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CHAPTER 7 BUSINESS AND INDUSTRY, Communication Guidelines to Deal with…
CHAPTER 7
BUSINESS AND INDUSTRY
Role of PR in Business Industry
Help business create environment in which owners and investors are satisfied with the return on investment
Help business attract new customers
Keep present customers satisfied with the product and services
AREAS OF CORPORATE PUBLIC RELATIONS PRACTICE
EMPLOYEE RELATIONS
Employee looks for non-monetary aspects of their
relationship with the organization such as
Opportunity for advancement
Job security
Recognition for service rendered
Main objective of a PR program for employees is to gain trust and confidence
Survey employee's attitude regularly - identify problem befire turning into crisis
Be consistent - practice an open and honest communication
Personalize communication - giving personal attention to workers
Be candid - honesty in everything management says
Be innovative - provide innovative solution
Industry Relation
Organization must fully understand the goals of employee’s union in their organization in order to be effective when dealing with them
Public Relation can help the organization to have a good industry relation by
Provide Motivation for the employee (promotion/awards)
Allow employees to participate in managerial decisions
Communications Tools in Employee Relations or ways management can communicate with the employees
Newsletters/House Journal
Bulletin board
Audio-visual presentation
Face-to-face communication
Meeting
Electronic
COMMUNITY RELATIONS
Contribute to the well being of the surrounding society
Building good image to gain positive perception by the community
Community expect resident business to provide
Appearance
The business/factory is expected to be attractive
Participation
Organization is expected to be involved in community affairs such as education and welfare activities
Stability
Organization can provide long-term job for the community/residents
Pride
Organization that the community can be proud of
Community Relations Activities
Local media relations – providing local press with relevant information
Tour to factory/organization
Open day
Sponsoring local events or public facilities
Talk and presentation by employees of the organization
CONSUMER RELATIONS
Organization must pay special attention on public opinion among consumers
Consumers through their association can be a threat if not properly handled
Objective
Keeping old customers
Attracting new customers
Marketing new items or services
Handling complaints
Reducing cost
Marketing and Public Relations
PR has long been an essential support to the marketing effort, particularly in consumer products and services
Many organization has include public relations in their 'marketing mix'
Some companies spend 20% of their marketing budget in public relations.
By being involved in the client marketing functions, public relation can help assure totally integrated marketing communications, strategically focused and cost effective
IMAGE BUILDING
An image is the impression of a person, company or institution that is held by one or more publics
PR main aim is to establish and maintain a correct image or impression of the organization
PR must take immediate action when an organization’s image has been tarnished
Positive image is particularly important with regard to the
following aspects
Hiring employee
Marketing of products and services
Gaining support from community
Type of Image
Mirror Image
How the management thinks the public view organization
Current Image
Perception by people outside the organization
Wish Image
The one the management wishes for
Corporate Image
Image of the organization as a whole rather than of the products or services. Based on company history, financial success and stability or industrial relations
Multiple Image
An organization which has a number of individuals, branches or other representations, may each create a particular image that does not conform to a uniform/standard image for the total organization
How Image Can be Measured
What the organization does with regards to product, services, and employees
What organizations says through communication with employees and customer
What people believe it to be
ISSUE MANAGEMENT
Definition
“Issues management is the proactive process of anticipating, identifying, evaluating and responding to public policy issues that affects the organization’s relationship with its public”
Effects of an Issue
Affect an individual organization
Affect the whole industry
Affect public interest
Process of Issue Management
Identifying the issue - through theory and research
Analyze and delimit the issues through judgement and priority setting
Display various strategic
Implement an action program
Evaluate its program
The Issues Management Process
Issues Identification
Issues Analysis
Policy Options
Program Design
Results
Role of PR Practitioner in Issues Management
Know what is going on inside and outside the organization
Know how organization’s activities and functions interrelated to those of others
Bring awareness and usable facts to decision making process
PR must act as a mediator or intervener and relationship builder to prevent a potential problem from getting out of hand
PR is the most suitable person to face issue because of their access to top management
Issues Management Strategies
3 Strategies to control an issue
Containment for an emerging issues
Shaping for those issue that already get media attention or has become a public agenda
Coping for issues face legislative action.
