Corporate Governance Practices in the Context of the Pandemic Crisis

Abstract

What is the impact of the COVID-19 crisis on the corporate governance practices of firms? In this paper, first, we discuss the impact of COVID-19, then analyse how corporate governance practises have been affected and conclude with recommendations of policies to be adapted by firms in principle to cope with pandemics of this magnitude. The pandemic crisis triggered unprecedented changes in the manner the firms are governed and managed. This discussion suggests that pandemics have an impact on the governance of firms and how going forward, firms should be prepared to face any eventualities by paying attention to business continuity plans in the event of natural disasters and pandemics. Overall, this paper provides some of the initial insights on how COVID-19 pandemic has given rise to both opportunities and challenges for firms. This article recommends a corporate governance policy focussing on sustainability, well-being and IT infrastructure of coping with any future challenges arising from the aftermath of the pandemic crisis.

Keywords: Corporate governance; board of directors; stakeholders; pandemic crisis

JEL Classification: G3, G30, G38