Public relation case campaigns (COM 235)

chapter 5 notes: A CLASSIC: ON WALL STREET, INSIDE INFORMATION IS PROFITABLE

- In tackling the world of investor relations, practitioners are faced with a different class of information and communication obstacles, which require a new school of public relations that is specific to investor relations. Like those outside the financial arena, stockholders and investors need effective and open communication in order to operate successfully, and consequently, they have a need for public relations practitioners.

answer the following questions when developing each individual objective:

- Is this objective linked to the organization's mission or vision statement? - Is this objective responsive to the issue/problem/opportunity/goal? - Is this objective focused on a particular public? - Is this objective clearly measurable? - Does this objective indicate a time frame? - Is this objective challenging to the organization? - Is this objective realistically attainable?

How is Public Opinion Formed?

- Latent, mass sentiment = no - Incident/Issue = activates sentiment - Public are Pro or Con--Mass sentiment comes out - Debate - Time between debate and formation of public opinion - Public Opinion comes out - Social Action - Mass sentiment--outward and obvious

How to find the perfect client or how they can find you:

- News Stories - Community Groups - Social Networking - Clubs, Sororities, Fraternities - National Organizations - Small Businesses - Human Rights Groups - Celebrities

Six Functions of PR

- Research--where are we? - Counseling--where do we want to go? - Strategic Thinking--what will get us there? - Strategic Planning--how will we get there? - Communication--how will they know? - Evaluation--did we get there?

The struggle for nuclear power

Certain issues demonstrate a conflict of public relations activities. A good example is the controversy surrounding nuclear power. There is little room for compromise in such issues. Proponents of nuclear power consider its expansion essential to industrial growth and to the continued prosperity of the nation. Opponents feel the risk of nuclear accidents greatly outweighs any benefits that nuclear power might provide. The case, "The Struggle for Nuclear Power," is not a case which leads to an easy "win-win" solution among its partisans. Rather, it is a case in which combatants seek to enlist the support of those who have not taken sides on the issue or who see their own role as neutral referees, such as the governmental officials or units which either regulate nuclear energy or which must give approval to evacuation plans or other essential elements in a nuclear power plant's operation.

6 Question 7 (10 points) ) Listen ~ Saved The specific nature of PR consultancy illustrates that, in addition to communicating, ____________ is a fundamental skill that all good PR practitioners must possess.

Counseling

financial relations

Financial relations practitioners have the difficult task of mediating between all the publics that may have an interest in the financial success or failure of an organization. Practitioners have, as prime audiences, millions of small investors who do not control the market, as well as leaders of publicly owned corporations who can make decisions that are short-term expedients or long-haul and public interest based. These choices can be helpful or harmful to the rest of the corporation and its success. Other audiences, that play important parts in a financial practitioner's efforts include regulators, media, economists and legislators. - The typical corporate financial relations specialist appears as moderate or neutral in economic and political philosophy. The position requires skill and objectivity in representing both the average investor and the middle-class citizen, while at the same time representing private enterprise and their views publicly.

Traditional consumer relations

For many years, marketing was a popular way of attracting people (and their dollars) to everything from hospitals to universities to churches. While this re-established a key point of public relations philosophy, it sometimes pushed public relations departments into a secondary role versus marketing. As public relations practitioners and professors know, there is much debate over whether public relations is a part of marketing or vice versa, or whether they are both essential strategic services and thus, equal factors.

Generally, employees care about ______________ above all other aspects of their employer.

Future plans

Consumer relations today

Recently, the functions of public relations and marketing have come close together as demonstrated by the dominant customer relations strategy, relationship marketing. Today we know that customers want to be served, not sold, and relationship marketing incorporates public relations principles like personalized, one-on-one dialogue with the marketing of products and services. Integrated Marketing Communication (IMC) further strengthens PR's role.

What are the three types of objectives that well-rounded PR plans should include?

awareness, acceptance, & action objectives

when people are involved in the __________, they're more likely to be receptive to accepting tough decisions.

decison-making process

example of a well-constructed objective

• Increase first-year students' knowledge about housing restrictions by 10 percent by spring 2014. - This type of awareness objective would be appropriate for a college experiencing dorm violations, which, in turn, was affecting its image a "party school".

counsel and education

• Sometimes clients can feel confrontational with the PR team because often you're giving them information, they may not like...such as their poor management, poor customer service, poor product, etc. It's important to remind them that you're hired, by them, to help them...this is a process: identify the problems and come up with solutions to fix them.

team leaders

• You want to set the tone about how you'll communicate with a client • Designate team leaders and determine how clients want to communicate, i.e. phone, email, etc. • It's better to have one or two people acting as the lines of communication than the 15-20 who may also be working on the client's project.

