.

rac ti c e that addres s espubl i c pol i c y and the publ i c s w ho i nfl uenc e s uc h pol -

FIG URE I . 3 PUBL IC AF F AIRS OB D E S C R I P T I O N icy."toO survev of public affairs officers identilied their major responsibilities
as i nc l udi ns (i n des c endi ng order) federal gov ernment affai rs . s tate s ov ern-
ment affai rs . l oc al gov ernment affai rs . c ommuni ty rel ati ons . pol i ti c al ac ti on
c ommi ttees , c ontri buti ons . gras s -roots s upport. and i s s ues menagement.l
Public Affairs Fortl --three perc ent of thei r departments us e the ti tl e "publ i c atTai rs .'Other
commonly used titles include "corpoiate affairs." ''corporate relations." and
'

lf ^- ^ -c x ternal affai rs ."rsThe prac ti c e c an be defi ned as fol l ow s :

l-lartol,l
av
- efs
-- -
Times Minor Cable Television, one of the Iargest muttj- P ubl i c affai rs i s a s pec i al i z ed part of publ i c rel ati ons that bui i ds and
cable lvstems in the nation, has maintained its commit'
menl to bring oualrr,v eatedalnmert and seM( es to Lhe
mai ntai ns gov ernmental and l oc ai c ommuni ty rel ati ons i n order to i n-
marketplace. This continued demand for excellence fl uenc e publ i c pol i c y ,
.rupleC wiih ne,! gio*.th has created I addtricn3i
openings for Pubiic Affairs Managers Grow i ng i ni ::.:-.i i r publ i c affai rs paral l el s hi gh turnov er In qorernment.
;\e 5u(ce55tul (rnJrdalei ( j -'J 'J:lL
c hanges i n c ommuni c a[i on. i nc reas i ns i n:ptl rtanc e of s tate and l oc al s ov erl -
ment to develop and implement broad-based Public
afiairs programs at subsidiar-i cable TV svstems naticn ments . and a more c ompl ex regul atorY env i ronment. For ex ampl e. term l i mi ts
wide Othef responsibilitjes wiil include insuring iranchise imposed on elected officials and voter dissatisfaction with those in office have
ccmpiiance. Produciig press releases aad othe. media.
developing and rmplementing srategies to resolve produc ed unprec edentc d l ev el s of turnov er i n al l l ev el s of gov c rnment. S uc h
reoulatow oroblems. and conducting a communln' turnov er i nc reas esthe pow er of s taff members .w ho mav outl as t the el ec ted
ri r d L L r" L a . : : : ...... ... ,-T.,.:,,i ,
ft':dl l Li 5 P u g l o : r' --: : i':- :::-.-a::::.: :l .. :.
tion. it is crucial that applicants are wiiling to scrK in a stafi
suoDort role. ei ec ted offi c i al s .The Internel . 24-hour new s c hannel s .C -S P A N . and s atel i i te
For ihis positicn. ue are seekrng Public :ciio*-ori€nted l i nk s rv orl drv i degi v e c ons ti tuenc i esi ns tant ac c es sto ev ents around the gl obe.
indruduai5 * th a BA dpg'ee dnd a mlnlrun of ! yeats Federal budget c uts and dc c entral i z ati on of man.v gov ernmental programs
direci hands-on experience in at le3st 2 oi the following:
ooverlmptt reld!Jn5. Dublt( relarlons. ccrmunin afrarts rnc-.r that qovernment relations specialists must also follow programs trom
or the cablp ,ndustj-' Crcd sord ano c( e iaw ceEf-e W as hi ngton. D C . to s tate c api tal s and c i ty hal l s .A l l of thes e c hangesc oi nc i de
would be a definite Plus. Other.equirefre.Ls include:
skills as well as
rv i th i nc reas edgov ernmental and pres ss c ruti nv of thos e engagedi n publ i c af-
strong oral and u'titlen communications
knowledge of local govemment and. or Public sectol fai rs rv ork . w i th rul es anc l regul ati ons c ons tantl y c hangi ne.l qIn s hort. publ i c
regulatory functjons. affai rs rv ork i s oc c uri ng i n an i nc reas i nel yc ompl ex env i ronment.
We are a subsidiary of The Times Mirior Company and
cffe. an attractive comP€nsatjon and benefits package
patC
!ssuesManagement
rncluding free oentai insutance and a companr
pension plan. lf you are a talented. assertive and skjlled ' fw o poi nts c apture the es s enc eof i s s uesmanagement: (1) earl v i denti fi c ati on
proiessional. we encourage you to erplore cu. cafee.
oDpcr,unities. Fcr immediare consi,ie.alon Please send
of i s s ues w i th potenti al i mr;ac t on an organi z ati on. and (2) a s i rategi c re-
ycur resume and iequrfemenls:o the tluDaD \i l ( ns c dc s i gnqCt,r mi ti gel e nr c l pi t:l i z e t' n l hei r c ons equ' i nc es For
. c rrmnl c .
-iary
Dcp.rtnc[t, Tlucs,lllrror Crble
hcsouccs
trytne' CA92?13.
i r the.ontex l of publ i c opi ni on. i s s ues menagement "attempts to di s c e;:l
Iclcvblon. P.O. Box 19398,
(ito phou. calls plca*.) trends i n publ i c opi ni on s o that an organi z eti on c an res pond to tl i em betore
thev amplifv into serious conflict."r0 As part of the public relations function.
T I M€ s MI RR{ ] R issuesmanagement is defined as follorvs:
CAEILE TELEVISIG,I\I
,,,* ir
lssues management is the Proactive Process of anticipating, identifying,
We a r e a n e q u a l g D p o r tu n l ]- e fi Pl o ve r a n d
{i* e n ccu r a g e w o r n e n a n d m r n o n ti e s to a Pp l 't e.al r:ati n:, and res oondi ng to publ i c pol i c y i s s ues that affec t organi z a-
ti ons ' rel ati ons hi psw i th thei r publ i c s .
.t .:

