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Corporations urged to prioritise trust
The strategic imperative for companies in the current market should be to regain shareholders' trust, according to a leading management publication.
Harvard Business Review has suggested that a loss of confidence in corporate governance and business leaders will lower brands' values and make it difficult for firms to attract, retain and manage talent.
This could lead to a wholesale change of executive structures in many organisations, as businesses seek to realign their values with investors and the public.
Executives specialising in interim management positions could assist corporations in achieving this goal, thanks to their experience in working in periods of turbulence and change.
Citing research published by the Edelman Trust Barometer, the magazine revealed that confidence in the corporate system had begun to fall before the recession, but had now almost reached a terminal decline.
The article read: "Corporate leaders need to demonstrate to civil society that they understand popular and political concerns related to executive compensation, risk management, board oversight, and the treatment of employees facing layoffs."
The necessity of interim management in the current business climate was reinforced by FTI Consulting last month, which claimed that demand for executives with experience in these roles has risen since the outbreak of recession.
Categories: Board & CEO