By Beth Diamond (Communication World: April-May 1997)

Communicating the bottom line to corporate stakeholders is no longer the sole domain of the CFO or investor relations manager. Corporate communicators have an opportunity to elevate their profiles by learning how to work more closely with CFOs and IR specialists to communicate an organization's bottom line to a variety of non-financial stakeholders.

In my opinion, investor relations is no longer the sole responsibility of the Chief Financial Officer (CFO) or Investor Relations Manager (IRM).

As the owner of a public relations agency that specializes in both corporate communication and investor relations, I'm concerned about the ever-widening gap between these two disciplines. Today's global economies and work cultures dictate that these two disciplines should work more closely together, not apart.

I work with CFOs and IRMs in both large and small organizations on a daily basis. When it comes to communicating financial information to shareholders, stock analysts and institutional money managers, investor relations professionals know their crafts well.

In most international communities, large organizations with sophisticated IR and corporate communication teams blend key financial messages with corporate objectives. These, however, are the minority. Most organizations have much to learn about crafting and distributing key financial and marketing communication messages to non-financial stakeholders.

This is an area where corporate communicators have an opportunity to shine. They can stake out important turf at the strategic counsel level, becoming advisors to the investor relations specialists in large companies, and to the presidents of mid-to-small-sized companies. Corporate communicators can help these finance-oriented executives recognize solid opportunities that can shape public perception of their companies by clearly and concisely communicating the company's financial performance. Communicators also will ensure their future senior role as part of their organization's management team.

Corporate communicators have the expertise to integrate bottom-line information with other key marketing communication messages. These integrated messages can play a significant role that may enhance the value of a company or positively influence the price of its stock.

The Rules Are Changing

Many countries have strengthened or are moving toward tighter governance rules that demand corporate officers assume greater responsibility for their organization's communication program. This formal requirement for a communication plan, and accountability for its execution, clearly makes room for corporate communicators of all stripes to play a significant role in the investor relations process.

And yet, from my perspective, I see an increasing trend, particularly in larger organizations, toward isolating the communication or public relations function from the investor relations function.

It's been my experience that if communication people are involved at all in communicating financial information, it typically is to coordinate the design and printing of the annual report. They are not always treated as communication specialists who can add value to the total investor relations process.

I rarely see - even in large organizations - the interaction of communication practitioners in the overall investor relations program. In fact, in most small-to-mid-sized companies that lack a communication professional, I rarely see an IR plan or a corporate communication plan in place.

Limiting Financial Information

I also see a movement toward limiting the audiences for financial information to the traditional investor relations stakeholders: analysts, brokers, lending institutions and shareholders. Overlooking or ignoring non-financial stakeholders is easy to do but not prudent in the long term.

Little communication of financial information from non-public companies is available. Why? Some say it's because they are not legally required to reveal financial information. While this is likely the case, they are missing out on sterling opportunities to communicate their companies' financial health and corporate goals to employees, customers, potential customers and suppliers.

In some cases, they lack the foresight to realize the immediate effect these messages can have on existing stakeholders. They are also missing out on the opportunity to inform and educate these stakeholders who may become future shareholders should the organization choose to become a public company. Corporate communication professionals have a great deal to contribute in changing this process. However, they must seize these communication opportunities before they are absorbed by others within an organization.

Financial information, from cash flow to net earnings and beyond, is a critical - and some would say the only real - barometer of corporate health. Yes, of course, it's important information that is fundamental to key decision making. But so are corporate marketing objectives. Why not combine them into one seamless set of key messages?