Directors should start using social media to engage with all stakeholders. Social media attracts an enormous number of users, including company employees, suppliers, and existing and new customers. In this most recent ICAEW Connect and Reflect report, we describe the benefits of social media for directors.
Connect and Reflect
To succeed in the modern world, businesses must move away from defensive old-style news management and corporate positioning. ICAEW argues that if companies embrace a positive approach to corporate governance that ensures they connect with and reflect society, they will reap many benefits.
In a world where communication is immediate, global and uncontrolled, businesses must connect with and reflect society in their corporate governance.
Connect and Reflect describes an approach to communications which will benefit all stakeholders and lead to operational changes which will support this development.
Many existing approaches to corporate communication stereotype members of the general public as distrusting and cynical, and to some extent it has become a self-fulfilling prophecy.
To overcome this polarisation, companies should tailor their communications, replace caution with candour and become more accessible.
In the Connect and Reflect series, ICAEW will be publishing five papers examining this issue.
Connect and Reflect reports
The latest ICAEW Connect and Reflect report shows how whistleblowing can help companies and provides an action plan for boards. We explore the five benefits of whistleblowing for companies and then outline the five-point action plan that boards can implement in order to maintain their systems of checks and balances.
In this Connect and Reflect report, ICAEW urges boards to consider the value that employee directors can bring to their organisation. The publication explains the role and responsibilities of employee directors and outlines a five-point action plan that should enable boards to take this step to improve their corporate governance.
Our first application of the Connect and Reflect approach looks at how organisations can tackle excessive executive pay. It requires connecting with the public on pay, reflecting on what is said and taking action if it is required. In this paper we examine the challenges and provide a 10-step action plan to support boards in their approach to remuneration of executives.
How business will benefit
If firms are open and willing to change as a result of feedback then they will reap benefits, such as:
- Further useful feedback from stakeholders.
- Ability to explain constraints and long-term strategies.
- Being seen as more accessible.
- Leaders that have public respect.
- Increased public trust.
- A reduction in pressure for potentially disproportionate legislation.
Join the discussion
ICAEW is looking for representatives from across business and society to contribute to the Connect and Reflect discussion.
Share your thoughts today on:
- How to end excessive pay
- How companies thrive on social media
- How employee directors add value
- Marking governance out of 10
- How whistleblowing helps companies
ICAEW will be publishing a series of papers tackling controversial issues in practical terms. Share with us your experiences, thoughts and anecdotes about how companies thrive on social media, how whistleblowing helps companies, how employee directors add value, how to end excessive pay and how to mark governance out of 10.