Today’s Modern Corporation

a. Modern Corporations have customers and operations around the world.

b. A Corporation has a face in terms of its products.c. The public is distrustful of the power, influence,

and credibility of giant corporations and businesses.

d. Only 27% of Americans feel that most large U.S. Corporations are trustworthy.

The Role of Public Relations

a. Corporate Social Responsibility (CSR)b. Restoring Trust in Business: Models for Actionc. The role of a public relations executived. Corporations seek a better reputation

because…e. Corporations face a number of pressures and

counter pressures when making decisions and forming policies.

PoliticalTechnological

SocialEconomic

Media RelationsReporting by the media is a major source of public information and perceptions about the business world and individual companies.

a. Negative coverage can cause a Corporation’s reputation to plummet.(Ex: Wal Mart)

b. As a result, Corporate executives view the media as an enemy!

c. Complaints about media coverage.

d. Journalist fight back!e. Media can be both

damaging as well as rewarding to businesses.

f. Where are all the good business journalists?

vs.

Customer Relations

a. Sellers Expectationsb. Consumer Rightsc. Surveys indicate that a

person who has had a bad experience share their story with an average of 17 people and share their positive experience with only 11 people.

d. Internet and public opinione. The value of customer

feedback.

Reaching Diverse Marketsa. A more diverse group of people is expanding here in the

U.S. and will soon constitute a larger share of the consumer marketplace.

b. When creating a product companies need to focus on a every possible consumer.

c. Many public firms have set up specialty practices for multicultural marketing communications.

d. Companies have setup departments to reach minority audiences.

Consumer Activism Consumer Activists are a serious

threat to Corporate reputation because they can affect sales and demand changes in Corporate policies.

How to Work with Activists

Do: Work with groups who are more interested with

solutions rather than getting publicity Offer transparencies: Activist who feel you're not

open aren't likely to keep dealing with you. Turn their suggestions into options.Don’t: Get emotional when dealing with advocacy groups. Agree to work with anyone making threats. Expect immediate results…..establishing takes

time.

Consumer Boycotts

The success of Consumer boycotts is mixed. Some companies are not affected by boycotts because they have various products under one brand name. Other single product names are more vulnerable to boycotts.

Employee Relations• Employees are the front line of any

executive public relations program.• A company's reputation can be

enhanced or damaged by how rank-and-file employees feel about their employer.

• Employees = ambassadors• A work place that respects its

management, has pride in its products, and believe it is being treated fairly is a key factor in Corporate success.

Employee Issues Should be Addressed

a. Health and Medical benefits.b. Sexual Harassment.

Layoffs and Outsourcing

a. Never announce the situation to the media first always inform the employees first.

b. When informed, employees should be told in person by their immediate supervisor.

c. Employees who are being retained should be spoken to by their immediate supervisor about their status.

d. Companies interested in maintaining their reputation and their employees trust must make an effort to cushion the layoff by implementing programs.

OFFSHORING: Many American companies are using lower paid professionals from different nations to do everything from customer service to software engineering and accounting.

The Cardinal Rules

Employee Volunteerism

• Many companies as a part of their Corporate citizen outreach, have developed programs that allow employees to volunteer for charitable work on company time.

• Doing good is good business.

• Employees feel good about where they work and what they do.

Marketing Communicatio

ns

a. Marketing Communications or Marketing PR: Many companies use the tools and tactics of public relations to support the marketing and sale objectives of their businesses.

b. Integrated Marketing Communications: Companies manage all sources of information about a product or service in order to ensure maximum message penetration.

c. Publicity in the form of news stories builds credibility, excitement in the market place, and consumer anticipation.

The new model of the Beetle Volkswagen was introduced by video releases, during popular TV segments, and at the key auto trade.

Product Publicity

Companies have turned away from costly ads and turned to different alternatives…

a. Sponsoring a Poll

b. Contestsc. News Articles Product Placement in TV or

Movies

Cause Related

Marketing: Profit-making companies

collaborate with non-profit organizations to advance its cause and at the same

time increase sales.

Corporate Philanthropy: Donations of funds, products, and services to various causes.

The Benefits of Givinga. Strengthen reputation and brand recognitionb. Increased media opportunitiesc. Improved government and community relationsd. Enhanced Marketinge. Access to research and developmentf. Increased corporate profitability

The End