Carat USA: An E-mail Gaffe and Reputational Furor

Authors
Husack, D., Knoblauch, K., Schwarber, C., and O'Rourke, J.S. (Editor)
Region
North America
Topic
Strategy & General Management
Length
9 pages
Keywords
implementing
Process
restructuring plan
HR
human resource
human resource executive
Copyright Holder
Notre Dame
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

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.