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What are three main points about modern corporations?
- 1) They are large and bring remoteness
- 2) The public distrusts them (only 27% trust)
- 3) Media stories fan suspicions (ex. BP)
What role do PR practitioners play in a corporation? (2)
- 1) Negative publicity so they help corps gain trust and credibility
- 2) Help corps realize the importance of CSR
What does CSR stand for and what does it mean?
- Corporate Social Responsibility - a commitment to:
- behaving ethically
- contributing to economic development
- improving the life of the company's workforce and their families
- improving local community at large
What term is associated with "more than following the law"
What three ways are corps unique?
- they deal with a number of governments
- their operations affect the environment
- their large sizes bring remoteness
What percent of the public trusts corporations?
CSR requires what three things?
- Adopting ethical principles
- Pursuing transparency and disclosure
- Making trust a foundation precept of corp governance
What is the importance of a PR practitioner in a corporation?
- they are the eyes and ears of the corporation, trained on all stakeholders
- Serve as a link between the CEO and realities of the marketplace and the organization
True/False: PR practitioners need to be a yes-person when dealing with corporations.
False: They CANNOT be a yes-person.
To implement CSR, PR must do what three things?
- counsel the CEO
- help create/maintain company morale
- urge becoming a good public citizen
What four key factors should be considered when making a decision?
- Political: How do government regulation and other political influences affect the decision?
- Technological: Do we have the engineering knowledge accomplish the goal?
- Social: What is our responsibility to society?
- Economic: Whether making a profit is possible
What is the dilemma with the media?
- it makes CEOs defensive about business coverage (media are enemy)
- too many unqualified reporters
What is the most effective way a corp can get it's message across?
Why does the media view corps negatively?
- Uncooperative execs erect barriers against them
- don't have access to key personnel
- CEO who don't understand objectivity think anything unfavorable is intentionally bad
means- let the buyer beware
Customer service relations is a part of PR responsibility (yet separate from PR function) because?
- consumers expect sellers to deliver goods of safe, acceptable quality on honest terms
- single incident can damage company reputation
- internet/blogs reach thousands
What is the frontline of PR
True/False: Corps must focus on one market.
False: Corps must reach and focus on diverse markets.
What are the side-effects of public recalls?
- test consumer patience and company credibility
- Pr has to monitor after-effects
What are the 5 priorities of customer relations?
- keep old customers
- attract new customers
- market new products or services
- speed up complaint handling
- reduce costs
What is the Office of Ombudsperson?
originally was a government official in Sweden and New Zealand appointed to investigate complaints about government officials
What is the FTC?
Federal Trade Commission - protects consumers in foods, drugs, cosmetics
What does the CPSC (consumer product safety commission) do?
oversees product safety/standards
Office of Consumer Affairs does what?
Publishes literature to inform public developments in consumer affairs
What is an example of a group that targets companies?
What is a boycott?
- a refusal to buy products or services
- a small percentage drop in sales will cause companies to rethink policies, especially for a single product
PR concentrates on communicating with employees and working with human resources, but it's difficult to retain good employees when...
its messages are not believed
What are major PR employ relation challenges?
- Layoffs and outsourcing
- allow rumor mill to work overtime
What is a layoff?
job reduction procedure
What is outsourcing/offshoring?
sending white collar jobs to other nations
What is the greatest employee challenge for corporations?
dealing with composition of employees that includes more minorities
How should employers deal with diversity in the workplace?
- employers must embrace diversity and actively recruit ethnic minorities
- large groups with boycott, rally and/or sue
PR practitioners must communicate with shareholders and prospective investors. What is this work called and what is its goal?
- Investor relations
- goal: to combine communications and finance to accurately portray prospects from an investment standpoint
What is integrated marketing communication?
- PR combined with advertising, marketing, direct mail and promotion
- news stories combine with advertising, marketing and direct mail
What is publicity?
a low cost effective was to reach potential customers
publicity builds what?
What is product placement?
- when a product is in a movie or on television
- often from fees paid to studios
- film producers needing particular product
What is cause related marketing?
- When a for-profit company combines with
- non-profit company (often a charity) to advance a cause and increase sales
Why do corporate sponsorships?
- 1) enhance reputation
- 2) gives brands high visibility
- 3) promote focal points for marketing and sales
- 4) generate publicity
Good CSR today means
increased corp concern for environment and sustaining resources
What is an NGO?
nongovernmental organization that champions environmental and human rights issues
donations to various causes