Global trends and the public affairs function

Global trends and the public affairs function

External forces shaping public affairs.

• Advancements in information technology.
• Localization.
• Globalization.
• Changes in the news media.
• Attitudes about government and business.
• Corporate management challenges.

Advancements in information technology.

• Birth of the digital citizen.

» America Online reaches more households than circulation of New York Times, Washington Post, Los Angeles Times, Wall Street Journal, USA Today, Time and Newsweek combined.

» In US, heavy net users of the Internet tend to be liberal on social issues and conservative-to-libertarian on economic issues and role of government.

• "idea commerce" on the net.

» Empowers the weak, the afflicted and the under-capitalized.

» Consumer, labor and shareholder activism.

» Misinformation campaigns.

• Expectations of transparency.

» Encouraged by media and activist groups.

» Enabled by technology.

• Impact on campaigns and elections.

» Mobilizing and fundraising.

» Petitioning and voting.

• Public affairs strategies.

» Ally development.

» Grassroots networks.

» Issues management via intranets.

» Media, web and newsgroup monitoring.

Localization.

• Growing confidence in u.s. Regional, state and local government.

» Confidence in federal government has dropped from 70% to 60% since 1972.

» Confidence in state government has risen from 63% to 81%.

• Legislative and legal activism at state level.
• More difficult to monitor issues and affect public policy.
• Public affairs strategies.

» Expansion of state and local government relations activities.

»  "grass tops" communication.

» Issue communication.

Globalization.

• More issues are becoming international.

» Trading practices.

» Human rights issues.

» Environmental concerns.

» Involvement of WTO, OECD and World Bank.

• Public policy process varies widely on the world stage.
• Few companies have well-developed international public affairs functions.
• Public affairs strategies.

» Global issues management.

» Centralized global authority with regional staff.

Changes in the news media.

• Elimination of the news cycle.

» Need to react quickly and decisively.

» Public hears first statement and often ignores response.

• Elimination of the "shared experience".
• Growth of media outlets.
• Public affairs strategies.

» Centralized reputation management.

» Integrated public affairs planning.

» Targeting of media and messages.

Attitudes about government and business.

• Distrust of government.

» Trust in us government has declined from 76% in 1964 to 39% in 1997.

• Distrust of business.

» Accountability, globalization and science/technology issues.

» 66% have reasonable favourable opinion of corporations.

» 66% also believe companies only care about profits and just.

» 32% agree that corporations treat workers with respect.

• Public affairs strategies.

» Ethics training.

» Willingness to be open.

» Risk communication.

Corporate management challenges.

• Faster pace, bigger problems, higher expectations.
• Mergers and acquisitions.
• Corporate restructurings.
• Changes in company leadership.
• Lack of understanding of public affairs function.

Public affairs management trends.

• Alignment with business objectives.

» Two-thirds provide forecasts on political and social trends to senior management.

» 60% report close linkage of their activities to strategic plan.

» More than 50% are members of their companies' senior management committees.

• Improved coordination of external activities.

» While most American companies have not consolidated public relations and government affairs, two-thirds say they co-ordinate these two functions well.

» New areas of responsibility include Internet, contributions, grassroots, association.

Memberships and international.

• Outsourcing.

» Over two-thirds now outsource some of their activities.

» By 4:1 ratio, companies are increasing use of outsourcing.

» In 55% of companies, internal "customers" are permitted to go outside the Corporation for public affairs assistance.

• Performance measurement.

» Most commonly-used methods.

What to expect in the future.

• Public affairs environment.

» Less predictability in public policy issues.

» Increased fragility of corporate reputations.

» Rapid decline of old institutions.

» Increased "efficiency" in marketplace of ideas.

• Public affairs function.

» Increased emphasis on building community of allies.

» Greater accountability for performance.

» Greater value placed on strategic role of public affairs.