With so many changes happening in the marketplace, this is a critical time for companies to engage investors effectively and with a well thought out investor engagement strategy. Engagement with stakeholders gives companies opportunities to focus on that will deliver long-term value to the shareholders and the company. In today's business world, an investor engagement strategy also gives companies new opportunities to communicate about Environmental, Social and Governance (ESG) and other issues that are necessary for long-term corporate survival.
Importance of Investor Engagement
Input from investors prevents companies from being self-serving and placing their whole focus inward. A successful investor engagement strategy requires companies to look at all investors and stakeholders, including those that aren't as active or vocal. By opening up and listening to a wide range of perspectives, corporations will gain the benefit of comprehensive feedback, which will allow them to develop the most appropriate feedback. Encouraging ongoing investor engagement is a modern approach to governance. Corporate boards should be aware that today's investors have powerful in-person and social media networks. Solid strategies for investor engagement will help to build mutual trust between stakeholders and the company. The key to a good investor engagement strategy is to view investors through a new lens; shift to a two-way communications mindset; identify the right stakeholders; prepare, engage and work the action plan; and be willing to receive and use feedback.Investor Engagement Strategy
Here is a six-step plan to help you get started:- View Investor Engagement Through a New Lens
- Shift to a Two-Way Investor Engagement
- Identify and Rank Relevant Investors
- Prepare
- Engage
- Set an Action Plan
Final Words on Improving Your Investor Engagement Strategy
This step-by-step guide to an investor engagement strategy will help to sustain constructive relationships over time. Board directors can utilize this process to create shared value. As with any other board director meeting, investors should be given clear guidelines about confidentiality. Finally, the leader of the group should periodically schedule at least an annual meeting for follow-up and continuity. https://www.youtube.com/watch?v=3bzXdhHbZkMMedia Highlights
Environmental, social and governance (ESG) issues have become more complex and multifaceted than ever before. At the same time, ESG continues to ascend on board and leadership agendas.
In this buyer’s guide, we explore what a market-leading ESG solution should look like and highlight the key areas organisations should be prioritising as they embark on their search.