When issues management operales in areas of public policy, it is part of

CourresyTimes Mirror CableTelevisron public affairs. which in turn is part of the larger public relations function. As
orieinally introduced by public relations consultant W Horvard Qhase in
lobbving 1976.i s s uesmanaqement i nc l udes i denti fy i ng i s s ues .anal v z i ng i s s i ress. etti ng
relarions counseling firms use the public affairs label for their
public pol.icl pri ori ti es ,s el ec ti ngprogram s trategi es i.mpl enenti ng programs of ac ti on and
sovernmental relations sen'ices related to affecting
- - c ommuni c ati on. and ev al uati ns effec ti v enes sH . e s ai d the proc es s"al i gns c or-
A p u b lic a ffa ir s speci al i strecentl y cl ari fi ed the rel ati onshi p betw een
a n d p u b l i c affai rs as fol l ow s:..publ i c affai rs i s the publ i c rel i
lic r e la iio n s
Chapter I Introduction to ContemDorary Public Relations l7

t5 Part I Concept, Practitioners, Context, and Origins

 {
1
p o r a te p r in cip le s.p o li ci es and practi cesto the real i ti es of a pol i ti ci zed
omr'."11 N'fore recently. Chase has defined issues management as the
t o f clo sin g th e ' ' g a p b etw een corporate acti on and stal (ehol der expectrti on.
i
A p a n e l o f e xp e r ts e xpanded the defi ni ti on beyond the publ i c rel ati ons
tio n .
{ those who petition the government professionally to register and to rcport in-
4:
I lssues m anagement l s i l ]c m anagem ent pr oc c s s u,hos e c ol i i s to hc i p pr e
m ar kets- r educe r isk . c r eete oppor tuni ti c s and m anaqe i m age as an or gani z
assetfor the benefit of both an organizationand its primar' stakeholdcrs.
I
T}
4
accomplishedby: anticipatine.researchingand prioritizine issues;assessing
lt
'il lmpact ot lssues on tbe or_qanization:recommending policies and
-\tr:rtegies
minimize r isk and s ei z e oppor tuni ti es . par ti c i pati ng and i m pl em enti ne s ti a
evaluatins pr o- qr anti m pac t.:l
Eve n th o u ,g hissuesmanaqementw as ori ei nal l v touted as a nel r,e
th a t wo u ld g ive p r a cti ti oners new status.manv practi ti oners do not see i t
an-v-thingdifferent from rvhat they' alreadv do. Others express concern t
the term susgestssomething unlikel,v and unacceptable because it sets up
sio n s o f m a n ip u la tio n-that an orsani zatj on can ,.managc" ri rl j or puhl i i
su e s. M a n y m a jo r co rporati ons. how ever. have created i ssues man
u n its. o r ' - ta sk fo r ce s."ei ther bv esrabl i shi nsspeci al i zedsecti ons or bv
ln g e xlstin g se ctio n s of the publ i c rel ati ons deoartment. Thev concsrn t
se ive s with h o w to r esponC to publ i c concerns about dor.vnsi zi nqi nd
clo sin ss.g lo b a liza tio n and the exportati on ofj obs. bi otechn.rogv
i geneti c
g in e e r in g ) . d a m a g e to the ozone i aver (cre..nhi )use effect). tori c r,l tsr.
p o sa l, m a n a g e d ca r e in heal th care,an agi ng popul ati on, and corporal e i n
e n ce in o o litics.
Conceptually, if not alwavs administratively..issues management ls pafi
the public relations function. \!l,en viewed mereiv as persuaslve cominunr
tio n to in flu e n ce p u b li c pol i cv. hor';ever.i t beccmes part oi tacti ci .l C eci
m a kin s. n o t p a r t o f an or_sani zati on'sstratesi c pi anni ne. When ccnce
ir with a d ju stin e th e o ig ani zarron and bui i ci i ng rel ai i onshi p: w i Lh steker
to a ch ie ve m u tu a l q o al s."pubi i c rcl ati ctusani l i ssues ml tnagement are
similar and result in similar outcomes.''rr
Lobbying
Lobbvin,e. an even more specialized-and criticized-part oI public a
a tte m p ts to in ffu e n ce l egi si ati ve and regul atorv deci si ons i n gol ernn
Eve n th o u q h th e L r .S.Consti tuti on protects the ri ght to peti ti on the g,_rv
m e n t. so m e vie w lo b b y i ng as an atl empt to mani pul ate qovernment for se
ends. lylovies and television depicting smoke-filled rooms and payoffs bv
byists working for powerful corporate and special inrerests perpetuate I
cvnical vieiv of lobbvine. News stories sometimes report illegni or questi,
able cash contributions to legislators. lavish fund-raising parties. and host
weekends at exotic resorts desisned to corrupt the democratic process a
co m p e titive fr e e e n te r pri se. H ow ever. i t typi cal l v takes the form of open
vocacv on matters of public policy.
t8 Part I Concept, Pracritioners,Contexland Orieins
Lobby i ng i s a s pec i al i z ed part of publ i c rel at:ons that bui l ds and mai n-
tains relations with government primarily for the purpose of influencing
legislation and regulation.
Federal and state laws open most lobbying to public scrutiny bi requirinu
come sources and expenses. Registration laws and their enforcement vary
from state to state, but all who enga_qein lobbying the U.S. Conqress are re-
qui red to report tnel r ac i l v l i i c s al ti ex penc i i ruresunder the Federal R egui a-
tion of Lobbying Act (see chapter 6). In spite of occasional abuse and public
rebuke, lobbying remains a legal and accepted way for citizen groups. associa-
tions, labor unions. corporations, and other special-interest to influ-
-sroups
enc e s ov ernment dec i s i on mak i ng. A l though c l earl v l abel ed and moni tored
at national and state levels. similar lobb_v"ing efforts on couni-v :rnd nrunic:prl
issues often are part of and unditTerentiated from public atTairs.communitv
relations, or other public relations efforts.
Lobbyists at all levels of government must understand the legislative
process, know how government functions. and be acquainted with individual
lawmakers and officials. Because such topics are not part ofmanv public rela-
tions practitioners' educational preparation or work experience. lobbvists
typically have backgrounds as well-connected lawyers. governmental admin-
istrators, elected officials' important staff members, or other insiders rvith
good relationships with important governmental decision makers. In fact. crit-
ics say that lobbyists "sell'' the influence they earned while workins for gov-
ernment to s pec i al i nteres t groups that w ant to i nfl uenc e the l obbfi s ts ' for-
mer colleagues.
The number of l obbi ri s tshas i nc rc as c d dramati c al l v i n rec ent y ears . For
ex ampl e, betw een 1975 and 1990,the number of l obby i s ts res i s tered w i th the
U.S. Senate increased from about 3.000 to more than 33.000.About three of
every four companies with sales of $100 miliion or more have staffs engaged
in lobbying. One publication iists more than 14.000people and firms who rep-
resent 12.500 domestic and foreisn businesses.trade associations.unions. and
other advocacy groups.2s
In W as hi ngton. D C . and s tate c aprtal s . l obbl ,i ng i s c l os el v rel ated to
"qrassroots lobbying" and "political action." For example. the two sides for
and agai ns t deregul ati ngA meri c a' s el ec tri c pow er i ndus try s pent $32 mi l i i on
i n one y ear l obby i ng on C api tol H i l l . A ddi ti onal mi l l i ons w ere "poured i nto
research, polling, television advertisins and stirring up grass-roots action.''2o
In practice, tobbying must be closely coordinated with other public rela-
