CCOM 200

Trade association

A formal organization that generally represents companies from the same industry or 'trade' for purposes of advocacy, lobbying, education and representation. Most trade associations are based in Washington. Examples include the Business Software Alliance and the National Restaurant Association.

Regulation or Rule

A government agency's determination that specifies in detail how and under what circumstances a law is to be implemented. The government agency drafts regulations using guidelines set by Congress in applicable law. The process of drafting regulations is called "rulemaking" and occurs on Stage 3 of the policy process (see below). The words "regulation" and "rule" are interchangeable, for all practical purposes.

Government Relations

All forms of lobbying and non-lobbying activities that have the ultimate goal of influencing public policy. These activities basically come in two forms: 1) information -- providing the government with relevant, useful and expert information that it may not have had otherwise, and 2) advocacy -- providing the government with viewpoints, opinions and recommendations on a particular policy option.

Public Affairs/Government Relations

All forms of lobbying and non-lobbying activity that have an ultimate goal of influencing public policy.

Public Affairs

All non-commercial, non-financial external communication of an organization. a. Instead of "Public Affairs," the function sometimes is designated "Government Affairs," "Government Relations," "Community Affairs" or "Global Affairs."

Media Relations

All the ways an organization interacts with the news media.

Non-governmental organization (NGO)

An organization that operates independently of government, or of a conventional for-profit business, usually to deliver resources or serve some social or political purpose. Sometimes called 'civil society organizations.' Examples of NGOs include the World Wildlife Fund, Doctors Without Frontiers, and the Red Cross.

Strategy (Conceptional How?)

Broad overview of how communications will be done.

Quality of Response

CRISIS MANAGEMENT RULES 1. Think clearly.- 3 components: 1. Name the problem. - If a company cannot name the problem, it cannot mobilize its resources to solve the problem. - Misnaming the problem can cause severe misallocation of resource. 2. Understand the absolutely predictable consequences, both intended and unintended, of: - Doing nothing, - Of doing something, - Of doing something more. - What might be the absolutely predictable consequences of avoiding engagement? - Sometimes doing nothing is the 'least bad option', but it should be absolutely predictable 3. Focus energies on solving the problem rather than indulging on emotions. 2. Take the pain: - ACCEPT SHORT-TERM PAIN -- Acting quickly to lessen impact on corporate reputation often means short-term inconvenience, embarrassment, discomfort, financial cost or other distress. - DO what you have to do, when it will do the most good, whether you like it or not. - ACT RESPONSIBLY when it can do the most good, which is BEFORE others define the problems in ways that can hurt the company.

Stakeholder Attributes

Can be defined in terms of which one, two or three of these attributes they possess: Power, Legitimacy, and Urgency. - Each attribute is variable, and not a constant over time. Groups can acquire or loose attributes, depending on circumstances and coalitions they can build.

So, you find yourself in a CRISIS...now what?

Crises are inevitable; reputation damage is not. - The response makes all the difference. Studies have shown that: - Impact a crisis has on reputation is NOT a factor of the severity of the underlying event. - It is the TIMELINESS and QUALITY OF RESPONSE that makes the difference.

Objectives (What?)

Desired outcomes, but not the process to reach that outcome. o Note that some observers distinguish between 'goal' and 'objective.' A goal may or may not be measurable, while an objective is always measurable, to these observers. For purposes of this course, a goal and an objective are one and the same.

Corporate Responsibility

Efforts to meet the financial and non-financial expectations and concerns of various stakeholder groups. Includes the narrower concept of Corporate Social Responsibility (CSR).

Coalition

Groups, usually temporary, that come together for a particular purpose around a central policy issue.

Ticker symbol

In the U.S, a one-four-letter code that is issued by the stock exchanges to denote a particular company's stock. Example: SBUX for Starbucks, MFST for Microsoft, and X for US Steel.

Power

Influencing other parties to make decisions the party would have not otherwise made. o Coercive power = based on force, restraint, violence. o Utilitarian power /Resource power= based on material or financial resources. o Normative power/Symbolic power = based on symbols and symbolic resources.

Power

Influencing other parties to make decisions the party would have not otherwise made: - Coercive power = based on force, restraint, violence. - Utilitarian power = based on material or financial resources. - Normative power = based on symbols and symbolic resources.

(3 major themes of media relations) Journalists are The Gatekeepers to those who matter to an Organization.

Journalists are different from other stakeholders, in that they are merely CONDUITS to other stakeholders. - It is not the journalists in themselves who matter, it is whom they reach. - This is not to say that journalists are not important. In fact, the journalists' gatekeeper role often enhances their critical importance to an organization. - Media can cause a change in reputation quickly and profoundly for an organization or person. -It is becoming increasingly difficult to determine who is a journalist. - The rise of public journalism, blogs, and social media makes almost anyone a journalist.

