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Post Covid-19 Corporate governance impacts in listed companies

The unprecedented pandemic of COVID-19 has taken a toll on the business and the corporate world damaging the core operation in the organizational structure while impacting the economic structure, corporate alliance, and other manufacturing and production issues related to the challenges in the business operation in the business. With the effective approach towards corporate governance in the industrial entities new talented board of directorial suggestions can be attacked that might help to reduce the effects of the pandemic in the operation. This would streamline the business operation to a great extent while establishing a methodical approach towards accomplishing the combined goal of the business while helping the company to stay in operation and profitable. The business operation can be stabilized with effective and collaborative help from the management to make the operation a little stable to withstand the huge impact of COVID in the operation.

Post-COVID challenges in the listed companies

Organizations have undergone tremendous change in the period of COVID-19 and also post this period that has caused the tremendous disrupting the operational pillar of the company. This has caused the organization to suffer from a huge loss, economic failure. The corporate organizations have suffered from mismanagement of capital allocation, execution pay, and mismanagement related to the AGMs in the corporate operation (Hongwei and Lloyd, 2020). The annual meeting that takes place in every organization suggests the collaborative approach towards discussing the issues related to the operational strategy of the company, the structural authority among the competitive market and also scrutinize the financial stability and the expense structure of the corporate to help contribute to the growth of the organization in the long run. This strategic approach in the big organizations had to be canceled which caused a tremendous loss in terms of optimizing the policies in the operation.

Organizational impact

The organizations fail to streamline the established business policy that has been taken place to understand and control the established rule of mad regulation in the operation. This has impacted the corporate negatively as the annual meeting could not be held that suggested the disruption in the regulatory method post the pandemic. This has made the operational uncertainty prominent across each industry and the sectors of the business (Ilyas, 2020). The need for a structured approach that can understand the issues hindering the operation to expand would be enhancing the issues while hampering the productivity and daily operational activity in the business. The measures that have been affected since the pandemic by the national government would hamper the daily operation since this has put many limitations in the case of working with a large number of employees. The employees cannot be forced to work for operational growth.

Economic Impact

The unprecedented pandemic has impacted the annual revenue generation of the business in the month-end that caused a huge loss in terms of meeting the goal, exceeding the deadline, and uncompleted deliverables at the end of the year. This has also impacted the executive pay structure in the company. The corporates had to decide to discontinue the process of incentives, promotions, extra pay to the executives while rewarding and acknowledging their effort, and the work result. This has been responsible for breaking down the whole economic stability and financial dependency in the business that impacts the small organizations that have been associated with the large and big entities (Deliu, 2020). This impacted the financial cycle of the whole nation or rather the whole world as this has been dependent on the performance of various sectors like retail, healthcare, hospitality industry, manufacturing named FMCG industries as a whole. The shut down in the operation of many sectors gas stopped the revenue. This has been responsible for the great recession that the organization is bound to face in this time of crisis. The financial flow of the business has been broken down affecting the large entity in the operation as a whole.

The strategy to mitigate the problem

The uncertainty in the operational business is looking for the governance approach in the operation with the effective adjustment in the expectations, renewing the focuses to the business, and the opportunities for expansion, existence, and establishment of the compliance while repositioning the organization in the wake and need of the new normal (Greenwood et al., 2020). The workforce is getting disrupted with the tremendous impact of COVID in the business viability that might be harmful in streamlining the strategy of the business in the competitive market that would undergo a tremendous change of policy, business structure, and also a breakdown of workforce resilience in the organization. This can be mitigated with a technological approach that would be driven with the help of data, powered by various technologies, enabled by the enforcing the cloud to make it faster and guided by the objective and purpose. The taken actions would be enforced so that it can impact the issues related to the survival of the company with the tangible file that can be eradicated with the system operation in the business operation to a greater extent.

Impact of corporate governance post-COVID

The implication of corporate governance to reduce the effect of the unprecedented issues in the operation would be involving the internal auditors, external auditors, the board of directors, management to comply with the organizational ethics. This enhances the value of the shareholders in the business protecting the interest of the organization, shareholders (Aguilera et al., 2018). This also ensures the ethical practices, accountability, transparency, moral integrity, and also the rules of law in eth organization. The established governance policy helps in understanding the regulations, rules, and processes that are supposed to govern by the management of the business. The established corporate governance model can help the authorities to stay abreast of the real-time issues and help in ensuring the positive behavior in the time of the pandemic, reducing the cost capital to survive, improving the constructive way of decision making, assuring internal control, and enabling strategic planning.

Overcoming logistics challenges

The governance in the corporate world and its practice in it would help in streamlining the business strategy of the organization as a whole. This is responsible to streamline the assigned duties of the corporates and directors, requesting a general meeting on the board, practicing the derogating it from the logistics (van et al., 2020). This facilitates the effect of the fiduciary role of the management while governing the amendments, legal and judiciary clause in the operation. The delineate clauses also regulates the operation of the stakeholders. This regulates the orderly appointment of the assigned directors.

Overcoming the manufacturing and production challenges

With access to information and open communication management, directors have been able to develop a more strategic approach to overcome the challenges related to the manufacturing department. The manufacturing would also be started with the help of a strategic governance plan that can comply with the effective post-COVID measures to limit the spread of it while keeping the business stay in operation.

Overcoming financial challenges

The governance maintenance would help the board of directors to optimize the resilience of the company that can help in balancing the liquidity, risks in the operation. Future viability would be responsible for the effective approach of mitigating the huge financial loss while staying competitive and profitable in the operation. Immediate captions can be planned by the authority to address the long and short-term goals in the operation, generate funding, resolving the plummeting sales and investments. These streamlined actions can be impacted the survival of the organization to make it overcome the global downturn and keep the financial health stable and sustainable.

Impact on the Customers

The leveraged contract center can be re-evaluated regarding the issues related to the customer base of the business to survive and maintain a healthy relationship with the customers. This has effectively changed the behavior of the crisis and making it less effective to sustain in the operation (Ding et al., 2020). Immense changes in terms of structural and behavioral approaches of the organization would make the management decide and determine the customer behavior and their requirement even in a trying situation that has been raised in the pandemic situation.

Impact on workforce

Organizations suffer from workforce disruption that might hamper the overall flow of work starting from various threats in working from home, maintaining open communication in the team. The effective start of corporate governance would help to delegate the task in a streamlined pattern, establish the continuity of the business, navigating the workforce shift, critical need for an agile strategy of the workforce (Boon et al., 2020). To keep the business viable and functional in the global market and stay in the competitive market. The establishment of virtual care in the messaging technique can also be the result of corporate governance. This elaborates and escalates the scope for expanding in the market culture while staying profitable throughout the pandemic situation that can yield the best approach to navigate the issues to a greater extent.

Impact on the operations of the business

The corporate governance would be the best policy in maintaining the operational stability in the work culture since this can mitigate the issues related to the fundamental changes in the behavior of the customers, supply chain while routing the market that has been knocking the off the balance of it in the time COVID in the business. Distributed service model that can be helpful in adopting and engaging the various measures in the operation would be impactful to keep the operations on-going in the market. This approach can be easily implied to mitigate and diffuse the risk of the organization to a greater extent (Beech and Anseel, 2020). The governance maintained strategy would make it sustain in the long run to be able to establish in the operational strategy. The IT challenges can also be eradicated in the operation with a thorough evaluation of the real-time policy, decision making, workforce continuity, and productivity which would help understand the underlying approaches that are acting against the progress of the business and help in modifying the approach of this.