Financial Communication

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Financial Communication

Function of corporate
communication
Three M’s
• Men
• Money
• Material
Financial PR assumes great importance in
acquisitions or mergers, public issue, resource
mobilization from the market.
Defining Financial PR
• Acc to Public Relations Society of America:
It is “that area of public relations which affects
the understanding of stockholders & investors
generally concerning the financial position &
prospects of a company & includes among its
objectives the improvement of relations
between corporations and their stockholders.”
- It contributes to the corporate profitability.
Financial public
• The investing public can be divided into:
- Actual shareholders of public-owned
corporations
- Financial opinion leaders
- Financial journalists of both print and
electronic media
Financial calendar
• It comprises of :
- Publication of preliminary results of a
company
- Half-yearly figures
- Annual report
- Annual General Meeting
Financial PR Programme
• They are:
- Plan for communicating with stock brokers &
financial institutions
- A planned communication programme with
the media
- Effective communication plan with its internal
public – the employees
Tactics
• Annual report
• Quarterly reports
• Presentation before financial audiences
• Factbooks or factsheets
• Press releases
• Newsletters
• Telecommunication devices
• Trade channels
• Paid-for communication
Annual report
• It is statutory in nature. All shareholders have a right to
receive a run on the company accounts at least once a
year through the annual report.
• It is regarded as the keystone of the stockholder
relations programme.
• PR dept doesn’t have direct responsibility for preparing
the balance sheet & statement of accounts, it only
advises the management on the overall approach of
the report, theme of the chairman’s statement & on
the format & presentation of the report.
Other financial public for AR
• The investing community in general, the
potential shareholders who are on the look
out for investing in a suitable company
• The banks, financial institutions etc.
• The financial press
• The business community in general
Key points (AR)
• Determine the objectives underlying the distinctive
character of the company
• Determine how the traits of that distinctive character
can be projected to the audience so it will be a credible
reality in people’s mind
• Plan the annual report as an entity in terms of theme,
cover, writing, artwork to make up a consistent whole
• Writing according to company’s personality in mind
• Make message interesting in the headlines, captions &
the way it is written
Outline (AR)
• Cover design – Front Cover
- Name of Business Corporation & title ‘Annual
Report’ or ‘Year Book’
- Year of report, of calendar year
- Illustration, photograph, or pattern
appropriate to the corporation or the industry
it presents.
Contn..
• Frontispiece – first right-hand page or first two
pages:
- Addresses: executive offices, General offices,
or other offices to which recipient can write
further information
- Table of contents
Contn..
• Narrative
- president’s & or chairman’s letter
- Highlights- comparative round-number
operating statistics
Cont..
Departmentalized summaries:
- financial results interpreted
- Distribution of gross revenue
- Trend of sales, earnings & dividend
- Simplified balance sheet
- Advertising & PR
- Improvement of facilities
- Management development: products & services (improvement
diversification or new)
- Government regulation
- Important events of the year
- Discussions of future prospects: international activities
Contn..
• Financial tabulation & other statistics & Reference material:
- Profit & loss statement
- Employment statistics
- Management listing
- List of products, subsidiaries, branch offices, routes etc.: pension
& or provident fund costs
- No. of employees in company’s employee stock ownership plan
- Employee welfare scheme etc.
- Contribution made to public service & community welfare
It is advisable to get final proofs cleared from the Company
Secretariat Dept.

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