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The influence of the mainstream media has infiltrated every aspect of our life, including how we interact with others and how we do business. Today, business managers increasingly realise the influential role played by the media in non-market and market contexts (An & Gower 110). This section illuminates some underlying issues related to the media in contemporary business and management.
Role of the Media in Non-Market Environment
The role of the media in the non-market environment is multifaceted, as it is demonstrated that media coverage not only alerts people and interested players to non-market issues but also raises concerns about the policies and practices of organisations. In this respect, the media has been at the forefront in exposing firms that entrench corrupt and dishonest practices (Gomulya & Boeker 1761).
Additionally, media coverage has been credited with exposing organisations with weak environmental sustainability policies and rallying campaigners to take action against such enterprises (Singh 256). Such roles not only avail critical knowledge to society but also facilitate a nonmarket strategy by disseminating information generated by interested parties such as rights groups.
Although the media has been credited for substantially minimising the costs of collective nonmarket action, it continues to receive criticism from various quarters for representing certain interests which appear biased and only intended to achieve particular ends.
This is consistent with the framing concept, which describes how the media serves as a powerful mechanism that could be employed to define and solve problems as well as shape public opinion and discourse with regard to various non-market issues (An & Gower 107). Lastly, the media can be used as filters of ideas and information on nonmarket issues with the view of placing such information at the doorsteps of concerned firms for possible action (An & Gower 111).
Media’s Influence on Contemporary Management
Media’s influence on contemporary management is enormous, as demonstrated by how media coverage has mainstreamed corporate social responsibility, corporate governance, accurate financial reporting, as well as ethical business practices. Due to the investigative eye of the media, managers of organisations are today exercising more caution on how they deal with their employees and how they manage their corporate affairs. Indeed, available literature demonstrates that “the media can serve in a monitoring role to minimise agency costs by reducing information asymmetry between a firm’s management and external constituents and inflicting reputational costs on firms and managers that act contrary to shareholder interests” (Bednar 131).
The media has been used to signal the economic ills done by organisations as illustrated in an article appearing in the Guardian, where major companies headquartered in Europe have been accused of using intricate webs of internal loans and interest payments to substantially reduce their tax bills (Bowers par. 3-4). Such an article underscores the positive and enlightening role played by the media in streamlining business practices.
From the ongoing, it is clear that the media has a central role to play in encouraging ethical business practice. To conclude, it can be demonstrated that the media encourages and reinforces ethical business practice by reporting on corporate governance scandals, spearheading shareholder activism to protect the rights of parties, alerting regulators on the need for intervention, coercing firm management on the need to institute reform, and influencing the views and actions of policymakers.
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