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"A New Challenge for Public Relations Professionals"By Sarah Clark Sarah.clark@careertrainingdirectory.com Career Training Directory Columnist Given the string of recent corporate scandals involving fraudulent activity by CEOs and other high-level corporate leaders, big business has a big job to do in reestablishing trust with investors and working Americans. What does this mean for public relations and corporate communications professionals? Corporate Communications Pros Changing ImagesIt could mean that corporate communications professionals play a bigger role in shaping corporate images to reflect integrity and honesty. For example, an external public relations firm or in-house PR department might partner with an advertising agency to help craft a message that improves its image.With Wal-Mart having received bad press for their employment practices, that's exactly what they've attempted to do in launching a set of ads, featuring company employees speak out for its benefits package and work culture. Are Public Relations Efforts Enough?With an increasing number of Americans signaling strong displeasure with the current performance of corporate executives, feel-good commercials might not be enough. According to the New York Times, a Roper poll conducted this year revealed that 72 percent of respondents felt that corruption is widespread throughout U.S. corporations. That figure was up from 66 percent the previous year.To assuage investor worry over the continued possibility of executives' misreporting financial data, the U.S. government has taken steps to curb fraudulent accounting activity. The Sarbanes-Oxley Act requires corporations to adhere to a more stringent set of financial disclosure regulations. Another issue that stimulates suspicion of CEOs among regular Americans is the amount of pay they receive and that their compensation is often not tied to performance. Again, legislators are looking at ways to address this issue. The New York Times reported that representative Barney Frank recently introduced a bill that would require shareholders to approve CEO compensation packages. While public relations professionals have a big role to play in getting business out of the dog house, it appears that positive messages will not be enough. The government will likely have to play a role, as will shareholders, in holding leadership accountable for their poor performance or unlawful behavior. Sources:The New York TimesAbout the AuthorSarah Clark is a freelance writer based in Virginia.Posted on: February 13, 2006 |
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