Change in Annual Reporting Legislation – a Real Opportunity for a PR Disaster

There is a fear that if communication with shareholders to inform them of the legislation changes is not handled competently, there is a real opportunity for a PR disaster, resulting in bad press and shareholder angst.

Shareholders can be disenfranchised, claiming that the company is trying to take advantage by not adequately informing them and trying to save money at their expense. This can be particularly sensitive where shareholders are also customers of the company in question. The media can then take the company to task.

Communication is the key
I believe every effort should be made to ensure shareholders are aware of the Legislation changes and the reasons why the company is adopting a particular approach.

40% response from shareholders
Heywood Innovation has already made inroads to reducing quantities of printed annual reports in this area. A recent initiative to shift shareholders to accept online reporting through an environmental focus achieved a 40% response from shareholders.

Click here to view the Tamaya Resources case study

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