Corporate public affairs officers have heftier budgets and are more closely tied to the upper echelons where corporate decisions are made, according to the results of a study just released by the Public Affairs Council, Washington, D.C.
The survey was conducted for PAC by the Foundation for Public Affairs and the Boston University School of Management. The probe, "The State of Corporate Public Affairs," was based on responses from PR execs at more than 260 large and medium-sized businesses in the U.S. polled during the course of last year.
The findings provide a window into how public affairs will continue to be a focus for corporations, with nearly 75 percent of companies continuing to outsource public affairs services to gain lobbying, advertising and communication benefits.
"This points to how the public affairs practices of companies are being linked more closely to the business (operational) units," said Leslie Swift-Rosenzweig, executive director of the foundation. "This survey brings full force the notion that this field is undergoing tremendous change."
Among the highlights of the findings of the survey, which is the second since the study was first conducted in 1992, are:
- Nearly 40 percent of public affairs offices have been reorganized in the past 12 months;
- Nearly half of public affairs departments report directly to the CEO, with 11 percent also reporting to the chief legal officer or general counsel;
- Public affairs officers sit on the mnagement committee (or other top policy making group) in more than half of the companies surveyed;
- Two-thirds of PA offices have a formal mission statement;
- Nearly three-fourths of PA offices develop an annual plan;
- Two-thirds of companies surveyed have a centralized public affairs structure; and
- More than one-third of companies report a "solid line" reporting relationship between state government relations staff and operating unit managers.
"I am tremendously encouraged but not surprised to find that public affairs professionals are wired to the top since we have had that access for some time," said John Paluszek, president of Ketchum PR's public affairs practice. "If you don't have a seat at the corporate table, then you're missing out."
An example of how public affairs is growing as a PR discipline is reflected in Ketchum's public affairs staff growth - from around 50 a decade ago to about 200 today, according to Paluszek.
Ketchum, whose core public affairs practitioners work out of Washington, D.C., serves about 50 clients immersed in public-policy issues, in areas such as healthcare and the environment.
Paluszek points to three driving issues contributing to the burgeoning public affairs field:
- The recognition of public-policy issues as "vital" to a company's success or failure;
- "The enpowerment that's been earned" by activist groups in the past 20 years; and
- The ongoing power of the media to sway public perception.
Ironically, the 1996 study shows a dip in several categories. Based on the survey question - "Check those activities/functions currently under the stewardship of your company's senior public affairs executive" - here's a look at how the 1997 results compare with those in 1992:
- Federal/Govt. Relations received a 75 percent ranking in 1996 and an 86.8 percent ranking in 1992;
- State Govt. Relations received a 75 percent ranking in 1996 and an 84.9 percent ranking in 1992; and
- Community Relations received a 71 percent ranking in 1996 and a 79.2 percent ranking in 1992.
(Foundation for Public Affairs, Leslie Swift-Rosenzweig, 202/872-1790; Ketchum, John Paluszek, 212/448-4200)