CRISIS MANAGEMENT
“A crisis is an unstable time or state of affairs in which a decisive change is impending either one with the distinct possibility of a highly desirable and extreme positive outcome. It is usually 50-50 proposition, but you can improve the odds.”
Crisis Management is the art of removing much of the risk and uncertainty to allow a company more control of their own destiny
Crisis is not necessarily bad for the company. If crisis is handled well, it can bring positive outcome to the organization
Methods and policy the corporation uses in distributing information when its operation become involved in an emergency situation affecting the public
Crisis are normally causes by management failures or environmental factors. Some of the causes of crisis are
Natural
Technology
Confrontation
Malevolence
Skewed management values
Deception
Management misconduct
Business and economic
Type of Crisis
Immediate Crisis
Immediate crisis is the most dreaded type
It happens so suddenly and unexpected
Little or no time to do research and planning
Immediate crises is handled by advance consensus among top management for a general plan on how to react to such crisis to avoid confusion, conflict or delay
Emerging Crisis
Allow more time for research and planning
May erupt suddenly after brewing for a long time
The challenge for PR is to convince top management to take correct action before it reaches a critical stage
Sustained Crisis
Those that persist for months or years despite the best effort by management to solve them
Spread through rumors or speculations and sometimes is outside the control of PR
Communication Guidelines to Deal with Press During Crisis
Speak first and often
Don't speculate
Go off the record at your own risk
Stay with the facts
Be open, concerned and defensive
Make your point and repeat it
Don't establish war with the media
Establish yourself as the most authoritative source
Stay calm, be truthful and cooperative
Never lie
Warning Sign About Impending Crisis
Escalating in intensity
Falling under close media or government scrutiny
Interfering with normal operations of business
Jeopardizing the public image presently enjoyed by a company or its office
Damaging a company's bottom line in any way
Guidelines for Preparing for Public Relations Crisis
Identify things that can go wrong and become highly visible
Assign priorities based on which vulnerabilities are most urgent and most likely
Draft questions and answers and resolutions for each potential crisis scenario
Focus on two most important task – what to do, what to say during the first critical hours following the crisis
Develop a strategy to contain and counteract
AREAS OF CORPORATION PUBLIC RELATION PRACTICE
FINANCIAL RELATIONS
PR helps top management in the public financial relations in areas such as
How to deal with financial press
How to communicate news to investors
How to inform employees about the impact changes would have on their jobs
Assisting with analyst presentations
Preparing speeches to top management during meeting with shareholders
Working with the news media during 'road show'
Requirement of a Financial Public Relations Practitioner
Be honest, accurate and prudent
Be acknowledgeable in this specific phase of communication
Have the ability to convince and motivate others
Have the planning skills that can be translate into immediate actions
Strategic Financial Public
Shareholders
Prospective shareholders
Financial community, bankers, financial analyst, trustees, investment advisors, fund managers, insurance companies
Financial media such as Wall Street Journal
Government regulatory body such as Securities Commission and Kuala Lumpur Stock Exchange
GOVERNEMENT RELATIONS
Most organization try to maintain good relations with the government to ensure that they gain relevant support or necessary assistance in doing their business
In order to comply with government rules and regulation, PR role in government relations is very important in negotiation and in effort to influence policy and procedure
This relation is mainly to secure goodwill between organization and the ruling government
Communication Activities with Government
Fact finding – provide the organization with advance information about future government rules and policies
Liaison – PR makes personal contact to exchange information with government officials
Interpretation of government action to management
Information giving – providing information to government
Advocacy – PR recommend to top management on what should be done to influence government decision making policy
Non-business organization – PR works with the representative of association in federal governmental relations programs i.e. association of education institutions
Theory and Research
Judgement and Priority Setting
Policy and Strategy Selection
Implementation
Performance Evaluation
NUR NAJIHAH BINTI AMIN NASER (2019420906) BA111 4C