Individual Assignment: PR Communication Memo
- The company with which you are currently employed is experiencing a financial crisis. The Chief Financial Officer (CFO) has suddenly resigned and no one is discussing the reasons why. The U.S. Securities and Exchange Commission (SEC) is investigating your company's accounting practices and from the documents they have requested, the issue seems to concern revenue recognition. Rumors are beginning to circulate that suggest inappropriate behavior on the part of your company. The organization is a publicly traded company, and as such, the company is required to issue a public notice concerning the sudden vacancy of the CFO. As a Certified Public Accountant (CPA) on the team drafting the notice, you are involved in communicating the current situation to the general public.
- Write a press release. You may conduct research to find examples of public notices of this same nature. Use the examples to determine how you will format your press release. Then write an accompanying internal memo no more than 2 pages in length to your manager that includes the following:
o Outline what your company is legally required to do.
o Explain the value of the public communication in this situation.
o Examine the balance between calming external stakeholders and the ethical considerations of providing all the information that is required by the SEC.
o How the perception of the press release will affect public opinion
FOR IMMEDIATE RELEASE
CFO Make Sudden Departure
The ABC Company shocked in the market with the sudden departure of its Chief Financial Officer. The CFO has left the company with immediate effect and there is no reason was given for resignation. The company has announced that he left the organization to pursue other career opportunities. The reason for the resignation is unknown but according to the industry watchers it is speculated that it is concerned with the revenue recognition process as the company is facing financial crisis.
The chairman and supervisory board of the company said, "The new setup of the executive Board of the company will be set soon and this will allow a better financial position of the business by accomplishing customer needs". The leadership team will continue to be focused to drive forward strategy for the company and focus on the profitable growth of the business.
The position of CFO will not be replaced as the operating executive, which previously reported to CFO now would report to CEO directly.
Date: April 26, 2010
Sub.: Importance of Public Communication
The position ...
This solution provides a press release communication memo.