This article examines the evolving role of public relations (PR) within the activities of a commercial organization, highlighting its significance as a strategic tool for achieving business success. The study explores the theoretical foundations of PR, defining its core functions and principles. Through real-world examples and case studies, the article demonstrates how effective PR strategies can shape public perception, build brand reputation, and drive business growth.
Keywords: Public relations, PR, communication, strategic management, stakeholder engagement, brand reputation, public opinion, business success, social media, reputation management, marketing, advertising, commercial organizations, business strategy.
In today's competitive and interconnected business landscape, the success of a commercial organization hinges on more than just the quality of its products or services. Building and maintaining a positive public image, fostering meaningful relationships with stakeholders, and effectively communicating the company's value proposition are crucial for achieving long-term growth and sustainability. Public relations (PR), once considered a peripheral function, has emerged as a vital force in shaping the strategic direction and success of modern businesses.
This study delves into the multifaceted role of PR in the activities of a commercial organization, exploring its impact on brand perception, stakeholder engagement, and overall business performance. The study aims to shed light on the dynamic interplay between PR strategies and the core functions of a company, emphasizing the symbiotic relationship between effective communication and organizational success.
The Theoretical Framework of Public Relations:
A Foundation for Business Success
Public relations (PR) can be defined as «the strategic management of communication between an organization and its publics» [1, p. 5]. This definition underscores the core principle of PR: building and maintaining mutually beneficial relationships with various stakeholders. It involves understanding the needs and interests of these publics, crafting relevant messaging, and engaging in open and transparent communication.
As Grunig and Hunt argued, PR is not simply about disseminating information; it's about fostering two-way communication and building trust [1, p. 4]. This requires actively listening to stakeholder concerns, responding to criticisms, and cultivating a genuine dialogue that fosters a sense of shared understanding.
In today's information-saturated environment, where consumers are increasingly discerning and empowered, PR plays a more critical role than ever before. As stated by Cutlip, «PR is an essential element of strategic management, influencing the success of virtually every business function» [2, p. 6].
The rise of social media, the proliferation of online information, and the increasing demand for transparency have fundamentally transformed the way businesses communicate with their publics.
PR functions encompass a diverse range of activities, each designed to achieve specific objectives:
– Media Relations: Building relationships with journalists and media outlets to secure favorable coverage and shape public perception. This involves crafting press releases, pitching stories, and managing media inquiries.
– Internal Communications: Building a strong internal culture, communicating effectively with employees, and fostering a sense of shared purpose. This includes internal newsletters, town hall meetings, and employee recognition programs [3, p. 254].
– Investor Relations: Communicating with investors and financial analysts to provide information about the company's performance, financial results, and future prospects. This often involves press releases, investor conferences, and one-on-one meetings.
– Government Relations: Building relationships with government officials, policymakers, and regulatory bodies to advocate for industry interests and ensure compliance with regulations [4, p. 1353].
– Community Relations: Engaging with local communities to build trust and support. This may involve sponsoring local events, volunteering, or supporting community initiatives.
Even in order to introduce a product to the market and form an idea of the product, the company uses technologies such as:
- establishing media relations to provide information about products in order to interest potential customers;
– implementation of special actions for the development and maintenance of favorable relations with potential consumers;
– establishing partnerships with future investors [5, p. 148].
The theoretical framework outlined above provides a foundation for understanding the importance of PR in a commercial organization. However, its true impact is realized through practical application.
PR in Action: Shaping Perceptions and Building Relationships
This section explores real-world examples of successful PR strategies, analyzing how these initiatives shape public opinion and build strong relationships with key stakeholders.
Effective PR strategies have a direct impact on the formation of public opinion. By framing narratives, providing information, and influencing perceptions, PR professionals can shape how the public views a company and its products or services. A positive public perception translates into increased brand loyalty, customer trust, and ultimately, stronger financial performance.
For example, a company's proactive approach to social responsibility can enhance its public image, attracting customers who align with its values. Conversely, a company that mishandles a crisis or engages in unethical practices can suffer significant reputational damage, leading to boycotts, decreased sales, and difficulty attracting and retaining top talent.
