lecture stakeholders & publics

Week 2: Publics and stakeholders

Friday, 7 January 2011

This unit:

2.Publics and stakeholders

3.PR research & evaluation

4.Planning

5.Goals and strategies

PR’s basic steps:

1.Research

2.Planning

3.Action

4.Evaluation


Studying and practising PR’s a bit like the chicken and the egg. Which comes first?

In the case of PR, it’s a question of what do you need to look at first? There are many components to undertaking PR, which I’ll list briefly.

In the broad scope of PR, there are four main step to practising PR. These are:Research - understanding public opinion.

Planning - ensuring the effectiveness of the process.

Action - how public relations messages are transmitted to the publics.

Evaluation - the ways in which practitioners assess the outcomes of their activities.

In the context of this unit, we look at “micro” facets of PR contained within each of these four broad steps. Weeks 2 to 5 involve looking at what I’d term the basics (or the research and planning) required to complete a PR program. These include:

*****

After that we move on to looking at how PR works, and how we use these processes, in specialised areas of PR.

As you will will hopefully see as we progress, that when it comes to implementing PR, there are no hard and fast rules about how you go about doing things. It’s a case of adapting to the situation at hand, and mixing and matching the various components that comprise PR in order to achieve the desired result.

Engaging the right people in the right way makes a big difference to an organisation’s success.

Friday, 7 January 2011Maybe we could have looked at research first. After all, it is the first thing you do when you set out to achieve anything, whether itʼs buying a car, or writing an essay.

However, first up weʼll look at publics and stakeholders - two terms which are often interchangable, but they do have subtle differences. Perhaps publics, or audiences, could be the overarching term for both of them. You see, already there are different interpretations regarding terminology.

Iʼve chosen to look at this component first because itʼs essential that you first need to know who you are trying to reach with your message.

Youʼll recall that PR is all about persuasion and influence ... about trying to convince people of your point of view. But who are you trying to influence and inform. And hwo much influence or effect do they actually have on your organisation.

The term stakeholder conjurs images of movers and shakers. You often hear and read it in financial reports. Stakeholders are, in essence, a group of people that have to be reached. However, because of their nature (and the power they often wield) they have to be managed differently from other publics.

Youʼll often find the terminology associated with large projects. In Western Australia youʼll often hear government ministers using the term when talking about major infrastructure projects, such as the Mandurah Rail or the Gorgon gas project.In this lecture we will also look at publics, and the differences between them and stakeholders.• By engaging the right people in the right way in your project, you can make a big difference to its success.

‘Publics’

Friday, 7 January 2011First, weʼll look at publics.

When the term pubic is used it usually describes the uncommitted, often uninterested bystanders whose support may or may not eventually have a bearing on the outcome of a situation or issue.

Because they are unaware, or uninterested, members of the general public do not feel much of a stake, or depth of conviction.

Thatʼs not to say the donʼt share common problems or goals and recognise their common interest. Itʼs just that they havenʼt moved to an active stage of awareness.

So, for example, if thereʼs a vote taking place at a local council, and it means that residents will have to pay more in rates, or perhaps it will increase pollution in a local area, involvement of the public can be vital.

From this point of view, the task of PR people is to either (a) get people involved or (b) discourage them from thinking about the issue.

Public involvement

Understand the debate

Friday, 7 January 2011So, getting people interested is the trick. How can this be done?

The basic rule is to understand the debate about the issue. Who’s involved and what is at stake?

Sometimes individuals and organisations will get people interested by speaking for the general public. An example is consumer/action groups voicing concerns over mobile phone billing. It’s a task most people are happy to let other do for them. But if religious fundamentalists demand the removal of certain movies, and claim they represent the pubic, they are rejected, and the public takes over.

One case study (this week) highlights that a general public does exist, can be influenced. (see Texas Shopping). Also topical, given the debate over Sunday trading that has been going on in WA for years.

Publics and issues

create ...

Problems

which create ...

Issues

Decisions> policies, actions

which create ...

Publics

Friday, 7 January 2011But where and when do publics become a part of the issues/crisis management process? What part do they play in the process?

As we know, the way to avoid issues is to see them coming and to find ways of accommodating them before they become hot. I would say that often the real value of PR is demonstrated when you don’t do anything. Of course it’s then you have to count the cost, both reputationally and in dollar terms.

Grunig’s four-step model is a great issue anticipation and planing tool.