ti ons efforts di rec ted to nongov ernmental publ i c s .S ophi s ti c atedc ommuni c a-
tlon attempts to mobilize like-minded constituents so that thcir voiccs will be
heard by lawmakers and officials in government. Computerized mailing lisls.
high-speed printers. and software for individualizing letters can produce a
flood of.mail, phone calls, faxes. and personal visits from constituents. Cus-
tomized e-mail address lists; news groups, forums, and list servers on the In-
ternet; and "blast" or broadcast faxing provide even faster ways to mobilize
c ons ti tuents .
Chapter I Introduction to Contemporary Public Relations t9
 is referred to as "grass- ti nues tt l .e horv tL. nl ore effec ti v el v regul ate c ampai gn fi nanc e and l obhl ' i ng.
Getting lhe folks back home to take up the cause
public relations efforts tie- In the erC . how ev er. no l arv c an prev ent thos e determi ned to abus e or c or-
roots lobbfing" and is part of manv coordinated
infli.n.. pubiic policy' In some cases' however' responses actually rupt the right of all citizens to participate in government-to elect or defeat
.f"".a,"
or mislead policy makers re- c andi datesand to peti ti on thos e i n offi c e.
c.r'me from ''front" groups created to deceive
public sentiment on the issue at hand' Former U'S' Senator (Texas)
sarding l nv es tor R el ati ons
i"J rr""tu.y Secretary Lloyd Bentsen referred to such pseudo-grassroots
groups include
.nou"-.nt. as 'Astroturf totbying." Examples of such front Also referred to as "lR" and "financial relations," investor relations is an-
..Citizens for Riverboat Gambling." funded by' a eambling organrzatron tIylng other s pec i al i z ed part of publ i c rel ati ons i n publ i c l y hel d c orporati ons . In-
Kuwait"' funded by
to pass a local referendum, anJ "Citizens for a Free vestor relations specialists work to enhance the value of a companv's stock
tri/ing to encourage U'S' participation in the Persian Gulf and to reduce the cost of capital by increasing shareholder confidence and bi'
*.ulrhy Kuwaitis
give the appearance of
War.:7 Both front orginizations were designed to making the stock attractive to individual investors. financial analysts, and in-
by their sponsors
widespread citizen supporl. when in fnrt the-v rvere created stitutional investors.
ao pronloie narrow lnleresrs.
source of informa- Inv es tor rel ati ons i s a s pec i al i z edpart of c orporate publ i c rel ati ons that
In its primary roles as credible advocate and reliable
form of information designed to persuade bui l ds and mai ntai ns mutual l y benefi c i al rel ati ons hi ps w i th s harehol ders
tion. horvever, totUying takes the
and others i n the fi nanc i al c ommuni ty to max i mi z e mark et v al ue.
Exhibit 1.2). Ltbbvists succeed or fail in part based on their traditional
isee
present convincing com-
pubtic relations ikitlt' th"i. abilities to construct and
Investor relations specialists keep shareholders informed and loyal to a
m u n ica tlo n sto g o ve r n m entoffi ci al s.toqrassrootS consti tuenci es.andtothei r
ti :''t'r:- company in orde r to maintain a fair valuation of a ccmpanv's securities.Their
u r ic,;ij. in a u ;tjo n ic .i l cse i ]l l :..:l es.i :-;:':':i catec kno'^'^erge
processes ls work involves tracking market trends. providing information to financial
ment. legislative process. public policy' and public opinion
dispensing stacks of publics. counseling management. and respondinl to requests for financial in-
neederl. Stereotypic images of the cigar-chomping insider
formation. Annual reports, e-mailed earnings reporrs, and home pages that
cash no longer apply to most lobbyists and their work:
detail corporate financial information are the major strateqies for disseminat-
from gov- ing timely information to analvsts. investors. and the financial press. Here is
Indeed. lobbyistsspendsubstantiallYmore time collectinginformation
strf,iJ:liJS'tl:ic- an example of how it works to benefit both a companv and its investors:
ernment lhan they do communicatingto it' since sound lobbl;ng
tics.and positionsare hlghly depen<ienton a strong bascof information'2s A new biotechnology company has 10 million shares outstanding. with
each share selling for $20. The cornpany has a market value of $200 million.
in a plu- Assume that the stock becomes more attractive to institutional investors. fi-
Lobbying is an outgrowth of our democratic system functioning
government open to those affected by proposed legis- nancial analysts, and individual investors as they learn more about the com-
ralistic soiiety. keepine
state capitals' the pany's products, its management. "financials." and plans. If the share price
lation and government regulation. In Washington' DC' and
increasingly impor- moves to $25, the market value of the company increases to $250 million!
role of lobbying antl othei public affairs efforts will play
policy' The challenge con- Now assume that the company needs $10 million to support expansion or to
tant roles in forrnulatins and implementing public
research promising new products. At $25 a share. it needs to issue oniv
400,000 new shares.versus 500.000 shares at $20. to raise the $10 million to fi-
nance the expansion or researcn. Nor oniy are invesrors hoiciings rvorrh
nor3. but it takes f:'.ver shaies to ;i;se additic;l.l cecital.
On the other hand, c ons i der w hat happens to the v al ue of i nv es tments
and the cost of new capital when a corporation loses shareholder confidence.
fails to respond to analysts'concerns about the latest quarterly earnings re-
port. or receives nesative coverage in the financial press.The potential impact
' "{" "l personallybelievelobbyistshavea very byists againstit' You'll get an educationin a on mark et v al ue and c os t of new c api tal for l arge c orporati ons amounts to
usefulrole. lf you want to find out the real in- hurry They'll give you all the best millions, even billions. of dollars.2e
"lt:T"n*
formation,if you want a breadth of opinion' on both sides'I think the systemworks'"
Investor relations specialists must know corporate finance, accounting.
call the lobbyistswho are for it and the lob- Wall Street, internationalpquities trading (the Tokyo Stock Exchange is the
world's largest). international business trends. the Securities Exchange Com-
Knom ( | 978)'
-Sen. JamesA. McClure (R-lD) from BernardAsbell,fhe SenoteNobody mission and stock exchange financial reporting requirements, business jour-
nal i s m. and muc h more. "P ubl i c rel ati ons prac ti ti oners w ho do not ha.res ol i d
'er
Chapter I Introduction to ContemDoary public Relations 2l
z0 Part I Concept, Practitioners,Context, and Origins
 *#'-1YT5*:::-:
l' s oc i i i i rv c l i rrreeroups .di s eas e res earc h and s c rri c e c hari l i es .and uni v ers i ttc s
..di rec tor of dev el opment." c )rgani z rti ons that rc l r, on mc mbers hi n
FI G URE I . 4 hav e a
I INVEST OR REL ATION S D E S C R IP TION
fees for s ome or al l of thei r rev enues -mus L' ums .z c os . theaters .s v mphon' . r;-
finonre chestras. professional societies. unionS, trade associations. and citizen-action
"
qroups -often hav e a "c l i rec ror oi mc ml ' c t i c r-i i c us an< i' i c i ;i opment

