Adecco: Accounting Scandal or a Communication Problem?



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Code : GOV0003

Year :
2004

Industry : Consulting

Region : USA Europe

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Adecco, a Forbes 500 Company and a global leader in human resource solutions, is a merger of two of the largest personnel services companies in Europe, Adia and Ecco. On January 12th 2004, Adecco announced that it would delay its results for the year 2003 citing the reason of 'material weaknesses in internal controls', in its North American branch. The stocks fell, followed by loss of customers and investors' confidence. While investors filed lawsuits, investigations started. The early investigations revealed that nothing major had really happened that was financially significant. But, getting back the confidence of customers who were switching to its competitors and investors, was expected to become a costly affair.

Pedagogical Objectives:

  • To discuss how the communication policy of the company created confusion leading to a public relations disaster
  • To discuss how the situation could otherwise have been handled, in the wake of Enron and Parmalat debacles.

    Keywords : Corporate Governance Case Study, Adia and Ecco, Adecco, Olsten temporary staffing firm, Adecco annual results delayed, Public relations policy, Communication policy, Adecco brands, Felix Weber, John Browmer, Jerome Callie, Ernest & Young, Anderson, Enron and Parmalat, Revenue recognition, Accounting irregularities

    Contents :
    Background
    The Scandal
    Public Relations Blunder


    Case Introduction >>


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