The Role And Objectives Of Pr

Published Date: 02 Nov 2017

In this chapter, literature with relevance to the area of PR is reviewed and presented. The theories connected to the research area will be reviewed and presented in a conceptual framework, which will clarify the main subject matter and help in data collection.

Existing literature in the area of PR is vast and numerous. To be able to answer the research questions and reach our purpose, the search of relevant theory and models has been selectively done. Some of the selected theories approach PR in general terms, while other theories aim at more specific aspects within the area of PR. A conceptual framework is necessary to conduct this research such that selected theories fit into the focus of this study.

1.1 Role and Objectives of PR

1.1.1 PR: Definitions

The term PR within area of research is vast and wide with several definitions and what it actually involves. PR practitioners tend to view their activities as being strategic, while on the other hand marketers view PR as being a mere tactical ingredient of the promotion mix. This confusion and conflict of opinion has hindered the development of the PR profession to the extent of adding to the blurring of what exactly includes the area of PR (Lages & Simkin, 2003).

A review of modern PR history gives a number of definitions, metaphors, and approaches to the field (Hutton, 1999). In the first two decades of this century, the prevailing theme in PR had been "using communications to build and hold goodwill". However, the term has now evolved and a review of recent PR definitions in literature and academic journals suggest a number of common themes, but there is still no true convergence. The most common components in the definition of PR appear to be "management", "organization", and "publics".

A paradigm of a widely quoted definition is;

"Public relations is the management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance" (Hutton, 1999).

Lages and Simkin (2003) propose that PR scholars conceptualize PR as a management discipline which is a change from the traditional view of PR being mainly a communication activity. Other authors referred by Lages & Simkin (2003) agree with Hutton (1999) and define PR as the "management of communication between an organization and its publics"; and emphasize that: "this definition equates public relations and communication management". PR is also defined as the "management function that identifies, establishes and maintains mutually beneficial relationships between an organization and the various publics on whom its success or failure depends". Lages & Simkin (2003) further define PR as "relationship management", which implies that the focus of public relations is the management of an organization’s relationships with its publics through the four step management process of analysis, planning, implementation and evaluation. In this context, PR is used to communicate strategically (ibid).

Frank Jefkins (1978) define PR as:

"Public relations consist of all forms of planned communication, outwards and inwards, between an organization and its publics for the purpose of achieving specific objectives concerning mutual understanding".

This definition points out that PR should be planned and organized similarly as production, sales and advertising programmes. The main objective, which is mutual understanding, means that the PR practitioner seeks to understand other people and their attitudes, as well as to create an understanding of his organization and its people, policies, products, or services. Such interaction is the essence of communication. By the term objective, the author means that the system of management by objectives is implemented to deliberately plan and sustain PR. Furthermore, a separate PR strategy can and should be planned, budgeted and executed alongside marketing. Ideally this should be part of a complete management system, using PR to achieve corporate objectives (ibid).

1.1.2 PR: Objectives and Strategies

Dolphin & Fan (2000) discuss over whether PR is seen as a strategic function by corporate management. Their research indicates that a communication strategy in necessary for any organization. It needs to be managed and formulated by the information director in close cooperation with the executive team. When shaping PR strategy, the nature of the organization to its vision, mission and to its key stakeholders should be taken into consideration. The role of the information director is to act as a bridge between his organization and its audiences, and in this way create and sustain the corporate image and reputation. PR obviously should be linked closely to the organization’s board room through the practitioner as it plays a key role in the strategic planning of an organization (ibid).Jefkins (2000) describes the ideal organization structure as one which has an autonomous PR department which is accountable directly to the CEO. However, if the PR executive is placed between the marketing, advertising or sales promotion departments instead, the scope of PR within the company can sternly get limited.

Lages and Simkin (2003) argue that if the positioning of PR was to be as a management discipline, it would imply that the PR activities are broader than both the communication techniques and the dedicated PR programs such as media relations. However, PR might not be efficient, as argued by many, when practitioners master technical skills without properly understanding when and why to use PR to enhance and make the organization more competent in terms of communication (ibid).

Wells and Spinks (1999) portray community relations as being among some of the most important activities of an organization. The founding of ongoing, reliable and respected external communication processes should be considered as a priority. This involves relationships with customers, for thousands of satisfied customers might never make an argument, but one unsatisfied customer probably will. As explained by Worcester (1997), the attributes of the bank’s image in the eyes of its publics are highly dynamic and never stagnant. Even if it looks static, it is hardly ever so.

The importance for effective communication with many audiences such as its customers, clients and employees is obvious to most organizations. However, many of them fail to notice the importance of good communication with the community (Wells and Spink, 1999). Each organization has its own priorities, which obviously reflect its mission, and as such organizations divide their responsibilities differently. Some practitioners consider communication that aim at increasing sales and revenue, while also bringing in new business,

PR objectives as stated by Wells et al. (2003) are designed to alter public’s knowledge, attitudes, and behaviours related to a company, a brand, or an organization. These objectives put emphasis on creating credibility, delivering information, and building favourable images. Typical PR objectives include:

Creating corporate brand

Redefining or shaping a corporate reputation

Positioning or repositioning a company or a brand

Disseminating information about a brand, a company, or an organization

Providing information about a product or a brand

Changing stakeholders attitudes, opinions, or behaviours about a brand or a company

Creating buzz-word of mouth

Involving people with a brand (ibid.)

1.1.3 Defining Publics

Worcester (1997) highlights the necessity of identifying the publics of the organization. Every bank should carefully evaluate the audiences it is to deal with in order of importance. In many financial institutions for instance, the customers often stand this position. Expenditure decisions can then be based on relevance if the organization knows accurately who to target first. Beavers-Moss (2001), as cited by Plessis et al. (2006), states that once the various publics of a bank have been identified, relationships must be established in accordance with each group with regard to their needs and wants.

