Learning Unit 6:
Application Fields
Community Relations
Peak defines community relations, from a PR point of view, as an institution’s planned, active, and continuing participation with and within a community to maintain and enhance its environment to the benefit of both the institution and the community.
It is a generally spread idea that to keep in good terms with the community is, on the long run, necessary public relations. In this case, we can speak of a win-win situation because both the company and the community can profit from the symbiosis.
Organizations can get obvious advantages from a good relationship with the community. Beyond the municipal services that the community provides, we can expect fair taxation, good living conditions for employees, continuing labor supply and support in case we need to enlarger production plants or build new ones.
On the other hand, the community can also profit from the corporate activity. Business always brings employment, wages and taxes to the community. Further, they secure the support for community institutions and their economic stability.
In order to effectively create bonds with the community, the organizations needs to know how this community is structures, where are the community’s strengths and weaknesses, and most importantly, how the people in the community feel about the organization. Research is also crucial when it comes to community relations. We need to find out the values of the community, the most effective communication channels, the problems that the people may have, and, as already stated, the attitudes toward the organization and its products.
Guidelines for Effective Community Relations Programs
First of all, we need to stablish the objectives top management wishes to achieve. Examples of strategic goals are to improve the reputation of the company in the community, or to contribute to the stability of the environment.
All alternative strategies should be considered and then choices should be made. It is necessary to anticipate the impact of the community relations programs on both the community and the organization, as well as to pay attention to the total cost of the program. If you are not able to complete the program because you do not have enough funds, the company will appear in a negative light.
Also if you are in an unfamiliar cultural setting, acquiring knowledge and understanding outside of the normal managerial and business knowledge will be necessary.
To better know the community, some research activities are recommended:
- U.S. Census report
- Survey research
- Professional polling
- Contact with community leaders
Criteria for Community Relations Activities
Creating something needed that did not exist before.
Eliminating something that is a community problem.
Developing means of self-determination. (A good example is Kinko’s community strategy. This company uses its branches in the community to heighten knowledge about the environmental issues and to identify what can be done to improve and protect the community.)
Broadening use of something that exists to include “havenots.” (Hotelier Marriott, for instance, provides daycare for service-industry workers.)
Sharing equipment, facilities and professional expertise. (McDonald’s, a company that is very active in PR, lets groups use it juice machines for parties.)
Reconstituting, repairing, dressing up. (Whirlpool pledged an oven and refrigerator for each new homes Habitat for Humanity hopes to build worldwide by 2005.)
Tutoring, counseling, and training. (There are many companies that encourage employees to teach classes and lecture in grades kindergarten to college.)
Companies working together. (St. Jude Children’s Research and FedEx host the FedEx-St. Jude PGA Golf tournament and raised around $1 million for cancer and other childhood illness research.)
Case Study
Telco’s Plainville Quarry has earned the National Stone Sand and Gravel Association’s (NSSGA) 2006 Pinnacle Community Relations Award. Tilcon received the Pinnacle Award, the most prestigious award in the Community Relations category, for its extensive community relations program of five-plus years.
Tilcon’s community activity shows many different aspects:
Community outreach
Donations to Habitat for Humanity
Donations to local schools, police and firefighters and nonprofits
Joy Wilson, NSSGA president, explain as follows the philosophy beyond this community relations awards: “All of the award winners are perfect examples of what good neighbors and responsible corporate citizens should look and act like. This comes from opening doors to community involvement, committing to service and support, and actively teaching neighbors about the importance of aggregates in America’s daily life.”
Sponsoring
We discussed in the 2nd learning module the importance of the Olympic Games for business and politics. This special event shows us also the use of sponsoring to create corporate identity, increase brand visibility, improve the reputation of the company by association, and attract media attention.
Due to the power of a world-side audience, the Olympic Games are also the most expensive event to sponsor. The Beijing games generated around $ 1,5 billion in sponsoring fees. To sponsor this event is ideal for corporations with mainstream target audiences, products that appeal to practically everybody (such as Coca-Cola). This extraordinary economic effort may also pay for sport companies. According to our textbook, the sportwear manufacturer Speedo sponsored the very successful U.S. Olympic swim team. All the swimmers wore caps and swim suits with name and logo of this firm. This constant media presence is the reason of the supremacy in sales of this brand.
