Question

Name and explain the scope of Public Relations with reference to any two stakeholders who create an impact on the business organisation.

Answer 1

1. Employee relations: The expansion in the industrial workforce has created serious problems in communication and relations with employees. Poor communication creates misunderstandings. Employees have been given inadequate opportunities to express their views. Management should do a little more listening and a little less talking than it has done in the past. The foundation to good employee relations are sound personnel policies and their impartial implementation. Employees judge a company by its personnel policies and the practices of management in carrying out these policies. Failure to inform employees about corporate policy and developments affecting their interests leads to misunderstanding and criticism. Employees also want to express their opinions about matters affecting their interests. Therefore, two-way channels of communication between management and workers are required.
2. Stockholder relations: Many shareholders suspect corporate management. Management should consider the shareholders as its actual owners. The individual investor is unable to understand complex financial data. Management provides the shareholders current information about the financial position and future prospects of the corporation. Financial institutions and security analysts want detailed information as they have the skill to interpret complex data. Many companies still do not recognise the importance of keeping the shareholders informed. The objective of shareholder relations programme is to arouse their interest in the company and promote holding of stock as a long-term investment. The objective also is to reduce shareholder criticism and organised opposition to management. It is necessary to survey the opinions of shareholders, to understand their characteristics and to communicate with them in simple and easily understandable form. Both written communication and personal contacts are required. Reports, shareholders' meetings, films and lectures can be used.
3. Consumer relations: Consumers determine the success or failure of a business enterprise. Therefore, a sincere concern for consumers is essential, and consumers and consumer groups are increasingly demanding their rights. Developing better relations with consumers is a challenging task. Corporations seek to retain the goodwill of consumers by regularly communicating with- them through sales representatives, meetings, surveys, mailings, magazines, and literature. Good consumer relations depend heavily upon the nature of the products and services provided to consumers.
4. Distributor Relations: Most of the manufacturers market their products through wholesalers and retailers. Distributors and dealers keep the production line moving. A manufacturer must maintain close contacts with his distributors and ensure profitable business to them. Mutual understanding and cooperation between manufacturer and distributors is in the interest of both. Literature, personal visits, meetings, telephone calls, dealer contests, marketing aids are used to communicate with distributors.
5. Supplier relations: Manufacturers depend upon suppliers for raw-materials, components and spares, tools, etc. Supplier relations are becoming important. Suppliers provide materials and services that are worth approximately one-half of the income from sales of manufacturers. Large manufacturers cannot operate without the help of suppliers; competition for the products and services of reliable suppliers is growing keener. Producers realise that their suppliers are a primary source of quality products, sales and profits.
6. Government relations: An important development in public relations has been the closer relationship between corporations and government. The interests of business and government are becoming synthesised to the common advantage of both. There is an increasing recognition on the part of business executives of the importance of developing an effective partnership with government. Business is taking an increasingly active part in government affairs. Government is also increasingly consulting businessmen-in formulating policies and programmes for economic and social development of people.