Abstract
Stakeholder engagement is a critical component of successful business rescue processes, determining the trajectory of companies facing financial distress. This article explores the role of key stakeholders, such as creditors, shareholders, employees, and regulatory bodies, in shaping the outcomes of business rescues. Through case studies of both successful and failed business rescue efforts, the importance of early, transparent, and inclusive engagement is highlighted. Successful cases demonstrate that collaborative and trust-building practices can align stakeholder interests and facilitate effective decision-making, while failures often result from poor communication, exclusion of key stakeholders, and the mismanagement of conflicting interests. The article also examines challenges such as time pressure, uncertainty, and legal disputes, which complicate stakeholder engagement in rescue efforts. Additionally, future trends in stakeholder engagement are discussed, including the growing role of technological innovations in communication and the shift toward more inclusive stakeholder models. The need for regulatory reforms that strengthen stakeholder rights is also emphasized. Therefore, this article underscores that companies which prioritize robust stakeholder engagement are more likely to navigate financial distress successfully, while those that neglect these practices risk collapse. The article contributes valuable insights into the evolving landscape of business rescue and stakeholder management, offering practical lessons for future restructuring efforts.
Citations
IRE Journals:
Abby M Shem , Munashe Naphtali Mupa
"The Role of Stakeholder Engagement in Business Rescue: A Legal and Strategic Perspective" Iconic Research And Engineering Journals Volume 8 Issue 4 2024 Page 38-56
IEEE:
Abby M Shem , Munashe Naphtali Mupa
"The Role of Stakeholder Engagement in Business Rescue: A Legal and Strategic Perspective" Iconic Research And Engineering Journals, 8(4)
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
Important Links
For Authors
Volume 7:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 6:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 5:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 4:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 3:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12