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MSc Corporate Communications - PR Theory and Background
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PS 438 Lecture 2
Introduction to Public Relations
Lesley Muir, January 14th 2011
My Background
– PR practitioner for 15 years– Independent consultant – ‘Good Public
Relations’– Focus: B2B - IT, corporate finance, tax, food– Linked In profile– Example projects
Agenda
• Overview of PR– Definitions, industry, models
• Corporate communications– Building blocks: stakeholders, identity,
reputation
What is PR?
• Press releases? Media relations, press coverage? Publicity? Spin?
• A mystery (Cropp & Pincus)– definitions differ widely– Identity crisis – Hutton
• Grunig & Hunt: “management of communication between an organisation and its publics”
• Why the Media? – channel for communicating with certain stakeholders – influence and reach – widening to bloggers
Some Typical PR Problems– Awareness of an organisation/issue/product/service and influence
adoption of the above
– Understanding among publics around new policy
– Create/sustain/repair forms of identification (branding)
– Create/maintain/repair “voice” or persona for an organisation
– ID and implement CSR
– ID and respond to marketplace issues
• Success dependent upon the development of relationships– Marketplace – customers, employees – financial rewards
– Community – mutual support in exchange for reputation
– Policy – improve operating environment
• Boundary spanning
Sector structure
• CIPR - 60 years old, £££million industry• 50,000 plus practitioners in UK • In-house (corporate, NFP) v.s. consultancy• Big players - global footprint, specialists• Job types: Media relations, Public affairs,
External relations, Publicist, Employee communications, CSR Manager, Investor relations, Digital communications, Social media specialists, Evaluation
Hutton – What does PR involve? • 3 Dimensions – interest, initiative, image• Definition:
– Managing strategic relationships - individuals and organisations
• Situational roles:– Persuader, advocate, educator, information provider, reputation
manager – evolved as PR discipline matured
• Primary functions performed:– Research, image making, counselling, managing, early warning,
interpreting, communicating, negotiating
• Tactics/tools utilised:– Publicity, product placements, news releases, speeches,
interpersonal communications, web sites, publications, trade shows, corporate identity programmes, corporate advertising
Grunig’s 4 PR modelsCharacteristic Press agentry
/ PublicityPublic Information
Two-way asymmetric
Two-way symmetric
Purpose Propaganda Dissemination of information
Scientific persuasion
Mutual understanding
Nature of communication
1 way, truth inessential
1 way, truth important
2 way, imbalanced effects
2 way, balanced effects
Philosophical worldview
asymmetrical Pluralistic/
asymmetrical
asymmetrical symmetrical
Mono/dialogic monologic monologic Unbalanced monologic
dialogic
Habermasian equivalent
Strategic action
Strategic action
Strategic action
Communicative action
Game theory outcome
Zero sum Zero sum Zero sum Positive sum
• “Nowadays a company without PR representation at Board level is missing a trick….” Zetter, ex CIPR chair
• “Many headed hydra from IR to CSR to publicists …phenomenal work in charity sector…” Borkowski
• “PR enables organisations to communicate in a coherent and organised way…. allowing people to make their own judgements…” Lewis Jones
• “Not just about column inches but developing relationships that deliver business traction and benefits” Wright
• “If it’s good PR you will never know it…”
Grunig’s Excellence Study• IABC research conducted in early 1990s into
communication excellence• Questions:
– How and what does PR contribute to organisational effectiveness? How much is this contribution worth in monetary terms?
– What characteristics of PR function increase excellence and what is the contribution of PR to organisational effectiveness?
• Identified 3 key contributors to “Excellence”: – Communicators had the knowledge to practice symmetrical
communication– Communicators were members of their organisation’s dominant
coalition – different to SMT– Organisation’s culture facilitated symmetrical communication
• Critics – unachievable – utopian, power issues
.
Conclusions – Grunig’s response
• Clarification of symmetry vs. asymmetry– Not pure consensus - balanced (self) interest
– “Organisations get more of what they want when they give up some of what they want” – Excellence study findings
– Limits to potential for collaboration - inhibiting scenarios
• Mixed motive model – hybrid “co-operative antagonists”– Murphy (1999) – game theory approach
– “PR increases organisational effectiveness when builds long term relationships based around trust and mutual understanding with strategic publics and symmetrical or asymmetrical, either alone or used together as the mixed motive model would be most effective in achieving these goals.” Grunig
Target
publics
Corporations seeking to shape and influence relevant discourse
Media offers legitimacy and advocacy with 3rd party influence
Messages
Information negotiationEvaluation and choices
Messages
Individual and collective voices - strengthening
Output = Altered social perspectives -New ideas, objects of desire, discourses
social representations, mythsREPUTATION MANAGEMENT
REPRESENTATIONAL PROCESS
Wider Society
PR ‘Toolbox’ from Foucault• Foucault:
– How did the accepted ways of understanding and speaking about our milieu and the wider world come about?
