Comm Final

The court effectively has said a donation of _____ does not, legally speaking, indicate a stronger association with a candidate than a donation of $10.

$1,000

PACs can also give up to $______ annually to any national party committee.

$15,000

Under federal election laws, PACs can legally contribute only $______ to a candidate committee per election

$5000

Name 3 characteristics of today's workplace:

-Global reach/matrixed leadership -Highly competitive -Longer work hours -Generational Differences -Complex -Social Differences

Today's employee has what characteristics?

-Well educated -Has a higher expectation -Wants to understand more

Investor Relations do what 2 things? 1. 2.

1. Communicate the company's financial strategies 2. Ensure information is relevant, correct, timely, and understandable.

What are the 5 things to do in order to measure IR success? 1. 2. 3. 4. 5.

1. Compare key ratios with group. 2. P/E ratio 3. The number of analysts following the company. 4. The number of requests for information. 5. Stock trading activity

What 3 things are subject to public disclosure under the law in campaigning? 1. 2. 3.

1. Contributions: to candidates or PACs if over $200 in the aggregate calendar year 2. Expenditures 3. In-kind contributions: over 200

Name 5 things that an IR person can do in their strategic plan: 1. 2. 3. 4. 5.

1. Create an IR fact sheet/pitch book: like a playbook to synchronize message. 2. Maintain shareholder relationships. 3. Attract new analyst coverage: target analysts covering extended peer group of companies consistent with company story. 4. Research prospective shareholders. 5. Monitor IR activity: Track calls, downloads and establish metrics.

Types of Issues in issues management: (3)

1. Current/ongoing--> Public questions being answered by authorities 2. Emerging--> Often issues to be subject of legislation soon. Has influential power. 3. Societal--> Changing attitudes in social demographics

Internal Communication matters for what 5 reasons?

1. Efficiency 2. Encourage innovation/share knowledge: improve operational processes. 3. Promote external image 4. Establish positive cultural values 5. Satisfaction: Establish means for ensuring trust.

What are the steps to analyzing your publics?

1. Find your Public 2. Ask what does your public look like? 3. What are their communication channels? 4. Look into analytical methods 5. Analyze your findings

What 3 types of media include the IR audiences' news media? 1. 2. 3.

1. General Media 2. Financial Media 3. Digital Media

IR Communications Vehicles include 1. 2. 3. 4. 5. 6.

1. IR Websites 2. Media Relations 3. Annual Reports 4. Annual Meetings 5. News Releases 6. Fact Sheets

What are the 4 targeted audiences in investor relations?

1. Individuals (investors) 2. Buy Side (hedge funds) 3. Sell Side (boiler rooms) 4. Regulators (SEC)

Purposes of Campaign Finance Laws: 1. _____ contributions to ensure that wealthy individuals and special interest groups did not have a disproportionate influence on Federal elections 2. _____ campaign spending

1. Limit 2. Control

3 famous advisory services: 1. 2. 3.

1. Moody's 2. Standard and Poor's 3. Value Line

Regulators include 1. 2. 3.

1. Professional Standards (accountants, auditors, etc) 2. Credit Agencies 3. US Congress

What 4 characteristics should you consider when determining an audience or public?

1. Socio-demographic 2. Geographical 3. Behavioral 4. Psychographic

Individual investors fall into 3 categories: 1. 2. 3.

1. Those who invest in individual shares. 2. Mutual Fund Investors (middle class investors) 3. Day Traders: moving in and out of stock positions usually on minimal movement of the stock price.

Supervisors and front-line managers are what 3 things?

1. Visible to employees and members 2. Emotionally intelligent and empathetic 3. Understands the importance of 2-way communication

Investor relations help the market understand a fair valuation of a company by 1. 2. 3.

1. providing evidence of growth opportunities 2. demonstrating historical and future performance/success 3. engendering trust in corporate SUSTAINABILITY

What did the Sarbanes-Oxley Act of 2002 specifically require? 1. Enhanced financial disclosures and accuracy of financial reports and real-time disclosures. 2.

2. Established management assessment of internal controls, and set direct corporate responsibility for financial reports.

