PR and Corporate Image

Basic Principal of Corporate PR

Corporate public relations seeks to project the image

and identity of the organisation.
Based the facts and figures as well as on the subjective
impressions and feelings, image itself is a duct of public
mind.
In order to project the identity of the organisation, the
PR needs to know both - facts that people know as well
as the impressions that they carry about the
organisation.
Therefore Corporate PR manages the reputation of the
organisation.
 Few essential guidelines of corporate PR

1) Corporate public relations is a shared responsibility and

therefore must be truthful and believable.

2) As a 'caring entity' and a 'good citizen', PR believes that

corporate public relations programme is an investment in the
Image building of the organisation.

3) PR is never open and responsive to public concern.

4) PR recognise that one's own view is subjective and never

influences the organisation to take corporate convictions for
reality.
5) In terms of corporate communication PR thinks of sharing with the
community the values which it upholds and for which it wants to be
known.

6) Corporate Communication is a faith and a commitment which

cannot be compromised under any circumstances.

7) Corporate PR always believes in the institution of a long range

image and identity and therefore never subscribes to any crash
communication plan.

8) Finally PR maintains excellent communication relationships both at

the corporate and at the unit levels with the internal as well as the
external publics.
 CORPORA TE IMAGE:

According to Philip Kotler, "Image is the set of

beliefs, ideas and impression, a person holds
regarding an object.

This is also applicable to business." Corporate Image

is the set of beliefs ideas and impression, a person
i.e. 'customer, shareholder and employee holds
regarding and object i.e. the company.
There are different Images which people may have
formed about a particular Company.

These may be a “good company“ or “Consumer

friendly company" etc. The attitude and actions of
the people will be as per the Company's Image in
their minds.
Such Images may be favourable or unfavourable.
Favourable Image gives positive response whereas
unfavourable Image gives negative response.
 Factor affecting Corporate Image or Elements of Corporate
Image Building.

1) Quality and Pricing of the products.

2) Attractiveness and safety of the product.
3) Dealer relationship and the attitude of dealers
towards the company.
4) Discounts, credit facilities and after sales services
offered.
5) Sales policies and sales promotion techniques used.
6) Advertising and Ad Campaigns of the company and
the logo used.
7) Press relations of the company including Press
Publicity.
8) Discharging of Social responsibilities.
9) Consumer service, Consumer protection and
Welfare.
10) Product line, Product Modification and
Introduction of new products through R & D
activities.
11) Contribution of the company in regards to
development of sports, rural development and
ecology balance.
12) Social audit programme of the company.
13) Attitude towards female and handicapped
employees.
14) Financial position of the company management
practice and Socio-economic objective of the
company.
Positive Image building is needed for the following purpose

1) To promote sales and thereby earn more profit.

2) To introduce business growth through expansion and

diversification.

3) To develop brand loyalty among consumers.

4) To effectively face adverse business environment.

5) To Secure Co-operation from different social groups for

business growth and prosperity.
6) To Secure Support from Investors for raising
capital for business growth.

7) To Secure Public support and sympathy when the

company is facing serious difficulties regarding
production and Marketing activities or when
company is facing serious financial crisis.
Benefits of Positive/Good/Favourable Image

1) Recognition as Consumer-friendly enterprise.

2) Social Support and Co-operation.

3) Social recognition.

4) Prestigious Position.

5) Increase in Sales and Profit.

6) Image building has publicity and promotional value

 . Important Measures for Positive Image Building

1) For Positive Image Building, due attention should

be given to consumer protection, satisfaction and
welfare is MUST.
2) Fair treatment should be given to all social groups
and be made an integral part of the philosophy of
the company.
3) Introduce pollution control measures.
4) Support Sports, Education and Cultural activities.
5) Attention should be given to female and
handicapped manpower.
6) Maintain high level of efficiency and productivity.

