3: CorporateCommunication definition25-3.pdf

# Evolution of public relations and corporate communication This topic traces the historical development of public relations from its early, one-way communication approaches to the more strategic, relationship-focused practices of modern corporate communication [11](#page=11). ### 1.1 Defining public relations and corporate communication There has been considerable confusion and the use of various labels for the communication function within organizations, including Public Relations, Corporate Communication, Communication Management, and Strategic Communication. From the 1970s onwards, the term "Public Relations" was broadly used to describe communication with stakeholders. However, increased demands for communication from internal and external stakeholders led to a broader perspective on communication. The Public Relations Society of America defines public relations as "a strategic communication process that builds mutually beneficial relationships between organizations and their publics". James E. Grunig emphasizes that public relations must be managed strategically to contribute to organizational effectiveness. The Bled Manifesto views public relations as a strategic process from an "outside" perspective, concerned with an organization's inclusiveness and its "license to operate," akin to marketing's market view [10](#page=10) [3](#page=3) [4](#page=4) [9](#page=9). ### 1.2 Phases of public relations evolution The evolution of public relations can be categorized into distinct phases: #### 1.2.1 The first phase: "The public be damned or ignored" (1850-1900) This era in America was characterized by technological expansion and a widening gap between the rich and the poor, embodied by "robber barons" like Rockefeller and Carnegie. The prevailing attitude was a focus on shareholders rather than the public, leading to a "Publicity Model" of communication [12](#page=12). #### 1.2.2 The second phase: "The public be informed or served" (1900-1920) The rise of muckrakers and journalists as "affection recruiters" marked this period. This phase saw the first attempts at professionalizing Public Relations, with Ivy Lee issuing a declaration of principles in 1906. The core idea shifted to informing and serving the public, recognizing the importance of public opinion [13](#page=13). #### 1.2.3 The third phase: "The public be educated and respected" (1920-1945) Public relations became more established as a professional discipline, influenced by fields like political science and sociology. Market research gained importance, as seen with General Foods in 1926. Universities like Yale, Harvard, and Columbia began offering PR courses. The economic crisis of 1929-1930 shocked public opinion, prompting companies to seek new methods to restore confidence and emphasizing social responsibility. Companies started establishing dedicated PR functions and departments. This phase is associated with the "Public Information Model" [14](#page=14) [15](#page=15). #### 1.2.4 The fourth phase: 1945 until now This phase can be further divided: ##### 1.2.4.1 1945-1968: "The public be known" This period saw the founding of the "PR Society of America" in 1942 and the expansion of PR departments in university colleges between 1945 and 1948. Public relations became closely aligned with business goals of profit and promotion, acting as part of marketing and product promotion. This aligns with the "Two-Way Asymmetric Model" [16](#page=16). ##### 1.2.4.2 1968-1980: "The public be involved" Influenced by social movements like "flower power," this period saw an emphasis on "well-being" and a growing emancipation. Business goals were no longer the sole focus, with a strive for "public understanding" amidst influences like neo-marxism. The Public Relations Officer evolved into an analyst, negotiator, and policymaker [17](#page=17) [18](#page=18). ##### 1.2.4.3 1980-Present: "Corporate Dialogue" This era emphasizes innovation within organizations, socialization, and an evolution from social obligation to social corporate responsibility and responsiveness. This stage is characterized by the "Two-Way Symmetric Model" [18](#page=18). ### 1.3 Global evolution of public relations The development of public relations varied globally: * **United States and Germany:** Latter part of the 19th century [19](#page=19). * **United Kingdom:** Mid-1920s [19](#page=19). * **Rest of Western Europe:** After World War II [19](#page=19). * **Rest of Europe:** From the 1950s onwards [19](#page=19). * **Soviet bloc of Eastern Europe and China:** Suppressed until the early 1990s [19](#page=19). ### 1.4 Grunig's four models of public relations James Grunig and David Hunt developed four models to describe the practice of public relations: #### 1.4.1 Publicity model (press agentry model) * **Purpose:** To generate as much publicity as possible [21](#page=21). * **Nature:** PR is equated with propaganda; complete truth is not essential [21](#page=21). * **Communication:** One-way, sender-directed [21](#page=21). * **Research:** No research is conducted [21](#page=21). * **Current Practice:** Still practiced in sports, theatre, and product promotion [21](#page=21). > **Tip:** This model is characterized by a lack of ethical consideration and an emphasis on sensationalism over factual accuracy. #### 1.4.2 Public information model * **Purpose:** Dissemination of information [24](#page=24). * **Nature:** Truth is important [24](#page=24). * **Communication:** One-way communication; the PR officer acts similarly to a journalist [24](#page=24). * **Focus:** Strong