Chp 15 Corporate Public Relations PDF

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Professor Richard Clancy - Public Relations Unit...

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Chapter 15: Corporate Public Relations I.

Corporate Public Relations A.

Corporations seek to achieve better reputations to… 1. 2. 3. 4. 5. 6.

B.

II.

Gain credibility and build trust with key publics Ward off government regulation Maintain employee morale, boosting productivity and reducing turnover Enhance brand value and help market products/services Build investor/shareholder support Positively affect the bottom line

Key aspects of Corporate PR include 1. 2. 3. 4.

Media Relations Executive Communications Customer Relations Employee Communications

5. 6. 7. 8. 9. 10.

Investor Relations Marketing Communications Corporate Social Responsibility (CSR) Crisis Communications Issues Management Major/Special Events

Media Relations

Chapter 15: Corporate Public Relations A. Negative media coverage can cause a corporation’s reputation to plummet! 1. 2. 3. 4. 5. 6.

B.

Executives complain… 1. 2. 3. 4.

C.

Product recalls Management missteps Environmental harm Poor business decisions Sales declines Customer service mishaps Too much coverage of corporate misdeeds Media reports inaccurate, incomplete Journalists don’t do adequate research, preparation News media has anti-business bias

Journalists complain… 1. Executives are uncooperative, wary, erect barriers 2. About lack access provided by PR team to business leaders 3. Irrelevant press releases, PR people not familiar with what they cover 4. Business execs who don’t understand concept of objectivity, assume bias

D.

PR professionals can help by… 1. Showing executives how open media relations can serve both their and the company’s best interests a) b)

Briefing executives thoroughly Media training as necessary

Chapter 15: Corporate Public Relations 2. Providing background to reporters on company business operations and industry issues to ensure accurate, thorough, balanced coverage 3. Getting to know the journalist's “beat” and reporting needs so all contacts, pitches, and press releases are indeed relevant

III.

Customer Relations A.

U.S. consumer rights are protected by the federal govt… 1. Federal Trade Commission: Regulates truth in advertising and publicity 2. National Highway Traffic Safety Administration: Sets standards for auto makers 3. Consumer Product Safety Commission: Examines safety of other manufactured goods 4. Food and Drug Administration 5. Bureau of Alcohol, Tobacco, Firearms and Explosives 6. …and more!

B.

How a company talks with its customers is critical 1. 2. 3.

Customer service is on the front line Should have full support from the Corporate PR team With social media, it takes just a single incident can… a) b)

C.

damage a company’s reputation erode trust in its products/services

Customer Service and WOM experts say… 1. A dissatisfied customer will tell 9-15 people about a negative experience, while … 2. A satisfied customer will tell just 4-6 people about a positive experience or share information about how a problem was solved

D.

Working with Consumer Advocacy Groups 1.

Best to mollify by addressing complaints promptly

Chapter 15: Corporate Public Relations a)

Accommodate if possible and reasonable

2. Realize that activists demanding policy changes pose a serious threat to corporate reputation a)

3.

Their actions could ultimately affect sales as well

Do… a) Work with groups more interested in finding solutions than attracting publicity b) Be transparent (1) Need activists to see you as being open so they will keep dealing with you c) Try to turn at least some of their suggestions into action

4.

Don’t… a) b) c)

IV.

Get emotional Agree to work with anyone making threats Expect immediate results (1) Working with adversaries takes patience (2) Establishing trust takes time

Employee Communications A.

Employees a primary public for any organization 1. Front line of corporate reputation management 2. Organization’s best “ambassadors” 3. PR should devote as much effort to communications with employees as it does on delivering messages to external audiences 4. Key factor in a company’s ultimate success

B.

Companies should have clear…

Chapter 15: Corporate Public Relations 1. Employee codes of conduct 2. Sexual harassment policies 3. Media relations and social media guidelines *…that are kept updated and include employee training

C.

Layoffs: A major PR challenge 1. Be forthright yet sensitive 2. Never announce to media before employees 3. Direct supervisor should inform affected employees in person 4. Retained employees should also be told by supervisor of their status 5. Immediately afterwards publicly announce layoffs, the rationale and anticipated effects to: a) b) c) d)

V.

Community leaders, government officials Shareholders and the financial community Major clients/customers (if a small number) News media

Investor Relations A.

IR/Financial Communications Stakeholders 1. 2. 3. 4. 5.

Individual shareholders and perspective shareholders Large institutional investors Financial/securities analysts Portfolio managers Regulators from the SEC and stock exchanges

Chapter 15: Corporate Public Relations 6. 7.

Business and financial news media Employees a) b)

with stock options or… company stock in retirement plans

VI. Marketing PR A. PR tactics used to support sales and marketing objectives B. IMC coordinates PR with advertising, marketing, promotion, email, content marketing, search, social marketing, and market research C. PR often leads the way to gain early awareness, earn credibility and create anticipation for a product D. PR helps create brand value and product positioning E. Marketing PR strategies and tactics often include: 1. 2. 3. 4.

Product publicity Product placement Corporate sponsorships/events Viral and word-of-mouth (WOM) marketing, extending to… a) b)

5.

Influencer marketing, ratings-and-reviews Content marketing

Cause-related marketing a) Nonprofit collaboration advances nonprofit’s cause with funds/awareness, while company brand gains goodwill and product sales b) Tied to CSR, but not philanthropy

VII. Corporate Social Responsibility (CSR) A.

Publicity and CSR:

Chapter 15: Corporate Public Relations 1.

Good publicity may result a)

2.

Best when initiated by the nonprofit or charity a)

3.

Not the corporation!

Don’t overcommit, deflect, or under deliver! a) b)

B.

But shouldn’t be the primary objective!

“Greenwashing” “Pinkwashing”

Types 1. 2. 3. 4.

Environmental and Sustainability Commitments Community Relations Philanthropic Endeavors and Corporate Foundations Cause-related Marketing a)

5.

Experts debate if these are truly CSR programs or not

Philanthropy and corporate foundations...