• • • • (run steps)

Proximity

Economics

Work issues

Personal values

Public’s characteristics


Publics generally are affected more by the “daily” aspects of an issue, such as:• proximity (they live nearby so they may be affected by, eg, a new development and increased traffic), • their economic situation (they stand to lose income, eg, shop owners, affected by road closures) • work issues tend to characterise their reasons for involvement (pay, conditions)• personal values (concern for an issue or its byproducts, eg global warming, Gunns Paper Mill in Tasmania, or the Alcoa aluminum smelter at Wagerup - involvement of Erin Brockovich)

But in all instances, theyʼre not essential to the outcome or success of the program that is causing their involvement. Eg, despite their interest in the Tas pulp mill, activists have not stopped it from proceeding. On the other hand, activists can halt projects, such as Mauds Landing at Exmouth, and limiting development at Smiths Beach.

Types of publicsNon-publics

Latent

Aware

Active

All-issue

Single issue

Hot issue

Apathetic

Friday, 7 January 2011There are, believe it or not, different types of publics. James Grunig defined them as:• Non-publics, which are groups that neither are affected by, or affect the organisation. For example, a WA-based company will have no effect on and will not be affected by publics based in Sydney. Broadly speaking, these publics can be ignored and are often not even identified.•" Latent publics, which are groups that face a problem as a result of an organisation's actions, but fail to recognise it. For example, a haulage company expanding its business may increase local traffic levels, yet the local residents may be unaware of this.•" Aware publics, which are groups that recognise that a problem exists. In the haulage company example, the local residents may read a press story that tells them about the expansion.•" Active publics, which are groups that do something about the problem. For example, local residents may blockade the haulage company's gates.

Active publics can be further broken down into three categories:+" All-issue publics are active on all issues affecting an organisation. For instance, that public might be opposed to the organisation in principle and try to disrupt all its activities. An example of this is the anti-nuclear lobby,which will oppose all the work of any company involved in handling nuclear material, even that which may be non-nuclear related.+" Single-issue publics are active on one issue or a small set of issues - for example the Save the Whale campaign. They might not be opposed to an organisation per se, but will oppose any activity that is contrary to their view on that particular issue. In fact they may be broadly supportive of an organisation, but totally opposed to one particular activity, such as giving advantageous share options to directors.+" Hot-issue publics are those involved in an issue that has broad public support and usually gets extensive media coverage. An example of this would he the public support for Greenpeace over the issue of the disposal of the BrentSpar oil platform.

There are also what Grunig calls:

+" Apathetic publics, which are publics basically unconcerned by all problems and are effectively not a public at all. However, some theorists would argue that these publics are a grouping that should concern public relations practitioners - everyone has the potential to become interested in an issue.

Latent publics

Don’t recognise the problem


Let’s now look at the three stages publics move through.

Aware publics

Develop after recognising the problem


Active publics

Do something about the problemFriday, 7 January 2011

An alternative view

Face similar unknown situationRecognise what is unknownOrganise to rectify it

Friday, 7 January 2011American educator John Dewey took a slightly different view, categorising publics into three groups. Those that ...

• face similar unknown situations

• recognize what is unknown in their situations

• organize to do something about the problem

Identifying publics

Distinctions between publics and markets

Organisations can choose their markets, but publics arise on their own and choose the organisation for attention.

A public may not ever use/buy the service or product of the organisation


So Publics are groups of people who share interests or concern. They can be active, or latent/passive.

In line with the differences between marketing and PR, there are marked distinctions between the audiences of the two disciplines. These are:

Organisations can choose their markets, but publics arise on their own and choose the organisation for attention.

A public may not ever use/buy the service or product of the organisation. SO you might not purchase wood chip products made by Gunns, or asbestos fencing made by James Hardie, but you can certainly be an active public by demonstrating against the companyʼs practices.

Identifying and defining publics

DEMOGRAPHICS PSYCHOGRAPHICS

Age, gender, ethnicity Attitude

Marital/family status Opinion

Education, Occupation, Income, Suburb

Behaviour

Political/religious affiliation


Practitioners define publics by several methods, or characteristics. Commonly these are referred to as a public’s demographic. These include:

(show table, column 1)Age gender ethnicityFamily/Marital statusEducation

The way publics are analysed can be further refined by considerinng intangible characteristics. This is called psychographics is (show table column 2)

Avoid “general public”

Define broad categories

Narrow to definable components (eg., Surfers > body boarders, longboarders, big-wave)

Set priorities (which are most important?)

Tips for researching publics


The reason why PR uses these clearly defined techniques to identifying audiences is because it deals with specific publics’ opinions, rather than mass opinion. And this is only increasing in importance as audiences fragment into ever smaller sub audiences.