media orientation [24](#page=24). * **Current Practice:** Used by government, nonprofit associations, and businesses [24](#page=24). > **Example:** A government agency issuing press releases about new public services would be an example of the public information model. #### 1.4.3 Two-way asymmetric model * **Foundation:** Based on social sciences [25](#page=25). * **Communication:** Two-way communication, but sender-oriented [25](#page=25). * **Approach:** Employs scientific persuasion [25](#page=25). * **Research:** Uses formative and evaluative research to understand and influence attitudes [25](#page=25). * **Current Practice:** Common in competitive businesses and agencies [25](#page=25). > **Tip:** While it involves two-way communication, the ultimate goal is to persuade the public to accept the organization's viewpoint, not necessarily to change organizational behavior. #### 1.4.4 Two-way symmetric model * **Foundation:** Based on mutual understanding and balanced effects [26](#page=26). * **Communication:** Two-way communication with balanced effects; fosters dialogue [26](#page=26). * **Research:** Utilizes formative and evaluative research focused on understanding [26](#page=26). * **Current Practice:** Practiced by regulated businesses and agencies [26](#page=26). > **Example:** A company holding focus groups to understand consumer needs and then adjusting its product development based on that feedback exemplifies the two-way symmetric model. ### 1.5 Conclusion on the evolution of public relations The models developed by Grunig and Hunt in 1984 are often found in mixed forms today. The evolution of public relations has moved towards mutual acceptance of behavior and policy, from manipulation to relationship building, from one-way to two-way communication, from monologue to dialogue, and from earning understanding to building mutual understanding. It has shifted from solely serving the interests of the company or client to serving common interests. History demonstrates PR's development from manipulation to dialogue [27](#page=27) [28](#page=28). Public relations can be defined as planned communication and/or relationship-building activity with strategic or deliberate intent, managing relationships and maintaining reputation. It aims to create awareness among specific publics or stakeholders and has historically been enacted through the media as a gatekeeper of communication. Ethical communication is fundamental to professional public relations [28](#page=28). In many countries, the term "Corporate Communication" or "Corporate Communications" has replaced "Public Relations". However, other labels like "strategic communication management" and "communication management" are also used [29](#page=29). --- # Relationship between corporate communication, public relations, and marketing This section examines the evolution and integration of corporate communication, public relations, and marketing, outlining various models that describe their interaction. ### 2.1 Historical perspectives and evolving models The relationship between marketing and public relations (PR) has transformed significantly over time, moving from distinctly separate functions to increasingly integrated ones, with corporate communication emerging as an overarching management framework. #### 2.1.1 Model A: Distinct functions (Pre-1980s) Historically, before the 1980s, marketing and PR operated as separate entities with different objectives and activities [31](#page=31). * **Marketing:** Its primary aim was to interact with markets, sensing, serving, and satisfying customer needs profitably [31](#page=31). * **Public Relations:** This function focused on managing relationships with all publics, excluding customers and consumers, to foster goodwill and prevent these publics from hindering the company's profit-making ability [31](#page=31). #### 2.1.2 Model B: Shared common ground and increasing integration (Since the 1980s) Since the 1980s, marketing and PR began to find common ground, leading to an increased use of Marketing Public Relations (MPR). MPR involves publicizing news and events related to product and service launches and promotions. The emergence of branded content in the 2010s, driven by social media channels, further blurred the lines, creating a mix of marketing and PR content. MPR today encompasses product publicity, sponsorship, branded content, and corporate advertising [32](#page=32). #### 2.1.3 Model C: Marketing subsumes public relations (Post-2010s trend) In some organizational structures, marketing has become the dominant function, absorbing PR into its wider scope to ensure customer satisfaction. This perspective aligns with Integrated Marketing Communications (IMC), a strategic approach that combines disciplines like advertising, direct marketing, sales promotions, and PR to achieve clarity, consistency, and maximum communication impact. Within this model, PR's role is often reduced to product publicity and sponsorship [35](#page=35). > **Tip:** Integrated Marketing Communications (IMC) emphasizes a unified message across all communication channels to enhance impact. #### 2.1.4 Model D: Public relations as the coordinating function Conversely, some models place marketing under the umbrella of public relations, ensuring that the goodwill of all key publics is maintained. In this strategic PR approach, all communication programs, including integrated marketing communications, advertising, and MPR, are coordinated by the PR department. The broader PR function acts as the central point of coordination [36](#page=36). #### 2.1.5 