Legitimacy

Legal, moral or presumed claim to influence others' behavior, direction, process or outcome. - Something of value - human or financial capital.

Corporate Communication

Management function dedicated to the dissemination or mutual exchange of information (that is, 'manage communication') with stakeholders, and to the development of messages for a variety of purposes both inside and outside the organization, for the execution of corporate strategy.

Global Relations

Managing relationships with stakeholders in other nations.

Controlled media (proprietary media)

Media in which you control the content entirely. Examples include newsletters for employees, members or customers, the company website, press releases, company brochures and so forth.

Timeliness (the need for speed)

Most REPUTATIONAL DAMAGE COMES FROM PERCEPTION that the company is indifferent to the harm it has caused or is causing. - Stakeholders will to forgive often when something goes wrong, but not if company seems not to care that things have gone wrong. CRISES ARE NOT BUSINESS AS USUAL - Suspend business as usual. - Time is your enemy - Actions that could be effective Day 1 may be completely ineffective Day 2, 5, or 10. - "GOLDEN HOUR" of crisis response - Early phases, opportunity to influence is the greatest - Incremental delays in responding have a greater than incremental impact on ability to control the outcome.

Difference between Private and Public Ownership

Private ownership = private company held by one or a handful of owners. Public ownership = public company that has shares readily available for ownership and trading by members of the general public. • All corporations have shares, whether public or private. • When a private company reaches a certain threshold (about 500 shareholders) it must begin reporting its material information publicly on a regular schedule; that is, it must become a "regularly reporting company." o Securities and Exchange Commission. • Companies go public through the process of an Initial Public Offering (IPO). • Public companies have a ticker symbol; its stock trades on an exchange.

Partnership

Similar to a sole proprietorship, except a business is owned by more than one owner.

Tactic (Operational How?

Specific techniques employed to reach a goal or objective. • Communication tactics are "the deliverables" in a communication plan. • Strategies are conceptual, tactics are tangible.

Rhetoric

The art of using language effectively so as to persuade or influence others.

Mass media

The collective name given to channels of communication that are designed to disseminate information rapidly and efficiently to large audiences, generally with identical content. - Radio, television, newspapers and magazines are each examples of mass media.

Semiotics

The study of signs or symbols and their use or interpretation.

Sources of Crises

Where do crises come from? 3 likely sources: 1. Event external to the company - an event that is thrust at a company. - Sabotage - Criminal/terrorist incident - Hostile takeover attempt - Criticism by activists, community, NGO - Negative media coverage - Many companies make a fundamental mistake - focus on the angle of being victim to some external event that causes harm. 2. Events internal to the company: Company itself could act in a way that causes a crisis. - Malfeasance or misbehavior by an employee or officer - Financial weakness - Dangerous product - Accidents or death in workplace - Labor issues - Management turmoil - Slow erosion of values, quality or efficiency that suddenly is noticed. 3. Change in the macro business environment. - Company is neither the source nor the target, but suffers collateral damage.

3 key relationships between the Federal government and business:

- Government as a customer. The government purchases many goods and services from business. - Government as a regulator. The government sets standards that protect the public interest. The government settles control of scarce resources among competing business interests. The government protects business assets through copyright, patent and other law. The government protects business operations from unfair foreign or domestic competition. - Government as a revenue collector in the form of taxes.

Lobbying: Indirect Forms

- Grassroots campaign Grassroots advocacy = an indirect form of lobbying in which constituents of a given congressional district or State are encouraged to contact a Member of Congress or a Senator, advocating a particular policy option.

How do Consultants help a company's overall government relations function?

- Intelligence gathering-Good consultants can greatly extend a company's 'eyes and ears' capability to either help thwart bad policy of ferret out opportunities that would have otherwise gone unnoticed. - Strategic counsel-Outside consultants can clearly add depth and breadth to a company's thinking on addressing policy and political challenges. - Direct lobbying-Outside consultants can increase a company's 'boots on the ground capability where the tactical lobbying of members and/or staff are most needed. - Communication-Consultants can help with message development, drafting press releases, advertorials, op-eds, blogging, social networking and arranging media interview. - Collectively, lobbyist and consultants in Washington are called "K Street" (in much the same way 'Madison Avenue' stands for advertising and 'Wall Street' stands for finance).

Some key audiences for organizational communication:

- Management. - Staff employees. - Production employees (line employees). - Non-union and union employees. - Temporary employees & contract employees. - Retirees and former employees. - Families of employees and of retirees.

