Even though news media like to play up the drama of unfolding catastrophes; their hesitance to trigger panic and widescale distrust in the global banking system is obvious. Listen to the language used in discussions about the “collapse” of Silicon Valley Bank (SVB), and then the takeover of Credit Suisse by the UBS Group.
Commentators talk about “ shoring up the liquidity crisis,” creating a “fire break,” calling on central banks to act as a “backstop”. The imagery of “contagion” and “domino” or “ripple” effects are enough to send shivers down any capitalist’s spine. Because at the core of the modern global financial system are trillions of dollars worth of trust. Trust in money that has no intrinsic value at all.
The old gold standard
It wasn’t always that way. The classical gold standard existed since the 1870s, according to the World Gold Council. Under the gold standard, a country’s money supply was linked to gold. Being able to convert fiat money into gold on demand strictly limited the amount of fiat money in circulation to a multiple of the central banks’ gold reserves.
The gold standard did not weather the Great Depression. The South African Reserve Bank dropped the gold standard in 1932, choosing at that time to link the value of the local currency to the pound sterling.
According to Investopedia, the gold standard is not currently used by any government. Britain stopped using it in 1931, and the US in 1933, abandoning what remained of the system in 1973. The gold standard was completely replaced by fiat money. A government fiat (order, or decree) that the currency must be accepted as a means of payment is what infers real value to money today.
A fiat reputation?
Organisations can’t infer value by decree. They have to build it by consistently delivering on their values. Just as banks’ continued existence depends on investors’ belief in their ability to grow (or at least safely store) their money, so firms rely on customers’, suppliers’, shareholders’ and employees’ belief in their ability to flourish (or at least survive) in a tough economy.
What you say about your company influences its future. Credit Suisse couldn’t get on top of the bad news it generated and it’s anyone’s guess what SVB’s strategy was. Communication is not an afterthought. What you say matters and a good public relations strategy will help you to disseminate the right message.
Digital public relations
Although the process of public relations has changed drastically over the past ten years, the objectives of traditional and digital PR are very similar. Digital PR aims to:
- Build awareness
- Boost the organisation’s reputation
- Establish company leaders as experts
- Enhance search results
- Generate leads and trigger trial
Ways to do this can include:
- Online press releases
- Frequently and regularly updating content
- Writing for SEO
- Encouraging customer reviews
- Publishing online profiles and interviews
If you’re stuck for ideas, want assistance with a PR strategy, or need help to achieve your online PR goals, we’re here to secure your company’s currency.