7) Financial support should be given at the time of

natural calamities.
8) Maintain Ethical Climate in the organisation and
openess in the policies and operations of the
company.
 CORPORA TE IDENTITY

An organisation transmits messages to the publics

on a sustained basis. It is the reception of the
message which goes to create the intended image.
Corporate communication is the process that
translates an identity into an image.
In brief corporate image refers to the image that a
company has acquired with the public whereas
corporate identity refers to the image a company
strives to achieve, in order to build a reputation with
its publics.
In this context every company needs a mission. This
mission should be the framework for business and all
its activities. The mission is the glue that holds the
company together.
Here, the PR and its communication strategies come
into focus. If the objectives and mission of the
organisation have to be accomplished, the corporate
body must communicate short-term goals, long
range objectives and even the total mission of the
organisation.
Inadequate communications results in an ambiguous
corporate image. It may lead to a breakdown in co-
ordination and elements in an organisation.
 PR ROLE IN IMAGE AND IDENTITY

1) Name of the organisation - divisions and subsidiaries.

2) The logo factor - symbols in use.
3) Advertising and promotion.
4) Company publications - including annual reports and
house journals.
5) Company assets - well maintained office production units,
cars and outlets.
6) Company packaging -labels and tags.
7) Company signs - at public places offices and production
units.
8) Company stationery - forms, letterheads, cards etc.
 THE PR ROLE IN ACCIDENTS AND TRAGEDIES

Serious tragedies such as the Bhopal Gas tragedy

have occurred as a result of managements failure to
adhere to the norms of safety.

When crisis strikes, PR in its proactive role should

try to carry conviction with the management that
safety and welfare of the employees and community
is the responsibility of the management.
 THE LOGO

Logo means a single piece of type comprising a word

or words or a name, address, trademark or design".
Companies use their logo in their advertisement for
easy identification.
There are many logos which we observe in our daily
life.
Larsen and Toubro company has a simple logo in the
form of LT.
 THE IMPORTANCE OF LOGO

The logo of an organisation is the essence of its

personality and its identity to the world.
It is a visual identity which translates into a
corporate identity.
Therefore, the task of creating a logo requires
understanding of long-term perspectives and a
multitude of views.
The organisations pour time and money to develop a
powerful logo as a logo evinces visual interest to such
an extent that it is able to grab attention at just a
single glance
 LOGO AND CONSUMER

Whether it is in print or' on electronic media, each

passing ad or message fight hard for a share in the
consumer's mind and instant attention.

A powerful logo will definitely have a greater impact.

When it comes to catching the consumer's eye, the
interlinking of logos and brands is something every
marketer strives for.
 Financial PR

Communicating with the financial public is known as

financial public relations.
These are special public who are quite sizeable in
number and form dominant groups in the domain of
financial public relations.
They matter more to the organisation although no
PR and management can ignore any public.
 It is essential for the existence of the organisation
itself to have effective communication with all of
them.
 Who are financial public

1) The registered shareholders.

2) The investing community including potential shareholders.
3) The direct financial community consisting of banks and
financial institutions, stock brokers and a variety of key
players individual or institution in the global money
market.
4) The audience in the market scenario comprising of
politicians, customers, employees and the general public on
specific occasion.
5)  The financial and economic press in particular which
includes number of newspapers, trade journals and other
publications who create interest in economics and finance.
 ROLE OF FINANCIAL PR

1) One of the most important considerations for any

organisation is to look after the interest of its shareholders.
The PR has to assist the company in achieving the
corporate objectives.

2) Effective communication plays and important role in

creating investors awareness. If the campaign is. backed by
good performance it can give a boost to the share price.

3) PR communication in an effective form can provide the

opportunities to deliver correct messages to those involved
in the evaluation of the financial performance of an
organisation.
4) In the ever growing and fast changing financial
services. PR has to adopt the management of
change in -the context of the challenges and
opportunities and different PR tools and methods.

5) In the professional interest of PR and also in, the

interest of business as a whole, PR must be well
versed with business finance. Due to financial
illiteracy many PR persons has been ruined.
Any PR person involved in financial communication
should possess complete knowledge of the
accountancy concept and language. Some of the
important terms are:

1) Financial statement and its structure.

2) Return on capital employed and return on
shareholders capital.
3) Gross profit and net profit.
4) Taxation issues.
5) Cost concepts.
6) Working capital and liquidity.
7) Investment and Dividend.
8) Market capitalisation, debt and equity.
9) Profitability index.
10) Plans and budgets.
11) Operating concepts.
PUBLIC RELATION - FINANCE INTERFACE

PR and finance have a lot in common and each one can learn quite a
few lessons from eacr other. The following are a few examples of
mutual co-operation and learning at both the levels.

