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How to inspire stakeholder confidence in times of uncertainty

Companies should use the annual general meeting (AGM) to show how they are prepared for risks and investing for long-term growth.


In brief

  • The AGM is an opportunity for the board and management to communicate compelling long-term and strategic plans for the company.
  • This is crucial as stakeholders expect companies to clearly articulate how they are addressing key issues amid heightened uncertainty.
  • These include the use of technological tools to enhance risk management, sustainability and the impact of emerging technologies on job roles and skill sets.

The term “VUCA” (volatility, uncertainty, complexity and ambiguity) was introduced close to 40 years ago to describe the complex macro environment that the world was in then. Today, VUCA is no less relevant. For businesses, uncertainty is perhaps the biggest challenge — one that is the most difficult to prepare for or respond to, yet it is a burning concern on many shareholders’ minds.

The upcoming annual general meeting (AGM) season is an opportunity for the board and management to demonstrate that they are not just responding to disruptions but also proactively anticipating changes and acting intentionally to shape the future of the organization. 

To do so, they need to communicate a compelling narrative on the company’s long-term and strategic plans and inspire confidence among stakeholders. 

Pivot agilely amid winds of change 

Globally, the escalation of geopolitical tension is impacting trade, supply chains, business operations and economic activity. That said, the current economic outlook for Singapore shows spots of optimism. There is continued labor market resilience, consumer spending strength and stronger productivity growth. However, companies remain subject to the risks of elevated global inflation and potentially weaker growth amid shifts in the geopolitical equilibrium. 

At the AGM, stakeholders would want to hear how the board and management are building agility and resilience in the company’s operations such that they are both seizing opportunities and managing risks. Explaining the company’s risk management posture and demonstrating that there is continuous horizon scanning and risk monitoring are important. 

For example, it would be useful to articulate how the company is investing in data analytics and other technological tools to augment its risk management capabilities and detecting, mitigating and responding to material risks. Insights into how the chief risk officer and other management members are collaborating to proactively manage risks before they escalate and how effective board risk oversight is enabled would also be valuable.

Invest differentially for the long term 

Many companies entered the new year prudently with a strong focus on capital conservation and cost management. However, companies cannot afford to let financial caution hold them back from necessary investments for long-term growth, such as those related to technology and sustainability. It is therefore necessary to communicate how the management is strategically reducing costs while reinvesting capital to develop capabilities to support growth.

 

Given how artificial intelligence (AI) — and its evolution into more advanced forms like generative AI and agentic AI — continues to capture the world’s imagination, stakeholders would be interested to understand how the company is harnessing the technology’s potential for growth and innovation. Stakeholders are also increasingly concerned about the ethical implications of AI technologies, prompting them to ask critical questions regarding the governance of AI use in the organization and decision-making.

Sustainability is another area that is material to creating long-term value and strength. It is hard to disagree that climate action is an enduring imperative. Given current geopolitical and financial headwinds, some companies may consider pausing sustainability-related investments in the short term. Those that keep their sights on the long game would set themselves apart from the competition. 

 

According to the 2024 EY Global Corporate Reporting Survey, stakeholders’ focus on nonfinancial drivers of value is growing. Over 80% of finance leaders surveyed in Singapore said they have noticed investors asking more questions in this area compared with two years ago. Those that show a commitment toward achieving sustainability goals and robust nonfinancial reporting and a roadmap for this are expected to be viewed more favorably by investors for their long-term strength.

Turn talent complexities into an advantage 

The talent landscape has seen significant shifts in recent years. Today, workplaces are seeing five generations working together. This adjacency highlights the differences in experiences, skills and outlook, just as technology is accelerating the pace of change and bringing different generations closer together. The opportunity to harness diverse skills and viewpoints across generations has never been greater, notwithstanding greater complexities. 

 

At the same time, technology like AI is morphing job roles and demanding new skill sets. This has led to a renewed focus on re-skilling, productivity and the company’s talent attraction and retention strategy in a competitive market. Stakeholders would be keen to understand the nexus between investments in technology transformation and workforce development or disruption as part of the overall business strategy.  

The company should help stakeholders understand how the overall business strategy addresses the impact of emerging technologies on job roles and skill sets. 

Prepare to engage meaningfully 

AGMs can fail to deliver for stakeholders when they lack authentic engagement and transparency from the board and management. Inadequate preparation for addressing pressing issues like those mentioned earlier can result in missed opportunities for constructive dialogue and building trust. Even as ambiguity prevails in the wider landscape, the board and management can embrace the AGM as an opportunity to communicate the company’s performance and strategy with clarity and confidence.

This article was first published in The Business Times on 20 March 2025.

Summary

To help inspire confidence among stakeholders amid heightened uncertainty, the board and management can use the AGM to communicate compelling long-term and strategic plans for the company. These should address issues that are of significant interest to stakeholders, such as the use of technological tools to enhance risk management, sustainability and the impact of emerging technologies on job roles and skill sets.

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