please write your case study (i.e., summary) focusing on reputation management or issues management.  this assignment required 1,000 words minimum, and it’s due on Feb 25 at 10 AM.

Look for a company that needs its reputation restored because of performance or behavior or the loss of its intrinsic identity. (NOT a company that is experiencing a reputation crisis!) Then apply the principles and processes outlined in the reputation chapter — to rebuild the reputation.  

Chapter 1
Reputation Management

Based on information from Doorley, J., & Garcia, H. F. (2015). Reputation management:

The key to successful public relations and corporate communications (3rd edn.).

New York: Routledge. © Taylor & Francis 2015

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Reputation
© Taylor & Francis 2015
Warren Buffett: “If you lose dollars for the firm by bad decisions I will be very understanding. If you lose reputation for the firm, I will be ruthless.”
Warren Buffett: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
Benjamin Franklin – Architect of American: It takes good deeds to build a good reputation, and only one to lose it.”
Many CEO and other leaders have echoed a similar mantra that “Reputation is our most important asset.” But why do so many of them let the asset be trashed? GM-Ignition switch defect;
An unmanaged asset will decline in value over time, inevitably moving to the liability column, and this is one reason for the decline in corporate reputation. – Corporations have risk and crisis management framework in place but few have a process in place to management the reputation asset.

Reputation
© Taylor & Francis 2015
Reputation is a corporate of substantial and measurable value. The view that it is an intangible asset is not a constructive perspective. (i.e., derived by inference; implied by operation of law; not obvious or explicit.
“constructive liability”
Companies with better reputations attract more and better employees, pay less for goods and services, accrue competitive advantages and can charge more for their own products (i.e., Apple). Settled – Reputation is a tangible asset.
World’s most admired companies http://fortune.com/worlds-most-admired-companies/

2015 Reputation Dividend Report – indicated that the reputations of the Standard and Poor’s (S&P) 500 companies accounted for higher percentage of the combined market cap of those companies.

http://www.reputationdividend.com/files/1514/3515/4447/US_2015_Reputation_Dividend_Report_-_Final

Reputation
© Taylor & Francis 2015
Reputation can be managed. Companies that have a process in place rank higher.
Some companies are undervalued on certain drivers of reputation (i.e., long term investment value or corporate social responsibility – addressed through targeted communication strategy. Other companies are overvalued on such drivers, which represents a performance or a behavior challenge.
To manage the components of reputation – performance, behavior, communication and intrinsic identity (what the organization stands for) is to manage the whole.
By Managing relationships with groups and individuals that have a stake in the company is to manage the sum of those relationships – something called reputation.
If in place GM – no problems
Conference Board – CEO – For driving enterprise growth & performance, reputation among their top five strategies.

Reputation
“The sum of the images the various constituencies have of an organization”—Charles Fombrun
Reputation = Sum of Images = Performance + Behavior + Communication
People – social capital (networking) helps them build relationships and careers, Corporations and other organizations develop reputational capital that helps them build relationships and grow their organizations.
© Taylor & Francis 2015

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An Equation for Reputation
© Taylor & Francis 2015

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Reputation

Behavior
+
Performance

Communication

Benefits of Reputation
© Taylor & Francis 2015

Image=stakeholders-customers, employees, consumer, feel good about a company – make it through good & bad times. Reputation adds value to a company. Market capitalization (# outstanding shares x price per share) is often greater than just the book value or liquidation value of assets. Market capitializaion/repuational capital – concept related to goodwill.
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Tangible

Intangible – Soft

Intangible – Soft
Historic view – Soft
Like all assets – a building or a product – reputation has its liability side.
You must measure, monitor, and establish a plan for managing both the reputation assets and vulnerabilities/ liabilities.
Most important thing is to have a plan.
“If you don’t know where you’re going, any road will take you there.”
© Taylor & Francis 2015

Reputation
Few companies take a rigorous, quantifiable approach to reputation management – measuring, monitoring and managing reputation assets and liabilities – (i.e. should be a part of asset management). W/O opportunities missed and problems become magnified.
Proactive behavior and communications consist of measurement, acknowledgement and planning – builds reputational capital. Formula – R=P+B+C – (individuals and organizations) – reputation is cumulative.
© Taylor & Francis 2015

Corporate Character
The Arthur W. Page Society – Corporate Communication Model
General Electric’s corporate character
Defining corporate character—advocacy at scale
Keys to success
Define your company’s corporate character
Engage internal stakeholders as authentic advocates
Determine how you communicate your corporate character externally and micro target your audiences
Activate the appropriate elements of engagement that reach your core audiences in an authentic way.
Remain open, transparent and true to your corporate character through all your communication.

