Ethics Case Study: 'Truth And Transparency'

SUMMARY

Truth and Transparency

Presented by:

Name : Teresia Prahesti

Student ID : 16210260059

Concentration : Corporate Communication

In Partial Fulfillments of the Requirements

For Public Relations Ethics

Jakarta

2017

SUMMARY

Truth and Transparency

Karla K Gower in the book Ethics in Public Relations Responsible Advocacy elaborated on trust, truth and transparency related to ethics and responsible advocacy in corporate public relations perspective. Elements of trust, truth and transparency is the main basis which must be held by the corporation regards the face of the crisis, the crisis and restore trust settle menage trust for the long term.

SCANDALL FALLOUT 2017 Edelman Trust Barometer reveals that trust is in crisis around

Organizational trust is “the organza

Case Study :

Enron

Enron and Arthur Andersen accounting firm violates the code of conduct that led to the bankruptcy and deterioration in the company. Enron and Arthur Andersen agreed to manipulate financial statements to the detriment of various parties, both external such as shareholders and internal of Enron. Enron violated business ethics with the manipulation of financial statements in order to attract investors. While Arthur Andersen violated professional accountant ethics for not being independent.

SEC v. Txas Gulf Sulphur (TGS) TGS material information regarding drilling in Timmins, Ontario and this information has not been publicly disclose. TGS employee Darke and Coates (geologist) has opened confidential information and recommend to some management or employees of TGS. The court ruled their action as insider trading and especially for Darke and Coates categorized as insider insiders.20 categories consisting of commissioners, directors, major shareholders and employees of this company is a classic example of someone who has Fiduary duty or called traditional insiders

Enron and Txas Gulf Sulphur case shows that transparency has implications for

Foster as vice president of public relations, which is directly responsible to the chairman and CEO, immediately set up a committee of strategies to deal with such cases. The committee seeks to make important decisions, ranging from the strategy of advertising, TV interviews, and planned resale of the product "Tylenol" with new packaging that is resistant to decay. The result of the poll on the case of "Tylenol" shows that 90% of Americans do not blame the company, 79% will use the product "Tylenol" back. Examples of cases illustrate that PR is the foundation of business and PR decision is closely linked with sound business practice and philosophy of corporate social responsibility. Johnson & Johnson product sabotage "Tylenol" in America in 1982, in Chicago, United States. With the advent of terrorism cases in the US is sabotaging the product "Tylenol" were given a mixture of toxins, and cause as many as seven (7) people were killed, and feared 100 million Americans will experience similar events. PR with a swift and full support of the management company, is the alarm clock with the media to- well. During the crisis, a PR decision is based on the principles of social business responsibility, which makes the role of PR to be very effective.

In the company of Johnson & Johnson, Lawrence G. Foster as vice president of public relations, which is directly responsible to the chairman and CEO,