Model E: Merged external communication function A less common model envisions marketing and PR merged into a single external communication function, often overseen by a Vice President of Marketing and Public Relations [37](#page=37). ### 2.2 Corporate communication as a management framework Corporate communication is defined as a management framework designed to guide and coordinate both marketing communication and public relations. It provides an organizational structure where public relations and marketing communication are distinct but complementary elements within the overall communication strategy [39](#page=39) [40](#page=40). ### 2.3 Evolution of PR objectives towards corporate communication objectives Public relations objectives have increasingly aligned with and broadened to become corporate communication objectives. This shift reflects a move towards greater strategic alignment and a more holistic approach to organizational communication. Key objectives now encompass [42](#page=42): * Alignment and influencing the social environment [42](#page=42). * Gaining acceptance of company policy, both internally and externally [42](#page=42). * Fostering transparency and demonstrating social responsibility [42](#page=42). * Sponsorship and political responsibility [42](#page=42). * Building and supporting the corporate image [42](#page=42). --- # Key definitions and characteristics of corporate communication Corporate communication is a crucial management function that orchestrates all internal and external communications to build and maintain favorable reputations with dependent stakeholder groups, thereby securing the company's future success [2](#page=2) [44](#page=44). ### 3.1 Definitions of corporate communication Various experts define corporate communication as a strategic management tool with the primary goal of fostering positive relationships with essential stakeholders. * **Van Riel's Definition:** Corporate communication is viewed as a management instrument that harmonizes all consciously employed internal and external communication forms to achieve optimal effectiveness and efficiency. Its overarching objective is to establish a "favorable basis" for relationships with groups crucial for the company's survival [44](#page=44). * **Cornelissen's Definition:** Cornelissen defines corporate communication as a management function that provides a framework for the coordinated management of all internal and external communications. This coordination aims to establish and maintain favorable reputations with stakeholder groups on which the organization relies [44](#page=44). > **Tip:** Both definitions emphasize that corporate communication is not merely about sending messages, but about strategically managing communication as a core business function to build and protect the organization's reputation among its key publics. ### 3.2 Objectives of corporate communication The fundamental objective of corporate communication, as highlighted by the definitions, is to create and maintain a "favorable basis" or "favorable reputations" with stakeholder groups upon whom the company's existence and success depend. These key stakeholders include [44](#page=44): * Shareholders and investors [2](#page=2). * Customers and consumers [2](#page=2). * Employees [2](#page=2). * Members of the community in which the company operates [2](#page=2). ### 3.3 Characteristics of corporate communication Corporate communication possesses several defining characteristics that underscore its complexity and strategic importance. * **Complexity:** It is inherently complex, particularly for organizations operating across wide geographical areas or offering a diverse range of products and services [45](#page=45). * **Integrated Approach:** Effective corporate communication demands an integrated approach to communication management. This integration is essential for safeguarding the strategic interests of the organization as a whole [45](#page=45). * **Organizational Principle:** Increasingly, communication is recognized not as a peripheral activity but as the organizing principle behind many significant business decisions. As R. Edelman noted, "We used to be the tail on the dog, but now communication is the organising principle behind many business decisions." [45](#page=45). > **Example:** A multinational corporation launching a new product globally must consider how its internal communications to employees in different regions align with its external marketing messages and public relations efforts in each market. This requires an integrated and complex communication strategy to ensure a consistent and favorable corporate image. --- # Theoretical models of public relations This section details the four primary theoretical models of public relations as proposed by James E. Grunig, outlining their core principles, communication flows, research applications, and typical organizational contexts [20](#page=20). ### 4.1 The publicity model (press agentry model) This model is characterized by its primary objective of generating as much publicity as possible, often equating public relations with propaganda. In this approach, complete truth is not considered essential. It is a one-way communication process where information flows from the sender to the receiver without feedback. There is no emphasis on research and the communication is sender-directed. This model is commonly practiced today in fields such as sports, theatre, and product promotion [21](#page=21). > **Tip:** The publicity model prioritizes visibility over accuracy and is often associated with