CORPORATE PUBLIC RELATION: AN OVERVIEW WITH RINL/ VSP

BY: SHEETAL SARAF

CONTENTS

1)What is CPR? 2)Publics in CPR 3)Corporate Image. 4)Employer- Employee Relations. 5)Corporate Communications. 6)CSR With ref. to Community Relations? 7)Open Forum

WHAT IS CPR

CPR
PR is nothing but, a way to Liberalization, Globalization, and Politicization has made it mandatory for any organization to maintain its relations with the society & the publics associated with it.
establish an understanding between entities (Corporate or Organization) and the society. He further said that information must be Correct. It must be communicated well, it must be persuaded. Channel of communication must be clear and understandable by both.

----- -Edward Bernays

CPR
Corporate Public Relations is comparatively new and growing subject. It deals with many tangibles and needs who respond to the changing phases of the society development. It can not therefore, be static because it has to take into consideration the dynamic interaction between the organization & the society.

CPR IS AS R- Race, A-Action C-communication E-Evaluation

Distributors

Employees

Stake holders

Suppliers Organization

Share holders

Consumers Community Government

Pressure Group

SCOPE OF CPR
CPR A)Prevent Conflict

CPR

b)Improve Corporate Image

CPR

c)Promote Mutual Trust & Credibility

CPR

d)Promote goodwill with Press & Publishers.

FUNCTIONS AND OBJECTIVE OF CPR

1)Prestige and favourable image. 2)Promotion of products & services. 3)Detecting and dealing with issue and opportunities. 4)Prevention and solution of labour problems. 5)Fostering the goodwill of community in which the organization has unit.

6)Goodwill of the stockholders ,employees ,suppliers ,Government ,customers . 7)Overcoming the misconception and prejudice.

8)Investigation of the attitude of various group.

9)Ability to attract the best of personal 10)Formulation and guidance of policing.

BASIC ELEMENT OF PR:Information Integration of all the above activity

Communication

Public acceptance Mutuality and interest of Co.and the public

Persuasion

CORPORATE IMAGE
Building Image

Creating Image

BUZZ WORD FOR CORPORATE WORLD

Favorable image

Organization over the world, are caring to have good image and huge sum of money is being spent on this exercise. Image can not be built. It can not be made- it can not be polished. Image has to be earned. There is a general tendency to believe that socalled image making exercise is a panacea and cure all of all problems. It is image evolve, it is primarily based on performance. It has to be nurtured , acquired, and developed with sustained effort. Corporate image can be earned with proper planning and its effective implementation.

CORPORATE IMAGE

CORPORATE IDENTITY

Corporate Image

Knowledge

How the organization is perceived? E.g. Its Brand Personalities

Identity

Experience

Logo type

Type phase

CORPORATE IDENTITY

Slogan

Colour

Trade character

CORPORATE IDENTITY

ENDORSED IDENTITY BRANDED IDENTITY MIRROR IMAGE CURRENT IMAGE PRODUCT IMAGE

IMAGE

CORPORATE IMAGE

WISH IMAGE

ispat

Industry players already using ERP

ispat

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Suggestion for Developing Corporate Image

The successful organization with good public image are those companies who are ready to adopt their policies and procedures.And change their attitude and respond according to the need of the public.

Initially some PR practice may be found costly but cost should be borne in mind to fight a greater loss in future.

So, to earn a good image an organization 1st need to change itself to change its image.

EMPLOYER EMPLOYEE RELATIONS

PR like charity should begin at home.

Employees are the internal publics therefore should be given top-priority and due respect.
They should be made most important target audience before earning the confidence of other publics.

Employees are the striking asset of the Co. and help in building the reputation of the Co.
Employer-Employee relation is primarily and basically Human Relation.

Technological improvements has been able to harness the material forces. But has not yet been successful to regulate and control human.

An enthusiastic and vibrant employer employee relationship is instrumental to establish the understanding and create confidence to achieve corporate goal.

People, People and People and not the Plant and Machinery that create the difference in quality .

People Management

HOW TO DEVELOPE A BETTER EMPLOYER-EMPLOYEE RELATIONS

Fair Treatment Scope of advancement and self development. Recognition for achievement Qualities of work to ensure job satisfaction.

Congenial working environment /atmosphere. Scientific approach for appraisal of performance.