1) The finance department has to know and understand about PR as

an essential input of the organisation.

a) In the first instance PR expenditure is not a cost but an investment

and it should be given priority. PR is indeed not something free.

b) Even during financial crisis cutting PR costs is not efficient and

practical cost management. It is like withdrawal of essential inputs
towards development of the organisation.
2. PR people have to learn atleast the basic rules of
finance and managerial control systems if they
have to be seen as responsible professionals.
3. It is necessary to draw up a budget in consultation
with the finance department though it may not cost
a fortune.
In short finance and PR should have the same goals
and same purpose
PR TOOLS IN FINANCIAL COMMUNICATION

PR employs a variety of tools and methods to

promote business development for the purpose of
financial communication.

Key element in any financial PR Programme will be

aimed at the financial community, but at the same
time the business and its communication must gain
the acceptance of the government and the general
public in the present social, economic and political
environment.
The following are the PR tools in financial
communication:
1) The Press.
2) Media Relations.
3) Press Release.
4) Press Conference.
5) Annual Report and
6) Annual General Meeting.
The press play a very important role as a means of
communication by the companies to various categories
of investors and financial public.
The press activity helps the shareholders and potential
investors to maintain a record and understand the
performance of the company on the financial front.
The press includes local, regional and national
publications as well as financial and economic press.
In addition to this there are a number of trade
journals, marketing publications and even
publications of general interest.
 How to tackle press

1) No PR should ever run short of time as far as press

relations is concerned.
2) It is the duty of the PR to ensure that spokesperson from
the company even at the highest level is approachable
and accessible.
3) The company spokesperson should have thorough
knowledge of finance, technical and other economic
aspects. There cannot be a compromise in this.
4) Provide the right kind of information to the journalist
whether financial or general. This will enable them to
fulfill their assigned roles which is a key part of any
communication programme.
 MEDIA RESEARCH

An essential requirement for the success of any

business enterprise is an effective media relations
programme.
PR has to make a judicious selection of journals
newspapers and electronic media. Billboards and
hoardings also form a part of it for gaining the
support of the investors and also for boosting the
image of the company.
 Things to be kept in mind while selecting media

Reach: How far does the projected media

information provide a picture of the real situation?
Attention: Innovative steps through electronic
media are restricted but they are instant. But in press
the possibilities are endless. Hence both must co-
exist, each with its own advantage.
Durability: T.V. might carry a lasting impression
on the mind but press advertisement have a better
longevity.
Audience: Electronic media has the attraction of
bringing newer breed of people to in fold whereas
press can attract serious readers on a sustained
basis.
Information: T.V. can flash the bare essentials
which are just not enough whereas press can easily
pack in much more detailed information which the
financial readers constantly need
 PRESS RELEASE

One of the traditional method of handing out information

is press releases.
It is a very useful tool with the PR professionals: The
investors, shareholders and a vast group of financial public
is always on a look out for factual and accurate news and so
financial communication cannot just be a two line message.
The media persons are well aware of this and have to serve
their audience by collecting and disseminating news and
views in a sustained manner.
 A detailed financial releases are a useful tool of
communication with both press and public relations
professionals for this purpose.
 PRESS CONFERENCE

A traditional method of giving information by direct

use of face-to-face communication technique are
press conferences.
Such methods have been found to be distinctly useful
when an important event or development is to be
announced or when the annual accounts and reports
are to be published.
A few points are to be considered while organising press
conferences specially for financial public relations.
1) Adequate advance preparation and presence of the
highest management group is the essence of success for
a well organised press conference, Since such press
meetings will evoke intelligent questions and there
must not be any scope for faltering reply.
2) The very purpose of a press conference is aimed at
projecting the corporate entity and its financial
objectives to key the target audiences. Therefore
preparing the corporate image for launching a financial
campaign is a direct PR task.
3) In many cases in order to avoid controversies a lot of
temporaries prefer to throw the conference venue open to as
many media persons as possible.

