REPUTATION MANAGEMENT

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1 REPUTATION MANAGEMENT 2ND EDITION The Key to Successful Public Relations and Corporate Communication John Doorley and Helio Fred Garcia

2 TABLE OF CONTENTS Preface xi Acknowledgments xvi About the Authors ~ xviii About the Contributors,» xxi 1 Reputation Management 2 Reputational Capital 4 Identity 5 Can Reputation Be Measured? 8 Can Reputation Be Managed? 9 "Intangible Asset" The Wrong Perspective 9 Sidebar: It's All About Building the Relationship 10 Comprehensive Reputation Management 11 Confusing Communication with Performance and Behavior 14 Sidebar: The Edelman Public Engagement Model 16 Reputation Mis-management: Lessons From the Financial Crisis 18 The Ten Precepts of Reputation Management 21 Sidebar: Safeguarding a Brand: General Electric 25 Reputation Management: The Best Corporate Communication Strategy 26 The Expanded Reputation Formula 28 Sidebar: The Authentic Enterprise: Executive Summary 29 Sidebar: Systems Theory 31 Best Practices: Reputation Management 33 Resources for Further Study 34 Questions for Further Discussion 35 2 Ethics and Communication 36 Introduction: Why Ethics Matters 39 What is Ethics? 40 Ethics and Professional Communication 44 Ethics of Communicating 47 Ethics of Running an Organization - 54 Ethics of Representation 57 Helping Companies Behave Ethically 60 Case Study: Hill & Knowlton and Citizens for a Free Kuwait 63 Sidebar: Historical Perspectives on Communication Ethics 68 Ethical Communication Best Practices 73 Resources for Further Study 74 Questions for Further Discussion 75

9 "Intangible Asset" The Wrong Perspective 9 Sidebar: It's All About Building the Relationship 10 Comprehensive Reputation Management 11 Confusing Communication with Performance and Behavior 14

3 V i.''.: '; M^'^^^ffS^WiS^- E 0F CONTENTS 3 Media Relations 76 The Case for a Centralized Media Relations Function 78 Organizing the Media Relations Function 80 Media Relations as a Lightning Rod 81 Sidebar: The Four Academic Models of Public Relations 82 Moderating Expectations 83 The Journalist and the Spokesperson 84 Fear of the Press 85 The Press' Right to Know 88 The Press' Penchant for Bad News 91 The Good News About the Press 93 Press Relations from a Position of Power 93 Success in Media Relations 94 Sidebar: The Art of the Pitch 96 Sidebar: Choosing the Right Tools to Convey Your Message 99 Sidebar: Shifting Media Terrain Has Raised the Stakes and Created Opportunities for Media Relations 101 Best Practices in Media Relations 103 Qualities of a Good Media Relations Person 109 Resources for Further Study 110 Questions for Further Discussion Social Media 112 By Laurel Hart What is Social Media? 113 Corporate Participation in Social Media 120 Social Media Challenges 124 Sidebar: Air Force Blog Assessment Response Diagram 127 Sidebar: Ford Motor Company and the Economic Crisis 128 Sidebar: Mayo Clinic: Energizing Old-Fashioned Word-of- Mouth through Social Media 129 General Best Practices 130 Resources for Further Study 133 Questions for Further Discussion Organizational Communication 134 By Jeff Grimshaw and Tanya Mann Getting Employees Aligned Is Essential to Reputation Management 136 Making Smart Choices to Align Employee Behavior with Reputational Interests 138 Making Smart Choices to Align Employee Performance with Reputational Interests 146 Sidebar: Driving Performance through Organizational Communication 148

Sidebar: The Four Academic Models of Public Relations 82 Moderating Expectations 83 The Journalist and the Spokesperson 84 Fear of the Press 85 The Press' Right to Know 88 The Press' Penchant for Bad

4 Sidebar: The Evolution of Strategic Employee Communication at Hallmark: From Reporting to Strategic Communication 158 Best Practices in Organizational Communication 161 Resources for Further Study 162 Questions for Further Discussion 163 Government Relations 164 By Ed Ingle What Is Government Relations? Organizing the Government Relations Function 169 Understanding the Key Audiences 171 Sidebar: Sidebar: Reputation and Integrity: A Profile of Bryce Harlow 173 Setting the Company's Government Relations Agenda 174 Success and Expectations Management 174 Role of Third-Party Advocacy 175 Role of the Lobbying Consultant 177 Role of Political Contributions 179 State and International Government Relations 180 Sidebar: An interview with Karan Bhatia, Vice President for International Law and Policy, General Electric Company 182 Ethics in Lobbying 183 Best Practices 185 Resources for Further Study 187 Questions for Further Discussion 187 Community Relations 188 Hardy's Relationship-Building Principle #1: Be Involved. Be Committed 190 Hardy's Relationship-Building Principle #2: Building Reputation, One Relationship at a Time, Is Good Business 192 Hardy's Relationship-Building Principle #3: Choose the Right Projects. Be Strategic 193 Hardy's Relationship-Building Principle #4: Keep Moving Ahead 195 Hardy's Relationship-Building Principle #5: Embrace Diversity 197 Sidebar: Wake Forest University: The Path to Becoming a National University 199 Hardy's Relationship-Building Principle #6: When Things Go Wrong, Make Them Right as Fast as You Can 201 Sidebar: Community Relationships Are Based on Trust 201 Best Practices 203 Resources for Further Study 205 Questions for Further Discussion 205