Wells & Spinks (1999) recommend organizations to establish ongoing communications with the public community at large. Schultz & Barnes (1999) however suggest that the relationship with specific publics should be given more importance. Once an organization’s publics has been defined, whether as being narrow or wide, segmentation can be done on basis of demographic, geographic or psychographic. Other tools such as covert power segmentation can as well be used, under which people within a community who exercise influence of a variety of issues or decisions are identified. Reputation segmentation on the other hand deals with classifying people who exert influence within social networks.

1.1.4 Proactive PR versus Reactive PR

PR can de classified as either proactive or reactive. Proactive PR is guided by a company’s objectives and is oriented offensively rather than offensively. Proactive PR is seen as opportunity seeking rather than problem solving. Being integrated with other promotional activities, the main role of proactive PR is to endorse the products and services of an organization by giving them additional exposure, newsworthiness and credibility. The last factor, credibility, contributes to the effectiveness of proactive PR to a large extent. On the other hand, reactive PR describes the conduct of public relations in response to external influences. It is undertaken as a result of external influences such as shifts in consumer attitudes, changes in government policies or competitive actions amongst others. Reactive PR mostly handles changes that have negative impacts for the organization, and aims at repairing the company’s goodwill, preventing market erosion, or regaining lost sales (Shimp, 2000).

1.1.5 Hutton’s Framework for defining public relations

Hutton (1999) has developed a three dimensional cube to allow a better analysis of PR roles through a framework. It consists of three dimensions, namely interest, initiative and image, which explain the significant differences among the various orientations of PR.

Interest

The interest dimension can be described as the "balance of intended effects". It allows a perspective of what degree PR functions emphasize on client interest versus public interest. In simpler terms, it describes whether the main focus of the organization is on direct customers or on the public in general.

Initiative

The initiative dimension shows the extent to which the PR function is reactive versus proactive. This can be measured by PR activities that aim to forecast and help to shape up emerging organizational issues.

Image

The image dimension describes to what extent the organization is focused on perception versus reality, or image versus substance. This aspect reveals the overall focus of an organization’s philosophy, thoughts and actions.

PR activities under this framework reveal six distinct orientations of ht PR practice, namely; persuasion, advocacy, public information, cause-related public orientations, image-reputation management, and relationship management.

Persuasion

Persuasion includes the philosophies of PR that are proactive and geared towards persuading publics to think and act in a way that is beneficial to the organization. PR campaigns that are designed to focus on promotion or to create consent lie under this category, demarcating each other mainly by their strategic choice of tactics rather than their basic objective (ibid).

Advocacy

Similar to persuasion in its objectives, this category is also different in its level of initiative and in the sense that it arises subject to controversy or active opposition. It defends the organization in the public’s court of opinion, rather than a court of law. The type of strategy and tactics used is guided by the controversy or active opposition. The reactive nature of advocacy public relations suggests that a PR function may exist only if triggered by a crisis or any other catalyst. Subsequently, advocacy aims at persuading relevant publics to think or act in a certain pattern (ibid).

Public Information

This category refers to the style of PR in which the organization initially serves as an information provider and educator. Some government agencies and trade associations or other member service organizations perform likewise (ibid).

Cause related public relations

Cause related PR is usually as much proactive as persuasion in its initiative as it aims to persuade the publics to think or act in specific ways. On the other hand, it is similar to advocacy in the sense that it is also triggered by a public event, or is otherwise non existent or reactive. In simpler terms, it is a complement of advocacy as long as it aims at serving a broader audience rather than any targeted group or individual based on interests. Putting emphasis onto strong and unorganized publics and media by means of lobbying and publicity is a major distinguishing aspect of cause-related PR. Some organizations that have adopted cause-related PR include the Red Cross and Amnesty International (ibid).

Image/ Reputation Management

This dimension focuses on the image or reputation of an organization based on its popularity or goodwill as a supplier, buyer, partner, employer, lender, citizen or investor.

Image/ reputation management at first glance looks like publicity, spin control and the manipulation of symbols. However, reputation is considered to be less superficial as compared to image, with apparently greater focus on reputable behaviours as the foundation of a good reputation (ibid).

Relationship Management

This aspect refers to the role of PR as a tool to identify mutual interests, values and benefits between an organization and its publics. This approach aims to operate on behalf of the client organization in a responsible manner, taking note of public interest, in belief that public support and agreements are crucial for the achievement of long term objectives. Relationship management focuses mainly on mutual trust, compromise, cooperation, and as far as possible, creating win-win situations between the organization and its publics (ibid).

1.1.6 Hutton’s hierarchy of public relations

Hutton (1999) has put forward a hierarchy framework for the primary roles, functions, and tools of PR. The advantage with such a hierarchy is that it allows scholars to make the difference between the umbrella definition f PR and its primary objectives within context. It also encourages a distinction between the roles and functions of PR, which are not end goals on their own but means to achieve a targeted object.

Figure 1: Hutton’s hierarchy of public relations

Source: Hutton (1999)

1.2 Functions and tools in PR

1.2.1 Types of PR

In PR there are specific types of relations which all have reference to relationships with various publics.

Media relations

Develops a relationship with the media and investigates about who might be interested in the organization story. The term "public relations" is associated with publicity by most, which highlights the importance of this media function. The organization provides appropriate information to the media to initiate publicity. The PR person’s reputation for honesty, accuracy and professionalism is the catalyst for a successful relationship with the editor. If this reputation is tarnished or lost, the role of the PR person as a liaison between the organization and the media becomes ineffective (Wells et.al. 2003)

Employee relations

The employee relations programmes communicate with employees. This function belongs to both PR and Human resource management. These programmes are often referred to as internal marketing (ibid).

Financial relations

Financial relations is all about communication efforts targeted at the financial community, such as press releases sent to business publications, meetings with investors and analysts, and annual reports which government require from public organizations (ibid).