Lobbying: Direct Forms

- Meeting with Members of Congress of their staffs - Meeting with an executive branch official - Phone or written communication (letter, email, fax)

JAKOBSON MODEL OF COMMUNICATION (adapted from work of Roman Jakobson)

---------------------------context -------------------------- message addresser-----------------------------------------addressee --------------------------contact -------------------------- code

2 ways to approach organizational communication. (T,S)

-Traditional (formal) approach. - Traditional job: To craft coherent, grammatically correct communication, after decisions are made elsewhere. - PR people seen as tacticians solely. - One-way communication that collects, writes and distributes information about products, services, the organizational structure, company policies and company procedures - and changes to any of these - as effectively as possible via 'house organs' 'to specs' - Strategic approach. - Combines formal and symbolic approaches, to manage meaning inside an organization. - Symbolic communication - the messages sent through leaders' and company's actions. (Symbolic communication is a form of normative power)

Urgency

1) A relationship or claim that is of a time-sensitive nature, 2) A relationship or claim that is important or critical to the stakeholder. Urgency often attracts media attention. - Power, Legitimacy and Urgency may be used as a prioritization strategy, based on the number of attributes a stakeholder has. (You do not need to memorize the 7 Ds from the illustration above. Do understand how stakeholder attributes can be used for prioritization of stakeholders.)

6 factors in an act of communication

1. Addresser - actor who originates the communication 2. Addressee - actor who receives the communication 3. Contact - the physical channel by which the communication occurs 4• Message - the content of the communication 5• Context - the larger picture into which the communication fits 6• Code - common processes/points of reference of understanding shared by the addresser and addressee

Key themes for Organizational Communication

1. INTERNAL COMMUNICATIONS ALIGNS THE HEARTS, MINDS AND HANDS OF EMPLOYEES. 2. THERE ARE 7 DISTINCT TRENDS IN BUSINESS TODAY THAT ELEVATE THE STRATEGIC IMPORTANCE OF INTERNAL COMMUNICATIONS. 3. INTERNAL COMMUNICATION IS AN IMPORTANT DRIVER OF CORPORATE PERFORMANCE.

7 trends in business today that elevate the strategic importance of organizational communications.

1. Increasing cynicism growing from corporate scandals and failures. a. Employees are less content, more suspicious, less trusting than in past. 2. Flattening organizations. a. Pushing decisions to frontlines, de-bureaucratizing. b. More employees making business decisions. c. All employees must be on same page regarding organizational objectives. 3. Increased pace of change within organizations. a. "Set-in-stone" procedures a thing of the past. b. Employees need to understand context within which the organization operates, to make sure all are moving in same direction. 4. In the eyes of consumers, speed has become a major differentiator among products. a. Formerly, consumers made decisions based on price and quality solely. b. Anything that slows internal speed helps the competition. 5. Increased emphasis placed on human capital as a company asset. a. Internal Communications vital role in building people capacity. b. Need for knowledge management. 6. Increased desire by employees for purpose. 7. Importance of branding. a. Brand (definition) = 1) the sum total of all the factors that affect how an organization is perceived; 2) a perception, often imbued with emotion, which results from experiences with and information about a company or its line of products. b. Brand promise (definition) = the commitment a company makes to a customer about what will happen (or what the customer will experience) when the product (or service) is used. c. Employees need to understand the 'brand promise', esp. in the service industry.

Key information within the SEC Form 10-K.

1.Income statement- Also called profit and loss statement (P&L), statement of earnings, or statement of operations. - Shows revenues, expenses and profits for a period of time. (Revenues - Expenses = Profits). - Bottom line of the income statement is net profit, also known as net income. 2. Balance sheet- Statement of what a business owns and what it owes, at particular point in time. - Reflects the assets, liabilities and owners' equity. - Assets equal liabilities plus owners' equity (A=L+OE). 3. Statement of cash flows- Shows cash coming in to a company, minus the cash going out, in a given time period. - Positive cash flow - good. - Negative cash flow - bad, probably. -Knowing a company's cash situation helps analyze what is going on in the company now, where a company is headed, and what senior management's priorities are likely to be.

Corporation

A voluntary organization in which diverse individuals and interests collaborate for the creation and distribution of wealth. A corporation is a formal legal entity, recognized and chartered by a State in the United States. A corporation may operate in any State and is not limited only to its State of incorporation. Many corporations, regardless of where they operate, incorporate in the State of Delaware, given that State's favorable and sophisticated business law.

Crisis

Anon-routine event that risks undesirable visibility that in turn threatens reputational damage. - Every organization, sooner or later, will be on the receiving end of some event that risks reputational damage. - Unplanned visibility - high profile, developed when some unanticipated outcome from an operating process or daily business activity that draws the attention of key stakeholders. - A crisis is NOT the event itself, but that the event influences the attitudes to those who matter. - A crisis is not that an event is non-routine, but rather that the consequences of that event do risk visibility that you would not seek otherwise. Are crises always negative? No, because what objectively may be a positive for you may not be seen as a positive by other

Stakeholder

Any group or individual who is affected by or can affect the achievement of an organization's objectives.

