Spending = Good Reputation
Get out your scissors, cut out this page and take it directly to the people in your company who make decisions about corporate PR spending.
There is a very strong direct correlation between PR spending and corporate reputation, according to a study by Thomas L. Harris/Impulse Research for the Council of Public Relations Firms.
Among the firms that responded, those ranked by Fortune in the top 100 Most Admired Companies averaged $32,515,000 in total corporate communication spending. The second 100 averaged $23,144,000; the third 100 firms averaged $13,405,000; the fourth 100 firms averaged $5,392,000. The bottom 76 firms spent an average of $3,955,000.
"Going in, we thought there would be some correlation," says Jack Bergen, council president. "I don't think anyone envisioned it being this clear cut a case. We wanted to provide some answers about [return on investment], and I think the numbers made a pretty strong statement."
(Jack Bergen, Council of Public Relations Firms, 877/PRFIRMS; Impulse Research, 310/559-6892.)
Edelman Launches Practice
To help meet companies' needs in the area of employee communication, Edelman Public Relations Worldwide has formed the Employee Engagement practice.
"If your employees do not fully understand and support your business goals, your business may not be performing as well as it could be," says Nicholas Kalm, deputy general manger of the firm's reputation management practice and head of Employee Engagement.
The programs use strategic communications and tactics designed to align employee behavior with organizational goals and objectives. The firm is one of several that has placed a greater focus on employee communications recently, along with Hill and Knowlton, GCI Group and Ketchum. (Bob Reincke, Edelman, 312/240-2638)
New Ventures & Awards
Yesawich, Pepperdine & Brown has new ventures on both coasts. The firm, which specializes in the travel and leisure industry, developed joint-marketing ventures YP&B/Novom, based in Los Angeles, and YP&B/Christian, which will operate from the firm's Orlando, Fla., headquarters. YP&B/Novom, under the direction of Charlotte Novom, will provide YP&B's marketing services to clients in the western United States. YP&B/Christian will specialize in diversity marketing and provide services to clients targeting African American and Hispanic consumers. Ty Christian will manage the unit's marketing services. (YP&B, 407/875-1111, http://www.ypb.com)
Leslie Grossman, founder and president of New York-based Communications/Marketing Action Inc. is The Fashion Group International's Entrepreneur of the Year. The recipients of the annual award are recognized as successful business entrepreneurs and active community leaders. Grossman has spent more than 20 years in PR and marketing, founding CMA in 1988 to develop programs for consumer lifestyle and business products and services. (CMA, 212/730-9400)
Hill and Knowlton picks up seven awards for its work in developing PR initiatives in healthcare for California. H&K most recently grabs three 1999 Pro Awards, given by the Public Communicators of Los Angeles - a first place for printed material/corporate identity; first place for continuing program/not-for-profit organization; and third place for communications plan. All awards went for the firm's work on behalf of the State of California's Health Families/Medi-Cal for Children public awareness campaign.