First of all, you must understand the term investor relations. It can be simply understand as a connection relationship between investors in the company. The concept can be understood in a much further approach since the development of internet. Nowadays, people usually keep in touch with each other through many social network sites such as Google +, Yahoo and Facebook. These sites hold a significant power that may affect some business in a really bad way.

The situation actually has been experienced by Yahoo, the biggest company in the internet. One of their shareholders has given his opinion about the bad customer service and poor management style of the CEO of Yahoo. After he published the article on his private blog, many investors of this company have read the news and raise the demand of knowing the truth from this scandal. The blogger also attached some of the real life video to support his belief.

After a week of publication, he has raised a significant amount of shareholders who object to this event and demand the resign of this CEO. After that, Yahoo try to control the information and burry the rumor. However, through many social media, the news has traveled with an amazing speed to many people around the world. Yahoo actually could not control the news anymore and had to resign their CEO. After the convincing example from Yahoo, many of you have realized the power of investor relations. It holds a potential threat to any business if they don’t know how to control it. Because once they lose control of investor relations, other competitors and customers will be in charge of controlling the insight news as well as many bad news inside the company.

However, due to the significant development of internet, many businesses nowadays still use Facebook, Twitter, Linkedin to promote their image to customers. It’s really a smart decision from many newly established companies which needs to raise the brand awareness among customers and internet users. Through these channel, they can find the potential employees which are suitable for their company. The investor relations actually play a knife with two blades. It’s can a useful tool for many company to earn reputation as well as the image. On the other hand, it can easily bring the company down if some bad events happen in the company. Therefore, managing this power tool is the most concern issues among companies.