Management Chapter 19 Homework Page Managing The Public And The Corporate Reputation Introduction How The

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CHAPTER 19

MANAGING THE PUBLIC AND THE

CORPORATE REPUTATION

INTRODUCTION

How the general public perceives a business firm can have a major effect on its

performance and its ability to remain in business. Therefore, building a positive public

reputation for providing superior products or services is of great importance. Most

companies employ many people to help establish and maintain a good reputation. Their

PREVIEW CASES

Pepsi and the Black Lives Matter Movement and

21st Century Fox and sexual harassment

Both the Pepsi and 21st Century Fox examples illustrate the importance of maintaining a

good reputation with the public. In an era when information travels at lightning speed

through both conventional channels—television, radio, and newspapers—as well as

social media outlets—blogs, websites, Twitter, e-mails, and others—reaching thousands,

if not millions, of people, reputations can be lost in an instant. While businesses seek

CHAPTER OUTLINE

I. THE GENERAL PUBLIC

Teaching Tip: The General Public

There are numerous issues important to the public that involve

businesses. One of these issues is childhood obesity but there are many

sources to identify some of these current issues.

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II. WHAT IS REPUTATION?

A. Why Does Reputation Matter?

III. THE PUBLIC RELATIONS DEPARTMENT

A. Public Relations in the Internet and Social Media Age

IV. BRAND MANAGEMENT

V. CRISIS MANAGEMENT

VI. ENGAGING KEY STAKEHOLDERS WITH SPECIFIC TACTICS

A. Executive Visibility

B. User-generated Content

Teaching Tip: Crisis Management

Are there recent examples of a business crisis in your region or

nationally in the news? Students could analyze these examples and

compare them to examples presented in the chapter. Or, have the

students carefully analyze the Wendy’s crisis management response, as

Teaching Tip: Why Does Reputation Matter?

Students might want to poll other students at their school to see which

firms have the best and worst reputation. The survey could go outside

the school to people on the street, or people students work with, or

family members. The differences, or similarities, might be interesting

Teaching Tip: Executive Visibility

Ask students “who are the most visible executives in your region?”

“Why are they visible, because of a tragedy at their company or for

good works in the community?” “Does an executive want to be visible

or stay behind the scenes?”

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C. Paid Content

D. Event Sponsorship

E. Public Service Announcements

F. Image Advertisements

GETTING STARTED

KEY LEARNING OBJECTIVES

LO 19-1: Recognizing why the general public is an important organizational

stakeholder.

LO 19-2: Understanding what constitutes a good corporate reputation and why it is

important.

LO 19-3: Knowing the basic elements and activities of a firm’s public relations

department.

Teaching Tip: Event Sponsorship

Students could engage in an exercise where they are planning an event

Teaching Tip: Image Advertisements

Students can search the web or print magazines to locate examples of

image advertisements. Are the advertisement campaigns positive or

views?

prior written consent of McGraw-Hill Education.

LO 19-4: Assessing how brand management can best manage a firm’s reputation.

Effective brand management helps increase the perceived value of a product line or

LO 19-5: Evaluating a firm’s crisis management plan as an effective tool for

handling an unexpected situation.

LO 19-6: Recognizing tactics that enable businesses to engage with the general

public and other stakeholders to enhance the firm’s reputation.

Business organizations can influence or change their reputation through a variety of

prior written consent of McGraw-Hill Education.

general public

image advertisements

media

paid content

INTERNET RESOURCES

www.adcouncil.org The Ad Council

https://aipmm.com The Association of International Product

Marketing & Management

https://americanmediainstitute.com American Media Institute

www.fcc.gov U.S. Federal Communications Commission (FCC)

DISCUSSION CASE

UNITED AIRLINES – NAVIGATING A SOCIAL MEDIA STORM

prior written consent of McGraw-Hill Education.

1. What was the impact of the incidents described in the case on United Airlines’

reputation?

2. Did these incidents impact the firm’s corporate identity or corporate image, or

both, as described in the chapter?

3. Did these incidents constitute a crisis, as defined in the chapter?

4. Did United Airlines engage in effective crisis management, and why or why not?

If you were the public relations manager at United Airlines, what steps would

you have recommended the company take when these incidents occurred?

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5. What should the company do now to regain its customers’ trust?