Use social media for Investor Relations?

Is it possible for a company's Investor Relations department to use social media? Of course, not every platform will be as efficient to communicate Delhaize Group’s message. Also, today, traditional IR management remains possible without Social Media. What is more, a lot of financial analysts and traders indicate they do not use social media, because their bossens won't allow them access to websites likeTwitter, Facebook and Youtube.

However, already today, these media are being used for IR by some international companies. If Stock Exchange Enlisted Companies want to be pioneers, or want to keep up with the pioneers, they have to be present on Web 2.0.

Wal-Mart for example, started tweeting with @walmartnews only since January 13, 2010. The account is used on a daily basis; mainly for tweeting on Corporate Social Responsability but also on Industry related news like the company's strategy and, when relevant, on Q or Y results. The Wal-Mart account is followed by 1,740 people and promoted oninvestors.walmartstores.com. To control the account, an application called CoTweet is used. Wal-Mart also has several other (local) Twitter accounts that are used for Marketing and Customer Relations.

Wal-Mart also has a YouTube channel which exists since February 11, 2006 and is of course used for distributing commercials, but also features clips on CSR. At least every day, someone comments on a Wal-Mart video clip.

Although Wal-Mart has several Facebook pages (one has has about 1,193,000 people ‘liking’ it and almost every hour somebody posts to its wall), it does not post on IR.

Companies that do use Facebook for Investor Relations are Cisco and Lafarge. The Cisco Facebook Page also links surfers to a myriad of other social media accounts. Several other Facebook Pages, several Twitter accounts, several blogs, two Flickr accounts and two Youtube channels. One of those channels has a ‘Financial’ playlist, which features clips with CFO Frank Calderoni and CEO John Chambers discussing the quarterly Results. Allegedly, Chambers prefers video to text because of his dyslexy.

Other companies using Twitter for IR are KBC Group (a bank and insurance company) and Bekaert (a steel manufacturer) who post links to their press releases on their Twitter account. Bekaert even launched a separate 'annual report' website which constantly links to social media.