2. Slide 1 of 63 Introduction to Public Relations Part One Public Relations…The Profession Chapter 4 Law and Ethics © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

3. Introduction to Public RelationsLaw and Ethics Slide 2 of 63 Professionalism in Public Relations Practice Ethical concerns Ethical concerns Professional commitment Professional commitment Legal framework Legal framework

4. Introduction to Public RelationsLaw and Ethics Slide 3 of 63 What Is Ethics? Definition: ethics is what is morally right or wrong in social conduct, usually as determined by standards of professions, organizations, and individuals. Ethics = Ethics = Commitment to High Standards regardless of advantage

5. Introduction to Public RelationsLaw and Ethics Slide 4 of 63 Ethics Is Based on One’s Character Word origin: comes from the Greek word ethos, referring to one’s character, the major force in right choices. Word origin: comes from the Greek word ethos, referring to one’s character, the major force in right choices. A person is viewed as ethical if one behaves by high standards of conduct and rightness, regardless of circumstantial advantage or reward. A person is viewed as ethical if one behaves by high standards of conduct and rightness, regardless of circumstantial advantage or reward.

6. Introduction to Public RelationsLaw and Ethics Slide 5 of 63 Ethics Starts With the Individual Pubic relations practitioners must have high personal standards of ethics. Pubic relations practitioners must have high personal standards of ethics. Without personal convictions, any professional code could easily become an object of relativism and manipulation. Without personal convictions, any professional code could easily become an object of relativism and manipulation.

7. Introduction to Public RelationsLaw and Ethics Slide 6 of 63 Practitioners Have Moral Obligations To ourselves—to preserve our own integrity To our clients—to honor our contracts and to use our professional expertise on our clients’ behalf To our organizations—to adhere to organizational goals and policies To our profession—to uphold the standards of the profession and, by extension, the reputation of our fellow practitioner To our society—to consider social needs and claims

8. Introduction to Public RelationsLaw and Ethics Slide 7 of 63 Need for Total Honesty Credibility comes with total honesty. Credibility comes with total honesty. Anything less will destroy your credibility and usefulness to your employer. Anything less will destroy your credibility and usefulness to your employer. News media depend on practitioners for much of the information they pass on (usually unverified) to their audiences. News media depend on practitioners for much of the information they pass on (usually unverified) to their audiences. If you provide inaccurate information, they will not rely on you as a source. If you provide inaccurate information, they will not rely on you as a source.

9. Introduction to Public RelationsLaw and Ethics Slide 8 of 63 PRSA Code of Ethics Major provisions Free flow of information Free flow of information Competition Competition Disclosure of information Disclosure of information Safeguarding confidences Safeguarding confidences Conflicts of interest Conflicts of interest Enhancing the profession Enhancing the profession

10. Introduction to Public RelationsLaw and Ethics Slide 9 of 63 Arthur W. Page Society Six principles of PR management Tell the truth Tell the truth Prove it with action Prove it with action Listen to the customer Listen to the customer Manage for tomorrow Manage for tomorrow Conduct public relations as if the whole company depends on it Conduct public relations as if the whole company depends on it Remain calm, patient and good-humored Remain calm, patient and good-humored

11. Introduction to Public RelationsLaw and Ethics Slide 10 of 63 PRSA Code of Ethics Major provisions Free flow of information Free flow of information Competition Competition Disclosure of information Disclosure of information Safeguarding confidences Safeguarding confidences Conflicts of interest Conflicts of interest Enhancing the profession Enhancing the profession

12. Introduction to Public RelationsLaw and Ethics Slide 11 of 63 Professional Codes of Conduct Why do critics say PR codes of ethics “have no teeth”? Why do critics say PR codes of ethics “have no teeth”? What is penalty for violating PRSA or IABC code of ethics? What is penalty for violating PRSA or IABC code of ethics? What is main purpose of codes of ethics? What is main purpose of codes of ethics?

