STAKEHOLDER RELATIONS 622

YEAR: 2
SEMESTER: 2

0
FACULTY OF BUSINESS AND MANAGEMENT
SCIENCES
STUDY GUIDE MATERIAL
STAKEHOLDER RELATIONS 622

(2ND SEMESTER)

Copyright © 2023
Richfield (Pty) Ltd
Registration Number: 2000/000757/07
All rights reserved; no part of this publication may be reproduced in any form or by any means, including
photocopying machines, without the written permission of the Institution.

1
 TABLE OF CONTENTS

SECTION A: PREFACE ...................................................................................................................................... 5

INTRODUCTION ............................................................................................................................................................................................ 5

MODULE DETAILS ........................................................................................................................................................................................ 6

PURPOSE OF THE MODULE ......................................................................................................................................................................... 6
PUBLIC RELATIONS ....................................................................................................................................................................................... 6

LEARNING OUTCOMES ................................................................................................................................... 6

METHOD OF STUDY ........................................................................................................................................ 7

LECTURES AND TUTORIALS ............................................................................................................................. 7

NOTICES ......................................................................................................................................................... 8

PRESCRIBED & RECOMMENDED MATERIAL .................................................................................................... 8

PRESCRIBED MATERIAL ............................................................................................................................................................................... 8

RECOMMENDED MATERIAL ........................................................................................................................................................................ 8
INDEPENDENT RESEARCH ............................................................................................................................................................................ 8

LIBRARY INFRASTRUCTURE ............................................................................................................................ 8

ASSESSMENT .................................................................................................................................................. 9

CONTINUOUS ASSESSMENT TESTS ................................................................................................................. 9

ASSIGNMENT ............................................................................................................................................................................................... 9
EXAMINATION .............................................................................................................................................................................................. 9
FINAL ASSESSMENT ..................................................................................................................................................................................... 9
KEY CONCEPTS IN ASSIGNMENTS AND EXAMINATIONS .......................................................................................................................... 10

WORK READINESS PROGRAMME (WRP) ....................................................................................................... 11

WORK INTEGRATED LEARNING..................................................................................................................... 13

TOPIC 1: BUSINESS AND INDUSTRY............................................................. ERROR! BOOKMARK NOT DEFINED.

PUBLIC RELATIONS IN THE COMPETITIVE SETTING .................................................................................................................................... 16

TITLES IN CORPORATE SETTING ................................................................................................................................................................. 17
NEW ERA OF CORPORATE SOCIAL RESPONSIBILITY: THE 1980’S ........................................................................................................... 18
CORPORATE SOCIAL RESPONSIBILITY......................................................................................................................................................... 20
IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY ............................................................................................................................. 21

THE PRACTICE OF CORPORATE SOCIAL RESPONSIBILITY AROUND THE WORLD........................................................................................ 23

THE ROLE OF MEDIA IN PROMOTING CORPORATE SOCIAL RESPONSIBILITY ............................................................................................. 25
CORPORATE PHILANTHROPY.................................................................................................................................................................... 26

CORPORATE FINANCIAL RELATIONS ........................................................................................................................................................... 27

2
 INVESTOR RELATIONS ................................................................................................................................................................................ 27
CONSUMER AFFAIRS AND THE ‘MARKETING MIX’ ........................................................................................................... 29
QUEST FOR QUALITY .................................................................................................................................................................................. 30
CORPORATE PRACTICE AS THE MODEL ...................................................................................................................................................... 31
SOCIAL RESPONSIBILITY ............................................................................................................................................................................. 32

TOPIC 2: PUBLIC RELATION SKILLS REQUIRED BY A PUBLIC RELATIONS PRACTITIONER ................................. 34

INTRODUCTION .......................................................................................................................................................................................... 34
THE IMPORTANCE OF PUBLIC RELATIONS EXPERTS.................................................................................................................................. 35
PUBLIC RELATION SKILLSET ........................................................................................................................................................................ 36

TYPES OF PUBLIC RELATION TOOLS .............................................................................................................. 38

TOPIC 3: GOVERNMENT AND POLITICS ....................................................... ERROR! BOOKMARK NOT DEFINED.

INTRODUCTION .......................................................................................................................................................................................... 42
THE ROLE OF PUBLIC RELATIONS IN GOVERNMENT .................................................................................................................................. 42
MAINTAINING AN INFORMED CITANZARY................................................................................................................................................. 46
SOUTH AFRICA: GOVERNMENT COMMUNICATION AND INFORMATION SYSTEM (GCIS) ....................................................... 46
CITIZEN PARTICIPATION IN GOVERNMENT ................................................................................................................................................ 47
BARRIERS TO EFFECTIVE GOVERNMENT PUBLIC RELATIONS..................................................................................................................... 49
PUBLIC APATHY .......................................................................................................................................................................................... 49
LEGISLATIVE HOSTILITY TO THE FUNCTION................................................................................................................................................ 50
GOVERNMENT/MEDIA RELATIONS............................................................................................................................................................ 52
MEDIA ACCESS TO GOVERNMENT ............................................................................................................................................................. 52
GOVERNMENT DEPENDENCE ON THE MEDIA ........................................................................................................................................... 53
MILITARY PUBLIC RELATIONS .................................................................................................................................................................... 54
GOVERNMENT AS A BUSINESS ................................................................................................................................................................... 56
PUBLIC RELATIONS IN POLITICS.................................................................................................................................................................. 57

TOPIC 4: PUBLIC RELATIONS FOR NON-PROFIT ORGANISATIONS, HEALTH CARE AND EDUCATION ............... 59

INTRODUCTION .......................................................................................................................................................................................... 59
NON-PROFIT ORGANISATIONS’ LANDSCAPE ............................................................................................................................................. 60
THE THIRD SECTOR .................................................................................................................................................................................... 61
CHARACTERISTICS OF NON-PROFIT ORGANISATIONS................................................................................................................................ 61

VOLANTURISM AND PHILANTROPHY.......................................................................................................................................................... 62

CHANGING CLIMATE .................................................................................................................................................................................. 63

ROLE OF PUBLIC RELATIONS IN NON-PROFIT ORGANISATIONS ................................................................................................................. 64

EDUCATION ................................................................................................................................................................................................ 65
ACCOUNTABILITY ....................................................................................................................................................................................... 65
PUBLIC RELATIONS FOR PUBLIC SCHOOLS ................................................................................................................................................. 65

3
 HEALTH CARE .............................................................................................................................................................................................. 67

THE IMPORTANCE OF PR IN HOSPITALS.................................................................................................................................................... 67

BASIC COMPONENTS OF PUBLIC RELATIONS IN HOSPITAL ........................................................................................................................ 68
RESPONSIBILITY OF PUBLIC RELATIONS DEPARTMENT.............................................................................................................................. 69
METHODS OF IMPROVING PUBLIC RELATIONS IN HOSPITALS................................................................................................................. 70

TOPIC 5: PUBLIC RELATIONS AND ORGANISATIONAL EFFECTIVENESS ........................................................... 72

INTRODUCTION .......................................................................................................................................................................................... 72

SYSTEMS THEORY APPROACH ................................................................................................................................................................... 76

STAKEHOLDER MANAGEMENT APPROACH .............................................................................................................................................. 79

TOPIC 6: BEST PRACTICES FOR EXCELLENCE IN PUBLIC RELATIONS ................................................................ 83

INTRODUCTION .......................................................................................................................................................................................... 83

EFFECTIVENESS AND EXCELLENCE ............................................................................................................................................................. 83

GENERIC PRINCIPLES OF EXCELLENT PUBLIC RELATIONS........................................................................................................................... 85
EXPLAINING THE GENERIC PRINCIPLES OF EXCELLENCE .......................................................................................................................... 86

NIKE CASE STUDY ......................................................................................................................................... 90

REFERENCE LIST.......................................................................................... ERROR! BOOKMARK NOT DEFINED.

4
SECTION A: PREFACE

INTRODUCTION

Welcome to the Faculty of Leadership & Business Administration at Richfield

Graduate Institute of Technology.

We trust you will find the contents and learning outcomes of this module both
interesting and insightful as you begin your academic journey and eventually, your
career in the business world. This section of the study guide is intended to orientate
you to the module before the commencement of formal lectures. The following lectures
will focus on the study units described.

Table 1: Welcome and Orientation

SECTION A: WELCOME & ORIENTATION

Study unit 1: Orientation Programme

Introducing academic staff to the students by the academic head. Lecture 1
Introduction of institution policies.

Study unit 2: Orientation of Students to Library and

Students Facilities
Introducing students to physical structures
Lecture 2
Issuing of foundation learner guides and necessary learning
material

Study unit 3: Orientation of Stakeholder Relations 622 Student

Lecture 3
Guide, Textbooks and Prescribed Materials

Study unit 4: Discussion of the Objectives and Outcomes of

Lecture 4
Stakeholder Relations 622

Study unit 5: Orientation and guidelines for completing

Assignments Lecture 5
Review and Recap of Study units 1-4

5
MODULE DETAILS
Table 2: Module details

2nd Semester Details

Title Of Module: Stakeholder Relations

NQF Level: NQF 6
Credits: 10
Mode of Delivery: Contact

PURPOSE OF THE MODULE

The purpose of this module is to give students a thorough understanding of the basic
business tools required to enter the business/employment world. Naturally, the
module is only an introduction to what the working environment is all about, but we
trust that students will gain sufficient knowledge about the various business functions
to enable them to choose possible areas of work preference and further study and
articulation.

PUBLIC RELATIONS
The purpose of this module is to expose the learner to the subject terminology which
includes theoretical background to public relations, public relations, research, public
relations education, public relations practice and critical issues facing public relations.
This module is to allow the learner to understand the planning public relations
programme, public relations resources, effective communication, mass
communication, media relations and media ethics, printing and publishing.

LEARNING OUTCOMES
On completion of this module, students should have a basic/fundamental practical and
theoretical knowledge of:

• The performance dimensions of Public Relations

• Current issues under scrutiny in the field of Public Relations
• Planning Public Relations programme
• Importance of Public Relations resources

6
• Effective communication
• Mass communication
• Media Relations and Media ethics
• Printing and publishing

METHOD OF STUDY
Only the key sections that have to be studied are indicated under each topic in this
study guide are expected to have a thorough working knowledge of the prescribed
textbook. These form the basis for tests, assignments and examinations. To be able
to do the activities and assignments for this module, and to achieve the learning
outcomes and ultimately to be successful in the tests and exams.

You will need an in-depth understanding of the content of these sections in the learning
guide and the prescribed books. To master the learning material, you must accept
responsibility for your studies. Learning is not the same as memorising. You are
expected to show that you understand and can apply the information. Lectures,
tutorials, case studies and group discussions may also be used to present this module.

LECTURES AND TUTORIALS

Students must refer to the notice boards on their respective campuses for details of
the lecture and tutorial timetables. The lecturer assigned to the module will also inform
you of the number of lecture periods and tutorials allocated to a particular module.
Prior preparation is required for each lecture and tutorial. Students are encouraged to
actively participate in lectures and tutorials to ensure success in tests, group
discussions, assignments and examinations.

7
NOTICES
All information about this module such as tests dates, lecture and tutorial timetables,
assignments, examinations etc., will be displayed on the notice board located at your
campus. Students must check the notice board daily. Should you require any
clarification, please consult your lecturer, programme manager or administrator of your
respective campus.

PRESCRIBED & RECOMMENDED MATERIAL

PRESCRIBED MATERIAL
Fourie, L. 2017. Public Relations: Theory and Practice. 2nd Ed. Cape Town: Juta &
Company.

RECOMMENDED MATERIAL
Clear, A. 2015. Dynamics of Public Relations and Journalism. Juta: Cape Town.

INDEPENDENT RESEARCH:
The student is encouraged to undertake independent research with emphasis on the
value of strategic thinking in companies and the implementation of public relations.

LIBRARY INFRASTRUCTURE
The following services are available to you:

• Each campus keeps a limited quantity of the recommended reading titles and a
wider variety of similar titles which you may borrow. Please note that students are
required to purchase the prescribed materials.
• Arrangements have been made with municipal, state and other libraries to stock
our recommended reading and similar titles. You may use these on their premises
or borrow them if available. It is your responsibility to safe keeps all library books.
• RGIT has also allocated one library period per week to assist you with your formal
research under professional supervision.
• RGIT has dedicated electronic libraries for use by its students. The computers
laboratories, when not in use for academic purposes, may also be used for
research purposes. Booking is essential for all electronic library usage.

8
ASSESSMENT
The assessment for this module will comprise two Continuous Assessment (CA) Tests,
an assignment and an examination. Your lecturer will inform you of the dates, times
and the venues for each of these. You may also refer to the notice board on your
campus or the Academic Calendar, which is displayed in all lecture rooms.

CONTINUOUS ASSESSMENT TESTS

ASSIGNMENT
There is one compulsory assignment for each module in each semester. Your lecturer
will inform you of the Assignment questions at the commencement of this module.

EXAMINATION
There is one two-hour examination for each module. Make sure that you diarise the
correct date, time and venue. The examinations department will notify you of your
results once all administrative matters are cleared, and fees are paid up. The
examination may consist of multiple-choice questions, short questions and essay type
questions.

This requires you to be thoroughly prepared as all the content matter of lectures,
tutorials, all references to the prescribed text and any other additional
documentation/reference materials are examinable in both your tests and the
examinations. The examination department will make available to you the details of
the examination (date, time and venue) in due course.

You must be seated in the examination room 15 minutes before the commencement
of the examination. If you arrive late, you will not be allowed any extra time. Your
learner registration card must always be in your possession.

FINAL ASSESSMENT
There are two compulsory tests for each module (in each semester). The final
assessment for this module will be weighted as follows:

9
CA Test 1
CA Test 2 40%
Assignment

Examination 60%
Total 100%

KEY CONCEPTS IN ASSIGNMENTS AND EXAMINATIONS

In assignment and examination questions, you will notice certain vital concepts (i.e.
words/verbs) which tell you what is expected of you. For example, you may be asked
in a question to list, describe, illustrate, demonstrate, compare, construct, relate,
criticise, recommend or design information/aspects/factors/situations. To help you to
know what these key concepts or verbs mean so that you will know what is expected
of you, we present the following taxonomy by Bloom, explaining the concepts and
stating the level of cognitive thinking that theses refer to.

Table 3: Bloom's Taxonomy

Competence Skills Demonstrated

• Observation and recall of information

• Knowledge of dates, events, places
• Knowledge of major ideas
Knowledge

• Mastery of subject matter

Question Cues
list, define, tell, describe, identify, show, label, collect, examine,
tabulate, quote, name, who, when, where, etc.

• Understanding information
• Grasp meaning
• Translate knowledge into a new context
Comprehension

• Interpret facts, compare, contrast

• Order, group, infer causes
• Predict consequences

Question Cues
summarize, describe, interpret, contrast, predict,
associate, distinguish, estimate, differentiate, discuss, extend

10
 • Use information
• Use methods, concepts, theories in new situations
Application • Solve problems using required skills or knowledge

Questions Cues
apply, demonstrate, calculate, complete, illustrate, show, solve, examine,
modify, relate, change, classify, experiment, discover

• Seeing patterns
• Organisation of parts
• Recognition of hidden meanings
Analysis

• Identification of components

Question Cues
analyse, separate, order, arrange, divide, compare, select, infer,
connect, classify, explain

• Use old ideas to create new ones

• Generalise from given facts Relate knowledge from several areas
Synthesis

• Predict, draw conclusions

Question Cues
combine, integrate, modify, rearrange, substitute, plan, create, design,
invent, what if? compose, formulate, prepare, generalise, rewrite
• Compare and discriminate between ideas
• Assess the value of theories, presentations
• Make choices based on reasoned argument Verify value of evidence
Evaluation

recognise subjectivity

Question Cues
assess, decide, rank, grade, test, measure, recommend, convince, select,
judge, explain, discriminate, support, conclude, compare, summarise
WORK READINESS PROGRAMME (WRP)
To prepare students for the world of work, a series of interventions over and above the
formal curriculum, are concurrently implemented to prepare students. These include:

• Soft skills
• Employment skills
• Life skills
• End-User Computing (if not included in your curriculum)

11
It is in your interest to attend these workshops, complete the Work Readiness Logbook
and prepare for the working world. The illustration below outlines some of the key
concepts for Work Readiness that will be included in your timetable.