Integrated Communication

Customer-centric, data driven method of managing all organizational communications to build positive relationships with customers and other stakeholders. (Note: Sometimes the concepts of integrated communications and marketing communications are combined, in recognition of their close links, into "integrated marketing communication.")

Language

The use of words in an ordered, structured and conventional way, to convey meaning.

Media Relations

The ways in which an organization interacts with the media and journalists.

Some key items for organizational communication:

- Communication of corporate mission, objectives & strategy. - Mission Statement - describes the fundamental purpose of the organization. - Vision Statement - describes in idealized terms how the organization and its world will look as the organization achieves its purpose. - Values Statement - describes the core principles that the organization believes in, as it pursues its purpose. - Types of information in employee communication 1. Communication required by law. a.ERISA, COBRA, workplace rights, unemployment insurance. 2. Human resource communication. a. Compensation (base pay, incentive pay), bonuses. b. Employee benefits, including health insurance benefits. c. Information on retirement and pension. i. Defined benefit plan (traditional pension) ii. Defined contribution plan (401-K) d. Employee training and education 3. Business communication a. Company news (for instance, new factories, new markets, new people). b. Organization procedures, processes and expectations. c. Information about products and branding (see 'brand promise,' below). d. News about the industry or sector, marketplace. 4. Informal communication Hallway conversation, for example.

Players in the Washington lobbying/public affairs game.

- Corporations - Trade Associations - Coalitions and other grassroots organizations - Think tanks - Non-governmental organizations (NGOs) - Consultants (a/k/a "hired guns")

Regulation Fair Disclosure: The Basics

1. Also known as Regulation FD, or Reg FD. Became effective in Oct 2000. 2. Reg FD made selective disclosure of material information explicitly illegal, in many circumstances. 3. Reg FD = "...when a company, or persons acting on its behalf, discloses material, nonpublic information to securities market professionals or to the holders of a company's securities who may well trade on the basis of the information, it must make public disclosure of that information." 4. Reg FD did not change companies' discretion to choose whether to disclose, subject to existing disclosure requirements. 5. Publicly traded companies typically now have written disclosure policies, as a result of Reg FD.

Difference between stocks and bonds

1. Bonds- Tiny, discrete simultaneous loans from a large number of investors. a. Also known as debt securities, fixed-income securities. b. Temporary use of capital, for limited time. c. Has to be repaid to the investor at some point. d. Benefit to investor is a specified rate of return over a specified time. 2. Stocks- Tiny, discrete portions of ownership in a corporation. a. Also known as equity, shares. b. In exchange for putting capital permanently at risk, investor gains a share of ownership. c. Benefit to investor is dependent on success of the venture.

4 best practices in organizations that are serious about aligning employee behavior with reputational interests

1. Bright lines and well-defined boundaries, enforced consistently. (See pp. 138-145 in Doorley & Garcia, if you want more.) a. No gray area means employees waste little time and energy wondering what is expected. 2. Practical rules of thumb. a. Principles with broad application that is easily learned and applied. 3. Values clearly stated in order of importance. 4. Realistic, scenario-based discussions.

What Does Media Relations Do?

1. Build long-term relationships with 'beat' reporters. a. beat (definition) = A journalist's assigned area of interest or specialty. 2. Manage day-to-day, ad hoc contacts with reporters. a. ad hoc (definition) = Latin phrase used in English, meaning 'done for a particular purpose only,' literally mean 'to this' or 'for this.' 3. Develop messaging and media plans and draft primary media relations' tactical documents. a. Such as press releases, press kits, facts sheets. 4. Seek coverage through information, interviews and press conferences. a. "Pitch" story ideas to journalists. Guide senior managers through interviews and press conferences. 5. Establish procedures to manage, monitor and measure contacts between the media and the organization. a. It is becoming much harder to define who is a reporter and who is not, with the advent of public journalism, bloggers and so forth.

Why do companies will enlist external lobbying consultants to enhance its government relations activities and to expand its reach in Washington?

1. Companies are increasingly viewing Washington as a more active player in their daily affairs. 2. The number of lobbying consultants has increased given the declining cost of entry into the profession as a result of new communication technology. 3. U.S. companies have been under tightening pressure to reduce payrolls.

Seven practical reasons why corporations exist

1. Creates a legal entity/person. • Sign contracts. • Access to courts. • Able to take on debt and gain certain legal rights and responsibilities. 2. Unlimited life. 3. Limits the liability of owners. 4. Established governance and business procedures. 5. Allows for a more complex, faster growing organization. 6. Able to secure significant funds and share risk through sale of stocks and bonds, at a lower cost. 7. Certain tax advantages

What do Bosses worry about/think important? (risk and performance)

1. Financial risk and performance a. Examples: earnings, cash flow, lines of credit. 2. Operational risk and performance a. Examples: systems, processes, plant, labor all inputs and outputs 3. Strategic risk and performance a. Examples: Where will growth come from? What is the competition doing? 4. Compliance risk and performance a. Examples: obeying environmental or product safety regulation 5. Reputational risk and performance a. A company's reputation is one of its most important assets. b. Corporate Communication has a direct responsibility for a company's reputation

Why do companies need money?