© Taylor & Francis 2015

A company must define and know itself. Corporate Character must be at the center. – Unique purpose, beliefs, mission and values that are at the center. Page 8
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Intrinsic Identity
Definition
What the organization stands for, above all else
Examples
Johnson & Johnson
General Electric
Starbucks
Lehman Brothers 2008
Catholic Church 2002
The New York Times
© Taylor & Francis 2015

GE/Starbucks – True to dominant identity; develop & market consumer and technology products of the highest quality, best people. Starbucks proclaim the ideals of mutually beneficial and profitable relationships w employees and communities. CEO – quality product vs. sales dominant identity is sales quote – exists a prescription for disaster.
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Measuring Reputation:
Harris–Fombrun Reputation Quotient
Evaluates reputation among “multiple audiences,” according to twenty attributes
Grouped into what are referred to as “dimensions of reputation”
Products and services
Financial performance
Workplace environment
Social responsibility
Vision and leadership
Emotional appeal
© Taylor & Francis 2015

Can Reputation Be Managed?
Scholars – defined reputational capital as the difference, averaged over time, between market capitalization and the liquidation value of assets.
© Taylor & Francis 2015

Market Capitalization “refers the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share” – Liquidation value of assets “is the total worth of a company’s physical assets when it goes out of business or if it were to go out of business. Liquidation value is determined by assets such as the real estate, fixtures, equipment and inventory a company owns.
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“Intangible Asset”:
The Wrong Perspective
Many organizations view reputation as something “soft”
Reputation does have real, tangible value
Reputation has liabilities, too
Must have a plan for managing both assets and liabilities

© Taylor & Francis 2015

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Five Strategies for Reputation Building
Target key areas that really matter to your organization
Target the leaders but do not stop there
Identify the emerging players
Use your organizational resources
Always be the first to tell the “news” to your constituency—particularly if it is bad news
© Taylor & Francis 2015

Measuring Reputation Value
Simon Cole and Sandra Macleod
Data definition and capture
Economic analysis
Individual company outputs
Contribution
Risk profile
Leverage
Market behavior
© Taylor & Francis 2015

Comprehensive Reputation Management (CRM)
A long-term strategy for measuring, auditing, and managing an organization’s reputation as an asset – (applied to major areas of an organization – finance, HR, investor relations, manufacturing, marketing & pr.)
Comprehensive Reputation Management is to reputation what risk management is to other assets; brand management (marketing value of product/name); corporate identity (institutional advertising)
© Taylor & Francis 2015

Risk management is the process of identifying, quantifying, and managing the risks that an organization faces. As the outcomes of business activities are uncertain, they are said to have some element of risk.  These risks include strategic failures, operational failures, financial failures, market disruptions, environmental disasters, and regulatory violations. 
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Components of Comprehensive Reputation Management
Customized reputation template-measurement tool. Specific to each organization
Reputation audits of internal and external constituencies
Reputational capital goals
Accountability formula
Reputation management plan
Annual follow-up audit and assessment
© Taylor & Francis 2015

2) 1st/Audit – employees vs. mgmt – intrinsic value (what company stands for) –gap between two views; 2nd/Audit how external view organization and sum of those constituency images constitutes reputation. Gap between identity and reputation is analyzed, create plan to converge the two. 3) performance against industry or competitor (measure, monitor, manage); 4) making adjustment if slipping; 5) the deliverable – a strategic performance, behavior + communication plan for converging identity and reputation – plan to move images various constituencies hold about the organization closer to intrinsic identity.
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Components of Comprehensive Reputation Management
Stakeholder Overview – 2 pages – A key component of the copyrighted CRM list for the organization’s main stakeholders (seven to ten for a large organization) the opportunities, vulnerabilities, goals, and strategies.
© Taylor & Francis 2015

