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SUMMARY Public Relations and Reputation Management
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Complete lecture notes [1-12], including guest lecture Year .
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1Lecture 1: Intro
Public Relations
→ Management of Communication of the Organoization, ex: negotiation on points of view and binding
interests (Grunig)
→ Management of a mutual understanding between an organization and its publics (Cutlip)
→ Development of relationships to help communicate about an organization, issue, person or product
(Gordon)
Function or activity that aims to establish and protect the reputation of a company or brands, and
to create a mutual understanding between the organization and the segments of the public with
whom it needs to communicate (Cornelissen[book])
Reputation - overall assessment of an org by its stakeholders
- Represents the emotional reaction (good, bad, weak or strong) of customers, investors,
employees and public
- Encompases dimensions such as product quality, innovation, investment value, people
management and responsibility
Corporate Communication - management function that offers a framework for the effective
coordination of all internal and external communication with the overall purpose of establishing and
maintaining favorable reputations with stakeholder groups upon which the organization is dependent
History of PR:
PR always existed informally, role in capturing the attention of the public and mobilizing citizens.
Some of the oldest PR material connected to political propaganda or recruitment for wars
1900s
- Industrial revolution
- Development of advertisement as a structured concept, PR more became formalized
- Foundation of Publicity Bureau in Boston, similar in UK
Edward Bernays
- Considered founding father of PR as a discipline
- Nephew of Freud, deeply influenced by his theories about the subconscious
- Introduced concept of focus group and worked with tobacco brands and other controversial
products
, 2
“Bacon & Eggs” → When Bernays was asked by the Beechnut Hacking Company to improve its bacon
sales, he devised a campaign to turn bacon and eggs into the quintessential American breakfast. First, he
surveyed a group of medical professionals to get their recommendations that people eat hearty, nutritious
breakfasts. Then, he sent the survey results to 5,000 physicians, along with publicity touting bacon and eggs as
a nutritious breakfast. [strategic PR]
Torches of Liberty → taboo about women smoking in pubic
1980s
Restructuring trend - all activities within an organization evaluated on the basis of what they contribute
to the org.
- Comm professionals are consolidated in PR departments and procedures (ex: comm guidelines)
are established for the whole org
[+] PR start being recognized as a function the whole org benefits from
[-] no consideration is given for the role of stakeholders
1990s
Strategic Positioning - org use PR as a way to achieve a competitive corporate identity
- Comm professionals have the role to shape an org’s brand, which can be conveniently
“positioned” within the minds of stakeholders
[+] PR become a crucial strategic tool for org to be more profitable
[-] stakeholders are considered passively, as receivers of messages that can easily be controlled and
managed
2000s
Stakeholder Engagement - thanks to new media, stakeholders become real participants in an org’s PR
- Old principles of strategic comm still apply, but the relationship with stakeholders becomes a
dialogue rather than a one-directional comm
[+] stakeholders can be “activated” and become advocates for the org
[-] org will be held to substantially higher standards of transparency and genuine behavior
Today… main challenges?
- PR is more complex, technical and precise
- Divided into different areas, require different talents and specializations
- Driven by technological changes (new media)
, 3
Lecture 2: Stakeholder Communication
Identifying stakeholders
Stake = right to land = option to hunt
→ In modern language, stake is symbol for having an interest (monetary or otherwise)
Stakeholder - any group or individual who can affect or is affected by the achievement of the
organization’s purpose and objectives
Primary stakeholder - individuals who immediately affect or are affected by your actions
→ employee, consumer, investor, partner, supplier, community…
Secondary stakeholders - individuals who more broadly affect or are affected by your actions
→ government, media, environmental groups…
Strategic management - Engaging with stakeholders [models]
1. Input-Output Model (older version of SM)
- Theory: Neo-Classical Economic
- Main objective: maximise profits
- Assumes that the value of the org is a pie, only the interests of those who own a slice should
matter (who has some pie)
- Also called Share-holder model
2. The Stakeholder Model
- Theory: Socio-Economic
- Main objective: mediate between interests
Comparing models of strategic management
Input-Output Model Stakeholder Model
1. Stakeholders depend on organization 1. Mutual dependence between organization
and stakeholders
2. Only shareholders are considered 2. Equal importance of shareholders and
legitimate stakeholders
Reasons for relations: Reasons for relations:
Instrumental - a means to an end Instrumental - …
Normative - right thing to do
, 4
Engaging with stakeholders
How to interact?
How to classify their importance?
- Network of stakeholders grows, difficult to knoe who has more importance
- Especially when approaching entire industries (H&M)
Examples:
- Deliveroo strikes in Italy and France
- BP Oil Spill in Mississippi, 2010
The stakeholder salience model [attributes]
Low salience: GREEN - only one attribute → latent
→ discretionary, demanding, dormant (1, 2, 3)
Moderate salience: YELLOW - two attributes → expectant
→ dominant, dependent, dangerous (4, 5, 6)
High salience: RED - all three attributes → most important
→ definitive (7)
[8] non stakeholder…
Stakeholder engagement as comm design practice
Stakeholder engagement and CSR
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