Originally, PR's Role Was to Make People:

• aware of the product or service in the first place. • knowledgeable about the benefits and advantages of the particular product or service. • constantly reminded and reinforced in favorable feelings toward the product or service.

The Case Study Common Denominators

- Concerned with social norms, groupthink, and individual behavior. - Clear use of strategy and planning - Consistent behavior reflecting the organization's "personality". - Persuade, not coerce - Ethical and legal considerations - A way to record Return on Investment - Use of the evaluative findings

Are you meetingprofessional standards:professional standards

- Using a body of knowledge of - Using insights into human into human behavior and public opinion. - Using social science tools effectively and efficiently. - Using a code of ethics as a guide. - Providing service to society.

client relationship guidelines

1. Set the tone at the beginning--identify method/time of communicating. 2. Make certain there is a second contact in the event of emergencies. 3. Limit the number of people contacting your client. 4. Be assertive. 5. Be professional and honest. 6. Know your place and be respectful. 7. Stand your ground. If there are challenges, communicate with clients and work on how to improve the relationships. 8. Don't be afraid to contact superiors for help...sometimes clients will listen to them more - even if they're saying the same thing as you. 9. Be proud of your work. 10. Maintain a good relationship with the client, even after the project is done.

what are the three behaviors an organization seeks through public relations investments?

1. getting people to do something, 2. getting people to refrain from doing something, or 3. convincing people to let the organization do something it seeks to do.

five-step Behavior Model

A theory applied to public relations includes the first model, the so-called Behavioral Model. This approach is predicated on the belief that public relations is all about creating positive behavior. Communication, alone, will not (and cannot) create the desired result of changed behaviors. The five-step Behavior Model includes these steps: A. Awareness B. Latent desire to act. C. Social Trial D. Triggering events, and E. Positive actions or behavior

Community relations is most effective for public relations initiatives because it shows what an organization stands for regarding ___________

Actions

Dayton Hudson was able to use its employees as vocal _________, which helped the entire company spread its point of view concerning the takeover attempt.

Allies

Possibly the most-important publication that any company produces, _________ and the responsibility of financial public relations practitioners.

Annual reports

what are the five steps of the behavior model of communication

Awareness, Latent desire to act, social trial, triggering events, positive actions or behavior.

Which specific group of community members should you focus your energies on when trying to persuade the whole community to trust your organization, especially when issues deal with controversial subjects like pollution and nuclear power?

Community members who haven't formed an opinion about you yet.

As a public relations representative you've just received a call from a local reporter about a reported shooting within your company's headquarters. What is the first thing you must do before commenting?

Confirm the facts of the shooting

These two poineers of public relations are credited with creating the "four-step process" of public relations.

Cutlip and Center

The three levels of Strategic Community Relations includes Proactive, Maintenance, and ____________

Defensive

working with clients

Effectiveness & Efficiency = Positive Results for Them and You.

Why would a company consider non-investors when considering takeover bids?

Either It creates a bidding war. OR It shows the company is responsible.

_____________ only way to address problems created by falling stock prices, dwindling market share and layoffs, as illustrated in the Kodak case.

Face-to-face communication

The main mantra to remember when dealing with any community relations work is to think ________ and act __________

Global, local

What are "Arm's Length" PR initiatives also known as?

Good corporate citizenship

In addition to the media and economists, who must financial public relations practitioners also communicate with?

Government regulators

What does the Persuasion Model explain regarding public relations?

How people change their minds and their actions

What is the first step when developing positive client relations?

Identifying methods and times of communication

What was the main cause of W. R. Grace's poor handling of the release of A Civil Action?

It didn't research the movie

Even though it may seem logical, what's the biggest problem with giving employees only good news about their organization?

It facilitates mistrust between employees and management.

3. The new Minnesota law allowed corporate managements to take the effect on stakeholders as well as stockholders into account when deciding whether to accept a takeover bid. Without this provision, managements are apt to consider only whether the deal is good for shareholders. Is it fair and sound social policy for employees, customers, communities, local governments and other stakeholders to be considered when they have purchased no stock? What investment do they have? Why should they be considered?