2) 1st/Audit – employees vs. mgmt – intrinsic value (what company stands for) –gap between two views; 2nd/Audit how external view organization and sum of those constituency images constitutes reputation. Gap between identity and reputation is analyzed, create plan to converge the two. 3) performance against industry or competitor (measure, monitor, manage); 4) making adjustment if slipping; 5) the deliverable – a strategic performance, behavior + communication plan for converging identity and reputation – plan to move images various constituencies hold about the organization closer to intrinsic identity.
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Pushmi-Pullyu Metaphor
https://www.google.com/search?q=pushmi+pullyu+toy&oq=pushmi&aqs=chrome.4.69i57j0l5.7471j0j4&sourceid=chrome&ie=UTF-8

https://www.google.com/search?q=pushmi+pullyu+toy&oq=pushmi&aqs=chrome.4.69i57j0l5.7471j0j4&sourceid=chrome&ie=UTF-8
Solution:Pushmi/Pullyu – Entire organization behave and act as one.
© Taylor & Francis 2015

Remember Doctor Dolittle’s Pushmi-Pullyu Syndrome? In corporations, we see this mythical creature when there’s a disconnect between the company’s behavior and its communication. Always blames PR/Communication, not performance. “How does it make up its mind.” The performance head is turning saying one thing and they expect the communication head to turn saying something else.
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Behavior / Performance

Communication

Edelman Public Engagement Model
Democratic and decentralized
Inform the conversation
Engagement with influencers of all types
Reputation is built on policy and communication
© Taylor & Francis 2015

Reputation Mismanagement

© Taylor & Francis 2015

Reputation

Performance

Behavior

Communication

Lessons From Financial Crisis
Arcane financial instruments, massive greed Real Estate/Banks collaborated to sell property to people who could be expected to pay for it.
Performance Failure: Property value and other economic indicators fell so did the reputations.
Behavior Failure: Economy down, executives compensation continued to rise. – Occupy Wall Street 2012
Communication Failure: Was Communicators consulted 2008 when CEO’s took their private jets to Washington.
Identity Failure: Bank made loans only to people who could repay; that changed in 1980s.
© Taylor & Francis 2015

One bank after another started making loans on the prospect that the properties offered as collateral would appreciate. Often banks sold the dangerous loans to toehr banks, absolving the original lender of vulnerability.
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Ten Precepts of Reputation Management
Know and honor your organization’s intrinsic identity – Multiple identities (quality products, competitive, etc.) must be compatible and one must be dominant.
Know and honor your constituents (Red Cross)
Build the safeguards strong and durable, for they are the infrastructure of a strong reputation
Beware the conflict of interest, for it can mortally wound your organization
Beware of the “CEO Disease,” because there is no treatment for it
© Taylor & Francis 2015

3) US Federal Reserve Chairman, Alan Greenspan maintains that greed was the root cause of most business scandals and weak safeguards let the greed flourish. Moral: Strong, efficient safeguards, internal/external-company’s best interest;
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Ten Precepts of Reputation Management, cont’d
Beware of organizational myopia, for it will obscure the long-term view
Be slow to forgive an action or inaction that hurts reputation
Do not lie
Dance with the one that “brung” you
Reputation is an asset and must be managed like other assets
© Taylor & Francis 2015

Best Practices in
Reputation Management
Understand and value the components of reputation, including integrity, governance, and communicativeness (transparency)
Establish a formal mechanism to periodically monitor, measure, and manage reputation
Establish a formal mechanism to manage reputation on an ongoing basis
A formal mechanism can help your organization converge brand reputation and the broader corporate reputation with intrinsic identity
© Taylor & Francis 2015

Brand Management
Brand is not reputation
Reputation—the sum of perceptions that individuals or groups have of a specific individual or organization
Brand—how an individual or organization wants to be perceived
© Taylor & Francis 2015

The Expanded Reputation Formula
Reputation = (Performance + Behavior + Communication) x Authenticity factor
R = (P + B + C) x Af
© Taylor & Francis 2015

The Authenticity Factor – The indicator of how well an organization (or person) lives up to its intrinsic identity. When authenticity, the organization is a whole, undiminished. Authur W. Page Society call the “coin of the realm for successful organizations. Grounded: sense of what defines it, why it exists; what it stands for and what differentiates it in the marketplace. To be authentic is to have integrity (a whole). When integrity or authenticity fails, the Authenticity factor is a fraction. The organizations is divided and, and its reputation will decline, because it well be a fraction of the sum. Reputation depends on each of the factors. Reputation can only be managed by managing all the components in the equatikon.
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Systems Theory
Communication is the means by which an organization functions, and it is axiomatic that the better the communication the more productive the organization
© Taylor & Francis 2015

