Chapter 1

CORPORATE PUBLIC RELATIONS
PRO526
CHAPTER 1
THE CHANGING ENVIRONMENT
INTRODUCTION
 The public’s expectations of corporations today are

also different from what they were 40 or 50 years
ago.
 Companies need to be progressive leaders about a

host of global issues
 Public scrutiny of business is constant and intense,

publics including employees are more aware of their
rights to information
ATTITUDE TOWARDS AMERICAN BUSINESS
 The Industrial Revolution moved American industry away from a

model of small workshops and hand tools to mechanized mass
production in factories
 Most Americans wanted the lifestyle of these business magnates and

came to see the pursuit of wealth as part of the “American dream.”
 1920s - great disparities in wealth distribution.
 This created disparities – between rich and middle class, between

agriculture and industry –
 Caused unstable economic conditions

 The stock market “bubble” finally burst in
1929, giving way to the Great Depression
 Does business strike a fair balance
between profit and the public interest?
 1968, 70 % of population answered - YES
 1976, poll dropped to 15 % when Jimmy
Carter took office
 In spring of 2000, the markets came
crashing down
 Nasdaq sunk to less than half its peak
level of 5000
 TV news and media played a major role in
conveying, filtering, and obstructing
messages from corporations / gov /
activists groups
 Internet also began to shape attitudes

towards business
 They had the ability to get messages out

instantaneously
HOLLYWOOD:
A window on Main Street & Wall Street
 Throughout history, literature and the arts have both

affected and reflected perceptions about institutions
 In the United States, cinema and television over the past

several decades reflected some of the public’s negative
attitudes about business
 In a continuous research, Businesspeople are portrayed

negatively in almost two-thirds of all television
programmes and/or were involved in criminal activities
The Global Village
 Canadian philosopher Marshall McLuhan foresaw- “a

global village when technology strengthened
communication channels around the globe
 In his book, The Mind of the CEO, Jeffrey Garten

explains, “As the world gets smaller, CEOs will be
unable to escape involvement in some of the difficult
political, economic and social problems of our times.
There will be no way to avoid operating in countries with
fragile economies, weak democratic structures and
mega-cities with severely overburdened infrastructures
 Disintegrating national borders, coupled with the
liberalization of trade and finance in today’s global
village, have also fostered an increase in cross-border
corporate mergers and the number of multinational
corporations.
 Continual technological advances have made it difficult

for companies to prevent both positive and negative
news about them from reaching individuals in virtually all
corners of the world.
 Media outlets have expanded their reach such events

are no longer confined to local communities; rather they
can create reverberations (sound) that are felt worldwide
 Business leader today must therefore be
prepared no only to handle the
international media spotlight but also to
proactively counter the advocacy groups
looking to use today’s media environment
to compromise their corporate reputation-
the bottom line-globally.
How to Compete in a Changing Environment
 Even well-respected companies face attacks in this anti-

business environment
 How can managers adapt to the challenges of a business
environment ??
1. Recognize The Changing Environment

2. Adapt to the Environment without Compromising
Principles
3. Don’t Assume Problems Will Magically Disappear
4. Keep Corporate Communication Connected to
Strategy
Successful companies connect
communication with strategies through
structure, such as having the head
of corporate communication report
directly to the CEO.
As a result, all the company’s
communications will be more strategic
and focused.
PRO541
CHAPTER 2
COMMUNICATING STRATEGICALLY
COMMUNICATION THEORY
 Most theories associated with communication are based

on notions that can be traced back thousands of years
 Aristotle defines the composition of every speech:
 Every speech is composed of three parts:
 the speaker,
 the subject of which he treats,
 the person to whom it is addressed.
 No matter what the need of an organization to communicate to its
publics, it is critical that they use a coherent communication strategy
 This strategy depends on thinking carefully about the same three parts
that Aristotle used to describe the components of speech.
(1) organization
(2) the constituency
(3) messages
 Communication framework is circular rather than linear
DEVELOPING CORPORATE
COMMUNICATION STRATEGIES
Three subsets of an
organization strategy include:
1. Determining the objectives for

particular communication,
2. Deciding what resources are
available for achieving those
objectives
3. Diagnosing the organization’s
reputation.
1. Determining the objectives for particular
communication
 many different reasons for deciding to communicate

 basis for defining an objective: What does the organization want
each constituency to do as a result of the communication
 managerial communications is only successful if you get the
desired response from your audience.
 To get that response, you have to think strategically about your
communication, including setting measurable objectives.
2. Deciding What Resources Are Available
 Determining how to communicate about something depends

heavily on what resources are available within the organization
including:
 money
 human resources
 Time
 Technology
3. Diagnosing the organization’s reputation
 determine what kind of image credibility they have with the
constituencies in question
 Image credibility is based on the constituency’s perception of
the organization rather the reality of the organization itself
 Worse than limited image credibility is credibility that is
lacking or damaged (time/effort taken to react to an issue)
ANALYZING CONSTITUENCIES
 similar to analyzing your audience. Done to determine:

 who your organization’s constituencies are
 what each thinks about the organization, and
 what each knows about the communication in question
1. Who are your organization’s
constituencies?
 Sometimes obvious, sometimes need careful
consideration
 Usually, constituencies come from a group
that is primary to the organization, but a
secondary group can also be the focus for a
particular communication
 There are different sets of constituencies
depending on the nature, size, and reach of
their business
 An organization’s primary constituency/cies
can change over time (secondary becomes
primary in times of crisis -media)
 constituencies interact with one another -
reach one to reach another
 Constituencies can have competing interests
and different perceptions of a company as
well
2. What each thinks about the
organization?
 organizations also need to assess
what each constituency thinks
about the organization itself.
 Example of good corporate
communication is Johnson&
Johnson’s redemption of the
Tylenol brand in 1982 (chap 10,
pg 257).
 When goodwill or trust are
lacking, communication can be a
struggle.
3. What each knows about the communication in
question
 consider their attitudes toward the communication itself
 If they are understands what your organization wants, then they are
more likely to help the organization reach its objective
 consumers are often wary of new or unknown products (In Japan –
wagashi, a candy trying to make it into America)
 Companies that try to sell an idea to the public are always in danger
of failing as a result of the lack of information or negative feelings
consumers may have from previous experiences and entrenched
perceptions or stereotypes
DELIVERING MESSAGES
APPROPRIATELY
 Involves a two-step analysis
for companies. A company
must decide:
1. How it wants to deliver the

message (choose a
communication channel)
2. What approach to take in
structuring the message
itself.
1. How it wants to deliver the
message
 Choose a communication
channel (see Table 2.2 on page
41)
 Write, speak, fax, email, voice
mail, electronic meetings,
video conferencing etc)
 Variety of ways even in the
simplest example
2. What approach to take in
structuring the message itself.
 two most effective message structures are
direct and indirect
 Direct - revealing your main point first,
then explaining why
 Indirect structure - explaining why first,
then revealing your main point.
 Normally, better to be direct because
indirect causes confusion
 Third option in terms of message
structure is to simply have no message -
“saying no comment” - nowadays doesn’t
work because publics demand
information
CONTITUENCY RESPONSES
After communicating with a constituency,
you must assess the results of your
communication and determine whether the
communication had the desired result.
For example, did sales rise in response to an
advertising campaign?
After determining the results, you
determine how you will react. Have your
reputation changed? Do you need to change
your communication channel?
Hence, the circular nature of the Corporate
Communication Framework. (See pg. 44,
Figure 2.2)
 Read case study on Carson’s Container Company on page
46 & 47
 Further discuss case study’s questions on i-learn
CHAPTER 4
IDENTITY, IMAGE,
REPUTATION & CORPORATE
ADVERTISING

PRO541
Introduction
 examine the first and most critical part of that

function: a corporation’s identity and image
 address how a close alignment between a company’s
identity and image generates strong reputation
 effort is relatively easy to understand at the personal
level, but significantly more difficult at the
organizational level.
 One reason for this complexity is that many potential
identity options exist.
What are Identity and Image?
 Identity is the visual manifestation of the company’s reality
 conveyed through - name, logo, motto, products, and all other

tangible pieces of evidence created by the organization and
communicated to a variety of constituencies
 Image is a reflection of an organization’s identity. it is the

organization as seen from the viewpoint of its constituencies
 depending on which constituency is involved, an organization

can have many different images
What are Identity and Image? (cont…)
 this collection of tangible and intangible things, that provides

the organization with a starting point for creating an identity
 conducting research with constituents to get better sense of
image.
 should be both qualitative and quantitative in nature and
should try to determine how consistent the identity is across
constituencies
 image can vary among constituencies, but identity needs to
be consistent
Differentiating Organizations Through Identity & Image
 industry is facing global competition and companies are trying to

manage with limited resources
 organization’s identity and image might be the only difference to

distinguish one company from another
 As products become much the same all over the world, consumers
are increasingly making distinctions based on notions other than
the product itself, thereby making image and identity even more
powerful differentiators
Differentiating Organizations Through Identity & Image
 Most central to corporate identity is the vision that encompasses

the company’s core values, philosophies, standards, and goals
 Corporate vision is a common thread that all employees, and

ideally all other constituencies as well, can relate to
 Thinking about this vision in terms of a narrative or story of sorts

can help ensure the overall coherence and continuity of a
company’s vision and the collective messages it sends
constituencies
 External constituencies rely on information we provide them

Shaping Identity
 A vision that Inspires

 Vision encompasses of the company’s core values, philosophies, standard and
goals.
 It is a COMMON thread that all employees and ideally all other stakeholders
can relate and repeat to others
 Seeing this vision in terms of a NARRATIVE or STORY of sorts help ensure
overall COHERENCE (consistency) and continuity of a company's vision and
the collective message it sends to constituencies
 External constituencies rely on article in publications, TV ads, discussion about
company with other people and direct interaction with company’s employees for
info about a company and the story it is telling
 Story of unsung heroes and an underdog can relate quite well in shaping – Steve
Jobs for Apple, Mark Zuckerburg for Facebook, Jan Koum cofounder of
Whatsapp
 http://www.forbes.com/sites/parmyolson/2014/02/19/exclusive-inside-story-how-jan-koum-built-
whatsapp-into-facebooks-new-19-billion-baby/
Shaping Identity
 Corporate Brands
 A company’s value can be significantly influenced by the
success of its corporate branding strategy
 Coca Cola – has a valuation that far exceeds its total
tangible assets because of its strong brand name
 http://www.youtube.com/watch?v=JKIAOZZritk
 Branding and strategic brand management are critical
components of identity management programs
 Subsets of corporate branding: NAMES and LOGOS
 Companies often institute name changes either to signal identity
changes or to make their identities better reflect their realities
 Examples:
 Esso/Mobil to Petron > more vibrant look and signifies its
business in fuel
 Dijaya Corp Berhad to Tropicana Corp Berhad > to easily
associate its projects with the company and also it would
complement the branding exercise of the projects
 while organizations can differentiate themselves based on identity
thro names and logos, they also can risk losing whatever identity
they have built up very quickly thro changes in the use of names and
logos that are not communicated properly
 http://www.businessinsider.com/rebranding-failures-2010-3?IR=T
&op=1
 http://www.youtube.com/watch?v=XGg1q3aNKy8
 Logos are another important component of corporate identity-
perhaps even more important than names because of their visual
nature (which can allow them to communicate even more about a
company than its name) and their increasing prevalence across
many types of media.
 Logos can be simply symbols, or they can be symbols that
represent names (Nike’ swoosh)
 Logos can be stylized depictions of
names or parts of names- McDonald’s
 Or stylized names with added mottos
or symbols (Coca Cola)
CocaCola Logo Evolution
SHELL Logo Evolution
Apple Logo Evolution
Putting It All Together: Consistency Is Key
 An organization’s vision should manifest itself

consistently across all its identity elements, from
logos and mottos to employee behaviors
 FedEx a good example (text book page 82)
 Rather than use Federal Express, they pronounce it as
“FedEx” like other constituency does
Branding Consistency - FedEX
Branding Consistency - Virgin
Evolutions of Slogans
https://www.bestmarketingdegrees.org/evolution-slogans/
Identity Management in Action
Method successfully used by many organizations to manage the

identity process
1) Conduct an Identity Audit

2) Set Identity Objectives
3) Develop Designs and Names
4) Develop prototypes
5) Launch and Communicate
6) Implement the Program
1) Conduct an Identity Audit

 an organization needs to assess the current reality
 To avoid superficial input and objectively respond to these questions -
conduct in-depth interviews
 review company literature, advertising, stationery, products and
services, and facilities
 research perceptions among the most important constituencies
 The idea is to be thorough, to uncover relationships and inconsistencies,
and then use the audit as a basis for potential identity changes
 should look for red flags
 Looks easy but actually difficult because the vision that top executives
have of what the company will be is so different from what the reality
currently is.
2) Set Identity Objectives

 clear goals is essential to the identity process
 must explain how each constituency should react to specific

identity proposal
 Important- emphasis should be placed on constituency response
before company’s action
 organization as a whole must be motivated to change/ willing to
accept the truth about itself, even if it hurts
 change for the sake of change, or change to meet some kind of
standardization worldwide is not the kind of objective that is likely
to meet with success
 positive example of clear objectives leading to necessary change is
KFC’s desire to change its image and menu in the mid-1990s as a
result of changes in American dietary habits
3) Develop Designs and Names

 next phase is the actual design or name change if necessary
 Need help of consultants to see if name is available
 Ensure that logos continue to reflect accurately the company’s
reality
 has to be a balance between the professional opinions of a designer
and a manager’s own instinct. Both need to be a part of the final

decision whether a name change or just a new logo is involved
Brand Architecture
Systems
4) Develop prototypes
 develop models using the new symbols or names
 At times criticism mounts from employees who are not involved in
decision making process

 Also negative reactions from constituencies could cause proposals
to be abandoned and work started all over again

 A company should not accept an identity that is simply the lowest
common denominator. Two ways to deal with the task are to let a
strong leader champion the new design or to set up a strong
committee to work on the program.
5) Launch and Communicate
 Given the time and the number of people included in the process,
news about future changes can easily be leaked to the public.
 Sometimes such publicity is a positive event, as it can create
excitement and a sense of anticipation.
 To build drama into the announcement, public relations staff
should be creative in inviting reporters without giving away the
purpose
 Can use teasers to teas crows..
http://www.youtube.com/watch?v=ZXmiwHYeTyg
6) Implement the Program

 final stage - can take years in large companies and a minimum of
several months for small firms

 Some will be resistant to changes / sense of ownership is
sometimes strong towards old identity

 best approach to ensure consistency across all uses for a new
identity program is to develop identity standards manual

 standards manual shows staff and managers how to use the new
identity consistently and correctly

