This document contains summaries from " Consumo business studies textbook" which summarizes the role and purpose of public relations; public relations stakeholder - internal & external; the process of public relations;
Chapter 9
• Public relations:
- The role and purpose of public relations.
{PR} Public relations is about management of communication between the business and
stakeholders.
PR. promotes open communication channels between the different stakeholders by being proactive.
The purpose of PR. Is to change people’s perceptions and attitudes towards the business and to
create a positive image of the business.
PR. is sometimes referred to as reputation management.
For public relations to be successful it has to be:
➢ Planned.
➢ Deliberate.
➢ Management function.
➢ Two – way communication.
➢ Promote performance.
➢ Be in the interest of the public.
• Planned:
- PR. Communication should be clear and unambiguous.
- The PR function should be aware of all internal and external factors
that could affect communication and then plan the communication
activities to generate positive change.
• Deliberate:
- communication with stakeholders does not take place “by accident”.
- It gains understanding of stakeholder’s perceptions.
- It influences the desired group of people.
- Feedback can be collected so that business knows what must be done.
- PR. Should be systematic to ensure all research is undertaken before processes
start.
• Management function:
- PR. Should be part of the business strategic planning.
- PR. Is a tool that can be used to assist management with problem – solving.
- PR. Can help business deal effectively with conflict in order to ensure day –
to – day functioning.
- PR. Creates a positive image for the business both internally and externally.
, • Involve two – way communication:
- Vital for business to listen to stakeholders concerns or demands and that the
business responds in an effective manner.
• Promote performance:
- The PR department ensures that the business policy is properly communicated and
understood by everybody.
• Be in interest of the public:
- PR. Ensures stakeholders understand that business activities are of mutual benefit to
the business and themselves.
• Public relations stakeholders
- Internal stakeholders:
➢ Employees and the trade unions represent them, are seen as internal stakeholders.
➢ The business cannot control what the employees say about the business.
➢ Shareholders are the owners of the business.
➢ They are considered internal stakeholders.
➢ It is important that shareholders are kept up to date with important developments and/or
changes in the business that may affect the share price.
• External stakeholders
- External stakeholders may include:
➢ The media, reports on activities of the business either in a positive or negative
manner.
➢ Customers, who use the product/service.
➢ Suppliers, who is involved in the supply chain.
➢ The image of distributors, of the product could impact on the public’s image of
the business.
➢ Political officials, are role players in the legislative process of the country.
➢ The broader community, expects business to become involved in CSR to uplift
them.
➢ Financial institutions, from which the business has borrowed money.
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