Mathew, a team manager at Weltono Inc., requested the company's senior management for additional resources for a project. However, he was denied the additional resources, and as a result, the project failed. During a company gathering, a senior manager publicly attributed the failure of the project to Mathew's incompetence. He filed a suit against the company on the grounds of public defamation and won the case. The company incurred losses because it had to pay a hefty sum to Mathew as compensation. In the context of the general environment, this scenario best illustrates the effect of the on organizations.