 Implementing an identity program is a communication process
involving lots of interpersonal savvy and a coordinated approach

to dealing with many constituencies
Image: In the Eye of the Beholder
 An organization’s image is a function of how constituencies

perceive the organization based upon all the messages it send out
through names and logos, and through self-presentations,
including expressions of its corporate vision
 Often perceptions are made before they begin interacting with
organization. Made based on what they read/been told about/visual
symbols they recognize
 After interacting – may have a different perception
 the goal is to have that image be better, not worse
 Often, a company’s image with a given constituency is driven not
only by its own unique corporate identity, but also by the image of
the industry or group it belongs to
Building a Solid Reputation
 foundation of a solid reputation exists when an organization’s identity

and its image are aligned
 Charles Fombrun, New York University professor and author of the
book Reputation, says that “in companies where reputation is valued,
managers take great pains to build, sustain, and defend that reputation
by following practices that
(1) shape a unique identity and
(2) project a coherent and consistent set images to the public.
 Reputation differs from image because it is built up over time, not
simply a perception at a given point in time.
 It differs from identity because it is product of both internal and
external constituencies, whereas identity is constructed by internal
constituencies
Reputation Framework
Corporate Identity
Names, Brands, Symbols, Self-presentations
is perceived by…
Customer Image Community Image Investor Image Employee Image
The sum of their

perception equals…
Corporate Reputation
 The importance of reputation is evidenced by several prominent surveys

and rankings that seek to identify the best and the worst among them:
Fortune Most Admired list.
 Such highly publicized rankings have gained so much attention that some
corporate PR executives’ bonuses have actually been based on the
Fortune’s list of America Most Admired list.
 In response to this demand many public relations firms and consultancies
now offer reputation measurement and management services to their
corporate clients.
 A strong reputation has important strategic implications for a firm, because,
as Fombrun notes, “it calls attention to a company’s attractive features and
widens the options available to its managers, for instance, whether to
charge higher or lower prices for products and services or to implement
innovative programs.
 As a result, the intangible entity of reputation is undoubtedly a source of
competitive advantage. Companies with strong, positive reputations can
attract and retain the best talent, as well as loyal customers and business
partners, all which contribute positively to growth and commercial success.
Measuring and Managing Reputation

 organization must examine the perception of all its constituencies
 Employees can be a good starting point, as they need to understand
the company’s vision and values and conduct themselves in every

customer interaction with those in mind
 Customers perception of an organization must also be aligned with
organization’s identity, vision, and values

Corporate Philanthropy and Social Responsibility

 consider corporate philanthropy and social responsibility when
thinking about its own reputation
 However corporate philanthropy is not without its
dangers/threats
 efforts to publicly “do good” can be perceived as self-serving
 Alternatively, when companies are too silent about what they
are doing for the community or the environment, they face
criticism for being apathetic or greedy
 How can companies reconcile the public’s desire for them to do good things
for the community and the environment with their equally strong skepticism
about corporate motives?
Corporate Philanthropy and Social Responsibility
1)Corporate philanthropy and social responsibility programs should be

consistent with a company’s vision to be perceived as credible, rather than
simply “check-the-box” activities or attempts to burnish a tarnished image.
2)The means by which a company demonstrates its caring for the community
should be carefully considered, using the communication framework
 Must understand each of its constituencies/structure the right kinds of

programs and choose the right channels
 Must know how to tie such programs into its corporate vision

Then they will be able to create programs that will enhance its reputation
CORPORATE ADVERTISING
Basically
shares the
idea,
philosophies
behind the
product
 Paid corporate advertising is the easiest and fastest way to
communicate an organization’s image
 Good, strategic corporate advertising acts as an umbrella that

covers any products associated with that company. Because of
this strong association, any corporate advertising campaign
should be:
1. Strategic: looking toward the future of the company so that it

will have longevity and won’t become stagnant or “old new.”
2. Consistent: with images of products or other divisions of the

company. Image advertising cannot be viewed as some
separate corporate message, rather, it should fit with company
philosophy
WHAT IS CORPORATE ADVERTISING
 defined as: paid use of media that seeks to benefit the image of
the corporation rather than just its products or services
 Both product and corporate advertising should reflect a unified
strategy
 Marketing department responsible for all product-related
advertising and pays for it while Corp comm is responsible for
Corporate advertising and budget may come from CEO’s office
 Corporate advertising should present a clear identity for the
organization based on a careful assessment of its overall
communication strategy
 Falls into 3 broad categories: Image advertising, Financial
Advertising and Issue Advertising
IMAGE ADVERTISING
– Advertising to reinforce Identity or enhance reputation

 Used to strengthen identities following structural changes
 Merge: need to explain new vision, organization and strategy for
constituencies to better understand them
 When companies analyze their image with constituencies, they
can apply the findings to the corporate advertising (CA) strategy
 For example, if organization’s identity differs from what is
perceived externally, then CA can be used to close the gap.
 CA can be an efficient mechanism for changing impressions
about organizations if changes have really taken place
 Effective image advertising also allows companies to
differentiate themselves from rivals
What Is Corporate Advertising
Financial Advertising – Advertising to attract investment
► To stimulate interest in a company’s stock among potential
investors as well as buy-side and sell-side analysts
► In a survey done result showed that strength of
management was the no 1 factor that influences decisions
to invest in a company
► Analysts place a high value on CEOs who express a
coherent vision for their organization. Hence, CEOs are
often featured in corporate advertisement targeted to
financial community
► Some say that strong financially oriented corporate
advertising campaign can actually increase the price of a
company’s stock
► See Kellogg Study on page 91
Issue Advertising – Advertising to Influence Opinions
► Sometimes called advocacy advertising
► used by companies to respond to external threats from
either government or special-interest groups
► usually argumentative, deals with controversial subjects,
and is directed at either specific or general targets and
opponents who challenge the status quo
► By taking issues directly to the consumer, companies could
compete with primarily print journalists for a share of the
reader’s mind
► Most companies are much more conservative than their
adversaries, which means that their arguments almost
always fall short of the mark
Issue Advertising – Advertising to Influence Opinions
► It is extremely difficult for a large corporation that seeks to
have positive relations with a variety of constituencies to
take on a tough issue in the market-place of ideas without
offending someone
► Therefore, unless the company has been terribly wronged
by an adversary who has received lots of media attention,
it should proceed into the world of issue advertising with
extreme caution, mindful of the dangers that await despite
its ability to put much greater resources into the argument
than can their adversary
► top management must have the courage to argue forcefully
for its ideas and must not be afraid to alienate certain
constituencies in the process.
Who uses Corporate Advertising (CA) and Why?
► over half of the largest industrial and nonindustrial
companies in the United States have CA programs of one
sort or another
► the bigger the company is, the more likely it is to have a
CA program
► larger companies tend to be more diversified and thus have
a greater need to establish a coherent image out of
disparate activities
► the more problematic the industry, the more likely we are
to find CA widely used (Cigarette/Oil etc)
► Overall, heavy industries spend more on CA than
consumer-packaged-goods firms (use product advertising)
Reasons companies invest in CA:
1. Increase Sales
► Not clear, because CA is meant to do things that
eventually boost sales, unlikely immediately
► creates a problem for managers trying to introduce
corporate advertising into companies that have a heavy
financial orientation
► Through CA, companies can draw out features about
themselves that they think will appeal to the public and
as a result, make consumers want to buy products from
them
► Example :Tiffany combined CS and Product advertising
refer to ad on page 97
2. Create a strong reputation
► The best CA creates goodwill and enhances reputation by
letting constituencies in on what the organization is all
about, particularly if it does beneficial things that people
might no be aware of
► See Example on Amoco Chemical Company on pg 98
► Companies also look to build credibility and enhance
reputation by using endorsements from third-party
organization (research companies that help create
rankings/awards)
► many companies use CA today to trumpet their
philanthropic activities
2. Create a strong reputation (cont…)
► Organizations using CA to enhance reputation must be
prepared for their opponents to respond negatively to
what they may perceive as the company’s attempt to
smooth over a history of corporate wrongdoing or to
apply a “quick fix” to a serious image problem
► Important then, when using CA to enhance reputation
that it is credible.
► CA risks not being perceived as credible if for instance it
ties closely to corporate vision BUT that vision has not
been properly communicated to the organizations’
constituencies through other channels as well
3. Recruit and Retain Employees
► One of the most critical communication activities for any
company is communicating with employees
► If a CA campaign succeeds in explaining in simple terms
what a large, complex organization is all about, it would
be helpful to employees as well as the outside world
► CA is also an indirect way to building morale among
employees
► CA also helps companies attract the best and the
brightest both at the entry level and for senior positions
► A good CA campaign can create excitement among both
potential and current employee
► See example on GE on page 100
PRO541
CHAPTER 5
CORPORATE SOCIAL RESPONSIBILITY
INTRODUCTION
Corporate Social Responsibility (CSR):
is an increasingly significant contributor to corporate reputation
it is a corporation’s social & environmental obligations to its constituencies & greater society
is being used more frequently by constituencies to analyze and critique corporate behavior
Beginning 1970s corporations became more environmental aware after catastrophes such as chemical leak,
oil spill etc.
Corporations nowadays are geared into CSR and are in many ways adapting their own business models to
be more responsible and sustainable
Global executives now view CSR as critical in business strategy and operations
What is Corporate Responsibility?
Constitutes and organization’s respect for society’s interest, demonstrated by taking ownership of
effect its activities have on key constituencies in all parts of its operations.
It prompts corporation to look beyond its traditional bottom line at the social implications of its business
It extends beyond the baseline compliance with existing regulations to encompass voluntary and
proactive efforts to improve the quality of life for employees & their families, local communities and
society at large
A responsible company makes a concerted attempt to reduce the negative social and environmental footprint
of its operations through a thoughtfully developed strategy implemented over the long run, not temporary,
band-aid measures such as monetary contributions to charitable causes (NOT CR, more of philanthropy
efforts) – ExxonMobil Vs Starbucks
In shaping CR strategy a corporation ideally acknowledges and integrates the full spectrum of constituencies’
“extra-financial” concerns – Social, environmental, governance, and others, into its strategy and operations.
Developing an authentic CR strategy signals a corporations intent to look beyond short term financial returns
& focus on long term success & sustainability
A CR strategy should not be reactive but should proactively identify the social consequences of a
company’s entire value chain, to pinpoint potential problems and opportunities whenever business and
society intersects
Companies that do not make an effort to carve out their own CR niche will be left trailing the competition
Corporations are looking out for their best interest when they take care of society’s best interest
Business do not exist in vacuum – they inevitably intersect with society & are mutually dependent for their
survival
Even in the most stable countries, companies need the community’s approval to function
Business now operates in an environment in which long-term societal concerns have been raised to the
same level of public expectations as accounting practices and financial performances
In today’s world of heightened awareness of climate change, human rights & scarcer resources, how well a
company treats its stakeholders and the greater world contributes greatly to trustworthiness
Trust can take a significant toll on the bottom line

The widespread on Internet access – with an estimated 1.4 Billion people online as of March 2008, has
redefined the notion of transparency for corporations
It serves as a powerful forum to convene and grow new citizen groups devoted to social and political
issues
Granted unprecedented access to corporate operations & practices, individuals now has the power to
spread the once proprietary information, to millions of people- scrutinizing every issue possible
Upside / Advantages of CR?
Many CEOs today describe acting responsibly as pragmatic – it makes good business sense
A well executed CR strategy can translate into an array of benefits, including attracting and retaining
customers, identifying and managing reputational risks, attracting the best quality employees and reducing
costs (recycling/less plastic etc)
The scale and nature of CR benefits for an organization can vary depending on the business and are often
difficult to quantify, though increased efforts are being made to link CR initiatives directly to financial
performance
1. Reputation Risk management
It is the central part of any corporate communication strategy
Reputation built over 20 years can be destroyed within minutes
Issues such as corruption/scandal/environment accidents can devastate a carefully built corporate

reputation in days
Events can also draw UNWANTED attention from regulators, courts, governments and media
Building a GENUINE culture of “doing the right thing” within a corporation – which is the foundation of any
genuine CR strategy – can help offset these risks
2. Brand Differentiation
In crowded marketplaces, companies strive for a unique selling proposition to separate themselves from
the competition in consumers’ minds
CR can help build customer’s loyalty based on distinctive ethical values (e.g. Body Shop)
It is important to stay ahead of issues and evolving with ever-changing constituency concerns.
Sustainability is indeed a major concern in constituencies’ minds nowadays

3. Talent attraction and retention
CR program can aid in employee attraction and retention
CR helps improve the image of a company among its employees, particularly when they are
personally involved in activities such as fundraising, community service or help in shaping the
company’s CR strategy itself
CR can help strengthen goodwill and trust among present an d future employees, that will in turn
reduce turnovers, cost and greater work productivity
4. License to Operate
Corporations wants to avoid interference in their business through taxation and regulations
By taking substantive voluntary steps, they may be able to persuade government and the wider society
that they are taking current issues seriously and thus avoid intervention
Costs today may reduce future liabilities, which in turn will have a positive impact on the cost of capital
Acting BEFORE regulations force them to, can position corporations as well-respected leaders in
responsibility and sustainability
Downside / Disadvantages of CR?
CR Critics (downside of CR)
Have been said as being detracting from corporations’ commercial purpose and effectiveness,
thereby inhabiting free markets
Some claim CR is a little more than a PR strategy to showcase to others to create an inaccurate
image of a socially or environmentally responsible company
Some say it is an effort undertaken in an effort to distract the public from the ethical question posed
by their core operation
REGARDLESS, constituencies are calling for CR with increasingly loud and unforgiving voice.
Hence there are little choice but to answer
CR and Corporate Reputation
Research indicates that its effect is growing, many business executives believes that a recognized commitment
to corporate responsibility contributes to the company’s overall reputation.
Decisions about what to buy and whom to do business are influenced by a company’s reputation for social
responsibility.
Corporate Responsibility has become a critical means to build trust with corporate constituents.
Social Responsibility – more important than the corporate brand or financial performance.
Consumer in emerging markets support brands that are socially and ethically responsible.
Companies should be aware that instituting and publicizing CR activities in an effort to boost reputation can
backfire.
Companies with poor perceived product quality can actually be hurt by publicizing their CR efforts.
Companies should follow these three steps;
1. Don’t hide market motives (consumers understand a need for profit)

2. Serve stakeholders’ true needs
3. Test the company progress
A significant gap exists between executives recognizing the importance of CR and companies taking action
to implement a thoughtful and effective CR strategy.
Companies should integrate environmental, social and governance issues into their strategies and
operations.
Key for Corporate Constituencies
EMPLOYEES
3
INVESTORS 2 4 NGOs
CUSTOMERS 1 5 ENVIRONMENTALISTS
1. Consumer Values and Expectations: Taking Values on their own Hand
Consumers possess the power to determine the fates of corporations.
Consumers are willing to use this individual empowerment to act on their values – to pay more for the
sake of corporate responsibility.
For example, organic food – viewed by many as better for health, for the health of farm workers, and for
environment. The U.S sales of organic food and beverages have grown from $US 1 billion in 1990 to
$US 39.1 billion in 2014.
Consumers also have been willing to punish corporations for their lack of corporate responsibility.
35% of all Americans have avoided a product because they perceived a company as not socially
environmentally responsible.
Not only corporations must be aware of the changing values and behavior of consumers, they also
must remember that expectations of corporate responsibility are far from homogeneous across the
globe, differing to sometimes large degree across countries, regions and hemisphere.
2. Investor Pressures: The Growth of Socially Responsible Investing
Executives are merely agents of investors – the individuals who own the corporation
Investors today are demonstrating an increased interest in socially responsible companies, rewarding them by
using CR more frequently as part of their criteria to invest.
A company’s record of social responsibility is the influential factor in making a decision to purchase stock or
invest in a company.
Due to this, 10 to 20 % of money professionally managed in the U.S today can categorized as socially
responsible investing (SRI), including social or environmental goals and an investment strategy that employs
screening, divesting or shareholder activism.
Active socially responsible investment is on the rise.
China – announced its $US 200 billion sovereign wealth fund’s intentions to seek profits in socially responsible
companies by avoiding investments in industries such as gambling, tobacco and arms manufacturing.
United States - assets that are considered to be socially responsible investments have been growing at a
faster rate and in 2012, an estimated $US 3.74 trillion was a part of socially responsible investment.
Corporate responsibility and sustainability could serve as proxies for good management.
3. Responsibility Inside and Out: Employee Involvement in CR
Employees play as an brand ambassadors for a corporation.
Employees are the primary spokespeople for a corporation – responsible for much word-of-mouth information and
impressions formed.
Making employees central to the CR strategy can boost employee goodwill and morale, decrease turnover, and
increase operational efficiencies by encouraging employees to identify opportunities for sustainability and cost-savings.
Company cannot meet its sustainability or reputation goals without a smart strategy that incorporates employees.
A company can be socially responsible, must prioritize salary and wage increases for employees over making
charitable contributions.
Corporate responsibility, in the mind of consumers, starts with the employees first.
The future corporate leaders are searching for responsible practices in corporate to as their pick a place to start their
careers
Top business school around the world are offering a great number of corporate responsibility, value-based
leadership and sustainable enterprise course and programs, addressing business students’ desire not
just to work hard but to do good at the same time.
3. Responsibility Inside and Out: Employee Involvement in CR
Building a Values-Based Culture

