Communication is key for a company to be successful. But what happens when communication is tainted with the omission of information?
Enron, a company created from the merging of Houston Natrual Gas and Omaha-based Inter North, is a prime example of communication meets social responsiblity. Kenneth Lay, the CEO of Enron brought the company into new fields, experiencing a substantial growth of revenue.
However, the company was engaging in risk activiities. And by this time, the company was suffering from the lack of profits. Instead of communicating this with the public, Jefferey Skilling assured the investors and stockholders that they were making huge profits. Enron reported false profits to the public, wronging the investor sand stockholders’ trust and support.
As the company’s situation worsened, the truth was exposed to the public. As a result of this scandal, millions of dollars were lost, and many lives were ruined.
Enron failed to assume their responsiblity of ethically using the money entrusted to them by the investors and stockholders. Communication is key to the success of a business; however, manipulative communication is not only harmful but also unethical. And thus, social responsibility applies to all parts of a business.
