11-1 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

11-2 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  In the 21 st century, most organizations realize they have an obligation to support their communities.  Companies in the 1960s, 70s and 80s prided themselves on “social responsibility,” giving back to their communities.  They provided help in areas such as poverty, education and cultural enrichment.

11-3 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  In the 1990s, corporate social responsibility took a back to seat to maximizing profits.  When the bubble burst, companies struggled to support charities, and charities struggled to support constituents.

11-4 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Serving diverse, multicultural communities has become a top business mandate.  Today’s society is increasingly multicultural:  By 2008, more than one-third of the U.S. population claimed “minority” status.  Minority buying power has grown to $600 billion per year.  Ethnic print and broadcast media have multiplied rapidly.  The Internet has spawned numerous virtual communities, uniting many ethnic groups.

11-5 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Work background  Education  Age  Gender  Race  Ethnic origin  Physical ability  Religious belief  Sexual orientation  Other characteristics The mandate of every organization is to become more diverse and to communicate with those who differ in:

11-6 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Helping to maintain clean air and water  Providing jobs for minorities  Enforcing policies for employees  Enhancing employees’ overall quality of life

11-7 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Most companies today donate a percentage of profits to nonprofit organizations.  A 2004 survey of 189 companies revealed:  $12 billion in estimated corporate contributions worldwide.  54% proportion of U.S. giving to health and human services.  22% rise in U.S. giving from 2003 to 2004.

11-8 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Donations to non-profit organizations, such as schools, hospitals, and social welfare institutions.  Corporate philanthropy may go toward community-based groups working to expand affordable housing, create economic opportunities, and protect the environment.

11-9 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Organizations actively encourage executives and employees to volunteer in their communities.  Most companies strive to be true citizens of their communities, as well as agents for social change.

11-10 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall What are some ways that organizations in your community have given back to citizens?

11-11 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall To co-exist in its community, an organization must: 1. Determine what the community knows and thinks about the organization. 2. Inform the community of the organization’s point of view. 3. Negotiate or mediate between the organization and the community and its constituents as needed.

11-12 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Tangibles such as wages, employment and taxes  Intangibles such as:  appearance  participation  stability  pride

 Appearance : the community hopes that the firm will contribute positively to life in the area. It expects facilities to be attractive, with care spent on the grounds and structures  Participation: as a citizen of the community, an organization is expected to participate responsibly in the community affairs, such as education, welfare and support of religious institutions Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Stability: a business that fluctuates sharply in volume of business, number of employees and taxes paid can adversely affect the community through its impact on municipal services, school loads, public facilities and tax revenues  pride: any organization that can help put the community on the map simply by being there is usually a valuable addition. Communities want firms that are proud to be residents Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

11-15 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Adequate municipal services  Fair taxation  Good living conditions for employees  Sufficient labor supply  Support for the business and its products

11-16 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Think of how an organization has affected life in your community.  What were the results? Were they positive or negative? How so?

11-17 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Winning community support is no easy matter.  Organizations must write policies that clearly define their obligations to the community.  The workers ARE the company. Employees must understand and exemplify their firm’s policies.

 Typical community relations objectives may include the following: 1. To tell the community about the operations of the firm, its products, number of employees, size of the payroll, tax payments, employees benefits, growth and support of the community projects 2. To correct misunderstanding, reply to criticism and remove any disaffection that may exist among community neighbors Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

3. To gain the favorable opinion of the community, particularly during strikes and period of labor unrest, by stating the company’s position in the issues involved 4. To inform employees and their families about the company activities and developments so that they can tell their friends and neighbors about the company and favorably influence opinions of the organization Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

5. To inform people in local government about the firm’s contributions to community welfare and to obtain support for legislation that will favorably affect the business climate of the community 6. To find out what residents think about organization, why they like or dislike, its policies and practices, and how much they know of its policy, operations and problems Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

7. To establish a personal relationship between management and community leaders by inviting leaders to visit the plant and offices, meet management and see employees at work 8. To support health programs through contributions of both funds and employees services to local campaigns Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

9. To contribute to culture by providing funds for art exhibits, concerts and drama festivals and by promoting attendance at such affairs 10. To assist the economy of the community by purchasing operating supplies and equipment from local merchants and manufacturers whenever possible 11. To cooperate with local business in advancing economy and social welfare through joint community relations programs Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

11-23 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall A sense of community lies at the heart of the Internet. Thus, organizations have used the Internet for social good:  Black Entertainment Television created to bring “connectivity, content and commerce” to African- Americans.  AOL teamed up with top musicians to present LIVE 8, a simulcast concert aimed at ending world poverty.  helped fund major charities by selling name-brand retail goods, then donating part of the purchase price to the charities.

11-24 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  “Minorities” are rapidly becoming the majority. Today, 38 million Americans are foreign-born.  Latinos have overtaken African-Americans as America’s largest minority group.  Women now dominate the public relations field along with many service industries.  People from diverse backgrounds are key members of the labor force and of the U.S. economy.

11-25 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Women Women have made large strides in leveling the playing field between work and home duties. Today, many head large corporations.  Latinos Latinos are the fastest growing minority in the nation. They are a potent political and economic force, and are major media consumers.

11-26 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  African-Americans Their socioeconomic status has improved markedly. A range of special media has emerged to reach them.  Other ethnic groups  Asians have grown in the American marketplace, both as consumers and constituents.  Muslims living in the U.S. have faced new challenges since New media outlets have emerged to serve them.

11-27 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Gays, seniors, and others In the 21 st century, a diverse assortment of special communities has gravitated to the mainstream of American commerce. Gays have become attractive to marketers. Senior citizens are growing as consumers, voters and opinion leaders. People with disabilities are growing equally fast as a social force and as a market for a range of goods and services.

11-28 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Nonprofit organizations are champions of diversity and equity in communities.  They serve social, educational, religious and cultural needs.  The nonprofit sector includes:  Hospitals  Schools  Trade associations  Labor unions  Chambers of commerce  Social welfare agencies  Religious institutions

11-29 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Nonprofits often raise public awareness through media advocacy, including protests, marches and stealth Internet campaigns.

11-30 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Nonprofit public relations professionals must master many functions, including:  Positioning the organization  Developing a marketing/promotional plan  Media relations  Supporting fundraising

11-31 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1. Identify campaign plans and objectives 2. Organize fact finding 3. Recruit leaders 4. Plan and implement strong communications activities 5. Periodically review and evaluate

11-32 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  The cultural diversity of society in the 21 st century has spawned a wave of “political correctness.”  Intelligent organizations must be responsive to the needs and desires of diverse communities.  Community relations is only as effective as the support it receives from top management.