CHAPTER 11

Risks, Corporate Crises, and Investor Relations

Over the past decade, public companies have faced numerous crises from product recalls to financial collapse. Examples of these crises are: bankruptcy (General Motors), product recalls (Takata), fraud (Enron), and corporate illiquidity as a result of the subprime mortgage crisis (Lehman Brothers). While each of the circumstances facing these companies was different and had different causes, they all have one thing in common—the negative impact the on reputation of each of the companies, which, in turn, dramatically lowered value of the company in the public markets. While some companies have recovered from these crises (e.g., General Motors), others have faced continued depression in ...

Get A Communication Guide for Investor Relations in an Age of Activism now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.