The Integral Role of Ethics in Investor Relations

When it comes to discussing financial communication from a PR agency and investor relations, this is an area that needs to be redefined. In fact, it’s this bedrock of trust on which all else depends. It’s common for one could feel a little confused but here’s clarity.

Ethics in a broad sense are defined as moral principles or rules of conduct that guide behaviour when it impacts others. Honesty, fairness, diligence, and care and respect for others are some of the key ethics that guide businesses and should lead finance ial communication as well.

The PR industry on the whole is looked at as one where PR professionals will go to any extent to ensure publicity. After all, one has the choice to tell the whole story, push a half truth or lie. However, education and training both at the personal and on professional level are the key to establishing ethical decision-making.

What makes ethics in PR so important when it comes to investor relations is not just about holding a moral compass, it has many far reaching consequences. One of the big facts is that PR activity has a direct impact on a company’s stock price. This has a huge snowball effect that hits individual investors, retirees, employees, corporate and institutional investors and other organizations.

How to build investor confidence

When one has reliable, honest conversations with the investor, this is something that will build confidence and trust. Gaining this trust builds a strong bond between the investor and the company. It’s PR that acts as the bridge between the company and investor. A clearer message also helps. Instead of trying to stuff bad news under the carpet, an honest approach makes a company rise high in the eyes of its investors both in terms of ethics and trust. Make sure the response to a crisis is quick, in many cases this can salvage a company’s trust and the reputation it holds in the eyes of investors.

Safeguarding confidentiality
When it comes to PR in investor relations, all information is not meant for public consumption. A PR agency does not become the owner of the
information shared by clients but remain mere custodians. This is fair enough as large amounts of capital, trust and brand image is at stake.

Stay regular in communication

It’s ethical to keep in touch with your investors in a regular basis. Issue press releases on a regular basis updating investors of developments in the organization.  The communication must be one that acts in good faith and responsibility. There must no misrepresenting material facts that allows one’s independent judgment to be subordinated.

Advice clients right

Urge the client to build the confidence of investors by working ahead. This means getting facts and factoids out from team experts and keeping it handy, so that investors can be answered with confidence. It also includes researching answers to likely questions from investors and where the company stands in terms of market trends and so on.

For further queries regarding public relations please contact

CATALYST PUBLIC RELATIONS PVT. LTD.,
D 3, II Floor, Gemini Parsn Apartments,
599 Anna Salai, Chennai – 600 006.
Mobile Number: +91 98410 47455
Telefax: +91-44-2822 0008
Email: contact@catalystpr.in, catalystpr@gmail.com

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