Corporate relations

These programmes focus on the image and reputation of the organization. It aims at persuading the public towards a positive perception of the company. The goal of reputation management in a corporate relations programme is to enhance the trust of stakeholders with regard to the organization. Since corporate reputation is a perception, it is earned though deeds, not created by advertising (ibid).

Public affairs

Public affairs, also termed as issue management, concentrate on corporate communication with governments and regulations. In addition, these programmes also monitor public opinion about issues related to the organization’s interest and develop programmes aiming at communicating to, and with the public about these issues (ibid).

1.2.2 PR tools

There are three categories that divide PR tools according to Wells et.al (2003), and these depend on the amount of control the company has in its communication. The tools which can be utilized in PR are well known tactics in organizations and hence are not described in further terms.

Controlled PR

This category refers to situation where a company has control over the use and placement of their PR tools, this means that they utilize controlled channels. Examples of tools in this category are:

Publications: brochures, flyers, news magazines

Annual reports

Displays, exhibits

Product placements

Speakers

Photographs

Staged events ( open houses, anniversary celebration)

Uncontrolled PR

When companies hand over the control of their use and placement of their PR to media, they are using uncontrolled channels. Examples of tools in this category are:

Publicity (radio, TV and print media)

News releases (print, audio, video, e-mail)

Press conferences and media advisory (media kits, fact sheets, background information)

By-lined articles

Talk and interview shows

Semi-controlled PR

When the control of PR activities is controlled and initiated by the company while other aspects remain uncontrolled, they are utilizing semi-controlled channels. Examples in this category are:

Special events and sponsorship

Interpersonal communication

Electronic communication (websites, chat rooms)

Word of mouth

When using the above mentioned tools, it is necessary that the PR team work closely with the marketing department. PR tends to complement advertising activities in an organization. While advertising is pushing a bank’s desired message to its target audience, PR helps to sprinkle the message with credibility. Banks often realize the importance of PR activities, but sometimes utilize them in different ways in their marketing mix (Beavers-Moss, 2001).

1.2.3 The PR Toolkit

This framework has been developed by Phillips (2001) to set up and evaluate PR activities. The author proposes a five step approach to research and evaluation of these activities. The steps are:

Audit research about the organization, its products and services, and audit of communication with its audiences. Research can help in identifying these as well as record the progress of the campaign and its outcome. Consulting existing research saves time and money. The strategic role of PR can be demonstrated at this stage by involving senior management.

Objectives. These must reflect the overall strategic business goals of the organization. PR must be coordinated with advertising, direct marketing and sponsorship after the identification of the target audience, the medium, the desired response and the timing.

Strategy and plan. The level of measurement must be decided. Output measures how the message was transmitted and who it reached. Out-take measures to what extent the message was remembered and understood. Outcome measures to what degree PR activity changed opinions, behaviours or attitudes.

Measurement and evaluation. Measures the direction of activities. Typical questions involved are; are we getting there? And if so, do we stay on course? If not, then, Should we adjust tactics, strategies or objectives?

Result. A review of results based on the objectives set previously; what did we learn that can be fed back into the planning loop? What worked and what did not? What can we reuse next time?

In addition, Lages and Simkin (2003) support the importance to use overall planning, execution and evaluation of an organization’s PR communication with external as well as internal publics.

1.2.4 PR: Effectiveness and evaluation

PR effectiveness and evaluation is based on setting measurable objectives in the beginning of the planning, just like advertising (Wells et.al, 2003). It is critical for most PR practice to monitor, measure, evaluate and plan content with relevance to its context to achieve competitive advantage (Phillips, 2001). PR practitioners, according to Wells (2003) must track the impact of a campaign in terms of output, how many new releases lead to stories or are mentioned in news, and outcome like change in attitudes or behaviours. However, there is evidence that there is a lack of knowledge on how many evaluation techniques there are, and how much it is worth to make use them so as to provide the organization with good evaluative information (Phillips, 2001).

Wells et.al (2003) provides a guideline with common types of evaluation techniques used in PR:

Output production. Numbers of PR products such as news releases or event activities generated.

Distribution. Number of media outlets receiving PR products such as TV stations, newspapers.

Coverage. Number and size of clips, column inches, seconds, or minutes of time or space.

Impressions. Media placements multiplied by circulation or broadcast reach.

Advertising value. Equivalent ad cost of time or space.

Systematic content analysis. Positive or valence (whether the stories or mentions are more positive or negative), key messages (the idea in the stories), sources, and prominence.

Outcome Objectives achieved:

Awareness. Aided and unaided to recall the target audience.

Attitudes. Perceptions and preferences or intent of purchase.

Behaviour. Did they do what you wanted them to?

It is important for the bank to indentify what outcome is expected from the PR activities in terms of gain. If the objectives are defined explicitly and measurably, they are easier to achieve (Beavers-Moss, 2001).

The Effectiveness Yardstick model

Lindenmann (1993) has developed a set of guidelines or standards that simplifies the process of measuring effectiveness in PR activities, which PR practitioners can adopt to measure PR effectiveness (Macnamara, 2005). The guideline is called the "Public Relations Effectiveness Yardstick". The process consists of two steps; first, setting PR objectives, and then determine at what levels to measure PR effectiveness.

Step one: Setting objectives

What are the goals and objectives of the PR program? What the PR program is seeking to accomplish?

In PR, what you seek to accomplish usually falls into one of these four categories;

You, or your organization, are trying to deliver certain messages, themes or ideas.

You would like these messages or ideas to be reached by a target audience.

You envisage distributing these messages to your target audience though specific communication channels.

Step two: Determining levels of PR measurement

Once PR objectives have been set, you need to decide what exactly you want to measure. This guideline points out three different measures of PR effectiveness.

Level 1: Basic level

It measures outputs. Examining how well PR people present themselves and how they handle PR activities or events. PR practitioners must measure the amount of exposure the organization received in media, the total number of placements, the total number of impressions, and the likelihood of having reached specific key audience groups. PR practitioners mostly use content analysis techniques to measure outputs, that is, to track or measure publicity placements. Also, simple public opinion polls are used to find out if target audience groups have been exposed to certain messages delivered.

