Enough media space has been devoted to controversial issues ranging from the allocation of telecom spectrum (2G scam) to the alleged mismanagement of funds during the last Commonwealth Games held at New Delhi. The transcripts of tapped phone calls linked to the 2G exposé decimated the long-standing reputation and credibility of some well known faces in politics, business, media and public relations.

The public relations industry which largely deals with image management has had to bend over backwards to protect its own image owing to the shenanigans of certain practitioners who could not care less about the morality of means they used to achieve their or client objectives. These happenings have thrown up certain issues and questions.

Back in the nineties, economic reforms ushered in a new era of development in India. Multinational giants made India their favoured investment destination. It was around this time that corporate India felt the rising importance of business communication. This led to the rapid growth and evolution of public relations as a profession. Fast forward almost a decade and a half to the present, public relations has become almost crucial to any organization’s functioning both external and internal. No doubt, companies have stringent hiring mechanisms when it comes to appointing their official creative agency or a public relations agency.

Presentation of the communication plan, innovativeness of promotional strategies, creative ideas, the work experience of the prospective agencies’ executives, agency’s annual turnover, geographical expanse, employee strength are a few of the various criteria that are taken into consideration when pitches are invited from agencies. Then after due deliberation and comparison, they are chosen to further the organization’s business agenda. The agencies too on the other hand most often go in for pitching to organizations which meet their expectations and ethos.

In this process, an important factor that is often overlooked is the ethical disposition of the firm owing to the intangible character of the attribute. Ethical disposition is a soft asset that can be a defining determinant of an organization’s (be it from any industry) value system. It would be prudent if sufficient attention is given to the integrity of thought process, the work ethics and means of work delivery while chosing partners for growth. Due diligence in this can go a long way in strengthening this soft asset. Introducing checks which ensure that an agency is not using dishonourable methods to get the desired results for the employer would send out positive messages to the stakeholders but will also discourage their propagation.

After all, image is a soft and fragile asset. It cannot be left to the charge of people who may have scant regard for ethical conduct, self esteem and self image.

Positioned as the fourth estate of democracy, media is the voice of the people acting as an independent observer and impassive interpreter of events and developments. It catalyses public opinion on issues of importance. However, there has been a decline in this role since the past decade. Media growing in its variety has made this sector fiercely competitive and commercially centered. These concentrations have led to a gradual decline in the integrity of reporting which is more about emoting and histrionics. Be it reporting the highly populist anti corruption campaign or rising inflation, the thin line between objectivity and aggressiveness is often forgotten. Add to this rapid commercialization which has made the media lose its missionary leanings turning journalism into a revenue focused business like any other. Take for instance the concept of paid news which is rapidly catching up as the best possible way to have desired air time or column space. In their frenzy to break news and get exclusive scoops so as to stay ahead of rivals, ethics and sensitivities often take a back seat. Gone are the days when journalism was synonymous with integrity and courage to bring out the truth. Recent incidents which saw well respected journalists turn into lobbyists for favouring  candidates for ministerial berths to the latest ‘News of the World’ debacle, not only set a bad precedent but also speak volumes about the erosion of global media’s position from being a neutral observer to a conniving partner.

It is high time that media organizations step back a little to review their role as pillars of democracy. There is a need to introduce sharp checks and balances to ensure that credibility of the Press is not lost. Let there be systems in place, early on, right in the institutions where a student of journalism is being groomed to take up his place in the profession. Emphasis should be put on the ethics of the profession, ingraining amongst the to-be media personnel values so strong that no amount of pressure to get exclusive news bytes/reports makes them compromise on their professional conscience. Laws can be made which prevent policy makers from influencing or using the media for promoting their own vested interests and vice-versa. Media can become an instrument of positive social change provided it is ready to change within.

India tops the list of the 30 most attractive emerging markets for investment opportunities by mass merchants and food retailers. Franchising retail outlets are emerging as a popular model for reaching the Indian consumer. Franchising in some form has existed in India for several decades. The industry is still very much in an evolutionary stage. Many American companies have already established a presence in India through franchising. Success stories include, Radisson; Kentucky Fried Chicken, Mc Donald’s, Domino’s Pizza, TGI Friday’s, Ruby Tuesday, Subway, and Baskin Robbins.

