Defining Public Relations

Part I: Evolution
Chapter 1: Defining Public Relations
Copyright ©2014 by Pearson Education, Inc. All rights
reserved.
1
Learning Objectives
To define the practice of public relations and underscore its
importance as a valuable and powerful societal force in the 21st
century.
To explore the various publics of public relations, as well as the
field’s most prominent functions.
To underscore the ethical nature of the field and to reject the
notion that public relations practitioners are employed in the
practice of “spin.”
To examine the requisites - both technical and attitudinal - that
constitute an effective public relations professional.
reserved.

2
Opening Example: Bin Laden’s Public Relations Concerns
Improve news media coverage
The accuracy of his place in history
Al Qaeda’s image (contemplated name change with religious
ring)
Al Qaeda attacks on Muslims in Muslim countries
reserved.
3
Learning Objective 1
To define the practice of public relations and underscore its
importance as a valuable and powerful societal force in the 21st
century.
reserved.
4
Prominence of Public Relations

Social media and public relations have revolutionized the way
organizations/individuals communications with their publics
around world.
Example: “Arab Spring” of 2011 – demonstrations, PR messages
on social media – brought down rulers from Tunisia, Egypt,
Libya, Yemen – Combined, organized, communicate –
awareness
Figure 1-2 (Photo: ZUMA Press/Newscom)
reserved.
5
Multibillion-dollar business in the United States
320,000 professionals; 21% employment growth expected from
2010 to 2012
International Public Relations Association – strong membership
in 80+ countries
250 U.S. colleges and universities offer public relations
sequence/degree
U.S. government has thousands of communications
professionals
Trade associations have strong membership
reserved.

6
Ownership: Media Conglomerates – Omnicom, The Interpublic
Group and WWP Group;
Typical PR Agency revenue less than $1Million
21st Century – nonprofits, government, religious institutions,
sports teams, arts, etc. must tell their stories, so business will
thrive.
PR people write books, appear on TV, and are quoted –
Other fields that encroach PR – lawyers, marketers, general
managers, - want management access.
What is Public Relations?
PRSA’s 2012 definition
“Public relations is a strategic communication process that
builds mutually beneficial relationships between organizations
and their publics”
reserved.
8

Seitel’s definition
“Public relations is a planned process to influence public
opinion, through sound character and proper performance, based
on mutually satisfactory two-way communication.”
reserved.
9
Edward Bernays – 1923 to describe his practice –
Information given to the public, persuasion directed at the
public to modify attitudes and actions, and efforts to integrate
attitudes and actions of an institution with its publics and of
publics with those of that institution.”
Foundation for Public Relations Research and Educations –
1975 conducted a study 472 definitions – 88 words
“Public relations is a distinctive management function which
helps establish and maintain mutual lines of communications,
understanding, acceptance, and cooperation between an

organization and its publics; involves the management of
problems or issues; helps management to keep informed on and
responsive to public opinion; defines and emphasizes the
responsibility of management to serve the public interest; helps
management keep abreast of and effectively utilize change,
serving as an early warning system to help anticipate trends;
and uses research and sound and ethical communication
techniques as its principal tools.”
Research, planning, communications dialogue, and evaluation,
are all essential in the practice of public relations;
Key – no matter which definition – to be successful, PR
professional must always engage in a planned and ethical
process to influence the attitudes and actions of their target
audiences.
reserved.
12
Planned Process to Influence Public Opinion
John Marston’s R-A-C-E

Research-Action-Communication-Evaluation
PR = Performance Recognition
Sheila Crifasi’s R-O-S-I-E
Research-Objectives-Strategies-Implementation-Evaluation
R-P-I-E
Research-Planning-Implementation-Evaluation
What do the models have in common? How do they differ?
Management and Action
reserved.
13
Planned Process to Influence Public Opinion
Melvin Sharpe’s Five Principles – PR Process
Honest communication (credibility)
Openness and consistency of actions (confidence)
Fairness of actions (reciprocity and goodwill)
Continuous two-way communication (prevent alienation, build
relationships)
Environmental research and evaluation (determine actions or
adjustments needed for social harmony)
Janice Sherline - Jenny’s description: “the management of
communications between an organization and… its publics”
reserved.