It is not only fair and sound social policy to consider the needs of stakeholders in company management decisions; it is a necessity in the business world of today. Only in the recent past has big business come to realize the importance and effect of all of its stakeholders in its ability to do business and do it well. It is imperative to attend to relationships with all touched by the organization doing business because they could have an effect on the outcome. These stakeholders have an investment in the success or failure of an organization because it affects the local economy by providing jobs. In addition, other revenue brought into the community by the organization will be taken into account by stakeholders.

What was the No. 1 problem facing Kodak during the early 1990s?

It produced outdated products

1. In its various subsidiaries that operate stores across the country, Dayton Hudson had 168,000 employees. Why was it important to keep them informed of the Minnesota legislative effort? How would you have done it?

It was important to keep all employees informed across the country because those out-of-state employees, as well as Minnesota-based employees, had a stake in the outcome of this legislative effort. If the takeover had been successful, the organization would most likely have changed dramatically in culture and operating style when the Dart Group Corporation took over. By keeping all involved up to date with the events as they unfolded, Dayton Hudson was making champions and supporters of its employees all across the country. They felt involved in the situation because the company had clued them in from the beginning. This served to create more of an atmosphere of unity and cohesiveness in the organization.

What is wrong with the following objective: Increase employee involvement in community relations efforts by 25 percent.

It's missing a time frame

The groups (employees, media, etc.) that Dayton Hudson enlisted to help keep the takeover from happening were all in an attempt to influence the _______, which was the most-important entity in stopping the Dart Group Corporation's planned takeover.

Legislature

Commonalities with marketing

Marketing and public relations share some fundamental concepts, including analyzing market opportunities (research), selecting target markets (publics), developing a marketing mix (communication and action plan) and managing the marketing effort (evaluation).

Even though financial relations professionals may work for a company, they must always be ______________ when dealing with communications between their company and shareholders.

Neutral

Effectiveness + Efficiency= _________

Positive results

For line supervisors to become truly effective communicators, they must first be trained in communication and then must ___________ their training.

Practice

The Southwest Airlines case illustrates that employee satisfaction often leads to __________

Profits

For objectives to be doable/attainable, they must first be

Realistic

What is a general term that describes fact-finding activities?

Research

Oftentimes the downsized employees are the ones communications efforts are focused. However, the remaining employees need attention as well because often they display signs of _____________ which can be especially damaging to employee morale.

Survivors guilt

Question 8 (10 points) v Saved ) Listen To help guard against client misunderstandings/confusion due to poor communication, _______________ should be limited.

Team leaders

The differences explained

Technically, both marketing and public relations support the sales function. The difference is that marketing concentrates on selling, while public relations incorporates building relationships with all stakeholders, including supporting sales to customers.

This government organization regulates most financial public relations practitioners' responsibilities.

The Security Exchange Commission

2. Apart from the TGS case, try a different situation. Suppose that a weekly financial magazine column "Tips and Rumors" regularly got into some people's hands a day before each issue of the magazine came out, and some of the stocks mentioned were suddenly traded heavily and run up in price. Suppose, also, it turned out that a clerical person in the magazine's public relations department privately had been giving an advance rough draft of the column as a favor to a friend at a brokerage firm. Neither the clerk nor the friend at a brokerage firm traded or made any profit. As you understand SEC's rule 10-b, who is legally liable? Put another way, where does common sense tell you the responsibility for the privacy of material facts belongs?

The SEC's rule 10-b states that a person may not omit to state a material fact that would have the effect of misleading in connection with the purchase or sale of any security. With that in mind, it is important to note that: - neither the clerk at the magazine nor the friend at the brokerage firm traded or made any profit. - in consideration of the facts presented in this scenario, neither the clerk nor the friend had a responsibility to disclose (or withhold) the information in the financial column, as they had no ownership of the information. There are many elements of this case that are not known. It is impossible to know whether or not the clerk or the friend at the brokerage firm were passing the information on to individuals who were using the information to trade and/or make a profit. In that situation, they would be guilty of possessing (and disclosing) insider information that was used for private gain by other people. Additionally, it is not stated where the "Tips and Rumors" for the column come from. Unless that information was public knowledge prior to being printed, the publishers of the column could be in violation of Rule 10-b for disclosing information that could have an effect on the value of a security. This particular situation contains variables that make it difficult to state who is legally liable. Generally speaking, however, the responsibility for releasing information in a timely manner, also protecting it from use by an insider or third part, would lie with the financial column publishers. Common sense tells us that if you have something that you do not want others to have, you must keep an eye on it. As the "owners" of the information that is printed in their column, the publishers would need (and want) to take precautions to ensure that their material was not appropriated by someone else.

investor relations: what is it?