There is further demand for U.S. brands in telecom, retail, education, garments and apparel, specialized food services, entertainment, logistics services, stationery and gift shops, healthcare, fitness and personal grooming clinics.

The American companies are excited about the potential in India’s massive population and high rate of economic growth. However, to seize a good market share, it is crucial for American franchisers to understand the dynamics of the Indian consumer and based on that build a business model, which once validated, can be a very powerful driver of growth. In the past companies such as PepsiCo India and Mc Donald’s have adopted Innovative strategies like customization of brand which has helped them access the sizable market of India.

Hence American brands which are looking to enter Indian markets have a task ahead of them of understanding local culture and tastes which is vital to a franchises success. International expansion is a challenging process, but with an effective strategy and two-way communication they can become everlasting success stories.

However, while having mobilized the citizens to force the establishment into taking action, the campaign can be been made more potent by including the culture/society angle to it. Corruption has been a long standing menace threatening the country ever since we became a republic. The situation has been deteriorating at an alarming rate even though there already are provisions in the constitution which seek to take legal action against those indulging in corrupt practices. In this context, the effectiveness of the campaign will depend on its ability to sustain its momentum and to reach the grassroots level which is where corruption is most rampant. While bringing the government to its knees and acknowledging the formulation of an anti corruption bill is all right, the public must not forget that its fight is actually against ‘corruption’ and not governments or political parties per se. The real need therefore is for us the people to understand that unless we start acting against the practices which encourage this evil, these moments will serve no purpose what so ever.

What is needed is a change in the mindset and culture which has silently accepted corruption as a part of the system. There is a need for an improvement in governance with effective law enforcement and the citizens too would have to respect the same, after-all it takes two to tango. This movement will be deemed fully successful only if it is able to induce a culture whereby each Indian, politician, government official or commoner, takes responsibility, becomes accountable and fights corruption of any form doggedly. Once this starts happening, every citizen will become an Anna Hazare in his/her own right and this would be the beginning of the end of corruption.

Crisis situations are often difficult to foresee. It therefore becomes necessary for any organization to have a crisis management plan in place before they are stuck by calamity which otherwise could take a toll on their image and business. Crisis communication has an important role in thwarting the perceptional damages that a company might have to face in wake of a crisis. However while many of them have the requisite technical and mechanical measures to handle a situation they often fall short on the communication front.

A case in point can be the recent BP crisis where reckless statements made by top management became the focal points of scrutiny both by the media, the US government and the public earning BP Plc tremendous backlash and penalties. This affected its businesses, stocks and cost it hugely in terms of reputational losses. BP’s ex-CEO Tony Haywards admittance that the ‘company was not prepared to deal with fallout over the Deepwater Horizon disaster and the media “feeding frenzy” surrounding it’, in an interview with BBC News, on November 09, 2010 further underlines the necessity of having a crisis communication plan in place.

Owing to the intense pressure in a crisis situation, managements are bound to make goof-ups which often prove to be the last nail in the coffin for their reputations. In this context, even an off the cuff remark made in the thick of things can compound the problems for the management. The media is undergoing a constant evolution. With the advent of social networking and micro blogging sites information exchange has become extremely easy. The public which depends on these mediums for news and updates forms opinions about an incident based on unbridled information coming from varied sources. This creates a vicious circle having major repercussions for the organization’s perception and businesses.

Over the past two decades, India InfoMedia was called in to assist very large corporations from diverse sectors for crisis communication support. The issues ranged from boardroom battles to regulatory challenges; from industrial accidents to governance issues.  We observed that very few businesses give thought to crises preparedness at the corporate level. At best, managements made some preparations for handling operational crises at the plant or field level. There was little evidence of any thought been given to reputational crises and its consequences for the business.

Many major businesses, some of even transnational proportions, had no communication strategist or reputation management resource at the board level. There was no mechanism for any contribution from reputation or equity expert having a bearing on critical business and policy decisions.

