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n a world of multiple channels of communications, and the ease with which information can become distorted or manipulated, it is important for NIRI members to maintain the highest level of ethical standards that align with the NIRI Code of Ethics. In this series focused on the ethical principles contained in the


Code of Ethics, we provide illustrative hypothetical examples that highlight each principle in action and assess the implications for investor relations (IR) professionals. Every IR professional will face ethical challenges during their


career, and in the dynamic world of investor relations, the principles of fair business practices, honesty, and transparency are paramount. Tese values are deeply ingrained in the ethos of NIRI members,


particularly in the second ethical principle, which emphasizes the com- mitment to these values in dealings with the investment community, corporate management, investor relations professionals, and others.


Hypothetical Case Study: To Disclose or Not? Taylor, a dedicated investor relations professional and a proud member of NIRI, managed investor relations for QuantumGlobal Technologies, a tech company with groundbreaking technology. Taylor had always believed that the foundation of any successful relationship with the investment community was built on trust. Tis belief was put to the test when QuantumGlobal Technologies faced a significant technical glitch delaying its flagship product launch. Tis unfortunate event presented a blow to investor confidence,


but Taylor insisted that the company be transparent and issue a news release addressing the cause of the glitch and the steps to address it, complete with a revised timeline to restore investors’ confidence and preserve management credibility. Although the company’s stock was negatively affected by the


event, investors appreciated the company’s honesty, reinforcing the trust between them and the management team. Another significant challenge arose when QuantumGlobal Tech- nologies faced a cybersecurity breach. Sensitive information was compromised, and the potential fallout was immense. Facing a second major negative event, Taylor knew that the


company’s reputation was on the line. In a transparent and honest communication, the company disclosed the breach, explained the measures being taken to secure the systems, and offered critical sup- port to affected stakeholders. Tis candid approach—combined with providing access to man-


agement for additional dialogue—continued to reinforce trust and demonstrated the company’s commitment to integrity. Taylor fostered a culture of transparent communications within the company, ensuring everyone was aligned with the same goals. At an annual investor conference, Taylor shared the company’s journey,


niri.org/ irupdate


About the NIRI Ethics Council


The NIRI Ethics Council was formed by the NIRI Board of Directors to elevate the impor- tance of ethical issues and provide additional resources to the membership on implement- ing best practices in investor relations. The Council serves as a confidential sounding board and mentor to members regarding ethical matters that may arise during their practice—both for investor relations profes- sionals and those providing products and services to the investor relations community. Information about the NIRI Ethics Council and the NIRI Code of Ethics can be found at www.niri.org/about-niri/ethics-council. To reach the Ethics Council, please email ethics@niri.org.


including challenges and lessons learned. Te audience praised the honesty and depth of information shared. QuantumGlobal Technologies’ reputation for integrity became one of its most valuable assets. Taylor’s commitment to NIRI’s second ethical principle helped build trust with the investment community and set a standard for others.


Calls to Action: • Emphasize Transparency: Always be open about both successes and setbacks to build trust with investors.


• Communicate Proactively: Organize conference calls and issue press releases to explain challenges and action plans. Make yourself available to the investment community without bias.


• Foster Open Communication: Ensure everyone within the company is on the same page through regular meetings.


• Commit to Ethical Principles: Uphold the principles of fair business practices, honesty, and transparency in all dealings. IR


Raj Mehan, P. Eng, CTP, CMA, IRC is Vice President, Finance & Treasurer at Steelcase Inc. and Vice Chair of the NIRI Ethics Council; rmehan@steelcase.com.


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