Level 2: Intermediate level

At this level, a more sophisticated approach is used. PR practitioners measure whether or not target audience have actually received the messages delivered, that is, whether their attention was captured or not, whether the message was well understood or not, and whether or not the messages have been successfully retained in any shape. In order to measure the outgrowths, practitioners normally have recourse to a combination of qualitative and quantitative techniques, using methods such as focus groups, depth interviews with opinion-leader groups, and extensive polls targeted at key audience either by telephone, face-to-face or mail.

Level 3: Advanced level

This level is the more advanced PR measurement level. When this higher end of the Effectiveness Yardstick is reached, the outcomes such as opinions, attitude, and behaviours change are measured. To measure these, techniques such as before-and after polls; the development and use of experimental research designs; use of inconspicuous data collection methods such as observation, participation, and role-playing; the use of advanced data analysis techniques such as perceptual mapping, psychographic analysis, factor and cluster analysis and conjoint analysis; or conducting of wide-ranging, all-around communications audits (ibid).

Figure PR effectiveness yardstick

Source: Macnamara (2005)

1.3 Corporate reputation and PR

Review of literature in the areas of trust, credibility, and corporate reputation acquired by PR shows that the area is not thoroughly researched. As such, models and theories from existing literature are hard to find. Below are theories relevant to answer the research questions in this study.

1.3.1 Trust and Credibility

According to Seal (1998), trust is based on personal knowledge of the other part in a relationship. However, trust goes beyond possessing information abut each other. Possession of information about someone does not directly match up to trust. Trust necessitates history as a reliable background and is as such endorsed in dependent relationships.

Seal (1998) describes three types of trust in the organizational context;

Contractual Trust means that partners keep their promises whether or not they are based on written agreements.

Competence Trust is where there is the business ability to fulfill obligations.

Goodwill Trust is where the organization can act on the behalf of its clients without detailed instructions.

The collective outcome of building trust and acquiring credibility is reputation (Budd, 2001) as cited by (Ozturk et.al, 2008). PR is a means used to enhance demand for products and services through building credibility (Beavers-Moss, 2001).

Managers in the service sector that are not well differentiated in terms of basic services should acknowledge that a well structured and valuable communication has a strong influence on consumer perceptions. It leads to trust, satisfaction, and loyalty. These communications should be used to enhance relationships, offer the customer useful and needed advice and information, packaged in such a way that is easy for the customer to understand and pleasant to assume (Ball et.al, 2004).

1.3.2 Corporate Reputation

Good reputation is hard to build and cannot be bought, and is at the same time very fragile and easy to lose. Hutton et.al (2001) argued that companies with extensive corporate communication strategies were more likely to have strong reputations. The more a company is focused on managing relationships with non customer publics (reputation management) as its guiding communication philosophy, the more likely it is to have a strong reputation management.

Dolphin (2004) puts forward that any communication that makes an organization more transparent allows stakeholders to appreciate its operation more clearly, making a better reputation possible. The intangible equity in a corporate reputation is the organization’s most lifelong asset. The reputation also allows a competitive advantage for the organization in an ever increasing marketplace. As such a good corporate reputation is an asset of great value. However, it is difficult to measure due to its intangibility and difficult to replicate as well. Corporate reputation of an organization reflects its capabilities as well as information about future performance (ibid).

Today, there is no doubt that corporate reputation is given more attention than before since marketers and communicators are concerned about their companies’ reputation and the advantages associated (Dolphin, 2001). Some clear differences between corporate reputation and corporate identity often cause confusion. Reputation is acquired over time and cannot be manipulated rapidly, unlike image, which can clearly be created and manipulated within a short period of time (Dolphin, 2004).

With today’s ongoing globalization and increasing competitive, bank marketers must know how to protect and uphold their reputation. Good PR can enhance a bank’s marketing and improve its overall competitiveness (Beavers-Moss, 2001).

Image and reputation is described as one of the most vital factors when analyzing consumer perception of service quality in the banking industry. Trustworthiness, tradition and reliability can enhance a favourable image that can in turn positively influence the perception of quality, value and satisfaction (Kangis&Voukelatos, 1997).

1.4 Conceptual Framework

This section aims at displaying a conceptualization for this study in order to help answer the research questions. This conceptual framework consists on a selection of models and theories that best fit to tackle the research topic.

1.4.1 Roles and objectives of PR

Definitions

The area of PR being vast with numbers of definitions, it is hard to give a concrete definition. Instead of narrowing those to using only one definition, this study will compare the collected data against different definitions provided by famous authors, Hutton (1999), Lages & Simkins (2003) and Jefkins (1978), to find out if there are similarities or differences between collected data and selected definitions.

Objectives and Strategies

There are many objectives with the PR strategies, usually these objectives aim at creating credibility, delivering information and building positive images (Wells et.al, 2003). A communication strategy is important for any organization (Dolphin & Fan, 2000).

Jefkins (2000) describes the ideal organizational structure as one having an independent PR department, directly accountable to the CEO. However, if the PR executive is positioned in the marketing, advertising or sales promotion department, the use of PR becomes strictly limited.

Lages & Simkins (2003) explain that PR is a management discipline which is much wider than a communication technique or a specialized program such as media relations. The public opinion is highly dynamic and as such the PR responses used by companies must be managed actively (Wells & Spinks, 1999; Worcester, 1997).

Defining publics

Wells & Spinks (1999) recommend that PR activities should be established wit the community as a whole. The importance of identifying the organization’s publics is emphasized by Worcester (1997), while Schultz & Barnes (1999) point out that specific publics should be targeted.

Proactive PR versus reactive PR

Public relations can be categorized as either being proactive or reactive. Proactive PR is offensive and seeks for opportunities, mainly used to promote products and services. Reactive PR is defensive and problem solving.