CONTD.
Effective communication and Motivation Job content and job context Participation in management. HRD- Training.

Willingness to listen to employees. Recruitment process.

HOW FAR VSP HAS BEEN ABLE IN DOING FOR ITS EMPLOYEES

PILLARS OF STRENGTH OF VSP

COMPANY CARES FOR ITS EMPLOYEES IS THE MANTRA OF VSP

WELFARE MEASURES IN VSP

STATUTORY WELFARE MEASURES

NONSTATUTORY WELFARE MEASURES

SOCIAL SECURITY MEASURES

STATUTORY WELFARE MEASURES

NON-STATUTORY WELFARE MEASURES

SOCIAL SECURITY MEASURES

1)Canteen facilities. 2)Baby Crche, 3)First Aid Facilities, 4)Water coolers, 5)Leave, 6)Maternity Leave, 7)Factories Act, 8)Gratuity, 9)Workmens compensation, 10)Contract Labour Welfare

1)Facilities for Education, 2) Scholarships, 3)Medical Facilities, 4)Housing Facility, 5) WorKdress, 6)Vehicle Advance for Employees, 7)House Building Advance, 8 )Motivational Schemes: 9)Facilities for Recreations: 10)Cultural & Trekking Activities, 11)Co-operatives,: a)Employees Consumers cooperative Stores, b)Employees Consumers Cooperative Thrift & Credit Society.

1)Employees family benefit scheme 2)RINL Employees Superannuation Benefit Fund 3)Group savings linked insurance scheme 4)Group Personal Accident Insurance Scheme 5)Contribution from incentive Earnings 6)Traveling/Transport Expenses 7)Medical Insurance Policy for Retired Employees.

COMMUNICATION

Company besides adopting various administrative and political policies, they have also launched communication strategies.

Corporate communication is a process that translates corporate image and it can be done effectively by communicating both with its internal and external publics. The fundamental idea behind the CC programme is that in a developing country like India communication of govt programme achievement & expectations are , no doubt , important but equally important is communication from & to the economic sector. The public sector has however made a significant contribution to the birth, nurturing, growth & professionalism in public relations. PSU like HMT, BHEL, SAIL followed by NTPC, IOCL, VSNL, NHPC have played a notable role in professionalization of PR discipline.

COMPONENTS OF CC IN VSP
RINADS

MEDIA & PRESS RELATIONS CORPORATE COMMUNICATION ADVERTISEMENT & PUBLICITY PHOTOGRAPHY AND VIDEO COVERAGE INTERNAL COMMUNICATION

RINADS: AN OVERVIEW
Before the formation of RINADS i.e. in the first half of 2006-07 , only Rs 23 lacs earned as discount (3.4 %) against Rs 89 Lacs earned as discount (13.5 %). After the formation it clearly jumped by 10%

In the year 2007-08 earning as discount is Rs 2.93 crores (16.2%).In the year 2008-09 earning as discount is Rs crores (19.5%) and the in the 1st half of the current year is Rs 1.9 Crores(23.9%)

It is an in-house advertisement agency setup in 2006.

In the last 3 year VSP has saved an amount Rs 9.13 Crores on account of discounts against total expenditure of Rs 50.18 Crores.

If RINADS was not formed and continued the earlier practice, VSP would have earned Rs 1.7 Crores against the present earning of Rs 9.13 Crores

Internal Communications
A Bimonthly Journal published for VSP internal communications is called Ukkuvani. The Practice of house journal was started way back in 1984. Its circulation is 18,000 with a readership of about 1Lac.In this views are expressed under various headings like Health is Wealth, Young Achievers by not only VSP employee's but by their dependents also. It also highlights the CSR activities undertaken. Special focus is on VMS, Sports & Culture, WIPS(Women in Public Sector) and Vizag Steel Township.

AN OVERVIEW OF OTHER ACTIVITY

Publicity:- This section is responsible for carrying out product promotion and corporate image building activities.

Advertisements:- As part of the budgeting process, a portion of the publicity budget is further allocated to the marketing department to carry out its advertising activities. This budget is apportioned between various regional and branch offices on the basis of sales . Branch Level committees are formed for finalizing the contracts pertaining to publicity activities in the branches.

