COMMUNICATION PLAN

Communication Plan for Enron

Communication Plan for Enron

Introduction

Over the past few years the world has seen some of the huge corporate failures from which most of the failures are intentionally plotted while others seem to be business losses. After the detection of the company records and financial statements it becomes crystal clear that they are alleged in financial and accounting frauds which cause a number of difficulties for investors, local public stakeholders and the Government. The year 2002 saw the corporate scandals increase and this catapulted the people's distrust in corporate leaders. Furthermore there was no change in the level of improvement in public policy. There was also no significant change in public policy. Some futurists believe that it will require the likes of a very monstrous crisis situation, such as the emergence of a major depression or a vast breakdown in regulation to arise the general public from its doped state of consciousness.

Enron was one of the largest companies U.S. by its capitalization market. In addition to its own activities in the natural gas, this Texan company had set up a system of brokerage by which she bought and sold electricity, including the network of current distributors of the State of California, communication. In December 2001, it was bankrupt because of its losses from speculative trading on the electricity market, which had been disguised as profits via accounting manipulation (Dharan & Bufkins, 2004, pp. 56). This failure resulted in its wake of Arthur Andersen, which audit it accounts. This paper is a communication plan for Enron company to reestablish its image.

Background of the Issue

Enron scandal has highlighted the role of ethics in business. Enron's code of ethics was not strong enough or followed honestly by the executives. Enron's code of ethics consisted of 65 pages, which made an impression before employees and regulatory bodies that Enron has strict rules regarding ethical policies and procedures. The Enron's Founder further warranted it, that Enron runs its business within the set boundaries of morality and honesty. Enron's code of ethics emphasizes on integrity, communication and respect, but unfortunately none of these were practiced by Enron's executives (O'Fallon, 2005, pp. 375). Enron's creditors and investors had to bear a great loss in terms of monitory value the most. The Enron Scandal shredded light on the need of better regulatory policies in favor of employees' by giving them leniency in terms of selling their stock of up to 40k retirement plans. Enron had a rule that prohibited the employees from selling their stock before the age of 50 years. This policy expresses selfishness of Enron, as they tended to earn profits by sacrificing its employees' profits on stocks. It resulted in a loss of US$1 billion in stocks because share price decreased from US$90 to US$1 at the time of bankruptcy (Swartz & Watkins, 2004, pp. 34).

During 2000 and 2001 and the United States experienced its first failure: electronic commerce in what is known as the domain "dot com", large virtual companies ...