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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Alexandrina et al. (2026) studied this question.
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