Photo and Video Coverage:- This section is responsible for providing Photo & Video coverage for various functions/ events held in or related to the Company. The photos and the CDs are then delivered to respective departments and an acknowledgement is obtained from them on the register of orders. The budget is centrally allocated and managed by the photo film section.

Printing:- This department is responsible for printing and supply of special stationery and creative publications such as inhouse magazines, company brochures, calendars, greeting cards, visiting cards, letter heads for eligible executives (on a need basis).

Media Relations:- It handles all media related activities such as conducting Press Meets, issuing Press releases, Press clipping service etc

Release of Goodwill Advertisements:- The goodwill advertisements section handles community relations activities such as providing financial support to various social, cultural, educational, sports institutions and media. Requests for advertisements / financial assistance are received by from various bodies.

Publishing of Tender Advertisements in news papers RINADS: An independent profit making company, RINADS, has been formed to handle the publishing of tender advertisements Departments like Works Contracts, Projects Contracts, Marketing, and Material Management will obtain approvals as per the DoP for publishing the tender advertisements in the news papers.

Social Audit

Today's buzz word CSR is a part of Social audit which is a systematic study of an organization social performance as distinguished from economic performance.

It is as old as human civilization. The concept has existed in one form or the other. There are Umpteen e.g. of its varied form, content and end use. From Arabian tales to the epic Ramayana.

Even the pages of history witnessed its existence from the rule of Ashoka-Harsha VardhanaMughal Rule followed by the Englishmen proved that the rulers tried to put forth that they were working for the people and the people should co-operate in their continuance.

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COMMUNITY RELATIONS

PR Begins at door steps by virtue of philanthropy is a traditional value system which was followed by kings & zamnidars. This tradition is even continued by even many industrialist by building roads, parks, tube wells, , medical units etc.

No industries want to take risk i.e. strike by employees, student, local peoples, party leaders etc.It is a Survival strategy not a preference.

WHY THIS CHANGE IN ATTITUDE?

WHY COMMUNITY RELATIONS

1.TO IMPROVE THE BUSSINESS CLIMATE 2. TO ESTABLISH THE COMPANY REPUTATION AND LOCAL IDENTITY 3. TO DISPEL MISTRUST AND MISCONCEPTIONS 4. TO EARN TRUST AND CONFIDENCE 5. TO ENSURE COMPANY INVOLVEMENT WITH THE SOCIETY

MODERN MEANING OF CSR

CSR in a Developing Country( India)

Focus on nation building
Socioeconomic development

Community

Health care

Rural development

Education

Employment 40

Benefits
It aids the attraction and retention of staff

It attracts green and ethical investment

It attracts ethically conscious customers It can lead to a reduction in costs through re-cycling It differentiates the firm from its competitor and can be a source of competitive advantage It can lead to increased profitability in the long run

RINL- CSR Policy

RINL CSR Policy approved by Board in November 2006. 2% of the Net profit to be the Budget for CSR. A separate Dept formed in Feb-07 to take up CSR works. RINL-CSR Foundation registered in May 2007 and Exemption obtained under IT Act Scope envisages activities towards :
Environmental care Community Health care People care Education Culture Peripheral Development Activities as a responsible Corporate Citizen

Integrating business strategy with CSR

Business goal

Community needs S R

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The Process
Identify stakeholders interests/ requirements: Gather information by surveys; Consult Unions / Associations Relate activities with Local Bodies / Local Peoples Representatives Consider requests of Local Bodies/ District Prioritize Requirements:

Conceptualise the
requirement by preparing Projects in order of preference of Budget; Social Value;etc.

Administration / State Govt

Obtain support of Institutions like NIRD

Approved Projects taken up For implementation

Thru: NGOs

Approach Apex Committee for approvals up to Rs.20 Lakhs in case of NGOs / Direct constn. up to Rs.50 Lakhs or Board for value > Rs. 20/50 Lakhs

Direct construction or thru CPWD

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MAJOR FOCUS AREAS

Community care

Health care
Education Empowerment Welfare, Sports & Cultural efflorescence
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ACTIVITIES PERIPHEREAL DEVELOPMENT

