Organization and Its Association with Public Relations - Essay Example

of project: Advantages and potential risks of PR based on CSR and number: submitted: Organization and its association with Public Relations (PR) Every Organization, especially for profit concerns, all around the world have its sole motive and aim towards the earning of more and more profits and not only that but they also tries to put their maximum efforts and endeavors in order to increase those profits figures on each year basis so that its various number of stakeholders are being satisfied and consider such Company for future investments prospects. However, such organization does realize at certain point of time that their responsibilities are not only intact in the direction of making profits only, but they do have certain duties and responsibilities towards the society as well, most importantly, towards the public. There comes the term Public Relations, which is highly connected and linked with wide organizational structural framework in modern times. Whatsoever, an organization is practicing in any of the industry of the world, e.g. textile, cement, FMCG, chemical manufacturing, Information Technology, Construction and etc, it do need to maintain its strong reputation and standing among the various media personal, society at large, government bodies and other components of public relations. Because the maintenance of such smooth and swift relationships with the public at large, benefits the organization and its management in the long run and in carrying out its operational and functional procedures in a dynamic, effective and efficient manner. Public Relation Defined and Explained Public relations is a deliberate, planned and sustained endeavors on part of the organization to establish and maintain the aspects of mutual relationship and understanding between the Company (or individual) and the public and thus, this act of Company is considered as the dynamic key to its effective communication in all the major sectors of business, market, government, academic, CSR and not-for-profit (Pria.com.au). Public relations can be defined as the practice of monitoring and managing the flow of information or data between individuals of Company or an organization itself and the public and its various authorities. Broadly speaking, Public relations can include an organization or any individual attaining exposures and making interactions to their audiences of different classes, using specifically the subjects of public interest and certain news information which do not demand any direct consideration or payment. Thus, the one of the major objectives which the Company aims to meet as a result of its association with public and maintaining its good relationships and connections with it, is to dynamically persuade or convince its broad range of the public in society, investors, employees, partners, media, regulatory authorities, social personalities and various other stakeholders in order to maintain its certain image or viewpoint about itself, or its leadership, services, products, CSR activities, or other forms of political influences and decisions. Some of the common activities or tasks linked with PR are speaking of organization’s personnel at conferences or public events, winning certain industry awards for best practices, working with the press or media, and other managements and employee participation by way of communications and public interactions. In simple words, a Public relations is a typical kind of any strategic communication procedure or process that builds mutually favorable relationships and connections between the organizations and the public at large (Yann). Furthermore, a Public relations refers the organization overall reputation; the effects of what it does, what it says and what others says or thinks about it. It is the discipline which looks after reputation, with the aim of earning understanding and support and influencing opinion and behavior and is thus, planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics (Cipr.co.uk). Corporate Social Responsibility Corporate Social responsibility is one of the vital and most relevant responsibility and duty on part of any organization and its management as a result of which a general corporate belief is sustained among the society that the Company would be responsible for its actions, towards society, ethically, environmentally and socially. However, those responsibilities or duties would not be compelled to any particular business entity operating under any established economic system of the world, but they are merely expected by the society, the people living in the society and the organization working for the betterment of the overall human society. Some of the most commonly found examples of CSR activities are donations, charities, social awareness programs, poverty alleviation, pollution control, combating unemployment and so on. In Simple words, a Corporate social responsibility (CSR) entails to a business practice or activity that involves in participation in various initiatives that benefits the public and society, in which the Company operates (Fallon). Basic needs of implementing the CSR activities in line with PR There are certain basic needs or requirements that are needed to be presented in any organizational set up before it intends to call itself the successful leaders and followers in the aspects of PR activities based on CSR. Some of the major elements and parts of such basic requirements have been discussed in the following paragraphs, which will help us in understanding and pointing out the various advantages and potential risks of PR based on CSR; Presence of Strong Corporate Governance structure in Organization Theoretically speaking, the Corporate Governance relates to the existence of a system in an organization through which the operations of entire Company are directed and controlled (Cadbury Committee, 1992). More specifically, corporate governance refers primarily to the framework by which the every stakeholder needs and interests are kept balanced and maintained, or it can be broadly refers to defined the various relationships and transactions among the entire management, Board of Directors, Chief Financial Officer, Executives and majority shareholders, regulators, minority shareholders, major suppliers, major creditors and various other stakeholders of the Company. Another aspect of Corporate Governance says, that “Corporate governance involves a various set of transactions and relationships between a company’s management, its board of directors, it various committees, its shareholders and some other stakeholders. Corporate governance also provides the framework via which the complete objectives and strategies of the company are set, defined and implemented and the identification of certain measures and ways for attainment of those set