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Role Of Leaders In Establishing Relationships With Shareholders

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Role Of Leaders In Establishing Relationships With Shareholders
Role of Leaders in establishing relationships with Shareholders
Politics of Leadership in Global Economy
Guru Auti
Globe University

Abstract
The goal of this paper is to analyze the role of a leader in establishing a positive relationship with the shareholders. I have chosen the article by James D.C. Barrall, Latham & Watkins LLP. (2012) to research further on this topic.
One of the primary tasks of the management is value creation (Lichtenstein, Scott and Dade, Pat. 2007). The role of the leaders in the value creation (share holder value) process is very critical. The article by James D.C. Barrall, Latham & Watkins LLP (2012) proposes that the leaders can establish a positive relationship with shareholders by using a comprehensive shareholder engagement program.

Shareholder Engagement Program Shareholder engagement allows companies to capture meaningful efficiencies (James D.C. Barrall, Latham & Watkins LLP, 2012). Engaging with shareholders can help companies gather information about investor concerns and make educated decisions about whether it is in the company’s best interests to act on these concerns (James D.C. Barrall, Latham & Watkins LLP, 2012). Communication between the leadership and shareholders is one of the key factors of the shareholder engagement program.
A leader plays a key role in formulating a comprehensive shareholder engagement strategy where he/she needs to establish paths for shareholders to communicate. A few key elements of a comprehensive shareholder engagement program include:
Shareholder Communications with Directors
There are different types of communication processes. Some companies permit shareholders to contact directors via email, mail or fax. A few require the intervention of a secretary who directs the communication to the appropriate director or committee.
Shareholder communications to the board can provide a valuable source of information about what issues matter most to shareholders and focus a



References: 1. James D.C. Barrall, Latham & Watkins LLP. (2012), Building Relationships with Your Shareholders Through Effective Communication. 2. Lichtenstein, Scott and Dade, Pat. (2007), The shareholder value chain: values, vision and shareholder value creation. Journal of General Management Vol. 33 Issue No. 1.

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