Published On: May 23, 2023Categories: ESG, Investor Relations1.8 min read
Avatar photo
I specialise in online investor relations data and communications solutions for African listed companies of any size, helping companies set up & manage stakeholder & investor engagement systems through websites, email and mobile apps.

Why Investing Is Non-negotiable

The evolution of a resilient corporate communications platform demands deliberate investment. Simultaneously, keeping a keen eye on “costs” is an absolute necessity.

However, it’s vital to understand the clear distinction between “costs” and “investment“.

When we refer to “costs“, we’re discussing the financial burdens linked to inefficiencies, those expenditures that could have been prevented or reduced.

Unveiling the True Essence of Investment

Contrarily, the concept of “investment” is intrinsically connected with the expansion of intellectual capital and assets. In the context of corporate communications, it implies enhancing reputation through targeted community engagement.

However, the challenge arises in financial reporting of such efforts. The cash disbursed for these initiatives is viewed as an expense, but the value derived from the digital communities cultivated – those responsible for increasing the intangible corporate reputation – should ideally be classified as assets.

The Dilemma of Monitoring

Approximately 95% of companies find it difficult to keep track of their growing digital communities. They’re still exploring the asset potential sprouting from their investment.

For most, the investment is mistakenly perceived as a cost, merely a budget line item tagged as a “website“.

The Emergence of Strategic Assets

The strategic asset that springs forth from this “expense” needs to be incorporated into corporate reporting or embedded within the communications narrative.

Confronting Inefficiencies and Costs

One of the significant hurdles is that nearly 90% of the costs associated with corporate communications are linked to TWO major inefficiencies.

The first is “Fragmentation” – grappling with a surplus of systems, platforms, team members, and vendors.

The second inefficiency is labelled as “Manual” – relying on human intervention to handle tasks that could be efficiently automated, centralized, and integrated, thus freeing up staff for more critical assignments.

The Hidden Drawback of Innovation

Unfortunately, the remarkable innovation accessible to corporate communication now comes with a significant pitfall – “stakeholder and investor communication“.

The Challenge of Complexity

The realm of corporate communications is becoming exponentially more complicated.

The key challenge that companies face currently is learning how to navigate this complexity, minimize costs, while simultaneously pushing the boundaries to develop a future-proofed communications strategy.

Turnkey, communications solutions for every listed company in Africa

Speak to us about IR solutions for your company

Speak to us about IR solutions for your company

AfricanFinancials works with Boards, CEOs and companies who want to build sustainable businesses through better corporate and investor communications. Our focus is online investor relations to promote secure two-way communications with investors and stakeholders.