Global Journal of Management and Business Research: B

Economics and Commerce

Volume 14 Issue 4 Version 1.0 Year 2014
Type: Double Blind Peer Reviewed International Research Journal
Publisher: Global Journals Inc. (USA)
Online ISSN: 2249-4588 & Print ISSN: 0975-5853

The Importance of Public Relations in Corporate Sustainability

By Orlando Rivero, D.B.A. & John Theodore, Ph.D., D.B.A., Ph.D., CMC
JDT Management Consultants, USA
Abstract- The purpose of this article was to present the importance of using public relations
to communicate the intent and application of corporate sustainability by organizations that are
involved in this practice. Since there are three areas that corporate sustainability is involved with,
public relations need involve all of them. The areas are ecological, sociological, and
corporate/business. The CEOs of organizations responsible for the strategic formulation and
application of public relations need to have the appropriate vision in order to merge the target of
public relations with the ever-changing internal and external environment of the organization.
Public Relations must be embraced by organizations that follow the corporate sustainability
model. From an internal/external perspective, stakeholders, employees, and the public must
communicate effectively, efficiently, and on a timely basis in order to enhance their positive
interaction and attain the desired goals.

Keywords: corporation, social responsibility, sustainability, corporate sustainability, ecology,

sociology, ceo, internal environment, external environment, public relations.
GJMBR-B Classification : JEL Code: H00

TheImportanceofPublicRelationsinCorporateSustainability

Strictly as per the compliance and regulations of:

© 2014. Orlando Rivero, D.B.A. α & John Theodore, Ph.D., D.B.A., Ph.D., CMC. This is a research/review paper, distributed under
the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-
nc/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly
cited.
The Importance of Public Relations in Corporate
Sustainability
Orlando Rivero, D.B.A. α & John Theodore, Ph.D., D.B.A., Ph.D., CMC σ

Abstract- The purpose of this article was to present the Public relations is a management tool designed
importance of using public relations to communicate the intent to establish support among a firm’s various internal and
and application of corporate sustainability by organizations external publics (Thomas & Lane, 1990). Another
that are involved in this practice. Since there are three areas

2014
definition stated that public relations includes activities
that corporate sustainability is involved with, public relations
need involve all of them. The areas are ecological, socio-
that is build around a favorable company’s image

Year
logical, and corporate/business. The CEOs of organizations through publicity, and community events (Zeithaml,
responsible for the strategic formulation and application of Bitner & Gremler, 2009). The major functions of public
public relations need to have the appropriate vision in order to relations are to create and maintain excellent relations 21
merge the target of public relations with the ever-changing with the organization’s internal and external stake-
internal and external environment of the organization. Public holders, such as persons and private, governmental,

Global Journal of Management and Business Research ( B ) Volume XIV Issue IV Version I
Relations must be embraced by organizations that follow the and societal entities in general.
corporate sustainability model. From an internal/external Public relations can have a strong impact on
perspective, stakeholders, employees, and the public must
public awareness at a much lower cost than advertising
communicate effectively, efficiently, and on a timely basis in
(Kotler & Armstrong, 2006). The tools used in public
order to enhance their positive interaction and attain the
desired goals. relations are press releases, lobbying, product publicity,
Keywords: corporation, social responsibility, investor’s relations, and development. In this article,
sustainability, corporate sustainability, ecology, press releases, public affairs, and lobbying will be
sociology, ceo, internal environment, external discussed. The CEOs of corporate sustainability efforts
environment, public relations. can use lobbying to persuade public and/government
officials to favor a particular position or decision-making
I. Introduction (Price & Ferrell, 2003). In this case, it is promoting the

T
organization’s efforts in sustaining and developing the
he corporation is one of the three legal forms of
social and physical environment.
enterprise defined as “a legal entity that is
Modern public relations has evolved to embrace
separate from its owners and managers” (Robbins
corporate sustainability; corporate sustainability is built
& Coulter, 2005, p. 363). In addition to making profit for
around the organizational structure that embraces
its owners/stockholders, today’s corporations have
public relations theories and practices. Ecological,
social responsibility which is defined as “the idea that
sociological, and corporate/business elements must be
business has social obligations above and beyond
properly promoted internally/externally by utilizing public
making profit” (Kreitner & Kinicki, 2008, p. 137).
relations efforts in order to provide the most updated
Sustainability is “the process of establishing
information to stakeholders/employees and the public
appropriate strategies, policies, and procedures that
(Penning, 2007). In reference to the power center of
satisfy present needs without jeopardizing the future”
corporate sustainability, organizations need to have
(Brockett & Rezaee, 2012, p. 5). The concern of sustain-
CEOs with strategic background, intent, and vision in
nability in the external environment of the organization is
order to direct public relations to the three target areas
directed toward the ecological and sociological areas of
specified in this article.
the macro environment. In the first case, the organiz-
Organizations throughout the world need to
ation is concerned with the preservation of the physical
understand the value of public relations in an effort to
ambient whereas in the latter case the concern is with
meet institutional goals and objectives. More specifi-
the ethical and legal conduct of the organization. Finally,
cally, the overall organizational strategic plan needs to
the third area is the internal environment in which the
incorporate public relations initiatives within the
organization is concerned with ethics, the law, and
short/long term planning to avoid internal/external
equitable treatment of the human factor in every level of
communication mishaps (Public Relations Society of
the organizational hierarchy.
America, 2013).
Author α : Vice-President, JDT Management Consultants. Planned organizational change in relation to
e-mail: [email protected] corporate sustainability continues to be arguably the
Author σ : President, JDT Management Consultants. solution to remain competitive for most United States
e-mail: [email protected]

