Industry News

PR not a waste of money for business

Silicon Valley/San Jose Business Journal
11/19/2002

If your company wants a positive image, don't skimp on the public relations.

That's according to a new study conducted by the University of Southern California's Annenberg Strategic Public Relations Center.

The study found that, among companies included in Fortune Magazine's "Most Admired" list, there is greater support for the public relations function, both in terms of budget and organization, than those of similar size that are not on the list. It also found that despite troubled, budget-cutting economies, PR budgets have remained intact in many organizations and have actually increased among many companies where senior management believes in and supports PR.

And the more the public relations function is designed, practiced and evaluated in close alignment with an organization's strategic business goals, the greater its support from top management in terms of budget size, and the greater its perceived contribution to the organization's success, according to the study.

"The finding that there is a correlation between strong support for public relations and inclusion on Fortune magazine's Most Admired Company list is good news for our industry," says Kathy Cripps, president of the Council of Public Relations firms, which commissioned the USC study.

She notes that companies chosen by the magazine are judged on such factors as leadership, innovation, quality of products and services and social responsibility.

"The study shows that our profession has matured to the point where we are now finding solid proof that strong, strategically oriented public relations functions are not optional, they're indispensable," says Jerry Swerling, associate director of the university's PR center and co-author of the study. Senior level public relations practitioners at 360 publicly and privately held companies throughout the United States participated in the 25-question survey.

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