YEAR 2006-07 2007-08 2008-09 YEAR 2006-07 2007-08 2008-09

AMOUNT IN LACS 41.17 30.9 786.12 AMOUNT IN LACS 32.6 144.61 805.14

BENEFECIARIES 12,200 1380 1,35,746 BENEFECIARIES 18,036 1,15,241 40,769

ACTIVITIES EDUCATION

ACTIVITIES HEALTH CARE

YEAR 2006-07 2007-08 2008-09

YEAR 2006-07 2007-08 2008-09 YEAR 2006-07 2007-08 2008-09 YEAR 2007-08 2008-09

AMOUNT IN LACS 11.37 340 315.21

AMOUNT IN LACS 12.6 137.71 326.36 AMOUNT IN LACS 10 10.6 45.9 AMOUNT IN LACS 213.04 199.3 AMOUNT IN LACS 700 18

BENEFECIARIES 23,140 1,16,902 10,18,078

BENEFECIARIES 24,882 3,09,104 87,149 BENEFECIARIES 10,000 9500 10,052,000 BENEFECIARIES 204035 1,75,000 BENEFECIARIES 10,00,000 500

ACTIVITIES PEOPLE CARE

VITAL STATISTICAL FIGURE AT A GLANCE

ACTIVITIES CULTURAL EFFLORENCES

ACTIVITIES RESPONSIBLE CORPORATE CITIZEN

ACTIVITIES NATURAL CALAMITY ENVIRONMENTAL CARE

YEAR N/A N/A

PERIPHERAL VILLAGES CONSIDERED FOR DEVELOPMENT

CSR Initiatives: Community Development & asset creation

Construction of School Buildings, Libraries, Compound walls, Parks & Play-Equipment, Market-yards, Roads & Drains, Bus Shelters, Toilet Blocks, De-fluoridation Plant, Bore wells costing Rs. 395 Lakhs

Children's Traffic awareness Park in VUDA PARK costing Rs. 32 Lakhs.

Support to Visakha Music & Dance Academy costing Rs.20 Lakhs

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Community Development at a Glance

Construction of Compound wall & providing Gates, roads.

Market Yard development

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Community Development & asset creation: (..contd.)

Support to Mandal Vikalangula Seva Sangham for construction of dormitory block for Physically-challenged children costing Rs.21 Lakhs

Jaladhara .. Earth Gravity Water scheme in Araku & Chintapalli Tribal areas at a cost of Rs. 29 Lakhs.

Support for construction of 2nos. SC/ST Girls Hostels and 150nos. Community hall-cum-Library buildings in Guntur & Ongole districts costing Rs. 180 Lakhs.

Support to 21st Century Gurukulam at Andhra University for rural education, benefiting 250 students per year costing Rs 100 Lakhs

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MODEL STEEL VILLAGE at Maddivanipalem

Value : Rs.37 Lakhs Amenities : School building -1 no. Panchayat Hall-1no. Rural houses -9nos. Bus shelters-3nos

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Community Development & asset creation: (..contd.)

Support to 95th Indian Science Congress of AU costingRs.100 Lakhs

Flood Relief for the State of BIHAR Rs. 200/700 Lakhs

Support to Red Cross Society for Blood Bank related project Rs.280 Lakhs

Laying balance road between Gamharia & Phulthora ghat in Bihar Rs. 98 Lakhs

Partnership with NIRD, VMS, Lions Club, Bharat VikasParishad, SaiSevaSamithi etc. for CSR activities.

MOU with CPWD for all CSR related construction works.

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Addressing water problems in Tribal area thru Jaladhara Scheme

CSR Initiatives Health care Help to Differentially abled persons (Tricycles, calipers, Hearing Aids) (Rs.24Lakhs) 990 nos. Eye care including cataract operations to the people in the peripheral areas thru Sankar Foundation 1000 per year Cancer Screening Camps through Indo-American Society (3nos. - Rs.2.50 Lakhs) 1000 beneficiaries Medical Camps 13nos.(Rs.5.62 Lakhs) .. 2700 beneficiaries 400 Street Plays for awareness on HIV/ AIDS .. 128400 beneficiaries (Rs.9.0 Lakhs) De-addiction Camps (3 nos.) (Rs. 0.50 Lakhs) .. 101 beneficiaries

Support to Lifeline Express- Hospital on Wheels at Vizianagara (Rs. 6 Lakhs) .. 6000 beneficiaries

Distribution of Key chains with Condoms for truck drivers (Rs 1 Lakh) .. 8000 Nos.

