In a corporation , a stakeholder is a member of "groups without whose support the organization would cease to exist", as defined in the first usage of the word in a 1963 internal memorandum at the Stanford Research Institute . The theory was later developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management , corporate governance , business purpose and corporate social responsibility (CSR). The definition of corporate responsibilities through a classification of stakeholders to consider has been criticized as creating a false dichotomy between the "shareholder model" and the "stakeholder model", or a false analogy of the obligations towards shareholders and other interested parties.
61-435: Director of communications is a position in both the private and public sectors. A director of communications is responsible for managing and directing an organization's internal and external communications. Directors of communications supervise public relations staff, create communication strategies, and may serve as the key spokesperson and media contact for the organization. A director of communications may also be called
122-422: A central role in doing public relations. After a public relations practitioner has been working in the field, they accumulate a list of relationships that become an asset, especially for those in media relations. Within each discipline, typical activities include publicity events , speaking opportunities, press releases , newsletters , blogs , social media , press kits, and outbound communication to members of
183-528: A deputy director, clerical staff, and communications specialists and managers. In United States politics, a director of communications is usually a senior aide to the president of the United States ( White House Communications Director ), a member of the House of Representatives , a senator , a judge , a candidate for political office, a Cabinet secretary , or a government department. In Canada and
244-407: A form of marketing communications . Public relations often aims to create or obtain coverage for clients for free, also known as earned media , rather than paying for marketing or advertising also known as paid media. However, advertising is also a part of broader PR activities. An example of good public relations would be generating an article featuring a PR firm's client, rather than paying for
305-664: A host of different types of business verticals such as entertainment, technology, music, travel, television, food, consumer electronics and more. Many publicists build their career in a specific business space to leverage relationships and contacts. There are different kinds of press strategies for such as B2B (business to business) or B2C (business to consumer). Business to business publicity highlights service providers who provide services and products to other businesses. Business to Consumer publicizes products and services for regular consumers, such as toys, travel, food, entertainment, personal electronics and music. Litigation public relations
366-526: A political party. Those members would then be considered stakeholders, which are people who have a stake or an interest in an organization or issue that potentially involves the organization or group they are interested in. The Publics in Public Relations are: Early literature authored by James Grunig (1978) suggested that publics develop in stages determined by their levels of problem recognition, constraint recognition and involvement in addressing
427-481: A public relations manager, communications director , or press secretary . The director of communications usually reports directly to a CxO , including a chief communications officer (CCO) or chief executive officer (CEO) of a company or organization. In an organization, the director of communications directs the Communications Department. The director of communications may be assisted by
488-466: A real menace to democracy as it renders the public discourse powerless. Corporations are able to hire public relations professionals and transmit their messages through the media channels and exercise a huge amount of influence upon the individual who is defenseless against such a powerful force. He claims that public relations is a weapon for capitalist deception and the best way to resist is to become media literate and use critical thinking when interpreting
549-452: A satisfactory phrase to describe what I do." In 1948, historian Eric Goldman noted that the definition of public relations in Webster's Dictionary would be "disputed by both practitioners and critics in the field." According to Dr. Ren, the public relations counsel is the agent working with both modern media of communications and group formations of society in order to provide ideas to
610-762: A set of fundamental guidelines that people within the public relations professions should practice and use in their business atmosphere. These values are: Other than the ethics put in place in the United States of America there are also International ethics set to ensure proper and, legal worldwide communication. Regarding these ethics, there are broad codes used specifically for international forms of public relations, and then there are more specific forms from different countries. For example, some countries have certain associations to create ethics and standards to communication across their country. The International Association of Business Communication (founded in 1971), or also known as IABC, has its own set of ethics in order to enforce
671-408: A set of guidelines that ensure communication internationality is legal, ethical, and is in good taste. Some principles that members of the board of IABC follow include. The IABC members use the following list of ethics in order to work to improve values of communication throughout the world: Spin has been interpreted historically to mean overt deceit that is meant to manipulate the public, but since