Remaining Chapters
Discussion of ethics (Chapter 2)
Discussion of approaches to working with the various corporate communication constituencies (Chapters 3–10)
Ways of handling certain major responsibilities (Chapters 11–13)
Challenges facing those who seek to build a career in corporate and organizational communication (Chapter 14)
© Taylor & Francis 2015

Part I: Evolution

Chapter

1

: Defining Public Relations

Copyright ©2014 by Pearson Education, Inc. All rights reserved.

1

Learning Objectives

To define the practice of public relations and underscore its importance as a valuable and powerful societal force in the 21st century.

To explore the various publics of public relations, as well as the field’s most prominent functions.

To underscore the ethical nature of the field and to reject the notion that public relations practitioners are employed in the practice of “spin.”

To examine the requisites – both technical and attitudinal – that constitute an effective public relations professional.

Copyright ©2014 by Pearson Education, Inc. All rights reserved.

2

Opening Example: Bin Laden’s Public Relations Concerns
Improve news media coverage
The accuracy of his place in history
Al Qaeda’s image (contemplated name change with religious ring)
Al Qaeda attacks on Muslims in Muslim countries
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3

Learning Objective 1
To define the practice of public relations and underscore its importance as a valuable and powerful societal force in the 21st century.
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

4

Prominence of Public Relations
Social media and public relations have revolutionized the way organizations/individuals communications with their publics around world.
Example: “Arab Spring” of 2011 – demonstrations, PR messages on social media – brought down rulers from Tunisia, Egypt, Libya, Yemen – Combined, organized, communicate – awareness
Figure 1-2 (Photo: ZUMA Press/Newscom)
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

5

Prominence of Public Relations
Multibillion-dollar business in the United States
320,000 professionals; 21% employment growth expected from 2010 to 2012
International Public Relations Association – strong membership in 80+ countries
250 U.S. colleges and universities offer public relations sequence/degree
U.S. government has thousands of communications professionals
Trade associations have strong membership
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Prominence of Public Relations
Ownership: Media Conglomerates – Omnicom, The Interpublic Group and WWP Group;
Typical PR Agency revenue less than $1Million
21st Century – nonprofits, government, religious institutions, sports teams, arts, etc. must tell their stories, so business will thrive.
PR people write books, appear on TV, and are quoted –
Other fields that encroach PR – lawyers, marketers, general managers, – want management access.

What is Public Relations?
PRSA’s 2012 definition
“Public relations is a strategic communication process that builds mutually beneficial relationships between organizations and their publics”
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

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What is Public Relations?
Seitel’s definition
“Public relations is a planned process to influence public opinion, through sound character and proper performance, based on mutually satisfactory two-way communication.”
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

9

What is Public Relations?
Edward Bernays – 1923 to describe his practice –
Information given to the public, persuasion directed at the public to modify attitudes and actions, and efforts to integrate attitudes and actions of an institution with its publics and of publics with those of that institution.”

What is Public Relations?
Foundation for Public Relations Research and Educations – 1975 conducted a study 472 definitions – 88 words
“Public relations is a distinctive management function which helps establish and maintain mutual lines of communications, understanding, acceptance, and cooperation between an organization and its publics; involves the management of problems or issues; helps management to keep informed on and responsive to public opinion; defines and emphasizes the responsibility of management to serve the public interest; helps management keep abreast of and effectively utilize change, serving as an early warning system to help anticipate trends; and uses research and sound and ethical communication techniques as its principal tools.”

What is Public Relations?
Research, planning, communications dialogue, and evaluation, are all essential in the practice of public relations;
Key – no matter which definition – to be successful, PR professional must always engage in a planned and ethical process to influence the attitudes and actions of their target audiences.

Copyright ©2014 by Pearson Education, Inc. All rights reserved.

