The Law and Corporate Disclosure

Abstract

Today, organizations of all types and sizes increasingly recognize the value in being more transparent (DiStaso & Bortree, 2012; Rawlins, 2006b, 2008, 2009). This said, large corporations, particularly public companies, cannot simply say what they want, when they want, to whomever they want through whatever channel they so please. Business managers and strategic communicators must carefully follow the rules of the game, specifically the web of securities laws, rules, and regulations that guide the disclosure of mandatory and voluntary information about companies to investors and other stakeholders. Further, these same companies must guard against shareholder lawsuits and other litigation as a result of what they say and share (Lev, 2012).