CHAPTER17Corporations

Topics Covered in Chapter 17

Today’s Modern Corporation

Media Relations

Customer Relations

Employee Relations

Marketing Communications

Environmental Relations

Corporate Philanthropy

The extensive negative publicity about corporations and businesses over the past several years made it imperative that companies make a special effort to regain public credibility and trust.

Thus, the concept of corporate social responsibility (CSR) is now high priority.

Executives and their public relations staffs arecharged with improving the reputation and citizenship of their employers.

Today’s Modern Corporation

The PR profession has taken steps to outline a plan of action for rebuilding public trust in business.

A number of strategies and tactics can be used to implement CSR, which involves corporate performance as well as effective communications.

American businesses and their leaders to act in three main areas:

(1) Adopt ethical principles(2) Pursue transparency and disclosure (3) Make trust a fundamental precept of corporate governance

Today’s Modern Corporation cont.

Corporate executives are somewhat defensive about how journalists cover business, because they feel that too much emphasis has been given to corporate misdeeds.

Journalists complain about the flow of information, lack of cooperation and other issues with executives.

PR professionals must interpret their companies and clients to the media, while showing their chief executive and other high officials how open, friendly media relations can serve their interests.

Media Relations

Customer service is the front line of public relations.

A single incident, or a series of incidents, can severely damage a company’s reputation and erode public trust in its products and services.

Corporations are realizing that customer relations serves as a telltale public relations barometer.

Many public relations departments now regularly monitor customer feedback in a variety of ways to determine what policies and communication strategies need to be revised.

Customer Relations

This sharing of information is valuable from the standpoint of getting public relations professionals involved in active listening so they can strategize on what steps a company should take to ensure a good reputation among customers.

Public relations professionals also pay attention to consumer surveys.

A dissatisfied customer can often be mollified by prompt and courteous attention to his complaint or even an offer by to replace the item or provide some discount coupons toward future purchases.

Customer Relations cont.

Consumer Activism

DO

Work with those interested in solutions Offer transparency Turn suggestions into action

DON’T

Get emotional Work with those who make threats Expect immediate results

Customer Relations cont.

Employees have been called the organization’s “ambassadors.”

Consequently, the public relations and human resources departments concentrate on communicating with employees just as vigorously as it does on delivering the corporate story to the outside world.

Public relations professionals often are involved in counseling not only what employee policies should be created but how they should be implemented and communicated.

Employee Relations

Layoffs present a major public relations challengeto an organization.

The increasing practice of offshoring presents major internal communication challenges for public relations departments.

Companies must embrace diversity and also actively recruit ethnic minorities and people of color. A failure to do so can cause major public relations problems for an organization.

Employee Relations cont.

Investor relations (IR) is at the center of keeping a company’s health and wealth communicated to shareholders and prospective investors.

The goal of investor relations is to combine the disciplines of communications and finance to accurately portray a company’s prospects from an investment standpoint.

Some key audiences are financial analysts, individual and institutional investors, shareholders, prospective shareholders, financial media and employees.

Investor Relations

Many companies use the tools and tactics of public relations to support the marketing and sales objectivesof their business.

This is called marketing communications or marketing public relations.

In many cases, marketing public relations is coordinated with a company’s messages in advertising, marketing, direct mail, and promotion.

This has led to the concept of integrated marketing communications (IMC).

Marketing Communications

The objectives of marketing communications, often called marcom in industry jargon, are accomplished in several ways.

Product placement, cause-related marketing and corporate sponsorships are all key concepts within marketing communications.

Marketing Communications cont.

Another aspect of CSR is increased corporate concern for the environment and the maintenance of sustainable resources.

Three constructive developments in corporate public relations about the environment are:

(1) More environmental reports that show flaws and shortfalls as well as attainments(2) Fewer glossy, feel-good photos with kids and animals(3) More collaboration with green groups

Environmental Communications

Another manifestation of CSR is corporate philanthropy, which is the donation of funds, products, and services to various causes.

Corporations have long used philanthropy to demonstrate community goodwill and to polish their reputations as a good citizen.

Despite the possible downsides and controversies,corporate philanthropy is a good tool for enhancing reputation, building relationships with key audiences and increasing employee and customer loyalty.

Corporate Philanthropy

Corporate Philanthropy has a number of benefits for the corporation:

Strengthened reputation Increased media opportunities Improved community and government relations Employee recruitment and retention Enhanced marketing Research and development Increased profits

Corporate Philanthropy cont.