CHAPTER 17: CORPORATIONS
OBJECTIVES
After reading this chapter students should be able to:
1. Describe the role of public relations in corporations.
2. Explain how media relations contributes to the success of corporations.
3. Understand the crucial roles of the customer, the investor, and the employee in the
corporate communication program.
4. Describe the main supportive functions of public relations for corporate marketing
efforts.
5. Explain the environmental relations process.
6. Define corporate philanthropy and the part public relations plays in corporate
giving.
SUGGESTED PROJECTS AND DISCUSSION
This chapter emphasizes the environmental context in which a corporation operates. Public
relations activity is portrayed as more than just communications; it is the essential
monitoring of issues and public concerns that can affect a company’s future and
profitability. Several in-depth case studies contrast effective corporate public relations with
other corporations that have committed public relations blunders.
1. Corporate social responsibility (CSR) is a priority area in corporate public relations
as it closely relates to a company’s reputation. Ask students to brainstorm ways in
which a corporation can demonstrate social responsibility to gain public credibility
and trust. Providing examples of CSR efforts may help facilitate the discussion;
some examples can be found at the following websites:
• Starbucks – http://www.starbucks.com/aboutus/csr.asp,
• Cisco – http://www.cisco.com/web/about/citizenship/index.html,
• Gap – http://www2.gapinc.com/GapIncSubSites/csr/
• KPMG –
http://www.kpmg.com/Ca/en/IssuesAndInsights/ArticlesPublications/Pages/K
PMGsSocialResponsibilityReport2008.aspx
2. Customer relations is one of the many important aspects of corporate public
relations. Product recalls have the potential to upset customers making it difficult to
keep customers satisfied and loyal to a product or service. Following the advice
provided in the book, have students respond to the scenario below. Students should
be specific about a course of action and how it would be implemented.
As the Public Relations Manager for a cereal manufacturer, you were just informed
by a grocer that a customer found metal filings in her cereal. You check with the
production vice president, and after some hesitation, he admits that a workman
accidentally dropped some metal filings into an empty mixing tank while doing
some routine repair work.
The vice president is sure only one mixing tank was involved, and he is also
concerned that company sales will decline if the public finds out about the accident.
He suggests that things be kept quiet. As the public relations director, what would
you recommend to the company president as a course of action?
3. Separate the class into two different groups. Assign one group with the
responsibility of researching the best corporations to work for and assign the other
group with researching the worst corporations for work for (Fortune magazine
publishes this information every year
http://money.cnn.com/magazines/fortune/bestcompanies/2013/). Discuss the
reasons cited for these ratings and the implications that the ratings may have on the
company’s success.
4. Stage a debate on corporate efforts to reach diverse markets. Have half of the class
represent the corporate audience that sees the value in reaching out to growing,
diverse consumers and have the other half of the class represent the audience
criticize the bilingual efforts in education and marketing because it supports illegal
immigration. Encourage students to recognize both perspectives.
5. Marketing communication efforts for corporations are accomplished in many ways,
including product publicity, cause-related marketing, corporate sponsorship,
environmental relations, and corporate philanthropy. Have students outline a
marcom plan for Williams-Sonoma, Inc. (brands include Williams- Sonoma,
Pottery Barn, West Elm, and Williams-Sonoma Home).
6. A point is made in the text that public relations people and reporters have mutual
complaints about each other. An interesting panel might consist of a public relations
professional and a local news reporter discussing what’s “right” and “wrong” with
the business-media relationship.
7. Show a clip from the movie/documentary “Super–Size Me,” one that especially puts
the McDonald’s fast food chain in a negative light. Describe McDonald’s reactive
tactics. What are the students’ reactions to the clip, and what are recommendations
to the fast-food industry on more proactive, educational tactics similar to what
cigarette and alcohol companies are doing.
CASE ACTIVITY: PR IN MAQUILADORA ZONE FACTORIES
To begin this new assignment, some serious research on your new employer is in order.
Start by examining its reputation and track record with respect to corporate social
responsibility (CSR), and relations with key stakeholder groups including the media, the
community, employees, and governments in both countries. You will also need to research
the individual communities in which each of the four plants is located, to encompass
language, customs, socioeconomic status, and religion. How might each of these factors
affect one’s approaches in dealing with employees, community members, and the media?
The “to do” list must also include a firm plan to set aside considerable time for visits to all
of the plants and their surrounding communities. This would mean actually speaking with
managers, workers, shopkeepers, and local government officials.
Only once the above tasks are completed can you add public relations planning to your “to
do” list. Based on what you have learned in your research stage, you should be in an
informed position to set goals, objectives, strategies, and tactics for public relations
programs.
ANSWERS TO QUESTIONS FOR REVIEW AND DISCUSSION
1. What is the concept of corporate social responsibility (CSR) and why is it
important to today’s corporations? What is the role of public relations professionals
in CSR?
2. Why is trust in corporate leadership important? Is such trust increasing or
decreasing? Why?
3. Why is it important for corporate executives to have a good relationship with the
mass media? How can you as a PR professional facilitate that relationship?
4. Why is it important for companies to consider diversity in their marketing and
public relations strategies?
5. If an activist group has called for the boycott of a particular company’s products,
would you be inclined to stop buying the company’s product? Why or why not?
How would you respond to a boycott if you are doing public relations for the target
company?
6. Why is employee relations so important to a company’s image and reputation?
7. How should a company tell its employees about a layoff?
8. Give some examples of product publicity and product placement.
(pgs. 466-467) Product publicity: Old Bay Seasoning sponsors shrimp eating
9. What are some of your favorite examples of cause-related marketing? Do you buy
products linked to causes? Why or why not?
10. Why is corporate sponsorship of concerts, festivals, and even the Olympics
considered a good marketing and public relations strategy?
11. Corporate philanthropy is now strategic. Do you think all this makes corporate
philanthropy too self-serving? Why or why not?