Figure 1: Work Readiness

SOFT SKILLS
• Time management
• Working in Teams
• Problem solving skills
• Attitude & goal setting
• Etiquettes & Ethics

Work
EMPLOYMENT
SKILLS
Readiness
LIFE SKILLS
• CV writing skills
• Manage personal finance
• Interview skills
• Driving skills
• Presentation skills
• Basic life support & first
• Employer/Employee aid
relationship
• End-user computing

Source: Own compilation

12
WORK INTEGRATED LEARNING
Work Integrated Learning (WIL) forms a core component of the curriculum for the
completion of this programme. All modules which form part of this qualification will be
assessed in an integrated manner towards the end of the programme or after
completion of all other modules. Prerequisites for placement with employers will
include:

• Completion of all tests & assignment

• Success in examination
• Payment of all arrear fees
• Return of library books, etc.
• Completion of the Work Readiness Programme (WRP).

Students will be fully inducted on the Work Integrated Learning Module, the
Workbooks & assessment requirements before placement with employers. The
partners in the Work Integrated Learning are the same as the Work Readiness
Programme:

Figure 2: Work Integrated Learning

Good luck and success in your studies…

The topics that will be covered in this module is summarised in Table 4 below:
13
Table 4: Module topics

Lecture
TOPIC 1: BUSINESS AND INDUSTRY
(L)
1.1 Public relations in the competitive setting

1.2 Titles in the corporate setting

L6-8
1.3 New era of corporate social responsibility: The 1980s
1.4 Corporate social responsibility
1.5 importance of corporate social responsibility
L9-10
1.6 the practice of corporate social responsibility (CSR) around the world
1.7 the role of media in promoting corporate social responsibility
L11-14
1.8 Corporate philanthropy
1.9 Corporate financial relations
1.10 Investor relations
L14-15
1.11 Consumer affairs and the marketing mix
1.12 Quest for quality

1.13 Corporate practice as the model L16

1.14 Assessment Questions

TOPIC 2: SKILLS REQUIRED BY A PUBLIC RELATIONS PRACTITIONER

2.1 Introduction
L17 –
2.2 The importance of public relations experts
19
2.3 Public relations skills set
2.4 Types of public relation tools L20 –
2.5 Assessment Questions 24

TOPIC 3: GOVERNMENT AND POLITICS

3.1 Introduction L25 –
3.2 The role of public relations in government 27

3.3 Maintaining and informed citizenry

L28 –
3.4 Barriers to effective government public relations
31
3.5 Government – media relations
L32 –
3.6 Government as the business
33

14
3.7 Public relations in politics L34

3.8 Assessment Questions

TOPIC 4: NONPROFIT ORGANISATIONS, HEALTH CARE, AND EDUCATION

4.1 Introduction
4.2 None profit organisation’s landscape
4.4 The third sector L35 –
4.4 Characteristics of a non-profit organisation 36
4.7 Voluntarism and philanthropy
4.8 Changing Climate
4.7 Role of Public Relations in non-profit organisations
L37 –
4.8 Education
39
4.9 Health care
TOPIC 5: PUBLIC RELATIONS AND ORGANISATIONAL EFFECTIVENESS
5.1 Introduction
5.2 Goal attainment approach
L39 –
5.3 Systems Theory Approach
40
5.4 Stakeholder Approach
5.5 Summary
5.3 Systems Theory Approach L41 –
5.4 Stakeholder Approach 42
5.5 Summary
TOPIC 6: BEST PRACTICES FOR EXCELLENCE IN PUBLIC RELATIONS
6. Introduction
6.1 Effectiveness and Excellence
L42 –
6.2 10 Generic Principles
44
6.3 Explanation of Generic Principles
6.4 Summary

15
 TOPIC 1: BUSINESS AND INDUSTRY

On completion of this module, the student will be

able to:

1. Discuss the emergence of corporate social responsibility

and the forces that have made this concept of serving the
public interest part of corporate philosophy
2. Outline the role of public relations in corporate
philanthropy
3. Describe the financial relations function in publicity held
corporations
4. Describe the kinds of support public relations practitioners
provide for the marketing function.

1.1 PUBLIC RELATIONS IN THE COMPETITIVE SETTING

Public relations in any organisation that is dependent on profit must be cost-effective
and must remain in line with the ethos and methods that the organisation uses to
remain successful competitive. The competitive nature of business and the profit
imperative that prevails in the business setting inevitably make public relations work
extremely demanding.

In addition to this stressful ambience, there is the increasingly global nature of

business (with more foreign ownership of ‘American’ corporations), the potential clash
of cultures inherent in having multi-ethnic, multiracial and multi-linguistic personnel all
working for one company, as well as the ever-present threats of corporate takeovers,
merger and acquisitions. It is becoming increasingly obvious that the ‘think globally’
manifesto proclaimed by many in the 1990s is a daily part of current corporate life.

The public relations function in business is subject to continuing evaluation-as are

marketing, finance, and manufacturing-with the ultimate yardstick being progress
toward the goals and objectives that are set by management. Other evaluations of the
function are made in terms of ‘organisational loyalty’, being ‘on the team’ and being ‘in
tune with the objectives’. In times of stress, economic downturn or increased
competition, management often increases its concern for the survival of the business

16
and demands a greater commitment to organisational goals. While the public relations
practitioner must be alert to these conditions and must understand that internal dissent
and criticism of communication policies may be regarded as disloyal, he or she must
continue to act professionally.

For public relations to survive in business, it must do more than build and maintain
relationships with employees and neighbours. This motivation usually means that
much of what is called ‘public relations’ is designed to help the marketing function to
attract new customers and to keep present customers satisfied with products or
services. The competitive and private nature of the business system and the demands
placed on each function make for variety in the role and stature of public relations.

1.2 TITLES IN CORPORATE SETTING

Some top business executives simply do not like the term ‘public relations’. Many years
ago, distaste for the term at IBM led to titles such as ‘manager, community affairs’ and
‘director, community programs’. More recently, IBM’s top public relations executive
was a ‘vice president, communications’ – and there is still no title on the organisation
chart that includes the term ‘public relations’. Less than one-fifth of the Fortune 500
companies use the term ‘public relations’ in the titles of their departments.

On the other hand, a ‘vice president of public relations’ heads the overall function at
AT&T, Kaiser Aluminium and Chemical Corporation, and Good Year Tire and Rubber
Company. Enron, Revlon, and the Pillsbury Company affairs’ call the position ‘vice
president – public relations’. Sears changed its ‘public relations’ department title to
‘public relations and communications’ to more accurately describe its role in the
company.

Nonetheless, the trend has been to move away from the ‘public relations’ title at the
top corporate level and toward an amalgam of terms such as ‘vice president, corporate
communications’ (Motorola, Pacific Gas and Electric Company, Deere and Company,
and Bexter International); ‘vice president, public affairs’ (Ford Motor Company,
Conoco, and American Express); and ‘vice president, corporate relations’ (VIACOM,
ITT Industries, and Manville Corporation). The list of corporate titles includes many
other terms and combinations. At PepsiCo, for example, there is a ‘vice president –
17
international public affairs’; Fidelity Investments has a ‘vice president –
communications, public affairs’; and W.R. Grace & Company has a ‘vice president –
communications and investor relations’.

All these titles deal with the same public relations management function in the
corporate setting. However, if one looks at the duties and post descriptions of those
positions, as advertised, the same public relations content is implied. In some
corporations, public relations report to marketing, personnel, human resources, or
even the legal department. In others, it reports directly to the CEO. Each industrial or
commercial tailors its public relations function to reflect the character and personality
of its management, its corporate culture, and its tradition. One senior public relations
executive thinks the field is diminished when executives substitute for the words ‘public
relations’.

1.3 NEW ERA OF CORPORATE SOCIAL RESPONSIBILITY: THE 1980’S

The 1980s introduced a new era of public relations and corporate social responsibility.
For example, Johnson’s classic handling of the Tylenol poisonings in 1983 became a
textbook case on how to respond to a crisis. Unlike the Three Mile Island nuclear power
facility, Johnson & Johnson responded to all media requests for information and
generally fulfilled the company’s responsibility to the public. Early in the decade, Dow
Chemical’s former chairman also outlined some basics of corporate social
responsibility. The business community efforts to solving problems must be integrated
with long-term profit growth. If done properly, solving social problems is both good
business and good citizenship, for the two goals are wholly compatible.

By the time the 1980s drew to a close, the rest of the chemical industry had caught up
with Dow’s philosophy and instituted an across-the-industry programme of social
responsibility, ‘responsible Care’ is the title of the self-policing code of conduct by
which all members of the Chemical Manufacturers Association abide. In the 1990s,
churches and universities also began to scrutinise their investment portfolios before
selling holdings in companies that might conflict with the public (and constituency)
perceptions of corporate insensitivity to social concerns. Interest groups prodded
American companies to pull out of South Africa.

18
Companies throughout the world heard the protests, and hundreds of millions of
dollars in plant, equipment and jobs were removed from South Africa in the 1980s. The
pros and cons of those actions are still being debated today. The issue had become
localised to the extent that in some states companies doing any kind of business with
South Africa were forbidden to bid on state government contracts. Once the
democratic elections of 1994 (based on non-racism and universal franchise) returned
a government led by the ANC to power in South Africa, the opposite line was followed
in many cases, and many American and European companies came out in support of
the changes that had taken place by investing in the new South Africa.

Business and industry continued to labour under the government regulations that had
been imposed a decade or earlier because of public and governmental concern about
the treatment of the environment, product quality, equal employment, and workplace
safety. News media continued to expose corporate bribes to foreign government
officials, antitrust and product safety violations, the widespread distribution of cancer-
causing drugs and chemicals, and the ‘lemon law’ cases, which involved defective
automobiles. All these scandals further undermined public confidence in business and
industry.

Beginning with the Reagan administration, economic conditions brought about what
some termed a ‘new federalism’. Simply put, cuts in federal funds for social, cultural,
educational, and welfare programmes began to place increased pressure on
corporations to carry an even larger share of the financial burden for these activities
to their communities.

Business leaders and public relations practitioners began to take centre stage as the
times called for a new spirit of volunteerism. Then-President George Bush introduced
his ‘Thousand Points of Light’ programme to recognise community service. The
professional ethics of business leaders and public relations practitioners, along with
the social responsibility of their organisations, began to be scrutinised as never before
on a worldwide basis. In South Africa, the law will compel companies listed on the
Johannesburg Securities Exchange to make the remuneration packages of their

19
executives publicly known from 2002. Nor can companies ignore environmental
damage caused by their processes and products, child-labour abuses in
manufacturing plants, or human rights violations in sweatshops where sub-standard
wages are paid in Third World or developing nations.

These practices cannot be exported and hidden from instantaneous global news
reporting. A morally aware, vigilant and socially concerned press and other media
cannot be ‘bought off’, and that is unafraid of exposing abuses will turn the spotlight
onto corporate greed and misbehaviour in every corner of the world.

1.4 CORPORATE SOCIAL RESPONSIBILITY

The practice of CSR or Corporate Social Responsibility as a paradigm for firms and
businesses to follow has evolved from its early days as a slogan that was considered
trendy by some firms following it to the present-day realities of the 21st century where
it is no longer just fashionable but a business requirement to be socially responsible.
This evolution has been necessitated both due to the myriad problems that we as a
race face which has changed the environment under which firms operate as well as a
realisation among business leaders that profits as the sole reason or raison d’être for
existence can no longer hold good.

The reason why companies must look beyond profits is also due to the peculiar
situation that humanity finds itself in the second decade of the 21st century. Given the
political, economic, social and environmental crises that humans as a race are
confronting, corporations have a role to play since they contribute the most to the
economic wellbeing of humanity and in turn influence the political and social trends.

Corporate Social Responsibility or CSR makes for eminent business sense as well
when one considers the knock-on effect that social and environmental responsibility
brings to the businesses. For instance, corporations exist in a symbiotic relationship
with their environments (the term environment refers to all the components of the
external environment and not to the ecological environment alone) where their
exchange with the larger environment determines to a large extent how well they do
in their profit-seeking endeavours.

20
The evolution of CSR as a concept dates to the 1950s when the first stirrings of social
conscience among management practitioners and theorists were felt. The writings of
Keith Davis starting in the 1950s and continuing into the 1970’s speak of the need for
businesses to engage in socially responsible behaviour and to ensure that society as
a whole does not lose out in the process of profit-making behaviour by businesses.
CSR as a concept was starting to be taken seriously by the time the 1970s dawned
and through the tumultuous decade when big business and their minions were
accused of several misdemeanours about a rampant disregard for the environment
and society as a whole.

One can trace the anxieties of activists and management theorists during this time as
they feared that the rapacious behaviour of businesses and corporations ought to be
checked if a semblance of social responsibility was to be maintained. Of course, both
sides started to stick to their positions, and this resulted in the debate over CSR getting
shriller during the 1980s. I conclude the article with two quotes that illustrate the need
to think beyond the ordinary and at the same time remind ourselves of the
responsibility we have towards succeeding generations: The first one by Albert
Einstein where he said that “problems cannot be solved from the same level of
consciousness that created them” and the second one which says that “We have not
inherited the Earth. We have merely borrowed it from our children.

• What is CSR in a real-life situation

• Think of at least five local companies who practice CSR
• How would you go about implementing CSR?
• Think of a list of things to remember when implementing
CSR

1.5 IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility allows organisations to do their bit for the society,
environment, customers or for that matter, stakeholders. Let us go through the
importance of corporate social responsibility. The term corporate social responsibility
gives a chance to all the employees of an organisation to contribute towards the
society, environment, country and so on. We all live for ourselves but trust me living

21
for others, and doing something for them is a different feeling altogether. Bringing a
smile to people’s life just because your organisation has pledged to educate the poor
children of a particular village gives not only a sense of inner satisfaction but also pride
and contentment.

One should never forget the importance of society and the environment in our lives. It
is indeed a high time when we also start thinking about people around us who are less
privileged and fortunate than us. Corporate social responsibility allows organisations
to work towards the betterment of society and make it a better place to live. Corporate
social responsibility goes a long way in creating a positive word of mouth for the
organisation on the whole. Doing something for your society, stakeholders, customers
would not only take your business to a higher level but also ensure long term growth
and success.

Corporate social responsibility plays a crucial role in making your brand popular not
only among your competitors but also media, other organisations and most importantly
people who are your direct customers. People develop a positive feeling for a brand
which takes the initiative of educating poor children, planting more trees for a greener
environment, bringing electricity to a village, providing employment to people and so
on. You do not have to invest much in corporate social responsibility activities. Do not
undertake CSR activities only to gain publicity but because you believe in the cause.
There are many organisations which tap remote villages, some of which are even
unheard as an initiative of corporate social responsibility.

Corporate social responsibility also gives employees a feeling of unparalleled

happiness. Believe me; employees take pride in educating poor people or children who
cannot afford to go to regular schools and receive a formal education. CSR activities
strengthen the bond among employees. People develop a habit of working together
as a single unit to help others. They start enjoying work together and also become
good friends in due course of time. They also develop a sense of loyalty and
attachment towards their organisation which is at least thinking for society.

22
Who does not like to work with an organisation where management is kind enough to
take out time for society and contribute in their small way? Ask yourselves, when is
the last time you did something for your society, customers, stakeholders or
environment? Corporate social responsibility also goes a long way in building a
positive image of the brand. Trust me; your brand becomes a “common man’s brand”.
People start believing in the brand, and nothing can help you more than your
customers trusting you and your brand. Positive word of mouth eventually helps to
generate more revenues for the organisation.

In today’s scenario of cutthroat competition, everyone is so occupied in chasing targets

and handling the pressure at the workplace that we forget that there is a world around
us as well. Have you ever thought about those who can’t even afford a proper meal
twice a day? If you can take some time out of your busy schedule, please try to visit a
village once. You would be surprised to see how people manage their lives there.
Corporate social responsibility, in a way, also plays a crucial role in the progress of
society, which would, at the end of the day, benefit us only.

1.6 THE PRACTICE OF CORPORATE SOCIAL RESPONSIBILITY AROUND THE

WORLD
Corporate Social Responsibility (CSR) evolved from its early beginnings in the 1950s
to a full-fledged business imperative by the second decade of the 21st century. If we
turn our gaze to the geographical evolution of the concept, i.e. how businesses in
different regions across the world adopted and implemented the idea, we find that
there is no uniformity in the timeline nor there is a consensus on what constitutes CSR
among businesses in different parts of the world. For instance, CSR as a concept
found its feet more in Europe than in the US though the latter was responsible for its
early initiation into business literature.

