There have been some major recent events in the financial world that have highlighted the important role that public relations, in the form of investor relations, plays in the economic, social and political arenas. Accusations of insider trading, questions about business ethics and other financial scandals have decreased consumer confidence and increased calls for better and more thorough communication between industry and the public. Practitioners must understand the scope of investor relations and the various legal and regulatory requirements related to the reporting of financial information.

Corporate communication departments must produce more than just the annual report each year. Investor relations practitioners use the principles of consistency, credibility and clarity in meeting the strategic company objectives. From press releases to annual reports, there are specific rules and regulations from government agencies and stock exchanges that must be followed in financial relations. In addition, financial information is required to be communicated in an 'easy-to-understand' manner.

Practitioners of investor relations need to be familiar with both the organization and its environment. Situations such as tender offers and proxy fights require strategic planning in the communication efforts of an organization. Communication strategies to meet these types of crisis situations as well as daily tactics for meeting organizational goals and objectives are targeted to the major publics of investor relations -- stockholders, financial analysts and members of the financial press.

The major channels of communication for financial relations include the annual meeting and the annual report. Practitioners must understand the nature of each type of financial relations public as well as the strategies for designing the most efficient and effective press release, annual report, conference call or other public relations effort.