A clear and prominent set of values or code of ethics instilled in employees should ideally serve as a navigational
compass for everyday work activities.
A strong values-based culture can make;

1. the employees less likely to engage in legal or ethical breaches, and
2. it also can contribute to an organization’s competitive edge,
3. increasing employee pride, loyalty and willingness to go the extra mile for the sake of the corporation’s
mission.
The steps that can be taken by a corporation in building a values-based cultures;

1. Ensuring that employees are striking a healthy balance in their lives in another important piece of building an
ethical culture.
2. Investing in employees to foster a sense of mutual accountability and encouraging the free airing of issues
without fear of reprimand or retaliation.
3. Provides employees with resources- such as ethics training to prepare them for dilemmas
4. Strategic Engagement: The Continued Influence of NGOs
NGOs are more likely to be trusted to do what is right compared to large companies – because they are seen as
being motivated by morals rather than just a profit.
NGOs are the moral compass and ethical watchdogs against the forces of government and capitalism
NGOs possess several characteristics that enable them to catch public attention and approval;
1. NGO communications are often sophisticated and controversial – most likely to receive media attention
2. Smaller size and agility of NGOs enable them to act faster than more bureaucratic corporations
The use of Internet and its communication tools such as Twitter and Facebook – strengthened and
lengthened the reach of NGO communications.
NGO enabling local organizations to voice their messages to a global audience and pose an even greater
threat to corporate reputations.
NGOs have the power to wreak havoc with eye-catching, direct and powerful communication campaigns.
Corporations must identify opportunities to collaborate with NGOs and establish relationship.
A company’s corporate communication team should be actively involved in crafting the NGO
and overall CR communication strategy – to ensure consistency across all messages shared
with internal and external constituents.
5. Being Green: The Corporation’s Responsibility to the Environment
Constituents are rewarding companies that are environmentally responsible, doing their bit to preserve the
planet
Global consumers expect corporations to take action to preserve and sustain the environment.
“Ten years ago, companies would say “I need digital strategy”, now it’s “I need green strategy”.
Environmentally responsible behavior can attract consumers and it can offer enormous cost savings for
companies.
Global consumers indicated that they would support increased government regulation to protect the
environment, even if it would mean a negative impact on corporate profits.
Companies that act as environmental leaders can seize an opportunity to differentiate their brands from
other corporations that claiming corporate responsibility.
In 2007, Coca-Cola announced its investment of $US 20 million over five years to
improve global water conservation, partnering with the World Wildlife Fund to
preserve seven of the world’s major river.
Adidas and the Environmental Protection
Adidas is educating both consumers and its own ambassadors on its mission towards a more
sustainable supply chain, largely influenced by its partnership with Parley for the Oceans.
Adidas is using creativity and collaboration to create awareness on sustainability.

Adidas and the Environmental Protection
 In 2017, European Giant Clubs, Real Madrid and Bayern Munich wear
a special one-off kits made from plastic found in the ocean.
 The kits designed by Adidas in collaboration with Parley for the

oceans, to help raise awareness for the importance of protecting the
seas from around the world against pollution
Communicating about Corporate Responsibility
CR strategies are lacking if they do not include a clear communications component
Corporate communicators must be actively engaged in CR messaging to ensure consistency and

integration.
The key considerations that a corporations should keep in mind when building and communication in CR
strategy including;
1. Creating an Ongoing Dialogue

2. The Dangers of Empty Boasting
3. The Transparency Imperative
4. CR reporting
1. Creating an Ongoing Dialogue
A primary way to monitor constituency expectations is by fostering an ongoing and active dialogue with
consumers, shareholders, and the general public about the social and environmental role companies
should play.
A lack of dialogue can lead to lack of awareness of external opinions on issues of corporate
responsibility.
2. The Dangers of Empty Boasting
“Greenwashing” is a popular term used to describe the act of misleading consumers regarding the
environmental practices of a company or the environmental benefits of a product or service.
Constituents continue to be skeptical about companies’ motivations and the realities behind CR
claims.
In the environment of watchfulness and skepticism, corporations need to work hard to bridge the
divide between rhetoric and reality.
Some companies are participation in Corporate responsibility for superficial reasons.

3. The Transparency Imperative
Pressure is mounting for companies to reveal proactively both the good and bad elements of their
operations
Transparency – tracking the negative impact of a products on the environment (from design to delivery)
Such self-critical transparency can help build trust with constituencies.
Every company must follow the following advice;

1. Don’t sugarcoat your story
2. Be real
3. Be detailed
Positioning one-self as fallible and determined to do better can go a long way in winning the
hearts of story - seeking journalist and skeptical consumers who are now armed with
unprecedented insights into companies’ business practices via the internet.
4. CR Reporting
What makes a CR report effective?
1. It should appeal to the full range of a corporation constituencies, providing both quantitative and
qualitative evidence of CR efforts.
2. Include the disclosure of the bad content (without burying truths in dense report), creative and engaging
delivery of facts.
3. The engagement of employees and other constituencies in the creation of the reports.
4. Creative formatting – such as storytelling through video, can also be effective way for organizations to
humanize their CR reporting
5. External verification statement from a neutral third party can increase a CR report’s
credibility.
 McDonalds CSR Report
CONCLUSION It Starts on the Inside
01 Each employee is encouraged to make voluntary changes in their life to
make a positive individual contribution to the environment
Collaborate with Friends and Foe

02 Keep your friends close and your enemies even closer.
Present the Bad with the Good

03 Being transparent means being clear in CR communication and not
clouding realities with vague or verbose pose
Stay One Step Ahead of Antagonists

04 Corporations should keep a finger on the pulse of influencers, critics
and all constituents to gauge existing opinions and spot potential
trouble brewing well in advance of CR crisis erupting
Match Rhetoric with Action

05 Companies should be more careful to never express complacency in
their efforts to be responsible.
A big mistake is to send the message that the company believes it has
done all it can do.
 GSC  7 Eleven
Case Study
 Starbucks’ CSR initiatives
http://www.whywhisper.co/the-blog/2015/9/24/corporate-social-responsibility-how-starbucks-is-making-an-i
mpact
 Nike Embraced CSR

https://www.triplepundit.com/story/2015/how-nike-embraced-csr-and-went-villain-hero/57726
 16 Brands Doing Corporate Social Responsibility Successfully

https://digitalmarketinginstitute.com/blog/corporate-16-brands-doing-corporate-social-responsibility-succes
sfully
 The Best 10 CSR Campaigns Of The Last Years

https://brandminds.ro/the-best-10-csr-campaigns-of-the-last-years/
Videos
 Coca-Cola
https://www.youtube.com/watch?v=Ae34Glvh8IY
 Nestle
https://www.youtube.com/watch?v=LAeZw752VDA
 Apple
https://www.youtube.com/watch?v=YOw6kLgucY4
Thank you
End of Slides
PRO541
CHAPTER 6
MEDIA RELATIONS
INTRODUCTION
• Media Relations is ONE OF THE MOST CRITICAL
AREAS within any corporate communication
function
• The media is both a CONSTITUENCY and a

CONDUIT through which investors, suppliers,
retailers, and consumers receive information
about and develop images of a company
• The media’s role as DISSEMINATOR OF

INFORMATION to a firm’s key constituencies has
gained increasing importance over the year.
• The news media are omnipresent in our society.
 Mainstream newspapers (first printed weekly in 1605)
 TV (started in 1940s)
 Internet (started in 1990s)
• The MEDIA HAVE HELPED SHAPE ATTITUDES ON ISSUES that
are diverse
• A free press also MAKES POLITICIANS ACCOUNTABLE for
their actions both in public and private life (spotlight)
• While most of us feel strongly about the rights of a free press
(not so free in M’sia), to say or print whatever it likes, as long
as it is not malicious. But Business has always had a more
AGGRESSIVE RELATIONSHIP WITH THE PRESS
• The privacy corporations enjoyed in the early
part of this century made the relationship
between business and media strained.
• UNACCUSTOMED TO DEALING WITH THE
NEWS MEDIA, MOST COMPANIES SIMPLY
ACTED AS IF THEY DIDN’T MATTER.
• Later in the 20th century, companies were
forced to rethink this isolationist approach due
to a number of developments, including LAWS
GOVERNING THE DISCLOSURE OF CERTAIN
INFORMATION OF PUBLIC COMPANIES AT
REGULAR INTERVALS.
• These last two events in particular-increased
public and media interest-had a profound
effect on business and its dealings with the
media. What is certain is that sometime in
1970s, business coverage started to change.
Since then, the private sector has become
much more public
• This shift in attitude happened because of the public’s realization
that business had a tremendous effect on their lives
• People began to see companies as controlling important parts of
their lives but not having to answer to anyone in the way that
government did to voters.
• Special interest groups emerged to deal with this problem and to
make business more accountable.
• Business leaders, on the other hand, were used to the privacy they
had maintained for decades and were reluctant to admit that times
had changed.
• This kind of attitude is increasingly risky, and less common, however,
as each industry has found itself the subject of some level of scrutiny
from the public and the media, and many companies have learned
the hard way that to have poor or nonexistent relationships with the
media in these situations will only make them worse.
COVERAGE IN MEDIA
• Before the 1970s, business news was downgraded to a few pages
toward the back of the newspaper (consisting mostly of stock
quotation) and to a handful of business magazines, it received
virtually no coverage at all in national and local TV news broadcasts
• As public attitudes changed, however, the business news section in
newspaper gained recognition and began to expand.
• As coverage of business increased, however, the media industry was
consolidating . By 2012 only 6 corporations owned and operated
90% of US “mass media”. In Malaysia by 2017 we see only 2 media
giants and a handful of independent media operators.
• Most executives today recognize that the media is typically not going
to get very excited about the good things that companies do.
Instead, the worse the news is about a company or its CEO, the
more likely it is to become a major news story that will capture the
media (and the public’s) attention
• To build better relationships with
members of the media,
BUILDING BETTER organizations must take the time to
RELATIONS WITH cultivate relationships with the
RIGHT PEOPLE in the media
THE MEDIA • companies should be sure to AVOID
“STANDARD PRACTICE”
• OLD-STYLE PUBLIC RELATIONS
experts rely on a system of
communication with the media that
no longer works - SEND OUT PRESS
RELEASES TO A MASS AUDIENCE
and hope that someone will pick up
the story and write about it
• WHY IS THIS SYSTEM NO LONGER
VALID?
• The vast majority of press releases go
unread by reporters due to both the
massive quantities of releases these
reporters receive daily and the time
constraints under which reporters
work
• While they can be very effective, PRESS RELEASES
ARE OVERUSED by public relations executives
because they are relatively easy to write-even
PRESS RELEASE formulaic (standard) in terms of composition-and
they can be widely distributed to certain
segments of the media
• Part of the problem is that the measure in the
media relations business has for years been the
amount of “ink” (or coverage) that a company
gets
• Yet no one has ever stopped to figure out what
value a “hit” in a relatively unimportant
publication has in terms of a firm’s overall
communication strategy
• Getting lots of articles written about a company,
may not have any value if it does not help the
company achieve the communication objective.
• Advise: USE PRESS RELEASE SPARINGLY
• What works best is to find out who the
right journalists are for a given story
and then to develop a tailored game
plan for connecting with them.
A) CONDUCTING RESEARCH FOR TARGETING
MEDIA
BUILDING BETTER
A typical media research operation
RELATIONS WITH • senior managers working with the members of the
THE MEDIA corporate communication department determine
what objectives they have for a certain story
• the company would begin to search for the right
place to pitch the story. The corporate
communications professionals would look in their
files to find out who covers their industry and the
company specifically
• easy for most companies - same reporters typically
cover the same beat for a period of time and have
established relationships with the company
• If records are maintained properly, you can
determine at a glance which reporters will most
likely cover the story and more importantly, who
will be likely to write a “balanced story” about this
strategic move
• BUT how do companies determine who is going to
write a positive piece before rather than after
pitching the piece? This is where ongoing research
A) Conducting pays off.
Research for • Each time a journalist covers a firm in the industry,
corp comm professionals need to determine what
Targeting Media ANGLE the reporter has taken
• Don’t pitch the same story again to the same
reporter
• Companies can avoid giving reporters info that
they are not interested in, and communications
need only occur when a company’s media
audience is most likely to be receptive
• most companies can easily access info about
journalists who cover them. Consultants generate
computer analyses of reporters’ articles, ask
industry sources to provide critiques of writers
they know, and even find out personal info about
them .
• Newer technologies allows corporate
communication professionals to access such info
through electronic databases such as Cision’s PR
software or the Bulldog Reporters’ MediaPro
http://www.cision.ca/pr-software/
• In addition to figuring out who is
covering a company’s beat, the firm’s
corporate communications team needs
A) Conducting to determine what kind of a reporter
they are dealing with.
Research for
• An individual tends to write about
Targeting Media things or put together reports in a
particular way. Very few change their
style from one story to the next
• The journalists tends to write or
present stories with a particular point
of view
• Very few reporter change their style
from one story to another
B) Researching and Engaging the “Expanded Press”
• Essential for companies exploring new waters or going into new foreign
market
• Organization must go about identifying INFLUENTIAL MEDIA IN THE
ONLINE SPACE
• These members of media in the online space are know as “EXPANDED
PRESS”. They are much more complicated to deal with. They include:
• Bloggers
• Online communities
• Social media outlets
• Citizen journalists
• They are not governed by formal training, long-establishes standards or
official affiliations. THEY JUST WRITE ONLINE while exercising their free
speech, while others care to offer insightful commentary about issues
and in turn have influence over a larger audience.
• The first step is to UNDERSTAND WHICH BLOGGERS ARE INFLUENTIAL to a
particular company’s stakeholders
• There are strategies for identifying bloggers who influence a specific
audience, and most come in the form of ONLINE MONITORING AND
TRACKING DEVICES
• The list of applications and devices that help executives get a hold and
control this the massive volume of online conversations include:
• Technorati
• Google alerts
• Compete
• Next, corporate comm executives MUST COURT BLOGGERS PROACTIVELY
FOR COVERAGE. Big companies sometimes employ people to solely
monitor and survey the cyberspace
**READ ABOUT HP ON PAGE 156**