The fact that the “green consciousness” and the “green movement” secured major
gains in Europe meant that companies and firms in the continent were more amenable
towards CSR than their counterparts in the US. However, in recent years, there has
been a “levelling off” with the body polity in the US recognising the need for businesses

23
to be held accountable and hence shaking off the long inertia that enveloped them
during the time Europe was making rapid strides in implementing CSR.

This has led to the mainstreaming of the idea of CSR to the extent that we have
reached a point (in the West) where CSR is a business imperative, in the same way,
taking care of the workforce is. The policies and programs that have been launched
by many firms routinely include their commitment towards CSR and their affirmation
of the need to be socially responsible. However, the other continents like Asia and
Latin America were lagging for a long time in even recognising that businesses have
a social responsibility. Though this might seem primitive or Luddite to say that
businesses need have absolutely no responsibility towards society, the fact that many
firms and businesses in these regions practised a variety of capitalism that was unique
to those countries and which included a certain inbuilt social conscience.

Hence, while it cannot be said that these regions and countries were left behind totally,
the concept as it is perceived in the West was not being practised here. Many
commentators in these countries initially dismissed the idea of CSR as an imperialist
construct and something that is a luxury much in the same way that early adopters in
the US and Europe faced these accusations. However, in recent decades, countries
like India and Brazil have indeed taken the lead in making businesses adopt policies
that are socially responsible, environmentally conscious, compassionate in their
human dimensions and thrifty in their use of natural resources. The United Nations
has had a significant role to play in the universal acceptance of the idea of CSR with
their promotion of the “Global Compact” to which various countries are signatories.
This global compact binds the signatories to universally accepted principles of social
responsibility which the businesses in those countries ought to follow and which is
tracked for implementation.

How to measure the benefits of CSR?

How can further develop CSR?
What are the financial costs associated with CSR?
Is a charity programme the same as CSR?

24
1.7 THE ROLE OF MEDIA IN PROMOTING CORPORATE SOCIAL RESPONSIBILITY
Let us look at the role media of media in championing CSR. Indeed, the media have a
huge role to play in how CSR is broadcast to the world at large. It is simply not enough
for corporations to do their bit for social causes. They must also let the world know so
that others are inspired, and they set an example for others to follow. Of course, we
are not talking about “advertising” CSR per se because then it would fall into the
category of the corporations trumpeting their achievements like they would do when
they launch new products.

On the other hand, what we are saying is that they must follow the example of ITC and
Vedanta that have created brilliant ads that portray their values and showcase the
excellent work that they have been doing. There are other companies like Shell that
have come out with innovative ways to reach out to the people about their CSR
initiatives. Apart from creating appealing and conscious ads, corporations must enlist
the cooperation and support of media in spreading awareness about CSR to the
people at large. In the final analysis, CSR is all about helping society look beyond
profits, and hence the media (which is a guardian of the public good) has a stellar role
to play in this endeavour. The media can be used to seek volunteers from the society
or the specific places where the corporations are launching their CSR initiatives.
Further, they can be used to publish articles about the values and the mission of the
company in promoting CSR.

An excellent example of this relationship is the way Infosys is covered in the media.
There are very few articles which do not mention the respect and the adulation that
Infosys commands from the Indian public at large, and this has been made possible
because of adroit media coverage. How the social initiatives undertaken by Infosys
have been covered in the media speaks volumes about how well the company has
managed its media coverage. Apart from this, the media can also act as a conscience
keeper by constantly reminding corporations about the need to give back to society
and to look beyond profits. Internationally, The Guardian Newspaper has been at the
forefront of demanding accountability and transparency from the corporations. In India,
The Hindu does a good job of publishing articles and editorials that exhort the
corporations to be socially conscious.

25
Finally, the media can also take a critical view of the CSR programs that a corporation
claims to run, and it can ensure that the corporation is not indulging in “Green Washing”
which is the case where a corporation pretends to follow CSR but in reality does not
do so.

1.8 CORPORATE PHILANTHROPY

The major tactics for expressing and demonstrating corporate social responsibility
include mission and value statements, speeches, advertising, and contributions to
causes such as education, health care, welfare and the arts. Although many top
managers willingly participate financially in causes chosen by their corporations, a
philosophical debate continues as to whether a business should ‘give away’ its hard-
earned profits to social and cultural programmes.

At the root of this conflict are two warring images of the business organisation and its
purpose in American society. One sees the corporation as a pivotal institution of
democracy with complex responsibilities to a host of constituencies including its
employees, customers and the community.

The other much more utilitarian view recognises one primary corporate constituent,
the shareholder, and a single purpose, profit-making. Social responsibility based on
‘enlightened self-interest’ links philanthropy to organisational goals. They employ a
participative approach that permits employees, customers and opinion leaders to help
select the projects which will receive funds. In this approach, volunteerism, gifts, and
in-kind services are often more important than money for building relationships with
key publics in communities.

Often the public relations practitioner plays a key role in corporate philanthropy when
he or she serves as the officer responsible for the function. The public relations role
typically includes the following:

• Staging appropriate events for making a decisive contribution, as in a welfare

fund drive or the creation of a scholarship fund

26
 • Assisting in a charitable campaign or endeavours, with communication strategy
counsel, preparing printed or audio-visual materials, and advertising support or
publicity placement
• Heading a project or campaign or serving as the alternate for a senior corporate
official
• Auditing various community causes to determine where and how a corporation
might best be of assistance
• Guiding (but not directing) the participative approach that involves community
constituencies in allocating corporate contributions

Corporate philanthropy, once thought of by many as extraordinary generosity, is

increasingly viewed as an obligation and a necessary component of corporate
citizenship. It has also moved to centre stage a part of the public relations mission in
building relationships with key corporate publics.

1.9 CORPORATE FINANCIAL RELATIONS

Do investments of those who retired have any impact on

unemployment? If yes, how?
(Consider South African context).

Economic conditions and a prevailing fast-buck atmosphere have placed financial

relations at the forefront of public relations activities. ‘Benign neglect,’ one business
journalist wrote, ‘facilitated a wave of takeovers that piled up corporate debt …and cost
thousands of workers their jobs.’ Corporations began to understand who controlled
their stock. It was not individual investors anymore but huge, multibillion-dollar
retirement funds and pension plans wanting a maximum return on their investments.

1.10 INVESTOR RELATIONS

Beginning with the first round of takeovers and mergers during the 1980s, investor
relations became an integral part of many corporate communications programmes. In
some corporations, this meant that the CEO had to work closely with public relations

27
professionals for the first time. While headlines announced mergers of major national
and international corporations, public relations specialists were providing counsel to
top management on:

• how to deal with the world’s financial press,

• how to communicate the news to investors while taking into account the
requirements of government agencies and how to inform employees about the
impact the changes would have on their jobs and lives.

Public relations experts play an integral part in most financial relations programmes.
They assist with analyst presentations, prepare speeches to shareholders, and work
with the news media during ‘roadshows’ (which are visits by top corporate officials to
analyst and financial editors – visits that often include many cities in a relatively short
period). Careful planning and coordination are needed for such meetings.

Most financial relations are governed:

• By law,
• By stock of exchange requirements,
• And by management attitudes toward disclosure.

Implementation of policies and financial relations plans fall largely to financial officers
with advice and support from the public relations staff or specialised outside counsel.
The usual assignments given to public relations in the financial arena include the
following:

• Gauging whatever opinions toward the company, the industry, or free enterprise
are entertained by shareholders, financial analyst, federal agency executives, and
legislators
• Recommending communication strategy, particularly concerning corporate goals
• A table of contents or highlights
• An inviting design that helps the reader to get the main message points easily and
quickly when scanning the report
• Identification of members of the board of directors and top corporate officers

28
• A statement or letter from the CEO which generally summarises the past year’s
events and emphasises goals for the future
• Consolidated balance statements of earnings, shareholders’ interest, and
operating cash flows for the year
• Financial highlights and comparisons with at least the previous year, but often with
the past five to ten years
• Auditor’s statement of independence and adherence to accepted accounting
principle
• Helping with physical arrangements
• Creating handouts and other non-site communications
• Assisting with tours and souvenirs
• Accommodating the news media, including arrangements for computers,
telephones and modems, fax machines, photo opportunities, and post-meeting
interviews
• Generating publicity support
• Preparing question-and-answer sheets for top executives in anticipation of
shareholder questions

1.11 CONSUMER AFFAIRS AND THE ‘MARKETING MIX’

Public relations have long been an essential supplement to the marketing effort,
particularly in consumer product and services companies. In fact, for many counsellors
and staff professionals, participation in the ‘marketing mix’ is their bread and butter: it
pays the bills. As one practitioner noted: ‘By being involved early and regularly with
the client marketing functions, public relations can help assure totally integrated,
strategically focused and cost-effective marketing communications.’

According to integrated marketing communication specialist, Thomas Harris, public

relations support for marketing includes the following:

• Building marketplace excitement before advertising breaks (announcing that VW

was bringing back the Beetle)

29
• Driving the communication programme when there is no advertising (news that
Crayola was ‘retiring’ some colours and replacing them with the eight new ‘child-
rested’ colours)
• Making advertising news when there is no product news (announcing a new
advertising creative approach to be introduced during the Super Bowl)
• Bringing advertising to life (touring Oscar Mayer’s ‘Wiener Mobile’, ‘Morris – The
Cat with
• Nine Lives, California’s ‘Dancing Raisins’, and ‘Tony the Tiger’)
• Extending promotion programmes (establishing follow-up events and other
outreach efforts tied to marketing promotions, such as Ralston Purina’s ‘Big Cat
Survival Fund’ donations and publicity support for the nation Zoological
Association)
• Building personal relationships with customers (soliciting recipes form bakers
competing for the Pillsbury Bake-Off grand prize)
• Influencing the influential (sponsoring events and providing information targeting
opinion leaders)
• Communicating new product benefits (reporting newsworthy uses and discoveries
about product effects, such as the link between aspirin use and the reduced risk of
heart attack and stroke
• Demonstrating social responsibility and building consumer trust (linking
corporations and their brands with consumers’ causes and concerns)
• Defending products under attack (responding to critics or false claims, such as a
man’s claim that he had found a syringe in a can of Diet Pepsi)

The dramatic growth of public relations in the marketing mix is documented by a survey
of 243 marketing executives, more than one-third of whom claimed to have spent more
than 20% of their marketing budgets on public relations. The ten activities listed above
clearly demonstrate that most of what is called ‘public relations’ or ‘marketing public
relations’ is what has been referred to for years as ‘publicity’.

1.12 QUEST FOR QUALITY

Business and industry got a wake-up call during the 1980s: produce high-quality,
reliable products at a reasonable price or consumers will find somebody else, often in

30
another country, who will. Corporations worldwide mounted programmes under the
banners of total quality management (TQM) and ISO 9000. TQM became the dominant
buzzword of the 1990s for who could be opposed to creating and maintaining quality?
Companies stopped buying from suppliers that did not meet ISO 9000 standards.
Quality is not a fad. It is an international revolution.

At Motorola, for example, the goal was to reach ‘Six Sigma’. Six Sigma stood for six
standard deviations from the usual result of a defect rate of fewer than 3.4 parts per
million for every process step or procedure. That’s 99.9997% perfect.’ Motorola
developed a course called ‘Six Steps to Six Sigma’ to introduce TQM to all its
employees. TQM is not just an internal matter either. Do you subscribe to this view?

The six steps included the following:

• Step 1: Identify the product you create of the service you provide. In other words,
answer the question, ‘What is my mission?’
• Step 2: Identify the person who pays for the product or services that the company
produces.
• Step 3: Identify what you need to provide a product or service that satisfies the
customer.
• Step 4: Identify the process of doing your work. In other words, break down
operations into steps and tasks; chart the flow of work from supplier to customer,
spot tasks that are prone to error, and measure the defect rate and cycle time.
• Step 5: Redefine the process so that it is mistake-proof and so that wasted effort
is eliminated. If a task adds no value, throw it out.
• Step 6: Ensure continuous improvement by ensuring, analysing, and controlling
the process.

1.13 CORPORATE PRACTICE AS THE MODEL

It’s in business and industry that the public relations function is most often held up for
public scrutiny and evaluation. Individual practitioners and the profession are often
judged based on how those in business and industry discharge their duties and fulfil
their social responsibility.

31
1.14 SOCIAL RESPONSIBILITY
Corporate practitioners must assume an even greater share of the burden in
anticipating long-term consequences of their companies’ policies, balanced against
professional crisis planning and response to social concerns. Public relations
executives must counsel management that the public interest and corporate interest
converge in the long run and that this approach to corporate social responsibility must
take precedence over – or at least balance – concerns about immediate profit and
loss. Such an approach is spelt out in Ciba-Geigy Canada Ltd.’s vision statement on
social responsibility.

32
REVISION QUESTIONS
MCQ Exercises
1.1 The functional, dynamic and transactional process where participants strive to create and
share meaning through the exchange of symbol is known as .
A) transaction
B) communication
C) process
D) interactive

1.2 The largest portion of corporate philanthropy goes to .

A) health and human services
B) religious organisations
C) education
D) urban renewal

1.3 The text describes a four-step approach to creating and implementing a public relations plan.
To which step in the process do crafting your message, matching the message to the best
medium/media, and preparing documents to belong?
A) Analysing the situation
B) Planning the strategy
C) Implementing the plan
D) Evaluating the results

1.4 What should corporations consider when deciding on philanthropy?

A) Contributions should be in line with the corporation's mission and the recipient's interests
B) Contributions should be targeted to specific needs
C) Corporate giving should be tied to a set percentage of earnings
D) All of these

1.5 When dealing with community activists, it is best to take a firm and, if necessary,
tone to secure your company's position.
A) compromising
B) peaceful
C) diplomatic
D) friendly

33
 TOPIC 2: PUBLIC RELATION SKILLS REQUIRED BY A PUBLIC
RELATIONS PRACTITIONER

On completion of this module, the student will be

able to:

1. Understand the type of skill a PR practitioner must

possess
2. Distinguish between personal qualities and professional
skills needed by a PR practitioner
3. Know the skills required for a PR job
4. Know the correct tools you can use for a specific audience

2.1 INTRODUCTION
Public relations refer to the practice of enhancing an organisation’s reputation and
image in the minds of the target audience through ethical means. Public Relations
experts strive hard to maintain a cordial relation between the organisation (key
members) and stakeholders, investors, employees, partners and so on. It is the public
relations manager’s key responsibility to ensure that the free flow of information takes
place between both the parties (the organisation and its target audience).
Organisations hire public relations experts to position themselves strongly in the minds
of target audiences, investors, stakeholders, employees and all others associated with
it. Public relations activities are designed specially to create a strong brand image.
Public relations experts should ensure their target audiences agree to what they intend
to sell and thus in a way, enhance as well as maintain the reputation of their
organisation through ethical means. Public relations can also be defined as a strategic
communication process that builds mutually beneficial relationships between
organisations and their publics. It is the practice of managing communication between
an organisation and its publics. In this chapter, we look at what type of skills one must
possess to be successful in the Public Relations industry.

• Think about a set of skills that one needs to be

successful when dealing with publics
• What is a Public Relations Expert

34
2.2 THE IMPORTANCE OF PUBLIC RELATIONS EXPERTS
In the current scenario of cutthroat competition, every organisation struggles to stay a
step ahead of its competitors. Every organisation needs to communicate well with its
stakeholders, partners and everyone associated with it.

Why are public relations experts important?

• Public relations experts are hired to present one’s organisation in the best light.
• Public Relations experts create a positive image of a particular brand in the minds
of target customers through regular interaction, press release, newsletters,
interviews, events, functions, hiring a celebrity as a brand ambassador or even
through charitable functions.
• Public Relations is essential for effective brand positioning. In a layman’s language,
public relations experts are hired to make an organisation and its products/brands
popular among the masses.
• Public relations experts strive hard to reach to the maximum people (potential
customers) and eventually gain maximum exposure for their organisation/brand.
More and more people relate to their brand, and automatically revenue of the
organisation goes up.

In today’s world, every organisation needs to understand the needs and expectations
of its target audiences. Public relations experts ensure a free flow of information
between the organisation and its target audiences, necessary for the survival of every
business. Correct information must reach the customers for them to be loyal towards
your brand. (Products and services). Public relations experts help an organisation
stand apart from the crowd.

