Communications Objectives During the Board Meetings in Managing the Volatile Business Environment

Communications Objectives During the Board Meetings in Managing the Volatile Business Environment
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Organizational Change Article Summary and Critique
Summary
As the article’s title indicates, the post-Covid-19 era will be characterized by enormous changes in corporate governance practice. The author notes that boards are faced with multifaceted realities due to the Covid-19 crisis (Paine, 2020). Burgeoning demands and pressure from different organizational stakeholders characterize the increasingly complex environment. The pandemic calls for the board to change their corporate governance practices and embrace models that guarantee shareholder returns while at the same time ensuring that the firm creates value sustainably. Boards should brace for change, mainly during the volatile moments in the corporate world characterized by demands and expectations from diverse stakeholders. In that way, the author suggested that the driving forces are complicating corporate decision-making capabilities and challenging the traditional government centered on the shareholder-centric paradigm that has guided business leaders and boards for several decades (Paine, 2020). The shareholder-centric paradigm or agency theory has been put to test, giving way to a more efficient governance model that emphasizes the company’s strategic resilience and health. Within the changing context, a board’s capacity to make decisions in a thoughtful and thorough yet efficient manner, including designing a feasible strategy about the paramount issues, would constitute a crucial facet of managing change in the post-Covid-19 era (Paine, 2020).
Critical Reflection
The Covid-19 crisis constituted an inflection point for the company’s corporate governance practices in various ways. For instance, the new corporate governance practice environment questions the ability of firm directors to manage stakeholder value sustainably, particularly...