organization, company, or industry, as well as its publics, products, services or good name” (p. 1). She notes that a crisis can interrupt normal business and in extreme instances jeopardize the very existence of the organization. Crisis communication, according to Fearn-Banks (2001) is “verbal, visual, and/or written interaction between the organization and its publics…prior to, during, and after the negative occurrence” (p. 480). She suggests there are eleven practices suggested by crisis communication theory. Several of those practices have pertinence to the current research: it is important for public relations practitioners to be part of the dominant coalition of an organization, programs

Authors: Reber, Bryan. and Gower, Karla.
first   previous   Page 6 of 30   next   last



background image
Avow or Avoid?
6
prices and the SEC investigation of his corporate loans. John W. Sidgmore was named CEO of
WorldCom.
On June 25, 2002, WorldCom fired its Chief Financial Officer, Scott D. Sullivan, and
announced the discovery of improper accounting that had hidden $3.9 billion in expenses. On
the same day, Sidgmore announced that WorldCom would eliminate 17,000 jobs (Healey, Pham
& Huffstutter, July 27, 2002).
On July 21, 2002, WorldCom filed for bankruptcy protection (WorldCom Files, July 21,
2002).
Literature review
Cooperation and Communication
Lee et al. (1999) argued that “based on mutual understanding and appreciation of each
other’s functions, public relations and legal counselors need to develop and maintain a
cooperative relationship” (p. 248). They suggested that communication behaviors and activities
are essential to cooperative relationships (p. 248). They found that public relations and legal
counsel in a crisis management team establish cooperative relationships (p. 260).
Crisis Communication Styles
Fearn-Banks (1996) defines a crisis as “a major occurrence with a potentially negative
outcome affecting an organization, company, or industry, as well as its publics, products,
services or good name” (p. 1). She notes that a crisis can interrupt normal business and in
extreme instances jeopardize the very existence of the organization.
Crisis communication, according to Fearn-Banks (2001) is “verbal, visual, and/or written
interaction between the organization and its publics…prior to, during, and after the negative
occurrence” (p. 480). She suggests there are eleven practices suggested by crisis communication
theory. Several of those practices have pertinence to the current research: it is important for
public relations practitioners to be part of the dominant coalition of an organization, programs


Convention
Submission, Review, and Scheduling! All Academic Convention can help with all of your abstract management needs and many more. Contact us today for a quote!
Submission - Custom fields, multiple submission types, tracks, audio visual, multiple upload formats, automatic conversion to pdf.
Review - Peer Review, Bulk reviewer assignment, bulk emails, ranking, z-score statistics, and multiple worksheets!
Reports - Many standard and custom reports generated while you wait. Print programs with participant indexes, event grids, and more!
Scheduling - Flexible and convenient grid scheduling within rooms and buildings. Conflict checking and advanced filtering.
Communication - Bulk email tools to help your administrators send reminders and responses. Use form letters, a message center, and much more!
Management - Search tools, duplicate people management, editing tools, submission transfers, many tools to manage a variety of conference management headaches!
Click here for more information.

first   previous   Page 6 of 30   next   last

©2012 All Academic, Inc.