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#1732773100204732-400: A whole. Whereas shareholders are often the party with the most direct and obvious interest at stake in business decisions, they are one of various subsets of stakeholders, as customers and employees also have stakes in the outcome. In the most developed sense of stakeholders in terms of real corporate responsibility , the bearers of externalities are included in stakeholdership. In
793-402: Is a strategic communication process that builds mutually beneficial relationships between organizations and their publics." The UK-based Chartered Institute of Public Relations focuses its definition on reputation: "Public Relations is about reputation – the result of what you do, what you say and what others say about you. Public Relations is the discipline which looks after reputation, with
854-444: Is a synonym for "stakeholder". Post, Preston, Sachs (2002), use the following definition of the term "stakeholder": "A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and
915-442: Is essential to mitigate negative impacts and maintain public trust. Public relations professionals both serve the public's interest and private interests of businesses, associations, non-profit organizations, and governments. This dual obligation gave rise to heated debates among scholars of the discipline and practitioners over its fundamental values. This conflict represents the main ethical predicament of public relations. In 2000,
976-548: Is the management of the communication process during the course of any legal dispute or adjudicatory processing so as to affect the outcome or its effect on the client's overall reputation (Haggerty, 2003). Public relations plays a crucial role in crisis management by helping organizations prepare for, navigate, and recover from unexpected events that threaten their reputation, operations, or stakeholders. A crisis can range from natural disasters and product recalls to scandals and cybersecurity breaches. Effective crisis communication
1037-404: Is the use of Internet tools and technologies such as search engines , Web 2.0 social bookmarking, new media relations, blogging , and social media marketing . Interactive PR allows companies and organizations to disseminate information without relying solely on mainstream publications and to communicate directly with the public, customers and prospects. PR practitioners have always relied on
1098-594: Is to produce content that users will share with their social network to help a company increase brand exposure and broaden customer reach. Some of the major social media platforms currently include Facebook, Instagram, Twitter, LinkedIn, Pinterest, YouTube, and Snapchat. As digital technology has evolved, the methods for measuring the effectiveness of online public relations have improved. The Public Relations Society of America, which has been developing PR strategies since 1947, has identified five steps for measuring online public relations effectiveness. Publicists can work in
1159-477: Is ultimately to undermine the central goal of building trust and nurturing a good relationship." The techniques of spin include selectively presenting facts and quotes that support ideal positions ( cherry picking ), the so-called " non-denial denial ", phrasing that in a way presumes unproven truths, euphemisms for drawing attention away from items considered distasteful, and ambiguity in public statements. Another spin technique involves careful choice of timing in
1220-514: The Council of Europe , the director of communication plays a key role in the organization, directly supporting the work of the secretary general of the Council of Europe . Public relations Public relations ( PR ) is the practice of managing and disseminating information from an individual or an organization (such as a business , government agency , or a nonprofit organization ) to
1281-522: The Public Relations Society of America (PRSA) responded to the controversy by acknowledging in its new code of ethics "advocacy" – for the first time – as a core value of the discipline. The field of public relations is generally highly un-regulated, but many professionals voluntarily adhere to the code of conduct of one or more professional bodies to avoid exposure for ethical violations. The Chartered Institute of Public Relations ,
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#17327731002041342-637: The United Kingdom , a director of communications is a senior aide to members of Parliament , members of the House of Lords , the prime minister , Cabinet ministers, and government departments. The director of communications to the prime minister of the United Kingdom is Matthew Doyle . In Australia , the director of communications is a senior adviser to the prime minister . They manage the prime minister's communications office including press secretaries and speechwriting staff. In Nigeria
1403-548: The World Wars (compare journalism ). World War I (1914–1918), which affected not only military but whole populations, is considered to be "modern propaganda's launching pad". This led to more sophisticated commercial publicity efforts as public-relations talent entered the private sector. Most historians believe modern-day public relations was first established in the US by Ivy Lee (1877–1934) in 1903 when he started working as
1464-436: The press , arranging interviews for company spokespeople, writing speeches for company leaders, acting as an organization's spokesperson , preparing clients for press conferences , media interviews and speeches, writing website and social media content, managing company reputation ( crisis management ), managing internal communications , and marketing activities like brand awareness and event management. Success in