Public relations department gives the customers and the whole world a better
understanding of how their organisation functions, policies, products, services and so
on. Public relations experts focus not only on information flow from an organisation to
its public but also vice a versa. Proper feedback is being taken from potential
customers as to how they feel about the organisation and its products. These reviews
and feedback (positive or negative) help an organisation to grow to its full potential.
Positive feedback calls for a celebration, but negative reviews are also taken seriously

35
and necessary changes are incorporated in the system to meet the expectations of the
consumers.

The role of public relations expert becomes critical under any kind of crisis or
unfavourable circumstance. It is the role of the public relations manager to save the
reputation of his/her organisation. He needs to be on his toes to face questions from
the media/public and handle all the criticism with a smile. It is the public relations
manager’s role to take immediate charge of any adverse situation and turn negative
situations also into the company’s favour. Public relations experts in true sense are
the face of every organisation who work hard towards saving and maintaining an
organisation’s reputation ad image. It is a new and highly successful way of staying
connected with the target audiences for a better brand image.

If you can answer some of these questions, you can score a

great PR job; you’ll be joining a growing industry where you can
make upwards of R40,000 on average for an entry-level job.
Every major company in the world needs some form of PR, so
there will never be a shortage of opportunities. Use this
resource to build your confidence and ensure nothing catches
you off guard. Remember that killing it at an interview is a skill
just like anything else. Time to practice that skill!

2.3 PUBLIC RELATION SKILLSET

Public Relations experts ought to possess the following skills for a highly successful
and rewarding career.

Excellent Writing Skills

A Public Relations expert needs to write well. He ought to be creative and should
master the art of putting thoughts into meaningful words. Your words need to create
the desired impact and influence the customers. Make sure whatever you write is
relevant and puts your organisation in the best light.

Creative

36
A public relations expert needs to be extremely creative and should be able to think
out of the box. He/she should be able to come out with innovative ideas to promote
the organisation and its products among the target audience. In today’s world of fierce
competition, it is essential for marketers and public relations experts to experiment
with new ideas /concepts and develop something which would benefit the end-users.

Good Communication Skills

Public Relations experts must master the art of effective communication skills. It is
essential to speak well. Do not just speak for the sake of it. Public relations experts
must ensure the recipients have understood what they intend to communicate. Two-
way communication is the essence of effective public relations. Whatever you
communicate ought to make sense and well understood by target customers.

Focussed
Stay focussed and take care of even the minutest details. Do not ignore even the
slightest doubt. Even a single detail left unattended can become a major cause of
concern in the future. Crosscheck every single detail and observation before jumping
to the conclusion.

Study a lot
Public relations experts ought to study a lot and do extensive research before
designing public relations activities.

Proactive
A public relation professional ought to be proactive and on his toes always. He needs
to have a strong grasping power with an eagerness to learn. Lazy individuals generally
do not make good public relations professionals.

Competitors research
Keep your eyes and ears open. Find out what your competitors are up too. It is
important to keep a close watch on competitor’s activities and initiatives. You may draw
inspiration from them but following them blindly would do no benefit and in turn, tarnish
your organisation’s image.

37
Be Friendly
Public relations expert needs to have strong networking skills. As a Public relations
representative, one needs to have a strong association with people from the media
industry (TV, Radio, Print - Newspapers/Magazines), employees, investors,
shareholders, partners etc. Sometimes it becomes essential to flash your smile and
get your work done. Never spoil your relationship with anyone. Don’t fight with anyone.
If you do not like someone, the best way is to ignore. You never know when you might
need the other person.

Loyal towards your Job

Be loyal to your job. Remember a public relations job is not only a nine to six job. You
need to stay back sometimes, even at odd hours, and you cannot just complain. At
times you need to meet lots of people in a single day, but one cannot crib. One needs
to be a little flexible. Make that little extra effort to satisfy your clients.

Pleasing Personality
Public Relations Professionals need to have a pleasing personality. Make sure you
dress smartly. Public relations experts need to be extroverts.

Tech-savvy
Be a little tech-savvy. Depend on social networking sites such as Facebook, Orkut,
Twitter to spread awareness and promote your organisation.

2.4 TYPES OF PUBLIC RELATION TOOLS

Public relations experts create awareness and market their organisation and its
products/services to various media sources which include TV, Radio, internet,
newspapers, magazines and so on.

Public relations experts develop and design various interesting and creative stories
about their organisation and products and pitch them to various media people.

38
Organisations bank on their relations with media channels to enhance the reputation
of their brand.

Following are the tools used in media relations:

Press Kits
Press kits include written material about the organisation and its top people.

Audio Releases
Audio releases or video releases are pre-recorded messages distributed to various
media channels.

Matter Releases
Small local newspapers accept articles written by organisations when they do not have
sufficient articles or stories to publish. Such releases are called as matte releases.

Website Press Room

Public relations experts promote their organisation and its products/services through
online press rooms.

Media Tour
Public relations experts publicise their organisation and its products through media
tour where key people of the organisation travel to important places and locations and
promote their products through various interviews with media people. They interact
and share the benefits and USPs of their products/services with people from various
news channels, radio channels and even print media. Organisations also hire
celebrities or other people popular among the masses to promote and publicise their
organisation.

Newsletters
Newsletters are nothing but publications which are distributed regularly (monthly,
quarterly) among target audiences. Public relations experts collect complete
information (name, address, age group) of their target customers and distribute

39
newsletters to create awareness about their products. Newsletters should include
information about the organisation, interview from key people, product information,
testimonials from clients and so on.

Events/Functions
Public relations experts organise special events, gatherings, parties, to target their
customers and promote their organisation and its products among them. People from
media are also invited for coverage.

Speaking Engagements
One of the indirect ways of publicising an organisation and its products is through
interacting with potential customers and target audience. Company officials address
the target audience and do not only discuss their products and services. They
generally prefer any topic which would interest the target audiences.

Employee interactions regularly

Employers need to stay in constant touch with employees and keep them abreast with
the latest developments and happenings within the organisation. Management or
public relations experts should circulate the latest events; new product launches
among employees through emails, circulars, notices, or simply communicating with
them.

Charity/Corporate social responsibility

Public relations experts engage in various social and charitable activities to publicise
their organisation and its products. Organisations distribute products among target
audiences to create a goodwill of their organisation.

40
REVISION QUESTIONS

MCQ EXERCISES

1.1 A political scientist would most likely employ the concept of political socialization in a
study examining
A) How members of a political organisation interact with one another.
B) the nature and meaning of citizenship.
C) how people come to embrace certain political beliefs, values, and actions.
D) methods for making reasoned decisions about policy issues.

1.2 An organisation’s most important relationships are those

with .
A) customers and other consumers
B) government regulators and inspectors
C) investors and analysts
D) employees and their supervisors

1.3 Early theories of mass communication suggested that audiences were passive recipients
of media messages and thus vulnerable to manipulation. Which of the following best
describes current thinking?
A) Audiences are more vulnerable and passive than ever before
B) Television viewing, in particular, creates increased activity in the right hemisphere of the
brain
C) Active receivers are not uniformly affected by mass communication messages
D) Technology has led to increasingly passive recipients at the ends of message transmission
systems

1.4 For most influential citizens and leaders in government and industry, which one of the
following is a daily habit?
A) Scanning the major networks evening news programs
B) Contacting news media to challenge or reinforce a reporter’s story
C) Reading at least one daily newspaper
D) Going directly to the wire services for news, bypassing the traditional media

1.5 Mission statements become simply cosmetic additions to brochures, reports, lobby
exhibits, speeches, and other communications if they do not have which one of the following?
A) Clear and concise wording
B) Effective illustrations
C) Management commitment
D) Government enforcement

41
 TOPIC 3: GOVERNMENT AND POLITICS

On completion of this module, the student will be

able to:

1. List the three major goals of government public

relations programmes
2. Describe the role of public relations in the military.

3.1 INTRODUCTION
Government public relations specialists play a variety of roles. The diversity of goals
and activities in government is greater than in any other area of public relations
practice. One public affairs specialist tries to explain how the Internal Revenue Service
will become more users friendly, whereas one practitioner publicises the introduction
of a new commemorative postage stamp; another promotes youth basketball at the
local community centre. While one practitioner seeks to gain public compliance with
the mandatory use of child safety seats in cars, another attempts to interpret national
public opinion to assist in domestic policy formulation

Do you consider the government to be the

“middleman”, the third party or both regarding public
relations issues in a civil society? Why?

3.2 THE ROLE OF PUBLIC RELATIONS IN GOVERNMENT

Government touches every part of society, and virtually every component of
government is closely tied to and reliant upon public relations. The successful
democratic government maintains responsive relationships with constituents that are
based on mutual understanding and two- way communication.

Without an informed and active citizenry, elected and appointed officials may lose
touch with the true needs and interests of their constituents. Programmes costing
millions of dollars may be undertaken to address public needs that have been wrongly
prioritised while more urgent and pressing needs may remain unidentified. Special-
interest politics may dominate decision-making. Citizen discontent may linger just

42
beneath the surface and then suddenly appear and be fuelled by angry rhetoric and
demagoguery rather than a sober assessment and appreciation of the issues.

Write short notes on the effectiveness of public relations

in South Africa before and after the 1994 elections.

Government is intended to provide services that would otherwise be impossible or

impractical for individuals to provide – services such as:

• Police and fire protection,

• Wildlife preserves,
• National defence,
• Transportation systems,
• Justice systems,
• Social programmes,
• National museums

These programmes, although administered by government officials, are responses to

the needs of ordinary citizens. As the needs of society have expanded in scope and
complexity, government at all levels has also grown. Some now no longer see
government as an extension or executor of the will of the people but rather as the
adversary or ‘big brother’.

Much of the expansion of government in America and other countries can be attributed
to two basic trends:

• First, increased population, social movements, business and economic activity,

and technology have created new problems and issues that require regulatory
attention.
• Secondly, US citizens have increasingly grown to expect more from all sectors of
government. What may start as an offhanded remark such as, ‘There ought to be

43
 a law against that!’ often leads not just too new regulations but also to agencies
that are charged with ensuring that the new laws are obeyed.

What is the difference between Public Relations, Public

Affairs, and Government Relations?

Today government is viewed more than ever as the primary mechanism to address
injustices and inequities in virtually all human activities – from what happens in the
privacy of people’s bedrooms to what happens in outer space. As the government
becomes more complex and ubiquitous, the challenge of maintaining citizen
involvement and ensuring that government is responsive to societal needs becomes
more difficult. Elected official often claim credit for their election on their ability to keep
a finger on the pulse of constituents.

However, because of the sheer magnitude and complexity of the job, much of that
responsibility falls on the shoulders of government public relations specialists. The
complexity of public relations work is very apparent in local government. This is closest
to its constituents, both in the services it provides and in the accessibility of elected
and appointed officials. Moreover, the growing influence of neighbourhood-level
activist groups places a unique burden on local government management.

Increases in the level of public involvement in government can be found on the national
level as well. For example, at its annual conference in 1998, the International
Association for Public Participation reported a growing membership of over 1000
persons in seventeen different countries. The goal of the organisation is to involve the
public in government and industry decisions that affect their lives.

Government public relations activities, many designated by terms such as public

affairs, public information, and public communication, have developed as a political
and administrative response to achieve various organisational goals. They are a key

44
component of the administrative system and are specifically designed to bridge the
gap between popular and bureaucratic government. Other similar instances showed
that government policymakers often view public relations as a ‘soft’ service that can
be cut more easily than essential core services such as police protection, road
building, and human services. In response, National Association of Government
Communicators President Russell Forte wrote to the governors of every state
emphasising the importance of maintaining the public information function in
government.

Often, but certainly not always, government public relations programmes deal with
one-way communication that is directed towards constituents. However, when viewed
in this way by policymakers, whether in government or the private sector, the perceived
impact of cutting public relations budgets forces the public themselves to be more
responsible for obtaining information about the organisation. When budgets are tight,
this becomes a regrettable but acceptable consequence for many government leaders.

Specific PR objectives will vary from agency to agency, but the basic justification for
government public relations rests on two fundamental premises:

• That a democratic government must report its activities to the citizens, and
• That effecting government administration requires active citizen participation and
support. Even the staunchest critics of ‘government propaganda’ concede that
the first justification is a valid one.

However, effective government administration is sometimes constructed by critics to

mean protection of the bureaucracy at all costs. Overall goals for government public
relations programmes, regardless of the level of government, have at least three things
in common:

• Informing constituents about the activities of the government agency

• Ensuring active cooperation in government programmes (for example, voting,
curbside recycling), as well as compliance in regulatory programmes (for example,
mandatory seat- belt use, antismoking ordinances

45
• Fostering citizen support for established policies and programmes (for example,
foreign aid, and welfare).

3.3 MAINTAINING AN INFORMED CITANZARY

Do public relations practitioners for private companies

and government public relations practitioners have
commonalities regarding their responsibilities?

The primary job of government public relations practitioners is to inform. While a

multitude of other roles and responsibilities are assigned to specific government
practitioners, many of which are of enormous importance and scope, ensuring the
constant flow of information to persons outside and inside government is generally
speaking the top priority of government public relations practitioners. The information
task is global because they need to inform extends well beyond a country’s borders.

3.4 SOUTH AFRICA: GOVERNMENT COMMUNICATION AND

INFORMATIONSYSTEM (GCIS)

The South African Government’s communication service is centralised in the

Government Communication and Information System (GCIS), which is managed from
the Presidency by a minister without portfolio who acts as its political head. The GCIS
forms a support function for all government departments and initiates central
communication activities. The Government Communication and Information System
formulate their vision and mission as follows:

Vision
Making and indispensable and widely valued contribution to society – working with the
Government for a better life for all, by meeting the Government’s communication
needs and the public’s needs.

Mission

46
As a government communication agency the GCIS‘s mission is to develop, promote,
provide and coordinate:

• Communication strategy for the Government

• Development communication between the Government and the public
• Coherence across spheres and sectors of the Government
• Identification of public information needs
• Excellent media and communication services to the Government
• Policies for a democratic communication and information environment
• Projection of South Africa’s image internationally
• Training strategies and programmes for government communicators
• Government’s corporate identity

What are Information Systems?

3.5 CITIZEN PARTICIPATION IN GOVERNMENT

An important but often overlooked responsibility of government practitioners is
soliciting the involvement of citizens in government and motivating them to participate
in decision-making processes. Often the major obstacle to such participation is internal
because elected officials and administrators may be reluctant to have their carefully
formulated plans altered by people representing a multitude of interests and citizen
viewpoints.

Identify the system of government that promotes the full

participation of the citizens and explain how decisions
are made.

While public involvement typically slows and complicates the process, executive
director of the Virginia Coalition for Open Government, gives the following advice to
government administrators:

47
• Watching somebody make laws isn’t always pretty. But give citizens an opportunity
for timely input in crucial stages of law-making and government effectively starts
working for them. It works that way for savvy influence-peddlers, lobbyists and
special interests; it needs to work that way for all.

Scientific surveys of citizens are increasingly used in government. Politicians,

especially those running for national office, have long relied on the roper and Gallup
polls, as well as on privately commissioned surveys, for guidance in formulating
campaign strategies. More recently, citizen surveys have been used for identifying
priorities for government. Besides, surveys are being used as the bottom line for the
government.

When used to set goals and priorities, citizen surveys prove to be an equalizer against
well- funded special interests and lobbying group. ‘The greatest strength of the citizen
survey is that they have the potential to sample the viewpoints of all citizens – not
simply those who choose to participate. Conducting surveys of citizens can prove
counterproductive when they are not properly administered.

Surveys also provide only a snapshot in time of public opinion. This is clear before
nearly every presidential election when polls show drastic changes in voters’
preferences in response to events such as national conventions and domestic or
international crises. Surveys take on greater credibility the more often they are
repeated because this procedure enables trends to be charted and previous findings
to be validated.

Increasing involvement in programmes and activities leads many government

practitioners to use other tools and tactics, often identical to those of private-public
relations and advertising firms. Many of these efforts go beyond mere increased
communications efforts.

48
3.6 BARRIERS TO EFFECTIVE GOVERNMENT PUBLIC RELATIONS
Public relations practitioners in government shape much of the meaningful dialogue
necessary to make democracy work. Their work carries with it a civic obligation to
serve as intermediaries between elected officials and staff and their citizen
constituencies.