The criteria to decide which event to sponsor depend, of course on the target audience. We have to make sure that our target audience will be in front of the TV when the event is broadcast, or will even attend the event.
A manufacturer of luxurious cars (Mercedes, BMW) would be interested in sponsoring events associated to people with high income (a golf tournament, for instance). To promote the sales of pick up trucks, as suggested by Wilcox et al, it would be more effective to sponsor a series of country music concerts.
Research is again basic before we start any sponsoring action. We need to find out the tastes, interests and behaviors of our target audience before we decide which events will be worth sponsoring.
Philanthropy
The Greek word “Philanthropy” literary means “love to the human being”.
In Public Relations we talk about corporate philanthropy when the companies donate money for charities, research, church, or education. The main function of philanthropy is to build public trust. It will always help create a friendly environment for the company if the public associates its name to a good cause.
By law, corporations can donate up to ten percent of profits to charity. Besides the PR aspects, tax incentives serve as a motivator for businesses to donate to charitable organizations.
The fact is that very few companies actually donate that ten percent and that most of the charity activities of the company serve the primary interest of public relations.
Only in the past 50 years has corporate philanthropy been recognized as a legal use of stockholder’s funds. In some cases, it has been even controversial because some argue that corporate managers should not be giving away profits that belong to the stockholders. Many believe that the stockholder should have the right to decide if they want to give away their money to a charity of their choice.
Case Studies
We have already learned in our 2nd learning module that the Rockefeller Company was pioneering in the field of philanthropic activities. According to the legend, ever since his first paycheck, John D. Rockefeller donated 10 percent to the church.
Even in 1884, Rockefeller provided major funding for a college in Atlanta for African-American women, later to become Spelman College. He gave $80 million to the University of Chicago and founded the Rockefeller Sanitation Commission, which later eradicated the hookworm disease in the American south.
However, it was Ivy L. Lee to instrumentally use all those activities to improve the reputation of the company and fight against the attacks of the muckrakers. It was Lee’s idea to take pictures of John D. Rockerfeller’s Sr. giving dimes to the poor children, the image most Americans associate now to the Rockefeller name
An interesting example of contemporary corporate philanthropy is TARGET.
This company donates to sustain education, arts, and also safe communities for families. They have raised over $170 million for schools. Beside that, Target sponsors book festivals and family reading events and provide free admission to many art museums. Finally, Target also donates to the Red Cross, child abuse prevention, and the Salvation Army.
The problem with Corporate Philanthropy was foreseen by Ivy L. Lee. If you decide to sponsor a sport event, or a concert, the name of your company will have a strong media presence. This is not the case with philanthropic work. Thus, from the PR point of view, you will have not only to spend the money in philanthropic activities, BUT ALSO – AND MOST IMPORTANT – LET THE PUBLIC KNOW WHAT YOU THE COMPANY IS DOING. This is the reason why many PR companies try to engage celebrities in their philanthropic activities. They know the their presence will ensure a strong media coverage
Environment
The environmental tragedy caused by the sinking of the EXXON-VALDEZ in 1989 represents a turning point in the history of public relations. As we learned in the 5th learning module, it made clear to all communication professionals that the environment had become one of the idols of contemporary public opinion. During the 1990ies radical groups of environmental activists were scrutinizing large corporations and informing the public through aggressive campaigns about how those companies were harming the environment.
The protection of the environment puts nowadays a heavy burden on corporations. Those campaigns systematically revealed that much of the pollution in the world has been caused by corporations and their manufacturing processes. Thus, one of the priorities for corporations is now to eliminate the sources of environmental damage they created. The cost of this can be extremely high.
The PR Role
One of the most important PR function in contemporary communication is to present to the public the company’s environmental accomplishments, its plans for long term cleanup, and explanations of the company’s problems in achieving its goals.
PR firms and departments recommend, as a first step, to get an environmental audit which will make clear the damage they are causing to the environment.
