Corporate governance as a tool supporting management during a crisis

Abstract

Purpose: The purpose of this paper is to show that the code of good practice and the recommendations concerning CG – corporate governance in listed companies, through increased transparency, can be a tool supporting management in the period of crisis. Design/methodology/approach: The article is based on a critical analysis of the literature, mainly in the field of corporate governance, current press publications, as well as an analysis of secondary data of listed companies in the period June-September 2021. Findings: The considerations presented in this paper show that CG can be perceived as a tool supporting management, especially in times of crisis which will enable the company to have better transparency. The principles contained in the code of good practice will serve as recommendations for companies in the CG area. Research limitations/implications: The pilot study performed among all listed companies showed high compliance with companies with regard to the completion of the declaration on the use of CG in the light of the amended guidelines in 2021. Practical implications: The presented considerations are partly theoretical but are supplemented with the results of the analysis of the actual activities of entities in the area of governance during the crisis. They can be useful in practice for managers of various enterprises because they present the tools of CG that can be effectively used to improve the functioning of a company in a crisis. Social implications: Presenting governance in this light may raise greater interest in the concept. Its application in practice may have multifaceted beneficial social, economic, and even environmental consequences. Originality/value: The study shows a specific approach to the issues of CG. It is not only a well-perceived code of good practice but above all a tool supporting management and recommending solutions to companies in a specific time of crisis. The paper fills the cognitive gap in the studied area.