Yet the work of building and maintaining of government and citizen relationship is
hampered by two major factors:

• Public apathy
• Legislative hostility

3.7 PUBLIC APATHY

Unlike most business operations, government practitioners usually cannot target small
segments of broad publics to achieve desired results, and ignore the rest of the people.
Government seeks to serve all taxpayers, or at least as great a proportion as possible.
This is an extremely difficult task, made nearly impossible because of the lack of
interest among many citizens.

Public apathy is an indisputable fact of public life. The percentage of eligible voters
who participate in major national elections is invariably low, and the percentage of
those voting in state and local elections is even lower. Even in large and mid-size
cities, candidates are often elected by slim margins. Only 50% of adult Americans
voted in the 1988 presidential election, and only 36% voted in the 1990 elections. One
writer said that public apathy is a ‘groundswell’ among Americans.

Contributing to public apathy are citizen frustration and a general sense of citizen
importance when confronted by the government at all levels. Correct or not, the
popular perception of government is one of gridlock, a maze of red tape, special
interests, corruption, ineptitude, and partisan politics. A law degree is virtually a
prerequisite for elected officials at the federal and state levels. The system has grown
too complicated for most citizens either to understand or to obtain easy access to

49
government services. Contributing to public apathy are citizen frustration and a general
sense of citizen importance when confronted by the government at all levels.

Correct or not, the popular perception of government is one of gridlock, a maze of red
tape, special interests, corruption, ineptitude, and partisan politics. A law degree is
virtually a prerequisite for elected officials at the federal and state levels. The system
has grown too complicated for most citizens either to understand or to obtain easy
access to government services.

Paying taxes, especially to the federal government, creates citizen hostility that spills
over into other areas of government not related to the collection of taxes.

3.8 LEGISLATIVE HOSTILITY TO THE FUNCTION

While public relations functions have been established longer in government than in
any other field of practice, it has never been effective or given the respect enjoyed by
equivalent practitioners in the private sector. In government, as in other organisational
settings, public relation is a legitimate management function that helps make agencies,
departments, and other public entities responsive to the citizens they were created to
serve. However, government practitioners often face more hostility and suspicion than
do non-government practitioners. This hostility stems from four fundamental and long-
standing conflicts and embedded in our democratic system of government:

• The continuing struggle between the press, fighting for “for the people’s right to
know”, and the officials of the government, who insists upon discretion in certain
sensitive areas of the public business.
• The unrelenting struggle for the balance of power between the legislative and
executive
• branches of government. This contest is present whether it is between mayor and
council, governor and legislature, or president and Congress.
• The continuing struggle for power between major political parties. The “Out” party
fears the power of an army of “propagandists” to keep the “ins” in and the “outs”
out.

50
• The protests of industries, institutions, and other vested interest when threatened
by proposed legislation or government regulation. They often disparage the use of
public funds and government machinery to carry the day against them.

With the aid of practical examples, explain each of the

above- mentioned conflicts. (South African context).

Beyond these conflicts is the inevitable association of government information

programmes with the word “propaganda”. The Gillett Amendment is only one of six
restrictions on the public relations function that have been written into US codes.
These laws cloud and confuse the practice in the federal government:

Amendment (by Rep. Gillett ) to Interstate Commerce Commission appropriations bill

passed October 22, 1913, forbids spending for “publicity experts” any part of
appropriations unless that money is specifically appropriate by Congress (Ch.
32,$1,38 Stat.212 (1913). The ‘gag law’ of July 11, 1919, prohibit using any part of an
appropriation for services, messages, or publications designed to influence any
member of Congress in his or her attitude toward legislation or appropriations (18,
U.S.C. (1919). Another law passed in 1919, but not strictly enforced until 1936,
requires that all duplicating of material must be done by the Government Printing
Office, or at least farmed back to the department for reproduction by the GPO (44,
U.S.C.$ 501 (1919).

Title 5, Section 3107, U.SC. 54 (Sept. 6, 1966), of the United States Code, restated
the 1913 Gillett Amendment prohibition against hiring publicists “in the positive form”,
clearly stating that “appropriated funds may not be used to pay a publicity expert unless
specifically appropriated for that purpose” (Pub. L. No. 89-554, $ 3107, 80 Stat. 416,
1966).

No part of any appropriations contained in Public Law 93-50 (enacted July 1, 1970) or
any other act, or of the funds available for expenditure by any corporation or agency,
shall be used, other than for normal and recognized executives-legislative

51
relationships, for publicity or propaganda purposes, for the preparation, distribution, or
use of any kit, pamphlet, booklet, publication, radio, television, or film presentation to
support or defeat legislation pending before Congress, except for the presentation to
Congress itself (Pub. L. No. 93-50, $ 305, 1973).

3.9 GOVERNMENT/MEDIA RELATIONS

Since the very beginning of the American government, the first amendment to the
Constitution that has guaranteed freedom of the press. This freedom is vital to the
founders of the new nations, so much so that Thomas Jefferson said, ‘Were it left to
me to decide whether we should have a government without newspapers or
newspapers without a government, I should not hesitate a moment to prefer a latter”.

3.10 MEDIA ACCESS TO GOVERNMENT

In more recent times, the constitutional freedoms guaranteed to the press in America
have been expanded and clarified. Access to government information, in addition to
the freedom to speak out or write freely about government, have been codified in
freedom of information legislation - or “sunshine laws”. Except for well-defined areas,
such as national security, litigation, certain personnel records, and so forth, virtually
every piece of information maintained by the government is open to inspection by the
press and by the public for that matter.

Relate what is covered in the above paragraph to the Third

World Countries

(e.g. South Africa).

The right of access to government information and meetings is of paramount

importance. Beyond just informing citizens about the official actions of the government,
the indispensable role of the press as the watchdog of government helps to guarantee
accountability, reduce corruption and crystallize public issues and opinions, and it
places the press in the position of being the city’s representative in the broad system
of checks and balances.

52
Almost by definition, government –press relationships are adversarial. The
government frequently argues that any large organisation is more effective if it can
retain some degree of privacy in formulating its strategies. There has been a strain in
the relationships between South Africa’s President, Thabo Mbeki, and the South
African media for a long time. Former President Nelson Mandela maintained an open-
door policy with the international and national press, which was mutually perceived as
closed and increasingly inaccessible. Even Mr Mbeki’s own office identified his
inaccessibility to the media as a factor which may reflect negatively on his image.

In March 2001 he had a meeting with the South African National Editors Forum (Sanef)
in which it was decided to put measures in place to correct the situation and ease the
relationship. The media undertook to provide dedicated reporters for the president’s
office, and Mr Mbeki promised accessibility.

3.11 GOVERNMENT DEPENDENCE ON THE MEDIA

The relationship between journalists and the government is simultaneously an
unquestioned necessity and an obstacle to government communication with citizens.
A shortage of media attention is rare, but it usually comes when government agencies
want it least.

In a democratic country, is it wise for the government

to rely on the media for statistical information
concerning public delivery? Why?

The standards used by reporters and government communicators to define news are
usually quite different. It is not surprising that much information considered by
individual agencies to be of vital importance gets lost in the mountains of information
generated by public relations staffs.

Despite the difficulties, the government relies heavily on the press to pass on important
information. Regardless of its use of brochures, speakers’ bureaus, cable television,
and many other methods of disseminating information, the government’s
communication vehicles will never match the effectiveness of the privately owned

53
mass media. Perhaps more important, the power of the press to set the agenda for
public debate, although often underemphasized by reporters and editors, is
unmistakable.

The news media do not have the resources to cover all that is the public’s business in
government. First, there are not enough journalists on all the news media payrolls to
adequately track all the developments in the many agencies and activities at all levels
50 of government. Secondly, there is a dominant set of news and values that prefers
and rewards the negative, controversial and sensational aspects of government.
Critics condemn the media for ‘elections by sound bites’ and for an overemphasis of
issues not relevant to the performance of government.

3.12 MILITARY PUBLIC RELATIONS

The American public’s view of and relationship with the military changed dramatically
in the 1990s, threatening to weaken recruitment efforts and legislative support.
Although the end of the cold war offered renewed hope for a peaceful world, many
internal issues facing the military made front-page news as well as lead stories for
tabloid television programmes.

Some of the most noteworthy stories had little to do with national defence, security,
nuclear weapons or similar topics. Instead, the focus of many administrative and news
media investigations was often on the sexual activities of members of the armed forces
– from the lowest to the highest ranks.

54
Table 5: Military Public Relations

In South Africa, the National Defence Force (SANDF) is also stirring

controversy and is attracting public attention for the following reasons:
• The integration of former liberation forces and statutory forces (former enemies) in a
single united defence force since 1994 has posed unique challenges for the military
– with public interest rising when incidents of racial tension highlight the problematic
nature of the integration (such as the Tempe Military Base murders in the late 1990s
and other similar incidents).
• The 1998 action in Lesotho on behalf of the SADEC countries
• The multi-billion Rand arms procurement deal that has elicited suspicion
of irregularities
• South Africa’s military involvement in the Democratic Republic of the Congo.
• It is therefore clear that the SANDF has a major public relations task to perform. The
SANDF is a prime example of an organisation in the spotlight that is attracting
negative attention. Externally, it is perceived as a critical element in the safeguarding
of the country. Internally, it is involved in the complete and far-reaching process of
integrating various forces and races into a harmonious organisation. The following
problems are evident from what has been said above:
• The SANDF is highly visible because members of the SANDF wear uniforms, drive
distinctive vehicles in public, fly aircraft, have military units operating in almost every
community in South Africa, and so on.

The public needs to trust and have confidence in the organisation and its members because
it is the visible power of government on which the public has to rely.
• Every individual member of the SANDF is seen as a representative of the organisation.
This means that improper actions by individual members have a great impact on the
organisation as a whole.
• Internally the SANDF has to cope with the pressure of integrating various military
cultures while at the same time motivating and training their staff to fulfil their duties in
such a way that they meet the expectations of the public.
• Because public opinion is such a dynamic force, the public’s expectations and
perceptions of the SANDF – as well as their attitudes towards the SANDF – are
constantly changing.

The most important aims of the strategic role of the professional public
relations practitioner in the SANDF can be formulated as follows:
• To be an integral part of the decision-making process at every of the organisation.
• To protect, maintain and promote the image of the SANDF as a professional
organisation which has integrity and in which the public can justifiably place their trust
and confidence.
• To interpret the public’s perceptions of the organisation and conversely to interpret the
• the organisation to its various publics.

55
 • To guide and facilitate organisational communication and communication processes
within t organisation in such a way that every member of the organisation feels part of
the team an understands what is expected from him or her.
• To plan and execute communication strategies to enhance the SANDF’s ability
• effectively to fulfil its role in society.
• To maintain credible and professionally managed relationships with specific
stakeholders such as the press.
• To establish and maintain crisis communication plans to enable the organisation to cope
with will exceptional and unforeseen circumstances.
• It is involved in the complete and far-reaching process of integrating various forces and
races into a harmonious organisation. The following problems are evident from what
has been said above:
• The SANDF is highly visible because members of the SANDF wear uniforms, drive
distinctive vehicles in public, fly aircraft, have military units operating in almost every
community in South Africa, and so on.
• The public needs to trust and have confidence in the organisation and its members
because it is the visible power of government on which the public must rely.

3.13 GOVERNMENT AS A BUSINESS

South African government changed its operational strategy in 1999 from the
Reconstruction and Development Programme (RDP) to GEAR Strategy.

Discuss what was the impact of this change on civilians,

businesses and government’s operation?

The 1990s saw significant change evolving in the way that many government agencies
integrate their activities into society; these new developments might have altered some
of the basic philosophies of government for a long time to come. They include the
following:

• Economic conditions and greater taxpayer scrutiny have caused nearly every
government entity to tighten its belt.

56
• Government entities at all levels grew increasingly aware of the need to compete
with other government agencies in the public and political arenas for scarce funding
resources.
• There was a growing attitude among many observers that the government should
be run like a business, not a non-profit charitable organisation with unlimited
resources.
• Perhaps the most widely read book ever about government management was
published: David Osborne and Ted Garbler’s Reinventing Government: How the
entrepreneurial Spirit Is Transforming the Public Sector?

3.14 PUBLIC RELATIONS IN POLITICS

Before the first fully democratic non-racial election in South Africa in 1994, elections
for the National Assembly were based on a geographic constituency basis. Specific
candidates were then nominated in a geographic constituency, and individual
members of political parties contested a specific seat in a local area.

Political parties had to canvass, with the help of volunteers, in those specific areas and
the emphasis was on interpersonal canvassing. Local media such as posters and
pamphlets that were paid for by the party in that constituency were used. National
advertising and media were also utilized to support local efforts.

The 1994 election saw the introduction of a proportional system of an election on a

national scale. Political parties competed on a provincial and national level without
specific candidates being nominated to specific geographical constituencies. Political
parties must compete on a national level for votes generated by paid media advertising
and especially by public relations campaigns that are planned by experts.

The role of professional communication practitioners has therefore increased and

become indispensable for success in politics. See, for example, the web sites of the
major political parties in South Africa.

57
REVISION QUESTIONS

MCQ EXERCISES:
1.1 A proactive industrial relations programme must cover which of the following decision(s)?
A) Communication
B) Competence
C) Discipline and conflict
D) All of the given options
1.2 According to the labour commission major recommendations, Union, once recognised
should be valid for years to be co-terminus with the period of settlement.
A) Two
B) Three
C) Four
D) Five
1.3 As part of your job to implement a PR plan, you must analyse the situation. Which of the
following would NOT be a part of that analysis?
A) asking who, what, where, when, why and how
B) researching
C) writing a problem statement
D) crafting your message
1.4 As the public relations director for a large organisation, what additional responsibilities
would be yours to handle?
A) crafting the organisation's public identity
B) coordinating crisis communication
C) giving speeches
D) All the given options
1.5 During which stage of the four-step approach do you establish how you will evaluate the
results of your plan?
A) Analysing the situation
B) Planning the strategy
C) Implementing the plan
D) Evaluating the results

58
 TOPIC 4: PUBLIC RELATIONS FOR NON-PROFIT
ORGANISATIONS, HEALTH CARE AND EDUCATION

On completion of this module, the student will be

able to:

1. Describe the role of the public in the on-profit sector

2. Identify intensified competition for donations and
increasing demands for accountability as driving forces
in many non-profit organisations’ public relations efforts

4.1 INTRODUCTION
A non-profit organisation (NPO) (also known as a non-business entity is an
organisation with the purpose of which is something other than making a profit. A non-
profit organisation is often dedicated to furthering a particular social cause or
advocating for a particular point of view. In economic terms, a non-profit organisation
uses its surplus revenues to further achieve its purpose or mission, rather than
distributing its surplus income to the organisation's shareholders (or equivalents) as
profit or dividends.

This is known as the non-distribution constraint. The decision to adopt a non-profit

legal structure is one that will often have taxation implications, particularly where the
non-profit seeks income tax exemption, charitable status and so on. The terms non-
profit and not-for-profit are not consistently differentiated across jurisdictions. In
layman's terms, they are usually equivalent in concept, although in various jurisdictions
there are accounting and legal differences.

Public Charities versus Private Foundations – What is the

difference?

59
4.2 NON-PROFIT ORGANISATIONS’ LANDSCAPE
The non-profit landscape is highly varied, although many people have come to
associate NPOs with charitable organisations. Although charities do make up an often
high-profile or visible aspect of the sector, there are many other types of a non-profit
organisation.

Overall, they tend to be either member-serving or community-serving. Member-serving

organisations include mutual societies, cooperatives, trade unions, credit unions,
industry associations, sports clubs, retired serviceman's clubs and peak bodies –
organisations that benefit a particular group of people, i.e. the members of the
organisation.

Typically, community-serving organisations are focused on providing services to the

community in general, either globally or locally: organisations delivering human
services programs or projects, aid and development programs, medical research,
education and health services, and so on. It could be argued many non-profits sit
across both camps, at least in terms of the impact they make.

For example, the grassroots support group that provides a lifeline to those with a
particular condition or disease could be deemed to be serving its members (by directly
supporting them) and the broader community (through the provision of a service for
fellow citizens). Many NPOs use the model of a double bottom line in that furthering
their cause is more important than making a profit, though both are needed to ensure
the organisation's sustainability.

