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LECTURE 3 History and development of corporate communication

LECTURE 3 History and development of corporate communication. Introduction History & Development of PR in America History & Development of PR in Britain History & Development of PR in Malaysia Implications Conclusion. History & Development of Public Relations and Communication Management.

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LECTURE 3 History and development of corporate communication

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  1. LECTURE 3History and development of corporate communication

  2. Introduction • History & Development of PR in America • History & Development of PR in Britain • History & Development of PR in Malaysia • Implications • Conclusion

  3. History & Development of Public Relations and Communication Management • Introduction • * Importantly, corporate practice is also described to see how public relations is used for the benefit of multinational corporations and global PR firms. • * Western PR theories may shape the future directions of the Malaysian PR Industry in an era of globalisation

  4. PR World

  5. History & Development of PR in America (1/4) • The roots of PR were laid in the US in early 1900s – Theodore Roosevelt & Woodrow Wilson were US Presidents. • PR tools such as press agentry & publicity to influence public behavior in their political reforms • Publicity Bureau – the first firm was established in 1900 – by Michaelis, Small & Marvin • Creel committee headed by George Creel & Carl Byoir to mobilise public opinion.

  6. Edward Louis BernaysThe Father of Public Relations

  7. History & Development of PR in America (2/4) • Edward . Bernays – the father of PR, published the first book in PR (press agentry) – ‘Crystallizing Public Opinion’ in 1923. • He initiated the idea of ‘Engineering Public Consent’ – how to influence the values & attitudes of the public in the interest of meeting his clients’ objectives. • He also coined the term ‘public relations counsel’

  8. History & Development of PR in America (3/4) • Hill & Knowlton was developed in 1933. • They advised the Tobacco Industry Research Committee (TIRC) to improve the image of the industry. • BUT, later they were questioned as the firm has jeopardized the PR profession. • Arthur W. Page – the first corporate vice president of the American Telephone & Telegraph. Published ‘World Work Magazine’ focusing on mutual understanding btw organisation & public

  9. History & Development of PR in America (4/4) • World War 2 – Roosevelt – New Deal. It is aimed to implement radical reforms to boost the nation’s economy • PRSA founded in 1948 – is aimed to increase the PR professionalism – the world’s largest professional association

  10. Current Development of PR in America • James Grunig & research team studied the value of PR perceived by senior CC practitioners & CEOs. • Focusing on four models of PR – symmetrical & asymmetrical com – with regards to job satisfaction & return on investment. • Needs improvement – focusing on strategic management – corporate governance & corporate advisory roles.

  11. History & Development of PR in Britain (1/3) • The role of central & local government in informing & persuading public • In 1912, Lloyd George implemented the first old age pension scheme. • Llyod George was a Welsh prime minister • WW1 – propagating British propaganda • In 1924, Sir Stephen Tallents developed the Government PR Department. • He was the first president of IPR, UK

  12. David Lloyd George Prime Minister of Great Britain

  13. History & Development of PR in Britain (2/3) • PR in Britain was initially marshaled by former government information officers who then developed their own business. • Focusing on media relations & publicity • CIPR – awarded chartered status on Feb 2005. The Europe’s largest professional association.

  14. History & Development of PR in Britain (3/3) • PR profession contributed to economic activity, generating an annual turnover of 6.5 pound sterling. • Moving from propaganda activities to strategic management (public-be-damned era to knowledgeable & informed society) • PR in Britain is predominantly housed in Business Schools.

  15. Curent Development of PR in Britain • Needs improvement – developing additional business models. • Integrated with various social sciences disciplines – social psychology, business strategy, philosophy etc. • From PR to Corporate communication – towards international CC models -

  16. History & Development of PR in Malaysia (1/5) Background of Malaysia 4.1 Business and Economic Background of Malaysia 4.2 Cultural Diversity and Multiculturalism in Malaysia 4.3 Multicultural Public Relations 4.4 The Development of Public Relations in Malaysia

  17. History & Development of PR in Malaysia (2/5) • Defining Public Relations: A Malaysian Perspective Emphasising the importance in influencing public opinion, Mohd Sopiee Sheikh Ibrahim, who was the first President of IPRM, in 1973 defined public relations as: The ‘art and science’ that deals with the opinions of the people and an organisation’s relationship with the people it is involved with. The importance of public relations as a discipline that deals with the public opinion – as a means of exchanging attitudes and of molding public opinion – needs to put across (cited in Idid, in Sriramesh, 1004: 216)

  18. History & Development of PR in Malaysia(3/5) Defining Public Relations: A Malaysian Perspective James Peter Chin, who was the Vice-President of the IPRM, stressed the importance of the image of a company rather than focusing on the quality of products and services. In his definition of public relations, the relationship between an organisation and its publics is imperative. He pointed out that public relations as: … the art of maintaining harmony between the general public and the company. If the public thinks well of a company, it can be of benefit to the company in the market place (Idid, in Sriramesh, 2004: 217)

  19. History & Development of PR in Malaysia (4/5) Defining Public Relations: A Malaysian Perspective Beyond the world of commerce and considering the importance of the image of central and local governments, Ahmad Sarji Abdul Hamid in 1990 viewed public relations as: An image maker for the various ministries and government agencies and a source of information that would encourage debate about government policies and performance (Idid, in Sriramesh, 2004: 217)

  20. History & Development of PR in Malaysia (5/5) • Implications • Malaysian PR industry has been substantially influenced by Western PR philosophies from the early establishment of PR; * Use of English, * 2 way communications * move towards strategic managerial functions * IPRM is more likely to publicize and conduct social gathering rather than management research * Becoming a ‘global’ practitioner - learning new language

  21. Current Development of PR in Malaysia Conclusion PR has come to the stage where every organisation must value to ensure their corporation are par on with the global standard

  22. SCL-Recall Based Activity Given the historical development of corporate communication described in this lecture, discuss the reason why there is a transition from public relations to Corporate Communication?

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