In a global economy it is important for an organisation to manage the flow of information in order to keep stake holders updated at all times. In the case of a publicly traded company there is no excuse in keeping customers and shareholders in the dark in times of crisis.
Yet, even multinational companies that have mastered the art of public relations, they can still be criticised for using public relations solely for reputation management. Although many companies are aware of the power of public relations to alter public perception it is erroneous to say that it is only useful for reputation management.
A Critical View of Pubic Relations
On April 20, 2010 a methane gas escaped several metres deep from a BP oil rig off the Gulf of Mexico and caused an explosion that killed eleven people and dumped millions of gallons of crude oil into the sea.
One can just imagine the impact to the environment, the coastal communities, and thousands of people who depended on natural resources for their livelihood. BP oil’s public relations team had to work round the clock to disseminate information, answer questions and win the hearts and minds of the people closest to the site of the accident.
In the aftermath of the disaster stake holders had to re-evaluate the way they perceive the company. Public relations officers have a crucial role to play immediately after the explosion, in the battle to stop the flow of oil and in the clean-up operations that has to be done afterwards.
A public relations team has to work hard to deal with the problem even after the incident fades away from the consciousness of the general public. It is imperative for the public relations team to do their work but there are those who will always view them in a negative light.
According to experts in the field of PR work, “the term ‘public relations’ is often either misunderstood or deliberately misinterpreted, so that it is used in a pejorative way, associating it with propaganda, ‘economy of truth’ or evasion.”
This negative view of public relations is the result of decades of PR manoeuvring that has the masses reeling from the brazen cover-ups and manipulation of half-truths initiated by erring companies and unscrupulous individuals desperate to silence their critics.
“There are some individuals, often highly placed in industry, who expect public relations to be used as a tool for whitewashing reputations, or for covering up acts of ineptitude or dishonesty.”
As a result it is easy for people to be cynical every time a company announces an upcoming activity that seems to appear as an obligatory act to spruce up the company’s image and not because it is to give back to the community and help those who are in need.
The same reaction was observed when the IBM Corporation launched their Corporate Service Corps (“CSC”) and tapped the company’s public relations officer to release the following statement: “IBM wanted to market itself as a company that people and society could trust.”
The purpose of the CSC is to select and train IBM’s best crop of corporate leaders and send them to Third World countries to serve as resource personnel working in conjunction with partner agencies. IBM can do whatever it wants when it comes to maximising the company’s resources but the last statement given by their communications officer can be easily misconstrued as nothing more than a PR scheme.
Cynicism of this kind is expected considering the increased awareness when it comes to Corporate Social Responsibility and the pressure to give back to the community is now part of corporate policy. It seems that the public wanted a more genuine response to the needs of the community and not just a PR stunt designed to enhance the company’s image.
Although it can be said that companies use public relations to its advantage it is erroneous to say that public relations strategies are all about reputation management.
Public Relations is not Reputation Management
A competent public relations officer is not only concern about his or her company’s reputation but also on “the identification and analysis of the impact of events, issues, new developments, competitor activity and policy changes on the public perception of the organisation’s business, goals or reputation.”
Another way to look at it is the use of public relations work as a means of anticipating problems when it comes to how the public perceives the company. Thus, the company cannot be accused of manipulating half-truths but proactive in telling stake holders and shareholders about the truth regarding an issue or problem.
In theory, firms are supposed to be proactive and always thinking of ways on how to avoid situations where the company’s image becomes unattractive to investors and customers.
But most of the time a well-conceived public relations strategy is a knee-jerk response to a crisis and aptly described by one commentator who wrote that it is a mere “…product of turbulent criticisms and the changes that an angry public seek to impose on business policies and practices.”
In reality consumers are dissatisfied with how firms deal with their complaints and how corporations are oblivious to the simmering discontent felt by many.
The correct attitude as suggested by Ronald Smith is to, “…anticipate emerging issues and respond to them before they get out of hand.” Smith adds that any organization willing to practice correct “issues management” must be prepared for potential change.
Public Relations is all about Communication
The company has to keep providing information. If the public relations officer is not doing his work then critics will do it for him. A good example of being one step ahead of negative press is to anticipate the needs of the public and assure them that the company is being responsible and not neglecting its duty to provide high-quality products and services.
One example is the superb handling of the salmonella problem encountered by Nippy Juice an Australian-based company. In 1999 it was embroiled in a scandal where at least 400 hundred people purchased and consumed Nippy’s juice that was contaminated with salmonella. The company agreed to pay 400 hundred people around two to four thousand dollars each.
The payment was just the tip of the iceberg in the whole strategy to combat the scandal and it was revealed by their lawyer Peter Humphries who said: “Well I don’t know that they were asking for anything in particular other than to be fairly compensated, and it lines up pretty well with a settlement scheme involving Kraft Food, who had some salmonella claims rising out of peanut butter two or three years ago.
And this is comparable to that.” This was a good move on behalf of the company.Corporate leaders work closely with public relations officers not only to save the company image but also to coordinate an appropriate response in the event of a crisis. Another example of how teamwork with public relations officers can avert a potential disaster can be observed in how Johnson & Johnson dealt with their Tylenol problem.
According to one report “In September of 1982 there were several people that died from the use of Tylenol capsules that were laced with cyanide.” A closer look at this case reveals that this is a work an unknown person who deliberately opened the capsules and mixed the said poisonous substance with the drug. Therefore Johnson & Johnson was actually blameless with the death of seven people.
Just like Nippy’s Juice, Johnson & Johnson decided to become proactive in dealing with the problem at hand. The first thing that they did was to issue a recall of all Tylenol capsules at a cost of $100 million.
What is more amazing though is that looking back there was probably no threat in other cities and that it was only an isolated case. Johnson & Johnson did not stop there, they quickly offered to exchange capsules with tablets.
Then they went one step further and two months later, “…Tylenol was reintroduced in triple-sealed, tamper-resistant packaging.” In short Johnson & Johnson was able to turn disaster into a marketing campaign for a much improved product.
Nippy’s Juice and Johnson & Johnson could not have turned around a major crisis into something that benefited the company in the long run without the help of public relations officers.
It is time to acknowledge the importance of public relations. According to seasoned veterans in the field of PR work, “Public relations is a complex profession… it is also a powerful one that is growing and, to an extent, gaining respect throughout the world today.” It must not be limited to reputation management.
Conclusion
A public relations officer must be adept when it comes to developing short and long-term communication plans. A public relations officer must respond to emerging issues and at the same time respond to enquiries from customers, constituents or investors.
In other words public relations is a constant flow of information created for the general public as well as for stake holders desiring to be updated with regards to a company that they care about deeply or an organisation that has the potential to change their lives in the most profound way.
A public relations officer must not only be skilled when it comes to the above-mentioned competencies but also has a passion to do what is right and to accomplish it in the most excellent manner. Finally, public relations must not be limited to reputation management.
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