1525-622: The 1950s has shifted to describing a "polishing of the truth." Today, spin refers to providing a certain interpretation of information meant to sway public opinion. Companies may use spin to create the appearance of the company or other events are going in a slightly different direction than they actually are. Within the field of public relations, spin is seen as a derogatory term, interpreted by professionals as meaning blatant deceit and manipulation. Skilled practitioners of spin are sometimes called "spin doctors." In Stuart Ewen 's PR! A Social History of Spin , he argues that public relations can be
1586-529: The Public Relations Society of America, and The Institute of Public Relations are a few organizations that publish an ethical code. Still, Edelman 's 2003 semi-annual trust survey found that only 20 percent of survey respondents from the public believed paid communicators within a company were credible. Individuals in public relations are growing increasingly concerned with their company's marketing practices, questioning whether they agree with
1647-459: The UK, the equivalent job titles are Account Executive, Account Manager, Account Director and Director. Public relations specialists establish and maintain relationships with an organization's target audiences , the media, relevant trade media, and other opinion leaders . Common responsibilities include designing communications campaigns, writing press releases and other content for news, working with
1708-462: The aim of earning understanding and support and influencing opinion and behaviour. It is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics." Public relations can also be defined as the practice of managing communication between an organization and its publics. Quentin Langley argues the use of the word "publics" in
1769-844: The client to be advertised next to the article. The aim of public relations is to inform the public, prospective customers, investors, partners, employees, and other stakeholders , and persuade them to maintain a positive or favorable view about the organization, its leadership , products, or political decisions. Public relations professionals typically work for PR and marketing firms, businesses and companies , government , and public officials as public information officers and nongovernmental organizations , and nonprofit organizations. Jobs central to public relations include internal positions such as public relations coordinator, public relations specialist, and public relations manager, and outside agency positions such as account coordinator, account executive , account supervisor, and media relations manager. In
1830-511: The community from which the business draws its resources. Not all stakeholders are equal. A company's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company's employees. The stakeholders in a corporation are the individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and that are therefore its potential beneficiaries and/or risk bearers." This definition differs from
1891-420: The company's social responsibility. They seek more influence over marketing and more of a counseling and policy-making role. On the other hand, individuals in marketing are increasingly interested in incorporating publicity as a tool within the realm marketing. According to Scott Cutlip, the social justification for public relations is the right for an organization to have a fair hearing of their point of view in
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1952-683: The director of communications or special adviser on communications is a senior aide to the president , vice-president , and senior members of the National Assembly. In Spain , the most senior official responsible for the government communication policy is the Secretary of State for Press (or "for Communication"). The Secretary of State depends from the Prime Minister and the Government Spokesperson . In
2013-423: The disease are stakeholders, but the audience is anyone who is likely to donate money. Public relations experts possess deep skills in media relations, market positioning, and branding. They are powerful agents that help clients deliver clear, unambiguous information to a target audience that matters to them. A public is any group whose members have a common interest or common values in a particular subject, such as
2074-408: The effect of social media in 1999, was controversial in its time, but by 2006 the effect of social media and new Internet technologies became broadly accepted by the general public. Public relations professionals present the face of an organization or individual, usually to articulate its objectives and official views on issues of relevance, primarily to the media. Public relations contributes to
2135-404: The entity does. This includes not only vendors, employees , and customers , but even members of a community where its offices or factory may affect the local economy or environment. In this context, a "stakeholder" includes not only the directors or trustees on its governing board (who are stakeholders in the traditional sense of the word) but also all persons who paid into the figurative stake and
2196-408: The field of corporate governance and corporate responsibility , a debate is ongoing about whether the firm or company should be managed primarily for stakeholders, stockholders ( shareholders ), customers , or others. Proponents in favor of stakeholders may base their arguments on the following four key assertions: A corporate stakeholder can affect or be affected by the actions of a business as
2257-484: The field of public relations requires a deep understanding of the interests and concerns of each of the company's many stakeholders. The public relations professional must know how to effectively address those concerns using the most powerful tool of the public relations trade, which is publicity. Ivy Lee , the man who turned around the Rockefeller name and image, and his friend, Edward Louis Bernays , established
