Governance Tips for Corporate Leadership by International Finance Corporation (IFC) on facing the COVID–19 Crisis
COVID–19 is now a global health crisis. Its effect on the world economy is growing day- by- day. The businesses have to deal with this crisis in an appropriate manner. Some tips as suggested by IFC are as follows:
The need is to take care of the employees, follow public health guidance to prevent the spread of the virus, and review the Business Continuity Plan (BCP).
It is advisable to create a Crisis Committee to oversee the impact of the crisis. Further, it is also important to have an emergency succession plan for key people in the organization.
Robust working of the company’s Internal Control, Compliances, Internal Audit, and Risk Management system has to be ensured.
Regular and prompt communication to the investors and all the important stakeholders about the impact of COVID–19 on the business of the company is necessary. It is also important to communicate the company’s preparedness to tackle this menace.
It is a challenge to hold a virtual Annual General Meeting (AGM) considering the present legal implication. However, in the absence of such meetings, continuing to maintain a good relationship with the investor in such testing times cannot be undermined.
Consistency in communicating key messages to shareholders is paramount and thus should be regularly followed.
- Demonstrate Leadership and Culture
- Oversee Crisis Management
- Ensure Preparedness and Robust Response to the Crisis
- Build Trust through Communication
- Maintain Investor Relations in the Absence of usual in-person Shareholder Meeting
- Support the Company’s Sustainability
