PR and Public Policy: The Potential of "Public Affairs" and "Brand Activism"

Society has various rules: laws, systems, regulations, and more.

However, over time, situations may arise where these rules no longer fit the social context or lead to unfairness for stakeholders. Conversely, the absence of rules can allow established practices to take precedence, necessitating the creation of new rules.

The term "rules" here encompasses not only hard law, such as national and local ordinances, but also soft law, including interpretations of laws and voluntary guidelines established by private industry associations.

This paper defines the decision-making process involved in establishing, revising, or abolishing rules—such as laws, regulations, and standards—as "politics," and discusses how PR can contribute to consensus building.

While administration and government govern national and local politics, the actors in rule-making extend beyond governments and municipalities to include companies, brands, industry associations, and NPOs. We will examine these rule-making processes from the perspectives of "public affairs" and "brand activism."

●Public Policy
Public policy. This refers to the measures and policies led by policy departments of international organizations, governments, and local authorities to address structural social issues that cannot be solved by private companies or industries alone.
 

●Public Affairs
This refers to activities undertaken by organizations such as corporations, or the industries they belong to, aiming to establish, revise, or abolish rules to improve the business environment to suit the times. While governments and local authorities also have public affairs functions, this article primarily discusses public affairs within the context of companies and brands.

●Brand Activism
This refers to activities where companies or brands articulate their political stance or advocate for rule changes to address social issues.

<Table of Contents>
▼What is Public Affairs through "Advocacy Activities"?

▼Companies Can No Longer Avoid "Brand Activism"

▼Companies and Brands Are Expected to Take on the Responsibility of "Solving Social Issues"

What is Public Affairs through Advocacy Activities?

2023 was a year marked by high-profile legal revisions and rule changes.

For example, rules are being established to keep pace with technological advancements, such as lifting the ban on paying wages with digital money and revising the Road Traffic Act to accommodate autonomous driving.

Furthermore, the "flying car" – a long-standing vision of the future – is finally becoming realistic through multicopter technology developed for drones (unmanned aerial vehicles). However, reaching a society where individuals can use drones like personal vehicles still requires numerous rules and regulations.

Furthermore, generative AI like ChatGPT, whose use has rapidly expanded since late 2022, also hints at the realization of the "human-like talking android" depicted in retro-futuristic visions. However, it has sparked discussions on legal risks across a wide range of fields, including the Personal Information Protection Act, GDPR, intellectual property rights, and the potential for human rights violations.

When commercializing such new technologies, it is difficult for development companies to pursue legal frameworks alone. They must engage in "advocacy activities" involving numerous stakeholders.

Advocacy (advocacy) means "support" or "promotion," but in the PR industry, it's used as a katakana term to describe "activities aimed at influencing decision-makers to achieve specific policy goals."

For example, "patient advocacy" refers to activities where pharmaceutical companies, among others, consider the benefits and harms patients experience under current conditions and lobby for policy changes to improve the environment. This can significantly influence healthcare policies, such as the approval of new drugs or public subsidies for vaccines.

Public Affairs encompasses the activities through which companies and organizations engage in dialogue with the public, including stakeholders and policymakers, to shape a business environment suited to the times. This involves participating in the formulation of new rules, creating new regulations, and abolishing or revising existing ones.

Public Affairs is a key area within PR (Public Relations), encompassing various PR activities such as Media Relations and Government Relations.

Public affairs employs various approaches. It involves disseminating information to the public, often through media, to foster awareness and understanding of the benefits brought by regulatory changes. It also includes advocacy activities such as lobbying policy makers and regulatory authorities for regulatory changes and making policy proposals.

According to the Ministry of Economy, Trade and Industry's "Survey on Corporate Activities Addressing Social Issues," the top 37 companies actively engaged in "Rule-Forming Market Creation" achieved a compound annual growth rate (CAGR) of approximately 4%. This represents a gap of about five times compared to the average 0.8% growth rate of Japanese companies.

When companies and organizations proactively engage with the public, explaining the need for new rules and highlighting current challenges, such advocacy activities often lead to the creation of a business environment suited to the times and the promotion of better living conditions that consumers should enjoy. This, in turn, frequently results in business expansion.

In summary, the key point of public affairs in Japan is to create a social movement by engaging "companies, organizations, and their surrounding stakeholders affected by legislation" through advocacy activities and similar efforts.

While individual companies may undertake such public affairs initiatives, it is equally common for multiple organizations—such as economic associations and industry groups—to unite and lobby for the enactment, revision, or repeal of legislation.

