Lecture 1: Intro
Public Relations - Function or activity that aims to establish and protect the
reputation of a company or brands, and to create a mutual understanding
between the organization and the public
→ Management of Communication of the Organoization, ex: negotiation on points
of view and binding interests (Grunig)
→ Development of relationships to help communicate about an organization,
issue, person or product (Gordon)
Mutual understanding: the degree of consistently between how an
organization wishes to be seen and how its actually seen in the public
Reputation - overall assessment of an orgorganisation by its stakeholders
- Represents the emotional reaction of customers, investors, employees
and public (good, bad, weak or strong)
- includes 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
History of PR:
PR always existed informally, role in capturing the attention of the public and
mobilizing citizens. Some of the oldest PR material connected to political
propaganda or recruitment for wars
1900s
- Industrial revolution
- Development of advertisement as a structured concept, PR became
more formalized
- Foundation of Publicity Bureau in Boston, similar in UK
Edward Bernays
- Considered founding father of PR as a
discipline
- Nephew of Freud, influenced by his
theories about the subconscious
Introduced the concept of the focus group
,Introduced concept of focus group and worked with tobacco brands and other
controversial products
“Bacon & Eggs” → When Bernays was asked by the Beechnut Hacking
Company to improve its bacon sales, he devised a campaign to turn bacon and
eggs into the quintessential American breakfast. 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. [strategic PR]
Torches of Liberty → taboo about women smoking in pubic
1980s
Restructuring trend - all activities within an organization evaluated on the
basis of what they contribute to the organisation.
- Comm professionals are consolidated in PR departments and procedures (ex:
comm guidelines) are established for the whole org
[+] PR start being recognized as a function the whole org benefits from [-] no
consideration is given for the role of stakeholders
1990s
Strategic Positioning - org use PR as a way to achieve a competitive corporate
identity
- Comm professionals have the role to shape an org’s brand, which can be
conveniently “positioned” within the minds of stakeholders
[+] PR become a crucial strategic tool for org to be more profitable
[-] stakeholders are considered passively, as receivers of messages that can
easily be controlled and managed
2000s
Stakeholder Engagement - thanks to new media, stakeholders become real
participants in an org’s PR
- Old principles of strategic comm still apply, but the relationship with
stakeholders becomes a dialogue rather than a one-directional comm
[+] stakeholders can be “activated” and become advocates for the org
[-] org will be held to substantially higher standards of transparency and genuine
behavior
Today... main challenges?
- PR is more complex, technical and precise
- Divided into different areas, require
different talents and specializations
- Driven by technological changes (new
media)
, LECTURE 2
Stakeholder communication
ORGANISATION – composed by stakeholders
1.Identifying stakeholders
Stake – “right to land” – symbol of having a
interest
A stakeholder is any group or individual who can
affect or is affected by the achievement of the
organisations purpose and objectives.
(dependant on the organisation) costumers,
government, competitors, shareholders …
Primary stakeholders – eg; costumers
Secondary stakeholders – individuals
who more broadly affect or are affected by
your actions – eg; governments, media
DIFERENCE – secondary stakeholders are
not part of day to day operations only when enterprises come into play
Neo-classical economic: purpose of organization is to make profit by doing so that
business contribute to wealth for itself as well as society at large (maximise profits)
Strategic management - 2 VIEWS
1. The input output model ALSO CALLED – share holder model – related to (neo-
classical economic) – MAIN OBJECTIVE – maximise profits – the organisation works like a
pie, the only organisations that have a piece of the pie are important/ matter
Stakeholders – depend on organisation, only shareholders are considered legitimate
4 Main elements
1. Main objective to maximise profit – contributing to society
2. Companies are not equip to handle social activities
3. Engagement in social responsibility duties , companies primary purpose
4. Pursuit of economic
efficiency will
maximise societal
wealth
, 2.The stakeholder model - related to socio economic – MAIN OBJECTIVE – mediate
between interests
- Mutual dependence between organisations and
stakeholders, equal importance of shareholders and
stakeholders
-Reason for relation – instrumental, normative
4 Main elements
1. Objectives of companies should include
corporate social responsibility
2. Companies represent multiple interdependent
parties with shared interests
3. Engagement in social responsibility witch
services company's long term interest
4. Pursuit of mutual benefits will maximize
societal health
3 types of stakes:
Equity stakes: are held by those who have some direct ownership of the organization,
eg; shareholder, directors or minority interest owners.
Economic of market stakes: are held by those who have an economic interest, but
not an ownership interest, in the organization eg; employees, suppliers and customers.
Influencer stakes: are held by those who don’t have either an ownership of economic
interest in the actions of the organization, but who have interests as consumer
advocated, environmental groups, trade organizations and government agencies.
