Social media offers companies many opportunities to reach their shareholders and broaden the realm of financial communications. However, with new rules and regulations enforced by the Security Exchange Commission (SEC), there has been some hesitation from public companies to include investors in their social media strategy and communication plan.
Public relations firm, MWW Group, offers insight into this topic of investor relations in “Social Media and Financial Communications.”
This article gives advice and guidelines for companies who are trying to understand this notion of utilizing social media to reach shareholders, as well as how to do so while following SEC regulations. The firm also provides companies with insight into how social media will be beneficial to their financial communications strategy and strengthens relationships with their investors. With updates from sites like Twitter and Facebook, shareholders can gain frequent need to know information instantly from a company. Visual web sites like YouTube and Flickr allow investors to connect a face and a voice to the company they are interested in. This helps establish an image and identity for a company, creating a more personal relationship. Social media encourages two-way communication between a company and its audiences through comments and feedback. By reaching out to shareholders in this manner, the company creates another successful way to distribute information, thus strengthening financial communications and investor relations strategy.
To wrap up, in a 2009 panel discussion titled “The Evolution of Financial Communication,” Eileen Cassidy Rivera, VP of Communications and Investor Relations at Vangent Inc, argues that with the rapidly growing presence of people online, today’s investor relations officers (IROs) must find new and innovative ways to distribute information out to their relevant audiences. She concludes that social media allows IROs to reach audiences in a more creative manner, expanding away from traditional media into the modern developments of networking technology.