12

Planned Process to Influence Public Opinion
John Marston’s R-A-C-E
Research-Action-Communication-Evaluation
PR = Performance Recognition
Sheila Crifasi’s R-O-S-I-E
Research-Objectives-Strategies-Implementation-Evaluation
R-P-I-E
Research-Planning-Implementation-Evaluation
What do the models have in common? How do they differ?
Management and Action
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13

Planned Process to Influence Public Opinion
Melvin Sharpe’s Five Principles – PR Process
Honest communication (credibility)
Openness and consistency of actions (confidence)
Fairness of actions (reciprocity and goodwill)
Continuous two-way communication (prevent alienation, build relationships)
Environmental research and evaluation (determine actions or adjustments needed for social harmony)
Janice Sherline – Jenny’s description: “the management of communications between an organization and… its publics”
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

14

Public Relations as Management Interpreter
Every organization has public relations
Public relations professionals:
Interpret philosophies, policies, programs, practices of management to public
Convey attitudes of public to management
Counsel Management
Advise Management
Recommend Action
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15

Public Relations as Public Interpreter
Learn about what public really thinks
Let management know
Examples:
GM’s Corvair, Ralph Nader unsafe at any speed
Mobil Oil in the 1970’s – gas/oil prices – purchases Montgomery Ward store
Hurricane Katrina – Bush didn’t respond quickly
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

16

PR Ethics Mini-Case: Firing the Nazi in the House of Dior
John Galliano asked to leave Dior after anti-Semitic remarks hurt firm credibility (Page 10)
What other options did Dior have beyond firing Galliano?
Do you agree with the categorical decision made by the House of Dior?
Figure 1-4 (Photo: MAYA VIDON/EPA/Newscom)
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17

Can you think of a recent case in which an organization was not correctly interpreting public views?
What were the consequences?
Now it’s your turn……
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18

Learning Objective 2
To explore the various publics of public relations, as well as the field’s most prominent functions.
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

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The Publics of Public Relations
Public relations should be publics relations
Internal and external
Primary, secondary and marginal
Traditional and future
Proponents, opponents and uncommitted

Copyright ©2014 by Pearson Education, Inc. All rights reserved.

20

The Functions of Public Relations
Writing
Media relations
Social media interface
Planning
Counseling
Researching
Publicity
Marketing communications
Community relations
Consumer relations
Employee relations
Government affairs
Investor relations
Special publics relations
Public affairs and issues
Crisis communications
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21

Learning Objective 2
Discussion Question
If you were the public relations director of a non-profit organization, whom would you consider your most important “publics” to be?
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

22

Learning Objective 3
To underscore the ethical nature of the field and to reject the notion that public relations practitioners are employed in the practice of “spin.”
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

23

The Sin of Spin
Spin ≠ Public Relations
Mild: Interpret issue to sway public opinion (e.g. positive slant on negative story)
Virulent: Confusing, distorting, or obfuscating the issue or Lying
Antithetical to proper practice of Public Relations
Public relations cardinal rule: Never, ever lie.
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24

Learning Objective 3
Discussion Question
How do professional public relations people regard the aspect of “spin” as part of what they do?
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25

Learning Objective 4
To examine the requisites – both technical and attitudinal – that constitute an effective public relations professional.
Copyright ©2014 by Pearson Education, Inc. All rights reserved.

26

Seven Areas  Successful PR Career
Diversity of experience
Performance
Communications skills
Relationship building
Proactivity and passion
Teamliness
Intangibles, such as personality, likeability, and chemistry
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27

Desired Technical Skills
Knowledge of the field.
Communications knowledge.
Technological knowledge.
Current events knowledge.
Business knowledge.
Management knowledge.
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28

Desired Attitudinal Requisites
Pro communications.
Advocacy.
Counseling orientation.
Ethics.
Willingness to take risks.
Positive outlook.
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29

Learning Objective 4
Discussion Question
What are the technical and attitudinal requisites most important for public relations success?
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30

Case Study: BP’s Loose Lips Sink Credibility Ship
Page 18
How would you assess BP’s response to the Gulf of Mexico oil spill?
How could BP have prevented the damage done by its CEO spokesperson?
Had you been advising Hayward, what would you have suggested he say in response to the questions he was asked?
Figure 1-6 (Photo: Newscom)
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright ©2014 by Pearson Education, Inc. All rights reserved.
Copyright ©2014 by Pearson Education, Inc. All rights reserved.