In times of crises, the principal spokesman who was often a functional head had to take on the additional role of a crisis communicator without adequate preparedness, authority and, most importantly the wider corporate perspective. Often, his strategies and actions had to find approval from the topmost leaders resulting in focused dilution and loss of time. In crisis, speed of communication is as critical as its accuracy and correct targeting. All of this suffers when the spokesman is not adequately equipped or empowered.

It is high time that corporations as well as government institutions identified consistent stakeholder engagement and crisis preparedness as critical leadership agenda.  This will not only evoke confidence amongst the critical audiences but also go a long way in protecting credibility and reputation—all the important soft assets that ought to be safeguarded for larger good.

Will it have any effect on India which has been facing high inflation due to costly commodities like sugar, wheat and other basic food items? Apart from the common man, the worst hit are the fast moving consumer goods (FMCG) companies. Galloping inflation has led to escalating input costs. Companies have no choice but to go in for another price hike in the coming quarter to protect their margins.

Following the trend, most FMCG players have already announced price hikes in the recent times. ITC has decided to take a direct and indirect price increase of eight per cent (Financial Chronicle, February 3, 2011) on packaged foods where it has brands like Bingo and Sunfeast. Marico, Dabur India and Godrej Consumer Products are also all ready to hike product prices further. Biscuit giants Parle and Britannia have tried everything from reducing the number of biscuits per pack to reducing the size per biscuit to taking a direct price hike. On the contrary, Parle have been innovative in tackling this problem which can be understood from company’s recent plans to increase the package weight of its flagship Parle-G and Parle Marie brands by at least six per cent without any change in the maximum retail price (Hindu Business Line, February 9, 2011).

The rise in cost of packaging is yet another strain on FMCG companies which are already under pressure due to high prices of paper and metals that go into commodity packaging. In such a scenario companies like ITC which have in-house paper and packaging division are likely to have an advantage over competition. However, some commercial packaging firms are working on developing newer, cheaper packaging materials to control costs. The measures include tweaking the size and thickness of packages as well as replacing costly material with lower-cost alternatives. Tetra Pak India, which has a ninety per cent share in packaged fruits and juices segment, has introduced smaller, 60-65 ml and 100-110 ml pack offerings (The Economic Times, February 11, 2011) for brands such as Parle Agro’s Frooti.

The first world assembly of Public Relations Associations held in August 1978, in Mexico defined Public Relations as “the art and social science of analyzing trends, predicting their consequences , counseling organizational leaders, and implementing planned programmes of action , which will serve both the organization and public interest.”This art, which can take years to be perfected, is built upon the principles of honesty and truthfulness. Two-way communication forms the bedrock of this profession. A Public Relations practitioner almost always aspires to be a counselor. One ought to be a deft communicator possessing quick thinking abilities and lots of common sense.

Public relations has assumed a lot of significance today and is being used by corporate houses, governments and individuals to build their image and strengthen their relations with stakeholders. A successful public relations practitioner often has to be adept in the art of persuasion through communication. It is not the ability to be able to present the true picture without twisting facts but also doing it without resorting to lying and using unseemly tactics.

The recent exposé of the conversations of a public relations practitioner currying favours for her clients with government officials and the media has been confounding people who are confusing it with lobbying. One is appalled by this development, because one, it not only has brought ignominy to the profession but has also led to lobbying being misconstrued by many as something very evil. Lobbying is a healthy practice which revolves around influencing popular opinion to bring about a positive change. Both these businesses are not definitive in practice and not very well regulated. Hence it is up to the practitioners to define their rules and follow them. For instance organizations like PRCAI and PRSI must lay down certain ground rules for self regulation and professional conduct. Given the sensitive nature of the business the government can also step in and lay broad outlines of rules to be followed by all public relations organizations.

On the whole, however, one would have to concede to the fact that at the end of the day it boils down to an individual’s own conscience his sense of right or wrong, of what is ethical and what is not. Personal morality assumes a lot of significance here because only that would help one determine as to where exactly should the lines be drawn.

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