Facebook — Cambridge Analytica scandal has been one of the most high-profile cases in recent years. Back in 2010, news broke that the data of millions of users on Facebook had been used improperly by a British consulting firm, Cambridge Analytica. This matter led Facebook into a media storm that could have impacted its reputation very badly.
However, a combination of public apologies, open communication, and Facebook’s commitment to strengthening its data privacy practices didn’t let them down and helped rebuild trust. However, it has not completely dismissed the matter; the efforts of Facebook’s PR helped them avoid getting into lots of trouble.
This is a prime example of how corporate PR can shape the way stakeholders perceive a company, even in the middle of a major crisis.
Today, when the corporate sector is in a blindfold race to be on the top, corporate public relations (PR) is not just a supplementary function — it is the backbone of how a company presents itself to its stakeholders, including customers, employees, investors, and the general public as well. Want to know more about this? Continue reading this article.
Understanding Corporate PR
You can understand corporate public relations (PR) as a sector that strategically manages the communication of the company with its stakeholders, including the media, employees, investors, and the general public. Simply, it acts as the bridge between a business and its diverse audiences that ensures that the brand’s message is conveyed accurately and positively.
Here are the key elements that build up corporate PR together.
- Media Relations: It’s about building and maintaining healthy relationships with media personnel such as journalists, bloggers, news outlets, and all the people who can help in favourable media coverage.
- Crisis Communication: It is one of the most critical roles of a corporate PR agency to streamline how to respond to crises. Whether it’s addressing a product failure, legal issue, or any reputational damage, corporate PR helps stabilise the brand’s image
- Reputation Management: The corporate PR team also keeps a keen eye on the feedback and perception of the company’s general audience. This involves both promoting the positive ones and mitigating the negative ones.
The Role of Corporate PR in Shaping Stakeholder Perception
Here are the roles of corporate PR along with real-life examples so that you can understand better how it helps in shaping the perception of a stakeholder.
1. Uses Brand Stories and Media to Influence Customer’s Perception
The corporate PR team uses the stories, achievements, and every single opportunity in such a way as to resonate with the interests or values of their target audience. They amplify these stories with the help of media coverage and partnerships, which help shape a positive and impactful image of the company.
We have an example of Patagonia, a clothing brand that has gained a lot of popularity because of its commitment to environmental sustainability through PR campaigns. It frames the idea that the company is not only concerned about cashing out for clothes but also cares for the environment, which aligns with the values of eco-conscious customers.
2. Facilitates Transparent Communication and Builds Investor Confidence
As transparency is crucial in maintaining the trust of the investor, corporate PR makes sure that the company openly communicates about financial health, challenges, and growth opportunities in such a way that the investors remain confident in their investment decisions.
You can understand it from the case study of Apple, as when they experienced disruptions in the supply chain, they communicated transparently and effectively with their investors regarding the impacts and the measures that helped the brand retain its investors even in challenging times.
3. Shapes Employee Loyalty and Engagement
Corporate PR not only focuses on external relations but also strives for internal matters such as promoting the culture of the company, ensuring open lines of communication, and recognising the achievements of its employees that all together build a positive workplace environment.
Starbucks is a prime example of this, as its internal PR ensures that the employees are receiving comprehensive packages. Furthermore, they also offer benefits such as education assistance and healthcare. This not only improves the satisfaction of an employee but also builds a positive perception of the company among the community that it is an employee-friendly company.
4. Reshapes the Brand’s Perception
In case of any scandal, corporate PR helps save the maximum reputation and then reshapes the brand’s perception. Understand this with the example of Domino’s. They received complaints regarding the product quality, so they launched an aggressive PR campaign. In that campaign, they admitted their mistake and showcased the improvements they have made in their recipes and customer service. This helped them restore their brand’s perception, and they experienced a significant increase in sales.
4 Key PR Strategies for Influencing Perception and Trust
1. Storytelling
The “Just Do It” campaign of Nike, which has been very popular, is nothing but a story that resonates closely with the target audience. Corporate PR uses a similar storytelling strategy to create narratives based on the values, mission, and purpose of the brand.
2. Proactive Crisis Management
Johnson and Johnson’s Tylenol case is an example of proactive crisis management by their PR team that helped them rebuild their reputation. So, a corporate PR is well aware of how to deal with the crisis proactively.
3. Social Initiatives
Corporate PR also suggests that social initiatives and plans where they should take part benefit not only society but also the company. Just like Ben & Jerry’s active participation in environment activism campaigns and social justice initiatives helped them secure a position.
Final Thoughts
Whether you talk about promoting your brand or campaign or handling scandals smartly in corporate settings, corporate PR is crucial as they master both.