• INVESTING IN WEB-BASED COMMUNICATION
PLATFORMS is another way to bring bloggers and online
commentators directly to you
• Example Microsoft built an online newsroom called
the “Press Pass”
• Collect corporate information, news, fast facts,
PR Contact, image galleries, and broadcasts into
one central location for their journalist to use
• Example GE Motors built a social media newsroom to
archive news, aggregate recommended blogs, offer
multimedia downloads and consolidate RSS Feeds
• RESIST THE URGE TO SEND PRESS RELEASE AND PITCHES
TO THE BLOGGERS . Instead Communication exec MUST
LEARN TO LISTEN by REVIEWING a substantial backlogs of
the BLOGGERS POST along with the comment threads
BEFORE REACHING OUT AND PITCHING A STORY. LISTEN
UNTIL YOU UNDERSTAND THE TOME AND NATURE OF
THE CONVERSATION
• Online pitching are much more individually customized and
complicated
• One wrong move you will be blocked by the bloggers
• The PITCH ITSELF MUST BE CONCISE
• Handing products over to bloggers wouldn’t be enough, however if u
INVITE BLOGGERS IN TO GET THEIR IDEA ON A BRAND, you might
succeed.
• GET THEM INVOLVED, GIVE THEM SOMETHING OF VALUE
• OUTCOME: BLOGGERS BECOMES AND BRAND LOYALIST AND TELLS
OTHER PEOPLE
C) RESPONDING TO MEDIA CALLS
BUILDING BETTER • strengthen their relationships with the media
thro the WAY THEY HANDLE REQUESTS FOR
RELATIONS WITH INFORMATION
THE MEDIA • RESPONDING to such requests CAREFULLY
can MAKE A POWERFUL DIFFERENCE in how
the company appears in the story
• Calls should come into a CENTRAL OFFICE
• Calls should be answered by an employees
who UNDERSTAND THE IMPORTANCE OF A
PHONE CALL FROM MEDIA
• Calls should be DIRECTED TO CORP COMM
Department and the person who takes the
call should TRY TO FIND OUT WHAT ANGLE
THE REPORTER IS TAKING ON THE STORY.
• The company needs to FIND OUT WHAT
THEIR APPROACH IS before responding to
their request.
C) RESPONDING TO MEDIA CALLS
• The person responsible SHOULD TRY TO GET
AS MUCH INFO AS POSSIBLE while being
careful not to give in return any info that is
not already public knowledge.
• The TONE OF THE CONVERSATION SHOULD
BE AS FRIENDLY AS POSSIBLE, and the media
relations professional should communicate
honestly about the possibilities of
ARRANGING AN INTERVIEW OR MEETING
OTHER REQUESTS.
• At the same time, he or she should FIND OUT
what kind of DEADLINE the reporter is
working under. They are usually not flexible
• Being aware of deadlines is similarly critical
when proactively pitching a story to AVOID
IRRITATING REPORTERS UNDER DEADLINE
crunches and, by doing so, leaving them with
a NEGATIVE IMPRESSION OF THE COMPANY.
D) PREPARING FOR MEDIA INTERVIEWS
• EXECUTIVE who will be interviewed NEEDS
BUILDING TO BE PREPARED for the actual meeting with
BETTER the reporter
• If the interview is to be conducted by phone,
RELATIONS WITH a media relations professional should PLAN
THE MEDIA TO SIT IN ON THE INTERVIEW
• Executive should be GIVEN A SHORT
BRIEFING on the reporter’s prior work to
better understand them
• He or she should be GIVEN A SET OF
QUESTIONS that the reporter is likely to ask
• If possible, the communications specialist
should ARRANGE A TRIAL RUN with the
executive to go over answers to possible
questions
• FOR TV INTERVIEWS, FULL-DRESS
REHEARSAL is absolutely essential
D) PREPARING FOR MEDIA INTERVIEWS
• In addition to thinking about
WHAT TO SAY, the executive
needs to think about the MOST
INTERESTING APPROACH TO
EXPRESSING THESE
MESSAGES. Using statistics and
anecdotes can help bring ideas
alive in an interview. What is
interesting, however, depends
on the audience.
• Finally, the executive needs to
be PREPARED TO STATE KEY
IDEAS as clearly as possible at
the beginning of the interview.
• ANSWERS to questions need to
be AS SUCCINCT AS POSSIBLE
E) GAUGING SUCCESS
•Measurement is now transformed thanks
BUILDING to the ease with which communication
campaign using digital media platforms
BETTER
•While most communication professionals
RELATIONS WITH still believe that MEDIA PLACEMENTS ARE
THE MEDIA THE STRONGEST INDICATORS OF A
CAMPAIGN SUCCESS, most PR Specialists
agree that KNOWLEDGE AND INSIGHT
ABOUT THOSE PLACEMENTS ARE EQUALLY
IMPORTANT
•Wide variety of ANALYTICAL SERVICES
AND TECHNIQUES have emerged including
other variables like:
• Advertising Value Equivalent (AVEs)
• Canada’s Media Relations Rating Points
System (MRRP)
• Internal reviews
• Benchmarking
• Opinion polling
• Specialist media evaluation tools
E) GAUGING SUCCESS
•Digital campaigns in particular now can be
measured through:
• KLOUT (for measuring levels of online
influence on Facebook, Twitter and
• GOOGLE ANALYTICS
•The AMOUNT OF INK A COMPANY GETS
DOES NOT INDICATE WHETHER IT IS
ACHIEVING ITS COMMUNICATION
OBJECTIVES. Organizations must keeps
records of all of its hits, looking at not only
where the ink has landed but also HOW
WELL THE COMPANY’S KEY MESSAGES ARE
COMMUNICATED
•Info can be useful for IMPROVING THE
COMPANY’S MEDIA RELATIONS within the
company, but measurement results also
allows companies TO BENCHMARK ITS
RESULTS AGAINST THOSE OF ITS
COMPETITORS.
•The media tracking may IGNITE CHANGES
AND IMPROVEMENTS IN MEDIA
RELATIONS DEPARTMENT.
E) GAUGING SUCCESS
Media monitoring discussed before has
the power to:
•Identify which communication
ACTIVITIES CREATE THE MOST VALUE in
terms of specific business outcomes
•EVALUATE how well an organization’s
various COMMUNICATIONS FUNCTIONS
PERFORM AGAINST AN INDUSTRY
AVERAGE
•DEMONSTRATE THE TOTAL VALUE
created by Corp Comm department in
terms of one or more business outcomes
•DRIVE STRATEGIC AND TACTICAL
DECISION MAKING in the communication
functions, hedging reputational risks, and
managing major events such as mergers
and top management changes
•HIGHLIGHT ACTUAL CORPORATE VALUE
CREATED BY COMMUNICATIONS
ACTIVITIES
BUILDING
BETTER
RELATIONS WITH
THE MEDIA
F) MAINTAINING ONGOING RELATIONSHIP

• By far the most critical component in media relations is developing and
maintaining a network of contacts with the media.
• Building and maintaining close relationships is a PREREQUISITE FOR
GENERATING COVERAGE.
• A company CANNOT SIMPLY TURN THE RELATIONSHIP ON AND OFF
when a crisis strikes or when it has something it would like to
communicate to the public.
F) MAINTAINING ONGOING RELATIONSHIP
BUILDING •Instead, firms need to WORK TO DEVELOP LONG-TERM

RELATIONSHIPS WITH THE RIGHT JOURNALISTS for their
BETTER specific industry. This usually means MEETING WITH
RELATIONS REPORTERS JUST TO BUILD GOODWILL AND CREDIBILITY
WITH THE •INVITE FOR TOURS IN FACTORIES/HEADQUARTERS,
LUNCH OR BREAKFAST ETC
MEDIA •Media relations professionals should EXPECT TO BE
REBUFFED FROM TIME TO TIME. They may get turned
down for lunch several times by reporters who are
particularly busy, only to find them very receptive to a
long telephone conversation
WHAT DOES IT TAKE TO CREATE A SUCCESSFUL MEDIA
RELATIONS PROGRAMME?
BUILDING A SUCCESSFUL MEDIA RELATIONS PROGRAMME
1) MUST BE WILLING TO DEVOTE RESOURCES TO THE EFFORT.

This does not necessarily have to mean huge outlays of money; an
executive’s time can just as valuable.
2) Involve Media Relations Personnel in Strategy
• companies need to INVOLVE someone,
preferably the MOST SENIOR CORPORATE
COMMUNICATION EXECUTIVE, in the
DECISION-MAKING PROCESS. Once a
decision has been made, it is much more
difficult to talk management out of it because
of potential problems with communications.
• Having these individuals involved will at least
ALLOW EVERYONE TO BE FAMILIAR WITH
THE PROS AND CONS OF EACH SITUATION
AND DECISION.
• Communication professionals who are
involved in the decision-making process ALSO
FEEL MORE OWNERSHIP FOR THE IDEAS
THAT THEY NEED TO PRESENT TO THE
MEDIA.
3) DEVELOP IN-HOUSE CAPABILITIES

• While using consultants and public relations firms
may be beneficial in some cases, by far the best
approach for the long term is to develop an in-house
media relations staff.
• One problem for many companies, however, is that
they do not consider media relations to be
important enough to hire professional staff in this
area.
• COMPANIES MUST RECOGNIZE THAT BUILDING
RELATIONS WITH THE MEDIA IS A SKILL AND THAT
INDIVIDUALS WITH CERTAIN PERSONALITIES AND
BACKGROUNDS ARE BETTER SUITED TO THE TASK
THAN OTHERS.
• Companies should also not make the mistake of
assuming that a former reporter will be the best
person for the job
4) USE OUTSIDE COUNSEL SPARINGLY

• Use as minimum as possible
• Companies should hire outside counsel for advice or info to
help out with a major story, or when a crisis hits.
• Another important use for outside firms is to help with the
DISTRIBUTION OF PRESS RELEASES AND TO CREATE VIDEO
NEWS RELEASES
• They will be able to put together what looks like a real story
DEVELOPING AN ONLINE MEDIA STRATEGY
• Wireless communication and the internet has
given power in the hands of individuals
• Internet has big implications for businesses
• Companies’ media strategies need to be amplified
with tactics dealing with new dimensions of
coverage
• Example: CREATE ONLINE FORUM (FOR
CONSTITUENCIES TO SHARE OPINIONS/
CONCERNS/ COMPLAINTS) & MONITOR BLOGS
• Integrate media campaigns that tie together
strong online and offline channels to create
visibility and brand awareness
• Internet has become a valuable tool that enables
companies to get press releases out quickly and
broadly
• HOWEVER, IT SPREADS BOTH LEGITIMATE AND
FAKE CLAIMS
DEVELOPING AN • As the internet is increasingly used a
tool to communicate company news to
ONLINE MEDIA various constituencies, MORE CARE
STRATEGY WILL HAVE TO BE TAKEN THAT
SOURCES ARE TRUSTED AND RELIABLE
• Paying more attention to the web,

realizing that bad publicity online can
legitimately threaten their bottom line
SOCIALIZE YOUR MEDIA RELATIONS
STRATEGIES
DEVELOPING AN •PUBLIC IS OFTEN MORE TRUSTING OF
ONLINE MEDIA OTHER CONSUMER THAN IT IS ON
STRATEGY TRADITIONAL INSTITUTIONS
•72% of the world’s internet users have
social media presence.
•Other consumers include you and I.
•US PRESIDENTIAL ELECTION FOR
EXAMPLE AND MORE RECENTLY AND
CLOSE TO US, PRU14
•FACEBOOK, TWITTER, INSTRAGRAM,
LINKEDIN, BLOGS, VLOGS AND everything
else under the sun
• Internet on the other hand also offers opportunities
• Companies can have extraordinary access to information
about customers’ needs and complaints
• By monitoring CHATS AND BLOGS, COMPANIES CAN LEARN
ABOUT CURRENT NEEDS AND ATTITUDES and can then
TAILOR ACTIONS TO MEET THOSE THAT ARE MOST VITAL
TO THE COMPANY’S REPUTATION AND BOTTOM LINE
• By using internet proactively, companies CAN GAUGE THE
EMOTIONS OF CONSTITUENCIES, ALLOWING THEM TO
RESPOND EFFECTIVELY AND HELP THEM STAY ON TOP OF
TODAY’S INFORMATION SURGE
• Blogs are an important tool for CORPORATION TO TRACK
CONSUMER POINT OF VIEWS AND CONCERNS
• Some guidelines on blogs:
• Take blogs seriously – bookmark relevant blogs and read
regularly
• Act fast – do it fast and quick
• Don’t dismiss requests for interviews and information from
bloggers – some might be established journalists
HANDLE NEGATIVE NEWS EFFECTIVELY
• When negative news are detected communication department
SHOULD QUICKLY ASSESS THE POTENTIAL DAMAGE that the news
might cause.
• Who is the person who has issued the complaint?
• Are the comments valid?
• Is the person speaking only as an individual, or does she or he
represent a broader constituency, such as investors or
employees?
• If a broader constituency, how widespread are the complaints.
• If a ROGUE WEBSITE has been constructed, HOW MANY HITS per
day has it received, and HOW HAVE PEOPLE GENERALLY
RESPONDED TO THE NEGATIVE MESSAGE?
• If an UNFLATTERING NEWSPAPER ARTICLE has been printed, HOW
WIDE IS THE PAPER’S CIRCULATION?
HANDLE NEGATIVE NEWS EFFECTIVELY
Once these questions are answered, a company’s task force or
permanent crisis communication team-including members of
senior management-must brainstorm some potential actions.
Company lawyers should be consulted to discuss what legal
stance the company might need to take
PRO541
CHAPTER 7
MANAGING EMPLOYEE AND

INTERNAL COMMUNICATION
Introduction
For years, managers have focused on “customer care.”
More recently, they have begun to dedicate the same kind of
attention to their own employees, recognizing that
employees have more to do with the success of a
business than virtually any other constituency.
A study by consulting firm Watson Wyatt found that
companies with the highest levels of effective
communication experienced a higher level of total return
to shareholders within 4 years of business, compared to
firms who communicated least effectively
Bottom line – employee communication is no longer a “soft”
function but rather a business function that drives
performance and contributes to company’s financial
success.
1.0 Internal Communication and the Changing Environment
The environment for business has changed dramatically over the last half
century.
Today’s employee is a different person in terms of values and needs than
his or her counterpart in earlier decades
Most of today’s employees are well educated, have higher expectations of
what they will get out of their careers than their parents did, and want
to understand more about the companies they work for.
The workplace today is also different - tighter staffing, longer hours,
greater workloads, and more emphasis on performance are the norm
Internal Communication and the Changing Environment
In recent years, the increased outsourcing of jobs to foreign countries has
filled many employees with feeling of fear, paranoia and anger.
Employees are functioning with a greater degree of cynicism or distrust of
corporations and their senior managements.
These factors are causing employees to look more critically at how senior
management is communicating with them/what is being
communicated and whether or not they feel engaged in and aligned
with the company’s direction.
The increasingly complex and highly competitive nature of today’s
business environment puts greater pressure on employees and also
calls for a more concerted effort in the area of internal
communications.
The environment for business has become
increasingly complex and highly competitive
Employees increasingly demands participation in
the conversation that are driving
organizational change
This participation is vital to keeping employees at
all levels of organization, regardless of job role
or responsibility
Communication must be two-way process
Part of the problem at many companies is that
senior managers simply do not involve
lower-level employees in most decisions.
This tends to make these employees feel
alienated and unwilling to accept changes
within the company
Managers need to recognize that, if they provide info to employees and

also listen to them, those employees will be excited about their
work, connected to the company’s vision and in position to
further the goals of the organization.
2.0 Organizing the Internal Communication Effort
The best way to assess the effectiveness of a

company’s internal communication efforts is by
determining what employees’ attitudes are about
the firm.
This can be done through a communication audit.
Based on audit results, communication
professionals can design the right program for the
organization.
E.g. both Starbucks Coffee Co. and Kinko’s Inc. hired
outside consultants to conduct internal
communication audits so as to identify
strengths and weaknesses in those companies’
existing communication practices
Questionnaires / in-person interviews and focus groups
via video conferencing are some of the methods
used
Organizing the Internal Communication Effort
Once management knows how

employees feel about the
communications they are receiving
internally and whether they
understand its messages, it can
implement an internal
communication infrastructure to
meet those needs.
If an infrastructure is already in
place, it can be adjusted or
enhanced as necessary based on
the audit result
2.1 Goals for Effective Internal Communication
The key goals for effective internal communications, in order of importance:
1. To improve morale and foster goodwill between employees and management.