14
Public Relations as Management Interpreter
Every organization has public relations
Public relations professionals:
Interpret philosophies, policies, programs, practices of
management to public
Convey attitudes of public to management
Counsel Management
Advise Management
Recommend Action
reserved.
15
Public Relations as Public Interpreter
Learn about what public really thinks
Let management know
Examples:
GM’s Corvair, Ralph Nader unsafe at any speed
Mobil Oil in the 1970’s – gas/oil prices – purchases
Montgomery Ward store
Hurricane Katrina – Bush didn’t respond quickly
reserved.

16
PR Ethics Mini-Case: Firing the Nazi in the House of Dior
John Galliano asked to leave Dior after anti-Semitic remarks
hurt firm credibility (Page 10)
What other options did Dior have beyond firing Galliano?
Do you agree with the categorical decision made by the House
of Dior?
Figure 1-4 (Photo: MAYA VIDON/EPA/Newscom)
reserved.
17
Can you think of a recent case in which an organization was not
correctly interpreting public views?
What were the consequences?
Now it’s your turn……
reserved.

18
To explore the various publics of public relations, as well as the
field’s most prominent functions.
reserved.
19
The Publics of Public Relations
Public relations should be publics relations
Internal and external
Primary, secondary and marginal
Traditional and future
Proponents, opponents and uncommitted
reserved.
20
The Functions of Public Relations

Writing
Media relations
Social media interface
Planning
Counseling
Researching
Publicity
Marketing communications
Community relations
Consumer relations
Employee relations
Government affairs
Investor relations
Special publics relations
Public affairs and issues
Crisis communications
reserved.
21
Discussion Question
If you were the public relations director of a non-profit
organization, whom would you consider your most important
“publics” to be?
reserved.

22
To underscore the ethical nature of the field and to reject the
notion that public relations practitioners are employed in the
practice of “spin.”
reserved.
23
The Sin of Spin
Spin ≠ Public Relations
Mild: Interpret issue to sway public opinion (e.g. positive slant
on negative story)
Virulent: Confusing, distorting, or obfuscating the issue or
Lying
Antithetical to proper practice of Public Relations
Public relations cardinal rule: Never, ever lie.
reserved.

24
Discussion Question
How do professional public relations people regard the aspect of
“spin” as part of what they do?
reserved.
25
To examine the requisites - both technical and attitudinal - that
constitute an effective public relations professional.
reserved.
26
Diversity of experience
Performance
Communications skills
Relationship building
Proactivity and passion

Teamliness
Intangibles, such as personality, likeability, and chemistry
reserved.
27
Desired Technical Skills
Knowledge of the field.
Communications knowledge.
Technological knowledge.
Current events knowledge.
Business knowledge.
Management knowledge.
reserved.
28
Desired Attitudinal Requisites
Pro communications.
Advocacy.
Counseling orientation.
Ethics.
Willingness to take risks.
Positive outlook.

reserved.
29
Discussion Question
What are the technical and attitudinal requisites most important
for public relations success?
reserved.
30
Case Study: BP’s Loose Lips Sink Credibility Ship
Page 18
How would you assess BP’s response to the Gulf of Mexico oil
spill?
How could BP have prevented the damage done by its CEO
spokesperson?
Had you been advising Hayward, what would you have
suggested he say in response to the questions he was asked?
Figure 1-6 (Photo: Newscom)
reserved.

31
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of
the publisher. Printed in the United States of America.
reserved.
reserved.
Chapter 1
Reputation Management
Based on information from Doorley, J., & Garcia, H. F. (2015).
Reputation management:
The key to successful public relations and corporate
communications (3rd edn.).
New York: Routledge. © Taylor & Francis 2015

