Do you invest in investor relations and communications?

There is one aspect of a communicator’s job that is not spoken much about. And that is investor relations/communications. Investor communications is not mere working on the quarterly financial report press releases or the annual management discussion and analysis (MDA) message.

In the current competitive investment landscape, the strength and authenticity of a company’s strategic narrative have become essential for building investor trust and securing capital. Investor relations (IR) now require a holistic, purpose-driven narrative that emphasises both financial and social value. The question communicators need to ask themselves is not just if they invest in investor relations, but how much effort and strategic thought they put into it.

Crafting an investor-focused strategic narrative

Developing an investor-focused strategic narrative calls for several communication aspects that need to be integrated.

• Aligning Vision with Realism: Investors appreciate ambitious goals, but they also expect feasible, grounded plans. Communicators need to strike a balance between visionary storytelling and actionable strategies, ensuring that the message is both inspirational and credible. This will also lead to purpose-driven messaging, wherein company’s mission and societal contributions can be integrated into investor messaging, presenting a complete picture of its value. Remember, investors are drawn to companies with a clear sense of purpose beyond profits.
• Meeting ESG Expectations: The rise of ESG-focused investing has increased pressure on companies to transparently address environmental and social impacts. Focus should be on crafting a narrative that meets these expectations, especially in sectors facing scrutiny over sustainability practices. To truly connect with investors, communicators need to understand investor priorities and market trends. By leveraging data analytics and investor insights, they can tailor messages that address specific investor concerns and aspirations.
• Maintaining Consistency: Trust is a cornerstone of successful investor relations. With multiple communication channels, ensuring a consistent message across platforms can be difficult. Misaligned narratives across digital, media, and in-person engagements risk diluting the company’s message and eroding investor trust. Narrow down to a channel and medium that works best for both, your investors and your company and use that to strengthen credibility and investor loyalty over the long term.

Doing this calls for communicators to have several key competencies.

• Storytelling Ability: Story telling lies at the very heart of a corporate communicator yet, translating numbers to tell a story is a nuanced skill. Communicators need to shape financial and operational details into compelling, human-centred stories that resonate. A strategic narrative should not only convey facts but also connect with investors on an emotional level.
• Knowledge of Market Trends: How well do you understand your company’s balance sheet? Are you good with numbers? Do you follow market dynamics and understand investor sentiment, and sector-specific challenges? The more you keep yourself abreasted on these, the better will you be able to shape narratives that address current priorities and position the company as an industry leader.
• Collaboration Skills: Developing a cohesive narrative involves collaboration across departments, from finance to marketing. Communicators need to facilitate cross-functional input to ensure alignment and consistency in messaging.

Remember, investing in a well-crafted, purpose-driven strategic narrative for investor relations has the power to differentiate a company, attract the right kind of capital, and build long-term trust. A strategic narrative is not simply a report—it’s a story that unites vision with value.

The views and opinions published here belong to the author and do not necessarily reflect the views and opinions of the publisher.

Sarita Bahl

Sarita Bahl is an alumnus of Tata Institute of Social Sciences and the Swedish Institute of Management Program. An experienced and versatile leader, she comes with nearly four decades of professional experience. She has over the years successfully overseen the communications and public affairs function and led the corporate social responsibility strategy for Bayer South Asia, Pfizer, and Monsanto, among others. Sarita has held multiple roles across diverse industries, the public sector, trade associations, MNCs, and the not-for-profit sector. Her areas of interest include advocacy, stakeholder engagement, sustainability, and communications.

As an Associate Certified Coach (ACC) from the International Coaching Federation (ICF) and Senior Practitioner (Mentoring) from the European Council of Mentoring and Coaching (EMCC), Sarita specializes in career transition, inner engineering and life issues. Sarita enjoys writing and is passionate about animals, books, and movies.