The arena of investor relations has had a relatively short history, only springing up as an important factor in a corporation's communications in the 1960s. In concept, a publicly owned corporation is based on an ideal of consensus, where shareholders, employees, community neighbors, suppliers and customers all have a voice in its operations. Unfortunately, it is not possible for all who have a stake in the outcome of an enterprise to take an active part in the decision processes of that business entity. Many of the decisions are made by management or board members who run the company.

1. What responsibilities does a business have to the community, if any?

The company should be aware of what it provides a community - taxes, employment, local purchases and volunteer resources. In the case of Seabrook Station, it also supplies electric power. The principal role of community members to Seabrook Station is that of customer. Itis part of the business community, and it should do everything in its power to strengthen mutual dependence within that community. It should create an atmosphere of mutual understanding and respect with all elements of the community.

Who should you designate as the first line of communication if you want to instill positive employee communications?

The employees immediate supervisor

according to the text, what is the role of a financial relations practitioner?

The financial relations practitioner needs to focus his/her energy: 1. Developing a communications strategy that is appropriate to management goals in investor relations. 2. Preparing public literature such as reports required by law and establishing press contacts. 3. Managing relationships with the financial community, including analyst meetings, tours or visits, etc.

Who is legally responsible for insider-trading information leaks?

The owner of the information

In addition to government agencies, companies like Seabrook Station must also monitor __________ groups, like The Nature Conservancy or Greenpeace, especially when maintaining a "global" community reputation is the No. 1 goal.

Watchdog

when developing objectives in a PR plan consider:

Writing at least one awareness objective for each key public: "To have an effect on awareness, specifically... Writing at least one acceptance objective for each key public: "To have an effect on acceptance, specifically... Writing at least one action objective foreach key public: "To have an effect on action, specifically...

public opinion starts with ______ and finishes with ______

an incident, social action

Public relations practitioners must engage in six activities including research, strategic planning, counseling, internal education, communication/action, and ________

evaluation

Persuasion Model

explains the steps necessary to get people to change their minds and actions. A. Creating dissatisfaction with existing, undesired behavior. B. Offering the desired behavior as a substitute for the status quo. C. Explaining the benefits of new behavior or the consequences of the old. D. Modeling the desired results.

Three common denominators of case studies involve social norms, group think, and _______

individual behavior

the "nuts and bolts" of a PR plan are know as _________

tactics

community relations definition

the definition and role of community relations has changed and expanded over the years. It is more than just a company's donation to the art council or sponsoring the neighborhood little league teams. Community relations efforts should be focused, strategic and most importantly, effective.

what does the counseling function of public relations answer

where do we want to go?

from one of the pioneers of PR on the subject:

• "The public relations consultant is ideally a constructive force in the community. The results of his work are often accelerated in matters of value and importance to the social, economic, or political life of the community." -Edward Bernays, Crystallizing Public Opinion,1923 (note the date when considering the use of "his" in the quote...female professionals often dominate the field today.)

The following process is the backbone of public relations practice in that it covers the basic steps needed for any planned program of public relations to be successful.

A. Fact-finding activities (research) B. Analysis, planning and goalsetting. C. Actions and communication D. Evaluation These overlapping steps give practitioners a framework for their efforts as well as a checklist to follow.

The Essentials of PR

- Self-interest: it's what most people worry about most - Personal communication is best - Mastery of subject - Message of action or appeal - Participation in the decision-making process makes people more receptive to process makes people more receptive to tough decisions. - Personality needs and identification: there's no "one size fits all" method - Keep your messages clear and simple - Explicit and clear messages - Influence of major events on your messages - Self-imposed censorship - Follow-up events reinforce opinion - Focus of goal-oriented messages - Including both sides - People resist change - People remember what they heard last - People believe what they want - Leadership awareness is affected by bad times- most people are critical of their leaders when things aren't going well

The Basic Elements of a Plan Begin byAnswering the Following:

- Situation: Does the client have to overcome a problem or situation? Are you helping them with just one projector event? Do they need to reinforce their reputation, or do they need public support? - Objectives: What is realistic to achieve? Is the objective informational or motivational? That is, are you trying to get someone to understand something or do something, or both? - Audience: Is there a specific audience? Can you broaden that audience? Is there a global audience? How can you take it one step beyond the obvious? - Strategy: The "broad statement "describing how you will achieve the objectives. The strategy provides the guidelines and key message themes for the overall program. - Tactics: The "nuts-and-bolts" of your plan. Ask yourself, "What activities will I plan to reach my goal?" - Calendar-Timeline/Gantt Chart: How long will it take to perform your tactics? What will you leave the organization/client with after you're finished. Is there a timetable to help them down the road? - Budget: Do you have one? Does your client have a small budget for you? What do you have to work with? - Evaluation: Were you successful? Did you reach your audience(s)? Did you get the media's attention? Did you connect with others via social networking? Was your event a success?

these are two types or levels of programming

1. Arm's length "good corporate citizen" activities like membership networks, speakers' bureaus, available facilities, open houses, programs around holidays, service on boards of directors, participation in public events, etc. 2. Becoming part of the fabric of the community. This involves ambassador or constituency relations programs, opinion leader work, advisory boards, employee volunteer programs, community research, social projects, etc. While both types have their advantages, it is generally considered good practice to use a combination of the two. community relations can be used as the core of public relations programming because it sets the tone of what the organization stands for in actions. How organizations conduct themselves in the communities where they do business can be driven by the following factors: 1.Instant Communication encompassing burgeoning information networks that go far beyond news media data gathering. It can capture and transmit home behavior far and wide. 2. Global Competition/The Global Village have created interest in such information, at least by competitors, activist agencies and others who have reason to broadcast it. There are three strategic levels that need to be planned and blended together for an effective program: 1.Defensive: guarding against negative acts or acts of mission 2.Proactive: being a leader in positive acts that appeal to key publics 3.Maintenance: finding ways to retain relationships with publics not currently key, but still able to influence your reputation by forthright expression of their perceptions of you

five basic principles of Employee-Employee Communcations

1. Employees must be told first. They must not learn significant news of the organization from the news media or via the grapevine. 2. Tell the bad news along with the good. Employees are just like any other public. If they hear only "good" news from a source, they will recognize that the source has no credibility. If an organization tries to keep a lid on bad news, it will never build a trusting relationship with its employees. 3. Timeliness. Lawyers sometimes are tempted to treat information as property. They will only turn it loose when it is at its highest value to the organization, or just before it becomes worthless (because someone else will reveal it anyway). Public relations practitioners hold a journalistic sense of news: the quicker it reaches an audience which seeks it, the more value that audience will attach to the source of that news. 4. Employees must be informed on subjects they consider important. Years of studying employees' views of communication within their organizations reveal that employees consistently rank organizational plans for the future above all other topics of interest about their employer. 5. Use the media that employees trust. Studies show that the top five sources from which workers want to receive information are: immediate supervisor, small group meetings, top executives, large group meetings and employee handbooks.

However, PR Does Four Things That Marketing Cannot Do

1. Public relations is concerned about internal relations and publics. 2. Public relations cares about non-customer external publics and the environment in which the organization operates. 3. Public relations operates on the policies of human nature, while marketing focuses on consumer behavior. 4. Public relations may work to stabilize or change public opinion in areas other than products.

where should financial relations practitioners focus their energy?

1.Developing a communications strategy that is appropriate to management goals in investor relations. 2.Preparing public literature such reports required by law and establishing press contacts. 3.Managing relationships with the financial community, including analyst meetings, tours or visits, etc.

2. Should a business that produces a controversial product or service have obligations that surpass legal and regulatory mandates? Why or why not? Does your answer depend on whether the product (or promotion of the product) is potentially hazardous or lethal to our environment or humans?