One of the most famous applications of PR in the company's activities is Nike. Nike's PR focuses on athlete endorsements, social justice campaigns, and community engagement to build a strong brand identity and connect with diverse audiences. Their «Just Do It» slogan is globally recognized, representing both athletic achievement and a philosophy of personal empowerment. Nike has also garnered praise for its campaigns addressing social issues, such as gender equality and racial injustice, further strengthening its brand image.
A vivid example of the impact of PR on Pepsi's activities occurred in 2017. Pepsi launched a commercial featuring American influencer Kendall Jenner that aimed to promote unity and social justice. The commercial depicted Jenner joining a protest march, handing a police officer a can of Pepsi, and resolving the situation with a single gesture. This simplistic and unrealistic portrayal of social activism was widely condemned as insensitive, tone-deaf, and exploitative.
Social media erupted with criticism, accusing Pepsi of trivializing a complex issue and using a celebrity to profit from a movement. The company also faced a significant public relations crisis, having to issue apologies and withdraw the ad from circulation.
This case highlights the importance of authenticity, sensitivity, and genuine engagement with stakeholders when crafting PR campaigns. A well-intentioned campaign that lacks these elements can quickly become a public relations disaster.
Public relations is no longer a passive communication function; it is an integral element of strategic business management. By understanding the theoretical foundations of PR and applying its principles strategically, companies can build strong relationships with stakeholders, manage their reputation effectively, and achieve sustainable success.
PR — A Strategic Imperative for Modern Organizations
This study has explored the multifaceted role of public relations (PR) in the activities of a commercial organization, revealing its significance as a strategic tool for shaping perceptions, fostering relationships, and driving business success. From defining the core concepts and functions of PR to examining practical applications and real-world examples, the analysis highlights the vital interplay between effective communication and organizational success.
The findings demonstrate that PR is not simply a communication function, but a strategic force that can influence a company's brand image, customer loyalty, investor confidence, and overall performance. By engaging in authentic dialogue, responding to stakeholder concerns, and leveraging digital platforms effectively, organizations can cultivate a positive public image, manage crises effectively, and build enduring relationships with their audiences.
However, the study also underscores the importance of ethical considerations, strategic planning, and continuous adaptation in the field of PR. Companies must approach PR initiatives with genuine commitment, sensitivity, and a deep understanding of their stakeholders' needs. Miscalculated campaigns, as exemplified by the Pepsi «Kendall Jenner» ad, can have detrimental effects on a company's reputation and profitability.
The future of PR lies in its ability to embrace emerging technologies, adapt to evolving communication landscapes, and integrate seamlessly with the core functions of a modern business. As organizations continue to navigate a complex and dynamic global environment, PR will remain a critical tool for fostering trust, building relationships, and achieving sustained success.
In conclusion, this study underscores the critical role of PR in modern business. By embracing a strategic, ethical, and audience-centric approach to PR, companies can leverage this powerful tool to shape perceptions, build relationships, and drive sustainable growth in the 21st century.
References:
- Grunig, J. E., & Hunt, T. (1984). Managing public relations. Holt, Rinehart and Winston.
- Cutlip, S. M., Center, A. H., & Broom, G. M. (2012). Effective public relations (11th ed.). Pearson Education.
- Frolov S. S. Public relations in the work of the company. Strategy, communications, image, branding: textbook / S. S. Frolov. — M.: Editorial URSS. — 2020. — 368 p.
- Statsenko, D. K. State management of public relations / D. K. Statsenko // Modern scientific views in the era of global transformations: problems, new vectors of development: Materials of the XLII All-Russian Scientific and Practical Conference, Rostov-on-Don, December 16, 2021. Volume part 1. — Rostov-on-Don: VVM Publishing House, LLC, 2021. — pp. 1352–1355. — EDN HJBJJL.
- Kasyanenko, T. G. Economic assessment of investments: textbook and workshop / T. G. Kasyanenko, G. A. Makhovikova. — Moscow: Yurait Publishing House, 2019. — 559 p.
