Importance of Public Relations
Understanding the Strategic Role of Public Relations
Public relations (PR) is one of the most
powerful yet frequently misunderstood disciplines in organizational management.
Far beyond the popular perception of media spin or publicity stunts, public
relations represents a sophisticated, strategy-driven function that governs how
organizations communicate with, relate to, and earn the trust of the various
groups that shape their success or failure.
This document explores the importance of
public relations as a foundational management function — examining its
definition, its role in organizational survival, and the critical lessons drawn
from one of the most instructive case studies in modern PR history: the 1997
United Parcel Service (UPS) strike.
|
Core
Premise: Public relations can truly mean the difference between life and
death for an organization, or the difference between profitability and
failure. Ongoing PR initiatives can prevent crises; well-managed PR can
repair even severely damaged reputations. |
Why
Public Relations Matters
The
Strategic Foundation of Organizational Survival
In today's complex, media-saturated, and
stakeholder-aware environment, the importance of public relations cannot be
overstated. Organizations — whether corporations, government bodies,
non-profits, or academic institutions — exist within an ecosystem of
relationships. These relationships, with employees, customers, investors, the
media, government agencies, and the public at large, must be actively managed.
PR as a Lifeline for Organizations
Public relations serves as the connective
tissue between an organization and the world it operates in. When this
connection is strong and well-maintained, organizations enjoy resilience,
credibility, and public trust. When it is neglected or mismanaged, the
consequences can be catastrophic.
The following functions underscore why PR
is essential to every type of organization:
|
Core Functions of Public
Relations |
|
Public
relations acts as a conduit, facilitating communication between an
organization and its publics. It involves conducting research, defining
problems, engaging in strategic conversation, and creating meaning by
fostering communication among diverse groups in society. In essence, PR is
the manager of communication — ensuring that an organization's message is
heard, understood, and trusted. |
Bridging Organizations and Their Publics
The PRSA (Public Relations Society of
America) defines public relations as the management of communication between an
organization and its publics. This definition highlights three critical
components that explain why PR matters:
|
Management The body of knowledge on how best to coordinate the
activities of an enterprise to achieve effectiveness. PR is not an
afterthought — it is a management discipline. Communication Not merely broadcasting messages, but actively
listening and engaging in dialogue. Effective PR is a two-way street, not a
megaphone. |
|
Organization Any group organized with a common purpose —
businesses, corporations, government agencies, or non-profits — all need
structured communication strategies. Publics Any group held together by a common interest.
Publics differ from audiences in that they often self-organize and may not be
directly targeted by communications. |
The
UPS Case Study (1997)
A
Landmark in Crisis Public Relations
Few case studies in the history of public
relations are as instructive as the 1997 UPS-Teamsters strike. The case
demonstrates, with rare clarity, how the absence of proactive PR strategy — and
the underestimation of communication battles — can inflict lasting reputational
damage on even the most formidable organization.
Company Overview
Founded in 1907, UPS plays a vital role in
both the U.S. and global economy. At the time of the strike, UPS carried
approximately 6% of U.S. gross domestic product (GDP) and 2% of global GDP,
making it a cornerstone of American commerce. It was the second largest
employer in the United States and the ninth largest in the world, with 427,000
employees.
UPS had long maintained a relationship with
the International Brotherhood of Teamsters, the union representing UPS
employees since the 1920s. The company was the largest employer of Teamsters in
the country, with 225,000 union members, and had never faced a national strike
prior to 1997.
The Road to Crisis
As contract negotiations began in 1997,
several issues proved especially contentious:
•
Part-Time Employment: The Teamsters demanded that UPS
commit to converting more part-time positions into full-time jobs, with a
guaranteed minimum number of full-time roles.
•
Pension Fund Control: UPS sought a separate pension
fund for its Teamster employees, questioning the management of the
union-controlled pension fund — one of the largest in the United States.
•
Political Context: The Teamsters' president, Ron Carey,
a former UPS driver with a reportedly adversarial stance toward the company,
was simultaneously facing federal investigations over alleged illegal
fund-raising.
|
|
Without any forewarning, the
Teamsters union announced that evening that it would strike. Ron Carey held a
press conference early in the morning on August 4 confirming a national
strike and encouraging all UPS workers to walk out. The UPS strike instantly
became the top national and local news story throughout the United States. — UPS Case
Study, 1997 |
UPS Public Relations: Preparation and Failure
As negotiations deteriorated, UPS began
developing contingency plans, including for public relations. However, the PR
department was critically underprepared: only 10 management employees and a
limited budget of $5 million for the United States — far too lean for the
global attention the company was about to face.
Despite having a formal crisis
communications plan, the UPS PR team faced overwhelming opposition. Their
preparation had included:
•
Compiling extensive facts and figures about the
company.
•
Training regional spokespeople in advance of a
potential strike.
•
Identifying third-party experts who could highlight the
company's positives.