INVE STO R REt ATI O NS D ev el opment i s a s pec i al i z ed part of publ i c rel ati ons i n pri v ate non-
profi t organi z ati ons that bui l ds and mai ntai ns rel ati ons hi ps w i th donors
heiiton(orpoioiion,o high-tech hn Diego-hosed llY5trompony,isrurrenllyseeking and members for the P urP os es of s ec uri ng fi nanc i al and v ol unteer s up-
o seosonedprolessionollo monoge thecompony's progroms.
relolions
inveslor
Port.
Reporlinglo theG0,thesuaesdul ondidote mustbeoblelo eflettively communicole
compony informoiicn ioril oudienes,induding brokers,
shoreholders, onolyis,medro s:rtic;l:l' di:il::
ondemployees. Responsibilities preporotion Development speciaiists work for public broar:icls:i:.1,1
indude:lioison
lo thefinonciol
rommunity;
press
of finonciol releoses; ossisling
[[0 withshoreholderondroodshow meelinqs; develop- prevention and research foundations. communitv arts groups. youth clubs.
menlonddislribufion of inveslor
moleriolsond(ompony 5l0ry;reviewol 5[( filings;
ondmoin and religious organizations. Because these groups depend on donzrtlons.
lenonteof cunenl shoreholder,moilingondfoxlists. memberahip fees. or a combination of the two. thev relv heavii' on annual
campaigns ind special events to call attention to their needs and to soiicit
willposess
Itreideoltondidote l0 yeor:'direcl
experien(e
in inv€slorrelolions
ondrorporole
(ommuniolions, publ i c s upport 3nd c ontri bul i ons .
exreilent
verbol/witlen
communicotionskilk,obilityio deolwithSoordof
l)irectors
ond[xeculive
Slofl,mmputerskilk,ondthehighest
stondords of ethicondintegritJ, A n annual tel ethon. 10K run. open hous e.homec omi ng' or c ei ebri tv auc -
preferied.
i.,18A tion. horvever. represents only a smali portion of a vearlons program de-
s i gned to es tabl i s hand mai ntai n rel ati ons hi psw i th v ol unteers ,al umni . mc m-
Inrelurnforyourexperlire,
weofferonexcellent porkoge,
soloryonribenefits induding
bonus bers. and donors. as well as prospective members and donols. Fund-raising
progroms.
ondslorkoplion Tolokeodvontoge
offtisexrellent pleose
opportunify, submil
activities and membership services make up part of an overall proglam io
. v ?s ,r ,c , r ,!'!qx .g )! ru r rrr)! u r d'

