Primary File

Carat USA: An E-mail Gaffe and Reputational Furor

Husack, D., Knoblauch, K., Schwarber, C., and O’Rourke, J.S. (Editor)
February 12, 2018
North America
Strategy & General Management
9 pages
implementing, Process, restructuring plan, HR, human resource, human resource executive
Student Price: 
$4.00 (€3.78)
Average rating: 

As Carat USA was in the process of implementing a restructuring plan, a top HR executive accidentally forwarded the communication plan to the entire company via e-mail. The confidential document included the firm’s messages to employees, clients, vendors and other stakeholders. How can Carat USA recover from the mistake and restore its reputation? 

Learning Outcomes: 
  1. To demonstrate the suddenness and depth with which communications crises can develop;
  2. To provide a real world example of a corporate communication plan relating to a key business decision;
  3. To encourage analysis of a quickly developing business problem that needs to be handled swiftly in order to avoid negative consequences;
  4. To illustrate that information technology can be misused and mismanaged in large organizations;
  5. To encourage discussion regarding the proper level of disclosure of difficult business decisions to key stakeholders.