Case study: film launch


Brief

• Work with EP to find project• Goal: to promote Film Australia as a leading

producer of quality films in the national interest


Objectives

Results objective: • To increase awareness of FA’s niche products

among specific publics

Process objectives: • Generate interest via media.• Launch to attract key influencers.

Friday, 7 January 2011• Results objective:

• To increase awareness of FA’s niche products among specific publics, in this case plane enthusiasts.

• Process objectives:

• To conduct a media campaign during production and post-production to generate interest in the film, gaining coverage in all Sydney dailies and national papers; and three key aviation mags.

• To hold a launch during May at KS airport which would attract at least 120 flying buffs and aviation/film journalists.

Channels

• Media releases – during production• Launch at Kingsford Smith Airport


Evaluation

• Sales• Media coverage• Attendance at launch


Case study: save TV show

Friday, 7 January 2011WB announced 13 Feb 2008 they would cancel the show Angel The Save Angel Campaign was formed from the fan base and created the saveangel.org.website. Online petitions, letter writing, rallies outside warner bros, full page ads in variety and hollywood reporter, get a friend viewing – manipulating the ratings food drive to help the helpless and …

Friday, 7 January 2011Also available in number of tee shirt designs

Demos potential of strategic alliances – blood bank already has a good name and large data base, so by teaming up get better results.Publics –Warner brosFoxViewersUnactivated viewersReligious groupsOther networks

Part 2STAKEHOLDERS


What’s a ?

“Stakeholders are those individuals who perceive themselves as having an interest (stake) in the actions of an organization.”– Baskin, Aronoff & Lattimore (1997)

“Any group or individual who is affected by, or can affect, the achievement of an organization’s objectives ... any identifiable group or individual on which the organization is dependent for its continued survival.”– Freeman (1983)

Friday, 7 January 2011The term stakeholders actually originated from the early mining days, when prospectors struck a claim. The marked the boundary by driving stakes into the area. Itʼs now commonly used to describe someone with a stake in an organisation and infers they have something at risk. Stakeholders are concerned with how your organisation performs.

More modern definitions are:

• Baskin and Aronoff (1997)• Freemanʼs definition has been expanded to include groups who have interests in the corporation, regardless of the corporationʼs interest in them. Others have narrowed the definition to those who contribute to the financial bottom line of the organisation.

"Stakeholder" is not a word that is used much in marketing. In marketing, you have consumers, shoppers, customers, prospects, segments, niches - but not stakeholders. Part of the

reason is that traditional marketing communications is outbound persuasion. Here is the product/service. Here are the features and benefits. Here are the competitive advantages and the

unique selling proposition. Now buy the product or service.

Stakeholder characteristics

They may be customers, shareholders, employees, members, donors, customers, or (sometimes) members of society (the public).

They generally express themselves through groups that share a common purpose (e.g., shareholder/staff meetings).

Friday, 7 January 2011• They may be customers, shareholders, employees, or just members of society. • They generally express themselves through groups that share a common purpose (see examples on screen).

In any case, stakeholders are usually specific, or clearly-defined audiences, that PR people spend most of their time working with (or on) as the case ma be. They are people who are perceived to have self-interest as a reason for their association with an organisation, so that makes them the organisationʼs key “constituents”. Much of the PR personʼs time is spent working on reinforcing, broadening or deepening the two-way communication that helps bind them together.

Stakeholders & key ‘publics’

Stakeholders PublicsVested interest. Passing through

Performance-orientated Issues-orientated

Influence policy Influence decisions

Heavy-hitters Activists

Individuals Groups

Investment-orientated Action-orientated

Specialised information Specific information

Performance Behaviour

Chosen by organisation Arise on their own

Friday, 7 January 2011Baskin and Aronoff say: “A public is a group of people who share a common problem or goal and recognise their common interest.”

Stakeholders is a term which refines a public to mean those with a vested interest or “stake” in an organisation.

So in that regard they differ markedly from publics (or audiences) are generally affected by more the “daily” aspects of the issues generated by an organisation and are the recipients of most messages.

The table presented here can be considered a general summary of the differences between publics and stakeholders.

Publics v stakeholders

Organisations choose stakeholdersPublics arise on their own ... they

Do something

Similar problem Recognise problem

Friday, 7 January 2011 Just to recap from slide 9, James Grunig differentiated the terms “stakeholder” and “public” the following way:

• organisations choose stakeholders by their marketing strategies, recruiting, and investment plans, but • publics arise on their own and choose the organisation for attention.

