5 Most Important Characteristics of Corporate Affairs Strategyby Purvi Dalvi Writer
Corporate affairs strategy is critical to direct the resources available with the firm to a common goal. It is formulated to balance the interest of stakeholders of the company which includes the pool of customers, the shareholders, suppliers etc. Ideally, the board of directors are the chief architect of such strategies; additionally, they are the most critical decision makers in the firm while holding accountability for those decisions as well. An effective corporate affairs strategy can push the reliability for the brand and give its product line a consolidated pool of customers. A good reputation of the brand and the company will have positive repercussion in the market.
Here is the list of the five most important characteristics of corporate affairs strategy:
1. Discipline in the firm
Discipline is the most crucial factor which determines the success of any organization. They need to have a universally accepted code of conduct and awareness of social and environmental issues. The corporate reputation management team should implement a standard code of ethics.
2. Transparency in Operations
It is imperative for an independent body to evaluate economic and non-financial activities of the management of your company. The audit will bring clarity in the operations, and it will result in the positive imagining of the brand in the market and portray the real picture of the company in the front of the investors and potential customers. Media need to have a positive impression of your brand to sustain in the market.
3. Social Responsibility
A company is most likely to sustain for a more extended period which can create significant goodwill in the market by contributing towards social responsibility. While formulating the corporate affairs strategy, it is imperative for the management to have a non-discriminatory stand in society. They need to advocate civil rights and maintain specific ethical standards.
4. Accountability among decision makers
It is vital to have sane decision makers who can evaluate each scenario before taking a decision related to the firm. They are the one who should be held accountable for those decisions and actions. It requires to have a proper internal committee who can ensure such accountability in the company and raise valid queries against their decision.
5. Independent board
The decision making the authority of the boards of directors needs to be free of any bias and should not decide any influence of the lobby. They need to have a mechanism which can keep track of conflict of interest that may exist within the system. There should be a common way of decision making that can avoid the existence of dominant forces within the decision makers.
Created on May 23rd 2019 09:11. Viewed 267 times.