2. To inform employees about internal changes such as reorganization or staff
promotions.
3. To explain compensation and benefit plans such as new health care plan or
Employee Assistance Program (EAP)
4. To increase employee understanding of the company and its products,
organization, ethics, and external environment.
5. To change employee behavior toward becoming more productive, quality
oriented, and entrepreneurial.
6. To increase employee understanding of major health and social issues or
trends affecting them, such as child care or AIDS.
7. To encourage employee participation in community activities.
8. In addition to these specific goals, an overarching aim of internal
communication is the creation of an atmosphere in which employees know that
they are important assets to the firm
2.2 Where Should Internal Communications Report?
 In the past internal communication reported to human
resource
 80 percent of corporations in the United States place the
responsibility for internal communication in the corporate
communication area.
 Similar to Malaysia business where most internal
communication is placed in the corporate communication
area while the administration on these employees still lies
within the HR Function
 Often, however, both areas
have some involvement with

internal communication.
3.0 Implementing an Effective Internal
Communication Program
 Once goals for an internal
communication program are
established and decisions made
about where the function should
report, the program is ready for
implementation.
 In smaller organizations, internal
communication may be part of
everyone’s job since the ideal
method of communicating with
employees is one-to-one or in
meetings with small groups of
employees.
3.1 Communicate Up and Down
 Many large companies are perceived as being faceless,
unfeeling organizations, an impression that is only
reinforced when no upward communication exists from
employees to management.
 When high-level managers isolate themselves physically
and psychologically from other employees, effective
communication cannot happen.
 Effective internal communications can generate a
dialogue throughout the company, fostering a sense of
participation that can make even the largest companies
feel smaller in the hearts and minds of employees
 The best approach to communicating with employees is
thro informal discussions between employees and
supervisors
3.1 Communicate Up and Down
 The best approach to communicating with employees is
thro informal discussions between employees and
supervisors.
 Employees need to feel secure enough in their positions to
ask questions and offer advice without fear of reprisals
from top management.
 Respecting employees as well as listening and interacting
with them form the basis for an effective internal
communication program
3.2 Make Time for Face-to-Face Meetings
 One means of ensuring that employees have
access to senior management is to hold regular,
in-person meetings with fairly large groups of
employees.
 Such meeting should take place frequently (at
least quarterly) and should be used as
opportunities for management to share company
results and progress on key initiatives.
 Most importantly, such meetings should provide
employees with an opportunity to ask questions of
management in an open forum.
 Topics for these types of gatherings should be
limited: than trying to tackle everything that is
going on at the company, managers should
survey employees beforehand to find out what is
most important to them
Make Time for Face-to-Face Meetings
 Certainly large-scale events are an effective means to reach out to
the greatest number of employees at one time, but managers
should not overlook the importance of also meeting with employees
in smaller groups.
 If they are seeking feedback or opinions about key initiatives,
managers may find that employees are more forthcoming when not
in a large group setting.
 Smaller groups are also more conducive to resolving specific
problems
3.3 Communicate Online
 Intranet provided a new channel through which companies could reach their employees
quickly and broadly with important news on events and key management’s initiative
 intranets also serve as interactive platforms where employees can share their views on
company programs, which contribute to building trust.
 Internet technology, while extremely powerful, must be used thoughtfully if it is to enhance
communication rather than detract from the impact of management’s messages
 Today, employees are bombarded by information, especially given the ubiquity of e-mail
and voice mail
 In fact, information overload was one of the primary complaints cited in every corporate
employee survey conducted since1997 to date
Communicate Online
 Consequently, companies need to invest a considerable amount of
thought into ensuring their messages are getting through to
employees and that information is easy to find
 Portal technology is being used more frequently to help employees
more readily locate and manage online information.
 A company intranet should be dynamic and engaging, regularly
refreshed.
 Managers however, should resist the impulse to move all
communication online unless sure that all employees will use this
medium
 An effective internal communication strategy must focus on both
content and channel, recognizing that use of multiple channels
 While online communication channels are often expedient and
engaging, they should not be used as a substitute for personal
face-to-face communication between all levels of management and
employees
3.4 Create Employee-Oriented Publications
 the most common form of info sharing in
many companies is thro the print medium.
 Unfortunately, most internal company
publications are unexciting
 Companies need to realize that their
publications are competing with the
national and local media for their
employees’ attention
 Ideally, the publication should connect
employees with going-on beyond their local
surroundings; discuss important
happenings and accomplishments, across
the company and give employees a clear
sense of the company’s overarching
direction and strategy
Create Employee-Oriented Publications
 Another way to reach employees thro company
publication is to send the magazines to their
homes rather than distributing them at the
workplace.
 Above all, these publications must be honest
about anything that might affect employees.
Nothing will hurt morale more than employees
find out about a major corporate event from a
source other than the corporation itself.
 The message that goes into these periodicals
will vary by industry and company, but
managers must strike the right balance between
what employees are interested in, and what they
really need to hear from top management.
Create Employee-Oriented Publications
 Employees should look forward to the next issue of the company

publication.
 Other print materials are also produced from time to time in
response to important events that directly affect employees e.g.
health or retirement benefits.
 Management can also use memos and letter to communicate to
employees about internal changes, such as management
succession, new group structures, or important deals or contracts.
 These written communications should come out frequently enough
so that employees do not feel that it is unusual, but not so often that
they stop hearing management messages.
3.5 Communicate Visually
 Most large corporations have elaborate television
studios with satellite capabilities staffed by
professionals. Such sophisticated systems are the
best mechanisms for communicating with
employees thro visual channels.
 Managers should not see expenditures on such
communication as wasteful but rather as an
investment in the firm, a way to make each
employee feel more connected
 Does not always have to be high-tech – could be
ubiquitous white boards (placed everywhere)
3.6 Focus on Internal Branding
 Internal branding is also important to building
morale and creating a workplace where
employees are “engaged” with their jobs.
 While communicators do inform employees about
new advertising campaigns, they seldom
recognize the need to “sell” employees on the
same ideas they are trying to sell to the public.
 Internal branding is especially critical when an
organization is undergoing changes such as
mergers or a change in leadership.
Focus on Internal Branding
 Internal branding campaigns can also be launched
when results of internal audits reveal that
employees are not connecting with a company’s
vision or when morale is low.
 Just as external branding campaigns aim to create
emotional ties among consumers to your
company, internal branding’s goal is to do the
same with employees.
 Focusing attention on this important area will
generate improved morale and, ultimately, better
results for the company.
3.7 Consider the Company Grapevine
 The company grapevine-an informal
communication network including everything from
private conversations between two employees to
the latest anecdotes heard in the cafeteria-should
be considered as much of a communication
vehicle as a company’s house organ or employee
meetings.
 In fact, given that an estimated 70 percent of all
organizational communication occurs at the
grapevine level, distributing messages faster and
in more credible form than formal channels, it is
even more crucial that manager tap into it.
Consider the Company Grapevine
 Yet, statistics reveal that over 90 percent of
companies do not have a policy for dealing with
grapevine or for managing any other informal
communication network.
 In one study, 89 percent of managers conceded
that the grapevine transmits negative info
indicative of a lack of trust concerning other
employees, supervisors or organizational
policies.
 The stronger the sense of trust and commitment
between employees and management,
however, the less often employees will resort to
the grapevine as the chief means of expressing
their voice and hearing those of fellow
employees
4.0 Management’s Role in Internal Communication
 Common thread discussed – involvement of CEOs and other
senior leaders in internal communications
 This is critical because these individuals are the “culture
carriers” and visionaries within a company and all
communications related to organizational strategy start with
them
 Physical presence and interaction are an important start.
 Senior managers need to work closely with internal
communication professionals to ensure their messages are
received and most importantly understood by all employees
 To achieve this “micro” level understanding of what strategic
goals and initiative means to individuals, internal
communication professionals should work with front-line
managers to help make messages relevant to the employees
who report directly to them.
CORPORATE PUBLIC RELATIONS PRO541
CHAPTER 8
MANAGING
INVESTOR RELATIONS
1.0 INTRODUCTION
• While explaining financial results and giving guidance on future

earnings are critical investor relations activities, companies today
need to go “beyond the numbers”-as Collins and Porras explain in
their book Built to Last:
“Visionary companies pursue a cluster of objectives, of which making money
is only one-and not necessarily the primary one. Yes, they seek profits, but
they’re equally guided by a core ideology-core values and sense of purpose
beyond just making money. Yet, paradoxically, the visionary companies
make more money than the more purely-driven comparison companies.”
• Investor relations professional therefore need to link
communications to company “vision” as frequently as possible.
Increasingly, the investor relations (IR) function is getting involved in
activities traditionally handled by PR and media relations
professionals and communicating with many of the same
constituencies.
2.0 INVESTOR RELATIONS OVERVIEW
• The National Investor Relations Institute (NIRI) defines investor

relations as:
“A strategic management responsibility that integrates finance, communication,
marketing and securities law compliance to enable the most effective two-way
communication between a company, the financial community and other
constituencies, which ultimately contributes to a company’s securities achieving
fair valuation.”
• The chief financial officer (CFO) of one corporation explained the

task of the IR professional as follows.
“You’re competing for the investment dollar. Your company’s story must appeal to
the investment world more than the next guy’s, or you can’t expect to win the
coveted shelf space for which everyone is fighting.”
INVESTOR RELATIONS OVERVIEW (CONT…)
• IR is both a financial discipline and a corporate communication

function.
• Changes in the business and regulatory environment over the
past decade have affected the way corporations decide how, to
whom, and to what extent they convey financial and operating
results.
• Investors want understandable explanations of financial
performance as well as nonfinancial info about companies.
• E.g. of nonfinancial info include the credibility of management,
the company’s ability to attract top talent, and the quality and
execution of corporate strategy.
INVESTOR RELATIONS OVERVIEW (CONT…)
• A survey by McKinsey & Co. found that three-quarters of

institutional investors from the United States, Europe, Latin
America, and Asia said that board practices are as important as
financial results when considering investing in a company.
• To ensure that a company presents itself clearly and favorably
on all these fronts, then IR professionals must have both
financial acumen and solid communication skills.
• Access to senior management is also necessary so that the IR
function is connected to the company’s vision and strategy.
3.0 A FRAMEWORK FOR MANAGING IR
The Objectives of Investor Relations (IR)

• While the structure of an investor relations program will vary from
one organization to the next based on the size of the company, the
complexity of its businesses and the composition of its shareholder
base, the main goal of any IR program is the same: to position the
company to compete effectively for investors’ capital.
• To achieve this goal, companies need to focus on the following
objectives:
A FRAMEWORK FOR MANAGING IR
The Objectives of Investor Relations (IR)
1. Explain the company’s vision, strategy and potential to

investors and “conduit constituencies” such as analysts and
the media.
• One of the most critical duties of an IR professional is to get messages about company results
and potential future results across as understandably as possible to the investing public.
The Objectives of Investor Relations (IR) (cont…)
2. Ensure the expectations of the company’s stock price are
appropriate for its earnings prospects, the industry outlook,
and the economy.
• IROs need to understand investor concerns and expectations for
their organizations and relay this info to management so that
there is a high-level understanding of what the market
anticipates from the company.
• If management does not see the company being able to meet
market expectations, it needs to work with IR to craft a
communication plan to explain why and to manage expectations
appropriately.
• Conversely, if management feels that the company’s potential is
not reflected in its stock price (that the stock is undervalued) an
IR strategy should be developed to help investors see that
potential and, accordingly, drive the stock to appropriate levels.
The Objectives of Investor Relations (IR) (cont…)

3. Reduce stock price volatility.
• Particularly in a “sell-now-ask-questions later” environment,
having strong IR capabilities is critical to maintaining a stable
stock price and shareholder base.
• This can be accomplished thro the related goal of optimizing
the company’s shareholder structure to include primarily
long-term owners of the stock.
• IROs often have to respond to market news or events that
have the potential to affect stock price negatively in the short
term.
Types of Investors
• A company’s IR strategy should address both retail investors

(individual shareholders) and institutional stock investors (pension
funds, mutual funds, insurance companies, endowment funds, and
banks).
• These constituencies, however, place different demands on the IR
department and require the use of different communication
channels.
• E.g., individual often require substantially less detailed info due to
their relative lack of sophistication but require more holding with
respect to routine matters such as stock split transactions.
• In addition, compared to individuals, institutions provide companies
with access to larger, fairly concentrated pools of capital, affording
them greater efficiencies in message delivery and market impact.
Types of Investors - Institutional Investors
• Institutional investors have larger holdings than individuals and trade more actively,
and thus can have a greater effect on stock price volatility. Their block trading
activities can have a tremendous short-term effect on a company’s stock price
performance, particularly for small- to medium-sized companies.
• IR professionals (or their agencies) can use databases to gather info on institutional
stock holdings, turnover rates, and basic portfolio characteristics to identify
institutions whose portfolio characteristics closely coincide with their company’s
price/earning (P/E) ratio, yield, market capitalization, and industry classification.
• Having identified those institutions whose investing criteria match its characteristics,
the company should develop a plan to interest them investing for including day-to-
day phone contact and one-to-one meetings with analysts.
• More formal gatherings are another way to access large groups of institutional
investors. E.g. CEO often address analyst or brokerage societies, industry conferences
geared toward particular kinds of organizations (such as small cap, high-tech firms).
Types of Investors - Individual Investors
• Like institutions, individual investors are not a monolithic constituency group. They
may own stock directly, or thro mutual funds, company stock.
• They may actively trade securities to generate trading profits on an intraday basis,
apply “buy-and-hold” strategies to save for retirement, or anything in between.
• Compared to institutions, individual investors have smaller account sizes and generate
lower trading volume. In addition, they tend to require different types of info than
institutional investors.
• We talked about blurring lines between a company’s constituency groups. As an

example, individual investors can also be employees of the company whose stock they
are investing in, either thro bonus compensation in the form of company stock, or
options.
• Reaching individuals is more difficult than connecting with institutions, as they are
more numerous and harder to identify.
Types of Investors - Individual Investors
• The channels companies use to communicate with individual investors include direct
mail to affinity groups (e.g. current shareholders, employees, customers, suppliers),
using the brokerage community to promote their stocks with individuals, and
generating visibility thro the media and advertising.
• The recent years, the Internet has also proved to be powerful channel for providing
investors with real-time info about companies.
• A recent Roper Starch Worldwide study revealed that 25 percent of Web users use the
Internet to access corporate info, while 18 percent use it to access info on finance and
investments.
• The Internet is certainly used by institutional investors as well as individuals-portfolio

managers and analysts can now use it to quickly and easily obtain baseline info about a
company’s financials and see up-to-date press releases-but for individuals who do not
also have relationships with company IROs or CFOs, it has provided previously
unparalleled access to company info.
Intermediaries
• Investors often learn about corporations thro sources other than the
company itself. In particular, the media and the analyst community are
key conduits.
• Companies provide info to them thro conference calls highlighting

quarterly achievements, press conferences announcing annual financial
results, and face-to-face meetings to discuss company developments
and strategy.
• Reporters and analysts often present management with probing and

difficult questions and report the company’s responses to the investing
public.
• Accordingly, management should present honest answers and

messages that are consistent with what the organization is
communicating to investors directly
Media
• We learned that the business world is increasingly attracting print, TV, and on-line
media coverage. Business network news hosts regularly discuss earnings
announcements on their programs and often invite equity research analysts to
appear and comment on developments within companies they follow.
• Media coverage of business can have a dramatic effect on a company’s stock price.
• About one in two retail brokers surveyed by Financial Retail Broker - Weber
Shandwick stated that what they read in the media influenced them and their
clients in making investment decisions.
• Certainly, having a strong media relations function that is coordinated with the IR
dept will be beneficial to a firm’s investor relations effort by maximizing access to
media outlets and ensuring consistency in the messages each group is sending to
the media.
• Additionally, for low-visibility companies looking to attract investors, obtaining the

right kind of media coverage can be very critical
Sell-Side Analysts
• IR functions target the financial community thro “buy-side” and “sell-
side” analysts. Buy-side analysts typically work for money management
firms (mutual funds or pension funds, for example) and research
companies for their own institutions’ investment portfolios.
• They sometimes use sell-side research in their analysis, but many

perform proprietary analysis, including company visits and their own
review of company financials.
• Sell-side analysts, however, cover stocks within certain industries and

generate detailed research reports that offer “buy,” “sell,” or “hold”
recommendations. This research is then provided to clients of
investment banks such as Morgan Stanley. Thus, sell-side analysts are
intermediaries between a company and existing and potential investors
Sell-Side Analysts (cont…)
• Sell-side analysts have come under fire recently for continuing to issue
“buy” recommendations on severely underperforming stocks. The
media have raised awareness of the inherent conflicts of interest in the
job of a sell-side analyst working for an investment bank.
• According to Zack Investment Research, between 1985 and 2000,

stocks that attracted coverage by three or more analysts fared 37
percent better over the ensuing six months than stocks that did not
receive the same coverage.
• Analyst reports contain much more than a simple buy or hold

recommendation, however, and despite the recent crisis of confidence
in the objectivity of these ratings, other info about companies
contained in these reports is often used by institutional investors to
help them with their investment decisions.
Rating Agencies
• These agencies analyze companies in much the same way that buy-side
and sell-side analysts do, but with a specific focus on their
creditworthiness.
• The ratings that these agencies assign to a company reflect their

assessment of the company’s ability to meet its debt obligations. This,
in turn, determines the company’s cost of debt capital (the interest
rates at which it borrow).
• When U.S. telecom giant WorldComInc’s debt went under review by S