Any business that produces a product as controversial as nuclear energy will find a tight web of legal and regulatory mandates encompassing its activity. Law and regulations deal with rational phenomena, but a greater hazard is likely to be emotion. A nuclear plant must be prepared for emotional public outrage. Public relations professionals face a special challenge. when they encounter situations that are perceived to be a threat to the environment or to worker or customer safety. Their obligations to the public are likely to surpass legal and regulatory mandates. Organizations in such situations must recognize that perceived dangers may be more meaningful to the public than actual dangers. Legal and regulatory mandates may be resolved by scientific data, but public fears require demonstrations of openness, honesty and good intentions. (See case 4.1) Public relations professionals must be prepared to interpret environmental concerns to industrial executives, to counsel these executives on the public relations effects of their proposed policies or actions, to communicate industry's public safety accomplishments and to convey industry's responses to criticism. On the other side of the issue, public relations professionals of environmental, worker safety or consumer groups will be alert to counter any actions or public statements by the industry which seems to pose a threat to public safety. These responsibilities are heightened if a plant operation or products is potentially lethal to the environment or humankind. Public relations professionals must go out of their way to demonstrate openness, concern for safety, strict adherence to all regulations and operating policies relating to safety and an openness to public scrutiny. Groups promoting public safety can gain adherents in that they can demonstrate that an organization which poses nine potentially lethal threats to society does not give recognition to opposing groups, a hearing to their concerns and consideration to their advocates. At the same time, these groups cannot be so partisan that critics can point to their own failure to give recognition, hearing or consideration to the goodwill efforts of the industries they are opposing.

2. Dart Group Corporation had been the subject of unflattering news reports about its operations and reputation. Generally, the raider was depicted as profit-hungry and a haggler with its suppliers. How might this depiction have affected various publics in the DHC takeover attempt? How might it have affected other DHC stockholders? Legislators? Editors and reporters? Employees? Management? Communities in which the company operates? What motivations in each group would Dart's reputation have stimulated?

Dart's reputation had obviously affected the way in which various publics dealt with the situation and how they strategized to deal with Dart. In each group the reputation may have had a different effect on: Stockholders: may have been wary of this type of organization taking over; fear of loss of profits or increase of profits; not keeping the DHC culture or earning potential. Those willing to sell would not care. Legislators: may have been concerned with an organization of this type coming into the state and upsetting the economic balance; fear of job loss and economic impact. Editors and Reporters: could have positioned stories to further this negative reputation and present Dart as a foe to the state of Minnesota. Employees: rallied them to direct action to fight against this corporate bully threatening their employer; job loss. Management: influenced the way in which they reacted to this threat, put them more on guard and defensive. Communities in which Dayton Hudson operates: Negative reputation reportage may have little effect, those who are aware would want to rally for an organization that supports their community; ownership and sense of value to community.

Case 5-4A CLASSIC: ESTABLISHED RELATIONSHIPS SAVE A LANDMARK COMPANY

Dayton Hudson, which changed its name to Target Corporation in 2000, is an immense retailer headquartered in Minneapolis, Minnesota. In the mid-1980s it faced a hostile takeover threat and an uncertain future. This case exemplifies the steps that public relations strategies and tactics can take to implement legislative change, as Dayton Hudson did to shield themselves from a rumored hostile takeover attempt by Dart Group Corporation. Dayton Hudson's public relations department utilized research in order to discern the reaction of stakeholders to this organizational threat. It then used those findings to leverage its importance in the economic stability of that state and to enact legislative change to shield it and other companies from unwanted takeover attempts.

1. Drawing on the information in the case, and having the benefit of knowing how it all came out, what should the public relations executive have counseled TGS officers to do differently, or to communicate publicly, at some point before TGS executives were found to be trading in the stock?

Ethically, there is really only one option for the public relations executive in this case: advise the TGS officers to go public with their information, once the material facts are established. According to the interpretation of the Code as it applies to financial public relations, all members must adhere to the general policy of making full and timely disclosure of corporate information on behalf of clients or employers. Under this regulation, the public relations executive would have no choice but to counsel TGS officers to make all information available to the public. In addition, the financial public relations interpretation of the code requires members to act promptly to correct false or misleading information or rumors concerning clients' or employers' securities or business. If the situation had already reached the point where rumors about the Kidd 55 tract were circulating, or if information had already been released by TGS, it would have been the responsibility and priority of the public relations executive to assure that an informative and accurate statement be issued to the public as soon as possible. As difficult and unpopular a decision as it would be, the primary role for a public relations practitioner in this situation would be to provide the investing public with material information. To steer classroom discussion of this case in a different direction, what would the consequences be for a public relations executive in this case if they decided not to act incompliance with the Code and the law?

What is the final, and most-often overlooked, step in the PR process?

Evaluation

Among the many issues facing Seabrook Station's community relations efforts, what was the No. 1 issue causing poor community relations? Hint: This was the most-important aspect that Seabrook Station should have addressed first.