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Sankar Foundation Hospital

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Cancer Detection Camp At Model Steel villages

56 With the help of Indo American Cancer Institute & Research Centre, Hyderabad

CSR Initiatives Education

Scholarship to Girl Children 153 per year in 17 ZP Schools at a cost of Rs.2.4 Lakhs per year

32 Personal Computers to ZP Schools Rs. 12 Lakhs 57

Children Play Equipment

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CSR Initiatives (..contd.)

Providing Play equipment to 76 schools in RH colonies & peripheral villages of VSP Rs.23 Lakhs

Providing school furniture- 1645 Desk-cumbenches, Teacher tables, Library tables etc., through Govt. ITI, Gajuwaka - Rs. 45 Lakhs

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CSR Initiatives: Empowerment and Employability

Partnering for progress with JSS, VMS, SSS, BVP

Skill Improvement Programme through I.T.I.--250 beneficiaries

Vocational training and Livelihood Programmes through JanSikshan Samsthan (LMV)Driving , Teachers Training, Dress Making, Embroidery, DTP, MS Office etc) --401 beneficiaries

Entrepreneurship Awareness Programmes through

National Institute for Micro, Small & Medium Enterprises (NIMSME) --450 beneficiaries

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Advancing the dignity of youth

61 Empowerment & employability 401 Beneficiaries

CSR Initiatives Welfare, Sports and Cultural Activities

Spread of Culture thru Society for Promotion of Indian Classical Music And Culture Among Youth (SPICMACAY) Programmes in Schools and RH colonies

Supported 2 lions at Zoo, under Animal Adoption scheme

Support to Sports persons, Events & Academies

Support for District Sports for Children of RH Colonies Grigg Sports at Visakha Vimala Vidyalayam
Sports for Special children
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CSR Initiatives

Welfare, Sports and Cultural Activities:

SPICMACAY concert at Delhi Public School , Ukkunagaram

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Welfare, Sports and Cultural Activities (..contd.)

Organizing School Children Tournaments in peripheral villages.

Honoring the wards & Employees for achievements in Sporting events of State, National, International, SGFI, CBSE

Summer Sports Coaching Camps for school children of peripheral villages

Cooperation to the Dist. State Associations, Federations, Clubs by providing qualified Umpires, Coaches, Team Managers, Volunteers, Sr. Players in the Major Championships.
Providing infrastructure/equipment to NGOs

Organizing Yoga classes for house wives, men & wards on regular basis in peripheral villages

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In support of Sports ..

Sports for special children

Taekwondo (Martial Art)

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AREAS IDENTIFIED FOR IMPROVEMENT

1. ERP IS THE BUZZ WORD AND SHOULD BE IMPLEMENTED AT THE EARLIEST TO MAINTAIN THE TRUST OF THE STAKEHOLDERS IN THE COMPANY 2. MONITORING OF THE FUNDS GIVEN FOR CSR ACTIVITY SHOULD BE DONE TO ENSURE EFFICIENT USE OF FUNDS. 3. INTRA & INTER DEPARTMENT ACTIVITIES SHOULD BE ENCOURAGED. 4. REGULAR COUNSELLING OF THE EMPLOYEES SHOULD TAKE PLACE. 5. MOTIVATED SLOGAN AND WALL POSTERS SHOULD BE PLACED IN EACH DEPARTMENT TO KEEP UP THE EMPLOYEE MORALE. 6. OTHER THAN SPORTS,DANCE &MUSIC CLASSES SHOULD BE ARRANGED FOR PHYSCOLOGICAL BENEFIT OF EMPLOYEES. 7. THE RECRUITMENT POLICY CAN BE MODIFIED AND A SUITABLE % CAN BE RESERVED FOR WOMENS.(UPTO 33% ATLEAST) 8. EMPLOYEES SHOULD BE PLACED BASED ON THEIR EDUCATION BACKGROUND AND NOT RANDOMLY.IT HELPS IN ENSURING QUALITY WORK. 9. AN INTEGRATION OF THE ALL THE ABOVE SUGGESTION WILL HELP THE ORGANIZATION TO CREATE A REPUTED IMAGE & THE EMPLOYEES CAN FEEL THE SENSE OF BELONGINGNESS WITH THE ORGANIZATION AND ACT AS A GODWILL AMBASSADOR AND CAN SELL THE COMPANY IMAGE 24*7

Thank You