1. Fund operations. 2. Fund long-term investments. a. Money to invest in research, b. Money to invest in new factories, c. In short, money to grow.

Pitch

A one-on-one, personalized approach to persuade a journalist, producer, editor or other gatekeeper to cover a story. Can be in the form of a traditional letter, email, or phone call, most typically.

Barriers to alignments of hearts, minds, and hands.

1. Senior leadership fails to own it -- senior leadership gives only 'lip service' to reputation management, and fails to get behind it fully. 2. Tactical focus of employee communication -- traditional approach (see below) of communication as solely execution hinders employee engagement. 3. Lack of role clarity -- overlapping jurisdictions and lack of integration among marketing, public affairs, customer service, legal and human resources staffs. 4. Too much information - today's instantaneous communication sometimes overwhelms; 'a wealth of information creates a poverty of attention.'

Organizational Communication/Internal Communication/ Employee Communication/Change Manangement

1. The function charged with aligning the hearts, minds and hands of employees through dialogue and engagement. 2. The function that manages meaning inside an organization in ways that support leadership's business objectives.

Investor Relations

1. The subset of corporate communications that deals with a company's relationship with the investment community. The 'investment community' includes both: a. Current investors (those who own a company's stocks and bonds). b. Potential investors (those might be persuaded to own these stocks and bonds). 2. The process of using communications to compete for capital in the highly competitive capital markets.

Why do capital markets exist?

1. To supply this money (a/k/a 'The Secret Formula of Wall Street') a. "A" has a surplus, doesn't immediately need it. b. "B" has a need. c. A gives money to B, in return for a commitment to return it someday. 2. All financial products and all the million dollar salaries on Wall Street boil down to this one simple concept: simply moving money. 3. Capital markets = Brings together those who need capital with those who have extra.

Parts of a press release/news release C, H, D, B, L, B)

1.Letterhead of your organization on 8.5 x 11-inch paper. 2. Contact - At a minimum, your name, affiliation, phone, and email. Contact information either can be first on a release, or at the end of a release. 3. Headline - In essence, a title for the release. A headline indicates the principal or most enticing information of a release. 4. Dateline - City and date of release. 5. Body - The entire text of the news release, including the lead and following paragraphs. a. The body often is written in the journalist's inverted pyramid style, with most important information first, then the context of that information, then supporting facts. b. Lead (sometimes spelled 'lede') - The first paragraph. In one, two or three sentences, the lead should grab the attention of the reader, so that the reader then continues on to the body of the text. 6. Boilerplate - A short descriptive paragraph, typically found at the end of a news release or similar communication that provides a thumbnail sketch about an organization.

Issues Manangement

A PROCESS that allows an organization to know, understand and more effectively interact with its environment - Issues management is a PROCESS that systematically identifies, analyzes and tests corporate strategy in the context of changing expectations and changing circumstances. - Issues management can prevent an issue from becoming a crisis.

Sole proprietorship

A business owned by a single person. The sole proprietorship can bring certain advantages that the corporation does not have: -Sole proprietorships are easy to start - you don't have to do anything to set up a sole proprietorship, just open your doors. -Fewer legal formalities - Sole proprietorships require no board meetings or by-laws. -Fewer legal obligations -- Sole proprietorships generally do not pay unemployment insurance tax, for instance. -Tax filing is simpler - Taxes due on a sole proprietorship are done as part of your personal tax return. -Certain financial flexibility - It is easier to juggle money between personal and business accounts. -Fewer than 20 percent of all U.S. businesses are corporations, but they generate about 90 percent of the country' business revenue.

Think tank

A collection of academic and government scholars that conduct research, develop policy options and publish, often around a particular political or philosophical bent. Examples, as noted in our text, include the Brookings Institution, the American Enterprise Institute and the Center for American Progress.

Byline

A line appearing in a newspaper or Internet article that identifies the writer(s) of the article. Most often is found directly after the article's headline.

Issues Management

A risk management process that helps identify challenges in the business environment before they become crises, and mobilize resources to protect corporate reputation.

News aggregator website

A type of news website that does only a small amount or no original reporting; rather the site gathers and distributes, with full credit, news stories from other news sites. Some aggregations use human editors to curate stories, while others solely use algorithms - most commonly though, it is a combination of human and computer-based curation.

Who are the Bosses?

