Question

should nonprofit organizations post their strategic plan on their website?what about corporations? why?

Answer 1

Non profit organizations or corporations, for both strategic planning is essential for providing a collective goal, a sense of direction and aim for all the stakeholders to work in cohesion and collectively. It helps in aligning every person in the organizational in the required manner making them aware of the purpose of their tasks and what that means for the organizations goals and future plans. This helps them become more motivated and valued and brings in a sense of belongingness which further helps improve productivity and reduce attrition in the organization.

In any organization, corporations or non profit organizations, sharing the strategic plans publically either in shareholder meetings or website or through social media is useful to bring a sense of openness and clarity to the stakeholders of the organization like shareholders, regulators, market participants etc which helps investors and all market participants have better faitha and positive outlook even if the current scenario is bad. Investors would like to put their faith in organization who themselves have a plan and idea of how they would like to go forward. Not just investors but other parties like suppliers or customers would prefer to put their trust in counterparties who are open, and have strong management who have clear view of their way forward. Disclosures are essential in any market environment. This can be evidenced in the Basel norms with higher focus on disclosures by organizations to prevent any irregularities in organizations. Thus disclosures are essential to instill a sense of clarity, trust and openness in the market environment.

There are instances where disclosures can be harmful like in case of information related to financial results and possible. Mergers or acquisitions which can lead to frontrunning by many players and thus insider trading. Prudence should be applied to differentiate between the correct information that should be made public or kept secret.