‘Social Media’ are Two Words IROs Shouldn’t Fear

Social media probably are the two most revered words in investor relations today.  Although the medium is no stranger to consumer brands, social media is just now being tested by corporate communications departments as they look to engage investor audiences.
SEC rules post-financial regulation reform have created an onslaught of new communication channels for companies, social media being high on the list.   These new channels provide a robust platform for companies to listen, share and engage with multiple audiences like never before.
Most publicly traded companies can benefit from some type of social media engagement.  Consumer and investor audiences are being influenced by social networks and the blogosphere.   The trick is adopting a strategy that resonates with an organization’s key audiences and objectives.
Programs can be large or small in scope, but never implemented because of the status quo.  A good rule of thumb is to determine if social media fits into a company’s communications objectives, rather than how the communications objectives fit into social media.
Adopting effective social media strategies can be quite daunting, since these platforms are “new” to investor relations audiences.  But companies cannot ignore the influence of blog posts, tweets, video and conversation threads.  Engaging in these new media builds social capital, a valuable network that ultimately can enhance reputation, not to mention shareholder value.


George Medici, gmedici@pondel.com

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