On the Pulse: Counselors Academy Shows PR Execs Cowed by C-Suite

Are senior PR executives their own worst enemy?

That's the inescapable conclusion of a recent Counselors Academy/PR NEWS-sponsored study that looked into the many challenges communications execs are grappling with as they
head into 2004. Among the paramount issues now facing the PR industry -- how to convince the C-suite of PR's inherent value, PR execs' relationship to the company's inner sanctum
vis-a-vis legal counsel and the ability to speak freely to the CEO when a crisis strikes -- communications execs are coming up short. (See tables on page 6). There's a lot of
pressure on PR execs when you consider that just slightly more than half of the study's respondents have a seat at the CEO's table in client relationships and that nearly a third
of PR execs have failed to make themselves relevant to solving business problems.

PR execs won't be able to address any of these problems, however, until they learn that they first need to speak up. Asked what the most common reason is for holding back hard
truths to CEOs, more than 70% of the respondents said because "it is easier to keep quiet." If PR execs continue to be cowed by the C-suite, it will be difficult if not impossible
to prove to the boss - and to a company's various stakeholders, for that matter - that PR execs are anything more than glorified publicists.

The chatter in the PR field to create a "Chief Communications Officer" at the corporate level, what's needed to improve the lot of PR execs and the repercussions of the ongoing
corporate scandals are also addressed in the study. One of the more salient parts of the study show that nearly two-thirds of respondents say more enlightened and committed CEOs
are needed to recognize that PR is strategic rather than tactical. Don't hold your breath. The corporate scandals of the late-1990s have a "Groundhog Day" quality when you think
about the insider trading scandals of the 1980s. Lots of smoke, but, ultimately, little fire. So with CEOs as a group reluctant to change their stripes, the onus is on PR execs to
make their case - and to do so forcefully.

With the credibility of corporate America at an all time low, one might have expected companies to turn to public relations firms for
assistance. Most did not. Why do you think that is the case?
PR people have failed to make themselves relevant to the solution of serious business problems
32.7%
Most CEOs do not view PR people as trusted advisors
28.6%
PR people have not asserted themselves in this role
24.5%
PR is doing just fine in being perceived as skilled at creating, managing and leveraging credibility
14.3%

In your client relationships, do you have an official seat at the CEO's table?
Yes
34.7%
No
10.2%
Sometimes
55.1%

Who has the greatest chance of being considered credible counsel to the C -Suite? (pick top 2)
Legal counsel
88%
In-house communications advisors
20%
Outside public relations counsel
14%
In-house investor relations officers
20%
Outside investor relations counsel
2%
Management consultants
36%

In a crisis or difficult decision-making situation, what is your relationship to the C-Suite compared with Legal/General
Counsel?
Equal to
34.7%
Less than
59.2%
More than
6.1%

When push comes to shove, who does the C-Suite rely on when a crisis hits?
Legal counsel
34%
Public relations counsel
2%
Both
64%

Do you have the freedom to candidly advise senior management about potential public impact of business decisions and actions
taken?
Yes
56%
No
0%
Sometimes
44%

What do you think the most common reason is for holding back hard truths to CEOs?
I'll lose my job
7.3%
My budget will be cut
7.3%
It is easier to keep quiet
70.7%
It's not my job
14.6%

Do you envision that a Chief Communications Officer within a corporation can have an empowered corporate voice, without fear of
reprisal?
Yes
84%
No
16%

What needs to change in order for corporate communicators (or public relations counsel) to be recognized as strategic rather than
tactical? (pick 2)
More corporate scandals
2%
Enlightened and committed CEOs
64%
Better training for CEOs
24%
Better training for communicators
42%
Stronger industry advocacy
28%
Iron-clad ROI metrics
28%

Do you think that "voices of reason" from communications professionals were ignored in the recent corporate scandals of the past 24
months?
Yes
42.6%
No
8.5%
Communicators didn't try
8.5%
Groupthink took precedent
40.4%

What do you think the repercussions of the string of corporate scandals is going to be?
More regulation
18%
Self regulation
2%
Both
26%
Further erosion of trust
54%

In order to regain corporate trusts, ensure accountability and transparency what is the best balance formula for the C-Suite to
confer on Legal and Public Relations?
PR should lead
18%
50/50
74%
Legal should lead
8%

Methodology: Leadership Pulse is conducted for the Counselors Academy of PRSA and PR NEWS by SurveyMonkey, an online survey methodology research organization. Surveys are
conducted periodically via push e-mail and Web site questionnaire among a sample size of 600 owners, partners, and senior executives of major PR firms nationwide.