13. Introduction to Public RelationsLaw and Ethics Slide 12 of 63 PR Ethics on the Web Disclose affiliations in chat rooms (and blogs) Disclose affiliations in chat rooms (and blogs) Offer opportunities for dialog, interaction with experts Offer opportunities for dialog, interaction with experts Reveal potential conflicts of interest Reveal potential conflicts of interest Adhere to high standards Adhere to high standards

14. Introduction to Public RelationsLaw and Ethics Slide 13 of 63 Ethical Dealings With News Media Trust only comes with habitual ethical performance. Trust only comes with habitual ethical performance. A practitioner’s effectiveness with the media can be destroyed by expensive shortcuts such as… A practitioner’s effectiveness with the media can be destroyed by expensive shortcuts such as… Extravagant parties Extravagant parties Expensive gifts Expensive gifts Personal favors Personal favors

15. Introduction to Public RelationsLaw and Ethics Slide 14 of 63 Individual Ethical Tips Here are eight tips to guide you in developing your own ethical convictions and behavior. 1. Never accept (or stay with) a client or a job with an organization or person with questionable character or conduct. 2. Always be honest with everyone, including the media. 3. Don’t handle competing clients. 4. Don’t make unfair comments about competitors.

16. Introduction to Public RelationsLaw and Ethics Slide 15 of 63 Ethical Tips Cont. 5. Keep the pubic interest in mind at all times. 6. Respect confidences. 7. Make sure all your financial activities are “above board.” 8. Use organizational codes—such as the PRSA Code—as a starting place, but incorporate your own standards as well.

17. Introduction to Public RelationsLaw and Ethics Slide 16 of 63 The CBS commentary about public relations Discuss the blog articles about the CBS story Discuss the blog articles about the CBS story PRSA video about the CBS story: http://www.youtube.com/watch?v=Xzf0eswdVk U PRSA video about the CBS story: http://www.youtube.com/watch?v=Xzf0eswdVk U http://www.youtube.com/watch?v=Xzf0eswdVk U http://www.youtube.com/watch?v=Xzf0eswdVk U

18. Introduction to Public RelationsLaw and Ethics Slide 17 of 63 Ethics discussion: What would you do Divide into teams Divide into teams Read the PRSA ethics scenarios Read the PRSA ethics scenarios Develop answers, based on the PRSA Code of Ethics Develop answers, based on the PRSA Code of Ethics Discuss answers in class Discuss answers in class

19. Introduction to Public RelationsLaw and Ethics Slide 18 of 63 Legal Topics Understand opposing views between public relations and legal counsel Understand opposing views between public relations and legal counsel Understand the role of the First Amendment in public relations practice Understand the role of the First Amendment in public relations practice Assess the impact of regulatory agencies on public relations practice Assess the impact of regulatory agencies on public relations practice

20. Introduction to Public RelationsLaw and Ethics Slide 19 of 63 PR Practitioners and Lawyers Handling of information sets up the sometimes adversarial relationship between public relations practitioners and lawyers. Handling of information sets up the sometimes adversarial relationship between public relations practitioners and lawyers. Practitioners know the value of “plain talk” in the court of public opinion. Practitioners know the value of “plain talk” in the court of public opinion. Lawyers are experts in understanding the discreet use of information. Lawyers are experts in understanding the discreet use of information.

21. Introduction to Public RelationsLaw and Ethics Slide 20 of 63 PR practitioners have to work with lawyers Click on the picture to hear about working with legal counsel.

22. Introduction to Public RelationsLaw and Ethics Slide 21 of 63 Legal Obligations for Practitioners First Amendment rights First Amendment rights Defamation Defamation Invasion of privacy Invasion of privacy Copyright and trademark laws Copyright and trademark laws Regulations of the FTC, FDA, FCC and SEC Regulations of the FTC, FDA, FCC and SEC

23. Introduction to Public RelationsLaw and Ethics Slide 22 of 63 First Amendment Rights and Limits First Amendment to the U.S. Constitution protects individual freedom of expression and also freedom of the press.

24. Introduction to Public RelationsLaw and Ethics Slide 23 of 63 What Does the First Amendment Say? Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press, or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

25. Introduction to Public RelationsLaw and Ethics Slide 24 of 63 Commercial Free Speech Some court decisions have been favorable regarding commercial speech by allowing corporations to speak out on public issues and to use issues-oriented advertising. However, courts are also interested in maintaining truth-in- advertising.

