Organizations and Stakeholders



Social media and investor relations

investor relations handshake

google images

Investors are key stakeholders to any organization, and it is important to keep the communication lines open. Companies using social media are starting to adopt social media platforms for shareholders as well as customers and employees.

Q4 Web, software that helps corporations manage content and disclosure, gives great examples of the tools you can use social media for IR such as RSS feeds, web site monitoring, and online newsrooms.

What are the benefits of using social media for IR?
• Have control over web disclosure
• Be more transparent to the SEC and in compliance with Reg FD updates
• Have more communication vehicle to disseminate information
Report records and analytics

IR social media platforms in the works
While some companies are waiting to see how other companies have applied social media to IR, other companies like Sun Microsystems, Dell, and eBay are a few early adopters of using social media for IR.

sun-microsystems

Sun Microsystems uses social media for IR. google images

Sun Microsystems has an “Official Investors Communications Portal” that highlights everything from CEO webcasts to Sun stockholder information. Sun Microsystems does not have a separate Twitter page for investors, however, the Sun Microsystems Twitter page updates followers in what software the company has recently invested.

Dell has it’s own IR blog, DellShares, that includes posts about Dell’s earnings, acquitions, and analytics. The blog moderators encourage positive and negative feedback on the site and will respond to comments. DellShares also has its own DellShares Twitter page. The following video is Dell CFO, Brian Gladden, discussing Dell’s Q4 earnings.

ebay logo

Ebay also uses social media for IR. google images

eBay, the Grand Central Station of online shopping, has an IR blog, eBay Investors. This site reports quarterly earnings, stock quotes, and presentations from various webcast events.

Don’t put all your eggs in one basket
A key theme to adopting a social media platform is to add lines of communication. You probably shouldn’t replace your traditional IR communication platform with social media. The social media is just another way to help your organization be more transparent to investors and the SEC.

Is your organization ready to use social media to interact with shareholders?

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Comments

  1. I can see why transparency is such an important issue in investor relations, and how social media help to increase it. I am not an investor so of course I have never taken interest in these sites (nor have I even heard of them until now!), but they are quality resources for these shareholders. The transparency and interactivity of social media help build trust, which is VERY important when it comes to money. In this social media approach, companies invest in their investors, and their investors invest in the company in return. It’s a tongue twister but hey, who knows — perhaps these people will invest even more money because of these social portals.

    | Reply Posted 7 years, 7 months ago
    • You are right, Nataliya. Transparency is key, especially when talking about where money goes in a company. This trend of transparency really took off after several big companies’ CEOs ran into some trouble a few years ago. Finally, according to Edelman’s Trust Barometer, trust in business is increasing. Do you think social media were a contributing factor?

      | Reply Posted 7 years, 7 months ago
  2. I also agree with having investor relationships. Its important within any company to have transparency with investors for many reasons such as financial. But who are the investors? I always ask myself that. Are they the other big companies that run everything? And what is the point of other companies investing in others? I thought companies wanted to sell what they had to offer? Either way, it is a successful move for companies to use social media in different ways for investor relationships. It allows for an actual relationship to form.

    | Reply Posted 7 years, 6 months ago
  3. * Kristin Dyer says:

    Learning about investor relations in class and through this blog post was very interesting to me. As a student you sometimes don’t think about this side of public relations even though it is probably one of the more important aspects. I like your examples about companies and websites that are transparent about their investor relations. I think that organizations need to keep a close relationship with their investors to ensure their success as a whole.

    | Reply Posted 7 years, 6 months ago


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