5 Viii TABLE OF CONTENTS 8 Investor Relations 206 The authors and Eugene L. Donati What Is Investor Relations? 208 The Goals and Roles of Investor Relations 209 A Brief Introduction to the Financial Markets and Investment 209 Disclosure and Materiality 213 Information Intermediaries: Securities Analysts 218 Information Intermediaries: The Financial Media 220 Sidebar: Tools of the Trade: Methods of Investor Relations 222 Best Practices 225 Resources for Further Study 226 Questions for Further Discussion Global Corporate Communication 228 By Lynn Appelbaum and Gail S. Belmuth with Katja Schroeder Case Study: SAP Business Suite 229 The Global Imperative 232 The Global Corporate Communication Role 236 Standardize or Customize? That Is the Question 237 The Global Communication Network 238 Internal Communication Worldwide 239 Extem'al Communication 243 Sidebar: Hewlett-Packard 251 Working with Public Relations Agencies 253 Sidebar: Measuring the Success of Global Communication 254 Sidebar: How to Balance Global Reputation with Local Market Needs: Insights from the Global SAP Business Suite 7 Launch 255 Best Practices 256 Resources for Further Study 256 Questions for Further Discussion Integrated Communication 258 By Timothy R McMahon, PhD A-lo-ha Uh-oh! * 259 Foundational Concepts 260 Tactical Tools 267 Summing It All Up: Best Practices 273 Sidebar: The Big Share: Integrated Communication Strategy in an Era of Social Media 274 Resources for Further Study 276 Questions for Further Discussion 277

Information Intermediaries: The Financial Media 220 Sidebar: Tools of the Trade: Methods of Investor Relations 222 Best Practices 225 Resources for Further Study 226 Questions for Further Discussion

6 rable OF CONTENTS JX 11 Issues Management 278 Issues Management Overview 280 Developing an Issues Management Plan 285 Sidebar: Sample Threat Assessment: An Embezzlement 289 Best Practices 300 Resources for Further Study 301 Questions for Further Discussion Crisis Communication ~" 302 Introduction 305 Sidebar: Quick Choices and the Least Bad Outcome 311 Timeliness of Response: The Need for Speed 312 Sidebar: Ten Avoidable Mis-Steps 316 Control the Communication Agenda 317 Sidebar: Checklist for Crisis Response Preparedness 319 Dealing with Rumors 320 Best Practices 332 Resources for Further Study 333 Questions for Further Discussion Corporate Responsibility 334 By Anthony R Ewing Nike's Journey 335 Corporate Responsibility 338 Communicating Corporate Responsibility 342 Best Practices 346 Resources for Further Study 356 Questions for Further Discussion Public Relations Consulting 358 By Louis Capozzi, retired CEO, MS&L Overview: The Public Relations Consulting Business 360 The History of Public Relations Consulting Firms 360 Financial Management 365 Managing Consultants and Consultancies 366 Sidebar: The Deming System of Profound Knowledge 367 Client Service: A Creative Collaboration ' 368 Sidebar: What Clients Expect from Their Consultants 370 Pitching and Winning New Business 373 Ethics in Public Relations Consulting 376 Sidebar: The ICCO Stockholm Charter 376 Resources for Further Study 378 Questions for Further Discussion 379

Need for Speed 312 Sidebar: Ten Avoidable Mis-Steps 316 Control the Communication Agenda 317 Sidebar: Checklist for Crisis Response Preparedness 319 Dealing with Rumors 320 Best Practices 332

7 15 Challenges and Opportunities in Corporate and Organizational Communication 380 Earning a Seat at the Table: Defining the Professional Communicator's Role 382 Sidebar: Historical Perspective: Edward L. Bernays and the Roots of Applied Anthropology 386 The Future of Corporate and Organizational Communication and Public Relations. 388 Sidebar: Six Challenges Facing the Public Relations Practitioner Today 389 Becoming Truly Strategic in Managing Corporate and Organizational Communication 392 Notes 399 Index All

Bernays and the Roots of Applied Anthropology 386 The Future of Corporate and Organizational Communication and Public Relations.

REPUTATION MANAGEMENT 3RD EDITION. The Key to Successful Public. Rotations and Corporate. Communication. John Doorley. and.

REPUTATION MANAGEMENT 3RD EDITION The Key to Successful Public Rotations and Corporate Communication John Doorley and Hello Fred Garcia Routledge R Taylor & Francis Croup NEW YORK AND LONDON TABLE OF CONTENTS