1
PUBLIC RELATIONS &
REPUTATION MANAGEMENT
1. Intro to PRRM + Workgroup Instructions
Materials: Cornelissen, Chapter 1
I) Intro to the Class and Basic Definitions
What is this course about? Public Relations!
Public Relations:
● Management of Communication of the Organization, e.g. negotiation on points of view
& bridging interests. (Grunig)
● The development of relationships to help communicate about an organization, an issue,
a person or a product. (Gordon)
● Management of a mutual understanding between an organization and its publics.
(Cutlip)
Public Relations defines the function or activity that aims to establish and protect the
reputation of a company or brand, and to create mutual understanding between the
organization and the segments of the public with whom it needs to communicate
Reputation:
● The overall assessment of an organization by its stakeholders. (van Riel & Fombrun,
2007)
● It represents the emotional reaction (good, bad, weak or strong) of customers,
investors, employees, & public. (Fombrun, 1996)
● It encompasses dimensions, such as product quality, innovation, investment value,
people management and responsibility.
Corporate Communication: Management function that offers a framework for the effective
coordination of all internal and external communication with the overall purpose of
establishing and maintaining favorable reputations with stakeholder groups upon which the
organization is dependent.
, 2
II) History Behind Public Relations
Birth in Boston, 1900s:
● In the early 1900s, with the Industrial Revolution, and the development of
advertisement as a structured concept, Public Relations became more formalized.
● In 1900 the Publicity Bureau was founded in Boston. Meanwhile, similar institutions
are beginning to appear in the UK.
Edward Bernays:
● Considered to be the founding father of Public Relations as a discipline
● Was the nephew of Freud and deeply influenced by his theories about the
subconscious
● Introduced the concept of the focus group and worked with tobacco brands and
other controversial products
● Turned bacon and eggs into the quintessential American breakfast when asked to
improve bacon sales. First, he surveyed a group of medical professionals to get their
recommendations that people eat hearty, nutritious breakfasts. Then, he sent the
survey results to 5,000 physicians, along with publicity touting bacon and eggs as a
nutritious breakfast.
● Advertised cigarettes for women when he persuaded a group of NYC debutantes to
march down Fifth Avenue in the Easter Parade, openly smoking cigarettes.
Public Relations in the 1980s:
, 3
● Restructuring trend: all activities within an organization evaluated on the basis of
what they contribute to the organization.
● Communication professionals are consolidated in PR departments and procedures (e.g.
Communication guidelines) are established for the whole organization.
○ + Public Relations start being recognized as a function the whole organization
benefits from
○ -- No consideration is given for the role of stakeholders.
Public Relations in the 1990s:
● Strategic Positioning: organizations use PR as a way to achieve a competitive
corporate identity.
● Communication professionals have the role to shape an organization’s brand, which
can be conveniently “positioned” within the minds of stakeholders.
○ + Public Relations become a crucial strategic tool for organizations to be more
profitable.
○ -- Stakeholders are considered passively, as receivers of messages that can
easily be controlled and managed.
Public Relations in the 2000s:
● Stakeholder Engagement: thanks to new media, stakeholders become real
participants in an organization’s public relations.
● Old principles of strategic communication still apply, but the relationship with
stakeholders becomes a dialogue rather than a one-directional communication.
○ + Stakeholders can be “activated” and become advocates for the organization.
○ -- Organizations will be held to substantially higher standards of transparency
and genuine behavior.
Nowadays:
● PR is more complex, technical and precise
● Divided into different areas, require different talents and specializations
● Driven by technological changes (new media)
, 4
2. Stakeholders Communication
Materials: Cornelissen, Chapters 4 and 13
I) Identifying Stakeholders
Stakeholder: any group or individual who can affect or is affected by the achievement of the
organization’s purpose and objectives
➔ Primary Stakeholders: individuals or entities that benefit from or are directly
impacted by the operations and activities of a business. Examples include”
◆ Shareholders and investors.
◆ Employees and managers.
◆ Customers.
◆ Local communities.
◆ Suppliers and other business partners
➔ Secondary Stakeholders: usually external stakeholders, although they do not
engage in direct economic exchange with the business – are affected by or
can affect its actions. Examples include
◆ General public, communities
◆ Activist groups
◆ Business support
◆ Groups
◆ Media
Strategic Management: Two Views
The Input-Output Model The Stakeholder Model
(The Share-Holder Model)
Theory: Neo-Classical Economic Theory: Socio-Economic
Main objective: Maximise Profits Main objective: Mediate Between Interests
PUBLIC RELATIONS &
REPUTATION MANAGEMENT
1. Intro to PRRM + Workgroup Instructions
Materials: Cornelissen, Chapter 1
I) Intro to the Class and Basic Definitions
What is this course about? Public Relations!
