Irresponsible Engagement and the Citizen Investor

Abstract

The study investigates how shareholders are constructed and engaged with through public relations in the Australian financial sector. The web sites and annual and sustainability reports of major Australian companies and investment funds were examined through qualitative content analysis. Findings indicate that a hierarchical distinction exists within the discrete but amorphous stakeholder group known as shareholders, where privilege and disadvantage exist alongside disparate levels of power and agency. This is perpetuated by and through irresponsible public relations, which constructs a discourse of ownership that excludes citizens as legitimate stakeholders limiting their capacity to influence more ethical corporate decisions and practices. Recommendations are offered for how public relations might engage shareholders more responsibly.

ACKNOWLEDGEMENTS

The authors acknowledge the insightful comments provided by Anne Surma and Catherine Archer who assisted us in developing our ideas. An earlier version of this article was presented at the Annual ICA Conference 2013 “Challenging Communication Research” held in London.

Notes

¹The Australian Government introduced compulsory saving for retirement in 1992, requiring a percentage of an individual's income to be set aside to help fund their postworking lives. These savings are known as superannuation. When employees cease working, their superannuation fund is converted into a pension fund from which they draw a pension. Both superannuation and pension funds invest their accumulated monies into companies that are listed on the stock market (i.e., listed companies).

²This study refers to money invested by Australians in superannuation funds only and does not take into account money invested in the stock and bond markets through separate investments.

³Industry funds are not-for-profit superannuation funds designed to provide low-cost savings vehicles for individual investors. They were originally created by industry so there would be a separate fund for those employed in the construction industry, health workers, hospitality workers, etc. Some of these have subsequently merged but remain in the industry fund sector.