26. Introduction to Public RelationsLaw and Ethics Slide 25 of 63 Organizations As Well As Media Can Be Guilty Of … Defamation – a communication that holds an individual up to contempt, hatred, ridicule or scorn Defamation – a communication that holds an individual up to contempt, hatred, ridicule or scorn Slander—oral defamation Slander—oral defamation Libel—published defamation Libel—published defamation

27. Introduction to Public RelationsLaw and Ethics Slide 26 of 63 Defamation Defamation is the expression of opinion, information or fact which damages another person’s reputation. Defamation is the expression of opinion, information or fact which damages another person’s reputation. Claims of truth are the best defense against defamation although two others—fair comment and privilege—may also be defenses in defamation cases. Claims of truth are the best defense against defamation although two others—fair comment and privilege—may also be defenses in defamation cases.

28. Introduction to Public RelationsLaw and Ethics Slide 27 of 63 Successful Defenses Against Libel May Be … Truth: statements involved are truthful [and can be proven to be truthful] Truth: statements involved are truthful [and can be proven to be truthful] Privilege: qualified privilege is based on a fair and accurate representation of a governmental document or meeting even if the document or meeting has false information. Privilege: qualified privilege is based on a fair and accurate representation of a governmental document or meeting even if the document or meeting has false information. Fair Comment: statements constitute ‘fair comment’ on a public issue when they are presented as “commentary” or opinion. It must not intrude into the private life of the person if it is to be considered, “fair comment.” Fair Comment: statements constitute ‘fair comment’ on a public issue when they are presented as “commentary” or opinion. It must not intrude into the private life of the person if it is to be considered, “fair comment.” Other legal pitfalls for practitioners:

29. Introduction to Public RelationsLaw and Ethics Slide 28 of 63 Invasion of Privacy….occurs when one of the following happens: Appropriation or the unauthorized commercial use of an entity’s picture, likeness, or name. Appropriation or the unauthorized commercial use of an entity’s picture, likeness, or name. Publication of private information—publishing true information not known by a great number of people. Publication of private information—publishing true information not known by a great number of people. Requires prior consent. Requires prior consent. Intrusion or the surreptitious observation of an entity’s activities. Intrusion or the surreptitious observation of an entity’s activities. False light—when true facts are embellished with falsehoods, or exaggerated or used out of context. False light—when true facts are embellished with falsehoods, or exaggerated or used out of context.

30. Introduction to Public RelationsLaw and Ethics Slide 29 of 63 What Are Examples of How PR Professionals Might Invade Privacy?

31. Introduction to Public RelationsLaw and Ethics Slide 30 of 63 Defenses of Invasion of Privacy Charges Obtain written consent from potential sources of legal suit. Obtain written consent from potential sources of legal suit. Especially helpful in defense are signed release forms of legal responsibility. Especially helpful in defense are signed release forms of legal responsibility. Use release forms for photos, videos, podcasts – especially when used for promotional purposes. Use release forms for photos, videos, podcasts – especially when used for promotional purposes.

32. Introduction to Public RelationsLaw and Ethics Slide 31 of 63 Practitioners need to know the legal limits Protected Intellectual Property Intellectual creations [original writings and works of creative art] generally are owned by their creators – individuals or organizations. They are subject to protection under copyright and trademark law. Copyright refers to the legal protection afforded to the author or of a formalized method of communication or artistic expression such as… Copyright refers to the legal protection afforded to the author or of a formalized method of communication or artistic expression such as… books, movies, plays, music, dances, songs, sculptures, pictures and other tangible fixed formats

33. Introduction to Public RelationsLaw and Ethics Slide 32 of 63 What Might Be Common Examples of Concern in PR Regarding Potential Copyright Violations?