Board of Directors- Elected by shareholder/owners, usually annually at the Annual Meeting. o Directors hold a legal 'fiduciary duty' to put interests of shareholder/owners ahead of Directors' own interests. o Chairman of the Board -- elected by other Directors to lead the Board. Chief Executive Officer (CEO)- Chief decision maker within management. o Responsible for strategy and smooth operations. President- Nominally second in command. o Role and duties vary widely from company to company. Chief Financial Officer (CFO)- Oversees and manages the financial strategy of the company. o Treasurer and Comptroller report to this person. Treasurer- Responsible for financial relationship both inside and outside the company, such as the relationship between the company and its banks. o Manages cash and cash flow, financial forecasts. Comptroller- Purely an internal role at the company. o Responsible for general accounting, financial reporting, business analysis, financial planning, asset management, and internal controls. o Alternatively, called the 'controller' in some firm. • Some other members of the C-Suite Chief Legal Officer (a/k/a General Counsel), Chief Operating Officer (COO), Chief Marketing Officer (CMO), Chief Technology Officer (CT0)

Horizontal media

Broad-based media that appeals across numerous sectors and categories. Intended for the public-at-large. Examples: daily newspapers (The New York Times, Washington Post and the Sun-Gazette), broadcast television networks (NBC or ABC), and general readership websites (The Huffington Post or The Daily Beast.)

Electronic distribution services

Commercial for-profit services that transmit news releases, photographs, and audio and video news releases from fee-paying clients to media organizations and others. The two principal electronic distribution services in the United States are Business Wire and PR Newswire. Be cautious not to confuse commercial electronic distribution services with electronic news outlets, such as Bloomberg News, Dow Jones, Reuters and Associated Press, which provide traditional news written by journalists.

US Policy Process

Can be expressed in a triangle sitting on its apex. - Horizontal plane of the triangle represents 'degree of mandated access.' - Vertical plane represents 'time.'

Customer Relations/Consumer Relations

Communication with the market, often on a person-to-person basis, aimed at brand enhancement and product satisfaction.

Organizing the Media Relations function within a large corporation.

Corporate media relations = About the corporation as a whole and its issues, its leadership, its financial results, its governance and industry trends. Product media relations = Focused on individual products, plus consumer and trade media. Marketing media relations = Brand, product LINES (as opposed to individual products), product issues, special events, and promotions. Can also be called "marketing communications." Financial media relations = Work with journalists who specifically write for investors and potential investors. Regional media relations = Focused on a specific geographic region, often reporting to management in that region with dotted-line reporting to corporate media.

Corporate speech

Corporations are considered to have a First Amendment right to free speech in areas of public policy, politics, and society. This right grows from a corporation's status as a legal person. The government generally may not restrict corporate speech. o Citizens United versus Federal Election Commission -- Key 2008 U.S. Supreme Court decision on corporate speech, in which the Court ruled that restrictions may not be placed on corporations (and others) when engaged in political speech. The decision struck down several campaign finance laws that restricted corporate speech on political issues.

Agency Problem

Created by the separation of ownership from management in modern corporations. Owners and managers differ on 1) goals of the corporation, and 2) the risks the corporation should take on. - How do the owners know that the managers are always operating in owners' best interest? - Owners can put in place two mechanisms to solve the agency problem. - Incentive system. Compensation-based - Stock options for senior managers, to 'align the interests' of management and owners, by making mangers also part owners of the company. - Information system. - Human-based - Board of Directors, to monitor management for the owners. - Paper-based - Required disclosure to owners, through the Securities and Exchange Commission and its rules.

Agency Problem

Created by the separation of ownership from management in modern corporations. Owners and managers differ on 1) goals of the corporation, and 2) the risks the corporation should take on. • How do the owners know that the managers are always operating in owners' best interest? • Owners can put in place 2 mechanisms to solve the agency problem. o Incentive system - Provide the management with incentives, typically some form of compensation, to ensure that management puts owners' best interests first. -Compensation-based - Stock options for senior managers, to 'align the interests' of management and owners, by making mangers also part owners of the company. o Information system - Require that management provide owners with sufficient information about the corporation's operations and prospects, so that owners can make an informed judgment on management's performance. The information system takes two forms: -Human-based - Board of Directors, to monitor management for the owners. The Board of Directors is elected at the Annual Meeting of Shareholders to represent them for the oversight of the company's management. -Paper-based - Required disclosure of information directly to owners, monitored by the Securities and Exchange Commission and its rules.

Why in theory do corporations exist?

Entrepreneurial theory - ideas.... for 'the creation and distribution of wealth.' Management theory - talent Stakeholder theory - interests Agency theory - capital o Specifically, to AGENCY THEORY-Separation of owners from management o Creates the agency problem: How do the owners know that the managers are always operating to owners' best interest?