______ are social welfare organizations who are exempt from tax codes: These organizations may engage in political lobbying and political campaign activities.

501 C4

Super PACs are also called ______ Groups

527

What's the difference between a public and an audience?

A public is a strategic grouping of demographic that share a common space in the public sphere. It's not static. An audience is anyone who pays attention or receives your message. The relationship between audience and organization is brief.

What is a stakeholder?

A stakeholder is someone with a conscious mutual relationship with the organization; they relate to the public's potential impact on an organization. They feel effect

_______ services compile information about specific companies and publish this information for institutional and individual investors.

Advisory

_____ ______ arise when actions of managers are not in the shareholders' best interests.

Agency issues

_____ are employees of brokerage firms or institutional investors who study companies and make buy-and-sell recommendations on stocks of these companies.

Analysts

Benefit of Issues Management

Avert future crisis --> Issues Management shouldn't be thought of as a defensive response.

Why are audiences and publics so important?

Because knowing your audience can help your message be more successful.

A few arguments against political spending is that: 1. ________ does not focus on the common good.

Business

Analysts are employees of brokerage firms or institutional investors (banks, insurance companies) who study companies and make ____ ___ ____ recommendations on stocks of these companies. -Most specialize in a specific industry

Buy-and-sell

___ ___ ___ typically work for institutional investors (portfolio managers) that purchase securities for their own accounts, and use analysts to watch specific industries or major economic sectors.

Buy-side Analysts

In _____ ____ v. _____ (2010) SCOTUS said political spending is protected speech under the First Amendment. Government can't stop corporations or unions from election spending.

Citizens United v. FEC

_____ _____ are associated with a specific group or organization, and can only raise money from that group.

Connected PACs

______ PACs are separate legal entities from a corporation

Corporate

In order to figure out what type of issue you're dealing with in issues management, ask yourself CCTI:

Criticality: How crucial is it? Causation: What is causing the problem? Tractability: How difficult is the problem? Instruments: What tools can be used to fix it?

What are the 4 types of publics?

Customers, Producers, Enablers and Limiters

____ ____ refers to the political contributions from undisclosed donors

Dark Money

_______ media specialize in news of interest to the investment community

Digital

Publics are influenced by expectations in what?

Discourse Communities

What is social influence theory?

Family, peers, clubs, etc. create rules and norms through shared symbols and values that help identify members of a certain group. (has common goals and an acquired, specific language)

_____ media is general business news in everyday papers

General

____ intelligence is systematising investor views and channelling back to the company's management.

IR

The _____ ______ Act of 1940 affects anyone who makes investment recommendations or conducts securities analysis in return for a ____.

Investment Advisors Act; Fee

Difference between issues management and crisis management:

Issues management anticipates and preempts crisis in a productive way.

_________ ___ can accept funds from any individual or organization, including a connected PAC, as long as those contributions are legal.

Non-Connected PACs

____ _____ indicates of the amounts spent on all federal elections, by cycle.

Open Secrets (includes money spent by presidential candidates, Senate/House candidates, parties and independent groups to influence elections)

An argument in favor of political spending is that _____ are a reasonable means that business may use to organize their contributions to candidates for office

PACs

____ ____ ____ are independent organizations that solicit contributions and then channel those funds to political candidates.

Political Action Committees (PACs)

Publics that provide input to the organization are called what?

Producer Publics

Mission: 1. Promote- clear and consistent messaging 2. Relationship Building- aggressive outreach to priority investors. 3. Dissemination- reliable and transparent financial information. 4. Compliance-adhere to laws 5. Interpretation-report market intelligence to senior management

Promote Relationship Building Dissemination Compliance Interpretation

Political spending should not provide an opportunity for managers to do what?

Pursue their own agendas

Limiters do what?

Reduce or undermine the progress of an organization

Name the Law: ____ ____ _____ In 2000, SEC set rules requiring public companies to disclose material information to investors at the same time.

Regulation Fair Disclosure brought more transparency and more frequent and timely communications.

Name the Law: ______-______ Act of _____ Established new rules for corporate governance and regulatory compliance, with an increased emphasis on auditing and public disclosure.

