state of public relations in 2011 — rosanna fiske presentation

PR

SA

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mi The State of Public Relations:

Corporate Trust & Transparency in the

‘WikiLeaks Age’

The State of Public Relations: Corporate Trust &

Transparency in the ‘WikiLeaks Age’

PRSA Miami — Feb. 15, 2011

Rosanna M. Fiske, APR

Chair and CEO, PRSA

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Vibrant Period for PRVibrant Period for PRDespite economic woes, PR industry rapidly

growing

Poised for 55% growth in domestic spending by 2013

Will hit $8 billion in U.S. spending

Spending on advertising in U.S. dropped by 3% in 2008 & 8% in 2009

Two key factors leading growth:

Word-of-mouth communications & social media/digital services

Source: 2010 Veronis Suhler Stevenson Communications Industry Forecast

Despite economic woes, PR industry rapidly growing

Poised for 55% growth in domestic spending by 2013

Will hit $8 billion in U.S. spending

Spending on advertising in U.S. dropped by 3% in 2008 & 8% in 2009

Two key factors leading growth:

Word-of-mouth communications & social media/digital services

Source: 2010 Veronis Suhler Stevenson Communications Industry Forecast

Miami PRSA – Feb. 15, 2011

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What’s Guiding the Industry … And PRSAWhat’s Guiding the Industry … And PRSABusiness Value of Public Relations

Increased value of PR due to reputational & market challenges

Modernizing Traditional Ethical Standards

Every week, new technologies & channels come online

How well do our ethical standards work for today’s modern marketing challenges?

Diversity in the Profession

Hispanic market offers immense opportunities to test innovative public relations practices

Business Value of Public Relations

Increased value of PR due to reputational & market challenges

Modernizing Traditional Ethical Standards

Every week, new technologies & channels come online

How well do our ethical standards work for today’s modern marketing challenges?

Diversity in the Profession

Hispanic market offers immense opportunities to test innovative public relations practices


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What Today’s CEOs Most WantWhat Today’s CEOs Most WantReputation Management

Ask the public: CEOs need better reputations

2011 Edelman Trust Barometer found that trust in U.S. businesses down to 46%

Barely higher than last-place Russia

2009 McKindsey study found that reputation risk was top concern of CEOs

50 percent of CEOs feel unprepared for managing reputational threates

Reputation Management Ask the public: CEOs need better reputations

2011 Edelman Trust Barometer found that trust in U.S. businesses down to 46%

Barely higher than last-place Russia

2009 McKindsey study found that reputation risk was top concern of CEOs

50 percent of CEOs feel unprepared for managing reputational threates


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New Reality in Reputation ManagementNew Reality in Reputation ManagementYear of the “Gotcha!” Moment

November Forbes article reveals WikiLeaks planning mass assault on corporations

New, transient whistle-blower groups popping up everywhere

WikiLeaks is best known, but watch out for OpenLeaks, Brilliant Yes Men, etc.

Technology, Not Insight & Experience, Dictates Reputation Management

Like it or not, we’re largely at the whim of technology we’ve readily embraced

Year of the “Gotcha!” Moment November Forbes article reveals WikiLeaks

planning mass assault on corporations

New, transient whistle-blower groups popping up everywhere

WikiLeaks is best known, but watch out for OpenLeaks, Brilliant Yes Men, etc.

Technology, Not Insight & Experience, Dictates Reputation Management

Like it or not, we’re largely at the whim of technology we’ve readily embraced


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Public Relations OpportunitiesPublic Relations OpportunitiesTrust in American businesses drops to 46%

…Trust in American businesses drops to 46%

…


… But growing strong in global markets, especially BRIC countries

Source: 2011 Edelman Trust Barometer

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The Ethical Approach: DisclosureThe Ethical Approach: DisclosureWe must advise clients & employers to

be transparent as possible Doesn’t mean taking unnecessary risks with

information

Confidentiality still matters & should be respected

Now is about communicating how you manage a business

We must advise clients & employers to be transparent as possible

Doesn’t mean taking unnecessary risks with information

Confidentiality still matters & should be respected

Now is about communicating how you manage a business


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Image vs. ReputationImage vs. ReputationParadoxically, image often matters

more than reputation Reputation is hard-earned; image can often

be fleeting

2010 Inc. magazine article noted that 60 percent of employees don’t trust executives to turn business around

Commitment to building reputation is antidote to crowded & hyper marketplace of ideas, products & services