objectives and strategies and the effective monitoring of performances are determined and evaluated" (Corporate governance - OECD, 2014). Therefore, a Company would only be in a strong and consistent position with respect to its PR aspects and in the performance of its various responsibilities associated with the area of CSR, when its corporate governance structure and framework is in reliable shape consisting of competent and experienced management level having the subtle demonstration of principles in their behavior, including the principles of independence, professional attitude, professionalism, ethical behavior and separate personal and organization interest in particular. Major Roles and Responsibilities of a Board in Organization It would not be impracticable to say that the foundation and ultimate survival and growth of any business organization is directly connected with the effectiveness and excellence of the board of such organization. The point to convey is that if the board performs its assigned roles and responsibilities in a valid, effective and efficient manner, independently, then the organization success chances are brightly enhanced in the long run. Thus, among many, major roles of the Board in any organization would be as follows; A clear business strategy completely aligned with its potentials Most primary function of the Board is to create, develop, implement, monitor, evaluate and adjust its organization key business strategies, goals, mission statements and objectives as per the dynamics of internal and external environment within and outside the organization. In addition, the Board shall also analyze critically and logically such strategies and objectives, in order to assess that whether their achievement is possible for the organization by considering its existing potentials and capabilities in terms of human, capital, financial and knowledge resources. Robust implementation of business strategies The creation of an excellent and dynamic business strategies on paper does not benefits the organization in numbers and figures until and unless their successful implementation and demonstration have been affected by the line of actions of its Board. It is the sole responsibility of the board that it keeps a regular check and balance for the implementation of various short term operational objectives of the business, together with the current status of long term key strategies of the organization, their implementation, the progress and its evaluation on a timely basis. This role is very essential on part of the Board, as it could directly affect the overall standing and position of the organization. Diligent Focus on the organization viewpoint from the eyes of its stakeholders Another role of the directors in Board of Company is the direct interaction with various important stakeholders of the Company, including suppliers, regulatory bodies, creditors, banks, distributors and shareholders, in order to assess the present position of the Company in their mindsets and also, what are their expectations and predictions of the Company’s performances and financial results. Evaluation of Board Performances It is the responsibility of the Board that it should regular conduct various key performance appraisal and evaluations of the member of Board and its overall performances for e.g., on every quarter of year and then, take certain corrective steps and bold decisions to improve the ultimate functionality of the Board and thus, opens the chances for better performances of the Company in upcoming span of time. Implementation of Control framework in an organization wide basis The Board constitute another important responsibility towards the organization, of implementing of definite business controls and control environment all around its organizational environment so as to assure that the overall risk of the business is regularly assessed through these controls measures and the effective and timely actions are being taken by them to offset the impact of such potential business risks on Company premises. Responsibility towards the shareholders Another, key functions of the Board is related to their responsibility towards their stakeholders, especially shareholders, during the time of company’s financial announcements and financial analyst briefing and meeting to them, as they are considered as the owners of the business and are directly affected by such financial figures of the Company. Thus, an organizational board which can demonstrate the perfect examples of above requirements of roles and responsibilities can lead the entity in maintaining its PR to the highest and most favorable level, which then can be positively utilized to fulfill various duties of the Company in the fulfillment of CSR activities. The above discussion would help us now in analyzing and pointing out the various advantages and potential risks of PR associated with CSR activities of the business entities. Advantages of PR based on Corporate Social Responsibility Credibility Organization activities related to CSR are not always regarded by the society or other stakeholders, as a source of genuine actions by the Company for the benefits of the society and environment at large. Thus, there are certain reservations and doubts that surrounds continuously in the mindsets of such peoples regarding the genuineness of such CSR activities by the Organization (Bitesizepr.com) . However, presence of strong and fruitful PR by the organization helps it in removing those doubts from the mind of such peoples most specifically. As the PR has strong foothold among the masses and societies, therefore, in order to rise the credibility level of any CSR activities carried out by Company, the Public relations department and contacts of the organization, directly gets involved in highlighting, selling, promoting and advertising that particular actions or activities undertaken by the Company for the betterment of the society and thus, this actions of PR ultimately raises the credibility level of Public and society on such CSR activities of the Company. Target Market With the help of strong and diversified PR, an organization can specifically target or aim any definite market in pursuance of its CSR activities in those market areas. As a result of such activities, the overall image, standing and reputation of the organization would enhance in those particular regions that might have not known about such organization previously. PR would help organization CSR programs and activities with the help of its connections in those areas in order to create positive awareness about activities of such organization and the organization itself. Firm Foothold in difficult areas of society and environment Another advantage of PR on the CSR of organization structure would be, now the organization can extend its overall circumference or spectrum of CSR activities