engleski

Board in crisis situation : should its communication capabalities be forgotten?

The board is an important internal mechanism of corporate governance. The Board is a formal link between shareholders and managers entrusted with the administration of corporation resources. The board in its work assumes multiple roles such as providing strategic advice, provision of external resources, and providing support in crisis situations. Existence and survival of the corporation in crisis is based on effective management and proper role and engagement of board. This paper points out the communication capabilities is very important asset of corporate boards. In a situation when a corporation is under intense criticism or serious allegations, board at its helm are forced to communicate reactively and, as much as possible, to neutralize negative consequences that the crisis could have on the organization’s image. Regarding recent history of corporate scandals, it is obvious that the practice of corporate governance is full of mistakes in handling crisis communication. This paper provides an overview of role of board in times of crisis and suggests some relevant acitivites in building crisis communication capabilities. Besides, the paper is also focused to an analysis of proactive and reactive board communication strategies.

Corporate Boards ; Corporate Crisis ; Communication Capabilities

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