The exciting aspect of social media is its ability to create dialogue and a connection not possible with more traditional methods of communication, such as a printed document. Once a strategy is implemented, and working within the parameters of continuous disclosure obligations and your corporate policies, social media offers an exciting and innovative communications opportunity.
A company’s shareholder base will determine which, if any, social media platforms will be the most appropriate and beneficial to its business.
For example, a company whose shareholder base is predominantly made up of retail shareholders might consider utilising Facebook, YouTube and Twitter to increase shareholder engagement. On the other hand, a company with a large base of institutional investors may focus on using LinkedIn and Twitter.
The successful use of social media can improve relationships with existing shareholders, potential investors and other key stakeholders, communicate the company story and messages to a larger audience and increase visits to the company website. It can be used as an effective platform for promoting online annual reports, announcing events, displaying highlights and achievements, posting video messages, and inviting dialogue.