Hutton’s framework for defining public relations

This framework proposed by Hutton (1999) is going to be used to analyze the PR practices of organizations. Therefore, it allows identifying the organization’s role in PR, as one of the following:

-Persuasion

-Advocacy

-Public Information

-Cause related public relations

-Image/reputation management

-Relationship management

Hutton’s hierarchy of public relations

The hierarchy of PR is described through a framework constructed by Hutton (1999). This instrument helps when defining the primary purposes and objectives of PR in a given context. It allows an overall picture of PR from the definition to the actual tools utilized. It also merged into other theories and models in the area and supports the overall concept of the topic.

1.4.2 Functions and tools in PR

Types of PR

There are different types of relations which all resume to relationships with various stakeholders. The different types of PR will be describes using the types provided by Wells et.al (2003):

-Media relations

-Employee relations

-Financial relations

-Corporate relations

-Public affairs

The PR Toolkit

The five step framework developed by Phillips (2001) will be used to assess how to set up PR activities and evaluate them. The five steps are:

-Audit research

-Objectives

-Strategy and plan

-Measurement and evaluation

-Result

PR tools

Wells et.al (2003) state a model that differentiates the tools used within PR. There are three types of PR tools, controlled, uncontrolled, and semi-controlled.

Effectiveness and Evaluation of PR

Evaluation needs to be done in order to measure the effectiveness of the PR activities initiated by an organization. There is evidence of a lack in knowledge on how much evaluation techniques there are, and what can be worth to evaluate (Phillips, 2001). A framework by Wells et.al (2003) with common types of evaluation techniques will help to answer how awareness, attitudes, and behaviours are affected by PR activities. The "Public Relations Effectiveness Yardstick" framework proposed by Lindenmann (1993) will help explain how effectiveness can be measured.

1.4.3 Corporate reputation and trust

Trust and Credibility

Well structured communications has strong influence on consumer perception, and leads to trust, satisfaction, and loyalty. Corporate communications should be used to enhance relationships and offer customers advice and information (Ball et.al, 2004).

Corporate reputation

Corporate reputation can allow a competitive edge for organizations in a crowded marketplace (Dolphin, 2000). Managing reputation has developed into an important tool for communication strategists (Dolphin, 2004).

Corporate identity and corporate reputation should be used interchangeably and should not be mixed up (Dolphin, 2004).

Banks marketers should be conscious how to protect and uphold their reputation, since credibility and value is gained from it (Beavers-Moss, 2001).

EMPIRICAL DATA

This chapter will present the empirical data which consists of case studies of two chosen banks, namely; The Barclays bank and The Mauritius Commercial Bank (MCB). An introduction of the background of the companies will be presented followed by the data collected through the interviews. The data case for Barclays is based on the interview with Mr. Feycal Caunhye, the in charge for Communications. In the case of the MCB, the data is based on the interview conducted with Mr. X.

Case One: The Barclays Bank

Introduction

Ever since the organization was established more than 300 years ago, Barclays bank has grown to offer a range of products and services tailored to meet the specific needs of its customers all over the world. As a responsible global institution, Barclays is committed to ensuring the sustainability of the communities in which the business operates, and strives for sustainable relationships with customers and clients worldwide.

Barclays Bank PLC is a banking company incorporated in England having its Head-Office at 1, Churchill Place, London E14 5HP, United Kingdom but they have operations all over the world, with products and services to meet the needs of customers and clients in local markets. Barclays Group Chairman is Marcus Agius, and the Chief Executive is Bob Diamond. They are supported by Barclays Executive Committee and the Board of Directors.

Barclays has over 300 years of history and expertise in banking. It operates in over 50 countries which includes Botswana, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania, Uganda, Zambia, Zimbabwe, Pakistan, Mauritius, Seychelles and employs over 147,000 people. Barclays operates to move, lend, invest and protect money for over 48 million customers and clients worldwide.

The branch registered office in Mauritius is situated at Sir William Newton Street, Port-Louis, and has been founded in 1919 and since it has been playing a key role in the expansion of business in Mauritius. Barclays Bank (PLC) Mauritius has been receiving international recognition by winning for successive years the prestigious international EMEA Finance Award for the ‘Best Bank in Mauritius’ and ‘Best Foreign Bank in Mauritius’ thanks to its exceptional performance on all fronts.

Barclays Bank (PLC) Mauritius has built its reputation and leading position on substantial capital resources, high credit rating and group financial strength and world-class professional expertise. Barclays Bank (PLC) Mauritius, which operates as a branch of Barclays PLC (UK),now forms part of the Global Retail Commercial Banking Emerging Markets and is under the ‘India and Indian Ocean Region’ heading.

Barclays Bank (PLC) Mauritius currently has a network of 26 branches across the country and is present in both domestic and international segments of the financial sector. The bank provides an extended range of services to personal and corporate customers:

Personal services include current and savings accounts, foreign currency accounts, home loans and multi-purpose loans, credit cards, ATMs and telephone banking.

Business services include lending products, trade and export finance and several specialist services such as treasury, foreign exchange and capital markets capability.

In addition, Barclays Bank (PLC) pioneered the offshore sector in 2004 by being the first commercial bank to avail itself of a license to engage in offshore activities. In 2005, Barclays launched the first ever ‘Medium Term Note’ scheme in Mauritius and has a mandate for a second. Barclays Bank (PLC) Mauritius is currently the leading bank in Mauritius for project financing and is poised to remain one of the key players in the Mauritian financial sector.

Public Relations (PR) has always been a dominant and valuable marketing communications tool. Not only can it increase public awareness for a company, it can also shift an established perspective with one simple article spun the "right way". These days, however, the Internet has stepped in to become a viable and widespread media outlet by itself through the large amount of consumers it can reach on a daily basis. The Internet provides opportunities to reach thousands more than an advertisement would in your local newspaper, and for a much cheaper price.

