The Role of Stakeholder Engagement in Business Rescue: A Legal and Strategic Perspective

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@article{1706364,
      author = {Abby M Shem, Munashe Naphtali Mupa},
      title = {The Role of Stakeholder Engagement in Business Rescue: A Legal and Strategic Perspective},
      journal = {Iconic Research And Engineering Journals},
      year = {2024},
      volume = {8},
      number = {4},
      pages = {38-56},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1706364.pdf},
      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.},
      month = {October},
  }