Chapter 43: The Financial and Banking Industry: Investing in Our Stakeholders
In 2008, the Great Recession hit, causing 8 million people to lose their job and economic fallout everywhere. Banks did not cause the Great Recession, but their actions, most of which were perfectly legal, contributed to the devastation that followed. As a result, the reputation of financial institutions is deeply scarred. Because of a lack of transparency at the time, the ability for external parties to know if there was exposure to high risks, such as subprime mortgages, was compromised. Banks, consumers, the government and the ratings agencies all share blame for the financial crisis. The Occupy Wall Street movement shows the anger of many toward the banking institutions. How this all happened is explained from the housing bubble, to the government stepping in with heightened regulations. Now, the role of the public relations professional in the banking industry is to restore the trust that has eroded. The case study is of Chase engaging in social media with a contest awarding $5 million total to 100 charities.
No Biography for Anonymous