The key for Barclay’s success is through good public relations. To some extent the Internet has now become a key player in its success factor. It provides a faster, broader reach for the Company. They use it to publish company press releases, background information of the company, to introduce new promotions, the services provided, the location of there branches and to provide vacancies. The role of the PR officer is to create the catch. It is the public relations department's role to keep the information up-to-date and to conduct research studies to ensure that the company's clients are satisfied.

With the growth of the Internet, Barclays has to do a great deal more crisis management than before. The online community gives people an opportunity to communicate with each other about problems in a very lengthy, in-depth manner as opposed to through media circuits such as the newspaper, radio and television where the lines of communication were limited.

The bank supports community initiatives by plough back 1% of its profit before tax for community pledges, in line with the Barclays global community investment program themes which are mentioned below.

Banking on brighter futures

Banking on Brighter Futures is about giving disadvantaged people the chance of better life they wouldn’t otherwise have. It fits closely with Barclay’s business, and gives the company the fullest opportunity to use, not only its money, but also the skills and expertise of its employees to help people out of poverty, debt and disadvantage. Through this program the Company focuses on:

Increasing financial inclusion

Encouraging entrepreneurship and employment

Support access to education, particularly financial education

Looking after local communities

Looking after local communities is about investing in the many neighborhoods around the world where Barclays its presence. Supporting the causes close to home is one of the best ways that Barclays can meet local needs and engage local stakeholders. The Company priority areas are:

Health: Diabetes Prevention & HIV/AIDS prevention

Education: non- Formal and entrepreneurship training

Empowerment: People with disabilities / vulnerable persons

Environment: Land & Marine – Preservation & Conservation

Charity begins at work

Charity begins at work is a vital component of Barclays community investment program. At the heart of the community program is the desire to engage its people and to support them to get involved in their local communities. It’s down to individual choice who, what and how to help. The following support is available for colleagues to get involved in community programs:

Rs4Rs Matched Fundraising

Fund raised through events will be ‘doubled’ by the bank for each colleague up to 3 times a year. Benefits go to the charity of their choice, in line with Barclay’s policy.

Volunteering in work time

The staffs get two days off per year to do volunteer work and take part in community initiatives.

Make A Difference Day

As mention earlier, once a year, colleagues are sponsored to do volunteering work at the charity of their choice.

Diagnoses of diabetes have increased in recent years in Mauritius, indicating an alarming trend. Barclays Mauritius is investing Rs 1.7m in a program to provide free diabetes tests in easily accessible locations across the island, at convenient times of the day. Barclays is partnering with the Mauritian government to support a nationwide diabetes screening campaign, encouraging people to take preventative measures to reduce their risk of developing the illness, by eating healthily and taking regular exercise.

Barclays Mauritius has adopted the fight against diabetes as its flagship cause, given the high prevalence rate in Mauritius, irrespective of class, race and gender. Indeed, among the adult population, aged 30 and above, 19.3% are diagnosed diabetic, and 12.1% have an impaired glucose tolerance. In 2006, Barclays Mauritius has earmarked Rs 1.7m for 5 initiatives related to Diabetes prevention. For the World Diabetes Day in November 2007, Barclays Mauritius had engaged itself in investigating Rs10 Million for the Diabetes prevention cause.

Committed to building a healthier society, Barclays Bank PLC-Mauritius has partnered with the Ministry of Health & Quality of Life in the never-ending war against the prevalence of non-communicable diseases, especially diabetes which stands out as the main public enemy in Mauritius. The situation in the paradise island is alarming: 1 out of 5 people aged 30 and above is diabetic. With a third of its 1.2 Million inhabitants being diabetic, Mauritius ranks second in the world as regards the prevalence of diabetes.

As a responsible organization, Barclays Bank PLC- Mauritius has taken immediate and concrete steps by making of the fight against diabetes its flagship cause for 2008. The bank has allocated 10 Million Rupees to support diabetes-related projects. The grant also pays for expenses linked to medical teams, organizational costs, cholesterol and glucose testing strips, and the production of an educational booklet. A country-wide media campaign was carried out namely – "Diabetes Full Stop". Use of billboards, radio, TV and newspapers has helped raise awareness of the disease among Mauritian. But also, we had a doctor talking and explaining the causes and preventing measures to take. This particular program was broadcasted on TV during the peak hours from 6p.m to 8p.m.

But if funding is pivotal to this war against diabetes Barclays Mauritius believes that action is as important. In this direction, a Diabetes Prevention Action Plan 2008 was devised and implemented internally. Through this Action Plan, the bank was able to provide its entire staff with a free diabetes screening and thus, directly bring to the attention of some 1,300 families, the dangers of non-communicable diseases. To that number, an additional 4,000 families have been sensitized as to the scourge of diabetes through the Zero Diabetes initiative, a partnership between Barclays Mauritius and the Ministry of Health.

This free diabetes screening campaign has seen the free screening of almost 4,000 Mauritian citizens in some 20 regions throughout the country. During the Barclays Community Night held on 16 Friday December 2011 at Ebene, a minibus was donated to the Ministry of Health and Quality of Life as a part of the bank's vision to fight diabetes.

The collaboration between Barclays Bank PLC Mauritius and its strategic partners in the field of community support is a continuous and dynamic process. At the eve of the 2008 World Diabetes Day, Barclays Mauritius reiterated its unflinching support to the Mauritian health authorities. The financial support provided by Barclays Bank will be used for the setting up of mobile clinics throughout the country. Through these programs, Barclays has helped make diabetes screening appointments available during weekends and after typical working hours. In 2009, 110,671 people benefited from free screening test.

