engleski

Communication Strategies in Corporate Governance: What Every Board has to Implement

Corporate governance can be defined as a sort of “management of management” or “metamanagement”, since it incorporates the set of relations between the management, board, shareholders and stakeholders of a firm, and defines the framework for setting goals and determining the means to achieve those goals, as well as for monitoring the performance and efficiency of the firm. Good corporate governance depends on the balance of relations between internal and external mechanisms which ensure the efficiency of governing and help in the resolution of natural problems, as well as the possible conflicts and crisis that may occur. In the corporate governance processes, numerous different crisis situations could happen that force board of directors (or supervisory board) to communicate with all stakeholders and other groups in enviroment. Board has two choices at that point: to communicate without any plan and leave the communication up to chance or to use one of the available crisis and reactive communication strategies. Good communication in a crisis situation can support or even enhance an organization’s image in the public, while poor handling or lack of communication can have a particularly negative impact on its market activities in the future. In paper, authors analyse relevant aspects and the context of board communications management in corporate governance processes, summarize and provides an overview of the main principles of board communication with the media in crisis situations whose reporting is often crucial in the process of influencing stakeholders and target groups. The paper also aims to draft a conceptual framework for future research of roles of board communication strategies in the development of effective corporate governance.

Corporate Governance ; Board ; Board Communication Management ; Communication

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