Public Relations and Corporate Communications, The Real World by Sameer on 14.08.2013

"Read the 'Economic Times', at least, it is like the 'Delhi Times' on economic issues but still..."

Public Relations is a two way street unlike advertising, wherein advertising is akin to a one way street. This is an important aspect to learn when it comes to 'Stake Holder Management and Communication'. Shareholders are stakeholders and the converse is not always true for; 

• Shareholders own a part of a company through stock ownership. 

• Stakeholders are individuals and groups with a multitude of interests, expectations and demands as to what business should provide to society. A person, group or organisations or a system which affects or can be affected by a company or a projects action. Someone with the power to help or hinder your plan. 

Corporate Communication is a management function that offers a framework for the effective co-ordinatination of all internal and external communication with overall purpose of establishing and maintaining favourable reputation with stakeholder groups upon which the organisation is dependant. 

The Problems 

• Globalisation of businesses and markets

• De-regularisation of businesses and markets on a global 

• Explosion of IT

• Rise of environmentalism and other social values as relevant to business

• De-stabilisation of the management and leadership in business                                                                                    

--> Changes in primary relationships with customers, suppliers, employees, communities and financiers. 

--> Changes in secondary relationship with governments, NGO, critics, media etc                                                                                                                                                        --> Managerial Capitalism with shareholders that has outlived its usefulness.    

* In turbulent times we have to address stakeholders, values, ethics

*The most important questions that businesses can ask today are:

• --> What do we stand for ?
• --> What is our purpose ? 
• --> What are our key values ?
• --> Who has stake in what we do ?   

                                                                                                                                                   

* Business is all about creating value for stakeholders. 

* The only task of the executive is to create as much value for stakeholders as possible.

* Suppliers, customers, employers, financiers and communities determine the ultimate success of a company

*Great companies create win-win relationships Stakeholders that endure over time.                   

An interest or a share in an undertaking can be categorised as 

• An Interest 

• A right  

                    --> Moral right

                    --> Legal right

• Ownership