How Do We Fit Into the World

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How Do We Fit Into the World ?
A Public Relations World View

• John Paluszek,
• Senior Counsel, Ketchum
• Global Alliance for Public Relations
• and Communications Management
• Canadian Public Relations Society
• Quebec
• June 10, 2004

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How Do We Fit Into the World ?

• We as in

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How Do We Fit Into the World ?
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The public relations profession
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Public Relations

• At first, it was Heres the message, go
  deliver it.
• Then it became What should the message be?
• Today, more and more, its What should we
  do? Harold Burson

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Public Relations

• In this discussion, we apply the Grunig Two Way
  Symmetrical model of public relations
• Applying research and dialogue to bring about
  changes in ideas, attitudes and behaviors of both
  the organization and its publics i.e.,
  building/maintaining reciprocal relationships.

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Public Relations The Global Alliance

• 22 public relations-society members
• Member organizations in 60 countries
  Asia/Australia, the Americas, Africa and Europe
• Represent 160,000 professionals worldwide

The Global Alliance for Public Relations and
Communications Management www.globalpr.org
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Public Relations

• The Global Alliance
• Ethics code protocol
• Accreditation
• Government regulation of public relations
• Corporate social responsibility

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Public Relations

• Canadian Public Relations Society
• The Great Bright North (PR Week)
• Plethora of professional development services
• Growing interest in corporate social
  responsibility

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Public Relations

• The International Section,
• The Public Relations Society of America
• International Programs
• 2002 Washington D.C.
• 2003 United Nations
• 2004 Quebec (CPRS), New York (PRSA)
• 2005 United Nations

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Public Relations

• The Public Relations Coalition
• A partnership of 19 major U.S.-based
  organizations with some 50,000 members
• Restoring Trust in Business
• Models for Action (September, 2003)
• Key elements
• Ethics
• Disclosure and Transparency
• Trust

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How Do We Fit Into the World ?
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The CEO and business in society
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CEO/Business in Society

• How will business overcome the perception of a
  scandals tsunami involving some
• CEOs/CFOs/ corporate boards
• Auditors
• Investment bankers
• Stock traders
• Mutual fund managers
• Currency traders

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CEO/Business in Society

• To overcome the tsunami perception
• Do not say things. What you are stands over you
  the while, and thunders so that I cannot hear
  what you say to the contrary.
• Ralph Waldo Emerson

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CEO/Business in Society

• I believe in shareholder primacy. On the other
  hand, I firmly believe that, unless you are
  honest and take care of the other stakeholders in
  the business your employees, customers,
  suppliers and community Charles
  Elson, DirectorUniversity of Delaware Center for
  Corporate Governance

you will never create the profitability for your
shareholders that you are required to under the
law of fiduciary responsibility.
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The 20th CenturyLinear Business Model

• Social Responsibility
• Costs such as
• New Employee/Workplace Issues
• Environmental Footprint
• Community Relations
• New Age Customers
• Philanthropy
• Government Relations
• Society in General

So You Can, IF YOU CHOOSE, Address
Maximize Profits, Share Price
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CEO/Business in Society

• The 21st Century CSR/Sustainable Business Model

Develop Markets
Prevent Costs
Maximize Profits, Share Price
SRI Investors are in for the long term
Attract, Retain Intellectual Capital
Increase Goodwill on the Balance Sheet
Mine Good Ideas
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CEO/Business in Society

• Stakeholder value and shareholder value are
  converging.
• Lise Kingo,
• Executive Vice President, Novo Nordisk

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CEO/Business in Society

• At the United Nations Global Compact
• Learning Forum, Berlin, 2002
• With the fast-spreading commitment to CSR, a
  case can be made that a fundamental new business
  model one that respects stakeholder and
  shareholder values simultaneously is evolving.

• Effective two-way communications is essential to
  CSR success.

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How Do We Fit Into the World ?
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The economicsystem calledcapitalism
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The economic system called Capitalism

• On private property
• In the history of the world, no one has ever
  washed a rented car.
• Lawrence Summers
• President, Harvard University andformer U.S.
  Secretary of the Treasury

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The U.S. economic system called Capitalism

• Evolution of the Socio-Economic System
• 1800-1870 Laissez Faire
• 1870s-1920 Era of the Progressives, Unions
• 1900-1920 Trustbusters/ Muckrakers

• 1930s The New Deal
• 1960s-70s Nader, Consumerism, Enviros
• 2000 Globalization, Governance

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The economic system called Capitalism

• Evolution of the Socio-Economic System
• Twenty First Century Democratic Capitalism?
  Michael Novak
• More organized public participation in policy
  formation (NGOs, media, etc.)
• A broader base of ownership via stocks, bonds
• Fareed Zakaria
• Capitalisms Economic growth has enriched
  hundreds of millions in the industrial world

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The economic system called Capitalism

• The most frustrating thing about capitalism is
  its ability to adapt to, even co-opt, the most
  daunting challenges of its opponents.
• Michael Harrington
• Life-long Socialist

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The economic system called Capitalism

• The 21st century challenge SRI
• William Greider
• Socially responsible investing, I believe, is
  the bow wave for a deep change in American
  consciousness.
• Investor Network on Climate Risk
• Interfaith Center on Corporate Responsibility

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The economic system called Capitalism

• The 21st century challenge
• Let us choose to unite the power of markets with
  the authority of universal ideals. Let us choose
  to reconcile the creative forces of private
  entrepreneurship with the needs of the
  disadvantaged and the requirements of future
  generations.
• Kofi Annan
• Secretary-General of the United Nations

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The economic system called Capitalism

• The 21st century challenge
• How do we fit into the U.N. Millennium Goals
  (poverty, education,health, resources)
• What is my organizations share?
• What is the nature of its rightful role?
• Equator Principles (banks)
• i-community (Hewlett Packard)
• Medicines for the needy here and abroad
• Extractive industries progress

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The economic system called Capitalism

• The 21st century challenge
• Responsible Globalization
• Trade (national politics vs free markets)
• Global Capital Flows
• Multilateral organizations as enablers
• World Trade Organization
• World Bank
• International Monetary Fund
• World Health Organization

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How Do We Fit Into the World ?
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North America in the global society
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North America in the Global Society

• The Bilateral Interface Canada/U.S.
• Drugs Across the Border
• The Janus face of trade
• The foreignpolicy gap Martin vs. Bush
• Environment Canada California

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North America in the Global Society

• The Bilateral Interface Mexico/U.S.
• Wal-Mart Invades, and Mexico Gladly Surrenders
• Progressa vs. Sweatshops

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North America in the Global Society

• Within the hemisphere
• NAFTA revisited
• Immigration
• The remittances opportunity

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North America in the Global Society

• PR in the Arab World in the Age of
  Globalization
• World Bank Poor World vs. Rich World
• Outsourcing and Globalization

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North America in the Global Society

• Let us work to make the world so
  economically-interdependent that war will go out
  of style.
• General Vernon Walters

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Epilogue

• Let us not be blind to our differences but
  let us help make the world safe for diversity.
• John F. Kennedy

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How Do We Fit Into the World ?
A Public Relations World View

• John Paluszek,
• Senior Counsel, Ketchum
• Global Alliance for Public Relations
• and Communications Management
• Canadian Public Relations Society
• Quebec
• June 10, 2004