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Investor Relations Public Relations: Investor Term Paper

A new area that a public relations specialist in investor relations must deal with in the current environment is that of the new phenomenon of grass-roots Internet reviews. "Companies have always had to deal with complaints and criticisms -- both deserved and not. But the Internet has drastically increased the potential damage to a brand or a company's reputation. Frustrations with a company's practices, products and service that once were confined to relatively small circles now reach complete strangers around the world" (Martin & Bennett 2008: 6). Many companies have taken a disastrous 'do nothing' approach or have simply underestimated the influence of the speedy new media to transmit negative and positive buzz about good and bad investment prospects: "The majority of companies we contacted were either unaware their company was the subject of attacks or were taking a 'wait-and-see' approach in deciding what to do about it (Martin & Bennett 2008: 6).

Ignoring such comments, or worse, threats of legal action against supposed slanderers, rather than proving helpful have instead damaged many company's reputations and brought the need for public relations with investors to the forefront. In contrast, through careful monitoring of such sites, companies have been able to nip potential public relations problems in the bud. An article critical of Home Depot Inc. was followed by 7,000 negative posts on one website. Urged on by his public relation specialists, "Home Depot CEO Frank Blake responded with a post of his own on the website, saying he planned to dispatch "a dedicated taskforce -- working directly with me -- that is ready and willing to address each and every issue raised on this board" (Martin &...

The company's investor relations publicity directors have focused on pursuing a strategy that lets bloggers know that the company listens to what is being said on the Web. If "someone posts something inaccurate on a blog, the company goes on the blog -- sometimes on the same day -- and corrects it. Similarly, if someone posts something positive, the company thanks them" on the blog or website (Martin & Bennett 2008: 6).
Maintaining contact with current and prospective investors is a critical aspect of maintaining strong company growth, especially given the increasingly beleaguered economy and the diversity of global investment opportunities. The purpose of such contact, through email or correspondence at shareholder meetings is always to provide both current and potential investors with an accurate portrayal of a company's performance and prospects. From crisis management in light of a scandal, to slow and steady education and reputation enhancement, investor relations will become an even more critical aspect of a company's public relations strategy in the future, motivating more and more universities to offer special coursework and certification in the field, as well as drawing more and more individuals to specialize in this area.

Works Cited

Dowling, Graham & Warren Weeks. (2008, Spring). What the media is really telling you about your brand. MIT Sloan Review. 49. 3.

Christopher L. Martin and Nathan Bennett (2008, March 10). What to do about online attacks.

Wall Street Journal (Eastern Edition), p. R.6. Retrieved June 8, 2008, from ABI/INFORM Global database. (Document ID: 1442818571).

UC Irvine extension presents…

Sources used in this document:
Works Cited

Dowling, Graham & Warren Weeks. (2008, Spring). What the media is really telling you about your brand. MIT Sloan Review. 49. 3.

Christopher L. Martin and Nathan Bennett (2008, March 10). What to do about online attacks.

Wall Street Journal (Eastern Edition), p. R.6. Retrieved June 8, 2008, from ABI/INFORM Global database. (Document ID: 1442818571).

UC Irvine extension presents first and only online program in investor relations." (15 Jun
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