1
Reputation
© Taylor & Francis 2015
Warren Buffett: “If you lose dollars for the firm by bad
decisions I will be very understanding. If you lose reputation
for the firm, I will be ruthless.”
Warren Buffett: “It takes 20 years to build a reputation and five
minutes to ruin it. If you think about that, you’ll do things
differently.”
Benjamin Franklin – Architect of American: It takes good deeds
to build a good reputation, and only one to lose it.”
Many CEO and other leaders have echoed a similar mantra that
“Reputation is our most important asset.” But why do so many
of them let the asset be trashed? GM-Ignition switch defect;
An unmanaged asset will decline in value over time, inevitably
moving to the liability column, and this is one reason for the
decline in corporate reputation. - Corporations have risk and
crisis management framework in place but few have a process
in place to management the reputation asset.
Reputation
Reputation is a corporate of substantial and measurable value.
The view that it is an intangible asset is not a constructive
perspective. (i.e., derived by inference; implied by operation of
law; not obvious or explicit.

"constructive liability"
Companies with better reputations attract more and better
employees, pay less for goods and services, accrue competitive
advantages and can charge more for their own products (i.e.,
Apple). Settled – Reputation is a tangible asset.
World’s most admired companies http://fortune.com/worlds-
most-admired-companies/
2015 Reputation Dividend Report – indicated that the
reputations of the Standard and Poor’s (S&P) 500 companies
accounted for higher percentage of the combined market cap of
those companies.
http://www.reputationdividend.com/files/1514/3515/4447/US_2
015_Reputation_Dividend_Report_-_Final.pdf
Reputation
Reputation can be managed. Companies that have a process in
place rank higher.
Some companies are undervalued on certain drivers of
reputation (i.e., long term investment value or corporate social
responsibility - addressed through targeted communication
strategy. Other companies are overvalued on such drivers,
which represents a performance or a behavior challenge.
To manage the components of reputation – performance,
behavior, communication and intrinsic identity (what the
organization stands for) is to manage the whole.
By Managing relationships with groups and individuals that
have a stake in the company is to manage the sum of those

relationships – something called reputation.
If in place GM – no problems
Conference Board – CEO – For driving enterprise growth &
performance, reputation among their top five strategies.
Reputation
“The sum of the images the various constituencies have of an
organization”—Charles Fombrun
Reputation = Sum of Images = Performance + Behavior +
Communication
People – social capital (networking) helps them build
relationships and careers, Corporations and other organizations
develop reputational capital that helps them build relationships
and grow their organizations.
5
An Equation for Reputation
6
Reputation
Behavior

+
Performance
Communication
Benefits of Reputation
Image=stakeholders-customers, employees, consumer, feel good
about a company – make it through good & bad times.
Reputation adds value to a company. Market capitalization (#
outstanding shares x price per share) is often greater than just
the book value or liquidation value of assets. Market
capitializaion/repuational capital – concept related to goodwill.
7
Tangible
Intangible - Soft
Intangible - Soft
Historic view – Soft
Like all assets – a building or a product – reputation has its
liability side.
You must measure, monitor, and establish a plan for managing
both the reputation assets and vulnerabilities/ liabilities.
Most important thing is to have a plan.
“If you don’t know where you’re going, any road will take you
there.”

Reputation
Few companies take a rigorous, quantifiable approach to
reputation management – measuring, monitoring and managing
reputation assets and liabilities – (i.e. should be a part of asset
management). W/O opportunities missed and problems become
magnified.
Proactive behavior and communications consist of
measurement, acknowledgement and planning – builds
reputational capital. Formula - R=P+B+C – (individuals and
organizations) – reputation is cumulative.
Corporate Character
The Arthur W. Page Society – Corporate Communication Model
General Electric’s corporate character
Defining corporate character—advocacy at scale
Keys to success
Define your company’s corporate character
Engage internal stakeholders as authentic advocates
Determine how you communicate your corporate character
externally and micro target your audiences
Activate the appropriate elements of engagement that reach your
core audiences in an authentic way.
Remain open, transparent and true to your corporate character
through all your communication.
A company must define and know itself. Corporate Character
must be at the center. – Unique purpose, beliefs, mission and

values that are at the center. Page 8
10
Intrinsic Identity
Definition
What the organization stands for, above all else
Examples
Johnson & Johnson
General Electric
Starbucks
Lehman Brothers 2008
Catholic Church 2002
The New York Times
GE/Starbucks – True to dominant identity; develop & market
consumer and technology products of the highest quality, best
people. Starbucks proclaim the ideals of mutually beneficial
and profitable relationships w employees and communities.
CEO – quality product vs. sales dominant identity is sales quote
– exists a prescription for disaster.
11
Measuring Reputation:
Harris–Fombrun Reputation Quotient
Evaluates reputation among “multiple audiences,” according to
twenty attributes
Grouped into what are referred to as “dimensions of reputation”
Products and services
Financial performance
Workplace environment
Social responsibility
Vision and leadership
Emotional appeal