They are also in charge of informing top management of the public’s perceptions and concerns about the company’s environmental record. This is crucial to protect the company’s reputation.
Finally, PR department are regularly conducting environmental cleanup campaigns also within the company, urging employees to follow good environmental practices.
Bad News Is Good News
This is another aspect of the PR activity with regards to environment. If your company commits any environmental sin, you can be sure that it will generate more headlines than any positive actions or campaigns you can create. Remember the journalistic axiom: Bad news is always good news. One of the priorities in the PR department should be to have a crisis plan ready in case a company’s environmental blunder comes to light. The plan should help you explain how it happened, why it is difficult to fix, and which the way to correct it.
Image Building
Many companies are using the idea of environmental consciousness to strengthen a company’s identity in the eyes of the public. In some cases, the goal is to project a good image. In other cases companies use environment to correct an unfavorable public impression.
This image is part of an advertising campaign by Toyota that does not promote any product, but an idea.
Case Study
The company Home Depot offers us a good example of how a negative starting position can be turned to the best.
During 1997-1999, Home Depot was the target of radical environmentalist groups. They complained about the reckless exploitation of the rain forest. The protests received intensive media coverage, and the company was, of course, worried about the reaction of the public.
As a first response, Home Depot increased in 2001 products certified by the forest stewardship council. Later, the company became partner of the World Wildlife Fund, The Nature Conservancy, and other non-profits organizations, which advocate for responsible forestry and curb illegal logging.
As already stated, Home Depot was able to turn a negative campaign into a positive one.
Now, the company gets credit from the radical activists groups for being environmentally concerned, which reduces the negative publicity and enhances consumer loyalty.
Political Communication
Political Communication is one of the most interesting and large fields of PR. The department is dedicating a course to this topic. In this learning module I will just introduce you and focus on three aspects: Political campaigns, Lobbying, and grassroots politics.
Political Campaigns
PR becomes especially relevant during the fund-raising phase of the campaign. For there are few businesses that demand such an amount of money.
In the last primaries the different candidates spent $150 million by June 30th, 2007. (Mitt Ronney – $32.3 Million; John McCain – $23.2 Million; Barack Obama – $22.7 Million; Hillary Clinton – $ 18 Million).
They use that money to take care of the numerous expenses originated by the campaign. For instance, Mitt Romney paid $300 on make up for one of his TV debates. Hyllary Clinton’s staff spent
Beyond those anecdotes, candidates need to spend money in their headquarters, all the advertisements and commercials during the campaign, printing and mailing costs, surveys and opinion polls and, of course a large staff of communication professionals.
There are many ways of raising money. Candidates organize luncheons, receptions, or dinners where the supporters pay for the invitation ( $2,000 per person ). They are constantly running direct mailings and telemarketing actions. In the last election, the Internet became one of the most effective means to raise money.
Fund raising activities are strongly regulated. Federal laws tried to avoid that the candidates become puppets of power individuals or financial groups. By law, individuals can give candidates up to $2000 per election cycle. Groups and businesses can give candidates up to $10,000 per election cycle.
In this regard, it is also important to differentiate between hard money and soft money.
Hard Money: Individual can now give a total of $95,000 in each two-year election cycle to all federal candidates, political parties, and political action committees combined. Maximum is $2,000 per election directly to a candidate and $25,000 to a political party per year. This money is used to finance specific political campaigns.
Soft Money: State and local committees accept up to $10,000 from individuals. This money cannot be used to support a particular political candidate or specific campaigns. Soft money is frequently employed for party-building activities, issue advocacy campaigns or for voter registration efforts in federal elections.
Of course, there are some tricks to avoid those legal limitations. Soft money, for instance, allows donors to give money to political parties and not the individual candidate. In this practice, this money is indirectly use to support the candidate. BUNDLING is another frequent activity, which basically means sending several checks in one envelope (bundle). Issue advocacy allows donors to give money to an issue and not the candidate himself.
Case Study: BarrackObama.com
As I said, Internet is becoming one of the most important fund raising channels. No one has used this channel as effectively as the current president of the United States.
Supporters could go anytime to BarrackObama.c
om where they could find means to give money for Obama. In his Web-site, the candidate also informed about his intensive online presence.
