n Corporate communications n Corporate image n Corporate

  • Slides: 27
Download presentation
n Corporate communications n Corporate image n Corporate identity n Reputation n Corporate credibility

n Corporate communications n Corporate image n Corporate identity n Reputation n Corporate credibility n Ethical considerations n Ethical dilemmas in public relations n Corporate social responsibility n Managing local and regional sensitivities n Briefing on group assignment 2 (Critique of a CSR programme) n Summary for the day 1

Corporate Communications n n Effective corporate communication is vital for companies and organisations to

Corporate Communications n n Effective corporate communication is vital for companies and organisations to have a positive image and to be seen as good corporate citizens. To communicate broadly with a range of stakeholders and large groups such as communities, management has to use public communication techniques 2

Effective Corporate PR MUST focus on the following: n n n The credibility of

Effective Corporate PR MUST focus on the following: n n n The credibility of the corporation and the corporate management Demonstration of corporate concern for individuals A more thorough public understanding of the economic realities of corporate life Information on profits, productivity, pricing and distribution of the sales dollar A willingness on the part of business to help solve some of the problems of society 3

Corporate Image Definition - An impression, perception, belief, appearance which characterise the organisation. Could

Corporate Image Definition - An impression, perception, belief, appearance which characterise the organisation. Could be true picture of the organisation or half truth of the organisation. Also known as recognition, reputation, credibility or integrity. A Good Corporate Image - Is one which has all it’s physical appearance matching the ideas, pricnciples, philosophy the organisation professes to be ie it is true to itself A Bad Corporate Image - Is one which is having the “stated” and the “real” being different, or it’s practises/values differing vastly from the reasonable expectation. 4

Identifying Organisation / Persons / Products with a Staying Image Name the first person/organisation/company/brand

Identifying Organisation / Persons / Products with a Staying Image Name the first person/organisation/company/brand that comes to mind as you read the following words: n n n 1. Bank 2. Airline 3. Singer 4. Politician 5. Computer 6. Watch 7. Department Store 8. Restaurant 9. Hotel 10. Handphone 11. Travel Agent 12. Human Rights 5

Managing Corporate Image n n n Truth Timeliness Congruence Deeds of the organisation Beliefs

Managing Corporate Image n n n Truth Timeliness Congruence Deeds of the organisation Beliefs Response to criticism 6

Reputation n n n Reputation which has recently become a buzz word is not

Reputation n n n Reputation which has recently become a buzz word is not a new concept. A number of case studies suggest that reputation is different from brand. Reputation exists beyond or in parallel to brand identity Reputation includes factors beyond marketing where brands are usually created and managed PR and corporate communications significantly influence reputation Thus PR and corporate communication should play an active role in identifying and building reputation 7

10 Principles of Reputation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

10 Principles of Reputation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Reputation is not something new It is an existing condition Reputation is perception Reputation is a collective or cumulative perception Reputation is formed among many different individuals and groups Reputation is dynamic Reputation is broad but there are only certain parts that matter Reputation is whatever the groups that matter decide it is Reputation is comprised of perceptions based on experience and rational thinking, while brand is a highly emotional concept Reputation cannot be created by advertising or built by publicity 8

Benefits of a Good Reputation n n n Command premium prices for products and

Benefits of a Good Reputation n n n Command premium prices for products and services Recruit better caliber staff Attract greater loyalty from internal and external stakeholders Have more stable revenues Face fewer risks of crisis Gain greater support fro their constituents 9

Achieving Credibility 1. 2. 3. 4. 5. 6. An Organisation’s Credibility starts with the

Achieving Credibility 1. 2. 3. 4. 5. 6. An Organisation’s Credibility starts with the following : Openness and Honesty Incorporation of PR perspectives in policy making Two way communication with both internal and external publics Coordination of what is done with what is said Consistent actions Social responsibility 10

Corporate Identity n n Visual elements which help create the desired impact on the

Corporate Identity n n Visual elements which help create the desired impact on the audience. They should be: Outstanding Consistent Continuous In good taste 11

Corporate Identity Usually comprised of there elements as follows: 1. A logo – symbol

Corporate Identity Usually comprised of there elements as follows: 1. A logo – symbol or logotype characterising and identifying the company of organisation 2. One or more chosen colours 3. A particular type face Note: It is important that identity is consistent. A consistent identity helps create identification and projects a professional image 12

International Cultural Challenges n n n Some names and symbols can translate into something

International Cultural Challenges n n n Some names and symbols can translate into something nonsensical or offensive Colours and numbers can also pose problems in some cultures Research is essential to avoid problems Cultural and language familiarity is helpful Consult local organisations and individuals 13

Ethical Considerations n n n Leaving aside moral values important to us that we

Ethical Considerations n n n Leaving aside moral values important to us that we would like to see upheld in an ideal world, good ethics is simply good business Public relations provides a link between ethical business behaviour and increasing the chances of achieving corporate objectives Companies with good records on ethics and social responsibility are likely to enjoy better public relations than less ethical competitors 14

