International Public Relations

International public affairs: managing within the global village.

Coca Cola India

http://www.coca-colaindia.com/

Public Affairs and Globalisation

A true lack of capabilitiesResponse to globalisation for PR tends to be reactiveSome progress being made but a lag between opportunity and capability.

Watching the corporations…

http://www.corpwatch.org/

Public Affairs and Globalisation

Heavy reliance on the American Model of public affairs.

Largest and most sophisticate modelDeveloped in a national settingNot challenged even with the current changes in the international arena.

American public affairs executives believe their capacity to manage effectively in the international arena is “slightly if not at all developed”.

Globalisation

In pairs, discuss your definition of gloablisation.Do you think globalisation is “good” or “evil”?What are the pros and cons?Be prepared to share your views

Globalisation defined

Starck and Kruckeberg (2001) define globalisation as “the economic and cultural ways in which nations’ activities have become increasingly interlinked”.

Exciting opportunities

The need for a fresh approach – not relying on the “old way of doing things”.

Post-modern approachDeconstruct

The new shape of International Public Affairs

Globalisation demands from those in the profession:

A fresh approachGreater sophisticationA new set of guidelines to form:• New strategies• New structures • New staffing

Six Guidelines

Anthropology and psychology theories assist us in applying these guidelines. We begin to tie it all together – What constitutes PR excellence in the global scene/sense?

Six Guidelines1. Recognise the importance of culture in

shaping human life and be sensitive to its impact on individual and organisational behaviour.

Develop awareness of her/his own cultural underpinnings in order to achieve multicultural awareness and expertise.Focus on another culture in order to understand differences and similarities with one’s own.Develop friendships with people from another culture.Learn another language.

Six Guidelines (continued)

2. Experimentation with new behavioural patterns expands personal awareness and develops skill in managing public affairs.

When in Rome… (too simplistic)BEHAVIOUR appropriate to the SITUATION

Guidelines (continued)3. Anchor an international public affairs strategy firmly with the organisation and its objectives.

Cultural understanding must include an appreciation of the power of an organisation in shaping individual behaviour.Each organisation has a set of intrinsic beliefs and values which give it a distinctive personality.Public affairs strategies must be aligned with its strategic plan.

Guideline (continued)

Culture shapes and anchors an integrated approach to dealing with complex external environments.

Guidelines (continued)4. Create an international public affairs

strategy which is both responsive to local conditions and adaptable to global market.

Transnational solution• Successfully links global and local markets through

products and services (communication) which meet the needs of its various customers (publics/stakeholders) and are produced efficiently.

• Three major objective:– Realising global scale efficiencies– Being flexible and responsive to national markets (publics)– Promoting worldwide learning and innovation.

• Public affairs strategies to mirror this transnational approach

Guidelines (continued)

International public affairs strategies (continued)

Centralisation for coordination and consistency of policy and messagesRegional implementation for adaptation to local language, culture and politics.

Guidelines (continued)

5. Focus on key stakeholders in designing an international public affairs strategy.

Stakeholder managementStakeholder mappingPrimary stakeholdersSecondary stakeholdersStakeholder changeA stakeholder focusIntegrated corporate strategy

Guidelines (continued)

6. Utilise strategic partnerships with those who have a variety of cultural expertise to develop and implement and international public affairs strategy.

Multicultural awareness is based on partnerships with those who are knowledgeable and skilled in other cultures.Internal alliancesNetworks

International Imprint of the Public Affairs Portfolio

MNC focuses resources on six major activities:

media relationsgovernment relationsissue managementcommunity relationsphilanthropyinternal communications

Media Relations

Media’s role in society varies considerably depending largely on ownership/control (private or state).

Careful analysis of ownership patterns is vital for understanding of editorial and advertising policies and how business will be covered in each country.Full appreciation of reader/viewer habits are necessary.

Media Relations (continued)

Recognise the media as stakeholders rather than an adversary or pawn.

Track the changes in readership and viewership by opinion leaders in each country to ensure that media coverage connects with target audiences.

Government relations

Understand public policy processes:

InstitutionsPoliticiansPolitical partiesBureaucratsInterest groupsPublic opinion

Government relations (continued)

Variables which influence strategy include:

Public sentiment about business involvement in the political process.Differing expectations about the role of trade associations in the public policy process.

• Access to local/national trade associations.• May force MNC’s to join informally to represent

interests

Differing legal and societal guidelines for business influence over public policy.

Government relations (continued)

Variables (continued)Expected/required transparency of involvement

Coordination of government relations activities across countries is important for full effectiveness.

Bilateral and multinational trade agreements are the umbrellas under which MNCs operate as they seek competitive advantage.

Issues management

In pluralistic democratic systemsbubble up from grass-roots

In authoritarian regimesPrioritised by an elite group

Issues management (continued)

Understand:The political impact of public awarenessThe number of individuals and groups involvedThe power and influence of individuals/groups The impact of new technology

Issues management (continued)

Strategies:Containment

• Keep it local• Limit number of stakeholders aware of the issue• Focus attention on a select group of decision-

makers

Global arena• More costly ($ and reputation)• Other organisations• Increase the number of governments involved

Issues management (continued)

Some examplesShellNestlesIntel PentiumFebrezeNike, K-Mart (USA)Others?

Community relations

Just being there – being the “new neighbour” – makes the organisation highly visible, therefore, vulnerable.

StrategiesChoose nationals as local managers Develop strong relations with community leaders.Engage various stakeholder groupsFunding

Community relations (continued)

Strategies of Japanese automobile companies:

Good pay and conditionsFunding for new schoolsRelationship with managers and workersStrategy cited the production of quality automobiles by satisfied workers in new partnerships between local communities and large foreign corporations.

Philanthropy

Tradition of giving by business based on an almost universal belief that the wealthy have a responsibility to share with the poor.

Many differences throughout the world in the expectations about the need for business philanthropy.

Philanthropy – a view

http://www.mckinseyquarterly.com/Nonprofit/Philanthropy/The_state_of_philanthropy_A_conversation_with_Acumen_Funds_CEO_2329

Philanthropy (continued)

Examples of differences:European social democraciesJapan and many Asian countriesAmerican traditionAustralia?

General trend:much tighter relationship between business objectives and selective contributions.

Centralisation versus decentralisation

Fundamental decisionModels based on finance Corporate imperative to survive and grow as measured by profitability.Respond to the demands of various stakeholders.Decision could be very ‘political’.

Centralisation versus decentralisation (continued)

Choice is dependent on five factors:1. Corporate strategy and structure2. Corporate size3. Scope of the public affairs function4. Quality and availability of the public

affairs staff5. Types of programs and issues.

Consultants

Choosing and managingInternational consultants provide valuable resources for public affairs consultants.Internal staff• Full understanding of the broad corporate

strategy to bear on addressing use and designing programs.

External consultants• Specific expertise in a country or region as

well as experience from working with other firms.

Final word

An international public affairs strategy has three major objectives:

1. Conformity to overall corporate strategy.

2. Consistency across various countries.3. Easy accessibility to vital information.