& P and Moody’s for possible downgrade to junk status, the company’s
stock price plummeted 28 percent in one day in late April of 2002.
4.0 DEVELOPING AN INVESTOR RELATIONS
PROGRAM
1. How (and Where) Does IR Fit into the Organization?
• A company’s IR function can be structured in a number of ways, from

fully in-house to fully outsourced.
• In-house IR teams are typically small: According to NIRI, the average

size of a corporate IR dept is between one and two people.
• At smaller organizations, the CFO might handle IR responsibilities

directly and use an agency to perform some of the more routine
report-writing tasks.
• When companies do turn to agencies for assistance, they can

choose from agencies that specialize in IR work.
DEVELOPING AN INVESTOR RELATIONS
PROGRAM
1. How (and Where) Does IR Fit into the Organization? (cont…)
• Agencies can help with projects and activities across the spectrum of IR, from
report-writing and arranging analysts conferences to higher-end-services such
as bankruptcy and litigation communications, mergers & acquisitions, and
initial public offerings.
• The division of responsibilities between what is done in-house versus what is

handled by the agency depends on several factors, including the size of the
firm and its IR objectives.
• However it is arranged, the individuals responsible for a company’s IR efforts

should have access to senior management, including the CEO and CFO.
• Given the increasing overlap in IR and areas like media relations, in some
organization IR and public relations are linked or part of the same group.
According to a recent survey, PR and marketing depts. Still independently of IR
at over 70 percent of companies.
PROGRAM
2. Using IR to Add Value
• The investor relations function assumes a marketing role with

respect to a company’s stock, which involves much more than
producing and distributing annual and quarterly reports,
responding to shareholder inquiries, and sending info to securities
analysts. IR plays both proactive and reactive roles within an
organization.
• Proactively, IR targets investors to market the company’s shares to

and provide regular informational updates and explanations of
performance to the marketplace.
• Proactive communication can go beyond traditional analyst calls

and include activities such as “field trips” for analysts and
portfolio managers.
PROGRAM
2. Using IR to Add Value (cont…)
• Plant tours and meetings or lunches with key company

executives can provide investors and potential investors with a
true feel for the company and its management.
• IROs also craft communication strategies in response to certain

internal or external events. Internal events such as mergers,
acquisitions, or the sale of a part of the business allow time to
confer with the CEO and CFO, develop a communication
strategy around the event, and script answers to anticipated
questions and concerns.
• External events such as an unanticipated crisis require much

more rapid damage control.
PROGRAM
• Companies with extensive IR resources can conduct research to

identify their most influential shareholders and seek to
understand what motivates them, allowing management to better
predict the effect on share price of various events or
announcements.
• Research on the changing stock prices of large U.S. and European

public companies over a two-year period showed that a
company’s share price is significantly influenced by a maximum of
100 current and potential shareholders.
• By identifying these investors and creating profiles on each of

them that detail how they make decisions and what motivates
them, companies can better perform scenario analysis on the
potential effect on stock price of certain announcements
PROGRAM
• If necessary, management can modify plans to bring them in line
with the desires of key shareholders and minimize negative effects
on the stock price.
• When a crisis hits, or a company undergoes some structural

change that the market reacts negatively, investors have already
lost money, as the stock price usually adjusts downward nearly
instantaneously.
• Shareholders can either join in the selling, or they can continue to

hold the company’s stock hoping that it will recover.
• To ensure that shareholders do not sell, companies must be

prepared with swift, honest communications to investors when
the stock price starts spiraling downward.
PROGRAM
• Management must identify the problem ( or perceived problem),
what caused it, and, importantly, what it is doing to address it.
• In these types of “damage control” situations, channel choice

matters: a Webcast or conference call with the CEO or CFO will
carry much more weight than a press release posted to the
company website.
• Similarly, when a company is not performing as well as it should,

IR professionals should communicate to analysts and investors
what management is doing about the situation.
• Such openess is definitely in the company’s best interests.

5.0 INVESTOR RELATIONS AND THE CHANGING
ENVIRONMENT
 Many companies are creating investor relations areas on their
corporate websites that make stock quotes and charts, news
releases, and company financial statements available to
anyone with Internet access.
 Investors find this kind of instantaneous access to info

reassuring, particularly during periods of market volatility and
uncertainty
 Web-based IR is becoming increasingly prevalent and is

supported by external vendors and agencies that can help a
company create effective sites.
5.0 INVESTOR RELATIONS AND THE CHANGING ENVIRONMENT
(CONT…)
 The Internet enables greater transparency by providing nearly
real-time info about companies to a wide audience, and this
transparency is especially valued in the current business
environment.
 Additionally, as sell-side analysts came under fire for biased

recommendations and conflicts of interest, investors become
more uncertain of where they would turn to for objective info
about the companies whose stock they owned
END
PRO541
CHAPTER 8
GOVERNMENTAL RELATIONS /
PUBLIC AFFAIRS
1) Introduction
 Governmentrelations or public affairs has been a key
component of public relations.
 Lattimore et al (2004, p 302) describes public affairs as
the aspect of public relations that deals with the
political environment of organizations.
 Sometimes it is called governmental relations.
 By maintaining a good relation with the government,
the public relations practitioner will help his/her
organization to monitor, shape and influence the
decision-making process of the government
 Government in this context is defined as
“all the people, officials or agencies that administer, manage or
control the rules and enforcement of regulations of the country,
state or district”.
 Their influence on companies’ survival is so pertinent and,
therefore, corporate organizations must regard government as
one of their primary constituents
 In relation to business, government plays a variety of roles:
 stimulant - referee
 rule maker - engineer
 pursuer of social goals - defender
 provider - customer, and
 controller
 public relations practitioner must always be aware of
whatever impending changes in the government
policies/laws and at the same time, act as a counsel to
the management on what the organization can do to
influence the change.
 This is especially true in view of the strong influence
the Malaysian government have on corporate
organizations.
 The Government does not only enforce, monitor and
regulate but also takes part in shaping the business
industry here
2) Definition
Government relations has been defined by Robert S.
Cole in his book, The Practical Handbook of Public
Relations, as
“Government relations is the art of working with the myriad of legislative and
regulatory bodies that have influence over your organizations. It takes place at the
municipal, country, state, and federal level. And if your organization has any kind
of business abroad or clientele overseas, then it also occurs at the international
level as well.”(1981, p 78)
John Paluszek, president of Ketchum public relations defines public affairs as
addressing public policy:
“Public affairs help an organisation develop and

maintain quality relationship with the various
groups of people (“publics”) who can influence the
future. Public affairs is the public relations practice
that addresses public policy and the publics who
influence such policy.” (Lattimore D., 2004: p 302)
3) HISTORY OF THE GROWTH OF GOV RELATIONS
 1970’s saw the rapid emergence in United States
 provided information to the organization about changes in the
gov that could affect the organization, or they hired a lobbyist
who pushed the organization’s interest in the gov.
 Grunig & Hunt observed that the traditional governmental
relations programme was reactive.
 It waited for the gov to do something and then either adapted
to the gov action or tried to stop it
 Today, organizations especially major corporations have more
proactive programmes that try to shape policy before the
government acts
 to reflect the change, the companies call the programmes
‘public affairs.’
 Most corp. today give top priority to public relations
programmes because of the growing impact the
government legislation and regulation have upon
their companies
 Shel Holtz in his book, Relations on the Net (2002),
agrees that governmental relations is a vital part of
public relations activities in an organization
 He emphasizes that the same principles are involved
when communicating with government.
 It is particularly important that messages sent to
various governmental audiences are consistent with
those that been woven into any communications
strategies targeted at other strategies publics.
4) UNDERSTANDING GOV RELATIONS IN MALAYSIA
 When we are discussing about governmental relations

in Malaysia, we must first understand how the
Malaysian government machinery works here
 In Paul Argenti’s book, Corporate Communication
(2003), he labels government as a secondary
constituent to an organisation. This is true in the United
States where free enterprise is practiced
 However, the scenario in Malaysia is very different
 Here the government plays a vital role in shaping and
influencing the business environment in Malaysia.
 Besides administering and policy-making role, the
Malaysian government actively participate in
business by having a significant stake in major
corporations such as Tenaga, Telekom, PLUS,
Petronas
 These companies are called government-linked
companies (GLCs).
 The government, through its investment arm,
Khazanah Berhad, will decide which companies to
invest in.
 In addition, the Malaysian government regards some
companies as strategic partners in nation building.
 Therefore, these companies are invited to join the Prime
Minister’s entourage when he goes overseas to foster
trade talk with the other countries
 Besides this, the government also implements policies
and regulations which may have a great impact on an
organization or an industry as a whole.
 Take for example, the tobacco industry in Malaysia. The
industry faces numerous restrictions and regulations that
discourage potential smokers from taking on the habit, by
increasing the price of cigarettes to limiting the places
where the smokers can have their puff
5) THE GOALS OF GOVERNMENTAL RELATIONS
 Lesley listed in his Handbook of Public

Relations and Communications (1991) 5
goals in governmental relations/public
affairs:
a. Guarantees Support
b. Ensure Approval
c. Easy Access
d. Good Business
e. Good Image
a) Guarantees Support
 The prosperity or even survival of organisations in one way

