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MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
CORPORATE PUBLIC RELATIONS
DEFINING THE PARAMETERS
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Defining corporate public relations
It is difficult to find a universally accepted definition of
corporate public relations which defines the parameters
of the function.
corporate public relations is perhaps best understood as
the ‘umbrella’ function embracing the range of
communications functions concerned with managing an
organisation’s relationships with all strategically important
stakeholder groups- those groups that might limit the
autonomy of the organisation or who are affected by the
organisation’s actions.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Such stakeholder groups may be quite diverse in nature but
broadly include the following major groups:
Customers
Employees
Investors/Financial community
Relevant communities
Suppliers
Trade intermediaries/ Retailers
Government /Regulators
Here communication functions may be organised around
each of these major groups.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Each of these stakeholder groups may hold differing expectations
of a company/organisation and hence, judge an organisation
according to differing criteria.
Example
Investors expect sound management and financial performance, whereas
customers want reliable products and services and employees expect
good work environments and to be treated fairly and honestly.
Balancing these different demands can prove difficult, particularly
in the short term.
Example
Investor demands may be incompatible with those of employees in terms of
cost reduction vs. job security.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Equally organisations may have to prioritise which of these
groups it needs to communicate with at different times or at least
which it will devote the most attention to
This may involve assessing which groups hold the greatest
power and/or have the greatest interest in particular issues and
who therefore require the greatest effort and conversely which
can be given less attention or ignored.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Interest Matrix
Low
Level of Interest High
Low Minimal Effort Keep Informed
Power
Hardest to reach
High at a minimum Key Players
Keep Satisfied
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Confusion over Functional Titles
Nowadays it is common to find a range of titles used to
designate the corporate PR function; corporate affairs,
public affairs, external affairs and increasingly- corporate
communications.
Indeed it is increasingly rare to find the term “corporate
public relations” used as the functional title. This is
largely due to the negative connotations often associated
with the term “PR” which tends to be associated with
the manipulation of the media, ‘spin' and tactical publicity
work.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
However, at least conceptually, public relations is the
appropriate term to describe the range of communication
activities concerned with managing relationships with
an organisation’s publics.
Authors such as Argenti (1998) see public relations as a
largely tactical activity out of which more sophisticated
corporate communications departments have grown since
the 1970s in response to the more challenging environments
in which organisations operate nowadays.
Here Argenti associates PR primarily with media relations
activity whereas he see corporate comms. as a strategic
communication function.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Blauw (1994) defines corporate communications as;
“ the integrated approach to all communication produced
by an organisation, directed at all relevant groups”
Jackson (1987) suggests;
“Corporate communication is the total communication
activity generated by a company to achieve its planned
objectives”
& van Riel (1992) suggests[ adapted];
Corporate communication is an instrument of management
by which all consciously used forms of internal and external
communication are harmonised effectively to create a
favourable basis for relationships with key target groups
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
van Riel (1992) suggest that corporate communication
integrates three main forms of communication in
organisations:
Management communication: senior management
communication with internal & external target groups
Marketing communication: communication with target
markets/customer groups
Organisational communication: comprising public relations,
investor relations, corporate advertising etc
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Here the term “organisational communication” is used to refer to all
forms of communications other than marketing communications -
what public relations scholars would normally see as the domain
of public relations and public affairs.
Thus van Riel views public relations as a narrower sub-set of
organisational communication
van Riel’s argument is that the failure to integrate these
communication function leads to a fragmentation of the messages
communicated by the organisation and he argues that the total
communication effort needs to be managed collectively to achieve
a coherent communications policy.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Here van Riel emphasises the need to orchestrate all
communication towards a coherent whole which he sees as
directing a company’s communications policies from within a
corporate strategy- corporate identity –corporate image
triangle.
He suggests that the communications specialisms jointly develop
common starting points [CSP] from the chosen communications
strategy, which is itself derived from the company’s actual and
desired identity and company image. These CSPs represent the
central values which underpin and guide all communications
activity.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Strategy
Identity Image
CSPs
Management Marketing Organisational
Comm comms Comms
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
These CSPs van Riel suggests can be defined at both an
organisational level and also for each business unit. In both cases
they are defined in terms of:
What each organisation/business unit promises to its
stakeholders…
How they intend to prove this…&...
What tone of voice will be used to communicate the message.
More specific communications plans are then drawn up detailing
the knowledge, attitudes and behaviour that the plans are
intended to produce.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
However van Riel acknowledges that corporate
communication should not be seen as a new discipline, rather
a new way of looking at communication.
He views corporate communication as closely bound up with the
concepts of corporate identity and image in that corporate
communication [ in all its forms] is the chief [controlled] means by
which an organisation’s identity is communicated to external
groups and thus influences the image that they hold of it.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Why is the communication function increasingly recognised
as vital to organisational success?
Nowadays it is generally accepted that organisations face
greater challenges in pursuing their goals than was the case
perhaps 20 years ago.
The factors which have so radically changed attitudes
towards communication include:
Greater scepticism and hostility towards big business
More sophisticated and powerful consumer groups
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Globalisation of the media and more intrusive media
reporting
More powerful and sophisticated activists groups
Increasing regulation of business reflecting society’s
changing expectations of business
Better educated and more demanding employees
Greater acceptance by management of the need for big
business to act as more responsible corporate citizens
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
What activities comprise the corporate PR/ corporate
communications function?
