Communicating with investors is a key part of developing a public relations
program. In order to secure continued support from investors and
stockholders, abundant information about the company's health and future
must be provided frequently.
While many large corporations may lose sight of this objective, those who are the most successful at investor relations make a point to communicate often and openly with their stockholders, making the stockholders aware of upcoming changes and the effect those changes are expected to have on stock prices.
When Kodak Company faced many problems with its corporate turnaround, including bad press, a new CEO, falling sales and increasing competition, it needed to secure the support of its investors in order to finish out the plan it was in the midst of enacting. In order to do so, Kodak adopted a plan of action that focused around frequent and honest communication with its investors.
As part of its communication plan, it was important that Kodak keep in mind the laws of materiality. According to these laws, investors are not allowed to learn about company information prior to the general public if it is information that could affect the prices of the company's stock.
The plan of action included creating several major news events during which Kodak announced changes to the structure of the organization and alliances with various groups. It also utilized management letters, the intra net and face-to-face town meetings to communicate with its local customers and employees.
Three major meetings with investors in the U.S. and Europe were held and meetings with elected officials in three major cities were also used to communicate with key publics.
The plan, which originally had been spoken poorly about by media, was widely praised in the end and in fact resulted in a six-point improvement in public perception of the company. Also, 75 percent of investors viewed Kodak positively and 75 percent of community leaders gave Kodak the highest ranking in a survey.