Comparing models
Input output model
Shareholder: anyone who owns a share of the organization (VB stock or supplies
Stakeholders depend on organization
Only shareholders are considered legitimate
Reasons for relations:
– instrumental – a means to an end
Stakeholder Model
Mutual dependence between organization and stakeholders
Equal importance of shareholders and stakeholders
Public Relations - Function or activity that aims to establish and protect the
reputation of a company or brands, and to create a mutual understanding
between the organization and the public
→ Management of Communication of the Organoization, ex: negotiation on points
of view and binding interests (Grunig)
→ Development of relationships to help communicate about an organization,
issue, person or product (Gordon)
Mutual understanding: the degree of consistently between how an
organization wishes to be seen and how its actually seen in the public
Reputation - overall assessment of an orgorganisation by its stakeholders
- Represents the emotional reaction of customers, investors, employees
and public (good, bad, weak or strong)
- includes 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
History of PR:
PR always existed informally, role in capturing the attention of the public and
mobilizing citizens. Some of the oldest PR material connected to political
propaganda or recruitment for wars
1900s
- Industrial revolution
- Development of advertisement as a structured concept, PR became
more formalized
- Foundation of Publicity Bureau in Boston, similar in UK
Edward Bernays
- Considered founding father of PR as a
discipline
- Nephew of Freud, influenced by his
theories about the subconscious
Introduced the concept of the focus group
,Introduced concept of focus group and worked with tobacco brands and other
controversial products
“Bacon & Eggs” → When Bernays was asked by the Beechnut Hacking
Company to improve its bacon sales, he devised a campaign to turn bacon and
eggs into the quintessential American breakfast. 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. [strategic PR]
Torches of Liberty → taboo about women smoking in pubic
1980s
Restructuring trend - all activities within an organization evaluated on the
basis of what they contribute to the organisation.
- Comm professionals are consolidated in PR departments and procedures (ex:
comm guidelines) are established for the whole org
[+] PR start being recognized as a function the whole org benefits from [-] no
consideration is given for the role of stakeholders
1990s
Strategic Positioning - org use PR as a way to achieve a competitive corporate
identity
- Comm professionals have the role to shape an org’s brand, which can be
conveniently “positioned” within the minds of stakeholders
[+] PR become a crucial strategic tool for org to be more profitable
[-] stakeholders are considered passively, as receivers of messages that can
easily be controlled and managed
2000s
Stakeholder Engagement - thanks to new media, stakeholders become real
participants in an org’s PR
- Old principles of strategic comm still apply, but the relationship with
stakeholders becomes a dialogue rather than a one-directional comm
[+] stakeholders can be “activated” and become advocates for the org
[-] org will be held to substantially higher standards of transparency and genuine
behavior
Today... main challenges?
- PR is more complex, technical and precise
- Divided into different areas, require
different talents and specializations
- Driven by technological changes (new
media)
, LECTURE 2
Stakeholder communication
ORGANISATION – composed by stakeholders
1.Identifying stakeholders
Stake – “right to land” – symbol of having a
interest
A stakeholder is any group or individual who can
affect or is affected by the achievement of the
organisations purpose and objectives.
(dependant on the organisation) costumers,
government, competitors, shareholders …
Primary stakeholders – eg; costumers
Secondary stakeholders – individuals
who more broadly affect or are affected by
your actions – eg; governments, media
DIFERENCE – secondary stakeholders are
not part of day to day operations only when enterprises come into play
Neo-classical economic: purpose of organization is to make profit by doing so that
business contribute to wealth for itself as well as society at large (maximise profits)
Strategic management - 2 VIEWS
1. The input output model ALSO CALLED – share holder model – related to (neo-
classical economic) – MAIN OBJECTIVE – maximise profits – the organisation works like a
pie, the only organisations that have a piece of the pie are important/ matter
Stakeholders – depend on organisation, only shareholders are considered legitimate
4 Main elements
1. Main objective to maximise profit – contributing to society
2. Companies are not equip to handle social activities
3. Engagement in social responsibility duties , companies primary purpose
4. Pursuit of economic
efficiency will
maximise societal
wealth
, 2.The stakeholder model - related to socio economic – MAIN OBJECTIVE – mediate
between interests
- Mutual dependence between organisations and
stakeholders, equal importance of shareholders and
stakeholders
-Reason for relation – instrumental, normative
4 Main elements
1. Objectives of companies should include
corporate social responsibility
2. Companies represent multiple interdependent
parties with shared interests
3. Engagement in social responsibility witch
services company's long term interest
4. Pursuit of mutual benefits will maximize
societal health
3 types of stakes:
Equity stakes: are held by those who have some direct ownership of the organization,
eg; shareholder, directors or minority interest owners.
Economic of market stakes: are held by those who have an economic interest, but
not an ownership interest, in the organization eg; employees, suppliers and customers.
Influencer stakes: are held by those who don’t have either an ownership of economic
interest in the actions of the organization, but who have interests as consumer
advocated, environmental groups, trade organizations and government agencies.
Comparing models
Input output model
Shareholder: anyone who owns a share of the organization (VB stock or supplies
Stakeholders depend on organization
Only shareholders are considered legitimate
Reasons for relations:
– instrumental – a means to an end
Stakeholder Model
Mutual dependence between organization and stakeholders
Equal importance of shareholders and stakeholders
