Time for Investor Relations to Go Social
From engaging brand ambassadors to nurturing prospects, businesses are learning the value of using social media to as a connection tool. Activist investors have learned that lesson as well and are using social networks to connect with others—and engender change in corporate America. On Mashable, Patrick Kerley, Director of Levick Strategic Communications Social & Digital Media Practice, shares examples of activist investors using social media for change:
- In 2007, Eric Jackson, who owned a mere 96 shares of Yahoo, posted a negative blog about company CEO Terry Semel’s performance. The message resonated with other dissatisfied investors, helping to build a voting bloc that represented more than 2.6 million Yahoo shares and acting as a catalyst for Semel’s departure.
- On2 Technologies’ investors turned to shareholder social network MoxyVote to force Google to boost its bid for the company by 25%.
Investor relations initiatives are subject to disclosure rules and other regulations, but as activist investors utilize social media to spur change, it’s becoming more important for IR teams to formulate a social strategy that maintains positive relationships with these stakeholders.
For more insight on social activism and brand reputation, check out Michael’s recent post.