Fear of nuclear power

W.R. Grace's mishandling of the release of A Civil Action reminds PR practitioners of the importance of ____________, which is the terminology for the cardinal rule of starting PR initiatives from within the organization first.

Inside-out

The basic offense that TGS perpetrated was __________, which is when companies knowingly falsify or obscure information for their own financial benefit.

Insider trading

Because of __________, PR professionals must realize that residents of even the smallest and most-remote areas can transmit their grievances about a company to the world, without needing traditional media outlets to do so.

Instant communication

4. Develop some strategies that could strengthen the messages or effectiveness of the remaining opposition.

Once a nuclear plant is in place and is functioning, the role of the opposition becomes more difficult. If all goes well, the public and governmental regulators are likely to leave well enough alone. Therefore, the role of any opposition group concerned about Seabrook's operation is to monitor the operation closely. If there is any hint that the plant is not maintaining proper safety procedures, or if governmental regulatory agencies are lax in their supervision of its operation, the opposition group has a wedge with which to threaten its continued operation. As indicated in the case analysis, SAPL and C-10 are independently monitoring the levels of background radiation in the area around Seabrook Station. If there is no enhanced threat of radiation, the groups' options are rather limited. However, if radiation should increase, or if Seabrook's management should take some action which appears to pose a threat to public safety, the groups should immediately spring into life. At this point they should seek to enlist the support of the nationwide anti-nuclear community as well as residents. Activists should seek to get the national media involved, since local media are less likely to challenge a local industry.

3. Seabrook offers an informational phone line for communities and employees to call whenever questions or concerns arise. This phone line accommodates the local towns surrounding Seabrook Station. Do you think this phone line would be more effective if it were a national 800 number, thus making it available to all U.S. residents? Why or why not?

The Seabrook communications staff identified employees, Massachusetts and New Hampshire residents, local and national media and the financial community as prime publics. Not all of the plant's employees live within the region served by a local telephone number. Only a small fraction of Seabrook's other key publics are served by a local telephone number. There's a strong likelihood that situations will arise when employees, community publics, the media and the financial community will all want information from Seabrook at the same time. Therefore, it is not desirable for all of them to be served by the same phone lines. A better form of communication would be to have three separate 800 numbers, one serving employees and residents outside the local calling zone, one serving the news media and one serving the financial community. Each of these three groups is likely to require a different response from Seabrook's information system. An up-to-date website is a must.

Financial public relations practitioners must balance their efforts for the benefit of __________ and _________

The company, investors

6. How might Seabrook Station's community relations efforts be different if itwas trying to win favor today as opposed to early 1990s?

The economic implications of having a large power plant opening in what are often rural areas would allow Seabrook the opportunity to focus on "economic-related" support for the community. Such a plant would offer many, steady jobs in a marketplace where people are either unemployed or underemployed. Also, the current energy crisis coupled with the dependance on foreign oil from countries with less-than-perfect relationships with the United States also affords Seabrook the option to highlight the development of "American-made" energy here in New Hampshire. Lastly, the proliferation of social media and instant communications tools allows the company to communicate directly with its key stakeholders in the community without having its messages filtered by the mainstream media, thus allowing for greater control of those messages.

5. In many organizations the role of financial relations has beengiven to legal counsel. How can this help an organization's financialcommunications? What are the downsides of using legal counsel toaccomplish the task of financial communications?

The legal counsel may well know more about the content of the laws, their meanings, and their affects on the organization from a number of legal viewpoints; however, it may not be the best at communicating it effectively. Public relations practitioners understand how to communicate, what to communicate, who to communicate with, and when to communicate, so they are much better at financial communications. All things considered then, it may well be most beneficial to use the legal counsel's knowledge, but using the public relations department to communicate that knowledge in a way so constituent publics can understand it.

4. A reputation for being honest in economic matters, civil in social relations and honorable in character has long been said to be a precious and fragile possession. And the reputation of communications people is generally perceived by critics and supporters alike as being a reflection of those they serve and associate with. If we accept both premises, how can we stay clean and honorable, earn a good living and advance in a career when we are cast in an atmosphere that many moralists, historians, intellectuals, journalists and some government officials describe as a "moral morass"?