Although NPOs are permitted to generate surplus revenues, they must be retained by
the organisation for its self-preservation, expansion, or plans. NPOs have controlling
members or a board of directors. Many have paid staff, including management,
whereas others employ unpaid volunteers and executives who work with or without
compensation (occasionally nominal).

In some countries, where there is a token fee, in general, it is used to meet legal
requirements for establishing a contract between the executive and the organisation.

60
Designation as a non-profit does not mean that the organisation does not intend to
make a profit, but rather that the organisation has no 'owners' and that the funds
realized in the operation of the organisation will not be used to benefit any owners.
The extent to which an NPO can generate surplus revenues may be constrained, or
use of surplus revenues may be restricted.

Think of several non-profit organisation in your area, why do you

think there is a significant increase in the number of non-profit
organisations in your area?

4.3 THE THIRD SECTOR

Non-profit organisations did not always play such a large and significant role in
American society. There were only 12500 charitable tax-exempt organisations not
affiliating with churches in 1940 and only 32000 in 1950. In the United States, there
are approximately 750 000 ‘public-serving’ non-profit organisations, and these have
rapidly expanded in the 1980s 1990s.

Such as business and professional associations and societies, social and fraternal
organisations, and cooperatives. The non-profit sector in the United States represents
an expenditure of more than $350 billion and more than 7.1 million full-time equivalent
employees.

Do you think a non-profit organisation should have a

public relations plan

4.4 CHARACTERISTICS OF NON-PROFIT ORGANISATIONS

A definition of the non-profit sector that can be applied in many countries includes five
distinguishing features of such organisations:

61
• Organised: In short, there is some institutionalized entity, meaning that the
organisation has a charter, regular meetings, officers, rules, or other indicators of
relative permanence.
• Private: Non-profit organisations are institutionally separate from government,
meaning that they are not agencies of government; neither are they controlled by
the government even if they receive government funding.
• Non-profit distributing: Unlike other organisations in the private sector, non-profit
organisations are not attempting to generate profit for the owners or directors,
meaning that excess revenues must be spent to achieve the organisation’s
mission.
• Self-government: Non-profit organisations govern themselves and control their
activities. This means that they set their procedures and are independent of
external control.
• Voluntary: At a minimum, there must be some voluntary participation in either the
management of an organisation or in the conduct of its programme, meaning that
there is an aspect of charitable contribution involved.

Can Non-profits Opt Out Of State Unemployment Taxes?

When Are Charitable Contributions Deductible?
How can non-profits dispose of donated items?

4.5 VOLANTURISM AND PHILANTROPHY

Discuss the difference between voluntarism and philanthropy

and social responsibility

Many non-profit organisations, volunteers mean the difference between providing

services and closing the organisation. Almost 40 million people volunteer (work without
pay) each year. More than one million organisations in the United States are
recognized by the International Revenue Service as tax-exempt or non-profit
organisations.

62
This figure includes private foundation reporting annual revenues of 20 billion dollars
and a broad range of non-profit organisations raising more than $300 billion annually.
Despite these impressive numbers, the number of volunteers and donated dollars are
seldom enough to meet the demand for non-profit organisations’ services.

Public relations, therefore, has become more critical in the non-profit sector as a
turbulent economic, social, and political climate presents new challenges with each
passing year. Across the country, state and local governments have struggled for more
than a decade with budget deficits as demand for services has outpaced revenues.
Localities, both large and small, slashed budgets and increased taxes and user fees.
Government cutbacks to deal with these deficits meant fewer staff and reduced
resources for social services.

At the same time, cooperate philanthropic contributions remained at about the same
level reflecting the economic uncertainties of the 1990s. Corporate donations declined,
after adjusting for inflation. Individuals, on the other hand, increased their giving during
the same period, possibly reflecting the bullish stock market of the mid to late 1990s.
Total charitable giving totalled at $150 billion annually.

4.6 CHANGING CLIMATE

The following points describe how the non-profit sector operates within a climate of
change:
• There is shifting responsibility for public service and assistance from government
programmes to voluntary organisations.
• There is an increasing competition among charitable groups for financial support,
in-kind support (i.e. goods and services), and volunteer support.
• There is a growing public concern about the credibility and accountability of many
tax-exempt organisations.
• It is becoming increasingly costly and difficult to raise funds.
• There is a lessening of community ties on the part of corporate leaders and
professional staff, which tend to move frequently for career advancement.
• There is a growth of cause marketing in the corporate sector.

63
Public relation is charged with both helping and rebuild credibility and maintaining and
trying to restore public confidence in the many charitable agencies and voluntary
groups that serve the needs of so many. When the Clinton administration put
healthcare reform at the top of the list of a national domestic policy issue in 1992,
health care reform became the hottest topic of national debate.

Debates covered why health care costs so much: who will pay: who will be covered:
what care will be available: and what the roles are of the government, health insurance
companies, health maintenance organisations (HMOs), private hospitals, doctors,
nurses, psychologists, and other caregivers such as midwives and nurse practitioners.
Public relations played a central role in shaping both the national agenda and health
care reform. Education administrators invited public relations specialists to join the
management team and to work more closely with executive officers of school districts,
colleges and universities, and educational associations.

Who should be involved in plan PR activities for a non-

profit organisation

4.7 ROLE OF PUBLIC RELATIONS IN NON-PROFIT ORGANISATIONS

Non-profit organisations in different fields approach public relations programming with
diverse tactics but promoting public service and building public trust are common to
all. Health care agencies, social welfare organisations, churches, educational
institutions, and fine and performing art groups all depend on public support. Public
relation in most non-profit organisations aims to:

• Gain an acceptance of an organisation’s mission

• Develop channels of communication with those whom an organisation serves
• Create and maintain a favourable climate for fundraising
• Support the development and maintenance of public policy that is favourable to the
organisations' mission.
• Inform and motivate key organisational constituents.

64
4.8 EDUCATION
Education touches the lives of virtually every citizen. It employs 3.1 million teachers
and administrators. Federal, state and local government spend almost 300billion
dollars a year for elementary and high school education and higher educations.
According to the US Census Bureau, state governments pay the greatest share –
about 55%. Surveys repeatedly show that education ranks among the most valued
symbols in American life. Many Americans expect too much from education,
presuming it to be the panacea for all the ills that beset the nation. Yet, even with all
these high expectations, Americans remain ambivalent toward education.

What is the significance of PT in Educations? Use South Africa

for example

4.9 ACCOUNTABILITY
Growing public dissatisfaction with the cost and the performance of schools has led to
widespread demands for more accountability. Demands for accountability have moved
far beyond the student achievement scores to include calls for teacher competency
tests and the institution of merit-based incentive pay. Accountability requires keeping
good records and making actions public. An ‘accountable school’ is one that:

• Discloses its incentives

• Makes good on its premises
• Assigns staff responsible for each area of public concern
• Monitoring its teaching and learning

Whereas businesses for years have been the bad guy in terms of the public’s
acceptance of the credibility of its actions, education and non-profit organisations have
been ranked with apple pie and motherhood. That is no longer true. We, too, are now
expected to be efficient, productive, purposeful and accountable in our work.

4.10 PUBLIC RELATIONS FOR PUBLIC SCHOOLS

The general major objectives of public relations for public schools include the following:

65
• Increasing awareness of education and countering misinformation and rumour.
• Building the public support necessary to obtain adequate funds
• Gaining public acceptance and cooperation in making educational changes
• Building amicable working relationships with new executives and reporters

Other major issues include a return to the ‘basics’, discipline, religion, and the theory
of creation, violence and weapons, substance abuse, sex education, pupil
achievement, parental concern and participation, teacher competence and
performance, negotiations with the teachers’ unions, and the students’ right of free
expression. Essential aspects of a school-community relations programme designed
to anticipate, avoid, and respond to these problems include the following:

• Commitment to public partnership on the part of school boards, administrators and

teachers.
• Competence in the school community relations staff
• Centralization of community relations policymaking
• Free-flowing communication from and to publics- up, down, and across
• Coordination of all efforts to ensure accomplishment of predetermined goals.

The relationships between educational institutions and the people are many, diverse,
and complex. Key internal and external publics for public schools’ public relations
include the following:

• Parents play a key role in the educational process and in building support for
adequate
• budget
• School staff, from principal and teacher to bus driver, custodian, and school nurse,
• must be brought into a public relations programme
• Students represent what may be in the school system’s most important public
• Business-community school partnerships take many forms
• Community groups include many groups: parents, taxpayers, and other citizens
• concerned about ‘what our schools ought to be teaching’.
• Local news media are necessary for informing the public of what schools are

66
• doing and what they must contend with as they do it
• Board of education members act as intermediaries between school publics and the
• professional administrators

4.11 HEALTH CARE

In South Africa, private and public health systems exist in parallel. The public system
serves most of the population but is chronically underfunded and understaffed. The
wealthiest 20% of the population use the private system and are far better served. In
2005, South Africa spent 8.7% of GDP on health care or US$437 per capita. Of that,
approximately 42% was government expenditure. About 79% of doctors work in the
private sector.

4.12 THE IMPORTANCE OF PR IN HOSPITALS

Public relation is a relatively new service in the hospital. Nevertheless, it's rapid growth
in recent years, and the fact that many hospitals now have public relations programs
and public officer indicates that it has earned an important and permanent place in the
hospital set-up.

The importance of and the need for public relations can be appreciated when one
considers some of the problem today's hospital have to contend with -the high cost of
medical care and the growing public criticism of hospital, problem of delivering quality
care at affordable cost, need for efficient and professional management of the hospital
and increasing involvement of government agencies and consumer protection forums
inpatient care and internal management of a hospital. A different section of public-
community, employees, medical staff, patient, visitors, etc. forms their opinion about
the hospital according to the source of information. These opinions can be influences
by a good public relation programmed.

A good public relation program is essential both inside and outside the hospital. Inside
the hospital to maintain dedicated staff who will provide warm and personal service to
the patient and outside to communicate the activity of the hospital to the people and
to interpret people's perception of the hospital and its policies to the hospital's
management.

67
Healthcare changing at a rapid pace with the role of public relations in hospital is
changing too. There has been an explosion in technology that has revolutionized the
practice of public relations in terms of its acceptance and sophistication. Many public
relations directors who remain insulated in their self-contained hospitals performing
the traditional public relations activity such as publication of house journals and
functioning as hospitals media agent have suddenly found themselves equipped and
unprepared to face the challenge of new concepts of marketing positioning and
advertising that have been introduced to public relations.

4.13 BASIC COMPONENTS OF PUBLIC RELATIONS IN HOSPITAL

• Counselling: This involves providing advice to management about policies,
relationships and interactions.
• Research: shaping attitudes and behaviours of the public to plan public strategies.
• Media Relations: Working with mass media in seeking publicity or responding to
their interests in the hospital.
• Publicity: Disseminating planned messages through selected media to sponsor the
hospital
• Employee/Member Relations: Responding to concerns, informing, and motivating
the hospital employees or members.
• Community Relations: designed activity with a community to maintain an
environment that benefits both the hospital and the community.
• Public Affairs: Developing effective involvement in public policy and helping a
hospital adapt to public expectations. The term is also used by government
agencies to describe their public relations activities and by many corporations as
an umbrella term to describe multiple public relations activities.
• Government Affairs: Relating directly with legislatures and regulatory agencies on
behalf of the hospital. Lobbying can be a part of the government affairs program.
• Issues Management: Identifying and addressing issues of public concern that affect
the hospital.
• Financial Relations: Creating and maintain investor confidence and building good
relationships with the financial community Also known as Investor Relations or
Shareholder Relations.

68
• Industry Relations: Relating to other hospitals in the industry of an organisation.
• Development/Fund-Raising: Demonstrating the need for development and
encouraging the public to support the hospital, primarily through financial
contributions.
• Special Events: inspiring an interest in a person, product or organisation utilizing a
focused "happening" also activities designed to interact with publics and listen to
them.
• Marketing Communications Combinations of activities designed to service or idea,
including advertising, collateral materials, publicity, promotion, directs mail, trade
show and special events.

4.14 RESPONSIBILITY OF PUBLIC RELATIONS DEPARTMENT

The major responsibility of the public relations department is interpreting, advertising,
marketing and communicating. To carry these responsibilities effectively, the public
relation director should be fully informed of everything that goes into the hospital. In
other words, he should be amended of the top management team and should attend
a meeting of the government, board for this it is obvious that a director is a person of
the highest personal integrity stature, judgment and personal discretion.

Public opinions about a hospital are formed first and foremost on the personal
experience of patients and their families, then on the opinions of the staff and their
families, persons who have first -hand knowledge and information about the hospital,
visitors, suppliers and only then on information derived from another source. This
primacy of the individual as a source of opinions has a profound influence on the
hospital's public relations. It underscores the importance of a sound internal relations
program as the bases for all external public relations.

Advertising, marketing, promotions, public relations, and sales managers often serve
as liaisons between the firm requiring the advertising and an advertising or promotion
agency that develops and places the ads. The employees are the first line of public
relations it is the responsibility of the management that all the hospital and by their
actions and word, they can make or break the hospital. It is important to understand;
therefore, that good public relations hospital begins with the employee and that it is

69
the product of positive employee relations. Progressive personnel policies which lay
emphasis and supervision and an enlightened result in high morale, productivity,
internal harmony and motivated, loyal and contented employees who take pride in their
organisation. From another angle, it is necessary to ensure that all employees know
their hospital a well-informed employee is the best public representative of the hospital.
Providing a good orientation program and keeping the employees continuously
informed of all aspect of the hospital is the combined responsibility of the human
resource and public relations program.

4.15 METHODS OF IMPROVING PUBLIC RELATIONS IN HOSPITALS

High quality of patient care will ensure simultaneously good public relations. A patient
will never accept public relations programmed instead of indifferent hospital care.
Thus, good patient care is a sine qua non. No number of smiles, cheers and
propaganda will compensate for bad administration and poor professional care in a
hospital.

A patient comes with certain definite expectations to the hospital. The reception is
normally the first contact point, but often he may have made earlier contact with the
hospital by getting into correspondence or by contacting over the telephone. All
courtesies must be extended to him on these occasions to project a good image of the
hospital. A lot of valuable information can be and should be furnished to patients even
before their admission.

Certain details concerning time and date and the person to whom he should contact
the exact place will help in achieving favourable opinion about the hospital. Equally
important is the fact that the person who is to receive the patient should be available
on the right time or else this will lead to just opposite effect, and the patient may go
back home disgruntled. Most of the hospitals have their telephone exchanges.

The experience of a telephone call may be the first impression of understandable

importance. Telephone operators should answer calls promptly and politely and
promptly respond to the queries of the caller. This would avoid waste of time and

70
frustration. Environmental sanitation, cleanliness and physical comforts provided to
patients create a good impression.

Well-kept lawns, clean surroundings are a reflection of good administration which

helps in building initial confidence. Reception, Enquiry and Admission Office should
be established as one single unit. The staff posted there should be specially selected
and trained in human relations. They should be courteous, cheerful and above all,
efficient in their work.

Persons working here should have full knowledge of the routine procedures of the
hospital, so that information to the patients or their relatives is furnished without any
delay. The Outpatient Department is the most sensitive place from the public relations
point of view. The largest number of people visits this department. According to the
estimation for each bed in a hospital, there are 500 visitors to a hospital in a year. This
would explain the gravity of the situation.

More frictions and misunderstandings arise in this department than anywhere else.
Separate parking space for the staff and the public, adequate waiting space and
seating arrangements and facilities of wheelchairs and trolleys should be made
available. Public toilets, drinking water, cafeteria, and public telephones are essential
in this department. Waiting time of the patients should be rendered to a minimum.

The maximum number of doctors should be available during peak hours. The help of
paramedical and non-medical staff is a must. Voluntary agencies may be required to
help the patients in finding out various areas of the hospital. This department should
be organized in such a manner that there is a free flow of traffic, and cross-traffic is
avoided or minimized.

In addition to the help from staff and volunteers, suitable guidance aids like the supply
of information brochure in local community centres and other sign postings will help in
creating a good impression. A responsible member of the staff should be available to
explain the reasons for the delay or listen to public grievances. Measures should be
taken to avoid queue jumping and the influence of 'pull'.

71
To avoid public resentment, separate counters should be opened for the hospital,
employees. The Accident and Emergency Department or 'Casualty' is another very
sensitive area. People coming here are charged with emotions, anxiety and sense of'
urgency.