4) It is very important that the press conference be addressed

by the senior most executive of the company No media
person would like to spend their valuable time with someone
who is not a legitimate newsmaker.

5) The comparative merits and limitations of a press conference

must be carefully assessed or otherwise be content with
mailing a financial press release which can also be
newsworthy.
 ANNUAL REPORT

In order to introduce the company to the financial

public as well as to financial collaborators an annual
report is the most essential and first-hand
communication.
It is mandatory on the part of the management to
present audited accounts of the company before the
shareholders at the annual general meeting.
The annual reports consists of the following:
1) Chairman's speech.
2) Report of the Board of Directors.
3) Balance Sheet,
4) Profit and Loss Account
5) Auditor's Report. .
Annual report is an essential input of financial public
relations. The PR role in the preparation and
production of the annual report could be as follows:
1) The company secretary together with the finance wing
of the company prepares the draft annual report.
2) PR plays a constructive role by emphasizing the need
to be free and frank, to admit difficulties and explain
the steps to overcome them.
3) The annual report can be used effectively as a tool of
PR communication.
4) One way to win over mass attention is to publish
the chairman's statement in selected journals and
newspapers. It should be published mainly in those
which specializes in financial matters.
5) A complete circulation list for annual report
dispatch is to be prepared by PR department. This
a golden opportunity to be in contact with the
financial press and concerned financial public.
 ANNUAL GENERAL MEETING

AGM is an important PR occasion when important

financial statements including audited accounts are
put up before the shareholders. The chief executive
gives details of the company's performance during
the last one year and explains the company's plans
and strategies for future development.
Though PR is not directly involved still he can
perform well from the background
In relation to AGM the tasks of PR with adequate management
support are as under
1) As far as financial public relations is concerned PR activity must
not be restricted to media relations alone. Financial PR covers
much more than just dealing with a few financial journalists.
2) PR can demonstrate its effective role in many other finance
related activities including AGM.
3) The PR can project the organisation to the outside world as a
dynamic entity alive towards the welfare of the community at
large by making the chairman's speech reach a much wide
audience.
4) Presentations is another effective way of attracting shareholders
attraction to the company's achievements.
5) In order to make his role noticeable in AGM
matters, the PR must have good access to the Chief
Executive and senior management persons. He has
to develop keen business acumen and be a part of
the business group which handles investors
relations programmes.
6) A well-planned PR programme will cover media
relations, Press - TV - Radio interviews, news
releases, press conferences and follow-up or post
meeting exercises.
 COMMUNICATlNG WITH THE INVESTORS

The investors have multiplied in numbers

individually as well as institutionally with the large
growth of money market.
 Other than individual investors or shareholders
there are foreign collaborators and national and
international financial institutions.
Among all the investors the shareholders hold the
most important position in this complex market
scenario.
A share is an instrument representing the true worth
of the company.
The value of share gets affected by the market forces
of demand and supply as well as by the goodwill
enjoyed by the company.
The judgement of the public in respect of a company
will depend on the flow of accurate information
about the developments and financial performance
of the company.
It has been seen that those companies who are in
constant touch with the shareholders and maintain
good . relations are in a much better shape both in
good as well as bad times.
Hence communication with the shareholders needs
to be an on growing process in order to gain their
everlasting loyalty and credibility.
In addition to this the shareholders will be
influenced by the financial reports and comments of
the press, T.V. and radio.
The PR professionals can play an active role in
creating investors awareness.
Today management believe that relations with the
entire capital market should be handled in a
professional way and on a continuing basis.
This calls for special skills and aptitude. Here comes
the important role of PR in financial relations for any
business organisation.
 ELECTRONIC MEDIA

Whenever there are chances to appear on television

or in radio talks, the opportunity should be used to
the best of the advantage.
 The PR and the top management have to be well
prepared though the occasion may be a general one
like take-over bid, or a success story.
They have to make an impressive and realistic
projection about the company's actual worth into the
world of finance.
 FINANCIAL ADVERTISING

