Rapid Rise of Social Media Tools and a Shift to a Stakeholder Society Issues - Case Study Example

Topic: Due to the rapid rise of social media tools and a shift to a stakeholder society, are Public Relation practitioners witnessing a new model ofPR Social Media tools are changing the way of marketing and lead generation, bringing individual relevancy to communication efforts and at the same time fulfilling marketing criteria and legal obligations. There is need to comprehend and integrate social media plan to PR initiatives (Flanagan 2010). The top three critical issues faced in corporate communications are how to use communication as a tool to attain business targets, high performance with limited resources and lead amidst the aggressive populism. Trust building both internally and externally, reputation management and transparency are the hallmarks of successful PR initiatives besides “positioning the CEO”. Another issue is how to engage various stakeholders on problems and planning process in the changing technological environment (Goodman 2010). There exists a history of the notions of public relations models. Eric Goldman [1948] offered a contrast of “the public be fooled” and “the public be informed” in the context of public relations. For describing the two types of public relations, the terms symmetrical and asymmetrical were employed to state the aim of public relations as struggling for equilibrium against unbalanced communication and impacts. There are four models specified of public relations in its history. The press agents in the middle of the nineteenth century represented the first model of full time practitioners of public relations, practicing the publicity model of PR for heroes of that time (Grunig 1992, 287). The second model of public relations, the public information model, voiced the interests of the organisations and the government against the muckraking journalists. Ivy Lee was one such historical figure representing the public information model by stating facts to the popular audiences about the activities of organisations he worked for. Third model is the one way asymmetrical model enabling one-way communication. It is not based on research about public reaction; it practices manipulation and persuasion to win the favour of audiences. Fourth model is the two-way symmetrical model enabling two-way communication to resolve issues. The two-way symmetrical model is a positive model as it can be measured. It is dependable, perfect and valid to be compared with the actual happenings in the PR (Grunig 1992, 288) Presumptions rule over the theory of public relations, depending on the role PR plays. Symmetrical worldview finds PR as a ‘non-zero sum game in which competing organisations or groups can both gain if they play the right game’. Thus, by using the PR tool issues can be handled for the benefit of all stakeholders (Grunig 1992, 9). Technology has added new paradigms to PR. Those who were “nobody’s” of the past have become “somebody’s” of the present, demanding attention of PR practitioners for promotion of brands. A customisable valuation algorithm has been created to identify the new stakeholders influencing the company products through social media platforms. The index of influencers can help PR practitioners in strategising a complete social media approach on maximising brand value (Booth 2010). Carneiro et al. (2010) have referenced Petrobras’ study of publics wherein an analysis of theories on stakeholders and publics has been made to identify the problems that might come in future communication planning. A new model of PR has replaced the traditional media through a list of social media tools enabled by technology. Technology has changed the meaning of PR with Twitter, blogs, podcasts and YouTube videos. Most of the information reaches the stakeholders through internet and World Wide Web. A vast network of digital, computer-based and networked-enabled satellite technologies, mobile phones and video news has impacted the PR practices and policies, functioning as standard social media tools. The network-enabled technologies are wired and wireless technologies covering the globe via the Internet and World Wide Web (Pavlik 2008). PR is one of the four major areas bearing the impact of technology on its practitioners. The way of doing PR has changed with regard to creation and delivery of messages and content. This theme is illustrated best through the examples of Blogs, Twitter, Email Trends, Texting, Mobile Media, and Google Scholar (Pavlik 2008). All PR fields have not been positively impacted by the changes affecting the practices. Some of the social media tools are: Blogs According to the 2006 Annual Euro RSCG Magnet and Columbia University Survey of the Media, practices of public relations particularly related to news media, have developed due to the internet and the World Wide Web. Journalists also agreed that Weblogs have bright prospects in the expansion of information at corporate scale. A survey of the media was conducted on journalists using blogs by the 11th Annual Euro RSCG Magnet and Columbia University, which found that: • Blogs were used for work-related tasks such as researching for story ideas by 70% of journalists. This fact was acknowledged and confirmed by 53% of journalists. • For researching and referencing purposes and getting at the sources, 43% of journalists used blogs. • For finding sources 36% of respondents used blogs. • Most interesting is the information that 33% of journalists used blogs as a means of discovering breaking news or scandals. Only numbered blog-using journalists are using this new medium by posting to blogs or writing their own (Pavlik 2008). The impact of blogs on public relations has been recorded in research, which point out that standard in writing is still a crucial determinant of forceful communication irrespective of the medium. Twittering is yet another tool used to send latest text messages to blogs via mobile phone (Pavlik 2008). Implications for Content or Messages It has implications for content or messages disseminated and used in public relations. Blogs, podcasts and Web sites in general, all offer a medium for disseminating messages to a range of publics.  