Trylon Communications  - August 2005
       

PR and Corporate Governance

Recent news has been rife with corporate scandals and Sarbanes-Oxley repercussions that have led to a new corporate mantra: transparency. While executives ponder what they want to share – and how – public relations should figure prominently into the mix.

Today’s investors expect full disclosure. They don’t want to be caught off guard, finding out about facts after it’s too late to take action. Today’s technology allows investors to track their portfolio companies in real time – and they want the same timely access to news and information as Wall Street analysts.

Consider the benefits of uncovering an accounting error (or worse) and reporting it to your auditors before it leaks out. You can present the situation, describe the remedy, and provide a detailed action plan to ensure that it doesn’t happen again. The media isn’t chasing down rumors and the markets can react with a measured response instead of prompting panic selling.

Executives are always eager to get “good news” out to their investors and the media, while trying to downplay or hide negative news. The current business climate no longer tolerates cover-ups and obfuscation. PR professionals can be vital in helping companies determine what constitutes news and how to get it to the public. A proactive PR initiative will foster goodwill in the marketplace while providing a solid framework for transparency and proper corporate governance.