The activities or sub-functions which are normally seen to
be part of the corporate PR/ Comms function may vary from
organisation to organisation, depending on the the way the
communications function is structured and the perceived needs of
the organisation, in terms of [corporate] communications.
Here, the range of sub-functions that might be
found in a relatively large organisation’s corporate Comms.
department might include :
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
The Range of Sub-Functions that might come under the
Umbrella of Corporate PR/ Communications
Media relations
Employee communication
Corporate advertising
Community relations
Investor relations/Financial PR
Issues management
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Corporate identity design
Crisis communication
Speech writing
Corporate Donations/Sponsorship
Environmental management
Government relations
Brand and market-related communications
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
The extent to which these functions exist will depend to a large
degree on the size and structure of the organisation and of the
PR/Comms Dept. itself.
Even in relatively large organisations, there may be only
a relatively small team of practitioners responsible
for carrying out all the communications activities rather than
having specialists responsible for each sub-function.
This is particular true of UK organisations where the
corporate PR/ comms. function is still at a relatively early stage
of development.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Where larger corporate PR/ Comms functions do exist, the majority of the
staff tend to be engaged in more tactical media relations/ publicity
work.
At Diageo a leading international premium drinks group, the corporate
communication function comprises some 23 people in the group HQ
function divided between five areas:
External communications
Internal communications
Brand and market team
Corporate citizenship
Scottish operations
www.diageo.com
The HQ function is supported by regional functions organised around the
key geographical markets/ businesses.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
At Standard and Chartered Bank the HQ Corporate Affairs department
is comprised of only 9 staff, although there are some 45+ people
working in corporate affairs in separate branch offices based in Africa,
Asia and Europe.
www.standardchartered.com
At Manchester Airport the corporate affairs department comprises
some 14/15 staff who are responsible for media relations, employee
communications, partner business communications, community
relations and public affairs.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
In recent years there has been a trend towards downsizing
centralised functions in all fields and this trend has been seen in
the PR Corporate Comms area where organisations seem to be
relying increasingly on a relatively small team of in-house
practitioners who handle the more ‘strategic’ aspects of the work,
issues management, comms planning, government liaison, etc.
External agencies may then be employed to support the tactical
implementation of communication programmes.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Conceptualising the Corporate Communications process:
Several models have been advanced to help conceptualise the
role and process of corporate communications. These models
emphasise the importance of analysing the relationships
between organisations and their stakeholders and the
consequences of their respective behaviours/action for the
other party(ies).
Here corporate comms serves as a mediating force to help
create understanding, build relationships and resolve
potential conflict.
Strategic MARKETING: Public Relations Model Adapted from Argenti (1998)
MA ADVERTISING & Corporate Communication & Corporate Communications Module
Messages/Images
Content / structure
of messages
Channel selection Stakeholders
Organisation
consequences Defining key
Organisational goals stakeholder groups
Organisation’s position and image Stakeholder perceptions
What action is required of the organisation
from each of its stakeholders Attitudes/ behaviour
towards issues/ org’s
stance on issues
consequences Stakeholder
responses
Outcomes did the stakeholders
respond in the way desired?
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Model of Strategic Management of PR/Corporate Comms
No consequences
Management Decisions
Consequences
Consequences
Organisational
Reputation
Comms Programmes
Relationship Relationship Mgt
outcome Conflict Mgt
Publics
Achievement of
Org. Goals Crisis
management
Behaviour of
Publics creates
Issues
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Another way of thinking about the scope of the work of
the corporate PR/Comms function is to consider the
areas of ‘domains’ with which the organisation may
interact.
Each of these ‘domains’ focus around particular sets
of stakeholders and may give rise to differing sets of
issues that the organisation has to address.
Here the ‘communications domain’ is seen as the
linking mechanism through which the organisation
responds to the issues/ challenges that may emerge
from each of the other domains.
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
The key domains of the corporate PR function; Interrelationship of areas of concern
Financial Domain Business Domain Political Domain
Financial performance Customer relations Legislation
Investor relations Trade relations Regulatory issues
Supplier relations
Takeovers/ mergers EU directives
competition
COMMUNICATIONS DOMAIN
Corporate Media
Organisation relations
identity
Corporate advertising /communications
Employee Domain Community Domain
Environmental Domain
Employment policies Corporate citizenship
Environmental policies
Trades unions Community relations
Conservation issues
Equal opportunities Corporate
Env.pressure groups
Restructuring responsibility
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
Helping to manage major
corporate restructuring
Handling the introduction
Supporting business expansion
of a new corporate identity
through building the organisation’s
corporate/brand reputation
Managing corporate donations
& corporate giving. (CSR)
Examples of Corporate PR Design and maintenance of internal
communications systems
Comms Activity
Developing local community
relations programmes (CSR)
Defending the organisation from
criticism by external bodies/ media
Building relationships with the
financial community/media/City
Helping to defend the company
Handling the release of during hostile takeover
financial results
MA ADVERTISING & MARKETING: Public Relations & Corporate Communications Module
