Corporate Governance: Sustained communication strategies coupled with qualitative performance

Corporate Governance: Sustained communication strategies coupled with qualitative performance

FPJ BureauUpdated: Thursday, May 30, 2019, 02:23 AM IST
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Corporate governance is a buzzword today but it can only work well with a right mix.

Corporate governance without the right public relations and corporate communications policies to support corporate governance, a company or a government is likely to be misunderstood by all its shareholders and stakeholders. A company or a government might be continuously working for the optimum benefits of all the stakeholders, however, the lack of proper communication with the audience can cost heavily at times. The recent upheaval in Indian corporate sector where even the finest names are getting embroiled in board room controversies demonstrate how important the role of communications team is within the organisations and the government.

It is pertinent that policies and procedures of any company or the government are constantly reviewed and updated to ensure transparency in all aspects of their functioning. Further, the right stakeholder communications on these matters could be achieved through the well-oiled communication channels managed by the communications professionals within the company.

There is a little doubt that awareness on corporate governance and the right practices that are followed immensely benefit not just the stakeholders but the individuals, companies and the society at large. In fact there is a widespread feeling that a good governance is worth crores of rupees. In this context, the phrase minimum government, maximum governance assumes significance in all aspects of corporate and government functions.

It is the job of the communication professionals to inform the stakeholders and general public the principles of transparency, compliance of laws, procedures and ethical standards that are followed by the corporates or government functionaries. These communication professionals need to impress upon their target audiences that those in charge of carrying out the important tasks are doing so with utmost responsibility and care.

Such is the impact of good and effective governance that some experts feel that India could overtake the established economic giants in next few years by focusing on effective governance policies and spreading the awareness on governance related issues and challenges. Against this background, one can say that these are interesting and challenging times for communications professionals in the country. Although India has emerged as one of the strongest nations over the years as its economy remains a bright spot among nations across the world, worries of competition and how to project the businesses especially during the crisis situations compel Indian industries to have periodic relook at their corporate governance and communications tools to fork out new and innovative strategies to succeed in the market. The changing attitude of the business houses is of paramount importance for the communications professionals for whom apart from tackling the traditional media such as print and electronic, handling the social media with its vast reach has become extremely challenging and sometimes too taxing.

The success of any organisation today depends on the speed and agility with which it responds to the ever-changing demands of businesses with communications team having its role cut-out. For example, a constant channel of feedback is what the companies need today to evaluate their own as well as their competitors’ performance with an eye on the prevailing market trends and standards of corporate governance. It is important that public relations and communications team channel and source communications from all angles in such a way that managements do not find it difficult to analyse the new business scenarios to overcome the challenges involved and emerge as successful business houses. On internal front, employees need to be informed on diverse issues the management grapples with day in and day out. The feedback of employees matters in assessing over all company’s strength. But who can manage and analyse all these communication related activities? The obvious answer is ‘Sound Communication Team’. This is possible only if the top management ensures that the communications and PR team members work alongside marketing, production, quality or Human Resources departments within the organisation to achieve the stated business objectives. The overall feedback generated helps in bringing about qualitative change in the company’s business planning and corporate governance issues.

When it comes to external communications, there are several areas the companies have to look at but focus has to be largely on advertising and media (including the social media) related activities. Another challenge is to evolve effective ways of communication to impress the external audiences and targeted groups without compromising the credibility of the organisation. False assurances, wilful distortion of reports, manipulated financial figures and tall claims made over the present and future plans will often boomerang. Internal communication too is equally important as companies must communicate with their employees through professionally managed communication tools. In a nut shell, sustained communication strategies— be it internal or external— coupled with qualitative performance of crucial departments help organisations achieve their business goals within the targeted timelines.

It is often said that good governance is a foundation for ensuring social justice. However, what is equally significant is to understand the economic consequences of bad governance as could be gauged from recent corporate developments. The board of any company—small or big—cannot afford to fail in its fiduciary duty to shareholders and stakeholders. The boards may be transparent and forthright in all their dealings but in the absence of right communications and PR, the good corporate governance gets sullied affecting the company’s credibility and reputation. The bottom line is to take note of the fact that public relations and corporate governance go hand in hand.

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