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10-11 May 2005
The Metropolitan Club ● New York, NY
Produced by Harvard Business School Publishing
in collaboration with
The International Association of Business Communicators
Background
Nike, Inc. v. Kasky, a case about Nike’s alleged
false and misleading statements concerning working conditions in its overseas
factories, has become a lightning rod for both the business community and public
interest groups alike concerning the rules governing corporate speech. After a
long legal battle that went all the way to the U.S. Supreme Court, Nike settled
out of court last September to the dismay and disappointment to dozens of
“friends of the court,” ranging from the Ad Council to the White House. The
settlement was brought on, in part, because Nike could not substantiate
its public statements. In the announcement of the settlement, Nike’s General
Counsel said the company would limit its public appearances and would not
publish its 2002 corporate social responsibility report. Other companies have
quietly followed suit.
The Martha Stewart case was another high-profile case that brought new light to
the thinking of the SEC concerning corporate speech, because if Stewart had been
convicted of securities fraud, any public statement made by a company would be
considered material, and if the statement was found to be false or misleading in
any way, the company could be held liable for securities fraud. Many corporate
attorneys feared a conviction would lead to renewed scrutiny of a much
underutilized mosaic approach to securities fraud in which single forms of
communication, say an open letter to customers, a letter to the editor, or an
executive speech do not in themselves create the impression of fraud, but when
viewed as a whole, over a period of time, a mosaic of fraud could appear.
The recent indictment of Ken Lay also hinges on new perceptions of corporate
speech by regulators. Were his public statements in speeches and interviews
putting a positive gloss on Enron’s condition and maintaining critical
confidence necessary for it to grow or were they intentionally fraudulent
statements meant to deceive? A jury will ultimately decide, but that these
statements are the basis for part of the indictment should be of great concern
to all those involved in shaping a company’s communication.
About Harvard Business School Publishing
Harvard Business School Publishing is committed to seeking out, nurturing, and publishing those significant ideas that will have an impact on business for a decade or more. We are the publisher of choice for those authors and content experts with important management ideas and a desire to improve the practice of management worldwide. Our association with Harvard Business School affords access to the latest thinking in management. Several of our most prominent authors and content experts are Harvard Business School faculty. We use a broad range of media, both traditional and cutting edge, to bring those ideas to executives, managers, educators, and students who can put them to use. Among our publications are Harvard Business Review, Harvard Business School Press books, Harvard Management Update, Harvard Management Communication Letter, Strategy & Innovation, and Balanced Scorecard Report, as well as a number of online professional development programs and our world-renowned case studies. With our conferences, we create gatherings that foster free, far-ranging exploration of the larger issues we all face, and inspire leaders to return to their organizations with critical new insight on the future of business.
For more information, please visit www.harvardbusinessonline.org.
About the International Association of Business Communicators
IABC is a not-for-profit international network of professionals committed to improving the effectiveness of organizations through strategic interactive and integrated business communication management. IABC links communicators in a global network that inspires, establishes and supports the highest professional standards of quality and innovation in organizational communication. We are recognized as the professional association of choice for communicators who aspire to excel in their chosen fields.
The IABC Mission is:
- Provide lifelong learning opportunities that give IABC members the tools and information they need to be the best in their chosen disciplines.
- Share among our membership best global communication practices, ideas and experiences that will enable communicators to develop highly ethical and effective performance standards
- Shape the future of the profession through groundbreaking research.
- Lead the way in the use of advanced information technology in the profession.
- Unite the communication profession worldwide in one diverse, multi-faceted organization under the IABC banner.
For more information,
please visit www.iabc.com.
Produced in
collaboration with:
Sponsored in part by:
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