The results o
f the campaign were impressive. Obama raised through the Internet $116,457,694.
Obama’s campaign represented altogether following expenses:
- Broadcast Media$312,885,186
- Travel$60,813,650
- Miscellaneous Administrative$20,883,340
- Postage/Shipping$16,841,298
- Supplies, Equipment & Furniture$4,791,156
- Administrative Consultants$1,432,910
- Foo
d/Meetings$437,144 - Campaign Events$32,046,501
- Polling/Surveys/Research $28,062,526
Lobbying
First of all, some information about the origin of the word. ‘Lobbyists’ was the term used to describe the men who sought favors from President Lincoln. They conducted affairs in the State Lobby of the Willard Hotel, located right outside of the White House.
Lobbyists are advocates on an issue. The Lobbying Disclosure Act of 1995 defines a lobbyist as an individual who spends at least 20% of their time with a client on lobbying activities, has multiple contacts with legislative staff, administrative staff, members of congress, or high-level executive branch officials, and works for a client who pays more than $5000 over six months for that service.
Lobbyists influence or try to influence legislative action through oral or written communication with legislative officials and public opinion. Their goal is to obtain the good will of legislative officials. A lobbyist directs his or her energies to the defeat, passage, or amendment of proposed legislation and regulatory agency policies.
Lobbyists can be found in local, state and federal levels of government. The interests represented include almost all of the United States’ business, education, religious, local, national and international pursuits. The number of lobbyists is growing. They usually outnumber legislators in any state capitol. In NY state their 212 legislators are outnumbered 18:1 by lobbyists.
It is important also to differentiate between inside and outside Lobbying:
INSIDE LOBBYING is the form of lobbying that happens inside the capitol.
OUTSIDE LOBBYING happens outside of the capitol and aims at shifting the politics and pressures around the issue.
Regulations
This spectacular growth moved the federal government to regulate the lobbying activity. In 1995, the Clinton Administration established the Ethics in Government Act. Now, Lobbyists has to register with Congress and disclose their clients.
In 2007, some revisions to the EGA prohibited lawmakers and aides to accept gifts, meals or trips from lobbyists. Members of the senate now were required to wait two years before lobbying congress. Ex-house members need to wait one year.
It remains to be seen whether all these new rules can be enforced.
Still, Lobbyists need to file an initial registration form and report activities to State Ethics Commission, Secretary of the Senates Office of Public Records, and Clerk of the House’s Legislative Resource Center.
Grassroots politics
We learn with Elisabeth Noelle-Neumann (learning module 4) that those opinions that are not expressed in public tend to disappear. This fact is especially relevant in political communication. Political parties and candidates are constantly trying to avoid “spirals of silence” against their positions. This is the aim of the so-called grassroots actions, one of the contemporary fashions in politics.
The idea is to use public opinion to exert pressure on legislators. Grassroots actions allow us to articulate the opinion of those groups of individuals who do not have access to the media outlets. The premise is that letters and phone calls from private citizens are more influential than arguments from vested interests. The greatest benefit of grassroots politics is that there are virtually no rules or regulations.
Tools of Grassroots Actions
There are different ways to organize grassroots actions. The traditional ones are based on advocacy advertising, toll-free phone lines, bulk faxing, or the simple door to door recruiting. Still, new technologies are revolutionizing grassroots politics because they offer limitless possibilities to articulate public opinion. Through Web-sites, political parties and groups of activists can mobilize their publics and supporters and let them sign for actions to put pressure on legislators. They can also very easily organize computerized direct mail aimed at generating phone calls and letters from the public.
Stealth Grassroots
It is tempting to abuse the power that flows from public opinion. There have been attempts to generate this kind of pressure manipulating the people.
This is what is called stealth lobbying which happen when grassroots actions are created under the cover of front groups. The public is not told what the vested interests are behind a particular campaign.
An example of this unethical practice is the case of Freddie Mac. This company was accused of hiring DCI a firm to create a stealth lobbying campaign to kill legislation that would have regulated and trimmed the mortgage finance giant and its sister company, Fannie Mae, three years before the government took control to prevent their collapse.