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.