The outbreak of coronavirus has brought profound challenges to board members and business leaders. Overseeing the short and long-term health of corporations while operating from distributed locations has been difficult. In this article at Harvard Business Review, Lynn S. Paine outlines various corporate governance matters that give your board members sleepless nights.
Corporate leaders are seeking ways to manage dividends, future investments, employee experience, and wellbeing. Retaining brand reputation and fulfilling shareholder’s expectations are problematic in the current circumstances.
The post-pandemic phase will bring even more complexities and pressure. Stakeholder demands will surge, and new expectations will come from consumers and employees. All these conflicting issues will impair your board members’ decision-making power. All this will bring about a significant transformation in the nature and scope of your business stability.
The corporate governance model is undergoing a pressure test in the epidemic, while the board members face significant reform implications. Follow these suggestions to beat the emerging corporate governance challenges and survive the post-pandemic era:
- Rethink and redesign a strategy to showcase stakeholders’ significance in the smooth functioning of the organization. Take active measures to balance the trade-offs between stakeholder interests and responsibilities towards business growth. Incorporating stakeholder opinions and decisions about employees’ wellbeing could be a smart move.
- Corporate board members must anticipate and shift attention to public issues and take proactive measures to overcome them. Clear vision, corporate responsibility, and social engagement are the keys to pleasing the institutional investors, government bodies, and the general public.
- In the ever-evolving social and economic scenario, corporate committees must widen their vision to incorporate surveillance over compensation policies. Align compensation programs to your business strategy and meet social commitments. It will help your organization survive future market uncertainties.
- Apart from focusing on budget constraints and shareholder expectations, the board must also consider their employee’s perspectives. Consider how to correct any activities identified as unfair to your workforce.
Click on the following link to read the original article: https://hbr.org/2020/10/covid-19-is-rewriting-the-rules-of-corporate-governance