QUESTION: Are senior PR managers still struggling to get a seat at the table with their C-suite peers, or is the profession's struggle to grow in relevancy finally seeing
the light of day?
ANSWER: Based on survey results from the Council of PR Firms, industry growth was up in 2005 and shows promise for 2006. The results,
based on responses from the council's 100 members representing global, mid-sized and specialty agencies, show that 83% of participating firms project revenue growth of
approximately 12% for the year ending 2005; 95% of those surveyed said they expect continued growth for 2006.
The Economist caught wind of the overall positive state of the PR industry last month, dubbing it a "vital marketing tool" in its January 19 article, "Do We Have a Story
for You! As advertising struggles, PR steps into the breach." The piece cited Proctor & Gamble's recent internal study that concluded the unthinkable: The ROI was often
better from PR campaigns than from traditional forms of advertising, according to Hans Bender, P&G's manager of external relations.
This, of course, is very good news for PR managers, especially considering the size and scope of P&G's empire. What's more, New York investment bank Veronis Suhler
Stevenson forecasts PR spending will grow by almost 9% a year; that's no small number considering that last year, some $3.7 billion was spent on public relations.
QUESTION: We talk a lot about ways to promote corporate responsibility efforts, but what is going on in the way calling companies out on bad CSR?
ANSWER: As the old
adage goes, there's more than one way to skin a cat, and the same holds true for skinning a corporation for being socially irresponsible. The World Economic Forum (WEF)
offers one approach with its seventh annual "Public Eye Awards," in which companies are selected and "honored" (read: chastised) for their past year's indiscretions.
Last week, the Berne Declaration and Pro Natura announced the results. The 2006 "winners" include the Walt Disney Company in the social-rights category for
labor and human rights violations committed by its southern Chinese suppliers; Chevron Corp. in the environment category for its contamination of areas of an Ecuadorian
rain forest; and Citigroup Inc. in the taxes category for allegedly assisting corporations and millionaires with tax evasion.
While the "Public Eye" program is a relatively benign way of questioning companies' CSR initiatives - or lack thereof - there is something to be said for generating action with
negative-themed awards ceremonies. The Razzies do it for the worst movies of the year (in conjunction with its red-carpet counterpart, the Oscars), and now CSR aficionados are
jumping on board. Whether practitioners see it as guerrilla-style PR or a dimwitted excuse to point fingers, it does raise a point. Be proactive in the face of negativity because
reputation is a tenuous thing; no matter which way the cookie crumbles, you end up with a mess in the end.
(To ask a question of the PR Sherpa, pass your inquiry to associate editor Courtney Barnes at [email protected].)