Functions of Public Relations Paper:
Public Relations also known as PR can be defined as:
The management of a companies or institutions reputation achieved with positive exposure
through various media. It is intended to influence public opinion in their favour, gaining
understanding, credibility and building goodwill.
The functions of Public Relations (PR) can be grouped into two categories: organizational and
societal. Many functions fall into both the organizational and societal categories and are not
limited to one type. Both types of functions can be applied in order to utilise public relations
effectively. Organizational functions are those which benefit the company from within, whilst
Societal functions are those which benefit the company externally.
This paper will proceed to compare and contrast two organzational and societal functions of PR:
Organizational functions:
Communications Management:
‘Communications management is the systematic planning, implementing, monitoring, and
revision of all the channels of communication within an organization, and between
organizations’ [1] Wikipedia, communications management, retreived November 2007.
Communications management is seen as an organizational function because it is prepared within
the company. Therefore it is an internal function. It is a crucial function to delivering the correct
message to every employee, investor, and third-party receiver, at the correct time.
Communications should be clear and concise in order to deliver the message effectively, and
ensure that each individual audience has the same comprehension and interpretation of the
message.
Investor Relations:
‘Investor relations (IR) is a set of activities which relate to the ways in which a company
discloses information required for regulatory compliance and good investment judgement to
bond and/or shareholders and the wider financial markets.’ [2] Accelerize New Media Inc,
retrieved November 2007.
Investor relations is an organizational function because it does not directly communicate
information with the customers, its sole aim is to maintain and develop the relationships that it
has with investors, which are internal considerations. Therefore it is an internal function.
Investors are people who have a financial stake in the company, whose money often allows for
expansion of a product or expansion in to new markets. Providing clear and accurate information
to investors is a crucial procedure for companies, as investors may base their future transactions
with the company, or withdraw their existing support, based upon the information the company
provides. By dealing with investor inquiries and providing information in a timely manner, the
company can keep the investors continued interest in the company, and breeds with it confidence
and trust.
Communications management ties in to Investor relations, as the communications that are
formed and communicated within the company are the ones which get communicated externally
in the long run.
Societal Functions:
Social Responsibility:
‘Corporate social responsibility is a concept with a growing currency … around the globe
…While CSR does not have a universal definition, many see it as the private sector’s way of
integrating the economic, social, and environmental imperatives of their activities. As such, CSR
closely resembles the business pursuit of sustainable development and the triple bottom line’ [3]
Industry Canada, retrieved November, 2007.
Social responsibility is a societal function because it is directly communicating with and
influencing the consumers, and the market of a product or service offered by that company.
Therefore it is an external function. Social Responsibility occurs when the company acts, not
only in the best interests of itself, but also in the best interests of society. Corporate social
responsibility (CSR) can provide an excellent opportunity for a company to use public relations
to its full advantage and provide a positive image of the company to consumers and investors.
Examples of social responsibility include the increased reduction of pollutants a company
produces, switching raw materials to those from a sustainable source, donating to charities,
offering scholarships and improving the community in which its based. Each of these will gain
public support from different sectors of society, and can be used to deflect negative images of the
company and help to combat crisis caused by negative publicity. This is likely to reduce the
effects of the negative publicity on the business as a whole. Socially responsible companies can
have several benefits, consumers switch to their products because they are environmentally
sustainable, supported by the community (occasionally local governments), and the development
of loyal customers who share the same ethics.
Marketing communications:
‘Marketing communications (or marcom) are messages and related media used to communicate
with a market.’ [4] Wikipedia, Marketing communications, retrieved November 2007.
Marketing communications is a societal function because it is directly advertising the company
and its products to the consumer. Therefore it is an external function. Marketing communications
uses a variety of media to convey the product and service a company offers to the public, as well
as informing them about the organization itself. It creates promotions, brochures, literature, and
displays for the consumer. Marketing communications is often used to inform the public of a
new product or service, and can also include information about the companies Social
Responsibility to make the products more attractive to a specific market. The intention of
marketing communications is to make customers aware of the products or services offered,
quality presentations can also encourage trust, social responsibilities and promotions can be
advertised to encourage loyalty, thus persuading consumers to part with their money for the
particular product or service which is being marketed.
Similarities and differences between Organizational and Societal functions of public
relations:
Organizational functions differ from societal functions as it deals with internal public relations
relating to the investors, staff and company. Societal functions deal with external public
relations, conveying messages to the market and the consumer.
Both organizational and societal functions of public relations have the same goal, which is to
influence the public opinion, and those of investors, in the companies favour, gaining
understanding, credibility and building goodwill. The ultimate goal of course, being the increase
of turn over and profit for the organization and sustainability in the market place where it
operates.
In conclusion, public relations involves using all of the functions of both organizational and
societal functions. The importance of each is not on whether they are allocated to a specific
category function, but to whether the are delivering the right message, to the right recipient, at
the right time. Each function must be completed carefully to ensure that an oversight on one does
not affect the others. This is very likely as many of the functions of public relations intergrate
with each other and can serve both organizational and societal taks. It is important for each
function to be applied correctly in order for other functions to have the overall desired impact.
Sources cited:
[1] http://en.wikipedia.org/wiki/Communication_management
[2] http://www.accelerizenewmedia.com/IRModules.aspx
[3] http://strategis.ic.gc.ca/epic/site/csr-rse.nsf/en/Home
[4] http://en.wikipedia.org/wiki/Marketing_communications