Diagnosis of a Crisis

How do you know you are in a crisis? Ask yourself three questions: 1. Is this a non-routine event? 2. Does it risk undesired visibility? Risk = likelihood x consequences (magnitude) 3. Would that undesired visibility in turn threaten reputational damage?

Vertical media

Media targeted to a specific subject/trade category, demographic group or psychographic group. Not intended for the public-at-large, although it is available to the general public if sought. Examples: publications for specific sporting activities, such as Skiing magazine for skiers and Field & Stream magazine for hunters and fishers; publications for specific industries such as Women's Wear Daily for the fashion and apparel; American Banker for banking.

Uncontrolled media (third-party media)

Media that is controlled and owned by someone outside your organization. You do not control the content. Examples are newspapers, magazines, television and radio. The term 'uncontrolled media' is considered a misnomer to many in public relations, and so is best avoided.

(3 major themes of media relations) The Hallmarks of Media Relations are it's efficiency, it's reach, and it's cost effectiveness.

Messaging is the core skill of public relations. - You want to know 1) what you will say and 2) how you will say it, before you speak, which is the definition of messaging. - Messaging both drives and disciplines your communications. Messaging is both tactical and strategic at the same time. - Messaging is strategic in that it allows you to drive communication toward your organizational goal. - Messaging is tactical in that it allows you to discipline yourself to know when you are 'on track' or 'off track' in any interaction with the media. -Your purpose in any public relations exercise is not to answer questions; rather, it is to tell the world what you want the world to know. - Messaging allows you to control the words. - Effective messaging allows you to tailor to specific stakeholders while maintaining overall cohesiveness and credibility. Efficiency = Message discipline combined with message penetration. Reach = Contact with just a few reporters potentially can reach many stakeholders Cost effectiveness = distribution, timeliness, credibility.

What's in the Federal Register?

Notices-This category include notices of public meetings, hearings, investigations, grants and funding, environmental impact statements, information collections, statements of organization and functions, delegations, and other announcements of public interest from the Federal government. Proposed Rules-This category contains proposed regulations. These documents announce and explain agencies' plans to solve problems and accomplish goals, and give interested persons an opportunity to submit comments to improve the final regulation. Final Rules-This category contains regulations that apply to the general public and have final legal effect. The rules generally go into effect 30 days after publication in the Federal Register. Presidential Documents-This category contains documents signed by the President of the United States. Documents include Executive Orders, Proclamations, Administrative Orders, Presidential Memoranda, and other issuances of the President that are required or directed to be published in the Federal Register.

(3 major themes of media relations) Media Relations is often seen as the sum of PR.

Public relations can sink or swim inside and organization based on its Media Relations -C-suite typically sees Media Relations as tactical, initially. -A good Media Relations practitioner enhances two-way communication, both inside and outside the organization. Core requirements for an effective Media Relations function within an organization. -Know the facts. -Know what you want to say about the facts (that is, your messages). -Know when you want to disclose the facts. -Speak with a single institutional voice.

4 Stages of Public Policy Process

Stage 1-Initial policy formulation, or policy proposal. - Little or no public engagement is desired or required. "Inside the Beltway." Stage 2-Legislative, or law making, stage. - Limited public engagement may occur, at the choice of the Congress, but none is required. Congress considers and approves policy, turning policy proposals into a law. Stage 3-Rulemaking, or regulation writing stage. - Federal agencies are directed by Congress to write the rules and regulations, to flesh out the law and make the enforceable. - Direct public engagement is required for the first time. ---- There is a steadily expanding procedural right for the public to be heard in the process. - Agencies must post notice of all rulemaking in the Federal Register, which is a daily publication of the government on proposed and final regulations. (https://www.federalregister.gov) - The public can provide comments directly, which the agencies must consider, then either accept or reject, giving reasons for the rejection. - The easiest way to access the comment process is through the Federal government website (http://www.regulations.gov) -Final rules go into effect 30 days after notice is given in the Federal Register. Stage 4-Law and its regulations become effective. - Full judicial review is available to any person, who may bring a lawsuit to prevent a regulation from going into effect, or modify the regulation. - Two possible grounds for legal action in Stage 4: 1) The law or its regulations violate the US Constitution. This includes violation of due process (in other words, the government did not follow the required procedures) in writing the rule. 2) The regulations violate the intent of Congress when it enacted the law.

Investor Relations

Subset of public relations and corporate communications that deals with a company's relationship with the investment community.

Publics

Term used for stakeholder in some public relations literature.

Supply chain

The complex network of suppliers who produce components and ingredients that are then sold to the manufacturer to refine or assemble into a product.

Employee Communication/Internal Communication

The function charged with aligning the hearts, minds and hands of employees through dialogue and engagement.

Commercial speech

The government may restrict and regulate speech related to the promotion of products and services (that is, 'commerce'). Essentially, the government may regulate promotion and advertising that is false, misleading, or deceptive, or that promotes unlawful goods and services.