Today financial advertising is a specialist field more than

just Jargons involved in selling products like shares and
debentures.
In the by gone days only brokers and institutional buyers
were the target groups but as on date there are millions of
individuals making personal investment decisions with
little or no influence of the brokers.
The Indian middle class having a little more fund has
found a way to play its additional money and time in the
burgeoning money market.
India is now having one of the world's largest stock
markets with a roster of more than 10 million stockholders.
Today financial advertising is indeed a big business.
 In any financial advertising plan the importance of
PR and media has increased in manifold.
Now the market is fiercely competitive and also
become unreliable, hence investment in property
and valuables are an easy alternatives.
Individual investors have become overcautious and
they display extreme heterogeneity.
Some of them appreciate qualitative information
while some of them have an eye for serious financial
data.
A conservative investor would normally prefer a debt
instrument like a bond or a debenture with assured
returns but a young speculative investor would be
ready to take risk and would gladly hazard his money
on a dazzling issue.
The roleof PR in overall financial communication
will be contingent upon its own capabilities and also
on the management appreciation of its functional
efficiency.
Advertising and PR objectives are more finely cut.
 A drastically over-subscribed issue could burden the
company with high cost in refunding the extra
money, and at the same time an entirely new target
audiences have to be chalked out for each issue.
 SEBI GUIDELINES

The Securities Exchange Board of India (SEBI) has put

down certain restrictions on the issue ads for shares and
debentures and mutual funds.
 The advertising people term it as a sudden attack on
"creative" element of advertising.
No models, no fluff, no wacky visuals, no smart headlines
or no unsubstantiated claims.
In the interest of the investor protection, SEBI feels that
financial advertising, video display etc. must not influence
the investor.
At the same time it is true that no one is being stopped
from separate corporate image campaigns.
SEBI has separated the issue ads and the corporate
ads. This has brought bifocal advertising into center
point of financial advertising.
Hence, one campaigns paints the larger image of the
company and another provides well manipulated
hard-core financial data.
As a result of this many companies prefer to award
corporate accounts to mainline advertising agencies
and the issue accounts to specialist financial
agencies.
 PR FUNCTION IN FINANCIAL ADVERTISING

1) PR function and PR persons must adhere to decent

and truthful norms while handling pre­issue corporate
campaigns.
2) Use of corporate or brand personalities in issue
advertising is unacceptable to SEB!. In the Indian
context PR has to be fully conversant with the
guidelines issued by Advertising Standards Council of
India.
3) PR has to review results against financial advertising
goals on a regular basis and initiate corrective actions
next time.
4) The role of PR as a media planner particularly in the field of
financial advertising is specialised and very important in the
entire advertising process. Media planning is an essential part of
overall PR planning.

5) Media research, media relations and media specialisation are

specific and important areas which require more imagination on
the part of PR persons handling financial communication.

6) PR person has to become market-minded to tackle financial

advertising. He has to evaluate and recommend the advertising
policy of the company to the top level management. Further he
has to decide whether the advertising campaign will be best
handled through an' advertising agency.
7) Careful evaluation of the available facts would go a
long way in arriving at a right decision.

8) Investors are not all experts in money

management. People buy financial products when
they feel confident and find the offer trustworthy.
PR can play its role as an influencing factor in
investment decisions. So in financial advertising he
has to produce the .right advertisement campaign
at the right time for the right segment at the right
cost rather than at the lowest possible cost.
 SPECIAL SITUATIONS

A few special events require specific attention and

appropriate involvement of PR persons in defining PR
objectives in relation to financial public relations. Some
of the key issues of the campaign are
1) Acquisitions: It may be agreed or disputed, friendly
or unfriendly, PR has to define and play its role. _
2) Flotation: It is a means by which a company comes
into share market. PR will initiate public relations
aspects of launching, implementing corporate and
financial public relations programme, monitoring share
price movements and organising new shareholder
profile.
Privatisation: Through the flotation of shares on
the stock market transfer of public-sector owned
business to private sector.
Sponsorship: Community responsibility through
support for arts, sports, environment and human
interest areas.
 CORPORATE PR

While planning for corporate goals and strategies in

special situations PR must give adequate importance
and attention to
1) Customer relations.
2) Employee relations.
3) (Community relations.
4) Government relations.
5) Investors relations and
6) Financial public relations