This department should be staffed and equipped for round-the-clock services. It should
be supported by an efficient ambulance service. Prompt medical relief and sympathetic
behaviour of the staff is very important in building good public relations. In one of the
studies, it was" observed that consumers were dissatisfied due to misunderstandings,
rough behaviour of lower cadre staff and poor information and guidance system in this
department.

Most patients entering the hospital have many questions and concerns. Hospitals must
strive to answer their questions. A hospital information booklet provides information
that is helpful to patients and their relatives. Often, patients are admitted on an elective
basis, and they have time to plan their admissions. They can take advantage of these
booklets in planning and preparing for their hospital stay.

The booklet can be of various types, and the information to be incorporated therein will
depend upon many factors. The hospital administrator should decide, after careful
study, as to which information should be provided through these booklets.

72
REVISION QUESTIONS

MCQ EXERCISES
1.1 A Fairtrade scheme is an example of a .
A) Business enterprise
B) Public sector
C) Campaigning organisation
D) Social enterprise

1.2 A is a business with primarily social objectives whose surpluses are

principally reinvested for that purpose in the business or in the community, rather than
being driven by the need to maximise profit for shareholders and owners.

A) social enterprise
B) charity
C) service-based organisation
D) public sector

1.3 Comparing non-profit organisations to for-profit organisations, which of the following

statements is not correct?
A) With not-for-profit 'products', there is typically a weaker unique selling proposition
B) In the not-for-profit environment, it may be necessary to develop a campaign to drive
behaviour in all targets rather than a specific audience
C) The mission statement of non-profit organisations usually revolves around being the
best in a particular sector
D) Price has different connotations in not-for-profit situations

1.4 Donations that charitable organisations receive from wealthy philanthropists are
referred to as .
A) corporate donations
B) support
C) major gifts
D) roles

1.5 In case of retrenchment, a worker is entitled to months’ notice or notice pay in

lieu of notice.
A) One
B) Two
C) Three
D) Four

73
 TOPIC 5: PUBLIC RELATIONS AND ORGANISATIONAL
EFFECTIVENESS

On completion of this module, the student will be

able to:

1. Understand the management theories and the role of

Public
2. Relations in managing organisational success
3. Describe the goal attainment approach as contributing to
organisational effectiveness
4. Analyse the Limitations of Goal Attainment Approach
5. Describe the Systems Theory Approach concerning
organisational effectiveness
6. Analyse the limitations of the Systems approach
7. Revise the Stakeholder Management Approach

5.1 INTRODUCTION
As public relations have shifted from an emphasis on the technical role of the
communicator to the strategic communication role of the manger, the public relations
professional has had to become educated in how organisations are managed. This
topic introduces you to several different management theories that help define
organisational success and the public relations role in managing that success.

Management theory has defined organisational effectiveness in several ways. Early

theories of management stressed meeting goals as measures of effectiveness. This
approach proved to be rather simplistic and did not recognize the interconnectedness
72
of organisations with their environments. A systems model approach was developed
as a reaction to the limitations of the goal-attainment perspective. However, the
systems approach tends to be too abstract to measure effectiveness.

A third approach, which recognizes the dependency of the organisation on its

environment, places specific focus on key constituents and is more measurable
because of its focus on relationships with these stakeholders. This approach, which is
often called stakeholder management, recognizes the value of strategic constituents
to the success of any organisation and recognizes that the interests of these
stakeholders often conflict. Each impact on how public relations is practised within the
organisation.

Goal Attainment Approach

Traditionally, an organisation’s effectiveness has been defined in terms of attaining
goals (Griffin, 2008). In the earliest theories of organisational behaviour, organisations
were viewed as rational institutions whose primary purpose is to accomplish
objectives. The more efficiently and effectively an organisation can achieve its goals,
the more successful it is according to this approach. Quite often, the bottom-line goals
of organisations are focused on profitability.

Financial Goals
One way to look at the success of organisations is to assess their size relative to
competitors. This type of measurement is usually done by looking first at annual
revenues, the total of all products or services sold to customers. But this may not be
the most meaningful measure since some very large companies are not always
successful. Financial analysts usually look at other ratios to determine financial health.
They look at profitability in several ways to assess the return that the company is
generating for its owners—the shareholders— for each dollar of investment in the
business, a concept is known as ROI or return on investment.

73
In doing so, they consider the gross margins the company achieves, which are the
revenues generated from the sale of its products minus the cost of those goods. They
also consider the organisation’s net earnings, which are the profits remaining after all
interest, taxes, and other costs such as depreciation are factored in. These net
earnings are then divided by all the shares of stock outstanding to determine earnings
per share or EPS. This EPS number provides a good ratio for making comparisons to
other companies regardless of their size.

Financial analysts eagerly await the earnings numbers when publicly-traded

companies release these results each quarter, as they are required to do by the U.S.
Securities and Exchange Commission (SEC). Analysts estimate what they expect a
company to earn, sometimes a year or more in advance of the actual results. When
companies exceed these estimates, their stock prices generally increase— sometimes
dramatically—after the release of earnings. When they disappoint the analysts and
underachieve on projected earnings, their share prices can plummet.

Another measure of size is market capitalization. That measure is determined by

multiplying the current price of a single share of a company’s stock by all the shares
outstanding. In some cases, this “market cap” number may be significantly higher than
the annual revenues a company achieves. In such cases, the financial markets believe
that the company has growth potential far over its current sales. Companies with
market caps far higher than revenues are more highly valued than companies whose
market caps are like or much lower than annual revenues.

Companies work to achieve higher valuation by delivering consistent performance,

meeting or exceeding earnings estimates, and providing a credible growth story that
is supported by the facts. There are countless other financial measures. However, the
most important thing to remember is that communicators have a special responsibility
to educate themselves on the measures that are deemed most important by their
colleagues in other functions. That includes more than the numbers. They must also
understand the business challenges that are most pressing to the company.

74
For non-profit public relations, the most important measures may relate to the donor
community or to the volunteer network on which the organisation relies. For
governmental public relations, it may require an increase in knowledge of policies,
legislative initiatives, sources of tax revenues, or judicial rulings that will have an
impact on the department’s operations.

Limitations of Goal Attainment Approach

One critical limitation to the goal attainment approach to evaluate organisational
effectiveness is that it does not take into consideration the very human nature of
organisations, nor the outside influences that affect the efforts to reach these goals.
People are not cogs in a wheel, and a manager could become easily frustrated with
the unrealistic expectation that organisations can run as smoothly as a piece of
machinery. This makes engagement of employees a problem for the public relations
professional, and his or her focus is often more on goal attainment than maintaining
positive relations with publics. Robbins criticized the goal-attainment approach
because it does not consider the political or power-control nature of organisations and
how they choose goals (Robbins,1990).

Most organisations are composed of coalitions, which lobby for goals that benefit them
or their function in the organisation. He argued that the interests of decision-makers
and their organisation are not always congruous and that the typical manager tries to
increase the size and scope of his or her domain regardless of the effect on the
organisation as a whole. He contended that organisational interests are subordinated
to the special self-interests of different groups within the organisation. The most
powerful of these coalitions are successful in defining the organisation’s goals, and
meeting these goals adds power and influence to these coalitions. Also, there is
evidence that the goals of each coalition may not directly reflect the needs and
purposes of the organisation.

75
Another criticism levelled at the goal-attainment approach is that it viewed
organisations as rational and mechanical systems that could control whether these
goals were reached. As scholars noted, these management theories presumed that
the organisations were closed systems that had autonomy from and control of their
environments (Grunig & Grunig, 1992:285–326). However, organisations are
interconnected with their external environments.

5.2 SYSTEMS THEORY APPROACH

The view of organisations as open social systems that must interact with their
environments to survive is known as the systems theory approach. Organisations
depend on their environments for several essential resources: customers who
purchase the product or service, suppliers who provide materials, employees who
provide labour or management, shareholders who invest, and governments that
regulate. According to Cutlip, Center, and Broom (2006), public relations’ essential role
is to help organisations adjust and adapt to changes in an organisation’s environment
(Cutlip, Center, and Broom, 2006). This approach identifies organisational behaviour
by mapping the repeated cycles of input, throughput, output, and feedback between
an organisation and its external environment. Systems receive input from the
environment either as information or in the form of resources.

The systems then process the input internally, which is called throughput, and release
outputs into the environment to restore equilibrium to the environment. The system
then seeks feedback to determine if the output was effective in restoring equilibrium.
As can be seen, the systems approach focuses on the means used to maintain
organisational survival and emphasize long-term goals rather than the short-term
goals of the goal-attainment approach.

Theoretically, systems can be considered either open or closed. Open organisations

exchange information, energy, or resources with their environments, whereas closed
systems do not. Because no social systems can be completely closed or open, they
are usually identified as relatively closed or relatively open. The distinction between

76
closed and open systems is determined by the level of sensitivity to the external
environment. Closed systems are insensitive to environmental deviations, whereas
open systems are responsive to changes in the environment.

The systems approach is an external standard that measures effectiveness based on

long- term growth or sustainability. Effective systems are characterized by a steady-
state that systems theorists call homeostasis to “avoid the static connotations of
equilibrium and to bring out the dynamic, processual, potential-maintaining properties
of basically unstable… systems.” (Buckley,1967: 14). If an organisation can maintain
homeostasis, which includes not just survival but also growth, then it is effective.

This perspective is broader and more comprehensive than the goal-attainment

approach because it is not limited to measuring effectiveness as meeting goals
determined by powerful internal coalitions that may or may not be propitious for the
whole organisation. Pfeffer and Salancik defined effectiveness as “how well an
organisation is meeting the demands of the various groups and organisations that are
concerned with its activities.” (Pfeffer and Salancik,1978: 11.)

Most effective organisations, according to systems theory, adapt to their environments.

Pfeffer and Salancik described the environment as the events occurring in the world
that have any effect on the activities and outcomes of an organisation. Environments
range from “static” on one extreme to “dynamic” on the other. Static environments are
relatively stable or predictable and do not have great variation, whereas dynamic
environments are in a constant state of flux. Because environments cannot be
completely static or constantly changing, organisations have varying levels of dynamic
or static environments. Organisations that exist in dynamic environments must be
open systems to maintain homeostasis. Because dynamic environments are
constantly changing, they create a lot of uncertainty about what an organisation must
do to survive and grow. The key to dealing with uncertainty is information. An open
organisation monitors its environment and collects information about environmental
deviations that are labelled as input. Input can also be thought of as a form of feedback.

77
The most important information is negative input, according to systems theorists,
because this information alerts the organisation to problems that need to be corrected.
Negative input tells the organisation that it is doing something wrong and that it must
make adjustments to correct the problem; positive input tells the organisation that it is
doing something right and that it should continue or increase that activity.

Organisations then organize and process this information to formulate solutions or

responses to these changes. As Cutlip, Center, and Broom noted, open systems use
the information to respond to environmental changes and adjust accordingly. The
adjustments affect the structure or process of the organisation or both. The structure
is what the organisation is, whereas the process is what the organisation does.
Adjustments are “intended to reduce, maintain, or increase the deviations.” (Cutlip et
al., 2006:181).

For example, an organisation can alter its structure by downsizing to remain

competitive. Other organisations may change their processes to adhere to new
environmental laws. Processing positive and negative input to adjust to environmental
change is called throughput. In the throughput of information, the organisation
analyses it and tailors it strategically to fit with the organisation’s goals, values, and
within the relationship context, it holds with publics. After an organisation adapts to
environmental changes, its actions and messages represent its output.

The automobile industry is constantly enticing car consumers to try the latest models,
hoping that it has responded to changing expectations. Recently, many auto
manufacturers have attempted to colour their products as “green” or environmentally
friendly. However, messages are not enough. If the cars are not friendlier to the
environment, then these messages eventually will fall on sceptical ears and impugn
the credibility of the organisation. An organisation measures the effectiveness of its
output by seeking feedback.

78
If its actions and messages were not effective, then the process is repeated until the
appropriate solution is found. If the organisation is not able to adapt to the
environmental variation, then it will eventually cease to exist. The public relations
professional engaged in an organisation that takes a systems approach is continually
focusing on feedback as a way of measuring organisational success. The public
relations professional can use the academic concept of systems theory to implement
protocols for regular feedback to the organisation, thereby aligning it with the desires
of publics in its environment. This theory can also be useful in understanding the role
of research and feedback in creating a thoroughly analysed and consistent strategy
(the throughput stage of information in systems theory).

The analysis of information and creation of strategy known as throughput helps to

conceptualize and justify not only the research budget of the public relations
department but also the need for making decisions that strategically align the public
communications of an organisation with the information needed by the public. The
practical implementation of this approach keeps public relations from being used as a
simple publicity function and places the function squarely in the strategic planning
process. Systems theory, however, is not without some shortcomings.

The first shortcoming relates to measurement, and the second is the issue of whether
how an organisation survives matter. Robbins noted that one criticism of this approach
is that its focus is on “the means necessary to achieve effectiveness rather than on
organisational effectiveness itself.” (Robbins,1990:62). Measuring the means, or
process, of an organisation can be very difficult when compared to measuring specific
end goals of the goal-attainment approach.

5.3 STAKEHOLDER MANAGEMENT APPROACH

The stakeholder management approach adds focus to the systems approach by
building “strategic constituencies.” Robbins declared that an organisation should be
concerned only with the “strategic constituencies” (Robbins,1990) in the environment
who can threaten the organisation’s survival. This approach recognizes that an

79
organisation must deal with external and internal publics who can constrain or enhance
its behaviour.

Although organisations would prefer to have complete autonomy, they are often
confronted with constraints and controls. Constraints are often considered undesirable
because they “cost money—to comply with regulations or to make changes to
accommodate pressure groups, (Grunig, Grunig & Ehling,1992: 68). and they “restrict
creativity and adaptation” (Pfeffer and Salancik,1978: 15). However, an organisation
inevitably meets with some constraints, especially in heavily regulated industries.

Examples include labour strikes, government regulations, boycotts, and protests by

special interest groups. To be effective, an organisation “must be aware of
environmental publics such as customers, suppliers, governmental agencies, and
communities and interact successfully with them.” (Grunig, et al. 1992:72). They must
also be aware of the internal publics, such as employees and labour unions, who can
affect or be affected by the organisation. The relationship between an organisation
and its stakeholders is called interdependence in systems theory literature.

Although these interdependent relationships limit autonomy, good relationships with

stakeholders limit it less than bad relationships. When organisations collaborate with
key stakeholders, the result is often an increase in autonomy. Good relationships are
developed when an organisation voluntarily interacts with its stakeholders to find
mutually beneficial solutions. Poor relationships can result in forced compliance with
restrictions and regulations. When organisations voluntarily establish relationships
with stakeholders, they have more autonomy because they are not forced into these
relationships.

Summary
It is important to understand how organisations define their success because they
place more value on the functions that contribute to that success and tend to reward
those efforts the most. This section identified three ways that organisations evaluate
their effectiveness. Most organisations set goals and measure themselves against
80
those goals. These short-term benchmarks are easier to measure but may blind the
organisation from the forest for the trees.

An organisation must also consider its long-term sustainability and growth, and a
systems theory approach helps an organisation keep its eye on the horizon. Key
constituents are essential to reaching immediate goals and sustaining long-term
growth. A stakeholder management approach helps an organisation understand how
critical these constituents are to meeting the purpose of the organisation. Using the six
steps of the stakeholder management process, public relations professionals can
better understand challenges facing the organisation and can help to integrate the
interests of those stakeholders into management.

Doing so strategically aligns the policy of the organisation, allowing it to build more
enduring relationships with publics and integrate public relations as a primary
contributor to the bottom line and overall organisational effectiveness.

81
REVISION QUESTIONS

MCQ EXERCISE
1.1 A Fairtrade scheme is an example of a .
A) Business enterprise
B) Public sector
C) Campaigning organisation
D) Social enterprise

1.2 A is a business with primarily social objectives whose surpluses are

principally reinvested for that purpose in the business or in the community, rather than
being driven by the need to maximise profit for shareholders and owners.

A) social enterprise
B) charity
C) service-based organisation
D) public sector

1.2 You are comparing non-profit organisations to for-profit organisations, which of the
following statements is not correct?