In essence a public is a group of people who ...face a similar problem > recognize the problem, and > organize themselves to do something about it.

1. Globalisation2. Professional investors3. Sophisticated customers 4. Empowered employee5. Information revolution6. Increased business reporting

Importance of stakeholders

Friday, 7 January 2011A number of factors is behind the growing importance of stakeholders. These include:

1." Globalisation - most organisations need to compete more strongly for customers, capital and employees as more of the world opens up to international trading markets.2." The rise of the professional investor - more than ever before, companies are subject to the influence of professional fund managers, such as superannuation funds.3." The rise of the sophisticated customer - customer expectations are higher than ever before.4." The rise of the empowered employee - individuals are taking more responsibility for their own and their employer's performance and are demanding more involvement in decision making.5." The information revolution - electronic information technology equips stakeholders with information almost instantly.6." Rising awareness of the influence of business on society - ethics and corporate integrity are high on society's agenda today - stakeholders are aware more than ever before of company behaviour.

Stakeholder groups & aims

GROUP AIMShareholders Max. share price, dividend

Customers Supply, fair price, environment, cultural & social benefits

Banks, creditors Stable, safe, sufficient income stream

Employees Stable, fair conditions, maximum pay

Affiliates Steady business, managerial support

Competitors To compete without damaging the other

Government taxes, legal & fair trading, environment, social/cultural benefits, compliance

Suppliers Steady business flow, low cost, honesty

Friday, 7 January 2011They may be customers, shareholders, employees, or just members of society. They generally express themselves through groups that share a common purpose, such as environmental or consumer causes.

• Don’t turn them off• Nurture• Long-term strategy• Understanding

Stakeholders on tap

Friday, 7 January 2011Since many communication projects and programs are relatively short-term in nature, it is all too easy to move on and forget some of your most important stakeholders when an issue is resolved. It is easy to forget, or at least to put on the backburner, consideration of those stakeholders. Yet some of those stakeholders will continue to be important to you.

• Good relationships canʼt be turned on and off like a tap. You need to nurture them or they will wither. If you donʼt nurture them, they will invariably be more difficult to resurrect when needed later. Good relationship management is required.

For instance, your organisation may need to maintain a good relationship over a number of years with a legislator, government department, regulatory body, consumer association, supplier or shareholder group. They may influence decision makers or make their own decisions that could have a profound impact on your organisation at a later time.

• • Stakeholders have to be nurtured over the long term, which is one of the core principles of PR – thatʼs it focuses on long-term relationships, unlike many forms of marketing.

• The way stakeholders view a problem can cause an organisation to modify or change its stance (and PR has to be fluid). Just remember that they are viewing the situation from their perspective, not managementʼs, so you will have to understand their situation in order to address it.

Shift in the “power of voice”

Instant bad ‘press’

Friday, 7 January 2011I mentioned globalisation and increased business reporting. In the same vein, organisations are now under more pressure to respond at an ever-increasing pace to crises. You might recall from your textbook readings last week, that the Tylenol case was mentioned. That was back in 1982. When Johnson and Johnson was ready to announce its strategies, it did so using satellite technology - one of the first companies to do so. Much in the same way, Greenpeace used satellite broadcasts in the Brent Spar incident. We’ll discuss this in a later lecture. However, it highlights that publics today can be anywhere and everywhere, and instantly.

• I’ll just also briefly mention a trend which is referred to as a shift in what’s called the ‘power of voice’. It is argued that companies are being outwitted and out-manoeuvered by people and organisations with differing views.

ListenEngageRelevanceCredibility

Managing stakeholders

Friday, 7 January 2011Finally, there are several things which underpin the approach to stakeholder management, whether on line, or by more traditional means. In fact these are central to all facets of PR. They are:• Willingness to listen• Willingness to engage• Provision of relevant, timely information• Credibility

Certainly by doing those things you will lessen the negative impact of issues and crises when they hit.

Managing stakeholders

DefinePrioritiseMeasure

Friday, 7 January 2011Finally, in your online material there is a Paper by Brad Rawlins, who presents thinking into the science of managing stakeholders (in four steps):

■ First make sure everyone knows who all the stakeholders are and what (conflicting) agendas they are bringing into the game.

■ Second, prioritise stakeholders based on their attributes of legitimacy, power and urgency.

■ Third, determine the extent to which individual stakeholders personally connect with the situation or issue.

■ The real payoff is a set of guidelines for communications to different types of stakeholders (handy for doing assignments).

So stakeholder management is not an arcane practice. It is actually something we engage in every day.