Presentation on theme: "Reduce, Research and Reckon with Risk Pat Gaudin FCIPR Chartered Practitioner December 2011."— Presentation transcript:
Reduce, Research and Reckon with Risk Pat Gaudin FCIPR Chartered Practitioner December 2011
Relationships PR is about building and maintaining relationships From your own experience what is key to successful relationships?
Trust reliability, confidence, integrity, honesty, trustworthy Being ethical and professional is core to having a good reputation Gregory 2009
A Romp Trust CSR Risk News media Reputation Relationships
Trust Trust is the cement in the relationship between institutions and civil society. When trust breaks down, civil society either withdraws from participation or expresses protest outside the mainstream channels of participation Greenwood (2003:49)
Trust The pursuit of ever more perfect accountability provides citizens and consumers, patients and parents with much more information, more comparisons and more complaints systems - but it also builds a culture of suspicion, low morale and may ultimately lead to professional cynicism – and then we would have grounds for mistrust Onora O’Neill, BBC Reith Lectures, 2002
2011 Edelman Trust Barometer The lead of the story must be that trust is transformed. In the wake of the financial market meltdown at the end of 2008, we have gone through a series of corporate crises during 2010 - from oil spills to product recalls affecting the leading enterprises in five sectors to the near-bankruptcy of five nations in the EU. We also found unprecedented scepticism, a need to hear, see or watch news as many as ten times before achieving belief, plus an increased reliance on those with credentials and expertise.
Building Trust Corporate social responsibility Hobbes, Rousseau and Rawls Quakers Education Communication
Benchmark Company position Philanthropy Enlightened self interest Business basics – law health and safety
The place of CSR Company mission Objectives/priorities Community needs and expectations Employee development interests
Matrix Core values Business objectives Key publics Employee support
Corporate Social Responsibility A concern with these issues can actually lead to improved performance Crowther – Social environmental accounting September 2000 Sustainable companies, ie companies integrating economic aspects with environmental, ethical and social – yield a larger return than conventionally managed companies Holmstrom, S The Reflective Paradigm – Masters thesis 2002
The Co-operative Bank Why are you our customers? What else do you want? (30,000) Human Rights – 90% Armaments – 87% Animal exploitation – 80% Environmental damage – 70% Fur trade 66%
Buddha As the bee collects nectar and departs without injuring the flower, its colour or its scent, so let the sage dwell in his village
Crises very often become trust crises There is danger in the possibility of jumping-over of trust losses to the next level Trust losses in individual actors/agents Gunter Bentele Bledcom 2009 Trust losses in organisations, products, brands, services Trust losses in smaller social systems (health, finance, pensions, etc.) Trust losses in larger social systems (economy, democracy as a political system, etc.) 27 A Theory of Public Trust
Is this correct? ‘balance of power has shifted too far and that companies need to wrest back control of their reputations’ Or have we squandered it with self- centered behaviour? Andrew Griffin – New Strategies for Reputation Management in R and L p14
Defining Risk How do you define risk in your own organisation? What are the main risk areas? Where do communications/reputation fit in? How do you respond?
Risk A measure of the adverse effect of an issue Assessing and communicating the possible hazards associated Relative to the safeguards and benefits Helps us as consumers to make choices about our health and safety and the protection of the environment Regester and Larkin 2008:21
Auto responses to risk Experiment Fight Flight Play dead Freeze Renn 2010
Influencing decisions Economic System Channeling effectively Pareto principle Distributive discourse (bargaining) Maximizing utility/ efficiency Social System Sustaining relationships Mutual understanding Therapeutic discourse Empathy/fairness Evidence/effectiveness Collectively binding norms/legitimacy Expert System Sustaining meaning Research and peer review Cognitive and interpretive discourse Political System Sustaining order Compatibility with universal or positive principles Normative discourse
39 DecidingUnderstanding Pre-assessment ManagementCommunication Characterisation and evaluation Appraisal IRGC’s Risk governance framework Who needs to do what, when? Who needs to know what, when? Is the risk tolerable, acceptable or unacceptable? Getting a broad picture of the risk The knowledge needed for judgements and decisions
Dialogue A conversation without sides 40,000 untested chemicals Public anxiety Uncertainty Negotiation
From communication to public involvement Information needed for decision Our brains are wired to forget Allow for reflection and consideration Inclusion – all policy options and scenarios Preferences