Wide use of audio and video files – podcasts, vodcasts has become a fashion.  Moreover, these media can structure the messages themselves.  Text messaging via cell phones has emerged as a dependable means to reach mobile publics. News releases must also be customised to mobile phone and mobile media formats.  Embedding links given in the content make it interactive with instant reactions. Such interactive media like online games are significant tools in public relations through sponsorship (Pavlik 2008). Web 2.0 Web 2.0 has changed the environment for communication. It is not just another addition to the tool kit but is a totally new way of thinking. PR professionals have to reset their strategy for meaningful future relations with clients and employers, starting from planning to counsel to media relations and crisis management. The communication equations have changed with the using of vertical media and shift in focus from objectivity to supporting the reported news. The three revolutionary elements include electronic copy of the news, online database of crucial information and weblogs, all commenting on the published news differently. Stakeholders gather on a common platform to share views creating challenges for PR professionals to develop means to combat the collective power of stakeholders on the web. The second generation of Web 2.0 technologies has changed the world of new media for PR (Pavlik 2008). Video News Releases The Video News Release (VNR) has gained added significance of developing into a modern digital PR tool enabling journalists to view or download VNRs online before using them. VNRs can be vetted before accepted for transmission. The usage scale of VNR can be confirmed because of its electronic digital tracking. The digital convergence has enabled viewing the videos through YouTube and through search engines. Organisations can communicate directly with stakeholders without traditional media filters (Pavlik 2008). Emerging Message Techniques The list of social media tools is increasing with yet another tool called “mash up” media, evolved from the merging of two sets of data. It can sort data by type for exact information capture. PR media can measure VNR usage through TeleTrax by using electronically embedded “watermark” for effective monitoring (Pavlik 2008). Social Networking Sharing of social networking sites like YouTube and MySpace has created huge paradigms for PR. It has increased challenges for organisations for the crucial role played by transparency, quickness and clarity in response (Pavlik 2008). All social media tools stated above have brought into focus the crucial role of public engagement. Public Engagement The communication challenges faced by stakeholders in the current environment have created the context of a new model of public engagement emerging from public relations. All participants have become a part of the media due to the democratisation and socialisation of the media with technology-enabled tools. Public engagement is so intense that any breaking news is captured on Twitter first than on any news agency. The whole credit of public engagement does not go to technology and internet; overall the society and people are interacting as per their preferences and creating their groups. As per Edelman Trust data (July 2009), the stakes of employees and customers have gained equal importance as those of shareholders and other governance participants. Public demands transparency in all functions which is getting realised through and supported as well by digital media (Edelman 2009). There are companies like Starbucks, creating digital platforms for the participation of public through My Starbucks Idea for communicating with customers by just listening to customers’ suggestions. Companies are benefitting from listening and improving their services for all stakeholders including customers. It is a new world where all participants have become publishers. So, not listening to the public opinion and comments can create sudden detrimental risks for all businesses that have a digital presence. Therefore, commitment to listening has become crucial for success in delivering services (Edelman 2009). Edelman (2009) has specified the seven behaviours of public engagement, which are: 1. Listen with new intelligence 2. Participate in conversation: real time/all the time 3. Socialise media relations 4. Create and co-create content 5. Champion open advocacy 6. Build active partnerships for common good 7. Embrace the chaos Employees’ engagement has entered an age of personal social responsibility, which could because of challenging business environment and uncertainties related to job. Otherwise too, it has been noticed that employee engagement practices help a business to overcome recession and become robust (Edelman 2009). Public engagement has created new networks of influences and special online forums leading to a world of communication through blog, Twitter and Facebook, impacting all walks of life. Interestingly, regulators keep themselves away from the intelligence derived through public engagement, stating, “It doesn’t apply to us” (Edelman, 2009, 29). As stated above, listening is very important to derive business-related benefits from public engagement. Actual, appealing and transparent engagement with public can create brand awareness, customer loyalty and enhanced sale. Listening to the voices of all stakeholders has attained greater significance (Edelman 2009). Evolving through public engagement, the corporate communication function is distinctly set to play the role of catalyst in the new environment. Given the reach to stakeholder intelligence and a commitment to communication, the PR practitioner can help empower corporate culture and stakeholder confidence (Miller 2010). The changed environment has presented new opportunities and challenges for CEOs. Stakeholders’ demand for more transparency on financial matters, mergers & acquisitions and personal information has risen. The dividing lines between the roles of CEOs and PR teams have got mixed; no more are roles separate than