As far as I understand:

  • The situation when a CEO criticizes the company's products is called 'Ratner Effect' and such a situation is usually catastrophic for the company, bringing in on the verge of bankrupcy.
  • Ratner himself did this when addressing the general public. However, Stephen Elop did this in an internal memo.
  • Nonetheless Elop is still considered another perpetrator of the Ratner effect.
  • This would mean that a CEO is not allowed to criticize the products of the company even when addressing only the company itself, and not the general public.

This is when I'm having trouble with understanding things.

Will financial markets always heavily penalize the company if the CEO criticizes its products even only internally and why?

  • $\begingroup$ This questions seems to be about internal workplace policy of one single company rather than economics consequently I am moving it to the workplace.se where it might be on topic but please have a look at their help center $\endgroup$
    – 1muflon1
    Aug 15, 2021 at 13:11
  • $\begingroup$ @1muflon1 I think it's asking why financial markets penalize people who do this, not why internal company policies penalize them. $\endgroup$
    – user253751
    Aug 16, 2021 at 17:59
  • $\begingroup$ @user253751 if that is the case the user is welcome to edit the question to clarify that the question can be always reopened later $\endgroup$
    – 1muflon1
    Aug 16, 2021 at 18:20
  • $\begingroup$ @1muflon1 Is it better now? $\endgroup$
    – gaazkam
    Aug 16, 2021 at 19:55
  • $\begingroup$ @gaazkam you still left there a lot of value laden and opinion based questions, I edited the question for you removing the multiple opinion based questions, if you are happy with the edit I can reopen it for you $\endgroup$
    – 1muflon1
    Aug 16, 2021 at 20:00


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