A powerful tool like CSR not only enhances the brand image and reputation of Barclays but also leads to improvement customer loyalty, and increased ability to attract and retain employees. By capitalizing on it, Barclays has improved its financial performance and attract more investment with immense economic value. In the present era, the word CSR has, as a result, has occupied a very key place in the plans and strategies of the Company. However, as stated by Mr. Caunhye, it is sad but true that for many organisations, CSR has been adulterated to be used as a marketing tool and image-building instrument, with the smallest support receiving provoked or paid extensive media coverage.

Roles and Objectives at Barclays

At Barclays, they believe that Banking should not only be easy and convenient, but also a pleasurable experience. Besides being a very competent company, striving hard to survive in an ever increasing competitive environment, Barclays is also engaged in community service.

Barclays defines its "publics" as being the customers, potential customers, employees, the community including citizens and companies that today are not customers of Barclays, public media, authorities and other decision makers. In principle, the groups mentioned above fall into the target group segment of the bank. Barclays works differently with those various groups, depending on the scope and importance of the relation.

PR has become a must nowadays due to the expanding issues and matters to deal with. The environment is dynamic and errors are not tolerated. As stated by Mr Caunhye, "the very nature of communication itself and its ultimate objectives have undergone a fundamental transformation. Far from being only "information, image building and interaction element" , the public relations instrument is today one of the social engagement, both internally - through interaction with social actors employed by an organisation- and externally with media partners and with persons within the society." Communication is above all. Everyone wants to be communicated of the latest happening. Hence, the company make much use of the intranet to keep its employees well informed of the Company’s activities. Presently much emphasis is put on technology and communication. However, as stated during the interview public relations is mostly people oriented, despite having the latest technology if the Public relations officer cannot deal with the different stakeholders then it’s a waste.

PR has evolved a lot at Barclays, and therefore the company needs to response to these changes proactively. As he pointed out, the strategies need to be amended and for him a strategy is like a skeleton on which the flesh (components and triggers for action) may take more volume or eventually shrink. Any strategy, the more so in a socio-economic environment undergoing constant changes, needs to be continuously reassessed and retuned. The reasons behind this are several and vary from simple business requirements – for example increase or reduction of customers. Barclays should aim at attracting new people but also devise strategies to retain the existing ones.

Also, developments pertaining to infrastructure and technology, evolution or development of services – to more fundamental elements which may relate to the very existence of the business itself (mergers/ acquisitions/ expansion/ bankruptcy) changes impacting human resource (increase of staff for business expansion or reduction of headcount due to losses) , operational and technical problems (IT infrastructure hacked or under virus attack / serious fire) and serious unforeseen issues (massive fraud scandal or epidemics preventing normal operations).

Another element to be taken into consideration is that constant assessment and monitoring of the implementation of any phase of the PR and Communications strategy is extremely important as it will allow for an understanding of its effectiveness or shortcomings. In case of flawed rationale or implementation, changes will cater for appropriate corrective measures.

Barclays Company believes much into welfare of its employees. As cited earlier, communication is the root of the success for the company. Within the Company, there is increased reliance upon modern computer-based top-down dissemination of information and bottom-up collection of feedback. Newsletters are now e-zones and organisation-wide interactive audio-video presentations are used. The Communications Manager ensure that his team are aware of everything relating to public relations- from those who are responsible for designing and implementing a campaign to those who deals with press. Mr Caunhye welcomes suggestions and asks for feedback from his teams, hence this helps to tackle issues accurately. On the other hand, the Company also believe that despite modern methods are used over, existing channels of direct communication through face-to-face meetings and social events are of upmost importance.

Over the years this concept of Corporate Social Responsibility (CSR) has gained unprecedented momentum in business and public debate and has become a strategic issue crossing the departmental boundaries, and affecting the way in which a company does business. CSR is a concept whereby business organizations consider the interest of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders as well as their environment. This obligation shows that the organizations have to comply with legislation and voluntarily take initiatives to improve the well-being of their employees and their families as well as for the local community and society at large. CSR can involve a range of activities such as working in partnership with local communities, socially sensitive investment, developing relationships with employees, customers and their families, and involving in activities for environmental conservation and sustainability.

For Barclays, CSR has become imperative. CSR is today compulsory by law and aims at re-injecting funds and related support in society for helping the deprived and for supporting NGO’s. Barclays has been voluntarily doing CSR since 2001 by providing funding to the tune of 1% of its profit before tax. Several NGOs have thus been receiving funding ranging from Rs. 125,000 to several Millions of Rupees. The NGOs receiving funding from Barclays include SOS Poverty, Women in Networking, APEIM, TiDiams and Maison Verte amongst others. Barclays is also a close partner with the Ministry of Health and has made of the fight against diabetes its flagship cause. Some 10 Million Rupees were thus invested in the fight against diabetes. The link between Barclays and the fight against diabetes is today a very tangible one in the minds of Mauritians. We all are aware of the Barclays F.A Cup; in Mauritius also the company is a privileged partner and funder for the Mauritius Football Association.

However, the underlying concept behind the CSR strategy has always been and will remain a purely social and humane one. For Company philosophy is that, "giving back to the community is not just about boosting the corporate image through CSR initiatives but at the people to people level, it's about being humane." This is the reason why most of this funding provided by Barclays is not ventilated in the media instead of being used abusively to promote the image of the organisation. The underlying principle is that an organisation operating in Mauritius and making huge profits is morally bound to give back to the society within which those profits have been made. Another interesting element is that it is in the statutes of Barclays that employees invest time in social support. Every year, in the month of October, employees within all countries where Barclays operates engage in social support activities. In Mauritius, more than 800 men and women within Barclays take part in what is called the ‘Make a Difference Day’. This is what distinguishes Barclays and other organisations in terms of giving true meaning to social responsibility.

Consequently, when it comes to help others in the society, the employees at Barclays are ready to act. Whether it’s about repairing computers of a school for youngsters in a deprived area, or to repaint the walls of NGO’s which welcomes vulnerable people or even to offer food to orphans, Barclays Company is always present. The motive is to create the difference in the society that is an effort of the bank and its employees to reduce the disparity that exists in the country.