build and maintain relarionships with various publics. This makes develop-
/ /

ronfidencelo: Ile Tiion(orporoiion,

3033 Sdenre Pork ld.,SonDiego,
G 921 21.
tux(619) 552-9745,
Vio[-moillo:retmes@lilon.tom
$/eoreonequol opporluniiy
employer
CourtesyTitan
Corporation,
SanDiego.
training and experience in business.management. and law will appareniiy
I unable to hil even entrv level positions in investor relations." rccording to
1r
searchers who studied CEO perceptions of the function.r')
As a r e su lt, in vestor rel ati ons peopl e combi ne studi es i n communi cat
with coursework in corporate finance. An MBA degree is sometimes seen
necessarv preparation (see Figure 1.4). it also heips to know more than
language. to be widely traveled, and to have studied the rapidly changing
ternational politicai scene. Corporations and investor relations incr
deal in a global economy. Because few practitioners have such requ
knowled_seand background in finance and the competition for those who
is g r e a t. in ve sto r r e lati ons i s the hi ghest-pai dspeci al ty i n publ i c rel ati ons.
Development
As investor relations helps finance publicly held corporatioriS. so do
raising and membership drives provide the financial support needed to
ate charitable and nonprofit organizations. Such organizations typically
th e title "d e ve lo p m ent" for thi s aspectof publ i c rel ati ons.N onprofi r hospi t
ment a significant part of the larger manasement function-pubiic rela-
ti ons -i n nonprofi t or€l ani z ati ons .
Confusion of Terms
The terms discussed in the preceding sections all deal with an organization's
relaiionships with specific groups or publics. They are all parts of the broader
organizational function known as public relations. Some organi-
function on the basis of internal and external publics. l:ter-
-onug.-..rt
zaiions divide the
nal relations deals with pubiics concerned about or involved in the internal
rvorkinqs of the organization. such as emplovees. families of emplovees. and
voluntelrs. Reiations rvirh publics outside the organizarion-lcighbors. con-
sumers, environmentalists. investors. and so forth-are the tesoonsibiiitl of
external relations.
Title confusion is further complicated when the total function is giver
oneofmani ' otherl abel s s uc has C orp?roterel ati ons .C orpordteC ot' |1i .|]tu1rc i l -
tions, LLnivcrsity advancement. hospital reLmions.public affairs. and public in'
of public
futrmation. Whatever name is used, the basic concept and function
relations are similar from one orqanization to the next-large or small. local
or global. All effective organizations eslablish and maintain relationships
identified as important to survival and grorvth. In practice. ho$'ever' too olt3n
employers and clients define public relations narrowly or wronglv by the vari-
ous tasks they assignto it. In one organization..public relations takes the form
of candid. open communication with many publics. In another. it attempts to
maintain a silent. low profile. In one organization the purpose can be to pro-
Chapter I Introduction to Contemporary Public Relations 23

22 Part I Concept, Practitioners,Context, and Origins

9: j;-!.s;xi;l:in
vo ke co n tr o ve r s) ' a n d to mai ntai n an adt'ersari alrel ati onshi p that moti v
a n d a ctiva te s m e m b e r s.In vet another. publ i c rel ati ons tri es to reconci l e
compromise with an important publicr for example. maniiqement ma"
te n r p t to r e co n cile d iiT erencesrvi th a l abor uni on.
L ike wise , p r a ctitioners del i ne publ i c rel ati ons everv dav bv the l i mi t
*,h a t th e v d o a n d b y what thev cal l ''publ i c rel ati ons." For erampl e. manv
p r o d u ct p u b licity b e causethat i s w hat they are pai d to do under the
p u b lic r e la tio n s.Oth e r s see i t as "getti ng i nk" or exposure l n the mass
b e ca u se th a t is th e r r e xperi ence as former j ournal i sts no$ cl ai mi ng to be
lic relations practitioners.
Concerned citizens see frequent references to "PR." "public relati
e n d "fla cks" in p r e ss coverase of oi l spi l l s.i ndustri al tori c w aste l eaks.
ca l ca m p a ig n sh e n a n igans.ci tv hal l corrupti on. and so forth. N '{edi acove
se ld o m a sso cia te sp u b li c rel ati ons w i th posi ti ve stori es of orsenrzati ons
their accomplishments. Books such as PR! A Social Historl' of Spin and T,
Sludge Is Cood for Yotr selectiveiv report post hoc analyses of press aee
a n d a d vo ca cy o n b e h al f of cl i ents and causesl ater proven to be of q
a b le m e r it- T h e r e is little market for books that report al l the good u'ork
b y p u b lic r e la tio n s o n behai t o{ cl i ents and causesj udged to be rvorth',
p u b lic su p p o r t. In o th er w ords. i t dependson w hose si de you are on
it d e p e n d s o n wh ich side l au'yers representi n controversi alcases.
ln short. most people knorv pubiic relations by rvhat they see oI
tions and practitioners do or bv what reported as having been
-qets
th e n a m e o f p u b lic r e lati ons.Fe\1,studythe concept i tsel f or the rol es
r e la tio n s p la ys in o r g a ni zati ons and soci ety.The chal l enge to practi ti one