Can Reputation Be Managed?
Scholars – defined reputational capital as the difference,
averaged over time, between market capitalization and the
liquidation value of assets.
Market Capitalization “refers the total dollar market value of a
company's outstanding shares. Commonly referred to as "market
cap," it is calculated by multiplying a company's shares
outstanding by the current market price of one share” -
Liquidation value of assets “is the total worth of a company's
physical assets when it goes out of business or if it were to go
out of business. Liquidation value is determined by assets such
as the real estate, fixtures, equipment and inventory a company
owns.
13
“Intangible Asset”:
The Wrong Perspective
Many organizations view reputation as something “soft”
Reputation does have real, tangible value
Reputation has liabilities, too
Must have a plan for managing both assets and liabilities
14
Five Strategies for Reputation Building

Target key areas that really matter to your organization
Target the leaders but do not stop there
Identify the emerging players
Use your organizational resources
Always be the first to tell the “news” to your constituency—
particularly if it is bad news
Measuring Reputation Value
Simon Cole and Sandra Macleod
Data definition and capture
Economic analysis
Individual company outputs
Contribution
Risk profile
Leverage
Market behavior
Comprehensive Reputation Management (CRM)
A long-term strategy for measuring, auditing, and managing an
organization’s reputation as an asset - (applied to major areas
of an organization – finance, HR, investor relations,
manufacturing, marketing & pr.)
Comprehensive Reputation Management is to reputation what
risk management is to other assets; brand management
(marketing value of product/name); corporate identity
(institutional advertising)
Risk management is the process of identifying, quantifying, and
managing the risks that an organization faces. As the outcomes

of business activities are uncertain, they are said to have some
element of risk. These risks include strategic failures,
operational failures, financial failures, market disruptions,
environmental disasters, and regulatory violations.
17
Components of Comprehensive Reputation Management
Customized reputation template-measurement tool. Specific to
each organization
Reputation audits of internal and external constituencies
Reputational capital goals
Accountability formula
Reputation management plan
Annual follow-up audit and assessment
2) 1st/Audit - employees vs. mgmt – intrinsic value (what
company stands for) –gap between two views; 2nd/Audit how
external view organization and sum of those constituency
images constitutes reputation. Gap between identity and
reputation is analyzed, create plan to converge the two. 3)
performance against industry or competitor (measure, monitor,
manage); 4) making adjustment if slipping; 5) the deliverable –
a strategic performance, behavior + communication plan for
converging identity and reputation – plan to move images
various constituencies hold about the organization closer to
intrinsic identity.
18
Components of Comprehensive Reputation Management
Stakeholder Overview - 2 pages – A key component of the
copyrighted CRM list for the organization’s main stakeholders
(seven to ten for a large organization) the opportunities,
vulnerabilities, goals, and strategies.

2) 1st/Audit - employees vs. mgmt – intrinsic value (what
company stands for) –gap between two views; 2nd/Audit how
external view organization and sum of those constituency
images constitutes reputation. Gap between identity and
reputation is analyzed, create plan to converge the two. 3)
performance against industry or competitor (measure, monitor,
manage); 4) making adjustment if slipping; 5) the deliverable –
a strategic performance, behavior + communication plan for
converging identity and reputation – plan to move images
various constituencies hold about the organization closer to
intrinsic identity.
19
Pushmi-Pullyu Metaphor
https://www.google.com/search?q=pushmi+pullyu+toy&oq=pus
hmi&aqs=chrome.4.69i57j0l5.7471j0j4&sourceid=chrome&ie=
UTF-8
https://www.google.com/search?q=pushmi+pullyu+toy&oq=pus
hmi&aqs=chrome.4.69i57j0l5.7471j0j4&sourceid=chrome&ie=
UTF-8
Solution
:Pushmi/Pullyu – Entire organization behave and act as one.
Remember Doctor Dolittle’s Pushmi-Pullyu Syndrome? In

