Lecture Business and society: Stakeholders, ethics, public policy (14/e): Chapter 19 - Anne Lawrence, James Weber

Chapter 19 - Managing public relations. In this chapter, students will be able to understand: Examining the structure and activities of a public relations department, both domestically and globally; understanding how technology can enhance a public relations strategy for both small and large businesses; evaluating strategies used by business organizations to influence public opinion;…

Chapter19 Managing Public Relations McGraw­Hill/Irwin Copyright © 2014 by The McGraw­Hill Companies, Inc. All rights reserved Ch 19: Key Learning Objectives  Examining the structure and activities of a public relations department, both domestically and globally  Understanding how technology can enhance a public relations strategy for both small and large businesses  Evaluating strategies used by business organizations to influence public opinion  Identifying government regulatory agencies charged with protecting the public from illegal business practices  Assessing effective crisis management plans  Evaluating techniques used by business to assist employees who interact with the media 19­2 The General Public  An organizational stakeholder composed of individuals and groups found in society  The general public affects the firm through its opinions of the firm’s activities or performance, which in turn help shape the firm’s public image or reputation  Companies should be aware of public positions on important issues, especially since the public may not always share the same views as the firm  Similarly, the firm can affect the general public’s values, attitudes, and actions through various communication channels 19­3 Public Relations in an Emerging Digital World  An effective public relations program is fundamental to any organization’s relationship with the public  A good public relations program sends a constant stream of information from the company to the public and opens the door to dialogue with stakeholders whose lives are affected by the company’s operations  The role of the public relations department is to manage the firm’s public image and its relationship with the public  It does so through both direct communications (e.g Web site) and indirect communications (e.g newspapers) 19­4 Figure 19.1 Public Relations Activities 19­5 Public Relations in an Emerging Digital World  With the emergence of new technologies the variety of available channels of communication for public relations officers have grown dramatically  More and more people are finding their news, marketing, and public relations information through Internet-related vehicles  CEOs and other senior executives are some of the key participants in a new form of business communication – blogging  The Internet-based communication revolution has significantly benefited smaller businesses as well 19­6 Global Public Relations  Global businesses have extended their public relations strategies globally  When public relations take on a global perspective, new challenges emerge  Sensitivity to cultural disparities and similarities when crafting messages  Must ensure that sufficient funding is allocated globally for a positive and effective public affairs impact  All of the basic public relations tasks are more complex in an international business environment 19­7 Influencing Public Opinion  Public Service Announcements  Since 1942, the Ad Council has been the leading producer of public service announcements, addressing critical issues for generations of Americans and global citizens  The longest-running PSA in American history, introduced in 1944 and continuing today, features Smokey the Bear’s “Only you can prevent forest fires”  Modeled after the actions taken by the Ad Council, businesses have discovered that public service announcement-like advertisements are an effective means for promoting various social issues or topics that resonate with the public 19­8 Influencing Public Opinion  Image Advertisements  Used by business organizations to enhance their public image, create good will, or announce a major change such as a merger, acquisition, or new product line  These ads promote the image, or general perception, of a product or service, rather than promoting its functional attributes  The target the public’s emotions and seek to influence the consumers’ imaginations  Different than issue advertisements that focus on a public policy issue or piece of legislation 19­9 Protecting the Public through Government Regulation  Advertising used to promote the organization and its products must meet both ethical expectations  The Federal Trade Commission is entrusted with ensuring that honesty and fairness are found in company advertising  The FTC jurisdiction applies to advertising in any medium, including online advertising  The Federal Communications Commission, created in 1934, is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable 19­10 Crisis Management  A critical function of the public relations manager  Corporate crisis – a significant business disruption that stimulates extensive news media or social networking coverage  A crisis is any event that has the potential to negatively affect the health, reputation, or credibility of the organization  The Institute for Crisis Management breaks down corporate crises into four groups: • Act of God • Mechanical problems • Human errors • Management decision or indecision 19­11 Crisis Management  The process organizations use to respond to short-term and immediate corporate crises  An effective crisis management plan must include these steps:      Get ready before the crisis hits Communicate quickly, but accurately Use the Internet Do the right thing Follow up, and where appropriate, make amends to those affected 19­12 Media Training of Employees  Media training is necessary because communicating with the media is not the same as talking with friends and coworkers  By the late 2000s, engaging with “the media” took on a new dimension with the inclusion of social media  As an organizational representative, the words one speaks take on a special, official meaning  Facial expressions, the tone of one’s voice, and body language can convey positive and negative impressions  Media communication experts generally give their clients the following advice:  Be honest, current, accessible, helpful, understanding and cool, courteous, and professional 19­13 Media Training of Employees  Typically the news media is looking for a sound bite  a short (often 30 seconds or less) clip of information that can be broadcast to the public  Some of the best techniques to assist a spokesperson to stay on point when challenged by a reporter with a tough question are the following  Hooking • Grab the reporter’s attention by making a statement that influences the next question  Bridging • Answer the challenging question but quickly move on to the key message  Flagging • Emphasize key points and guide the reporter to them 19­14 ... and its relationship with the public  It does so through both direct communications (e.g Web site) and indirect communications (e.g newspapers) 19? ?4 Figure 19. 1 Public Relations Activities 19? ?5... a positive and effective public affairs impact  All of the basic public relations tasks are more complex in an international business environment 19? ?7 Influencing Public Opinion  Public Service...Ch 19: Key Learning Objectives  Examining the structure and activities of a public relations department, both domestically and globally  Understanding how technology can enhance a public