Objectives of Risk-Benefit Communication Enlightenment: Making people able to understand risks and benefits (and their interactions) Behavioral changes: Making people aware of potential risks and benefits help them to make the right choices Trust building: Assisting risk management agencies to generate and sustain trust Conflict resolution: Assisting risk managers to involve key publics and affected parties to take part in the risk-benefit evaluation Renn 2010
Attitudes Estimating – over for sensation, under for every day Nature and nurture Benefit and trust Source Emotion Regester and Larkin (2009:22)
Context Newly emerging Degree of existing New perception
Defining the public relations problem Situation analysis Defining the issue PEST(LE) Political - Economic – Social – Technical (Legal – Environmental) Gregory, A
Risk perception Emerging danger – randomness threat Creeping danger – long delay Yes – take the risk No – no benefits seen Maybe – want to trust but no proof Arbitrary Renn, O
Some Major Insights Risk-benefit communication needs to address: Difference between risk and potential hazard Difference between random event and faulty behavior The process of management decision making The trade-offs and value conflicts when making management decisions (risk-benefit-balancing) The meaning of standards and the respective protective goal behind them Renn, O
Trust and credibility cannot be “produced” or “manufactured” but only earned in terms of performance and effective communication Renn, O
Communication Urgency - conflict Legitimate - research and listen Public support Misunderstandings create crises Shared futures - mutual mindset Respect social commons Build significance - strengthen relationships
Journalists Intellectually shallow, morally vacuous and socially privileged. When politicians complain about journalists it’s like junkies complaining about their dealers. They both need each other. Matthew Taylor - Fabian New Year Conference 2003
UK News Media outstanding reporting and accurate writing mingle with editing and reporting that smears, sneers and jeers; names, shames and blames Onora O’Neill, BBC Reith Lectures, 2002
According to Jock Young There is, institutionalised into the media the need to create moral panics and issues that will seize the imagination of the public. Images of Deviancy ed. S. Cohen Penguin 1971
Vital to us - hug a hack! Understand what they want Ensure you provide it all plus some Be aware of the needs of the news media at all times Never say no comment!
Hackney Council is reviewing its emergency comms planning in the wake of the summer riots as the London 2012 Olympics approaches Hackney’s head of media and external relations Polly Rance said that her comms department was prepared for the riots issue to take hold in the media again, in particular during milestones such as ‘one year on’ or during the Olympic Games. PR Week 18 October
What is Reputation? Henry Ford - "You can't build a reputation on what you are going to do." Reputation is the result of an organisation's former actions, not its promises.
Reputation Research in 2000 - definitely affected by bad behaviour, low morale etc Little or not at all affected by business as usual or ‘good news’ stories Most ‘relationships’ are built with those who have no consequence PR must be at a the leadership level Verčič, D -Trust in organisations: a study of the relations between media coverage, public perceptions and profitability - unpublished doctoral dissertation 2000
Reputation Out of step with messages = inertia In line = energy PR is the profession best suited to the business of building loyalty and advocacy CBI Reputation has grown to represent 70% of balance sheet assets - DTI
Returning to Relationships Trust Reputation Relationships
Relationships’ outcomes Trust (Chia:2005, Rhee:2007) Increased media coverage (Downes: 1998, Jo and Kim:2004) Decreased negative media coverage (Downes:1998, Jo and Kim:2004) Success with political achievements (Kovacs:2003 Wise:2007) Reduced Risks!
Bibliography Gregory A in Exploring Public Relations; Tench and Yeomans ed; 2nd edition p 284 (2009) Greenwood, J in New Activism and the Corporate Response, Palgrave Macmillan 2003 Onora O’Neill, BBC Reith Lectures, 2002 Easton Mark 5 December 2011 last updated at 15:55: Were the riots caused by bad manners? BBC news http://www.bbc.co.uk/news/uk- 16035543 accessed 6.12.11http://www.bbc.co.uk/news/uk- 16035543 accessed 6.12.11 Edelman Trust Barometer (2010/2011) Crowther – Social environmental accounting September 2000 Holmstrom, S The Reflective Paradigm – Masters thesis 2002 Dhammapada The Wisdom of Buddha, translated by F Max Muller: Dover Publications 2000 Bentele, G Bledcom paper 2009 Regester, M and Larkin, J Risk, Issues and Crisis Management, Kogan Page 2008
Bibliography Renn, O. Euprera congress, University of Jyväskylaä, Finland 2010 Isaacs, Dialogue - the art of thinking together, Currency Doubleday 1999 Wolstenholme, S Growth of social marketing, PR and Global Trends - Tritonic 2007 Tench & Yeomans, Exploring Public Relations, Pearson 2006 Matthew Taylor - Fabian New Year Conference 2003 S. Cohen - Images of Deviancy Penguin 1971 Verčič, D -Trust in organisations: a study of the relations between media coverage, public perceptions and profitability - unpublished doctoral dissertation 2000 Chia:2005, Rhee: 2007, Downes: 1998, Jo and Kim:200, Downes:1998, Jo and Kim:2004, Kovacs:2003 Wise:2007 in PR Digest,, Pearson 2009