or another depends on the support it gets from the
government
 A project or effort that has government backing will have a
better chance of success that one that does not (MSC)
 Imagine what the impact will be on the manufacturing
industries if the government decides that the commercial
rate of electricity or water for the industries should be
doubled that of the domestic consumers??
 Or what will happen to Proton if the government decides to
totally abolish all forms of protectionism Proton has been
enjoying for years??
b) Ensure Approval
 Good governmental relations can assure speedy approval of
a project
 Before any venture or project is to be launched, somewhere
or somehow government approval is required in Malaysia
 In the housing industry, for example, stricter and tighter
guidelines have been implemented recently following
numerous mudslide or landslide incidents in the Klang
Valley
 Government officials may not always be the most
important persons with whom a corporation interacts, but
organizations must remember they have the potential for
accelerating or slowing down the approval needed
c) Easy Access
 A good governmental relations means easy access to
government, including the policy makers and the
implementers
 Getting the feel of government’s thinking will assist the
Public Relations Officers in drawing up his/her plans of
action and what advice to give to his/her employer in
regard to the well-being of his/her organisation
 It will also enable the public relations officer to provide
relevant information about his company’s situation to the
appropriate government officials.
 This is especially more important in the wake of
increased literacy and consumer movement awareness
amongst Malaysian, emerging pressure groups and the
increase in interpretative and investigative reporting by
people such as TV3’s Karam Singh Walia
d) Good Business
 The clear understanding between the government and an
organisation will help to avoid unnecessary conflict
through policy changes hence saves money!
 a good relationship can lead to more sales of products
and services to governmental agencies. For example,
civil servants are encouraged to use MAS for their travels
and also buy Malaysian made-cars
 Also, companies with good rapport with the government
would have an added edge to win government tenders
 Furthermore, it could attract potential investors or might
easily get loans because of its good relations with the
government.
e) Good Image
 To be seen working closely with the government can
boost the image of an organisation. This is especially true
when the company is invited to join the trade missions
organised by the government
 Many of the social responsibility programmes of
business organisations can be conducted jointly with
government agencies to ensure wider publicity coverage
for these programmes.
 This in turn enhances the reputation and image of the
organisation, in the eyes of the government and public
6) TECHNIQUES USED IN GOVERNMENT
RELATIONS
a) Lobbying
 According to Alison Theaker, in her book entitled, The Public
Relations Handbook, lobbying involves ‘direct attempts to
influence legislative and regulatory decisions in government’ and
public affairs is the ‘specialized public relations effort designed
to build and maintain community and governmental relations”
 Lobbying can be either defensive, designed to abolish or amend
an existing law, or offensive, aimed at pushing the authorities to
create a law.
 key to lobbying is to understand the legislative process, and how
the government practice is different from other countries such as
in Malaysia, the function of ‘Dewan Rakyat’ and ‘Dewan
Negara’ and how an Act of Parliament is enacted here
a) Lobbying (cont)
 Four common lobbying mistakes according to
Charles Miller:
1. Contacts are no use unless you have a sound case
2. No amount of entertaining can substitute for a well-
researched case.
3. Think Government, not Parliament. It is also
important to talk to MPs’ advisors. Think system,
and take account of the network of institutions.
4. Do not act unless you know how Government will
react to your case
b) Issue Management
 Issue Management makes it possible for organisations to
shape government policy on issues which affect them,
rather than merely to adapt to policy changes
 Cutlip and Center (Effective Public Relations,1985:15) say
that issue management is the ‘process of identifying issues,
analyzing those issues, setting priorities, selecting
programmes strategy options, implementing a programme
of action and evaluating effectiveness.’
 Itis also managing corporate response to changes in
operational environments
b) Issue Management (cont)
 Issue management is a long-term strategic
management practice.
 Any significant changes or issues such as an increase
in electricity tariff in Malaysia would affect almost any
business
 Therefore, the organisation must be able to predict this
outcome through monitoring newspaper reports on the
proceedings in Parliament
 Organisations that are proactive will try to identify and
influence issues before they become influential on
government policy and legislation
C) Pact within trade associations
– Another way public affairs can draw strength
to meet any negative changes to government
policies or procedures is to form pact among
organisations in the same business
– For example, The Association Of Chicken
Breeders in Malaysia is so influential that they
can dictate the price of chicken, even though
this produce is placed under Essential Items
Act where the Minister of Consumer and
Domestic Affairs has the power to control the
price of this commodity
7) COMMUNICATION ACTIVITIES IN GOV
RELATIONS
 Grunig and Hunt (1984) listed six (6) kinds of communication
activities involving the Government
a) Fact-Finding
b) Liaison
c) Interpretation of Government Action to Management
d) Information Giving
e) Advocacy
f) Non-business organizations
a) Fact-Finding
- provides the organisation with advanced information on
threatening changes to the government policies or rules are
in the making
 For example, there is the increase in the awareness of
environmental issue in Malaysia. Ten years ago, most
companies did not consider it important to state
whether or not their products were environmentally
friendly, or had been tested on animals and if it was
illegal to discharge untreated industrial waste.
 However, lately Malaysians are getting wary of the
health threat these pollutants are causing and have
raised their concerns through the media or their
Member of Parliament
b) Liaison (connection / link)
- Public affairs practitioner makes personal contacts to
exchange information with government officials,
reporters, members of professional societies or
scientists.
- They also attends hearings, interviews officials, or call
on parliamentary and agency staff members
- Some of the corporate organisations have made it a
point to organise a facility tour for media
organisations so as to increase the rapport between
the media and the organisation.
- These organisations know and understand that any
feeling of hostility between the media and them can
invite unwanted scrutiny from the media. For
example, Indahwater Consortium in its earlier days of
existence was a favourite target of negative reporting
from the media
c) Interpretation of Government Action to
Management
- Once the public affairs people gathered facts
and maintained liaison, they will interpret the
results to the management.
- They will have to explain the effects of the
proposed legislation, regulations or ruling and
recommend what action might be necessary.
- For example, on the proposed new National
Automotive Policy (NAP) in Malaysia, companies
such as UMW and Cycle & Carriage which are
importing cars must be able to interpret the
effects of this policy on their business.
d) Information Giving
- Information also flows from the organization
to the government, through a lobbyist.
- The government needs input from the
industry before any policy or regulation is
enforced.
- For example, the government had planned to
ban tobacco industry in Malaysia. However,
the tobacco farmers in Malaysia have not
been able to switch to another crop even
though they were given a grace period.
- They appealed to the government to delay
this policy because the farmers do not have
enough resources or the money to implement
the crop change
e) Advocacy
–The public affairs officer should be involved in-lobbying,
grassroots campaign or communication campaigns to
influence the government.
–By communicating with the government or public, the
organisation hopes to persuade the government to
negotiate a mutually acceptable position
f) Non-business organizations
–Corporate organisations often work with representatives
of association in federal government.
–Public relations programmes such ‘The Road Safety
Campaign’ sponsored by Shell, works closely with the
Education Ministry.
–Petroleum companies sometimes offer grants to
universities to carry out research on the effects of oil
exploration in the sea
7) Public Affairs’ publics
 According to Grunig and Hunt, government
relations programmes are diverse because their
constituents are various, from parliamentary
representatives, government agencies and officials
to the community at large.
 Therefore the public affairs programmes are
designed for three types of public:
a) Active, Constituent Publics
b) Activist Publics
c) Government Publics
a) Active, Constituent Publics
 This type of constituent recognises the
same problem as the organisation and
perceives an involvement with the issues
of concern to the organisation.
 For example, the increase in the price of
petrol, didn’t only affect the transport
industry but also increased the travelling
expenditure of the general public.
 According to Grunig, this public fits
somewhere between a single-issue public
and a public that gets involved only when
it is personally affected.
b) Activist Publics
 also known as pressure groups. They will bring to the
attention of the media or government anything that
threatens their health or safety e.g. concerning air
pollution or contaminated food products
 Such pressure groups are The Consumer Association of
Penang (CAP) and The Federation of Consumer
Associations (FOMCA).
 They are always vigilant about consumers rights and
complaints, and would not hesitate to bring these
complaints to the attention of the media or government
C) Government Publics
 Government publics include the legislators and regulators
such as the members of ‘Dewan Rakyat’ and ‘Dewan
Negara’ who acts as protectors and sometimes mediators
between the organisations and the publics.
 This public will broker appeals from both organisations
and the general public and then formulate and enforce a
public policy such as the case of TNB.
 The government allowed the appeal for an increase in the
electricity tariff but at the same time, made sure that the
hike will not hurt the general population nor discourage
potential investments from overseas.
8) CONCLUSION
 The pervasive influence and growth of government
intervention at all levels of society in Malaysia may
not be good news to the business environment.
 However, the growing government scrutiny on the
business practices in Malaysia, has given rise to the
need for increased public relations support and
counsel.
 The corporate sector has come to depend on public
relations strategic planning and wisdom to help
establish and maintain a positive image and
reputation for the organisations
8) CONCLUSION
 According to Seitel (2004), especially in profit-
making organisations, the need to communicate with
various layers of government hierarchy, from federal
to local levels, is essential.
 Therefore, an effective public affairs practitioner
should be adept at trend watching, have the ability to
predict pending changes to legislative acts or public
policies, maintain good relations with the
government, have confidence of the management and
be able to resolve problems pertaining to public
relations
CHAPTER ....
LEADERSHIP &
CHANGE
COMMUNICATION
Madam Melina Mahpuz
01 INTRODUCTION
02 DEFINING LEADERSHIP
AND CHANGE
03 COMMUNICATING
DURING A CHANGE
04 EFFECTIVE LEADERSHIP
COMMUNICATION
1. INTRODUCTION
• Change is constant
• Change often implies a disruption of the status quo and previously established ways of
working and doing things.
• May trigger controversy and confusion with employees and almost always presents a
justification problem.
• May lead to resistance (when managers do not communicate about the change)
• Change may not be what worries the employees, but rather their expectation that they will no
longer continue to work for the same organization.
• Denise Rousseau defined expectation as s 'sense of continuity' and it is essential for
leaders to shape and emphasize sense of continuity to maintain the employee's identification
with the organization.
• Organizational change needs the leadership of managers who articulate a rationale for:-
i. Why change is needed
ii. Who to drum up support from ('followers')
2. DEFINING LEADERSHIP & CHANGE
• Our understanding of leadership at one level, build on images of great leaders. (e.g. Tun
Mahathir, Tunku Abdul Rahman, Tan Sri Zeti Akhtar Aziz)
• These great leaders have shaped how people think about leadership.
• Classic image of a leader, born-to-lead : have natural attributes and skills like courage,
charisma which often seen as 'given' / 'gifted'. (e.g. “He is such a natural leader”)
• Popular perspective of leadership : It can be acquired and developed, may also be
situational.
i. Focus on the ability to communicate and influence others, and simultaneously being
influenced by others in the implementation in change or any task.
• Traditional image of organization and control : Managers and supervisors should control and
manage the employees in strict ways, and from the basis of authority relationships.
• Since that 'traditional image', models of effective human resource management have
highlighted that employees are not robots or quantities of manpower, employees are social
beings who look for inspiration and want to be socially involved.
• Leadership may differ depending on leadership style.
i. The way in their communication and behaviour
ii. The way they approach and provide directions
iii. The way they implement plans
iv. The way they energize and motivate others
• These styles may reflect their own leadership philosophy, personality and experience.
• Transactional leadership style : The leader is concerned with maintaining and ensuring the
completion of a specific set of tasks.
• Transformational leadership style : Broad vision and mobilized by leaders to motivate
employees foster collaoration between them to reach higher-level goals.
• Transformational leadership is for example when CEO wants to strategically move the
organization in a different directon.
• Transactional leadership is central to supervise and support day-to-day operations of an
organization.
• Leadership is most needed in management of change
• Change is normal in an organization and can be classified in many terms.
• In terms of Degree of change :-
i. Radical change - Complete re-orientation of an organization.
ii. Convergent change - Fine-tuning the existing orientation and ways of working.
• In terms of its Time Frame :-
i. Evolutionary changes - Slowly ad gradually
ii. Revolutionary changes - Swiftly and affect virtually all organization.
• In terms of Primary Focus of the Change :-
i. Updated technology
ii. Restructuring and change in policies
iii. Routine ways of working
iv. Change in products and services
v. Change in organizational identity and culture
• Change can also be seen as departure from the old organization (substitution) or as an
addition, update of the old organization (addition).
Putting change in perspective: Additive VS. Substitutive changes
Additive Change Substitutive Change

Definition An incremental change at the level of work A redefinition of the organization's identity and
processes that enhances the productivity and purpose or a substantial restructuring of the
performance of the organization organization
Nature of change Small-scale Large-scale
Reason for Productivity: Specific operational problems or Continuity: the need for the organization to
change opprtunities to change work processes to achieve adapt or re-orient its overall structure and
superior economic performance positioning in a particular industry or set of
industries to secure its continuity
Term Short-term and strict time frame with clear starting Long-term, start point clear but longer time
and end points horizon around realizing the change
Focus Specific parts of the organization including Strategic renewal of the entire organization,
structures, technologies or work processes including its overall identity, structures,
technologies and work processes
Leadership Getting support for changes to work processes Getting support for a drastic change that
challenge that break with routines and conventions challenges the status quo and requires that
employees embrace a new or revised identity
3. COMMUNICATING DURING A CHANGE
• Corporate Communication involves communicating to employees during and after change.
• Communication is important to determine employees successfulness in implementing the
change.
• Poor communication may lead to rumors and resistance.
• Communication is also the main way to how a change is formulated, announced and
explained to employees that will eventually result to a successful implementation of change.
• the importance of communication by Kurt Lewin's model of the change process. (water
freezing)
(1) Recognizing the need for change (unfreezing)
(2) Development of a change plan (vision)
(3) Implementation of the new change (moving)
(4) Routinization of the change (refreezing)

Management Guru - John Kotter (Managing Change Model)
Create a sense of urgency
1
Preparation in advance
2 Form a guiding coalition of a change initiative
Create a vision 3
4 Communicate the vision
Implementation of
Empower others to act on the vision 5 change
6 Create quick wins
Management &
Build on the change 7 institutionalization of the
change (becomes the
8 Instutionalize the change new status quo)
Garvin & Roberto model
Change management as a persuasion process
Clampitt & colleagues Communication strategies
• Spray and Pray :-
i. Managers showering ('spray') employees with all info about the change.
ii. The strategy is to pass on to employees who, hopefully ('pray') will sort the details and find the
meaning of the change for their day-to-day job.
• Tell and Sell :-
i. Managers communicating limited set of messages that only highlight the core issues about
the change.
ii. A top-down strategy : employees are not engaged in a conversation, but only being informed
about the change.
iii. Employees may feel they are not listened to, become sceptical or cynical about the change.
• Underscore and Explore :-
i. Managers focusing on several fundamentals issues clearly linked to the change while allowing
employees to explore the implications of the change in a disciplined way.
ii. When managers use this strategy, they assume communication is not complete or effective
until they now the reaction of the employees about the change.
iii. Managers not are only concerned with developing but also with listening to employees to
identify potential misuderstandings and obstacles.
• Identify and Reply :-
i. Differet from the first three because it starts with the concern of the employees.
ii. The assumption of this strategy is that employees are in the best position to know issues and
feasibility of a change.
iii. Setback : emloyees do not have the bigger picture of the organization.
iv. Managers use this strategy as a defensive posture to be seen to attend to employee concerns
without even using the feedback.
• Withhold and Uphold :-
i. Managers withholding info until they can no longer keep them because of rumors or employee
revolt.
ii. Managers assume that infrormation s power and employees are not sophisticated enough to
understand.
• The differences between these strategies involve the degree of either employees are
provided with relevant information, given guidance, feel involved and consulted during
the change process.
• As you move towards to the middle of the figure, it tends to offer employees more guidance
by prioritizing communication and provifing relevant and focused information.
• These strategies are more sensitive to employee concern and needs.
• The Underscore and Explore :-

i. Organizational change is more successful when employees in non-management
positions are able to give employees over the change process by providing feedback on
the change and its implementation.
ii. Joint involvement and collaboration between managers and employees in identifying the
need for change lead to greater employee commitment to a change.
• The need for communication efficiency vary between some change initiatives.
• Communication efficiency :- the accomplishment of change communication with a minimum
expenditure of time, effort and resources.
• Communication efficiency is high in organizations :-
i. it is physically impossible to communicate in a face-to-face or interactive manner with
employees.
ii. resource devoted to change communication are scarce
iii. there is an urgent need to progress through the change process thus, limited time for
interaction.
• Consensus-building :- effort in change communication to achieve commitment to a course
of action as a result of joint decision-making.
• Consensus-building is high in organization when :-
i. changes are preceived to be radical and/or controversial
ii. there is a history of resistance to similar change
iii. critical resources (e.g. expertise, approval) are controlled by employees
iv. ongoing support and cooperation needed to maintain the change
Factors affecting the choice of change communication strategies
High need for

communication Need-to-know strategy Quid pro quo strategy
efficiency
Low need for

Equal participation
communication Equal dissemination strategy
strategy
efficiency
Low need for consensus- High need for

building consensus-building
• Need-to-know strategy :-
i. Managers keep quite about planned hange except to employees that really need to know
or who explicitly express a desire for the info.
ii. This is done in (1) part out of an efficiency motivation, (2) in part to avoid giving rise to
potential objection from employees, (3) in part to avoid overburdening employees with
large information which they have little time or use.
• Quid pro quo strategy :-

i. Managers give more attention to employees who have something valuable (e.g.
expertise, approval, power, resources) for the change process.
ii. These employees are crucial to the change, thus need to consulted and communicated
with for the success of the change.
iii. It may anger other employee who feel left out.
• Equal dissemination strategy :-
i. To spread the information to employee entire organization early, often and on equal
basis.
ii. Usually through newsletters, general meetings, postings, individual meetings, phone
calls, posters and banners.
iii. This strategy is not to involve all employees in the change but to give everyne fair notice
of the change
iv. This strategy is used to prevent complaint by employees
v. Common stratergy in large organizations with abundant communication channels.
• Equal participation strategy :-
i. Involves two-way communication (i.e. both disseminating infromation and soliciting input)
between managers and employees.
ii. Used when employees are crucial to the success of the change.
iii. Strategy quite costly and may become political when opinion, support and advice from
all sectors of the workforce are sought.
iv. Common stratergy in small and public sector organizations.
4. EFFECTIVE LEADERSHIP COMMUNICATION
• The use of communication by leaders like managers is to help employees understand and
implement the change.
• Successful management communication can make massive difference.
• Managers and leaders may reflect on how to communicate and how to frame change to
others to gain support.
• Attribute of successful management or leadership communication :-
i. A thruthful and passionate commitment to an idea
ii. Passion through facial expression and use gestures
iii. Tell stories
iv. Need conversational skills
• A thruthful and passionate commitment to an idea :-
i. Commitment to a clear, inspiring idea.
ii. Committed to what they are saying, it gives out a level of consistency and personal
touch.
iii. It brings a personal passion that is more like to win people over.
• Passion through facial expression and use gestures :-
i. Gestures (natural mobements of the arm and hands)
ii. Gestures are subtle but important means of communication and persuasion that are first
seen to reflect a leader's emotions or passion about something.
iii. Skillfully using gestures can make a person seen as persuasive.
• Tell stories :-
i. Stories and frames are to initiate change initiative and motivate workforce.
ii. Stories can be useful to present in a single frame the rationale of change, the steps
needed to realize it and the overall beneficial outcomes that are likely to result.
iii. Stories present a sequence of action and events leader to a paticular outcome (as the
plot). The outcome then rationalize any conscious taken by individuals to get there.
iv. Provide the coherent understanding of what the change may lead to.
• Need conversational skills :-
i. To tap into ongoing conversations about the change.
ii. The aim is to mobilizing conversation at the interpersonal level to enable others in the
organization to see possibilities
iii. Try to relate to others in conversational setting so employees can view the organization
and managers relations with others in a new light.
iv. Successful leaders are able to have open conversations.
v. Willing to say where they stand and what they think, while showing themselves as being
open to accept new suggestions and opinions.
• Importance of conversations and conversational skills :-
i. Emphasize that a straightforward leadership presentation may not be sufficient.
ii. In order to continue and accelerate the enthusiasm and implementation of a change,
managers and leaders must have regular and ongoing conversations with people they
are leading about the things that is going on.
iii. This detailed conversations often matter the most and may be deciding factor to whether
individuals in organizations are supportive or resistant to a change.
Thank You
CORPORATE PUBLIC
RELATIONS
PRO541
CHAPTER 10
CRISIS COMMUNICATION
INTRODUCTION
 A crisis is something everyone can relate to the death of a close