A) With not-for-profit 'products', there is typically a weaker unique selling proposition

B) In the not-for-profit environment, it may be necessary to develop a campaign to drive
behaviour in all targets rather than a specific audience
C) The mission statement of non-profit organisations usually revolves around being the
best in a particular sector
D) Price has different connotations in not-for-profit situations

1.4 Donations that charitable organisations receive from wealthy philanthropists are
referred to as .
A) corporate donations
B) support
C) major gifts
D) trustees

1.5 Government health departments encourage people to quit smoking by running a

smoking control campaign supported through mass media. This is an example
of .
A) polling
B) government regulation
C) social marketing campaign
D) e-government

82
 TOPIC 6: BEST PRACTICES FOR EXCELLENCE IN PUBLIC
RELATIONS

On completion of this module, the student will be

able to:

1. Define and measure effectiveness and excellence in

2. Public Relations Management
3. Define organisational effectiveness in two primary
ways:
4. The strategic constituencies perspective
5. The goal attainment perspective
6. Understand and apply the ten generic principles of
excellent Public Relations

6.1 INTRODUCTION
How do we define and measure effectiveness and excellence in public relations
management? This is a crucial question to the field because it allows us to know how
to help our organisations achieve their goals and to be the most effective that they can
be. Studying these factors of effectiveness and excellence tells us how public relations,
ideally, should be conducted to achieve the best results.

6.2 EFFECTIVENESS AND EXCELLENCE

For more than a decade, Grunig and his team of researchers studied this very question
as part of a nearly half-million-dollar grant from the International Association of
Business Communicators (IABC). Grunig’s project is called the Excellence Study, and
the results are known as the excellence theory.

We will review those findings here to help you learn how to make your public relations
efforts the most effective they can be and to help your organisation or clients achieve
excellence. What is organisational effectiveness? We can say that organisational
effectiveness is helping any type of organisation be the most efficient at what it seeks

83
to do, and the most effective it can be in accomplishing its goals and mission.
Organisational effectiveness can be defined in two primary ways:

• The strategic constituencies perspective

• The goal attainment perspective

The strategic constituencies perspective holds that organisational effectiveness

means that constituencies who have influence or power over the organisation are at
least partially satisfied with that organisation. Those constituencies, such as
consumers or regulatory agencies, have the power to decide whether the organisation
thrives or fails. When those constituencies are satisfied, an organisation thrives. In this
sense, organisational effectiveness means maintaining strategic relationships with
constituencies that help an organisation achieve its goals, such as profit, education, or
continued existence.

In the goal attainment perspective, an organisation sets clear goals that are
measurable, such as rankings, market-share figures, or sales numbers. The
organisation knows that it has accomplished its goals when the actual figures match
its stated goals. In this way, the organisation is seen as effective when its stated goals
are fulfilled. An ineffective organisation is termed one with “competing values” in which
“the organisation is unclear about its own emphases” or criteria for success
(Robbins,1990:77). This type of organisation might change goals over time, have
inconsistent or unclear goals, and therefore it flounders and fails to achieve
effectiveness.

Organisational effectiveness involves the entire organisation, not just the

communication function. However, the management of communication is an important
part of helping the organisation achieve greater organisational effectiveness. Plus, the
concepts of effective or excellent public relations can also be used to optimize the
organisation, structure, and management of the public relations function itself.

84
Grunig’s Excellence Study identified numerous variables that contribute to
organisational effectiveness. After many years of study, Grunig and the Excellence
Studies of researchers distilled the most important variables for public relations in
making contributions to overall organisational effectiveness. These variables were
distilled through both quantitative and qualitative research. The variables that emerged
from the data did not vary across cultures or national boundaries, or by the size of
organisation, or industry, therefore they were termed generic principles of excellence.

6.3 GENERIC PRINCIPLES OF EXCELLENT PUBLIC RELATIONS:

• Involvement of public relations in strategic management
• Empowerment of public relations in the dominant coalition or a direct reporting
relationship to senior management
• Integrated public relations function
• Public relations as a management function, separate from other functions
• Public relations unit headed by a manager rather than a technician
• Two-way symmetrical (or mixed-motive) model of public relations
• Department with the knowledge needed to practice the managerial role in
symmetrical public relations
• Symmetrical system of internal communication
• Diversity embodied in all roles
• Ethics and integrity (Grunig & Grunig,1996:58)

These principles can be used to design the public relations function in an organisation
to structure its inner action with management and the rest of the organisation and to
staff the public relations department in a way that predisposes it toward effectiveness.
The more of these factors that are present in a public relations function, the more
excellent that function should be.

Another important consideration is that the chief executive officer (CEO) must be
aware of the contributions that public relations and communication, in general, can
make toward the effectiveness of the overall organisation. He or she is probably aware
85
of how reputation can impact the bottom line of the organisation, and that reputation
can be enhanced and protected by the public relations function.

6.4 EXPLAINING THE GENERIC PRINCIPLES OF EXCELLENCE

Here is a brief review of why each of the ten generic principles of public relations is
important to organisational effectiveness:

• The involvement of public relations in the strategic management function allows for
more inclusive decision making, better organisational policy from the perspectives
of public, and more enduring decisions. Higher levels of satisfaction with the
relationship are reported by publics who were considered by an organisation in its
strategic management process.
• The public relations function must be empowered to report directly to the CEO to
advise on matters involving the public, values, and ethical decision making.
Although the researchers posited that a direct reporting relationship to the
dominant coalition would also enhance excellence in public relations, later research
found that public relations are the most excellent when reporting directly to the
CEO.
• An integrated public relations function has access to and authority in all levels and
functions of the organisation. It is not isolated or pigeonholed, and it is not
encroached upon or subsumed by marketing or other functions but has its degree
of autonomy.
• Public relations need to be a separate management function in the organisation to
prevent encroachment by marketing or legal departments into the role and
responsibilities of communication management. When these areas are usurped by
other organisational functions, it is common for smaller or less strategic publics to
be ignored in organisational decision making.
• The public relations unit should always be headed by a professional public relations
manager, rather than someone who is simply adept in the technical skill of writing.
Managers have the research knowledge necessary to collect information, to
facilitate conflict resolution, to engage in issues management, to create budgets,

86
 to resolve ethical dilemmas, and to manage the staff of the public relations
department. Technicians are normally specialists in writing or other technical
aspects of production but are not formally trained in management. Without a
manager in charge of the public relations function, it is likely to be pigeonholed as
media relations rather than as a true management function.
• An excellent public relations department needs to use the two-way symmetrical
model of public relations because a dialogue-based approach has been shown
more effective than any other in resolving conflicts, preventing problems, and to
building and maintaining relationships with publics.
• An excellent public relations department knows necessary to manage public
relations symmetrically in that it can conduct sophisticated research to understand
the public, and it can also engage in negotiation and collaborative problem-solving.
• Dialogue-based systems of internal communication are important for building
teamwork, increasing employee morale and job satisfaction levels, and decreasing
employee turnover. Issue research also allows issues managers to identify
problems early so that they can be resolved before they escalate.
• Public relations departments need to have diverse professionals in all roles of the
function so that decisions and communications will be inclusive of varying
viewpoints. Inclusivity breeds excellence because it lessens the feelings of
alienation created by excluding or not soliciting the ideas and opinions of some
publics.
• The excellence researchers added ethics and integrity as important considerations
four years after the publication of the Excellence Study, remarking that ethics is
important enough to be a standalone principle of excellence. Bowen’s research
found that ethics were included in the decision making of the most successful
organisations issues management, leading to higher levels of organisational
effectiveness when ethics is planned, trained, and instilled throughout the
organisation (Bowen,2004b: 311–324). She elaborated on ethics as the tenth
generic principle of public relations and indicated that the rational analysis of ethical
dilemmas could be the most important facilitator of organisational effectiveness.

87
How organisations measure excellence depends on the industry, the size of the
organisation, its goals, and whether those goals are measured through the satisfaction
of strategic constituencies or the goal attainment approach. However, the excellence
study has shown that these general principles of excellence apply to any type of
organisation, size of pursuit, any industry, and across cultures.

Summary
This topic briefly reviewed the core knowledge of regarding what it takes to make public
relations the most effective or “excellent” that it can be, based on the findings of the
IABC Excellence Study. Being excellent is contributing to organisational effectiveness,
whether that effectiveness is defined through goal attainment perspectives, strategic
constituency building, or continued growth and survival.

The ten principles of excellence reviewed in this topic are said to be “generic” because
they apply across cultures, industries, types of organisations, and sizes of pursuit. The
more of these factors that an organisation has, the more effective its public relations
function should be.

88
REVISION QUESTIONS

MCQ EXERCISES

1.1 An has access to and authority in all levels and functions of the organisations
A) Integrated public relations function
B) Excellence public relations department
C) Annual reports
D) Advertising

1.2 needs to have diverse professional in all roles of the functions.

A) Public relations department
B) Relationship marketing
C) Public relation
D) Media relation

1.3 Organisation can be defined in two ways, which one of the following is correct?
A) The strategic constituencies perspective and the goal attainment perspective
B) Ethics and integrity
C) Publicity and event management
D) Sponsorship and publicity

1.4 Public relations practitioners develop, execute and evaluate organisational programs
that promote the exchange of influence and understanding .
A) Among an organisation's constituent parts and publics.
B) So that hostile public can be silenced
C) In an attempt to make sure organisational secret is not leaked
D) When initial attempts to cover up negative news fail

1.5 The should always be headed by a professional public relations manager

rather than someone who is simply adept in the technical skill of writing
A) Public relation unit
B) Process of communication
C) Different interpretation of words
D) Roles of Communication

89
Table 6: Nike Case Study

NIKE CASE STUDY

CHOOSING HUMANITY OVER PROFIT
Nike had been accused of using sweatshops to produce its sneakers and activewear since
the 1970s but it was only in 1991, when activist Jeff Ballinger published a report detailing
the low wages and poor working conditions in Nike’s Indonesian factories, that the
sportswear brand came under fire.

Soon after, the brand became the subject of an aggressive and sustained campaign by
United Students Against Sweatshops. Nike was initially slow to respond—but under
increasing pressure it eventually made some changes by improving its monitoring efforts,
raising the minimum age of workers, and increasing factory audits.

The brand has since earned plaudits far and wide for its efforts. A few years ago, Business
of Fashion reported that Nike has successfully transformed its tarnished image to become
a “recognized sustainability leader,” with Morgan Stanley ranking Nike “the most sustainable
apparel and footwear company in North America for environmental and social performance,
including its labour record.”

In 2005 Nike started disclosing their CSR activities after a couple of years of silence due to
legal concerns. After several audits, Nike reported that a large percentage of their overseas
factories have their employees working in terrible environments for low pay and in unsanitary
health conditions. This is the first time that a major corporation has revealed such problems
to the public so honestly.

Nike is now taking a new strategy and approach in an attempt to correct these problems.
They are attempting to take responsibility to effect positive systematic changes in working
conditions with several branches. Nike plans to reshape the way customers, supplies,
investors, and regulators see the company.

They are changing it from a closed system and making the company more open so that
suppliers and customers can relate to Nike. One of Nike’s problems is changing the way its
leadership and management style that is “leaders beyond borders” meaning leaders reach
out to more than just their professional role and engage people on shared goals. Nike needs
to reach out to wider issues of trade flows, governance, and media otherwise all their
changes may not make a difference as they optimistically hope.

90
QUESTIONS
1. Analyse and discuss the challenges that Nike and other retailers would face
regarding Corporate Social responsibility.

2. Broadly discuss the importance of corporate social responsibility to an

organisation.

3. The media has a major role to play in corporate social responsibility. Do you
agree? Substantiate your answer.

Case Adapted from http://readerspice.blogspot.com/2015/11/nikes-csr-challenge-

case-study.html

91
 RICHFIELD

Sample Paper

2ND SEMESTER NATIONAL FINAL EXAMINATIONS

DURATION: 3 HOURS MARKS: 100 DATE: xxxxxx

EXAMINER: xxxxxxx MODERATOR: xxxxxxxxx

This paper consists of 5 questions of 9 pages including this page.
PLEASE NOTE THE FOLLOWING:
1. Ensure that you are writing the correct examination paper and that there are no
missing pages.
2. You are obliged to enter your student details on the answer sheet. The answer
sheets provided are the property of Richfield Graduate Institute of Technology (Pty)
Ltd and all extra sheets must be handed to the invigilator before you leave the
examination room.
3. If you are found copying, or if there are any documents/study material in your
possession, or writing on parts of your body, tissue, pencil case, desk etc. your
answer sheet will be taken away from you and endorsed accordingly. Appropriate
disciplinary measures will be taken against you for violating the code of conduct of
Richfield Graduate Institute of Technology (Pty) Ltd Examinations Board.
Therefore, if any of these materials are in your possession, you are requested to
hand these over to the invigilator before the official commencement of this paper.
4. The question paper consists of 3 sections.
5. Sections A and B are compulsory. Section C comprises of 3 questions, you are
required to answer any 2 questions.

92
 SUGGESTED TIMES REQUIRED TO ANSWER EACH SECTION IN THIS QUESTION
PAPER

NUMBERS QUESTIONS MARKS TIME IN MINUTES

SECTION A: MULTIPLE CHOICE QUESTIONS COMPULSORY

1 Question One 30 35

SECTION B: SHORT QUESTIONS COMPULSORY

2 Question Two 30 35

SECTION C: ANSWER ANY TWO QUESTIONS

3 Question Three 20 25

4 Question Four 20 25

5 Question Five 20 25

TOTAL 100 120

SECTION A: ANSWER ALL QUESTIONS

QUESTION ONE

Four alternatives are provided for each of the following questions. Choose the correct
alternative for each of the questions/statements. Write down the question number in your
answer book and the alphabet corresponding to your choice next to the question number.

1.1 A hospital public relations officer must _.

A. prepare medical personnel for press interviews and provide adequate
background information to reporters
B. prepare medical personnel for induction, training and development
C. prepare medical personnel for emergencies and surgical operations
D. prepare medical personnel for financial management

1.2 are absolutely necessary for informing the public of what schoolsare doing
and what they contend with as they do it in communities.
A. Government departments
B. Healthcare agencies
C. Parents and/or guardians
D. Local news media

1.3 What is a major differentiating incentive between non-profit organisations (NPOs)

and businesses?
93
 A. The management style
B. The profit motive
C. Media coverage
D. Customer focus

1.4 Select the option that best characterises non-profit organisations.

A. Profit maximisation
B. Dominating the market
C. Gathering resources and distributing them and rendering services to the
neediest and vulnerable groups
D. Providing services to those who have the ability to pa

1.5 A promotional element that KFC pays for its message to be published
newspapers additions and broadcast on radio stations and television channels.
A. Public relations
B. Advertising
C. Publicity
D. E-commerce

1.6 Which option relates to free exposure from the media for the coverage of “KFC
Mini-Cricket” community initiative?
A. Advertising
B. Packaging
C. Publicity
D. Personal selling

1.7 What kind of (free) media coverage did the KFC outlet in Braamfontein yield?
A. Negative publicity
B. Favourable publicity
C. Narrow coverage
D. Bulletins

1.8 Select a correct internal communication media tool for KFC.

A. Television
B. Newspapers
C. Billboards
D. Annual reports

1.9 Identify a mass communication media tool used by KFC.

A. Newsletters
B. Intranets
C. Television
D. Bulletin/notice boards
94
1.10 What is a planned and systematic management function to help improve the
programs and services of an educational organisation?
A. Charity public relations
B. Military public relations
C. Health care public relations
D. Educational public relations

SECTION C: ANSWER ANY TWO QUESTIONS

QUESTION THREE

3.1 Identify and discuss the skills that Public Relations experts require to have a
successful and rewarding career.
3.2 To build a relationship with the target audience and maintain it on a high level, PR
specialists use a variety of tools and techniques. Explain five (5) public relations tools.

QUESTION FOUR

4.1 Discuss five (5) distinguishing features of non-profit organisations.

4.2 Public relations are a relatively new service in hospitals. Nevertheless, its important
contribution to hospitals cannot be denied. Elucidate the importance of public relations
in hospitals.

QUESTION FIVE

In the earliest theories of organisational behaviour, organisations were viewed as

rational institutions whose primary purpose is to accomplish objectives. The more
efficiently and effectively an organisation can achieve its goals, the more successful it
is according to this approach. Quite often, the bottom-line goals of organisations are
focused on profitability.

Analyse these statements and critically discuss the goal attainment approach as well
as its limitations.

95
96