Managing the reputation of restructuring corporations: send the right signal to the right stakeholder

Abstract

Abstract When restructuring their operations, companies intend to minimise environmental uncertainty; however, corporate restructuring increases the unintended uncertainty for stakeholders, as constituents often lack the information or understanding on how ongoing reorganisations would affect them. This paper proposes to manage restructuring through reputations, ie send information signals to the constituents. This contribution analyses the problems of reputation, integrating knowledge on information efficiency and information problems, and proposes five tasks of reputation management of restructuring corporations: release more information, release consistent information, simplify information, reach your stakeholders and reach competitors' stakeholder(s). Copyright © 2004 Henry Stewart Publications

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