Archive for the ‘Corporate Governance’ Category

Social Media — What is it and is it Risky?

Thursday, August 6th, 2009

Social media has become a fixture on communication agendas across the country, fueled by the fact that Americans’ spent 73 percent more time on such networking sites in the past year alone. But according to a new survey, social media use is also generating its share of corporate heartburn.

Recent research conducted with Russell Herder confirms that confidence exists in social networking as viable communication outreach, but so do worries about the potential liabilities involved. Concerns regarding social media use were acknowledged by some eight in 10 businesses participating in the national study, which was conducted over the month of July.  Fifty-one percent fear social media could be detrimental to employee productivity, while almost half (49%) assert that using social media could damage company reputation.

Despite these apprehensions, social networking is being viewed as a key strategy. According to survey results, eight in 10 senior management, human resource and marketing executives believe social media can enhance relationships with customers/clients and build brand reputation. Almost 70 percent feel such networking can be valuable in recruitment, as a customer service tool (64%) and used to enhance employee morale (46%). The most popular vehicles being used include:


Business Succession Planning

Thursday, June 11th, 2009

One of the most important concerns facing business owners today is how to effectively transfer the business to the next generation of family, a key employee or a new owner.  Business succession planning seeks to create a plan to manage all the aspects of the transfer, making sure the transition is smooth and non-disruptive to the business.  In family businesses, one of the most important aspects of business succession planning is making sure communication lines are open and the relationships are appropriately addressed.  Unfortunately, too often succession planning is not addressed early enough or neglected completely resulting in significant complications at the time of the desired transfer.  Succession planning should be considered well before the anticipated exit time so that proper planning and structure can be put into place.  Below are 10 important issues to consider when think about business succession planning. (more…)

Piercing the Corporate Veil

Friday, June 5th, 2009

You have probably heard that observing corporate formalities is very important to protect you from “piercing the corporate veil” but what does that really mean and what should you do as a business owner or manager to ensure corporate formalities are complied with in an appropriate manner? (more…)

Do I Really Need a Board of Directors

Friday, April 17th, 2009

Unfortunately, many private companies don’t pay close attention to the importance of a strong board of directors, including who to put on the board.  Owners often think of this role as perfunctory and/or not necessary.  On the contrary, a strong board of directors can be vitally important to a small, medium or large company and depending on the size of the company, the board can play different roles.