Paradoxically, image often matters more than reputation

Reputation is hard-earned; image can often be fleeting

2010 Inc. magazine article noted that 60 percent of employees don’t trust executives to turn business around

Commitment to building reputation is antidote to crowded & hyper marketplace of ideas, products & services


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Trust in CEOs: Credibility MattersTrust in CEOs: Credibility MattersTrust in CEO as credible resource on rise in

U.S. & globally Stands at 34% in U.S. & 50-plus globally

CEOs benefitting from transparency in communications

CEO is more than manager — chief communicator of how business is ethically managed

Trust in CEO as credible resource on rise in U.S. & globally

Stands at 34% in U.S. & 50-plus globally

CEOs benefitting from transparency in communications

CEO is more than manager — chief communicator of how business is ethically managed


Source: 2011 Edelman Trust Barometer

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WikiLeaks: Public Enemy No. 1?WikiLeaks: Public Enemy No. 1?Yes … and No.

Viewing WikiLeaks as enemy threat to biz would be mistake

Should be seen as an opportunity

Global call to action for more corporate transparency

Still, significant corporate reputational threats on the horizon

Yes … and No.

Viewing WikiLeaks as enemy threat to biz would be mistake

Should be seen as an opportunity

Global call to action for more corporate transparency

Still, significant corporate reputational threats on the horizon


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Modern Ethics for Modern Business ChallengesModern Ethics for Modern Business ChallengesTraditional Ethical Standards Must Meet

Today’s Marketing Challenges

PR’s rapid & successful adoption of technology

Dramatically increased our value

Increased value comes with increased responsibility

We must rewrite the rules of engagement

Bring ethical standards up to speed with today’s challenges & opportunities

Traditional Ethical Standards Must Meet Today’s Marketing Challenges

PR’s rapid & successful adoption of technology

Dramatically increased our value

Increased value comes with increased responsibility

We must rewrite the rules of engagement

Bring ethical standards up to speed with today’s challenges & opportunities


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Disclosure in Digital AgeDisclosure in Digital Age

We’re in an era where disclosure in digital/social comms isn’t in vogue

Disclosure of relationships, motivation & compensation

Take reasonable steps to inform consumers

Provide links to info on all uses for data

Where material connections exist btw. brand & bloggers

We’re in an era where disclosure in digital/social comms isn’t in vogue

Disclosure of relationships, motivation & compensation

Take reasonable steps to inform consumers

Provide links to info on all uses for data

Where material connections exist btw. brand & bloggersMiami PRSA – Feb. 15, 2011

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Diversity in the ProfessionDiversity in the Profession

Not just a catch-all anymore — now core focus of PRSA’s advocacy

Members tell us diversity in PR key to driving agency & business growth

Businesses seeking more global perspective to comms & marketing

Not just a catch-all anymore — now core focus of PRSA’s advocacy

Members tell us diversity in PR key to driving agency & business growth

Businesses seeking more global perspective to comms & marketing


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The Business Value of DiversityThe Business Value of Diversity

“By incorporating different types of voices

to tell an organization’s story, it can only

enrich the communications capabilities

while adding to the creative mix. Diversity

in communications also can mean

building bridges to new audiences or

tapping into new perspectives and

ideas.”

— Larry Jones, PRSAY blog, Feb. 1, 2011

“By incorporating different types of voices

to tell an organization’s story, it can only

enrich the communications capabilities

while adding to the creative mix. Diversity

in communications also can mean

building bridges to new audiences or

tapping into new perspectives and

ideas.”

— Larry Jones, PRSAY blog, Feb. 1, 2011


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Business Value of PR ResearchBusiness Value of PR Research

Like Diversity, Research in PR Has Progressed …

•… Still, there is more that should be done

•Funding for PR research & education remains in its infancy

•Only $15 million devoted in 2010

Like Diversity, Research in PR Has Progressed …

•… Still, there is more that should be done

•Funding for PR research & education remains in its infancy

•Only $15 million devoted in 2010


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PR Grows as Business RecoversPR Grows as Business Recovers

State of the public relations industry is vibrant

•Advanced technology, diverse business community & demand for ethical comms all increasing role PR plays

•PRSA at forefront, advocating on behalf of members & the profession

State of the public relations industry is vibrant

•Advanced technology, diverse business community & demand for ethical comms all increasing role PR plays

•PRSA at forefront, advocating on behalf of members & the profession


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Thank you!Thank you!

Any questions?Any questions?


state of public relations in 2011 — rosanna fiske presentation

Business

ceos

trust

business

transparency

ceo

wikileaks

disclosure