Proposal for PR that Enhances Corporate Value ~ Strengthening "Corporate PR" and PR Capability Assessment ~

Public relations plays a vital role in enhancing corporate value and achieving greater appeal and differentiation for products and services. However, many PR activities tend to focus excessively on disseminating information to sell products and services, often neglecting the communication of the company's social initiatives and corporate messages. Furthermore, in today's society where companies are evaluated from multiple perspectives, it is also crucial to objectively assess the necessary "PR capabilities."This article proposes strengthening "corporate public relations" to enhance corporate value and conducting a diagnosis of "public relations capabilities."

In an era where product/service PR alone struggles to differentiate, it's time to rethink corporate PR.

When considering the role of public relations, the first image that comes to mind is activities aimed at making customers and the general public aware of the company's products and services and appealing to their appeal. Various methods are employed: clearly presenting "how excellent the company's products and services are" using concrete data; leveraging the appeal of popular celebrities or the outreach power of influencers; or impressing product characteristics through tie-ups with popular content.However, as technology advances, products and services become increasingly homogeneous, making differentiation based on these factors alone increasingly difficult. Many PR professionals are likely grappling with how to develop more effective and cost-efficient PR strategies.

In this context, "corporate communications" deserves attention. Here, "corporate communications" refers to the dissemination of a company's social initiatives and corporate messages. While the content and quality of products and services are crucial, the question "What kind of company provides them?" increasingly becomes a key differentiator and a factor that significantly influences corporate value itself.

However, while product and service PR is often prioritized as part of marketing initiatives, involving cross-departmental collaboration and multifaceted execution, "corporate communications" frequently remains confined to the corporate affairs department. It's common to see it understaffed, handling only press releases, periodic earnings announcements, and crisis response. Moving forward, to enhance corporate value, companies should invest equally in "corporate communications" alongside product and service PR.

Corporate Communications: Growing in Importance Due to Shifts in Consumer Awareness

So, what are the benefits of strengthening corporate communications? One reason its importance has grown in recent years is the shift in consumer attitudes.

Various surveys indicate that consumers from the so-called Millennial generation (those born after 1981) tend to "prefer doing good for society." Furthermore, societal changes brought about by the novel coronavirus have heightened awareness of Social Good—supporting corporate activities and products that positively impact society, including initiatives related to the SDGs.

Given these societal shifts in awareness, companies are increasingly expected not only to enhance the quality of their products and services but also to communicate their stance toward society through public relations. Questions like "How does this company contribute to society?" and "What is the significance of this company's continued existence in society?" are being asked, leading to a renewed emphasis on corporate philosophy, vision, and purpose.

For instance, even when choosing something like bottled water, consumers are increasingly thinking, "If it's just a little more expensive, I'd rather buy water from a company that contributes to society." This shift suggests that corporate communications play a crucial role not only in enhancing a company's image but also in directly impacting sales and performance.

That said, the difficulty with "public relations" lies in the fact that it's hard to see what the right answer is.Particularly with "corporate communications," even when its importance is understood, it differs from product/service communications in that it's inherently difficult to demonstrate short-term, visible results. Consequently, many companies become hesitant about investing personnel or costs. They often find themselves overwhelmed just managing daily tasks like issuing press releases or organizing press conferences, leaving little room to consider and implement strategies for "how to enhance corporate value."Furthermore, even when companies want to strengthen their PR, they may be unsure where to start or how to develop a strategy. Therefore, as a first step toward improvement, we introduce the "PR Octopus Model" as an indicator for reassessing your company's "PR capabilities."

Comprehensively and objectively diagnose and strengthen a company's PR capabilities

The 'PR Octopus Model' is a method for analyzing a company's PR capabilities developed by the Corporate PR Strategy Research Institute, a research organization of PR Consulting Dentsu Inc. It evaluates PR capabilities using the following eight indicators.

The 8 Public Relations Capabilities of the "Public Relations Octopus Model"

1. Information Gathering Capability

The ability to gather and understand media sentiment regarding the company, its industry, and competitors, as well as stakeholder movements

2. Information Analysis Capability

The ability to gain insights into the company's management and PR challenges based on collected information, and to share these insights systematically throughout the organization

3. Strategy Development Capability

The ability to develop PR strategies addressing management issues and systematically execute goal management and reviews tailored to each stakeholder group

4. Information Creation Skills

The ability to develop messages and visuals tailored to media characteristics to gain stakeholder recognition, understanding, and empathy

5. Information Dissemination Capability

The ability to utilize various information dissemination methods—including mass media, company-owned media, and social media—in a timely and integrated manner

6. Relationship-Building Capability

The organizational capability to conduct activities and implement measures that continuously enhance mutual understanding and trust with key stakeholders

7. Crisis Management Capability

Organizational capability to maintain and enhance skills for predicting and preventing risks surrounding the company and responding to emergencies

8. Public Relations Organizational Capability

 The level of decision-making mechanisms, organizational structures, and system development required to integrate management activities with public relations activities

 Generally, when discussing public relations, evaluation tends to focus on metrics like "5. Information Dissemination Capability" – how much information was disseminated, how much media exposure was secured, and what the advertising equivalent value was. However, this model demonstrates that evaluating "public relations" is by no means limited to these aspects. First, meticulous information gathering and analysis are essential.Building relationships with media is crucial, of course. But with the proliferation of social media bringing companies closer to everyday consumers, relationships with the general public cannot be overlooked either. Furthermore, whether the organizational design of the PR department itself is sound significantly impacts PR activities. Companies excelling in PR are likely those that not only devise effective methods for information dissemination but also address these various aspects thoroughly and without oversight.

Evaluating your PR structure using this "PR Octopus Model" reveals your company's PR challenges and weaknesses. The Corporate PR Strategy Institute regularly conducts and publishes the "Corporate PR Capability Survey." Comparing your results to this survey allows you to check how your PR capability stacks up against the average, identifying areas of weakness and where reinforcement is needed. Why not start by objectively reassessing your company's PR capability using these metrics?

To remain the company customers choose, it will become increasingly important to communicate the fundamental message of "what kind of company we are." While promoting products and services is essential, the key lies in how effectively we can implement "corporate communications" that build the kind of trust that makes customers support, empathize with, and want to cheer for the company. Let's revisit our company's structure and aim to enhance corporate value through public relations.