Modern corporate communications
Upcoming SlideShare
Loading in...5
×
 

Modern corporate communications

on

  • 3,559 views

Trends in financial communications.

Trends in financial communications.

Statistics

Views

Total Views
3,559
Views on SlideShare
3,540
Embed Views
19

Actions

Likes
3
Downloads
84
Comments
0

4 Embeds 19

http://paper.li 11
http://mudle.mondragon.edu 6
http://twitter.com 1
http://www.linkedin.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Modern corporate communications Modern corporate communications Presentation Transcript

    • Communicating Business Agenda to Investment Community Sahala Sianipar Managing Director, Corporate/Financial Practice, Asia Pacific Burson-Marsteller Twitter: @ssahala Singapore, 26 September 2011
    • Content Trends in financial communications Developing financial communications plan Discussion BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Trends in Financial Communications
    • Asia Pacific as Global Capital Raising Centers US$53 Billion raised via IPO in Hong Kong Stock Exchange in 2010 (FinancialPictures courtesy of www.bloomberg.com Times, 2011) BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Asia Pacific Companies Influence Global Merger & Acquisition Top Target Countries by Volume 2010 (US$ billion) Source: Bloomberg 37.21 65.57 110.31 35.12 84.07 China Hong Kong Australia Japan USBloomberg 2011 M&A Outlook Report: 2010: 8,700+ deals announced worth US$594 billion Highest M&A activity in financial industry Largest deal by Asian company was Bharti Airtel’s purchase of Zain Africa (US$10.7 billion) BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Active Buying by Asia Pacific Companies in 2011 Where active buyers are expected in 2011? Source: Bloomberg Poll (2010) 7%3% 7% Asia Pacific Central Asia 45% North America South & Central America 22% Western Europe Affrica & Middle East 13% BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Transparency DemandPicture: www.thedailybeast.com BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Real Time and Multiple Channels BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Case Study BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Rapid Evolution of Issue into Crisis  It is more difficult to plan for a crisis given the changing communications landscape Source: Burson-Marsteller & Penn Schoen Berland Global Crisis Preparedness Survey 2011 50% Global 37% 35% 31% 29% 25%Need to respond Overall challenges More globalized Increased public Increased anti- Rise of citizenextremely quickly of digital nature of demand for corporate journalism / social communications communications transparency sentiment in public media (e.g. and/or media Facebook, Twitter) BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Asia Pacific Companies Likely to Encounter Crisis Source: Burson-Marsteller & Penn Schoen Berland Global Crisis Preparedness Survey 2011 67% 59% 61% 55% 46% GLOBAL APAC EU US LATAM Have experienced a crisis BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Impact of Trends Understand Asia Pacific, its diverse constituents and influencers as well as operating landscape Connect the dots – global and locally Invest to align internal and external communications that support business objectives BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Developing Credible Financial Communications Plan
    •  “A corporation managed by responsible managers will be a responsible corporation; a corporation managed by irresponsible managers will be an irresponsible corporation. It is individuals who are responsible for what corporations do.” Harold Burson Founder Chairman, Burson-Marsteller November 2008 BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Financial Communications Plan – An Overview Define your objectives that are aligned with corporate/business objectives List core/priority stakeholders and influencers Develop messages Identify communications channels Define monitoring approach & tools Identify issue or crisis triggers related to your company and industry BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Issues MappingRegulatory Stakeholders & Influencers Business competition  Regulators Environmental compliance  Customers Business permits  Investment community Foreign investment  Market commentators/analysts Compliance  Local community  Traditional mediaOperational  Bloggers/online influencers Service quality Reputational Data security  Global/local corporate reputation Business partner  Product reputation Employee relations  Stakeholders’ knowledge of the company Transparency  Corporate responsibility commitment Business competition  Disclosure BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Case Study Situation Analysis • A state agency claimed that a major listed bank in Indonesia did not exercise prudent banking when it disbursed loans to several companies • Loans were fully collateralized and companies were affected by 1997/98 financial crisis, which required debt restructuring • The report by the state agency also claimed that the bank’s senior management never reported these loans to its shareholders • The report was leaked to a couple of first-tier local media, which generated headlines even by Jakarta-based international media • The government launched an investigation and subsequently criminal charges against senior management of the bank • The bank’s institutional investors were concerned and rating agencies were about to issue updated ratings of the bank’s papers. BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Case Study – cont’d Integrated approach to investor and stakeholder communications • The bank quickly updated its institutional shareholders on the situation • The bank pointed to its information memorandum prior to its listing that provided details of the bank’s exposure to the various companies mentioned in the report • In other words, the bank had been transparent all along and the report did not provide any new information that investors had not known • The bank assured its key customers of its financial and operational soundness as it had set aside sufficient and conservative provision for those loans • The bank also reached out to its key controlling shareholders that in turn, provided public backing of the bank’s strategy and its ability to handle the situation • The bank disseminated regular updates to media (domestic and international), which were tracked by the investment community • Employees of the bank were regularly updated of the management’s action to address the situation. BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Case Study – cont’d Results • Whilst the bank’s stock price was down, no major institutional depositors/customers withdrew funds from the bank • S&P affirmed its ratings of the bank’s papers despite the public controversy in Indonesia • Institutional investors recognized there could be other motivations from the charges against the bank • Key shareholders of the bank also publicly spoke in support of the bank. BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Case Study (2) Situation Analysis • A major Asian telecommunications company that is listed in the New York Stock Exchange was accused of committing irregular derivative transactions • The allegation was raised by a politician in a parliamentarian hearing involving senior government ministers and chairperson of the capital market supervisory board • First-tier national and international newswires immediately picked up the story, which became headlines • Sell-side analysts called the company to seek clarification • Institutional investors questioned the company’s transparency, risk management and good corporate governance practices • At the same time, the politician threatened to file a criminal lawsuit against the company. BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Case Study (2) – cont’d Rapid response and integrated approach to investor and stakeholder communications • The objective of the communications program was to protect the level of stakeholders’ trust on the company • Core stakeholders included regulators, business customers, shareholders & investors around the globe, and employees • Company highlighted its disclosure compliance as required by the US Securities Exchange Commission in its regular filings • Company’s executives reached out and briefed capital market supervisory board, industry regulators, investment community (sell and buy-side analysts, rating agencies), media (domestic and international) and influencers (e.g. think tanks) regarding the company’s derivative policy, which had been instituted and disclosed regularly • At the same time, the Company issued regular statements via multiple channels (online, website, traditional media) to correct earlier media reports. BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • Case Study (2) – cont’d Results • Chairman of the capital market supervisory board issued a statement that cleared the company from the allegation; the chairman also spoke in front of members of the national parliament • Investors were satisfied with the explanation that the share price did not suffer from major decline • Third parties such as research analysts and industry commentators published articles in leading local media supportive of the company’s risk management, disclosure and good governance practices. BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS
    • In Summary  Asia Pacific companies are expected to be more active in regional and international trade & investment  Stakeholders including investors will demand more on good corporate governance, disclosure, and transparency from companies  U – Understand your financial communications goals and stakeholders in Asia Pacific  C – Be able to connect the dots, globally and locally in today’s digital age  I – Be prepared to invest in aligning internal and external communications capability including crisis preparedness and monitoring tools.
    • THANK YOU