Corporate Secretary Strategic Agency for Crisis Communication and Reputation Recovery During Asset Divestment

Elke Alexandrina; Sophia Bernadette; Engle Cleopatra S. Shah; Eglee Ortega Fernandez

doi:10.33050/atm.v11i1.2740

Authors

Elke Alexandrina Institute of Communication & Business, LSPR Author
Sophia Bernadette Institute of Communication and Business, LSPR Author
Engle Cleopatra S. Shah Institute of Communication and Business, LSPR Author
Eglee Ortega Fernandez Universidad Complutense de Madrid Author

DOI:

https://doi.org/10.33050/atm.v11i1.2740

Keywords:

Asset Divestment, Corporate Reputation, Corsec, Crisis Communication, SCCT

Abstract

Corporate asset divestment is commonly examined as a financial restructuring mechanism, yet its reputational risks and the role of governance communication remain insufficiently understood.This study examines how the Corporate Secretary (Corsec) manages reputational risks during the asset divestment of PT Eagle High Plantations Tbk (EHP), which triggered public assumptions of financial distress and bankruptcy. A qualitative single-case study was conducted using semi-structured, in-depth interviews with internal executives and an external strategic communication expert. Interview data were triangulated with official regulatory disclosures and analyzed through a two-cycle thematic coding process. The findings indicate that the Corsec moved beyond administrative responsibilities to perform an Expert Prescriber role. Guided by Situational Crisis Communication Theory (SCCT), the Corsec coordinated Justification and Rebuild strategies to explain the efficiency-driven rationale for divestment and communicate corrective actions through transparent regulatory disclosures. These practices were associated with reduced stakeholder uncertainty and efforts to stabilize corporate reputation, particularly regarding Credibility and Trustworthiness. By integrating Corsec agency, SCCT response strategies, stakeholder attribution, and Fombrun’s reputation dimensions, this study provides a governance-oriented explanation of crisis communication during internally initiated restructuring. The findings offer practical insights for corporate governance and communication management, although reputational changes were not quantitatively measured.

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Author Biographies

Elke Alexandrina, Institute of Communication & Business, LSPR

Faculty of LSPR Business School
Sophia Bernadette, Institute of Communication and Business, LSPR

Faculty of LSPR School of Communication
Engle Cleopatra S. Shah, Institute of Communication and Business, LSPR

Faculty of LSPR Communication School
Eglee Ortega Fernandez, Universidad Complutense de Madrid

LSPR Communication School

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