The public does not look at Public Relations as an honest business. This is mainly due to the fact that public relations personnel are hired to deal with crisis communications, if the organisation has done something wrong that harms the public. However, a good public relations company can increase a company’s profits, build trust with the organisation’s publics and publicise the services or products that the business is selling.
Many people view public relations as an arm of advertising. But whereas advertisers pay for publicity in the media, public relations does not pay for media coverage. Third party endorsements is how public relations gains credibility. Press releases, appearances on television shows, and speaking at conferences are some of the ways in which public relations gets their organisation exposure. There are several sectors besides media relations where public relations is used.
Investor relations is one of the most important aspects of public relations. Managing relations between the company and the people that have a financial involvement with it is vital for the company’s image and future investment. Handling queries from shareholders and investors, creating a financial image for the company and staying in line with legal and regulatory matters concerning shareholders are all functions which an investor relations team can carry out.
Labour relations are also important especially in manufacture and heavy industry, to maintain a good working relationship between a company’s directors and its staff. Labour relations is all about managing the relationship between trade unions and worker representatives so that industrial disputes are avoided.
Acts of goodwill and charitable endeavours help to build trust with the company’s publics. Investor and labour relations can be manipulated with events and bonuses whilst sponsoring development or activities in the surrounding community works well for local public relations.