With nearly half of the audience (46%) at last night’s Investor Relations Society (IRS) conference saying that they never use social media tools as part of their business objectives, the panel urged them to engage more.

While delegates cited the risks of unregulated comment and the extra resources and time that would be required to engage in social media, Andrew Orchard, managing director of Windfall Media said “There is a difference between content creation and active listening [when using social media] and it’s an issue of engage rather than control. The value is in listening to what consumers and investors are saying. Before you communicate you need to listen.”

Significantly, recent research in the US by IR Web Report suggests that IR professionals at hundreds of American companies are exposing their firms to potential compliance risks because they have failed to play an active role in monitoring, managing and engaging in their companies’ activities on social networks like Facebook and Twitter.

The research adds that even though investors and analysts are increasingly using these channels, IROs are allowing inexperienced employees working in corporate communications to manage their social media accounts. These employees are unfamiliar with the complex rules, laws and expectations that govern communications to investors.

Both speakers on the IRS conference's social media panel agreed that, with social media increasing the speed at which information is available, IROs should at least be listening if not fully engaging.

Communicate magazine is hosting its own, annual, Social Media in a Corporate Context conference. The event, held on April 28, will explore how corporate communication professionals can use social media strategy and web 2.0 tools to engage all audiences. Click here to book your place.

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