In the modern society, social media has been embraced by businesses as a useful and necessary tool to attract the customer’s attention. Tons of companies are using Facebook, Twitter, LinkedIn, etc. to market their brand, hire potential employees, and bridge with other customers and partners. On the other hand, consumers have taken to the social media-sphere in droves, sharing opinions about products and companies they are loyal or connected to in some way. Recently, companies have acknowledged the powerful social media can be from an investor relations’ perspective, but it is now becoming clear path that if a company doesn't take control of investor relations, other customers and partners will dominate this field.
The heavy policy on disclosure coupled with the amazing speed with which information (good, bad, true or false) travel through the social network has kept many investor relations departments worry about using social media to promote their company’s image. There is a small chance for investor relations to avoid the risk from social media, but if companies don't control and monitor the information, the risks from the social network and word of mouth can speared the news faster than you may think.
The heavy policy on disclosure coupled with the amazing speed with which information (good, bad, true or false) travel through the social network has kept many investor relations departments worry about using social media to promote their company’s image. There is a small chance for investor relations to avoid the risk from social media, but if companies don't control and monitor the information, the risks from the social network and word of mouth can speared the news faster than you may think.
In 2007, there was an event that cause a lot of attention from many Internet users around the world, Eric Jackson used social media to create scandal inside one of the largest companies on the internet: Yahoo – the giant in media portals. In the online world, Jackson was a relative nobody. He ran a blog that can collect just more than 10 visit perday, and a Twitter account with a small followers. One day, he decided to speak his opinion about Yahoo through his social network, a company that he held a total of 96 shares. He wrote a post on his blog expressing his dissatisfaction with the leadership style of Yahoo CEO Terry Semel, and attached in his blog some of the videos. He asked his fellow investors to band together for change, and his post went viral. Shortly, Jackson had built a pool of Yahoo investor relations that represented nearly three million shares of Yahoo. It wasn't long before Semel resigned his post as CEO, and Eric Jackson's efforts were considered the biggest contributing factor to Semel's downfall.
As you can see, the power of investor relations is really powerful and unpredictable. If the company is able to manage this, it will avoid some major difficulties.
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