The opportunity for public relations to build on management status earned during COVID-19
Deloitte study identifies organisational listening, stakeholder mapping and relationship management as critical advisory roles
The rise of the public relations function within organisations during COVID-19 is well reported. It supported organisations with transformation, employee engagement and the management of a broad range of stakeholder issues. A Deloitte study - Tested, Trusted, Transformed: 2023 Corporate Affairs Report - published in February 2023 sets out the conditions that are required for the corporate affairs function to maintain this elevated status.
There’s a long running and often mind-numbing debate within the public relations industry about its definition and role within management. The term public relations itself is often rejected because of its association with publicity and spin. A range of alternative terms has developed each with its own definition and scope. These include communication management, corporate communication and corporate affairs - the term favoured by Deloitte.
Boards and management teams continue to lean into the corporate affairs function for stakeholder data and insight, support with relationship management and to balance the purpose of the organisation with a societal need.
Deloitte says that the corporate affairs director is a professional advisor for the modern business environment able to address the pressures to reflect society in business, balance both investors and societal needs, be part of cultural discourse, live with radical transparency and communicate in a fractured media ecosystem.
Two-thirds of corporate affairs directors have a seat on the executive committee and two-thirds report to the chief executive. They are part of the most senior coalition within an organisation and part of decision making.
A significant shift within the corporate affairs function identified by Deloitte is a move to a growth mindset. The report identifies a range of metrics from relationship management and commercial performance for progressive teams, through to public relations coverage for more traditional functions.
Five key measurement categories were identified for the corporate affairs function by Deloitte from interviews
The focus on employees and societal concerns that arose during COVID-19 have left a legacy for organisational communication. Employee engagement and internal communications are cited as a number one priority by corporate affairs directors. This so-called inside out perspective also lends itself to helping boards and management teams understand the societal concerns of the broader public.
The progressive corporate affairs function provides a critical organisational listening role, supporting organisations with the alignment of purpose, actions, and narrative with the needs of society. The function is transformed for the digital era and is embracing quantitative decision-making using data, data analytics and broader technology. This is the organisational listening function described by Jim Macnamara in his book Organizational Listening: The Missing Essential in Public Communication.
Deloitte interviewed 30 corporate affairs directors for the report from FTSE100, Fortune500 and Euronext 100 companies. It’s a highly original report with a group of public relations professionals who are seldom surveyed. My own PhD research at Leeds Business School exploring the professional advisory role of public relations in management and has identified many similar issues.
