Everything You Need To Know About Financial Public Relations
Financial public relations help build companies the financial reputation they require. The aim is to transmit a transparent and truthful culture of the organization. On the contrary, capture the essence and achieve a high degree of credibility with the society.
It is a very important area in which public relations specialists have very complex tasks since the image of financial institutions and citizens will depend on them.
It is imperative that this type of public relations is managed carefully. A financial institution provides credit or subsidy to the organization.
The target audience is characterized by being active. Seeking information on their own and not merely consuming information that companies and institutions send officially.
Opinion leaders and analysts stand out for broadcasting information to the public. Any company is interested in having a favorable opinion about the strategies and tactics.
It is worth mentioning that it is a big mistake to think that public financial relations could be managed without total transparency.
If you lie, society will end up knowing the truth eventually. The reputation of the organization in question would be damaged in a way that is almost impossible to recover.
Public relations in financial communications or with investors
Public relations has become a management discipline, which is responsible for managing communication between the organization and its public.
Its purpose is to establish bidirectional communication links. With the aim of satisfying the needs and desire of the organization and its publics.
With PR through the systematic process, IPCE (Investigation, Planning, Communication, and Evaluation). Can fulfill the double role of the professional’s work (advisor and communicator).
Public financial relations are the area of public relations in which the public administration sets the objectives. These are aimed at finances that are based on the communication of information. In finance, many people decide to buy or retain the shares of their company.
Within financial public relations, it is possible to highlight relationships with investors and financial communications.
The first is the communication that a company establishes with its investing public and with the financial community. Obtaining strategic opportunities to establish and maintain mutually beneficial relationships with shareholders. As well as other figures of the financial community, to maximize the value of the shares in the market.
For a business enterprise, financial audiences are identified in four groups. Members of each group either invest the money or provide information to third parties who want to invest capital.
Among them are the financial communities (brokers, bankers, fund managers, securities analysts, among others). Also, current shareholders and financial journalists who work with the media.
Every company produces an annual report since these reports are the main characteristic of financial communications. The preparation of a report means strategic planning, and planning that becomes a valuable communication tool for the company.
The preparation of these documents consists of four important stages. The stage of conception is characterized by being the phase after an investigation.
Since it is necessary that useful information that suits the needs of the company.
The execution stage is the stage to report the materials. They start with the size and the public of the company and the expected useful life for the report.
The drafting stage where the contents that will be carried out in the report are specified. Finally, there is the dissemination stage, which is proportional to the importance that the market has within it and the interest it has in public.
The CSR report
The term “Corporate Social Responsibility” refers to the benefit of the quality of life of society as a whole and promotes business conditions. This same part of the organizational culture of the company.
Banco Galicia was awarded in 2009 in the category of financial communication or with investors, for their CSR (Corporate Social Responsibility) report.
The objective of this was to benefit the construction of common themes to favor external and internal links with the generator of networks carrying social capital.
The business philosophy, in addition to communicating values, performance, and practices that reflect the performance of the Bank.
To develop this report, contact was maintained with the sectors involved, and data and necessary information of great importance were gathered. Also, various meetings were held with the areas affected as explained in the case.
The execution of the plan to carry out the report is through four stages. The objective is designed to carry out with the set deadline of six months for the preparation of the report.
These plans were: the identification of key topics to communicate, the definition of business reporting model, the collection of information, the selection of contents by chapter, the drafting and subsequent validation of the drafts, and, finally, the external verification and publication of the same.
The organization to be able to fulfill these plans used two tactics to carry out that were: The annual report and the social balance. On the other hand, there is another tactic that emphasizes the financial report for investors.
Annual finance report
The Annual Report deals with an annual publication. Few copies and internal use that details the accounting of the organization and the most outstanding activities. On the other hand they must be deposited before the instances required by law.
It is a technique that aims to inform and communicate directly to their audiences with intellectual, and justifying and reasoned messages.
The main objective of an annual report is to provide the most relevant information of the organization to a selection of internal and external audiences.
It is a technique linked to financial public relations and represents the program of relationships with partners and shareholders. In contrast, the annual report can be the first impression that the organization has to present itself to external audiences.
Usually, the annual report also presents corporate information such as the organizational structure of the entity, the renewal of positions and managers, the evolution of shareholders or the location of offices and branches.
It can also offer relevant data about the history of the entity. It can show the critical and constructive face of the result.
Each one of the actions that were programmed towards the employees or to the community itself, taking stock of the corporate social responsibility.
The evolution of CSR
The company should be attentive to two things: its internal social plan and its impact on the external environment.
In replacement of the annual report, pr specialists began to use the social balance technique, understood as the public presentation of the goals and activities of the company oriented to the social good.
Hwever, within the companies, the social balance proposes the following alternatives:
1) Refers to the annual report highlighting the accounting and social reports.
2) It refers to the social balance in which only the social report is highlighted.
3) Assuming that Corporate Social Responsibility is the evolution of the company, and it is the company that must “pass accounts” to society. It includes all the essential economic and social values, which must be the reference to be the subject of the public presentation.
The report, in general, may be the product of a need to respond to a conflict or a situation of incomprehension. Thus, the financial report should follow the formulation of indicators that provide crisis communication. Finally, it can be highlighted that this technique can obtain even better results with a digital format and an Internet distribution.