2318-503: The first definition of public relations in the early 20th century as: "a management function, which tabulates public attitudes, defines the policies, procedures and interests of an organization... followed by executing a program of action to earn public understanding and acceptance." However, when Lee was later asked about his role in a hearing with the United Transit Commission, he said "I have never been able to find
2379-437: The image maker for and corporate advisor for Rockefeller. Edward Bernays (1891–1995), who handled the publicity of theatrical associations in 1913, then spread internationally. Meanwhile, in the nascent Soviet Russia of the 1920s, artists and poets (such as Mayakovsky ) engaged in public-relations campaigns for various state agencies and causes (note for example Likbez ). Many American companies with PR departments spread
2440-507: The issue. The theory posited that publics develop in the following stages: Messaging is the process of creating a consistent story around: a product, person, company, or service. Messaging aims to prevent readers from receiving contradictory or confusing information that could instill doubt in their purchasing choices, or other decisions that affect the company. Brands aim to have the same problem statement, industry viewpoint, or brand perception shared across sources and media. Digital marketing
2501-417: The last decades of the 20th century, the word "stakeholder" became more commonly used to mean a person or organization that has a legitimate interest in a project or entity. In discussing the decision-making process for institutions—including large business corporations , government agencies , and non-profit organizations —the concept has been broadened to include everyone with an interest (or "stake") in what
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2562-672: The marketing perspective of seeing public relations as part of marketing, which he claims is too focused on just one of Hayward's six publics: customers. Public relations has historical roots pre-dating the 20th century. Most textbooks regard the establishment of the "Publicity Bureau" in Boston in 1900 as marking the founding of a public relations profession . Academics have found early forms of public influence and communications management in ancient civilizations. Aristotle 's Rhetoric , for example, explains core foundations for persuasion . Evidence shows that it continued to evolve during
2623-671: The media such as TV, radio, and magazines, to promote their ideas and messages tailored specifically to a target audience. Social media marketing is not only a new way to achieve that goal, but also a continuation of a strategy that existed for decades. Lister et al. said that "Digital media can be seen as a continuation and extension of a principal or technique that was already in place". Social media platforms enable users to connect with audiences to build brands, increase sales, and drive website traffic. This involves publishing content on social media profiles, engaging with followers, analyzing results, and running social media advertisements. The goal
2684-420: The members of the overall community to focus the organisation's scarce resources on the most significant stakeholders. Example The holders of each separate kind of interest in the entity's affairs are called a constituency, so there may be a constituency of stockholders , a constituency of adjoining property owners, a constituency of banks the entity owes money to, and so on. In that usage, "constituent"
2745-598: The needs and desires of the audience they are trying to appeal to. Sometimes the interests of differing audiences and stakeholders common to a public relations effort necessitate the creation of several distinct but complementary messages. These messages however should be relevant to each other, thus creating consistency in the overall message and theme. Audience targeting tactics are important for public relations practitioners because they face all kinds of problems: low visibility, lack of public understanding, opposition from critics, and insufficient support from funding sources. On
2806-643: The older definition of the term stakeholder in Stakeholder theory (Freeman, 1983) that also includes competitors as stakeholders of a corporation. Robert Allen Phillips provides a moral foundation for stakeholder theory in Stakeholder Theory and Organizational Ethics . There he defends a "principle of stakeholder fairness" based on the work of John Rawls , as well as a distinction between normative and derivative legitimate stakeholders. Real stakeholders, labelled stakeholders: genuine stakeholders with
2867-496: The organization and the public interest ." The Public Relations Society of America , a professional trade association, defined public relations in 1982 as: "Public relations helps an organization and its publics adapt mutually to each other." In 2011 and 2012, the PRSA solicited crowd-supplied definitions for the term and allowed the public to vote on one of three finalists. The winning definition stated that: "Public relations
2928-403: The other hand, stakeholder theory identifies people who have a stake in a given institution or issue. All audiences are stakeholders (or presumptive stakeholders), but not all stakeholders are members of a target audience. For example, if a charity commissions a public relations agency to create an advertising campaign to raise money to find a cure for a disease, the charity and the people with
2989-399: The persons to whom it may be "paid out" (in the sense of a "payoff" in game theory , meaning the outcome of the transaction). Therefore, in order to effectively engage with a community of stakeholders, the organisation's management needs to be aware of the stakeholders, understand their wants and expectations, understand their attitude (supportive, neutral or opposed), and be able to prioritize
