CEOs schooled on crisis and investor communication

An international communications expert, Robyn de Villiers, Chief Executive Officer of Arcay Communications, an internationally acclaimed communication consultancy in South Africa has called on corporate businesses in the country to pay attention to investor relations and crisis communications because of its positive impacts on corporate reputation. 

Speaking at a CEOs luncheon lecture on the theme, ‘How Crisis and Investor Communications affect Corporate Ghana’ in Accra, she said as pressure mounts on the investment community to choose the most attractive option, effective investor relations provides a channel for time-sensitive and complex information to be presented in favourable light to potential stakeholders and influencers.

She said investor relations is achieved when there is relationship between a listed company and its private investors, securities analysts, fund managers and employees and is founded in the accurate portrayal of the company’s performance and prospects.

“Today’s stakeholder’s priorities are the quality of the company’s products and services and trust and confidence and it is therefore up to businesses to get the right information across,” she said.

Mrs. De Villiers said the need for companies to integrate social, environmental and economic issues especially the communities in which they operate, noting companies these days are integral to society, being considered as much a citizen as a natural person, as such being bound to responsibility.

In crisis communication she said the inclusivity of stakeholders is essential to achieving sustainability and regaining reputation while advising it is always good for companies to restrict communication in times of crisis.

“Customers today expect reliability, investors and suppliers demand credibility, employees expect trustworthiness while communities expect responsibility,” she added

She said companies that are able to maintain their reputation attract investor interest, create customer preference for its products and services and are also able to gain public trust in times of crises.

She said that nothing tends to compromise companies and often leads to market share loss, heavy litigation costs and significant declines in value.

“In today’s environment, brand loyalty is weaker coupled with greater public scrutiny of companies and hostile political and economic climates for businesses in the country. Without careful communication management, issues impacting your company that might have been harmless embers in the past can become a raging blaze within seconds,” Mrs. De Villiers noted.