Public relations is a large discipline that can be subdivided into many types of functions. There are four primary areas of functional responsibility or different locales in which we can categorize the profession of public relations:
Corporate public relations
Agency public relations
Nonprofit/NGO/activist public relations
These primary functional areas differ but also have the commonality of using the strategic management process. In the earlier chapter briefly outlining public relations subfunctions, we promised more specificity on how those functions actually operate within an organization. Now that we have thoroughly discussed the strategic management of public relations, we will relate how they operate in day-to-day corporate and agency settings, and how they relate to government and public affairs as well as nonprofit, NGO, and activist public relations.
Unlike some corporate functions, such as legal and finance, the communication function does not have as its primary mission fulfilling specific regulatory or compliance requirements. As a result, the function is rarely organized in a uniform fashion from one organization to the next. Similarly sized organizations can vary widely in the resources and number of employees devoted to communication. Reporting relationships and functional responsibilities also differ depending on the nature of the company.
For example, companies that are heavily focused on building and sustaining strong consumer brands may devote far more employees and greater attention to the communication function than organizations that operate exclusively in the business-to-business sector. A company that sells directly to consumers has a greater need for a large media relations team since it can field dozens of calls each day from both mainstream and trade media. When a new product is being launched, the staff will be called upon to plan press conferences, conduct satellite media tours with local television stations, and organize customer events.
Companies that sell their products to other businesses rather than directly to consumers may have similar needs from time to time, but they are usually on a much smaller scale. Some industries, such as fashion, entertainment, packaged goods, and travel, place a greater emphasis on communication than those with longer selling cycles, such as construction, manufacturing, and engineering. Newer fields, such as computing, also tend to rely more on public relations and social media programs than through traditional advertising channels.
In many organizations, the senior leader of the communication team reports directly to the CEO, whereas in others, that individual may report to the head of legal, marketing, or human resources. Regardless of the specific reporting relationship, in virtually all companies, the function is responsible for communicating with the media and usually has the lead role in developing employee communication as well. Public relations activities, such as the management of corporate events, press conferences, product launches, large employee gatherings, and leadership meetings normally also are managed by the chief communications officer (CCO) and his or her team.
In some companies the function is also charged with managing investor relations—that is, communicating with the company’s shareholders and financial analysts who follow and report on the company. In a publicly traded company, the investor relations function must comply with a number of securities regulations regarding the company’s disclosure of its financial results. These activities involve the release of quarterly and annual financial results and providing timely information to shareholders regarding any event that meets the definition of materiality, an event that could have a positive or negative impact on the company’s share price. In fulfilling these requirements, the investor relations function works closely with the finance and legal departments, as well as the company’s outside audit firm.
Most CCOs would maintain that there is no such thing as a typical day. Some of the most important qualities of successful CCOs are flexibility, patience, analytical ability, and the ability to remain calm under pressure. All organizations face potentially damaging issues every day. The CCO must monitor these issues on an ongoing basis, much like a chef watching many simmering pots on the stove. The objective in this pursuit is not to let any of these issues boil over into full-fledged crises. This task has been made harder by the ubiquitous presence of the Internet. The Web has provided the means for unhappy customers, disgruntled employees, or disappointed shareholders to voice their concerns in a very public manner with a few computer keystrokes.
Although the corporate public relations function is extremely complex and varied by industry, what follows are a few of the main responsibilities and areas of focus for any CCO.