Communication with Stakeholders

The fate of a company is not solely determined by the general conditions affecting it; nor are firms autonomous decision-making bodies that are limited only by their own resources. Large corporations particularly, in opening themselves to bidirectional communication with stakeholders, such as investors, customers, suppliers, competitors, trade unions, governments, etc., allow stakeholders the opportunity to influence the company’s decisions. Good, stable relationships with stakeholder groups thereby represent an important intangible value.

Various studies also support the thesis that information and communication policies toward stakeholders influence the valuation of the company in capital markets. Active and transparent information policies, along with the use of internationally recognized accounting principles, are generally rewarded with higher valuation (Hostettler 2000, pp. 29-30).