PR Communication Memo Essay

Lancaster, PA, June 13, 2013 JHW Corporation (NYSE JHW), a leader in textiles, announced nowadays that John Doe, chief financial officer, has resigned unexpectedly while working with the Securities and re-sentencing direction. SEC is currently investigating the history practices of JHW and recently discovered discrepancies in the familiaritys revenue recognition. James H. Whoever, president and CEO of JHW, state he was surprised to learn of the discrepancies discovered by SEC in the societys accounting practices and regrets that internal controls were not reviewed sooner. At this meter it is unknown if John Does resignation is attached to this incident however, the comp all is committed to finding a replacement chief Financial Officer at the conclusion of the probe. Until further notice the unrighteousness President of Finance will report directly to the CEO.Additionally, JHW will crack the muster out of its internet for the second quarter, pending the conclusion of the investigation relating to accounting practices of revenue recognition. The investigation is overseen under the direction of the Securities and Exchange Commission with the full-of-the-moon cooperation of JHWs internal audit committee and board of directors. As a result of the set forthation discovered the compevery has broadened the extent of its investigation to imply all internal controls for financial reporting. The issues of concern in the investigation originally involve the proper recognition of revenue. The connection anticipates completion of the investigation by the second week in July 2013, and will remedy any discrepancies place by SEC for the fiscal years affected within the time frame established by SEC.Because of the recent staff changes, and with the help of SEC, we ar looking into the patch to resolve it as soon as possible. We commit these staff changes atomic number 18 for the better, and we will continue to strive to reach company goals and protect o ur investors interests. No further protestation will besupplied on the status of the investigation or company operations until earnings make believe been reported.John Doe, Chief Financial Officer, resigned unexpectedly when the Securities and Exchange Commission (SEC) requested documents that led to the discovery of issues concerning revenue recognition during its investigation of the companys accounting practices. A press wall socket has been written to inform the habitual of the CFOs resignation and how the company is handling this crisis. At this time I want to inform you of the companys levelheaded requirements, explain the value of public communication, and the ethical concerns during this crisis.Legal RequirementsAs a publicly traded company we have a legal obligation to inform the public of the resignation of the company CFO. It is critical that we handle the CFOs resignation in a manner that minimizes any long-term effectuate that could cause lasting damage. Additiona lly, to avoid further repercussions the company should consider the future(a) legal requirements when handling this situation. Legal counsel should be sought to pay heed the company during this time to ensure nothing is overlooked, avoid future consequences, and soften of confidentiality. * Disclose any development considered material for immediate release to the public * Company operation filings including Form 10-K and 10-Q file Form 12b-25 to disclose unfitness to file report in a timely manner and the tenability* File an 8-K form for the recent changes* Detailed disclosure on financial condition, including financial statements* Inform shareholders of potential misstatements on annual reports and rectify any inaccuracies possible litigation and legal consequences as a result of crisis* command confidential information is secure, including CFOs access to privileged information frequent CommunicationAt this time all communications should be directed through the appointment of one spokesperson to ensure facts are consistent and focused on the relevant issues, without breaching confidentiality. Also we need to erect assurance that the company is taking the necessary steps to correct the situation and explain what plan we have to prevent this from recurring. It is positive that we cooperate with the media to image control over the situation to avoid further rumors of inappropriate behavior. Public communication at this time is invaluable when expressing the companys concerns and assure the stockholders and the public to retain their confidence in the company and its leadership.* The press release should calm the public by informing them of facts about the situation. The company should serve professionally and in a manner that reflects best practices in managing the situation. To state integrity, responses need to be honest and transparent to avoid negative impacts. prudence should be proactive by preparing for other attacks that may arise as a res ult of its response. Address negative comments in a lordly way to show the company is listening. Management should consult internal policies and procedures on the proper way to handle this situation.* Ethical ConsiderationsResponsible decision do is difficult when ethics tips the balance between calming stakeholders and providing information to SEC. To avoid further concerns in regard to this crisis, the company will provide any information requested by SEC that we are legally oblige to furnish. However, frequent contact and consultation with the board of directors should be sought to buzz off sure the organization stays focused on objectives in an ethical, legal, and socially acceptable manner (Cengage, 2006, p. 3) while providing required information to SEC.RecommendationsIt is my recommendation that a successor be appointed as soon as possible,and a meeting should be called with chief investors to smooth any marketplace nerves. Additionally, it is imperative the company devel ops an action plan to handle the situation in an cracking and professional manner. Staying proactive, calm, and truthful will help reaffirm the integrity of the company and provide reassurance to company stakeholders while impeding further rumors. The press release needs to be delivered to the public and to the NYSE informing them of delayed filings and recent changes to avoid future ramifications, including delisting. The company accounting staff should be lendable to help answer questions internally as SECs investigation continues. I will notify you of any information and developments as they occur. If you have any questions or concerns in this matter, please do not vacillate to contact me.ReferencesCengage. (2006). Stakeholder Relationships, Social Responsibility, and Corporate Governance. Retrieved from http//cengagesites.com/academic/assets/sites/316138_ch02.pdf e-releases. (2013). Press Release Sample. Retrieved from http//www.ereleases.com/press-release-sample.html