Indeed this is what the concept of "Make a Difference Day" is all about. This concept exists since thirteen years now, which help the employees at Barclays to bring there support whether humane or material to different organizations in Mauritius. The aim of "Make a Difference Day" is in investing in social projects not only in terms of material but also in terms of kindness. This operation has taken a good deal of significance in the world. In 2007, there have been about 16,000 employees of Barclays who had been participating in this project and whereby they were sent to 26 countries. In Mauritius, there are about 800 employees who have brought their contribution to "Make a Difference Day" while participating in about 35 projects in Mauritius and Rodrigues. In the year 2011, the company had implemented about 50 CSR projects. During the weeks days dedicated to social service, different teams choose a day for doing social activity. Therefore, this concept is a way for the employees at Barclays to continue to build a better society and reduce differences.

At Barclays, there is a view that PR activities lead to publicity in media. The bank works with communication towards other target groups than public media, but this is not by Barclays defined as PR as it is in general theories. Communication targeted towards internal groups falls under the definition of "Internal communication" and the communication process with existing and potential customers goes under the responsibility of marketing.

Crisis management is vital for every organization. It involves reacting to an event once it has occurred. For this reason, a crisis management plan is necessary because news and information is traveling faster than ever. The PR Communication plays a fundamental role in times of crisis management by being the bridge between all stakeholders. Crisis communications planning will help identify the Company’s vulnerabilities. Recently, in the month February there has been a fraud issue at Barclays. From newspapers to TV everyone was aware of the fraud. As a result, the PR / Communication department personnel were very meticulous about this matter. Various steps were place in line to deal with the press and different stakeholders. The PR/ Communication team were taking an active part in the crafting of crisis management strategies and reactive information processes.

Each crisis situation is unique and, therefore, requires a tailored response.As reveal during the interview, the Company very first strategy is that during a crisis, the information the organization has, is made aware to everyone through the intranet system of the bank. The PR officer or representatives ensure that the entire message communicated is not distorted. The front-line interface between management and employees is for providing first-hand information and reactive updates regarding the fraud.

The overall objectives with the PR activities at Barclays are to confirm existing customers that they have chosen the "right bank", and that the company wants to retain them as customers. The objectives are also to reach out to new and potential customers with offers and to reinforce the brand and image of the organization through social responsibility and commitment to the society. These objectives are then split up into different target groups for further development.

The Barclays bank has developed an overall objective in the communication policy at top management level. The policy has no end it itself but reflect into daily business through goals that are set to have satisfied customers, good result, profitability from the business, and motivate employees towards performance and commitment. The top management is highly involved in the communication strategies of the Barclays group with regard to the overall image and reputation of the bank. The operative plans act as framework at divisional level on how to operate and are implemented down to branch level to coordinate how to communicate in sales and customer activities.

According to Barclays, PR activities are of huge importance since they create value for the organization, through keeping customers satisfied and loyal. By nature of the intangible services of the bank and the fact that there is an upward trend towards internet banking, PR is an important tool for the organization when communicating and maintaining relations with its publics.

The public opinion about banks is generally dynamic and most specifically connected to some products or services during a quick boost or fall at the capital market. This often leads to a question; which is about whether the service or advice given by the bank was correct.

By means of effective public relations activities, Barclays believe that they can change the view and opinion about the bank in the minds of their publics. It is as such important to stand up for what you say, and deliver high quality services, attractive offers, and have competent human resources. By doing things the right things at the right time, the bank can improve the picture of the message conveyed by its PR activities. Barclays has the flexibility to encounter changes in the public opinion but this is not a major issue since they have been able to maintain and improve public opinion by handling controversies at the start point itself.

Within Barclays, the set of PR activities initiated are used to build the bank’s image and at the same time inform and educate about their services. The recent years, Barclays has put extra effort in building its image at public level through massive corporate social responsibility activities, especially regarding Diabetes in Mauritius. Today Barclays has improves with more focus on image building activities while maintaining an equivalent effort in promoting its services. Barclays ambition is to be more proactive and actively oriented to shape the image of the bank instead of using PR activities to act only when questions and controversies arise from outside.

Functions and tools used by Barclays

The internet has become an ongoing emerging source that tends to expand more and more. The growth of this particular media attracts the attention of advertisers as a more productive source to bring in consumers. Internet advertising as a marketing medium now ranks ahead of TV, radio and print as the preferred marketing method for businesses and organizations. The number of internet users is on a rapid rise worldwide and is used by people of all age and types.  Internet has become a major medium for communication, entertainment and is in the process of replacing traditional entertainment, promo products, and informative Medias.

At Barclays, they have their own website. It is a secured website with all necessary information and services being provided. The information includes the annual reports, citizenship reports and news update and some of the services include internet banking, personal banking, corporate banking and mobile banking.

Crisis public relations are changing. With new media, such as My Space and Facebook, crisis situations have occurred on the web. While products and services expand to new media, there are new ways for crises to emerge. However, Barclays does not make full use of any such new media like e-mail, websites, podcasts, internet video, and others to communicate to the public. The Company relies mainly on traditional broadcast news or print advertising to properly manage a crisis. They undertake face to face meeting with press and their stakeholders.

On the other hand, Barclays is constantly improving their service levels to their customers, Barclays Bank PLC – Mauritius is now able to bring to its customers the latest in flexible core banking technology. This means that we can have access to our Account Information online and also any organizations can access to account information in real time. Moreover organization will now be in a position to access its statements as far back as six months online and will have the capability to print or export account information in the various formats.

Public Relations are continuously evolving; as well the environment is constantly changing. Public relations itself stipulate much effort from either the PR officer or even the PR team. Hence, in order to overcome any unwise outcome to crop up, measures need to be taken Communication is the root of a company’s success. However, communication problems may crop up or even the message may be distorted especially during a crisis or work overload. Therefore, to avoid any such matter to aris