relative, the theft of one’s car, or even a broken heart-all can become
crises in one’s personal life.
 Organizations face crises as well. Exxon’s Valdez, Johnson&Johnson’s
Tylenol case, Cadbury, MH370, Kuil mariaman USJ23 racial and
religious incident, Coca-Cola’s product recall in Belgium, and
Firestone’s tire recalls all become crises for the companies and people
involved
 Thirty years ago, such events would have received some national
attention but would more likely have been confined to the local and
regional area where the events occurred.
 Today, because of changes in technology and the makeup of the media
itself, any corporate crisis is covered in a matter of hours by the
national and international media, and Webcast over the Internet
 Thus, a more sophisticated media
environment, as well as a new
emphasis on technology in business,
has created the need for a more
sophisticated response to crises.
 Organizations also face crises that
occur naturally: A tsunami rips thro a
beach, leveling the houses and all in its
path.
 Although natural disasters cannot be
avoided, there are many crises-those
caused by human error, negligence, or,
in some cases, malicious intent-that
planning could have prevented in the
first place
Definition of a crisis:
A crisis is a major catastrophe that may
occur either naturally or as a result of
human error, intervention or even
malicious intent. It can include tangible
devastation, such as the destruction of
lives or assets, or intangible devastation,
such as the loss of an organization’s
credibility or other reputational damage.
The latter outcomes may be the result of
management’s response to tangible
devastation or the result of human error.
Crisis Characteristics
 While all crises are unique, they do
share some common characteristics
according to Roy O’Rourke,
managing director for Global
Corporate Affairs at investment
bank Morgan Stanley.
(1) the element of surprise
(2) Insufficient information
(3) the quick pace of events
(4) Intense scrutiny
 What makes this difficult for executives is that the element of
surprise leads to a loss of control. It’s hard to think strategically
when overwhelmed by unexpected outside events.
 In addition, the media frenzy that typically surrounds a crisis can
prompt a siege mentality to ensue, causing management to adopt
a short-term focus.
 Attention shifts from the business as a whole to the crisis alone, forcing all
decision-making into the shortest time frame.
 Part of the problem in dealing with crises is that organizations have tended not
to understand or acknowledge how vulnerable they are until after a major
crisis occurs.
 Lack of preparation can make crises even more severe and prolonged when
they do happen.
How to Prepare for Crises
1. Assess the Risk for Your Organization
How can organizations determine whether they are
more or less likely to experience a crisis?
Publicly traded companies are at more risk
because of their nature of their relationship
with a key constituency -shareholders as
compare to privately owned companies
The person in charge of corporate
communication should call a brainstorming
session that includes the most senior
managers in the organization as well as
representatives from the areas that are most
likely to be affected by a crisis
a) Plan for Crises
 the person in charge of corporate communication should call a brainstorming
session that includes the most senior managers in the organization as well as
representatives from the areas that are most likely to be affected by a crisis.
 During the brainstorming session, participants should work together to develop
ideas about potential crises. They should be encouraged to be as creative as
possible during this stage.
 Once an inventory of possible crises exists, the facilitator should help the
group to determine which of the ideas developed have the most potential to
actually occur. (prioritizing)
 It might be useful, for example, to ask the group to assign probabilities to the
potential crises so that they can focus on the more likely scenarios rather than
wasting time working thro solutions to problems that have a very low
probability of occurring.
b) Determine Effect on Constituencies
 Once the probability of risk has been assigned to potential crises, organizations
need to determine which constituencies would be most affected by the crisis.
 Determining how to rank constituencies when a crisis actually happens is more
difficult because so many other things are going on.
 But thinking about risk in terms of effect on constituencies in advance helps the
organization further refine which potential crises it should spend most time and
money preparing for.
2) Set Communication Objectives for Potential Crises
 Setting communication objectives for potential crises is
different than figuring out how to deal with the crisis itself.
 Clearly, organizations must do both, but typically managers
are more likely to focus on what kinds of things they will do
during a crisis rather than they will say and to whom.
 Communication takes on more importance than action when
the crisis involves more intangible things such as the loss of
reputation rather than the loss of lives.
3. Analyze Channel Choice
 The participants in planning session should
begin to think what their communication
objective will be for each constituency.
Whether this objective will be achieved
often depends on the effectiveness of the
communication channel the company
selects to convey the message.
 The choice of communication channel can
often reflect how sensitive a company and
most sensitive way to communicate with
consumers or their families during a crisis
4) Assign a Different Team to Each Crisis
 Another important part of planning for communicating in a crisis is
determining in advance who will be on what team for each crisis.
 Different problems require different kinds of expertise, and planners
should consider who is best suited to deal with one type of crisis versus
another. E.g., if the crisis is likely to have financial focus, the chief
financial officer may be the best person to lead a team leading with such a
problem.
 But managers should avoid putting senior-level executives in charge of
communications for all crises. Sometimes the person closest to the crisis is
one people want to hear.
 For e.g., the best spokesperson for a global company may be someone
located in the country where the problem develops rather than a more
senior manager from the head office.
5) Plan for Centralization
 Although organizations can employ either a centralized or decentralized
approach to corporate communication for general purposes, when it comes to
crisis, the approach must be completely centralized.
 Decentralized organizations often find it more difficult to communicate
efficiently between divisions, especially if they have not given interdivisional
communication full consideration in a crisis-planning phase.
Centralized communication is an easier way for
companies to achieve consistency in and control over
all communication activities
Centralized Communication means keeping all
communications focused by unifying the activity under
one senior officer at headquarters
Planning for centralization can help strip away layers
of bureaucracy, keep lines of communication open
throughout the organization, and dispel conflict, all
of which are critical in a crisis.
6. What to Include in a Formal Plan
 Every communication consultant will suggest that you develop
a detailed plan for use in a crisis. These are formal in the sense
that they are typically printed up and passed around to the
appropriate managers who may have to sign a statement
swearing that they have read and agree to the plan.
 Research on crisis planning shows that the following
information is almost always included in a crisis plan
a) A List of Whom to Notify in an Emergency
b) An Approach to Media Relations
c) A Strategy for Notifying Employees
d) A Location to Serve as Crisis Headquarters
e) A Description of the Plan
a) A List of Whom to Notify in an Emergency
 This list should contain the names and numbers of everyone on

the crisis team as well as numbers to call externally such as the
fire and police departments.
 The list should be kept updated as people leave the company or
change responsibilities
b) An Approach to Media Relations

 Frank Corrado, the president of a firm deals with crisis
communications by “Tell It All, Tell It Fast.” To a certain this is
true, but one should extremely careful about applying such a
rule too quickly to the media.
 Perhaps a friendly amendment to Corrado’s rule might be “Tell
as much as you can, as soon as you can,” so that you do not
jeopardize the credibility of the organization.
 If the organization has done a good job of building relations
with the media when times are good, reporters will be more
understanding when a crisis occurs.
c) A Strategy for Notifying Employees
 Employees should be seen as analogous to families in a
personal crisis. An organization should take pains to ensure
that a plan for employee notification is created with
employee communication professionals in advance and is
included in the overall crisis plan.
d) A Location to Serve as Crisis Headquarters

 All companies really need to do is identify ahead of time an
area than can easily be converted to such an operation.
Gathering the appropriate technology as quickly as possible
when a crisis hits is also important
e) A Description of the Plan

 Companies should have their crisis plan. It should address
logistical details as well. For example, how and where the
families of victims should be accommodated in the case of
an airline crash.
7) Communicating During The Crisis
a) Get Control of the Situation
 The first step is for the appropriate manager to get
control of the situation as soon as possible.
This involves defining the real problem with the use
of reliable info and then setting measurable
communication objectives for handling it.
Failing to take this seemingly obvious, but
crucial, 1st step can be devastating to crisis
management efforts, as seen in the Perrier case.
When a crisis erupts, everyone in the
organization should know who needs to be
contacted, but in large organizations this is often
unrealistic. Therefore, the corporate communication
department can initially serve as clearinghouse.
b) Gather as Much Information as
Possible
Understanding the problem at hand is the
right place for communicators to begin
dealing with a crisis. This often involves
managing information coming from many
sources.
As info becomes available, someone should
be assigned to mine that info. Many
corporations have been criticized for reacting
too slowly during a crisis because they are
trying desperately to gather info about the
incident.
If it is going to take longer than a couple of
hours to get the right info a company
spokesperson should communicate this to
this to the media and other key constituencies
right away to make clear that the company is
not stonewalling.
c) Set Up a Centralized Crisis Management
Center
At the same time managers are getting in touch with the right
people and gathering info, they should also be making
arrangements for creating a crisis center.
d) Communicate Early and Often
 The organization’s spokesperson needs to say whether
he or she can as soon as possible. Particularly if the crisis
involves threat to lives and property, communicators
should try to shield constituencies from panic by allaying
some of the probable fears that people will have about the
situation.
 Employees, the media, and other important
constituencies should know that the crisis will issue
updates at regular intervals until further notice.
 Even if they retain public relations firms to assist them in
handling a crisis, companies need to put good inside
people on the front lines of crisis communication.
e) Understand the Media’s Mission in a Crisis
Members of the media work in a extremely competitive environment,
which explains why they all want to get the story 1st. They are also
more accustomed to a crisis environment in their work.
f) Communicate Directly with Affected Constituents
Using the media to get info out is good, but it’s more important to
communicate with your employees, sales staff, organized
leadership, site security, operators, and receptionists, as these will
be the media’s best source of info in the crisis. External
constituencies need to be contacted as well.
g) Remember that Business Must Continue
To managers involved, the crisis will certainly be uppermost in their minds
for the duration, but to other, the business must go on despite the crisis.
h) Make Plans to Avoid Another Crisis Immediately

Post crisis, corporate communications executives should work with other
managers to ensure the organization will be even better prepared the next
time it is faced with a crisis.
Companies that have experienced crises are more likely to believe that
such occurrences will happen again, and also recognize that preparation
is key handling crises successfully.
NEW MEDIA,
NEW COMMUNICATION
PRO541
Corporate Public Relations
PR + [ ] = Winning Formula
Social Media & PR 2.0 (3.0?)
Traditional PR PR 2.0
• One way • Two way
• News Release • Social Media News Release
• Media Relations • Video News Release
• Events • Search is KING
• One to many/shotgun • Live streaming
• Scheduled • One to one (intimate)
• • Always on
Manageable pace
• Hyper-warp speed
• Structure
• Open
• Broadcast
• Conversations
• Single audience • Peer to peer
• One voice • Multiple voices
• Spin • Authentic
Social Media?
• Internet – based*
• User – generated and published information
• Community sharing
• Multimedia
• Immediate
• Collapsed geographically
*internet is the organizing agent; communication is personal

Total Enrichment Experience!
Let’s Discuss!
Relevancy: Keeping Up With Times
(and the Joneses)
• Social Media is NOT the Death of Public Relations
– EVER.
• PR in today’s landscape: the practice of managing
communication between an organization and its
publics, amped by social platforms for better
reach, added value and mutually beneficial
relationships, thus, achieving the organization’s
bottom line.
• Goal: to be a propelling force, leading the change,
and a change agent who makes the new practices
systemic in your organization
New PR Mindset
• This mindset takes into consideration how PR
extends beyond what we were used to in the
traditional realm
• It is what you can look forward to as you see
more businesses becoming “socialized” to meet
the needs of their customers
• SM is moving across the organization, from
marketing/sales/IT/product development
• The Future of PR and Communications is
adaptability
Understanding Social Relevance
• Audiences talk;
good/bad
• With Social Media, it
serves as a platform to
vocal out those
joy/frustrations
• Builds/destroys
– Entities
– Business
– People
When SM meets PR, Communication
Unites with Technology
• For better or for worse, a career in PR means
handling communications in the public spotlight
because of the increasing use of SM
• In the wake of democratized content and
businesses satisfying the needs of the digitally
connected consumer, PR had to evolve with a
new approach
• This approach required a shift in thinking, from
strategy and planning all the way through to
implementation and measurement
Proliferation of Technological Gadgets
• How fast is fast? Real FAST.
• Have you bought a new gadget in the past
couple of months? Big mistake.
• The first quarter of the year is when the next-
next big thing gets announced.
• With so many different types of tech toys
connecting to the social web, each new
generation changes how we all share online.
This Wired Life of Ours
What I Need What I Want
• Call • Beyond the basics:
• Text – Call – only when it’s urgent
– Text – with and .Gif
• Socially competent to
somehow OWN some sort • Wearable
of communication • Network
mobility ;p • Digital space
• More cloud storage
• Better OS
Class Discussion
• SM requires us to shift our mindset to unite
communication and collaborative technology
• When you adopt a new attitude and expand
your knowledge and skill, the result leads to
successfully incorporating new practices into
your daily responsibilities; personally and
professionally
Where do you go from here?

Here…
• Incorporate new knowledge and skills into your work
• Expand your knowledge of other marketing and digital
practices, as you become a hybrid or integrated new
media professional
• Act as a liaison to create unique bonds between
different groups that don't normally work together
within the organization, all functioning harmoniously
for better internal as well as external communications
• Become a PR champion/influencer who educates
others and spearhead a change movement

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CORPORATE PUBLIC RELATIONS

 The public’s expectations of corporations today are

 Companies need to be progressive leaders about a

 Public scrutiny of business is constant and intense,

 The Industrial Revolution moved American industry away from a

 Most Americans wanted the lifestyle of these business magnates and

 1920s - great disparities in wealth distribution.

 This created disparities – between rich and middle class, between

 Caused unstable economic conditions

 Internet also began to shape attitudes

 They had the ability to get messages out

 Throughout history, literature and the arts have both

 In the United States, cinema and television over the past

 In a continuous research, Businesspeople are portrayed

 Canadian philosopher Marshall McLuhan foresaw- “a

 In his book, The Mind of the CEO, Jeffrey Garten

 Continual technological advances have made it difficult

 Media outlets have expanded their reach such events

 Even well-respected companies face attacks in this anti-

1. Recognize The Changing Environment

 Most theories associated with communication are based

1. Determining the objectives for

 many different reasons for deciding to communicate

 Determining how to communicate about something depends

 similar to analyzing your audience. Done to determine:

1. How it wants to deliver the

CORPORATE PUBLIC RELATIONS

 examine the first and most critical part of that

 Identity is the visual manifestation of the company’s reality

 conveyed through - name, logo, motto, products, and all other

 Image is a reflection of an organization’s identity. it is the

 depending on which constituency is involved, an organization

 this collection of tangible and intangible things, that provides

 industry is facing global competition and companies are trying to

 organization’s identity and image might be the only difference to

 Most central to corporate identity is the vision that encompasses

 Corporate vision is a common thread that all employees, and

 Thinking about this vision in terms of a narrative or story of sorts

 External constituencies rely on information we provide them

 A vision that Inspires

 An organization’s vision should manifest itself

Method successfully used by many organizations to manage the

1) Conduct an Identity Audit

1) Conduct an Identity Audit

2) Set Identity Objectives

 must explain how each constituency should react to specific

3) Develop Designs and Names

 Need help of consultants to see if name is available

 Ensure that logos continue to reflect accurately the company’s

and a manager’s own instinct. Both need to be a part of the final

 At times criticism mounts from employees who are not involved in

decision making process

to be abandoned and work started all over again

5) Launch and Communicate

6) Implement the Program

several months for small firms

sometimes strong towards old identity

identity program is to develop identity standards manual

identity consistently and correctly

involving lots of interpersonal savvy and a coordinated approach

 An organization’s image is a function of how constituencies

 foundation of a solid reputation exists when an organization’s identity

Customer Image Community Image Investor Image Employee Image

READ ABOUT HP ON PAGE 156