to d e fin e a n d p cr fo r m publ i c rel ati ons i n w ays consi stentw i th the conte
r a r y m e a n in g o f th is n ecessaryorgani zal i onal and soci al functi on.
T O W AR D R EC O GN IT IO N AN D MA TU R ITY
So m e sch o ia r s cr e r iir pubi i c rei ati ons for the hei gnten-.i attcnti ol i o
accountabiiitv an,i social responsibility among government administr
a n d b u sin e sse xe cu tives(see E xhi hi t 1.3.pg.2o). Others poi nt to the funcl
r o le in m a kin g o r g a n izati onsresponsi veto publ i c i nterestsand to i ts cont
tion to the public information svstem that is essential to a democratic
Public relations deserves credit for establishing and sustaining the
nection between public support and organizational management's heigh
a tte n tio n to so cia l r e sponsi bi l i tv and to l eadershi p i n personal stand
b e h a vio r . As o n e b u sinessl eader l ong ago sai d."We know perfectl v w el l
business does not function by divine right. but. like anv other part of
. Todav's
e xists with th e sa n ction of the communi tv as a w hol e.
opinion, though it may appear as light as air, may become tomorrow's le
tion for better or worse."3l
Pu b lic r e la tio n s a lso hel ps organi zati onsanti ci pate and respond to
perceptions and opinions, to new values and lifestyles. to porver shifts a
24 Part I Concept, Pmctitioners,Context, and Origins
the el c c toratc and ui thi n l egi s l ati ."ebodi es .and to other c hangesi n the env i -
ronmc nt. Thi s c ontri butes to rnak i ns the c l emoc rati cproc es s -as l v el l as the
s oc i al . ec onomi c , and pol i ti c al s v s tems -more effec ti v e i n meeti n-s s oc i al
needs .l V i thout effec ti v e publ i c rel ati ons .organi z ati onstend to bec ome i ns en-
s i ti v e to c han_ees oc c urri ns around them and to bec ome dv s func ti onalas thev
grorv i nc reas i ngl yout of s tep w i th thei r env i ronments .
P ubl i c rel ati ons al s o mak es i nformati on av ai l abl e through the pubi i c i n-
formati on s y s tem.P rac ti ti oners i nc reas epubl i c k now l edge and untJ ers tandi nq
by promoti ng ex pres s i onand debate i n the c ompeti ti v e mark etpl ac e of i deas
regardi ng, for ex ampl e. the need for w el tare reform, the c aus esof oz one de-
pl eti on. the v al ue of a neu publ i c trans portati on s v s tem.the i mpac t of i ntc r-
nati onal trade barri ers .or the need for bl ood and organ donati ons .publ i c re-
l ati ons s erv es the publ i c i nteres t bv prov i di n_ea roi c e i n the publ i c forum for
ev ery poi nt of v i erv .i nc l udi ne the v i erv sof thos e-s uc h as the homel es sand
pou' erl es s -u' ho rv oul d not otherw i s e be heard bec aus eof l i mi ted medi a at-
tentl on.
The prac ti c e s erv ess oc i erv bv medi ati nq c onfl i c t and bv bui i di ng the c on-
s ens ual rel ati ons hi ps needed to mai ntai n s oc i al order. Its s oc i al func ti on-i ts
mi s s i on i s ac c ompl i s hed r.r' hc ni t repl ac es i gnoranc e.c oerc i on. and i ntrans i -
genc e w i th k norv l edge.c ompromi s e.and adj us tment.In other w ords :
P ubi i c rel ati ons fac i i i tates adl us tment and mai ntenanc e i n the s oc i al
systems that provide us with our physical and social neecjs.
In the fi nal anal v s i s .an organi z ati on' srel ati ons hi psare the res pons i bi l i ty
of top management.A s publ i c rel ati ons c ouns el or H c nry D eV ri es rephras ed
the defi ni ti on of publ j c rel al i ons , "P ubl i c rel ati ons i s the bos s ' sj ob to bui l d
and k eep s trong bonds w i th k ev groups that the organi z ati on needs to grow
and thri v e." Onc e thi s c onc ept of publ i c rel ati ons i s embrac ed at the top, i t
s preadsand bec omes part of an organi z ati on' sc ul ture.
In the s hort term. the pol i c i es and ac ti v i ti es of empl ov ers . c l i ents . and
prac ti ti oners often defi ne the dav -to-dav prac ti c e.The ev oi uti on of the c on-
c ept and the profes s i onal c al l i ne. how ev er. refl ec ts the c hangi nt needs of or-
ganizations adjustinu to a giobal. multicultural society. In its ad..,ancedform.
the function responds to long-term social needs. not to immediate special in-
tc res ts that i gnore undes i rabl e s i de el fec ts and negati v e c ons equenc esfor s o-
cretv. As praclitioners accept their social responsibility and act accordinglr,.
others w i l l unders tand and v al uc publ i c rel ati ons ' c ontri buti ons to organi z a-
ti ons and s oc i etv .
P ubl i c rel ati ons profes s i onal sw ho hel p organi z ati onses tabl i s hand mai n-
tatn mutual l y benefi c i al rel ati ons hi psperform an es s enti almanagement func -
tion that has an impact on the larger societl: Thev encourage social responsi-
bi l i tv i n organi z ati ons and promote pubi i c rei ati ons ' es s enri al rol e i n
mai ntai ni ng s oc i al order. Inherent i n thi s c onc ept of publ i c reTati onsi s a
moral c ommi tmenl to harmoni ous adj us tment among i ntc rdependent el e-
ments of s oc i etv . That c al l i ns moti v ates the c hapters that fol l orv .
Chapter I I n t ro d u c t j o n ro C o n t e mD o mry p u b l i c R e l a t i o n s
2S

