The Core-Tex ethical problem

The case narrates about the Core-Tex company which meets certain difficulties: at first the accountant accuses the company with aggressive accounting methods and the overestimated profit, then he speaks about close relationship of the new CFO of the company with the external auditor, and then the accountant leaves the company. Due to the unstable financial situation 270 employees of the Core-Tex company were dismissed, however, the community reacted to it ambiguously. Slightly later environmental protection inspectors from the state environmental protection agency commented on company activity, having exposed it not in the best light – improper disposal and high emission at one of its larger manufacturing plants. These comments were published together with the above information in mass media. Thus, the main business partners and suppliers of the company started doubting financial viability of Core-Tex. The company’s stock price fell.
In my opinion, the best solution of this problem is a good PR campaign. Core-Tex needs to return trust of business partners, suppliers and the public. It is worth listening to advice of the vice-president for marketing and to stay ahead of the rumors and assumptions. First of all, the board of directors has to help the CEO to convince employees in strong future of the company. It is necessary to organize a press conference at which the board of directors will show Core-Tex in the most favorable light, paying special attention to points on which the company is accused. It is better to explain to the press activities of the company for points:
• Dismissal of employees is connected with internal reorganization of the company. It should be noted that Core-Tex declares about employment (actually, it is not obligatory to engage the employees, the main thing – to show to the public that the company actively continues the activity even during hard financial times).
• The aggressive accounting behavior is explained by exclusively accurate