What contribution does financial public relations make to the success of a company?
Some would argue that there is only one – albeit crude – measure of the success of financial public relations: share price or bond price or credit rating. There is no doubt that the majority of financial communications activity is aimed at creating more demand for shares in a particular company. Stimulate more buyers than sellers and share prices tend to rise.
There seems to be no reason why financial public relations should not be regarded as public relations support for a simple financial product – an equity stake in a company. However, although short-term success in increasing a share price may be welcome, ensuring that the City and City journalists have a clearer understanding of a company’s strategy is far more important. The real contribution that good corporate and financial public relations makes to a company is in gaining a clear understanding among financial audiences – what a company does, what it is trying to achieve and then making sure everyone knows when it meets or beats those objectives.
Keeping a company well understood and well thought of can only make a positive contribution to its share price performance. A company’s reputation also helps determine what a company can do: acquisitions, disposals, mergers, share issues. All major changes, whether of strategy, management or simply style, become more acceptable or even possible because of the market’s confidence in a company. In particular, this means confidence in its management and in its financial strength. It is in these areas that much of the hard work of financial public relations and its achievements is concentrated.
If we take the example of a business joining a stock market, good financial public relations is essential to a company’s ability to float and to cope with the intense public scrutiny of its activity and in particular of those who manage the business.
Alongside this, financial public relations has a role to play when a company does nor achieve its objectives. Whether perceived failure is due to external factors, a need for more time, failure to manage expectation or simply getting it badly wrong, clear explanation of what is to be done to put the situation right is a far better response than hiding behind closed doors and refusing to talk.
Managing expectations is clearly a key part of avoiding the perception of failure. However, the rules and regulations surrounding the dissemination of information about a publicly quoted company have made the whole area of managing expectations a public relations minefield.
- Ильина о.К., Тычинский а.А.
- Предисловие
- Методическая записка
- Content
- Marketing communication
- The role of public relations in the marketing mix
- Public relations planning in the marketing mix
- Marketing integration
- Campaign development
- Diagnosing the solution
- Product launches
- Improving brand equity
- Public Relations in the future marketing mix
- Step-by step planning process
- Exercises
- I. Discuss the following questions.
- II. Say what the following refer to in the text of the article under the headlines:
- Marketing integration
- III. Match the following definitions with the word-combinations below.
- IV. Complete the words.
- Internal communication
- Why communicate?
- What do people want to know?
- Some communication techniques
- Communication and leadership: the bp Oil experience
- Background
- Preparing the ground
- Creating the right attitude
- 1 The right attitude (see Figure 2.2)
- Attitude Technique Talent
- 2 The communication road map
- 3 The good communicator
- 4 The head office communication forum
- The virtuous circle
- Link with human resources
- Where is bp Oil now?
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- IX. Translate the following text from Russian into English.
- (Виктория Чупровская. Внутренний pr способен решить коммуникативные проблемы в компании. Www.Prlink.Ru)
- Сommunity relations
- Background
- What is community relations?
- Why bother?
- Methods used in a community relations programme
- One piece in the jigsaw
- Research
- Strategic objectives
- Project selection criteria
- A sponsorship example
- Donations policy
- How can the project be developed?
- Measurement and evaluation criteria
- Business benefits of the programme
- Employee participation in the community involvement programme
- Why bother involving your employees?
- How do you know that the programme is a success?
- Internationalising the programme
- Future developments
- Conclusion
- Exercises
- I. Discuss the following questions.
- II. Say what the following refer to in the text of the article under the headlines:
- IV. Complete the words.
- V. Translate the following word-combinations from Russian into English consulting the article.
- Financial public relations
- How do you define financial public relations?
- The basic task
- Corporate public relations
- What contribution does financial public relations make to the success of a company?
- What are the rules that govern financial public relations?
- Why has this business become such a major industry?
- Investor relations – Is it public?
- Coordination and consistency
- A time to speak and time to remain silent
- How does it fit in with other areas of public relations?
- In-house or consultancy?
- Vickers plc – a very brief case study
- Conclusion
- A checklist
- Exercises
- Corporate public relations
- Vickers plc – a very brief case study
- VIII. Translate the following text from English into Russian.
- IX. Translate the following text from Russian into English.
- X. Summarize the article “Financial Public Relations”.
- XI. Solve the following pr problem.
- Local government and government relations
- Why central and local government matter
- Effective public affairs
- Defining public affairs
- Central and local government
- Government
- Members
- Local government
- Gaining access
- Case studies
- Bail Bandits – a campaign to change the law
- The execution
- Trident – battle of the dockyards
- Key points
- Exercises
- Business to business public relations by Nigel Lawrence
- The customer rules
- How do you know it works?
- The trade press
- Getting it right
- Being prepared
- Getting the good news across
- Joining forces
- Conclusion
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- Public relations for non-commercial organizations
- The mission
- Not-for-profit pr
- The public presence
- Partnership – the sum is greater …
- Provision of services
- Involvement of interested parties
- Case studies – the human face
- Aims, objectives and realization
- Checklist for a successful campaign
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- Involvement of interested parties
- III. Match the following definitions with the word-combinations below.
- VI. Translate the following sentences from Russian into English using active vocabulary.
- VII. Translate the following text from English into Russian.
- Sponsorship
- Definition of sponsorship
- What makes a successful sponsorship?
- Do’s and don’ts of sponsorship
- The sponsorship package
- Sponsorship package checklist
- The public relations agency agenda
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- The sponsorship package
- III. Match the following definitions with the word-combinations below.
- IV. Complete the words.
- V. Translate the following word-combinations from Russian into English consulting the article.
- Environmental public relations
- Be aware of public concerns
- Chemicals industry – in the limelight
- The Rhône-Poulenc initiative
- Changing public perceptions
- Putting the case for recycling
- Looking to the future
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- III. Match the following definitions with the word-combinations below.
- IV. Complete the words.
- (Dorothy Seed. Global warming changes attitudes to nuclear power / Behind The SpinPublic Relations. Http://publicsphere.Typepad.Com/behindthespin/2006/11)
- Glossary a