What PR Should Do When Stock Prices Drop

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Public relations professionals spend most of their time preparing for the best-case scenarios, new campaigns, cool launches, good press. But what happens when things go from bad to worse, literally? When a company's stock price falls, the PR team is one of the first lines of defense. How they respond is crucial, not just for the brand reputation, but its future.

I just read a really interesting article in Forbes by Curtis Sparrer, What Should PR Do When The Company's Stock Goes South, which explains this exactly. He addresses specifically what PR teams should be doing when numbers start to slip, and how the right communications strategy can reverse it all.

Preparing Before the Crisis Hits

It is about being proactive first. The best time to prepare for a crisis is before it happens. This includes having messaging in place that addresses both external and internal stakeholders and pre-anticipating the questions that investors, employees, and the public will ask. A well-thought-out response plan dictates the tone that will be used in managing the situation.

Transparency is also vitally important. Sparrer emphasizes the importance of honesty in telling what's going on. The goal isn't to whitewash, but to show accountability and a path forward. Done correctly, transparency can create more trust than silence ever would.

Owning the Narrative in Real Time

Media relations in a downturn are just as important. PR teams need to be visible, responsive, and in control of the message. That may mean debunking rumors or pushing out timely releases that remind folks of credibility.

And even in the midst of difficulty, there's room to highlight what's going right. Whether that's a breakthrough new product, a partnership, or strong internal leadership, those positives balance the story and show momentum.

Sparrer also stressed the importance of being in sync with investor relations. PR and IR have to speak the same language, delivering a unified message that works for both brand reputation and financial strategy.

A reminder for all of us moving into the professional communications space: PR isn't just about blowing horns for the good stuff, it's also about getting through the difficult times clearly, confidently, and carefully. That's where the real value begins.