Public Relations:
● Management of Communication of the Organization, e.g. negotiation on points of view
& bridging interests. (Grunig)
● The development of relationships to help communicate about an organization, an issue,
a person or a product. (Gordon)
● Management of a mutual understanding between an organization and its publics.
(Cutlip)
Public Relations defines the function or activity that aims to establish and protect the
reputation of a company or brand, and to create mutual understanding between the
organization and the segments of the public with whom it needs to communicate
Reputation:
● The overall assessment of an organization by its stakeholders. (van Riel & Fombrun,
2007)
● It represents the emotional reaction (good, bad, weak or strong) of customers,
investors, employees, & public. (Fombrun, 1996)
● It encompasses dimensions, such as product quality, innovation, investment value,
people management and responsibility.
Corporate Communication: Management function that offers a framework for the effective
coordination of all internal and external communication with the overall purpose of
establishing and maintaining favorable reputations with stakeholder groups upon which the
organization is dependent.
, 2
II) History Behind Public Relations
Birth in Boston, 1900s:
● In the early 1900s, with the Industrial Revolution, and the development of
advertisement as a structured concept, Public Relations became more formalized.
● In 1900 the Publicity Bureau was founded in Boston. Meanwhile, similar institutions
are beginning to appear in the UK.
Edward Bernays:
● Considered to be the founding father of Public Relations as a discipline
● Was the nephew of Freud and deeply influenced by his theories about the
subconscious
● Introduced the concept of the focus group and worked with tobacco brands and
other controversial products
● Turned bacon and eggs into the quintessential American breakfast when asked to
improve bacon sales. First, he surveyed a group of medical professionals to get their
recommendations that people eat hearty, nutritious breakfasts. Then, he sent the
survey results to 5,000 physicians, along with publicity touting bacon and eggs as a
nutritious breakfast.
● Advertised cigarettes for women when he persuaded a group of NYC debutantes to
march down Fifth Avenue in the Easter Parade, openly smoking cigarettes.
Public Relations in the 1980s:
, 3
● Restructuring trend: all activities within an organization evaluated on the basis of
what they contribute to the organization.
● Communication professionals are consolidated in PR departments and procedures (e.g.
Communication guidelines) are established for the whole organization.
○ + Public Relations start being recognized as a function the whole organization
benefits from
○ -- No consideration is given for the role of stakeholders.
Public Relations in the 1990s:
● Strategic Positioning: organizations use PR as a way to achieve a competitive
corporate identity.
● Communication professionals have the role to shape an organization’s brand, which
can be conveniently “positioned” within the minds of stakeholders.
○ + Public Relations become a crucial strategic tool for organizations to be more
profitable.
○ -- Stakeholders are considered passively, as receivers of messages that can
easily be controlled and managed.
Public Relations in the 2000s:
● Stakeholder Engagement: thanks to new media, stakeholders become real
participants in an organization’s public relations.
● Old principles of strategic communication still apply, but the relationship with
stakeholders becomes a dialogue rather than a one-directional communication.
○ + Stakeholders can be “activated” and become advocates for the organization.
○ -- Organizations will be held to substantially higher standards of transparency
and genuine behavior.
Nowadays:
● PR is more complex, technical and precise
● Divided into different areas, require different talents and specializations
● Driven by technological changes (new media)
, 4
2. Stakeholders Communication
Materials: Cornelissen, Chapters 4 and 13
I) Identifying Stakeholders
Stakeholder: any group or individual who can affect or is affected by the achievement of the
organization’s purpose and objectives
➔ Primary Stakeholders: individuals or entities that benefit from or are directly
impacted by the operations and activities of a business. Examples include”
◆ Shareholders and investors.
◆ Employees and managers.
◆ Customers.
◆ Local communities.
◆ Suppliers and other business partners
➔ Secondary Stakeholders: usually external stakeholders, although they do not
engage in direct economic exchange with the business – are affected by or
can affect its actions. Examples include
◆ General public, communities
◆ Activist groups
◆ Business support
◆ Groups
◆ Media
Strategic Management: Two Views
The Input-Output Model The Stakeholder Model
(The Share-Holder Model)
Theory: Neo-Classical Economic Theory: Socio-Economic
Main objective: Maximise Profits Main objective: Mediate Between Interests
