The president of a company listed on the New York Stock Exchange dies of lung cancer, but the board of directors decides not to announce his death until it is determined who will succeed him and how top management will be realigned

discussion question

The following dilemmas should be discussed within the framework of the PRSA code of ethics.

The president of a company listed on the New York Stock Exchange dies of lung cancer, but the board of directors decides not to announce his death until it is determined who will succeed him and how top management will be realigned. The board feels that immediate announcement of the president’s death will cause loss of confidence in the company’s stock–and

SEC rules do allow up to 15 days for the release of material information about a company. Consequently, company telephone operators are told to tell callers that the president is “out of town.” A newspaper reporter, however, calls you as director of public relations and says she has heard rumors that the company president has died. She asks you to confirm or deny these rumors. What do you do?

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