they used to be. CEO’s used to manage shareholders and employees. Traditional roles are no more relevant as all stakeholders share their experiences through social media tools. The public relations managers of corporations have become quality assets for providing increased communication and creating a positive image of the companies; the importance of their roles is going to be recognised. Communication executives are supposed to be excellent in reactive, proactive, and interactive – all modes. The presence of PR Managers during the board meetings has gained value. CEOs expert them to be extra smart with a sharp eye to visualize the long-term view for the stakeholders’ interest (Authentic Enterprise 2007). CEO’s are finding an opportunity in the change brought about by non-traditional media although at the same time there are inherent challenges also. Stakes on company’s reputation have increased. Other issues like social responsibility, the environment, humanity cause, and employee communications have gained importance besides traditional profit & loss functions. The scale and scope of communicating with employees has increased significantly to create awareness on company’s vision and values. Any decision making process requires partnering and dialogue with other stakeholders outside the company, including regulators, NGOs, union leaders, environmental groups and other public interest groups, depending on the industry. Internal communication has become more significant than it used to be for saving the image of the company and its top brass (Authentic Enterprise 2007). Trust relationship is very significant in the time of crisis which needs to be developed before a crisis occurs. Environment should be open to listening when a crisis hits (Mazzei and Ravazzani 2010). Public integration can add value through different PR initiatives like marketing but it should be related closely to strategic planning. A lot depends on an organisation’s culture and the added value from the customer of the product. Very crucial is the creation of new understanding about the role of PR to senior management. PR practitioners must ask themselves how they can become catalysts of sustained integration resulting in increasing the value of PR. The strength of PR lies in effective social media tactics implemented by PR. The traditional PR skills are still helpful in bringing transparency and serving the government causes by communicating with the public at large on stands taken by the government (Wright 2010). The value of PR cannot be realised in terms of ROI, according to Schlesinger (2010), until we find a cause and effect relation in the marketing initiatives on the Web 2.0. PR can provide a real time graph of a company’s performance through online comments and postings. Uncertainties should breed innovations by PR practitioners. The PR practitioners can eliminate doubt regarding innovation by launching experiments at small level to gauze public response. CEOs consider the feedback of PR s more trustworthy than other channels; they can better support the CEO’s mission and aims than sponsored advertisements. Customers’ engagement can also be made through internal communications by engaging first the employees in sincere and honest HR effort by corporate PR practitioners. References Booth, Norman & Matic, Julie Ann. 2010. Mapping and Leveraging Influencers in Social Media To Shape Corporate Brand Perceptions. In: corporate communications international, June 4-7, 2010 London. Available from: www.corporatecomm.org/pdf/CCIAbstracts2010.pdf [Accessed 27 October 2010]. Carneiro, Eraldo., Costa, Marcos André., Petrobras, Mário Mendes Neto 2010. Petrobras’ Study of Publics: A Step Towards Achieving the Company’s Strategic Vision for 2020. In: corporate communications international, June 4-7, 2010 London. Available from: www.corporatecomm.org/pdf/CCIAbstracts2010.pdf [Accessed 27 October 2010]. Edelman 2009. Engagement in the conversation age. Edelman Public vol. 2. Available from: www.sixtysecondview.com/.../edelman-public-engagement-in-the-conversation-age-2009.pdf [Accessed 27 October 2010]. Flanagan, Wendy K. 2010. Social media marketing. In: corporate communications international, June 4-7, 2010 London. Available from: www.corporatecomm.org/pdf/CCIAbstracts2010.pdf [Accessed 27 October 2010]. Goodman, Michael B., 2010. Corporate communication in times of stress. In: corporate communications international, June 4-7, 2010 London. Available from: www.corporatecomm.org/pdf/CCIAbstracts2010.pdf [Accessed 27 October 2010]. Grunig, James E.,1992. Excellence in public relations and communication management. IABC Research Foundation. Lawrence Erlbaum Associates, Inc. Available from: http://books.google.co.in [Accessed 29 October 2010]. Mazzei, Alessandra., Ravazzani, Silvia. 2010. Manager-employee communication during a crisis: the missing link. In: corporate communications international, June 4-7, 2010 London. Available from: www.corporatecomm.org/pdf/CCIAbstracts2010.pdf [Accessed 27 October 2010]. Miller, Rod. 2010. Developing the Culture of trust in which large-scale gains become possible. In: corporate communications international, June 4-7, 2010 London. Available from: www.corporatecomm.org/pdf/CCIAbstracts2010.pdf [Accessed 27 October 2010]. Pavlik, John V. June 2008. Mapping the consequences of technology on public relations. Institute for Public Relations. Available from: http://www.instituteforpr.org/essential_knowledge/detail/mapping_the_consequences_of_technology_on_public_relations/ [Accessed 25 October 2010]. Schlesinger, Leonard A. 2010. Demonstrating the value of PR: a word with Leonard A. Schlesinger. Ketchums online magazine, no. 1. Available from: http://www.ketchumperspectives.com/archives/2010_i1/full.php [Accessed 25 October 2010]. The Authentic Enterprise, 2007. An Arthur W. Page Society Report. Available from: www.awpagesociety.com/.../2007AuthenticEnterprise.pdf [Accessed 25 October 2010]. Wright, Donald K. 2010. Adding value through PR integration. Ketchums online magazine, no. 1. Available from: http://www.ketchumperspectives.com/archives/2010_i1/full.php [Accessed 25 October 2010]. Read More