The principle behind professional ethics is that one's actions are designed to create the greatest good for both the client and community as a whole, rather than to enhance the position and power of the practitioner. With this in mind, the public relations professionals must, at all times, ensure that their actions are ethically (and professionally) correct. While itis difficult to stay "clean and honorable" in an environment that is morally lacking at times, the PRSA Member Code of Ethics gives us a guide for what is acceptable, and reminds us of our moral obligation to society, above anything else If, indeed, public relations falls into that "moral morass" atmosphere, the challenge of maintaining ethical standards of practice is even greater. By applying the Golden Rule of "do unto others as you would have done unto you," the public relations practitioner could set an example by exhibiting morally and ethically prudent business behavior. The only way to shake a negative stigma is to practice positive behavior, and if public relations practitioners set the trend, it is likely that other professions would follow. It is important to note that the pendulum is now beginning to swing the other way. Where business practices once involved a general disregard for the common good when it interfered with private gain, that is not the rule anymore. Corporations and individuals alike are discovering a need for social consciousness and responsibility, and that need is well served by ethical and honorable actions. Public relations could take a leading position in this movement, thus serving the community and simultaneously disproving the notion of the "moral morass."

5. Develop some proactive and reactive strategies that Seabrook will need when decommissioning the plant, disposing of the spent fuel rods, and if the radiological emission risk correlations show that the plant has become dangerous

The question creates two scenarios. First, what should be done when the plant is decommissioned, and its spent fuel rods must be disposed of? Second, what should be done if radiological emission risk correlations show that the plant has become dangerous? The first question centers around whether or not off-site facilities are available for spent fuel rods. In such a case, transportation of the spent fuel rods safely to the disposal site will be the issue in question. This will require protective containers for the fuel rods, a route to the disposal site which avoids high risk travel, cautionary measures which anticipate all possible forms of accident enroute and means of encountering staged opposition at the disposal site. On the other hand, if the spent fuel rods are to be stored on-site, then evidence must be green that on-site storage poses no threat to the environment. From that point on, the spent fuel rods become an additional reason for continuous monitoring of background radiation near the nuclear plant. The second question deals with high radiological emission risk correlations while the plant is in operation. In this instance, Seabrook should shut down the plant, identify the problem and not resume operation until the problem is solved. Resumed operations should begin with ample public notification, and should be phased in with the same cautionary procedures as the plant's initial operation.

Although the legal department may not agree, disseminating ______________ information is best way to stop company rumors from starting.

Timely

3. Objectively, was the initial TGS news release about the ore strike at Timmins misleading based on what was known at the time the news was released? Or did it go only as far as a cautious, prudent management was willing to go for fear of overstating and getting in trouble for that? Or, what else does your objective evaluation say might have been the determining consideration?

While it is certainly not a crime to be cautious and prudent, there is a difference between being cautious and being deceitful. In the initial news release, TGS did not reveal all of the information available, and the statement that was made was extremely vague and noncommittal. At the time of that statement, in April 1964, TGS declared that the drilling was insufficient and inconclusive, and indicated that discussing the issue more specifically at that time would be "premature and possibly misleading." In actuality, the TGS group had concluded four months earlier that the drilling was promising, and group members had started to purchase large shares in TGS at that time, hardly the kind of activity one would expect in regard to an inconclusive project. It is no longer enough for a corporation to communicate honestly. Transparent communication being entirely open and showing all your evidence, is becoming the communication policy to use. With concern for corporate accountability, TGS could have avoided getting in trouble for overstating by using transparent communication. By simply reporting the facts, including a statement about how inconclusive the information was, TGS could have prevented rumors and speculation, and gained public respect for their complete and immediate honesty. By choosing to selectively disclose information after a rather untimely four months of silence, TGS was not only misleading, but also unscrupulous.

What is the first element to a PR plan that must be identified?

the situation

community relations

think global, act local

inevitable difficult decisions

•It is a common view at present to look upon employees as a cost of doing business. • Downsizing is seen in financial circles as a method of improving the productivity and profitability of a firm. • Those losing their jobs during such downsizing are often seen as its victims, but also victimized are those employees who remain on the job. • They may not only experience "survivor's guilt," but they are also expected to continue in their own jobs while picking up the work of their departing colleagues. • Small wonder that the modern workforce has a weakened sense of loyalty to the employer. •At the same time, it is impossible for an organization to speak with One Clear Voice if management's pronouncements are not reinforced by its employees in their interactions with customers, friends and neighbors. • Example: Honda Motors found that an organization can be measured by "mindpower" in the same way that an automobile can be gauged by horsepower. If the CEO makes all decisions, that's one mindpower. If the whole organization participates in the decision-making, the organization can have 20,000 or more mindpower.