creating buzz rather than fostering genuine understanding. ### 4.2 The public information model The public information model focuses on the dissemination of information to the public. It is a one-way communication process where the truth is considered important. The public relations officer in this model functions similarly to a journalist, acting as a conduit for information. This model is strongly media-oriented and is frequently practiced by governments, nonprofit associations, and businesses [24](#page=24). > **Example:** A government agency releasing a press release detailing new policy changes would be an example of the public information model in action. ### 4.3 The two-way asymmetric model This model is grounded in social sciences and utilizes two-way communication, but it remains sender-oriented. It aims for scientific persuasion by employing market research, which includes both formative and evaluative research of audience attitudes. The goal is to influence public behavior to benefit the organization. This model is typically practiced by competitive businesses and agencies [25](#page=25). > **Tip:** While this model involves feedback, its ultimate aim is to shape public opinion in favor of the organization, rather than to achieve mutual understanding. ### 4.4 The two-way symmetric model The two-way symmetric model is based on achieving mutual understanding between the organization and its publics. It involves balanced, two-way communication where effects are considered mutual. This model emphasizes dialogue and aims to foster understanding through formative and evaluative research focused on achieving that mutual comprehension. It is commonly practiced by regulated businesses and agencies where open communication and public trust are paramount [26](#page=26). > **Example:** A company holding public forums to discuss and address community concerns about a new development project, incorporating feedback into their plans, exemplifies the two-way symmetric model. --- ## Common mistakes to avoid - Review all topics thoroughly before exams - Pay attention to formulas and key definitions - Practice with examples provided in each section - Don't memorize without understanding the underlying concepts

| Term | Definition | |------|------------| | Corporate Communication | A management framework or function that guides and coordinates all consciously used internal and external communication forms to establish and maintain favorable relationships with dependent stakeholder groups, aiming for organizational effectiveness and a favorable basis for operations. | | Public Relations (PR) | A strategic communication process that builds mutually beneficial relationships between organizations and their publics, aiming to create awareness, manage reputation, and achieve organizational goals through planned communication and relationship-building activities. | | Stakeholders | Key groups or individuals upon whom a company is dependent and with whom it must maintain relationships. This includes shareholders, investors, customers, employees, and members of the community in which the company operates. | | Public Relations Society of America (PRSA) | A professional organization for public relations practitioners that defines PR as a strategic communication process building mutually beneficial relationships between organizations and their publics. | | The Bled Manifesto on Public Relations (2002) | A document that outlines four key characteristics of public relations and corporate communications: reflective (analyzing societal values), managerial (implementing policy), operational (executing communication plans), and educative (developing suitable communication behavior). | | Marketing Public Relations (MPR) | The use of public relations techniques to support marketing objectives, often involving publicity, event management, and content creation related to product launches and promotions. | | Integrated Marketing Communications (IMC) | A strategic plan that combines various communication disciplines such as advertising, direct marketing, sales promotions, and public relations to ensure clarity, consistency, and maximum communication impact from an organization's messaging. | | Publicity Model (Press Agentry Model) | An early model of public relations characterized by one-way communication, propaganda, and a focus on generating as much publicity as possible, often disregarding complete truth, and practiced today in areas like sports and product promotion. | | Public Information Model | A model of public relations focused on disseminating information through one-way communication, where truth is important and the PR officer acts similarly to a journalist. It is strongly media-oriented and practiced by governments and non-profit associations. | | Two-Way Asymmetric Model | A model of public relations based on social sciences, employing two-way communication but oriented towards the sender. It utilizes scientific persuasion and market research to influence attitudes, often practiced by competitive businesses. | | Two-Way Symmetric Model | A public relations model based on mutual understanding and balanced effects through two-way communication. It emphasizes dialogue and uses formative and evaluative research to foster understanding, typically practiced by regulated businesses. | | Branded Content | Content that is produced by a marketing department for promotional purposes but is designed to be engaging and entertaining, blurring the lines between traditional marketing and public relations content, especially with the rise of social media. |