3050-462: The plural is "central to the understanding" of public relations, writing "all organisations have a series of publics, or stakeholders, on whom their success depends". He follows Roger Hayward (1991) in dividing the publics into "customers (past, present, and future), staff (past, present, and future), investors (past, present, and future), politicians and regulators, neighbours, and business partners (suppliers, distributors, etc.)". Langley also contests
3111-585: The practice to Europe when they set up European subsidiaries in the wake of the Marshall plan of 1948–1952. In the second half of the 20th century, public relations entered an era of professional development . Trade associations, PR news-magazines, international PR agencies, and academic principles for the profession were established. In the early 2000s, press-release services began offering social-media press releases. The Cluetrain Manifesto , which predicted
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#17327731002043172-399: The press. Video and audio news releases (VNRs and ANRs) are often produced and distributed to TV outlets in hopes they will be used as regular program content. A fundamental technique used in public relations is to identify the target audience and to tailor messages that are relevant to each audience. Audience targeting requires public relations professionals to have a deep understanding of
3233-403: The private sector. For examples these are parents, children, customers, owners, employees, associates, partners, contractors, and suppliers, people that are related or located nearby. Broadly speaking there are three types of stakeholders: A narrow mapping of a company's stakeholders might identify the following stakeholders: A broader mapping of a company's stakeholders may also include: In
3294-478: The public forum, but to obtain such a hearing for their ideas requires a skilled advocate. Marketing and communications strategist, Ira Gostin, believes there is a code of conduct when conducting business and using public relations. Public relations specialists have the ability to influence society. Fact-checking and presenting accurate information is necessary to maintain credibility with employers and clients. The Public Relations Society of America has established
3355-469: The public in order to influence their perception. Public relations and publicity differ in that PR is controlled internally, whereas publicity is not controlled and contributed by external parties. Public relations may include an organization or individual gaining exposure to their audiences using topics of public interest and news items that do not require direct payment. The exposure is mostly media -based, and this differentiates it from advertising as
3416-594: The public's consciousness. Furthermore, he is also concerned with ideologies and courses of actions as well as material goods and services and public utilities and industrial associations and large trade groups for which it secures popular support. In August 1978, the World Assembly of Public Relations Associations defined the field as "the art and social science of analyzing trends , predicting their consequences, counselling organizational leaders and implementing planned programs of action, which will serve both
3477-621: The release of certain news so it can take advantage of prominent events in the news. Negative public relations, also called dark public relations (DPR), 'black hat PR' and in some earlier writing "Black PR", is a process of destroying the target's reputation and/or corporate identity . The objective in DPR is to discredit someone else, who may pose a threat to the client's business or be a political rival. DPR may rely on IT security , industrial espionage , social engineering and competitive intelligence . Common techniques include using dirty secrets from
3538-536: The settling of the New World and during the movement to abolish slavery in England. Basil Clarke is considered the founder of public relations in the United Kingdom for his establishment of "Editorial Services" in 1924. The United States, the United Kingdom, Germany, and others used the concept of propaganda , which later evolved into public relations, to rally domestic support and to demonize enemies during
3599-408: The target, producing misleading facts to fool a competitor. In politics, a decision to use negative PR is also known as negative campaigning . The T.A.R.E.S. is a five-point test that evaluates ethical persuasion and provides boundaries in persuasive practices. Stakeholder (corporate) Any action taken by any organization or any group might affect those people who are linked with them in
3660-404: The various mediated messages. According to Jim Hoggan , "public relations is not by definition 'spin'. Public relations is the art of building good relationships. You do that most effectively by earning trust and goodwill among those who are important to you and your business... Spin is to public relations what manipulation is to interpersonal communications. It's a diversion whose primary effect
3721-528: The way an organization is perceived by influencing the media and maintaining relationships with stakeholders. According to Jacquie L'Etang from Queen Margaret University, public relations professionals can be viewed as "discourse workers specializing in communication and the presentation of argument and employing rhetorical strategies to achieve managerial aims." Specific public relations disciplines include: Building and managing relationships with those who influence an organization or individual's audiences have
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