– Why do we believe and think about things in the way we do?– Concepts of discourse, power/knowledge and subjectivity
• Motion and Leach (2007) - PR has central role in– Practice of constructing and transforming discourse – Way PR acts to create meaning - three levels
• Ideational – promoting new concepts, ideas, thoughts = “selling ideas”• Relational – managing relationships – systems of power/knowledge,
influence, hegemonic practice = “agent with the right connections” • Identity – creates and advises upon the “subject” position – how the
organisation/individual/issue is viewed e.g. celebrity publicists, brand values, training for spokespeople
– “Technologisation” of discourse is what PR practitioners do– Makes more thoughtful practitioner – how and why PR works
Raincoats and Umbrellas
Handy (1994) – The Empty RaincoatOrganisations lack substance and are hollow
Kitchen and Shultz (2001) – Raising the Corporate Umbrella•Umbrella metaphor - CC underpins organisational strategy – favourable climate•Integration, substance, dialogue
•Increased importance of PR - evolution to corporate communications•Centralised function - internal and external alignment•Single organisational identity, culture - reputation•Manage competing/conflicting stakeholders
•Core concepts – stakeholders, identity and reputation
Stakeholder Auditing
Power
LegitimacyUrgency
Dormant
Dangerous
Definitive
Dominant
DependentDemandingDiscretionary
Non-stakeholders
Stakeholder Classifications• Mitchell, Agle & Wood (1997) theoretical model
• Single attribute:– Dormant – disgruntled employees, lapsed customers
– Discretionary – museums, galleries, philanthropists
– Demanding – isolated activist
• Two attributes:– Dominant – employee shareholders, investors
– Dependent – local community
– Dangerous – terrorists, employee saboteurs
• Three attributes:– Definitive – stockholders, customers, big NGOs, employees
Identity• Self-representation of an organisation, anchor for communications
• (Cheney and Christensen) Organisational + corporate = total identity – 2 sides of the coin
• Communication needs to mirror the reality
– Symbolic + behavioural => ideal of transparency
• Multiples – Balmer’s ACID test
– As perceived by the audience – perception is the truth
– Reality of the identity is what the audience takes away
• Balmer & Gray, Argenti – 10 factors behind saliency = invest in “corporate brands”
– Faster innovation rates (product lifecycles), deregulation, privatisation, competition, globalisation, M&As and divestments, talent wars, CR expectations, stakeholder management (tensions)
REPUTATION
IMAGE
IDENTITY
Immediate mental picture held by an individual
Lasting belief, held by an individual and shaped by group’s past experience, WOM, endorsements, experiences
Stakeholders and media can influence perception (reputation)
Aka corporate brand. Value rooted in difference
Balmer’s AC2ID test• Alignment of multiple organisational identities
• Misalignment: “moments of truth”
Communicated
Actual
Conceived
DesiredIdeal
Reputation • Fombrun “a perceptual representation of a companies’ past actions
and future prospects that describe the firm’s overall appeal to all of its key constituents when compared to other key rivals”
– reputation signals firms’ status within the industrial social system.
• Pre-requisites: legitimacy and transparency (alignment with corporate identity)
• “Good reputation is very useful for an organisation: it may enable it to charge premium prices for its products, enter into favourable financial arrangements with banks, attract graduates from top universities, get in touch with customers easily, and so on, such that good reputation constitutes a valuable asset to the organisation.” (Fombrun and Shanley, 1990; Shapiro, 1983)
Key CC Challenges
• Integrating communications within the business• Communicating with diverse stakeholders• Executing an online strategy• Maintaining trust• Managing the 24 hour news culture• Maintaining SOV
The Harsh Reality
• “You and I have heard about the work we each have been doing and a mutual friend has been trying to get us to meet for over a year. Finally we are both at the same conference and our friend brings us together at the reception. You introduce yourself and say a few words….I stop you and say I’ve only got a few minutes to spare and I want to tell you all the good things I do and how fortunate you are to have me around.
• Valid for 95% of corporate communication scenarios• Audience: relevance and meaning
(Quote source: Oechsle 2002)
Podcast
• Charles Fombrun on Reputation