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Corporate communications
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Corporate image
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Corporate identity
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Reputation
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Corporate credibility
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Ethical considerations
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Ethical dilemmas in public relations
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Corporate social responsibility
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Managing local and regional sensitivities
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Briefing on group assignment 2 (Critique of a CSR programme)
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Summary for the day
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Corporate Communications
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Effective corporate communication is
vital for companies and organisations to
have a positive image and to be seen
as good corporate citizens.
To communicate broadly with a range of
stakeholders and large groups such as
communities, management has to use
public communication techniques
2
Effective Corporate PR MUST focus
on the following:
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The credibility of the corporation and the
corporate management
Demonstration of corporate concern for
individuals
A more thorough public understanding of the
economic realities of corporate life
Information on profits, productivity, pricing
and distribution of the sales dollar
A willingness on the part of business to help
solve some of the problems of society
3
Corporate Image
Definition
- An impression, perception, belief, appearance which characterise
the organisation. Could be true picture of the organisation or half
truth of the organisation. Also known as recognition, reputation,
credibility or integrity.
A Good Corporate Image
- Is one which has all it’s physical appearance matching the ideas,
pricnciples, philosophy the organisation professes to be ie it is
true to itself
A Bad Corporate Image
- Is one which is having the “stated” and the “real” being different,
or it’s practises/values differing vastly from the reasonable
expectation.
4
Identifying Organisation / Persons /
Products with a Staying Image
Name the first person/organisation/company/brand that
comes to mind as you read the following words:
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1. Bank
2. Airline
3. Singer
4. Politician
5. Computer
6. Watch
7. Department Store
8. Restaurant
9. Hotel
10. Handphone
11. Travel Agent
12. Human Rights
5
Managing Corporate Image
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Truth
Timeliness
Congruence
Deeds of the organisation
Beliefs
Response to criticism
6
Reputation
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Reputation which has recently become a buzz word
is not a new concept.
A number of case studies suggest that reputation is
different from brand.
Reputation exists beyond or in parallel to brand
identity
Reputation includes factors beyond marketing where
brands are usually created and managed
PR and corporate communications significantly
influence reputation
Thus PR and corporate communication should play
an active role in identifying and building reputation
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10 Principles of Reputation
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Reputation is not something new
It is an existing condition
Reputation is perception
Reputation is a collective or cumulative perception
Reputation is formed among many different individuals and
groups
Reputation is dynamic
Reputation is broad but there are only certain parts that
matter
Reputation is whatever the groups that matter decide it is
Reputation is comprised of perceptions based on experience
and rational thinking, while brand is a highly emotional
concept
Reputation cannot be created by advertising or built by
publicity
8
Benefits of a Good Reputation
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Command premium prices for products
and services
Recruit better caliber staff
Attract greater loyalty from internal and
external stakeholders
Have more stable revenues
Face fewer risks of crisis
Gain greater support fro their
constituents
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Achieving Credibility
1.
2.
3.
4.
5.
6.
An Organisation’s Credibility starts with the
following :
Openness and Honesty
Incorporation of PR perspectives in policy
making
Two way communication with both internal and
external publics
Coordination of what is done with what is said
Consistent actions
Social responsibility
10
Corporate Identity
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Visual elements which help create the
desired impact on the audience. They
should be:
Outstanding
Consistent
Continuous
In good taste
11
Corporate Identity
Usually comprised of there elements as follows:
1.
A logo – symbol or logotype characterising
and identifying the company of organisation
2.
One or more chosen colours
3.