with the support and positive coordination of PR connections. As a result, now the organization in collaboration with its PR, can support certain difficult or stringent areas of societies that particularly need the key Corporate efforts in order for comprehensive well being of the society and its people. For example, a construction of a bridge in the village vicinity that is surrounded in some mountainous region and that do not have any shortest possible routes to urban areas to meet up daily and basic needs. Thus, the construction of such bridge would ensure the proper flow of traffic in and out of the village, saves the time, energy and efforts of the villagers and now they can meet up their basic life requirements with certain easy and less complexity. A considerable role of powerful PR of organization would be to result in the arrangement of sufficient number of sponsorship and associated members in order to help the corporation in achieving this CSR goal in effective manner. Image Building Effective PR directly facilitates the organizations in developing positive and good image and standing of the entire organization among the society at large and it stakeholders. A strong current image of the company is an insurance against any future misfortunes or disadvantages. And with strong PR, the overall activities of the organization can accrue favorable results and current and future image of Company, not only in the area of CSR but the other external affairs of the Company as well. Cost Last but not the least, the cost of PR on the shoulder of any organization is very minimal when we considered the overall effects of its beneficial results and outcomes on the face of the Company. Therefore, it’s up to a firm that is can employ certain PR agencies and then spend millions of money on such PR connections, but for smaller organizations, this form of communication and relationships may be the most beneficial and affordable alternative means available (Team BMS, 2011) Potential Risks of PR based on Corporate Social Responsibility When the going gets tough, the tough hire public relations people. And sound risk management means you don’t wait for the disaster to strike, you have a team on stand-by that can assist your company to protect its image (Germond). However, there are some potential risks associated with PR for any particular organization, which are discussed as under; Power to the Masses There is always a risk presence when the Company relies mostly on the elements and components of its PR for the fulfillment of various CSR activities under its name. One of such risk is the possible threat of misuse of the power assigned by the Company into the hands of masses of public authorities. The public officials may misuse such powers against the Company in its activities of CSR for any reasons, including, if they are not happy with certain performances level of the Company or its management in any of CSR activities or other operational process. Thus, availability of considerable power to some of the public officials as a result of the strong PR of the Company, can also portray significant risks on the Company overall image and standing (Regester and Larkin). Hard to Measure actual Success One of the potential risks associated with PR in CSR sector of the Company, is that the success or the efforts of the PR in the ultimate development and establishment of the organization cannot be measured in actual terms and thus, the overall benefits or the loss that has been accrued by PR connections of the entity cannot effectively utilized by the organization in projecting the future pathways of success or modification of the entity as measuring the success level of PR on organization is an arbitrary aspect and thus cannot be measured with the help of any yardstick. Risk involved in selecting proper PR Media As the spectrum of PR is vast enough to include various channels and information flows under its umbrella, therefore, at times it becomes very difficult for the organization executive level staff in choosing the best possible PR medium that will dynamically and most favorably help the organization in achieving its goals towards various functional and societal areas, specifically, CSR programs and activities. Miscommunication or Lack of Communication The dynamic function of PR in any organization specifically relates to the flow of information, data and other communication flows that must be directly established, maintenance and sustained on consistent basis in order to pass the informational flow to the intended recipient, which the organization wants to receives information, but, as the humans are prone to error and certain other communication mistakes, either intentionally or unintentionally, therefore, there is an always potential risks present in the correct flow of information cycle between the intended recipient and sender. Thus, any valid, confidential and private information or data transmission towards any incorrect or unknown recipient of the Company in any of the functional unit of the business can adversely affect the ultimate existence of the organization and its components. Therefore, in a nutshell, the role of PR is of core importance for any organization setup around the world, especially in the development and establishment of strong practice of CSR by the organization. But, on the other hand, it does have its various disadvantages and risks associated on the overall image of the organization, which must be cater for on logical. timely and valid basis by the management personal of the Company. References or Bibliographies Yann, Arthur. What Is Public Relations? PR Definition: PRSA Official Statement. Prsa.org. N. p., 2014. Web. 3 May. 2014. Cipr.co.uk,. What Is Public Relations? | Chartered Institute Of Public Relations. N. p., 2014. Web. 3 May. 2014.  Pria.com.au,. About Public Relations - Public Relations Institute Of Australia. N. p., 2014. Web. 3 May. 2014. Fallon, Nicole. What Is Corporate Social Responsibility?. BusinessNewsDaily.com. N. p., 2014. Web. 3 May. 2014. Cadbury, A. (1992). Report of the Committee on the Financial Aspects of Corporate Governance (1st ed.). London: Gee. Corporate governance - OECD. (2014). Oecd.org. Retrieved 19 April 2014, from http://www.oecd.org/corporate/oecdprinciplesofcorporategovernance.htm Bitesizepr.com,. What Are The Advantages Of Public Relations? | Bitesize PR - Cheap PR For Small Businesses. N. p., 2014. Web. 3 May. 2014. Team, BMS. Does PR Have Both Advantages And Disadvantages? | BMS.Co.In :: Bachelor Of Management Studies. Bms.co.in. N. p., 2014. Web. 3 May. 2014. Germond, Nancy. Public Relations Risk Management | Finance > Insurance & Risk Management From Allbusiness.Com. Allbusiness.com. N. p., 2014. Web. 3 May. 2014. Regester, Michael, and Judy Larkin. Risk Issues And Crisis Management. 1st ed. London: Kogan Page, 2002. Print. Read More