Failing to take advantage of the Web

Very interesting article in Tuesday’s FT, nicely followed up on The FHD Forum, about the future of corporate reporting and the reluctance of major bluechips to embrace the internet — continuing to fuel the online vs offline debate.

“Companies are failing to take advantage of the unique opportunities the internet offers for communicating with shareholders, in spite of lobbying long and hard for the privilege, according to a survey of FTSE 100 companies…”

On The Forum, Chris North then quite rightly identifies that:

“…with one or two exceptions, our biggest companies are so far failing to take advantage of the opportunity to build their online and interactive brand communications.

But it’s perhaps not surprising. For a number of reasons.“

Although there have been recent changes in corporate governance and legislation, that will ultimately affect how major public companies communicate with their shareholders, when combined with an obvious increase in cost (stemming from a period of cross-over), it really isn’t difficult to see why it is that large public organisations are taking their time. But it really is a matter of time.

On the other side of the pond, because of Sarbanes-Oxley (post Enron, WorldCom, Arthur Andersen scandal) there will no doubt be an even bigger delay to major US public companies adopting online corporate communications. And with the disclosure of financial information and performance reviews being kept such a close guarded secret, obviously until results day, this trend will have an effect of how companies embrace ‘new’ web tools and technologies — and even Jonathan Schwartz (CEO, Sun Microsystems) has to abide to corporate governance, who has been (for some time now) credited for embracing the web more than most are prepared to — but you would kind of expect him to though.

The adoption of the internet by large companies will start from the very centre and work its way out (or from the top down). But overall it really isn’t any wonder why PLCs are taking their time.