Defining Ethics n n A value system for making decisions about what is right

Defining Ethics n n A value system for making decisions about what is right or wrong The conduct of individuals and organisations is measured not only against their own consciences but also in relation to societal and professional norms Different people, organisations and cultures frequently have different standards and conflicting values Ethical behaviour implies a higher standard than merely obeying the law - the law is a “floor” 15

Why Does Ethics Matter n n Good public relations creates a climate of acceptance

Why Does Ethics Matter n n Good public relations creates a climate of acceptance for organisations - a key source of competitive advantage Unethical companies may appear to succeed in the short-run, but frequently find poor public relations is the longterm penalty for their approach 16

Business Ethics n Recent events (e. g. Enron, World. Com, ) have put the

Business Ethics n Recent events (e. g. Enron, World. Com, ) have put the spotlight on business ethics and corporate governance – Corporate governance refers to the system by which organisations are directed and controlled n n Many companies now have in-house codes of ethics or codes of conduct Triple bottom line reporting (3 Ps) is becoming commonplace – People (social performance) and Planet (environmental performance) as well as Profits (the traditional bottom line) n Companies like Shell and Mc. Donald’s have issued Statements of Business Principles and Social Responsibility reports 17

Topics Addressed in Corporate Code of Ethics 1. 2. 3. 4. 5. 6. 7.

Topics Addressed in Corporate Code of Ethics 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Company philosophy and commitment to ethical conduct Observance of laws and regulations Conflict of interest Bribes and kickbacks Accuracy of books and records Gifts, gratuities and entertainment Proper use of corporate assets Relations with competitors Gathering competitor information Protecting company confidential information Insider information Political contributions and activities 18

Topics Addressed in Corporate Code of Ethics (Cont) n n n Truth in advertising

Topics Addressed in Corporate Code of Ethics (Cont) n n n Truth in advertising Customer relations Product quality Product safety Employee relations Equal employment opportunity Worker safety Use of agents and consultants Relations with suppliers Relations with the community Environmental protection Relations with government representatives 19

Why Ethical Dilemmas are Especially Common in PR n n n PR frequently deals

Why Ethical Dilemmas are Especially Common in PR n n n PR frequently deals with highly controversial and sensitive issues PR deals with relationships on interpersonal, organisational and societal levels Often, there are conflicts between the needs and expectations of diverse publics – E. g. , employees, customers, shareholders, local communities, pressure groups, government etc 20

Why Ethical Dilemmas are Especially Common in PR (Cont) n n PR professionals must

Why Ethical Dilemmas are Especially Common in PR (Cont) n n PR professionals must act as advocates of external and internal publics whilst also representing the interests of their organisations Ethical choices are rarely black and white Often the “right” decision involves choosing the lesser of several evils A good rule of thumb: – Would you feel comfortable if your decision/course of action was outlined in a front-page newspaper story tomorrow? 21

PR can also be accused of: n Spinning the facts n Distortion and lying

PR can also be accused of: n Spinning the facts n Distortion and lying n Deceiving the public n Telling half truths n Creating hype 22

Major Positives of Socially Responsible Public Relations n Public relations improves professional practice by

Major Positives of Socially Responsible Public Relations n Public relations improves professional practice by codifying and enforcing ethical conduct and standards of performance n Public relations improves the conduct of organisations by stressing the need for public approval n Public relations serves the public interest by making all points of view articulate in the public forum. 23

Major Positives of Socially Responsible Public Relations (Cont) n Public relations serves out segmented,

Major Positives of Socially Responsible Public Relations (Cont) n Public relations serves out segmented, scattered society by using communication and mediation to replace misinformation with information, discord with rapport n Public relations fulfills it’s social responsibility to promote human welfare by helping social systems adapt to changing needs and environments 24

Principles of Ethical Public Relations n Honest communication for credibility n Openness and consistency

Principles of Ethical Public Relations n Honest communication for credibility n Openness and consistency of actions for confidence n Fairness of actions for reciprocity and goodwill n Continuous two way communication n Environmental research and evaluation 25

Corporate Social Responsibility Closely related to the ethical conduct of an organization is its

Corporate Social Responsibility Closely related to the ethical conduct of an organization is its social responsibility. Social responsibility touches practically every level of organizational activity. 1. 2. 3. 4. 5. 6. 7. A list of social responsibility categories include the following: Product lines Marketing practices Corporate philanthropy Environmental activities External relations Employment diversity Employee safety and health 26

How CSR is viewed by stakeholders n n n An essential part of good

How CSR is viewed by stakeholders n n n An essential part of good corporate governance As a measure to evaluate corporate performance A non-financial indicator of a company’s performance Perceived as being less risky than those that only release financial information An indication of a company that practices fair trade and is environmentally aware 27