2008 PROCEEDINGS - Public Relations Society of America

Relations Society of America (PRSA) in the society’s salary survey (Tortorello & Wilhelm,
1993).
Investor relations practitioners with well-rounded education are better prepared to the
changing realities of new investor relations. The chain of corporate scandals, caused by senior
management’s manipulation of information disclosed to investors, and, as a result, inability of
investors, both private and corporate, to properly understand the company’s business and its
value, changes the way investor relations does business. Alan Towers calls Enron “the Watergate
of business” and suggests that companies now have to rely on their investor relations to “inspire
confidence” in their investors (as cited in Allen, 2002). To regain confidence investor relations
must communicate faster, provide more information, make information more relevant to
understanding the company’s business and its value, and use the appropriate communicative
channels. Morgenson (2002) concludes that investor relations departments have to improve the
quality and quantity information, exclaiming in the article title: “Information sooner, yes, but
make it better, too” (p. 1).
In addition, the globalization of business leads to a globalization of investor relations as
well. New technologies of travel and communications made investing a truly international
phenomenon. A corporation now competes for investment capital on a global scale in a 24/7
framework. New technologies make information available globally, instantly and to a wide range
of publics – consumers, investors, suppliers, and so on. Silver (2003) suggests that perhaps this
should lead to merging of various communications functions, such as public relations and
investor relations, into one unified function in charge of all corporate communication efforts.
Rosenstein, Kelly, and Laskin (2007) conclude that “investor relations represents one of public
relations’ most unfortunate paradoxes” (p. 1). Investor relations practice has grown in
importance and received increased attention in corporate America. Yet, it commands little
attention in public relations education and research. Perhaps, it is time to change this by offering
investor relations course and minor as part of public relations curriculum.
Bibliography
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