Interactive Media (Dig. Media)

The integration of digital media including combinations of electronic text, graphics, moving images, and sound, into a structured environment that allows people to interact with the information for appropriate purposes.

Generally Accepted Accounting Principles (GAAP)

The name given in the United States to accounting rules used by companies to prepare financial statements.

Lobbying

The practice of advocating one's policy position to government officials directly with the hopes of influencing legislation, regulation or other government action.

Disclosure

The release by a company of information, positive or negative, that might have a bearing on an investment decision. The distribution of information, positive and negative, by a company, voluntarily, or to be in compliance with laws and regulations. - Corporate disclosure may be divided into two categories. 1. Formal disclosure. a. Formal disclosure is highly structured. b. Formal disclosure is reviewed by the SEC after filing. c. Generally done via formal filings - "forms" i. Form 10-K - filed once a year by public companies after the end of its fiscal year. It is a comprehensive view of the company's business. ii. Form 10-Q - filed three times a year by public companies after the end its first, second and third fiscal quarters. iii. Form 8-K - filed by public companies at any time, on an 'as needed' basis, that is, any time the company wants to make official its disclosure of material information. 2. Informal disclosure. a. Unstructured corporate disclosure disseminated to investors and potential investor through various channels. b. Includes press releases, speeches, conference calls, some types of advertising, and road shows. c. Informal disclosure is not generally not filed with nor reviewed with the SEC.

Social media (Dig. Media)

The same as interactive media, except the end purpose is for people to interact with people.

Community Relations

The strategic development of mutually beneficial relationships with targeted communities toward the long-term objective of building reputation, credibility and trust.

Marketing Communication

The use of public relations strategies and techniques to connect consumers, brand and product.

How do we know which ISSUES are most important and which can be ignored?

Threat assessment: 2 fundamental questions: what is the likelihood?, and what is the magnitude? -Based on two critical factors to assess importance. -Clear description of the threat, various ways it could play out = LIKELIHOOD. - Why is the threat something that should be managed? = MAGNITUDE. - Plot out on a grid.... the upper right quadrant are the issues are the issues of critical importance to your organization. LIKELIHOOD - how likely is it that this issue will play out to the company's disadvantage. MAGNITUDE - If it does play out to company's disadvantage, how significant could that harm be? Probability that event/issue will cause harm.

Distribution chain

Various companies involved in moving a product from its manufacturer to its buyer. Also known as channels of distribution, or just "channels.".

Materiality

What information must be disclosed. An item is material if there is a "substantial likelihood that a reasonable investor would consider it important" in making an investment decision. - This definition is easy to state, but exceptionally nuanced in its day-to-day practice. - SEC has refused to provide a definition of materiality, instead making each company determine to its specific facts in hand. - No "bright line." - No "rule of thumb." - All business information in a public company, by definition, is either material or not material. - Corporate communications, marketing and advertising staffs always must be aware of this rule, because how one must handle material information is very different from how one may handle non-material information. - Material information - strict set of rules and procedures on its release to the public. - Non-material information - much greater range of freedom from legal restrictions on its use and release. - The decision on whether information is material or not is a legal decision, so best done by a corporation's legal staff. - But corporate communications, marketing and advertising staffs must be aware, in order to know when to ask the question.

Securities analysts

When making investment decisions, investors frequently depend on the advice of specialized investment professionals known as securities analysts. Analysts are experts in specific industries, market sectors, or trends. These analysts help investors to make informed investment decisions and typically advise investors through their research reports.

Disclosure

Whether and when information must be disclosed. Definition 1) = the release by a company of information, positive or negative, that might have a bearing on an investment decision. Definition 2) = the distribution of information, positive and negative, by a company, voluntarily, or to be in compliance with laws and regulations. 1. Corporate disclosure may be divided into 2 categories: a. Formal disclosure- highly structured, reviewed by the SEC after filing, and generally done via formal filings - "forms". - Form 10-K - filed once a year by public companies after the end of its fiscal year. It is a comprehensive view of the company's business. - Form 10-Q - filed three times a year by public companies after the end its first, second and third fiscal quarters. - Form 8-K - filed by public companies at any time, on an 'as needed' basis, that is, any time the company wants to make official its disclosure of material information. b. Informal disclosure- Unstructured corporate disclosure disseminated to investors and potential investor through various channels. - Includes press releases, speeches, conference calls, some types of advertising, and road shows. - Informal disclosure is not generally not filed with nor reviewed with the SEC. IMPORTANT: If a company does not speak and has no specific duty to speak (through the process of formal disclosure), Federal securities law permits management to keep business information confidential - no matter how material. Mere possession of material non-public information does not create a duty to disclose it. Federal securities law does not require a company to volunteer information simply because investors would consider it significant.