Sarbanes-Oxley Act of 2002

____-___ _____ work for brokerage firms whose recommendations on specific companies are used by stockbrokers as vehicles to promote stocks and other securities to customers

Sell-side Analysts

Enablers do what?

Set norms and standards for the organization

Discourse communities influence publics through what theory?

Social Influence Theory

527 groups can raise unlimited sums of money from corporations, unions, associations and individuals, then spend unlimited sums to overtly advocate for or against political candidates.

TRUE

In the Elaboration Likelihood Theory, messages are first encoded and then decoded by who?

The audience

How should you shape your messages?

To meet the audience's goals, needs and interests

Elaboration Likelihood Theory basically states that the better you know your audience, the better you can encode messages

True

What does the Anticipatory Management Process do?

Widens the range of options, and creates a better understanding of issues through identifying stakeholders and opportunity.

In Step 1, Finding your Public, what are things to consider?

Your public's needs and expectations, and the social, economic, or political trends that might affect them.

Earnings management is stimulated by the direct link between _____ ____ and _____ _____ (P/E ratio)

accounting earnings and share price

Investor relations attracts new institutional investors/increase in _____ coverage

analyst

Buy-sideis an _____ _____ business and is thus typically focused by market capitalization, benchmarks/indices, long-term performance and risk measurement.

asset gathering

Corporate political spending should have the ____ ____ of the firm, its shareholders and its stakeholders in mind.

best interests

An example of an expenditure is a _______ or newspaper ad

billboard

SCOTUS narrowly defined quid pro quo corruption to literal ________, ignoring the influence or access of large donors, and rejected the idea that money distorts the election process/reduces political equality.

bribery

Investor relations is central to marketing strategy in _______ markets.

capital

Succeeding in IR requires many skills, but the most important is _______ working closely with top management.

comfortability

The corporation connected to the PAC may pay all ________, administrative and funding costs of the PAC

compliance

Federal law states that _________ may not collect or facilitate collections of funds for federal candidates.

corporations

Still, corporations or unions may not give money _____ to campaigns

directly

Issues Management is an anticipatory, strategic management process to help organizations detect and respond to _______ _______ in the socio-political environment that may evoke the attention and concern of publics and stakeholders.

emerging changes

Investor relations communicate the company's ____ ____ and results to everyone with an interest (journalists, fund advisors, shareholders) and ensure information is relevant, correct, timely and understandable.

financial strategies

Another argument against political spending is that: 2. Unlimited spendings creates an ________ ____ ________

imbalance of power

______ _______ is the planned use of communication to systematically influence the knowledge, attitudes and behaviors of current employees.

internal communications

Investor Relations Mission: Promotes a company's narrative to analysts and investors to achieve a ______ ______ that reflects understanding of the business, its growth strategy, and prospects for how the company grow.

market valuation

The SEC levels the transactional playing field by ______ other key participants in the securities world

overseeing

Another argument against political spending is that: 3. PACs spending _______ the political process leading to differing treatment for those who give and those who cannot, such as the poor

overwhelms

IR audiences: Regulators Laws governing U.S. Securities and Exchanges are based on the concept that all investors should have access to certain basic facts about an investment ____ to purchase.

prior

SuperPACs are _______ from giving directly to political candidates, nor coordinate spending with candidates.

prohibited

SEC requires that ____ ____ ____ ___ financial and operational information to provide for a common pool of knowledge that investors may use when making investment decisions.

public companies publicly disclose

Corporations can never _________ an employee for making a political contribution, either

reimburse

Political accountability is an assumption of _______ for political actions, and a willingness to answer for them.

responsibility

An interest group (special interests) is an organization of people with ____ ____ _____ that try to influence the political process to try to achieve those goals.

similar policy goals

Income _________ is a kind of earnings management

smoothing

Internal communications strategies are more _______.

sophisticated

Most Americans own ____ or _____.

stock or equities

The core management of communication is derived from ________ or ____-_____ managers.

supervisors or front-line managers

Sell-Side is focused by volume because brokerage house revenues are driven by _____ and ___ ____

trading and deal flow