© 2014 Global Journals Inc. (US)

 The Importance of Public Relations in Corporate Sustainability

medium and large-sized organizations. For several emphasized the “development of employee capital and
years, studies have suggested “that swiftly planned corresponding competencies and have acknowledged
organizational change initiatives are needed to stay their importance for long-term competitive advantages”
ahead of organizational competitors” (Rivero, 2013, p. (Dunphy, Griffiths, & Benn, 2003, p.187).
169 In order to provide continuous growth and
The role of the corporation in the area of the development, the employment of organizational
physical environment is to provide sufficient attention development becomes necessary. Organizational
and help understand the concept of ecological development makes the organization more open and
modernization which is “a system based approach that more adaptive through increases in capability and
looks to the interconnections between policy formation, potential in order for it to continue planned change
the economy, and the natural environment” (Benn & efforts on an action orientation basis. Organization
Dunphy, 2007, p. 16). Public relations is directed toward development is a planned change effort and involves all
the parts of the organization, and it is initiated and
2014

the domestic and international centers of ecological

interests and concerns and toward the public in general. managed from the top hierarchy. To make the
Year

Corporate sustainability efforts are aiming at increasing organization more open and more adaptive, organi-
the organization’s participation in the maintenance and zation development unfreezes the existing status quo,
growth of the physical environment; for this reason, the makes the planned changes, and refreezes the new
22 need to incorporate public relations within the status quo in order to avoid regression (Theodore,
organization’s strategic plan in meeting such goals is 2012).
Global Journal of Management and Business Research ( B ) Volume XIV Issue IV Version I

crucial. The use of press releases, public affairs, and Public relations, in the internal environment
lobbying are strong tools in reaching the centers of area, is directed to both the entire organization and to its
power dedicated to sustaining and developing the individual departments and units. Internal commun-
physical environment. ication and good internal communication channels are
The role of the corporation in the social area of of paramount importance. From an internal perspective,
sustainability is based on socially responsible invest- organizations must be able to communicate effectively
tments. These are “value chain social impacts that are with its human resources in order to streamline organiz-
affected by the organization’s activities and social ational development. Finally, public relations must also
dimensions of competitive context that affect the drivers be an important part of internal communication to
of competitiveness where the organization operates” promote planned change and development within the
(Epstein, 2008, p. 64). Public relations is directed toward organization (Rivero, 2013).
stakeholder groups and investment/financial centers.
Penning (2007) stated that public relations is a critical
II. Summary
component when it comes to public reporting, the The purpose of this article was to present the
economy, equality, and environment. importance of using public relations to communicate the
Moreover, the organization’s strategic plan intent and application of corporate sustainability by
should consider incorporating social responsibilities and organizations that are involved in this practice. The
sensitivity to diversity issues in an effort to boost areas where corporate sustainability is involved are
organizational branding efforts. Penning also stated that ecological, sociological, and corporate/business. The
organizations must be able to monitor the economy in CEOs of organizations responsible for the strategic
order to readjust their organizational strategic plan formulation and application of public relations need to
initiatives to remain competitive. Furthermore, from the have the appropriate vision in order to merge the goal of
sociological perspective, “organizations must develop to public relations with the ever-changing internal and
meet the needs of our public, as opposed to strat- external environment of the organization. The role of the
egizing to get them to change to meet the organization’s corporation in the area of the physical environment is to
objectives” (Penning, 2007, p. 2). Public relations, lob- provide sufficient attention and help under the concept
bying, and press releases in this area, too, are excellent of ecological modernization. Press releases, public
tools to reach the power centers that monitor corporate affairs, and lobbying are strong tools in reaching the
social responsibility. centers of power dedicated to sustaining and dev-
Finally, the role of the corporation within its eloping the physical environment.
internal environment area is to operate under ethical and The role of the corporation in the social
legal auspices, respect the equity between work and environment of sustainability is based on socially
compensation/benefit, implant motivational forces that responsible investments. Public relations is directed
need to increase human resources work satisfaction, toward stakeholder groups and investment/financial
and provide opportunities for growth and development centers and it is a critical component when it comes to
within its structure. Organizations adopting innovative public reporting, the economy, equality, and environ-
and value–adding approaches to sustainability have ment press releases, public affairs, and lobbying are

© 2014 Global Journals Inc. (US)

 The Importance of Public Relations in Corporate Sustainability

strong tools in reaching the centers of power dedicated 11. Robins, S. P., & Coulter, M. (2005). Management
to sustaining and developing the social environment. (8th ed.). Upper Saddle Creek, NJ: Pearson-Prentice
Finally, the role of the corporation within its Hall.
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legal auspices, respect the equity between work and American employee and manager, and the develop-
compensation/benefit, implant motivational forces that pmental role of the social sciences. Global Journal
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communication and good internal communication Services marketing. New York. McGraw Hill-Irwin.
channels are of paramount importance in conducting

2014
planned changes and overall organizational develop-
pment.

Year
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