A particular type face
Note: It is important that identity is
consistent. A consistent identity helps create
identification and projects a professional
image
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International Cultural Challenges
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Some names and symbols can translate
into something nonsensical or offensive
Colours and numbers can also pose
problems in some cultures
Research is essential to avoid problems
Cultural and language familiarity is
helpful
Consult local organisations and
individuals
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Ethical Considerations
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Leaving aside moral values important to us
that we would like to see upheld in an ideal
world, good ethics is simply good business
Public relations provides a link between
ethical business behaviour and increasing the
chances of achieving corporate objectives
Companies with good records on ethics and
social responsibility are likely to enjoy better
public relations than less ethical competitors
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Defining Ethics
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A value system for making decisions about
what is right or wrong
The conduct of individuals and organisations
is measured not only against their own
consciences but also in relation to societal
and professional norms
Different people, organisations and cultures
frequently have different standards and
conflicting values
Ethical behaviour implies a higher standard
than merely obeying the law - the law is a
“floor”
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Why Does Ethics Matter
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Good public relations creates a climate
of acceptance for organisations - a key
source of competitive advantage
Unethical companies may appear to
succeed in the short-run, but frequently
find poor public relations is the longterm penalty for their approach
16
Business Ethics
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Recent events (e.g. Enron, WorldCom,) have put the
spotlight on business ethics and corporate
governance
– Corporate governance refers to the system by which
organisations are directed and controlled
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Many companies now have in-house codes of ethics
or codes of conduct
Triple bottom line reporting (3Ps) is becoming
commonplace
– People (social performance) and Planet (environmental
performance) as well as Profits (the traditional bottom line)
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Companies like Shell and McDonald’s have issued
Statements of Business Principles and Social
Responsibility reports
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Topics Addressed in Corporate Code
of Ethics
1.
2.
3.
4.
5.
6.
7.
8.
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10.
11.
12.
Company philosophy and commitment to ethical conduct
Observance of laws and regulations
Conflict of interest
Bribes and kickbacks
Accuracy of books and records
Gifts, gratuities and entertainment
Proper use of corporate assets
Relations with competitors
Gathering competitor information
Protecting company confidential information
Insider information
Political contributions and activities
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Topics Addressed in Corporate Code
of Ethics (Cont)
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Truth in advertising
Customer relations
Product quality
Product safety
Employee relations
Equal employment opportunity
Worker safety
Use of agents and consultants
Relations with suppliers
Relations with the community
Environmental protection
Relations with government representatives
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Why Ethical Dilemmas are
Especially Common in PR
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PR frequently deals with highly controversial
and sensitive issues
PR deals with relationships on interpersonal,
organisational and societal levels
Often, there are conflicts between the needs
and expectations of diverse publics
– E.g., employees, customers, shareholders, local
communities, pressure groups, government etc
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Why Ethical Dilemmas are
Especially Common in PR (Cont)
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PR professionals must act as advocates of
external and internal publics whilst also
representing the interests of their
organisations
Ethical choices are rarely black and white
Often the “right” decision involves choosing
the lesser of several evils
A good rule of thumb:
– Would you feel comfortable if your decision/course of action
was outlined in a front-page newspaper story tomorrow?
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PR can also be accused of:
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Spinning the facts
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Distortion and lying
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Deceiving the public
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Telling half truths
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Creating hype
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Major Positives of Socially
Responsible Public Relations
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Public relations improves professional
practice by codifying and enforcing ethical
conduct and standards of performance
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Public relations improves the conduct of
organisations by stressing the need for
public approval
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Public relations serves the public interest
by making all points of view articulate in the
public forum.
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Major Positives of Socially
Responsible Public Relations (Cont)
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Public relations serves out segmented,
scattered society by using communication and
mediation to replace misinformation with
information, discord with rapport
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Public relations fulfills it’s social responsibility
to promote human welfare by helping social
systems adapt to changing needs and
environments
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Principles of Ethical Public
Relations
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Honest communication for credibility
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Openness and consistency of actions
for confidence
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Fairness of actions for reciprocity and
goodwill
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Continuous two way communication
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Environmental research and evaluation
25
Corporate Social Responsibility
Closely related to the ethical conduct of an organization
is its social responsibility. Social responsibility touches
practically every level of organizational activity.
1.
2.
3.
4.
5.
6.
7.
A list of social responsibility categories include the
following:
Product lines
Marketing practices
Corporate philanthropy
Environmental activities
External relations
Employment diversity
Employee safety and health
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How CSR is viewed by stakeholders
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An essential part of good corporate
governance
As a measure to evaluate corporate
performance
A non-financial indicator of a company’s
performance
Perceived as being less risky than those that
only release financial information
An indication of a company that practices fair
trade and is environmentally aware
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