34. Introduction to Public RelationsLaw and Ethics Slide 33 of 63 You Can Use Copyrighted Material Under The Act’s Four ‘Fair Use’ Provisions If … Use is for non-commercial purposes Use is for non-commercial purposes Content is not taken out of context Content is not taken out of context Credit is given to the source Credit is given to the source The commercial value of the work is not materially reduced The commercial value of the work is not materially reduced You can use material if the percentage of the work used falls within specific limits [100-200 words from a major book or article] Trademarks are another matter

35. Introduction to Public RelationsLaw and Ethics Slide 34 of 63 Trademarks

36. Introduction to Public RelationsLaw and Ethics Slide 35 of 63 What Are Trademarks? Refers to the names and logos of products or product brands which are legally protected for exclusive or licensed commercial use. Refers to the names and logos of products or product brands which are legally protected for exclusive or licensed commercial use. Corporations often seek to protect their trademarks from others who could profit from them. Corporations often seek to protect their trademarks from others who could profit from them. Trademark Examples: Trademark Examples: Product names such as Kleenex Product names such as Kleenex Brand names like Chevrolet Brand names like Chevrolet Graphic renderings of those names in specific type faces and/or with accompanying artwork Graphic renderings of those names in specific type faces and/or with accompanying artwork

37. Introduction to Public RelationsLaw and Ethics Slide 36 of 63 Contracts Legal documents that specify the actions and expectations of two or more parties for the protection of each. Legal documents that specify the actions and expectations of two or more parties for the protection of each. Contracts stipulate… Contracts stipulate… what each can do in the relationship what each can do in the relationship under what circumstances they can act under what circumstances they can act what monetary and/or productive compensation will be received what monetary and/or productive compensation will be received Regulatory agencies’ rules also apply

38. Introduction to Public RelationsLaw and Ethics Slide 37 of 63 When Would PR Pros Use Contracts?

39. Introduction to Public RelationsLaw and Ethics Slide 38 of 63 Government Regulatory Agencies Four of the government regulatory agencies that can limit how public relations practitioners create and disseminate information are the… Four of the government regulatory agencies that can limit how public relations practitioners create and disseminate information are the… FTC FTC FDA FDA FCC FCC SEC SEC Such agencies are concerned with the legal dimensions of public relations messages and/or advertising claims. Such agencies are concerned with the legal dimensions of public relations messages and/or advertising claims.

40. Introduction to Public RelationsLaw and Ethics Slide 39 of 63 Federal Trade Commission (FTC) Communication directly affecting economic exchanges or trade must be true. Communication directly affecting economic exchanges or trade must be true. Claims in ads or press releases must be verifiable. Claims in ads or press releases must be verifiable.

41. Introduction to Public RelationsLaw and Ethics Slide 40 of 63 Food and Drug Administration (FDA) Information about food, drugs and cosmetics must conform to federal standards for health and safety. Information about food, drugs and cosmetics must conform to federal standards for health and safety. Click on the image to read an overview of the FDA’s massive operation. Click on the image to read an overview of the FDA’s massive operation.

42. Introduction to Public RelationsLaw and Ethics Slide 41 of 63 Federal Communications Commission (FCC) Regulates broadcasting including Public Service Announcements (PSAs) and required opportunities to respond to public issues. Regulates broadcasting including Public Service Announcements (PSAs) and required opportunities to respond to public issues.

43. Introduction to Public RelationsLaw and Ethics Slide 42 of 63 Securities and Exchange Commission (SEC) Public disclosure rules for publicly traded companies Public disclosure rules for publicly traded companies Insider trading Insider trading

44. Introduction to Public RelationsLaw and Ethics Slide 43 of 63 Laws and regulations also apply to the Internet…Laws and regulations also apply to the Internet… Libel and slander Libel and slander Copyright and trademark Copyright and trademark And the provisions of most of the statutes and regulations mentioned earlier And the provisions of most of the statutes and regulations mentioned earlier From practical and legal standpoints, the Internet is a medium like any other.From practical and legal standpoints, the Internet is a medium like any other. Internet Communication

45. Introduction to Public RelationsLaw and Ethics Slide 44 of 63 Slides not used in class

46. Introduction to Public RelationsLaw and Ethics Slide 45 of 63 Are We Committed to Upholding Professional Standards in Public Relations? Unless you are willing to resign an account or a job over a matter of principle, it is useless to call yourself a member of the world’s newest profession—for you are already a member of the world’s oldest. --Tommy Ross PR Practitioner