7 no. i (SPring7997):57-66.
/ ne RoLE oF PUBLIc RELATIoNSlN ,oHNsoN
& JOHNSON'STYLENOLCRISIS
The public relations decisions related to the
Tylenol crisis and the product's strong come-
back came in two Phases.
Phase one was the crisis phase' which be-
gan . . . with the grim news of the cyanide
pc!sonings-Because the extent of the-contam-
ination was not immediately known' there
was grave concern for the safe:y of the esti-
mated 100 million Americans who were using
Tylenol.The first critical public relations deci-
sron, taken immediately and wtth total sup-
port from comPany managemenl was to co-
operate fully with the news media.The press
was key to warning the publlc of the danger'
Later it was realized that no meeting had
to make that critical decision.The
been olled
poisonings called for immediate action to
protect the consumer, and there wasn't the
slightest hesitation about being completely
oDen with the news media. For the same rea-
sons the decision was made to recall two
batches of the product and later to withdraw
ic nationally. During the crisis phase of the
Tylenol ragedy, virtually every public reiations
decision was based on sound, socialiy respon-
sible business principles, which is when public
relations is mosr effective.
Almost immediateiy, planning began for
CorporateVice Presidenr-PubiicReiaticns(re:irec)
Couruesy Lawrence G. Foster anC rePrinled with Pemission from Public
NOT E S
1 . Stu a r tEr ve n .PRlA S oci aLL|i stor,-ol -5pl n(N ervY ork:B asi cB ooks
2. James E. Grunig and Todd Hunt. NlanagingI'ublic Relutions
Rin e h a r ta n d\\' in ston,1981),6.
3. Harwood L. Childs.An lntotlttction to Public Opinion (New York: John
a n d So n s.1 9 4 0 ) .3 .13.
ohase two, the comeback, and this involved a
more detailed and extensive public relations
effort that closely followed imPortant mar-
keting decisions and reached out to many au-
diences.The comeback began officially with a
30-ciry video press conference via saieliite' an
innovative approach suggested by Burson-
M ar s tel l er a publ i c r el ati ons agenc y r es Pons i -
ble forTylenol Product Publiciry-
The video conference and al! other key
decisions were discussed and debated by a
seven-member strategy committee formeC by
Chairman and CEO James E. Burke to Ce:l
w i th the T y l enol c r i s i s . T he c om m i ttee i n-
cluded a public relations execudve and met
twice daily for six weeks. The decisions it
made dealt with every aspect of the Prcb-
lem-from packaging to advertising to aD-
pearances on network television. Many re-
quireci follow-up by the public relations snff
at corDorate and McNeil Consumer Products
Conrpany-the subsidiary that manufacturers
Tylenol.
The Tylenol tragedy Proved once agaln
that oublic relations is a business of basics
and that the best public relatjcns decisions
ar e c l os ei y l i nk eC to s ounc i c us i nes s pr i c l i c :s
ancl a responsible corPorate philosophy-
-Lawrence G. Foster
J ohns on& J ohns on
Reioticnsiournol'
1996.1'vi i i
(New York: 1
4. R ex F. H rri ow .."B ui i di nga P ubl i cR el rti onsD e{ i ni ti on."P rtbl i cR el ati ttnsR eti ett
2. no.4 (W i nter1976):36.
.' l nterpreti ngD ehni ti onsof P ubl i c R c l ati ons S : c l f A s s es s ment
5. J oy e C . Gordon.
and a symbolic Interactionism-Based Alternative," Public RelutionsRevievv23.
6. 'flromas L. Harris.The lvluketer'sGuitleto Puhlic Rclations
(New York: John'\\'i-
ley and Sons,1991).Exampleson the lirst page of the first chapter illustratethe
use of publicity and other salespromotion activitiesin marketing.This is not a
book about public relations.Rather,it describeshorv public relationspractitioners
apply their understandingand skillsto supportmarketing.
Z. gruce G. Vanden Bergh and Helen Katz, Advertising Principles:Choice,Chal'
lenge,Change(Lincolnwood' lL: NTC BusinessBooks'1999):537'
gth
E. lhrtip Kot\er,fularketingillunagentenr, ed. (Upper SaddleRiver. NJ: Prentice-
H al l . 1997).9-12.
g. GIen M. Broom and KerrvTucker.'An EssentialDouble Helix." Public Relations
J ournal 15.no.11 (N ov ember 1989):39.S ee al s o Gi en N l B room, N l artha\l '
Lauz en.andK erry Tuc k er' ..P ubti c R el ari ons andMark eti ng:D i v i di ngthc C on-
ceptual Domain and c)perationalTurf." Pablic RelationsReview 77, no.3 (Fall
7991):219-25.
,Anatomy of a Food Fight:The olestra Debate." The wall street
10. Raju Narisetti.
J ,' trrnol .J ul Yl l . 19q6.P B l
l l .Gerri L.S mi thandR obertL' H eath..' N l oral A ppeal s i nN l obi i oi ].s oo' E dC am.
paign,"Public RelationsRevicv''i6, no.4 (Winter 1990):'19'
lZ. i-Ienry C. Rogers.Watking the Tighrrope:The Private Confessionsof a Public Relu'
tionslvlun (NewYork:William Morroq 19E0).14'
.Astra Exec Fired in Sex.Theft Scandal.''san Dicgo union'
13. AssociatedPress.
Tribune,June77. 1996,BusinessSecrion.p 2.
.A Shoe-In for Product Publicity." PrubficRelationsTactics.4,no. 1 (Januarv 1997).3.
14.
15. Raymond L. Hoewing,,'The state of PublicAffairs: A ProfessionReinventingIt
seli," in Practical Public Affairs in an Era of Change,ed Lloyd B Dennis (I-an-
ham, MD: Universityof Pressof America,1996)'45.
16. J ohnL.P al us z ek ,,.E di tori al N ote: D efi ni ngTerms ."i nP rac ti c al P rLbl i c A ffai rs .ed.
Dennis.xviii.
17. Hoewing,,.TheState of Public Affairs," in PracticalPublic Affairs, ed. Dennis,3.1.
18. l bi d..35
19. N{argeryKraus...GovernmentRelationsin the 90sand BcJond,''in PracticalPttb'
lic Affairs, ed. Dennis. 89-100.
..ChaosTheor.; as a lrlodel for l,4anaginl Issuesand crises.'
20. Prhcilla Nlurphy.
Public RelationsReview22.no 2 (Summer1996):103'
21. W .H ow ardC has e,,.P ubl i c l s s ueManaqement:TheN ew s c i enc e.' P ubl i c R el ati ons
Journal 33,no.10(October 1977):2526.
22. W. Howard Chaseand TeresaYancevCrane."Issue lVlanagement: Dissoivingthe
Archaic Division between Line and Staft.' in PructicalPubLicAffairs, ed. Dennis.
130-31.
23. Kerry Tucker and Glen Broom- "Managing IssuesActs as Bridge to Strateeic
Planning,"PzblJcRelationsJournal 49.no.I 1 (November1993):38-40'
24. Nlartha M. Lauzen."Understandingthe Relation between Public Relationsand
IssuesManagement,"Journal of Public RelationsResearch9' no. 1 (1997):80 For
a theoreticalbasisof issuesmanaqement.see Robert L. Heath"'Corporate Issues
Management:Theoretical Underpinningsand ResearchFoundation."Public Rela-
tions Research Ann uaI 2 (1990):2945.
Chapter I Introduction to Contemporary Public Relations 27

