6.

PUBLIC RELATIONS The purpose of the public relations is to: Plan, establish and maintain an understanding between the business, people and institutions Establish, preserve and maintain the business image Play a role in supporting the social responsibility programmes of the business Establish a sound mutual relationship that will make business more profitable in the long term Stakeholders (those people who have an interest in the business) Consumers Human resources Other stakeholders depending on the nature of the business: Shareholders- many large companies are owned by shareholders. They pay a certain amount to buy a share in the company. They do so to make a profit. Shares are bought and sold on the stock exchange. Government- when companies make a profit, they have to pay a certain percentage of that profit to the government as tax Members of the public- e.g. many companies sponsor sporting events or bursaries to students Reasons for good public relations Consumers are more willing to support a friendly or responsible business that has their and their communities interest at heart Suppliers are more willing to give credit to a reliable business Banks do not hesitate to lend money to reliable borrowers Investors tend to invest in a good business Authorities are more likely to agree to requests by a responsible business Functions of the public relations department Publicity Publicity is information that becomes known to the public. They try to make sure that the publicity the company receives shows the enterprise in a good light It is the responsibility of all departments to avoid harmful publicity. Negative publicity can lead to a decrease in sales or even to activities such as consumer boycotts. Methods used to obtain publicity: o Special events: media reporters are invited to special events such as product launches, to capture their interest o News releases: it is the responsibility of the public relations department to release information about the companys products or services to the media o Sponsorships: financial assistance is given to sport, education and training

Social responsibility Social responsibility is a businesss obligation to protect and improve the standard of living in communities and the environment. Public relations must support the social responsibility programmes of the enterprise Business take part in social responsibility programmes activities for 2 reasons: To promote the image of the company in order to make a profit To help contribute to the general welfare of the companys stakeholders and to social welfare in general Different companies have different ideas about social responsibility Many companies like to contribute to sporting activities. Since many people participate in sport and follow sporting events in the media, such activities give company lots of exposure to the public Other types: o To become involved in projects in specific communities, especially communities with few resources o Making contributions to victims of disasters Tools of public relations The spoken word: face-to-face communication-often the most important method of communication Printed media: e.g. newspapers, magazines Radio and TV: e.g. discussion programmes or talk shows Films, DVDs/ CDs: could be shown to employees, consumers, schools Internet: communication with organisations of people Special events: a press conference is usually called when important things happen e.g. a new product or to introduce the new CEO An exhibition may take place e.g. trade fairs Offering sponsorship given to sport, education education and training