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Page 19-1
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.
Page 19-2
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?”
Page 19-3
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?
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
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
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
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
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
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?
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
5. What should the company do now to regain its customers’ trust?