26 PartI Context,andOrigins
Concept,Pnctitioners,
 J 15thed. (Washi n-l ton,
. sh in g to nRe p r e s entati ves.
Z - 5Wa D C : C ol umbi aB ooks.1
:, 26. Jim Drinkarcl (Associated Press),"Lobbvists Plal- Kel Rolc in Deregulal
Po u ' e r Pla y,"Sa r r Di egoLIni on-Tri butrc,A prl l 27.1997.sec'l 1'3'
.pp
+J
| 27. Carol A. Bodensteiner,"special Interest Group Coalitions:Ethical Standards

PRACTITIONERSOF
< Broad-BasedSupport Efforts." Public RelutiottsRcvior; 2i. no. 1 (Spring 19
---
"i 3 l--'16.
LttluL Affairs.
PracticttlIPublic

FuBttc RELATIoNS
)- .,
. 28. Lnarles
25. Charles5. S. NtacK,
lvlack,-LoDDVlng and Political
"Lobbying ano rollilcal Acilon- in rfuLuLLu
Action." lrr ^JJL.ttr.
- "1 Dennis'105.
f) 29. For detailed analysisof investor relations prosram impact on stock prices,
,, !) I fenneth A. Saban,"Demasking Wall Street'slnfluence on Stock Prices,"Pr
v /'2
Rehtions Review13.no.3 (Fall issl;,:-t t.
I
30. BarbaraK. Petersenand Hugh J. Martin. "CEO Perceptionsof JnvestorRelati
)-i- 4
,
as a Public Relations Function: An Exploratory Studv."Jorrrral o.f Public R
:' t tionsResearch8, no. 3 (1996):205-6.
-'--/
The way to gain a good reputation is to endeavor to be what you desire
.:\
,) ,! :1. Quote from former General E,lectricCompany PresidentRalph J. Cordiner.as
.. ^""::-^-':':-.."-:--'^'-
ported in Scott lvI. Cuttip 2d
and Allen H. Center.EffectivePublic Rt:loriotts- to appear.
T+ _g66161s5
^"i ( Up p e r Sa d d leRiver,N J: P renti ce-H al1958).6.
l.

,I
Y A DD IT IO N AL SOU R C ES
'p
A

_-{L
--l -

n I
IJ
^ l '-
n
y
.i

. '
'3't
Center. Allen H.. and Patrick iackson. Public

m :tnaeing public r el ati ons .

Relatiorts Practices:fularngerinl
Sn ttlie sa n d Pr o b lerns,5th ed. U pper S addl e R i ver. N J: P renti ce-H al l .19
Collection of classi c c as e s tudi es i i l us tr ati ns pr obl em s and oppor tunl tl es

Grunig. James E.. ed. E-rcellence in I'ublic Relutions and Contmunicatiort Xlutrt
r r ienr . Hillsdalc. NJ: Ll w r enc c tr l baunr As s oc l x l es . 1992. l nfl uc nti r l s um m
o f p u b lic r e la tio n stheor)' and researchl i teratureproducedw i th the suP port
H After studying chapter 2,you should be able

V Describe practitioners'
ments .
to

characteristics and work assign-

Y Define the four major roles played by Practitioners'

.the major differences among
discuss
the roles' and distinguish
tt u \ o |
- among them in Practice'
. ln tcr n a tio n a Associ
l ati onof B usi nessC ommuni cators(IA R C ) R escarchFot
professional status
l- LJ'\ ':, d a tio n . V List the five criteria for evaluating the
Q : to which public
- /i - ) ie \ {t Kelll'. Kathleen S- Effective Funtl-RaisingNltungentenl. Nlahrvah,NJ: Larvre of puUlic relations and discuss the extent
,u, _J \ X Erlbaum Associates,1997. Introduces history, theory. ethics,legal issues. . r..Ltion, measures up on each ofthe criteria'
t te ch n iq u e so f e xp andi ngpracti ceof fund rai si ngand devel opmentrn not-
fV | | in public rela'
,'l p r o fir se ttin ss. Y .Oudine the maior requirements for success
J dl - primary requirement for en-
Kotier. Philip. trlorketing Nlanagenrent:,-{lrr1r,sis. Plnnning, Implementation, tions, identi fying writing as the
I -.
Co n tr o !.g th e d . Upper S addl eR i ver.N J: P renti ceH al l . i 997. A marketi nge try to the field and su€cess in the practice'
.I i I-
\ '& p e r t' svie w cf p u b l i c rel ati onsas a marketi ngtool -"l i ke adverti si nsand sal
fr"
\,/\ ) Pr u m o lio n .'
)
- -- - J - ,\ 3 Ne r vio m .Do u g .Ju d y VanS l ykeTurk. and D ean K ruckcberg. Thi s Is P R :The R et
J tiesof Public Relations,6rhed. Belmont. CA: \\'adsworth Publishin-c, Co.. 191
\ I--
a--, f)' On e o f se ve r a lu sefuli ntroducti onsto the fi el d.
public relations Practitioners'
\ b Toth. Elizabeth L.. and Robert L. Heath. ecls.Rhetoricaland CrititaLApproaches This chapter discusses the number of
- i 992. D rscusr play' and their professional as-
\ 4 Pu b lic Re la tio n s.Hi l l sdal e.N J: Law renceE rl baum A ssoci ates. who they are, what they do, the roles they
)-'/
D-z 4 q' m etl l (
^" r hetor i c al di al ogue and c i es c r i bc s c r i ti c al tl l eor i s ts
,\ ,h-r,-.;^.I ii.lnc,r,' rnrl rlecrrihas .riticirl theorisls methc
,JI public r elations as
-,.hri^ --ra,;^-" law' medicine' and nursing' the
{l'1-a
for studvinq public r el atr ons .
pirations. Compared with accounting,
\-7 , profession' Un-
pub'ic relations is on emelging
\ \ j \ " White. Jon. and Laura Mazur. Stategic ComrttLtnicatiorts Mandgenrcnt: lvlaking P' relatively young Practice of
lic Relations W or k. W ok i ngham , U K: Addi s on- W es l ev . i 995. Br i ti s h per s pec t public relations does not require a
,-' -J 1 like the more established professions,
." ] ', on r apidly gr owing publ i c r el ati ons pr ac ti c e i n Eur ope. qualifying
\- i { €'*:,r p""r.iib"d educational i',"pt"iion, goYernment-sanctioned
-*iu9 Wilcox. Dennis L.. Phitlip H. Ault, and Warren'k. Agee. 1'abiic ReLations StruteS
-/ *T : &:::;- : and ethical practice' Nor
2 : and Tactics,sth ed. New York: HarperCollins College Publishers. I 998. Yet exarrls, and Peer review to tr;sure comPetent
) ilJ I f other useful intr odu c tor v tex t-
.\J

28 Part I Concept, Practitioners, Context, and origins