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Governance Research Digest – July 2012

Summary

The report provides insights on the power of new social technologies to shape boards’ decisions and bolster stakeholders’ influence. It showcases what board members should know about social media as it relates to a company’s ability to do business and safeguard its image.

Key Findings

• Many companies are already leveraging social media as a powerful tool for connecting with stakeholders and building a trusted, reputable brand.
• Ethics, working conditions, and company culture take on new importance as employees become de facto examiners and raters of the company, putting the company in the public spotlight.
• Under these circumstances, it is key that boards guarantee the necessary resources for management to address social media opportunities and challenges.
• Boards also need to challenge management’s assumptions, test the accuracy of the information the company is relying on, ask the right questions, and help establish the proper strategy.
• For boards, the first and most important social media question is one they need to ask themselves:
  • Do they have the knowledge necessary to understand these changes and new technologies?
  • Does the board need a change in composition to deal with the complexities of social media?
  • Does the board need external support and training to do so?

Author(s)

Global Corporate Governance Forum

Source

PDF report

Tags: board, corporate governance, Global Corporate Governance Forum, social media, stakeholders