Reputation in a Digitized World: Act Responsibly, Always

The digitization of our world has changed the way we do business. The digitization has drastically decreased the overall transaction costs between different parties, be it an opportunity for some or a threat for others. Some companies like Apple, Amazon, Airbnb have embedded this digitization into their core business model. But other more traditional companies are possibly following suit, embracing the benefit and productivity gains of information communication technology.However, social media are also exacerbating the risk to reputation for every company globally. Because of this increased transparency and pressure on companies to address key stakeholders’ concerns using social media to get their message heard, board directors need to consider ways to include these demands while at the same time not jeopardizing their fiduciary duty to achieve the financial objectives.