In today’s business landscape, corporate reputation has become an asset as valuable as capital and other resources. Companies are no longer assessed solely on their financial performance, but also on how it builds and maintains relationships with its stakeholders. In this context, Public Relations (PR) emerges not merely as a communication tool, but as a vital instrument in realizing good corporate governance (GCG).
The widely recognized principles of GCG encompass transparency, accountability, responsibility, independence, and fairness, demand communication that is honest, open, and accountable to the public. PR serves as a bridge between companies and its stakeholders, ranging from shareholders and regulators to employees and the broader community. Information conveyed through PR not only fosters a positive image but also reflects the company’s commitment to transparency and accountability. Conversely, poor communication may create the perception that a company is withholding information, and in more severe cases, it may even constitute a legal violation if misleading information is disclosed.
The legal dimension of PR cannot be overlooked. Official company statements are often categorized as material information subject to regulatory requirements, such as those set by the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), and other applicable laws relevant to the company’s operations. Errors in disclosure can lead to serious consequences, from administrative sanctions to civil lawsuits. Misleading advertisements, inconsistencies between public reports and official financial data, or incomplete disclosures may all serve as grounds for allegations of legal violations. Thus, PR is not simply a communication channel, but an integral part of a company’s compliance system.
In practice, PR must operate hand in hand with the company’s legal team. This synergy is crucial, whether in routine communications such as press releases, annual reports, or the publication of corporate social responsibility (CSR) activities, or in crisis management when major issues threaten its reputation. PR is tasked with delivering narratives that reassure the public and maintain trust, while the legal team ensures that every message complies with applicable laws and does not create unintended legal risks. Without such coordination, a company risks being trapped in a double crisis: the loss of public trust and simultaneous exposure to legal consequences.
Positioning PR as an instrument of GCG is, in essence, a long-term investment. Consistent and transparent communication fosters investor confidence. Strong accountability strengthens the company’s legitimacy in the eyes of regulators. Meanwhile, properly communicated social responsibility initiatives enhance public acceptance. More broadly, PR supports corporate sustainability agendas, especially in an era where environmental, social, and governance (ESG) considerations are central. A company that can effectively convey its ESG commitments through well-designed PR strategies not only strengthens its image but also reduces the risk of misunderstandings that could harm its reputation.
Therefore, PR can no longer be regarded simply as a communication function, but rather as a concrete instrument of good corporate governance. Through effective collaboration between PR and legal teams, companies can ensure that every message builds a positive image while aligning with the applicable legal framework. Well-managed PR strengthens the foundation of GCG, safeguards business continuity, and positions reputation as a form of capital that both protects and enhances a company’s standing with the public and regulators.
If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.
Author:
Dewi Susanti