corporations, we see this mythical creature when there’s a
disconnect between the company’s behavior and its
communication. Always blames PR/Communication, not
performance. “How does it make up its mind.” The
performance head is turning saying one thing and they expect
the communication head to turn saying something else.
20
Behavior / Performance
Communication
Edelman Public Engagement Model
Democratic and decentralized
Inform the conversation
Engagement with influencers of all types
Reputation is built on policy and communication

Reputation Mismanagement
Reputation
Performance
Behavior
Communication
Lessons From Financial Crisis
Arcane financial instruments, massive greed Real Estate/Banks
collaborated to sell property to people who could be expected to
pay for it.

Performance Failure: Property value and other economic
indicators fell so did the reputations.
Behavior Failure: Economy down, executives compensation
continued to rise. – Occupy Wall Street 2012
Communication Failure: Was Communicators consulted 2008
when CEO’s took their private jets to Washington.
Identity Failure: Bank made loans only to people who could
repay; that changed in 1980s.
One bank after another started making loans on the prospect
that the properties offered as collateral would appreciate. Often
banks sold the dangerous loans to toehr banks, absolving the
original lender of vulnerability.
23
Ten Precepts of Reputation Management
Know and honor your organization’s intrinsic identity –
Multiple identities (quality products, competitive, etc.) must be
compatible and one must be dominant.
Know and honor your constituents (Red Cross)
Build the safeguards strong and durable, for they are the
infrastructure of a strong reputation

Beware the conflict of interest, for it can mortally wound your
organization
Beware of the “CEO Disease,” because there is no treatment for
it
3) US Federal Reserve Chairman, Alan Greenspan maintains
that greed was the root cause of most business scandals and
weak safeguards let the greed flourish. Moral: Strong, efficient
safeguards, internal/external-company’s best interest;
24
Ten Precepts of Reputation Management, cont’d
Beware of organizational myopia, for it will obscure the long-
term view
Be slow to forgive an action or inaction that hurts reputation
Do not lie
Dance with the one that “brung” you
Reputation is an asset and must be managed like other assets

Best Practices in
Reputation Management
Understand and value the components of reputation, including
integrity, governance, and communicativeness (transparency)
Establish a formal mechanism to periodically monitor, measure,
and manage reputation
Establish a formal mechanism to manage reputation on an
ongoing basis
A formal mechanism can help your organization converge brand
reputation and the broader corporate reputation with intrinsic
identity
Brand Management
Brand is not reputation
Reputation—the sum of perceptions that individuals or groups
have of a specific individual or organization
Brand—how an individual or organization wants to be perceived
The Expanded Reputation Formula
Reputation = (Performance + Behavior + Communication) x

Authenticity factor
R = (P + B + C) x Af
The Authenticity Factor – The indicator of how well an
organization (or person) lives up to its intrinsic identity. When
authenticity, the organization is a whole, undiminished. Authur
W. Page Society call the “coin of the realm for successful
organizations. Grounded: sense of what defines it, why it exists;
what it stands for and what differentiates it in the marketplace.
To be authentic is to have integrity (a whole). When integrity or
authenticity fails, the Authenticity factor is a fraction. The
organizations is divided and, and its reputation will decline,
because it well be a fraction of the sum. Reputation depends on
each of the factors. Reputation can only be managed by
managing all the components in the equatikon.
28
Systems Theory
Communication is the means by which an organization
functions, and it is axiomatic that the better the communication
the more productive the organization

Remaining Chapters
Discussion of ethics (Chapter 2)
Discussion of approaches to working with the various corporate
communication constituencies (Chapters 3–10)
Ways of handling certain major responsibilities (Chapters 11–
13)
Challenges facing those who seek to build a career in corporate
and organizational communication (Chapter 14)

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