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Public Affairs

The management process that focuses on the formalization and institutionalization of corporate public policy. Public Affairs. Public Affairs. Embraces … Corporate public policy Issue management Crisis management Governmental relations Corporate communications.

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Public Affairs

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  1. The management process that focuses on the formalization and institutionalization of corporate public policy. Public Affairs Public Affairs Embraces… • Corporate public policy • Issue management • Crisis management • Governmental relations • Corporate communications

  2. Strategic Management Process Part of which is Public Affairs Management Enterprise-Level Management Environmental Analysis Corporate Public Policy Issues Management Crisis Management Public Affairs Management: Relationships

  3. http://www.pac.org @ Evolution of the Corporate Public Affairs Function • The growing magnitude and impact of government • The changing nature of the political system • A recognition by business that it was being outflanked by counter-interests • An expanding recognition that business should be more politically active

  4. Public Affairs Activities

  5. Buffering Bridging Activities that ‘bridge” the organization with the social and political environment Public Affairs Activities Activities that “buffer” the organization from the social and political environment

  6. Development of intercultural competence Knowing the impact of societal factors on public affairs Understanding local public policy institutions and processes Nation state-specific applications of PA functions Language skills Understanding global business ethics Managing international consultants, alliances, and issue partners Competencies for International Public Affairs

  7. New Public Affairs Organization • Manages public affairs as an ongoing process, both internally and externally • Cultivates and harvests the capability to build, develop, and maintain stakeholder relationships • Recognizes the importance of managing the grassroots • Communicates in an integrated manner • Aligns the organization’s values and strategies with the public’s interests on a continuous basis • Focuses both systematically and proactively on helping the organization to compete

  8. Qualities for Successful PA Management • Established communication expertise • Global perspective • Integrity, credibility, and trust • Management skills and experience • Political and public policy insights • Strategic thinking

  9. Consumer Products Company Social Environment Industrial Products Company External Affairs Design: Breadth, Depth, Influence and Integration Business Exposure and External Affairs Design

  10. Conventional Approach • Issues fall within the domain of public policy or public affairs management. • Issues typically have a public policy/public affairs orientation or flavor. • An issue is any trend, event, controversy, or public development that might affect the corporation. • Issues originate in social/political/ regulatory/judicial environments. Issues Management

  11. Strategic Management Approach • Issues management is typically the responsibility of senior line management or strategic management staff. • Issues identification is more important than it is in the conventional approach. • Issues management is seen as an approach to the management of external/internal challenges to company strategies, plans, and assumptions. Issues Management

  12. Strategic Issue Management Chapter 5- 12

  13. A matter that is in dispute between parties. The dispute evokes debate, controversy, or differences of opinion. Issue Issues Definition

  14. Characteristics of an Emerging Issue • Terms of the debate are not clearly defined • Issue deals with matters of conflicting values and interest • Automatic resolution is not available • Issue is often stated in value-laden terms • Trade-offs are inherent Issues Definition

  15. Basic Assumptions Issues Management Process • Issues can be identified earlier, more completely, and more reliably • Early anticipation widens the range of options • Early anticipation permits study and understanding of the issues • Early anticipation permits a positive orientation towards the issues • Early anticipation allows for better identification of the stakeholders • Early identification provides the opportunity for the organization to supply information about the issue earlier

  16. Identification of Issues Analysis of Issues Prioritization of Issues Formulation of Issue Responses Implementation of Issue Responses Evaluation, Monitoring, and Control of Results Model of Issues Management Process

  17. Scan the environment Identify emerging issuesand trends Identification of Issues

  18. Identification of Issues

  19. Analysis of Issues • Which stakeholders are affected by the issue? • Who has an interest in the issue? • Who is in a position to exert influence? • Who has expressed opinions on the issue? • Who ought to care about the issue? • Who started the ball rolling? (Historical view) • Who is now involved? (Present view) • Who will get involved? (Future view)

  20. Xerox Approach PPG Approach Probability-Impact Matrix • High priority • Nice to know • Questionable • Priority A • Priority B • Priority C High Medium Impact on Company Low Low Medium High Probability of Occurrence Ranking of Issues

  21. Formulation Implementation The response design process The action design process • Plan clarity • Resources needed • Top management support • Organizational structure • Technical competence • Timing Formulation and Implementation of Responses

  22. Benefits of Issues Management Processes • Companies … • develop better overall reputations • develop better issue-specific reputations • perform better financially • Provides a bridge to crisis management Issues Management in Practice

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