Companies Can No Longer Avoid "Brand Activism"

Japanese companies have traditionally avoided risk by maintaining a neutral stance on specific political issues, often stating, "We refrain from commenting."

However, for companies operating globally, even within Japan, the era of "no comment" no longer holds sway.

When social phenomena, societal challenges, or high-profile incidents threaten brand loyalty or conflict with a company's stated purpose, proactive engagement is now required. This includes issuing messages of dissent or launching campaigns. This is called brand activism.

Dr. Philip Kotler, a leading authority on modern marketing and management scholar, stated the following in an interview with The Marketing Journal (December 2019):

"Brand activism is when a company declares its desire to take on some form of social responsibility to promote the Common Good."

"The risk of doing nothing outweighs the risk of taking action."

It is anticipated that cases where brand activism creates movements that influence politics will increase in the future.

The following Nike example is a case where the brand actively moved to change existing rules.

The "Swoosh Vote" campaign supporting same-sex marriage legalization

In Australia, same-sex marriage had been prohibited since 2004, when the Howard government enacted the Marriage Act defining marriage as "between a man and a woman." Consequently, by 2017, Australia was the only English-speaking country where same-sex marriage was not legal.

In 2017, Australia held a postal vote asking its citizens whether to legalize same-sex marriage. Nike, driven by its belief that "people should be equal, whether on the field or off," launched a campaign supporting same-sex marriage at this time. They created visuals where their iconic "Swoosh" logo was stylized to resemble a checkmark for the vote.

The "Swoosh" mark, printed everywhere from the walls at the entrances of large stores to receipts and paper shopping bags, transformed into a symbol for the "Yes" vote. Influencers were sent specially designed shoes, limited edition items for this campaign (photo left).

It was a simple idea, but the powerful message conveyed by the brand logo instantly resonated with viewers.

Campaigns by other brands also coincided, amplifying the wave of public opinion. In the two-month national referendum held from September 2017, 12.7 million people—79.5% of the total population—participated. The result was 62% in favor and 38% against, leading to a "majority in favor." Finally, same-sex marriage was officially legalized in December of that same year.

Nike "Nike Australian Marriage Equality Swoosh Vote" | Cannes Lions 2018
https://www.youtube.com/watch?v=Y2bB-wo7tIY

Companies and brands are expected to take on the responsibility of solving social issues

Thus far, we've discussed how companies and brands, each from their own position, influence rule-making to improve the business environment and solve social issues. Finally, let's consider the future outlook for society.

Public affairs is increasingly recognized as "a critical activity for advancing business," but going forward, brand activism is expected to become a global imperative.

Let's examine the "Global Communication Report" published in March 2022 by the Annenberg Center for Public Relations at the University of Southern California.

This global survey targeted 1,600 PR practitioners, media professionals, educators, and students. While the majority of respondents were American, this multi-country study anticipates that companies and brands will increasingly take on the responsibility of solving societal challenges.

Eighty-five percent of PR practitioners who responded to the survey predicted that "more companies will engage in advocacy activities for specific causes(※1) over the next five years."

※1: Cause Marketing (English: Cause marketing)
/ or Cause-Related Marketing (English: Cause-related marketing)
A promotional campaign linking the purchase of specific products to social contributions. Its defining feature is its integration with corporate marketing, distinct from simple CSR. In Japan, the Bellmark Movement, launched in 1960, is considered the pioneer of cause marketing.

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Furthermore, 83% of PR practitioners responded that "companies possess a powerful platform to address important issues." Similarly, 75% answered that "companies have the resources to solve those issues."

Furthermore, 82% responded that "companies have a responsibility for the well-being of their employees and customers and have a fundamental interest in maintaining a cohesive, harmonious society."

Moreover, regarding the present as well as the future, 47% responded that "actively addressing social issues contributed to improving brand reputation," while 43% said it "boosted employee morale."

Furthermore, 32% said it "helped attract job applicants," and 31% said it "helped acquire new customers."

Historically, social contribution activities were often treated as an "add-on" to a company's core business. However, as the survey results clearly show, improving reputation now also contributes to increasing customers. For companies, recognizing social contribution activities as "part of their management strategy" and engaging more proactively will become increasingly meaningful.

Furthermore, from a corporate communications perspective, there is no doubt that such activities effectively strengthen engagement with customers and employees, as well as aid in recruitment.

Society has high expectations for companies to act as responsible members of the community, helping to establish rules that improve people's living environments. It can be said that going forward, a stance of actively voicing opinions on social issues and politics will be required.

We are entering an era where companies and brands will gain societal empathy by clearly stating their political stance on issues like human rights, proactively engaging without hesitation to address challenges, and committing to solutions.