Yet in retrospect, UPS acknowledged they
could have done far more before and during the strike. The Teamsters, by
contrast, launched a well-coordinated media campaign across television, radio,
and print — a full-court media blitz centered on a powerful, tested message.
|
The
Teamsters won the communication battle by focusing their messaging around the
theme "Part-time America won't work" — a simple, emotionally
resonant message that caught on with the media and the public, while UPS
struggled to communicate its position effectively. |
|
|
We got slaughtered in the press. — Ken
Sternad, Head of UPS Public Relations |
Why UPS Lost the PR Battle
The Teamsters' communication superiority
stemmed from several strategic advantages that underscore the importance of
proactive PR investment:
|
Message
Testing The Teamsters had clearly researched and tested
their messaging before the strike, arriving with a narrative that resonated
with both the media and the public. Human
Interest Angle The union put a human face on the issue by
showcasing unhappy UPS workers, particularly those in part-time roles,
generating public sympathy. |
|
Third-Party
Engagement Effective use of external experts and opinion
leaders amplified the union's message through credible, independent voices. Digital
Presence The Teamsters made effective use of the Internet —
then an emerging communications tool — extending their reach beyond
traditional media. |
Lessons
Learned
What
the UPS Strike Taught Organizations About PR
The UPS-Teamsters strike ultimately yielded
a set of invaluable lessons that have since informed crisis communications
strategy across industries. These lessons reveal the deeper importance of
public relations as a discipline.
|
|
The real work begins before the
crisis hits. The PR team must make decisions for the long-term and stay
focused on priorities. As in all crises, the first hours are the most
critical. How the company responds initially sets the tone for the rest of
the crisis period. That is why advance research is so critical. Message
testing is fundamental to effective communications, but it must be done
before the crisis hits. — Ken
Sternad, Head of UPS PR |
Key Strategic Lessons
1. Proactive Relationship Management
The UPS case demonstrates the critical
importance of developing and maintaining relationships — even with those
perceived as adversaries. UPS had miscalculated both the Teamsters' willingness
to strike and the depth of resentment among union members. Stronger, ongoing
relationship management might have prevented or mitigated the crisis entirely.
2. Message Testing Before Crisis Strikes
Effective communication requires that
messages be researched, tested, and refined long before they are needed. The
Teamsters' "Part-time America won't work" slogan was powerful because
it was carefully crafted and validated. UPS, by contrast, had not invested in
equivalent messaging preparation.
3. The Balance of Facts and Emotion
Ken Sternad's reflection identified a
critical communications principle: effective messaging requires both
"steak and sizzle" — factual substance alongside powerful,
emotionally resonant imagery that speaks to people's feelings, not merely their
intellect. Data alone rarely wins a public narrative.
4. The Importance of Protecting Internal Relationships
UPS consciously decided not to vilify its
own employees, even as they walked off the job. This strategic restraint —
motivated by the long-term imperative of rebuilding labor relations — proved to
be a key factor in limiting the strike's long-term reputational damage. As
Sternad noted:
|
|
We knew that we would need our
people with us for the long term and we didn't want to do or say anything
that would tarnish the image of the UPS driver. They will always be the face
of the company and our link to our customers and we didn't want to alienate
them. — Ken
Sternad |
5. Third-Party Credibility
Organizations must cultivate relationships
with credible external voices — experts, community leaders, and stakeholders —
on an ongoing basis, so that these voices can be called upon during a crisis.
UPS learned that third-party advocates must be engaged before, not during, a
crisis.
6. Crisis Infrastructure Must Be Ready in Advance
UPS now maintains standby websites that can
be activated instantly in the event of a crisis. This reflects the broader
lesson that crisis infrastructure — digital platforms, spokespersons,
messaging, and communication channels — must be developed, tested, and
maintained continuously, not assembled under pressure.
Defining
Public Relations
Scope,
Functions, and Terminology
Understanding the importance of public
relations requires a clear grasp of what PR actually is — and what it is not.
The field is often misperceived, in part because it is an ephemeral and
wide-ranging discipline that resists simple definition.
The Official Definition
The most widely accepted definition comes
from James E. Grunig and Todd Hunt (1984), who defined public relations as
"the management of communication between an organization and its
publics." The PRSA has built upon this definition to clarify the function:
|
PRSA on the Function of
Public Relations |
|
Public
relations helps our complex, pluralistic society to reach decisions and
function more effectively by contributing to mutual understanding among
groups and institutions. It serves to bring private and public policies into
harmony. The public relations practitioner acts as a counsellor to management
and as a mediator, helping to translate private aims into reasonable,
publicly acceptable policy and action. |
Types of Public Relations
Public relations takes several forms, each
tailored to a specific organizational context:
|
Corporate
PR An in-house public relations department within a
for-profit organization of any size, managing communications as an ongoing
organizational function. PR
Agency Hired consultants that normally work on an hourly
basis for specific campaigns or goals of the organization that retains them. |
|
Non-Profit
PR Communications management for not-for-profit
organizations, foundations, and cause-related groups, focused on mission
advancement and donor relations. Government/Public
Affairs A specialized PR branch that manages relationships
with governmental officials and regulatory agencies, also known as public
affairs. |
Key Publics in Public Relations
A fundamental concept in PR is the notion
of "publics" — groups held together by a common interest that an
organization must communicate with and relate to. The most important publics
for most organizations include:
•
Employees — internal stakeholders whose trust and
engagement are foundational to organizational performance.
•
Communities — the local and broader communities in
which the organization operates and on which it depends for goodwill.
•
Financial Stakeholders and Shareholders — investors and
financial partners who require transparent, credible communication.
•
Governments — regulatory bodies and governmental
authorities at local, national, and international levels.
•
The Media — journalists, editors, and media
organizations who serve as gatekeepers and amplifiers of organizational
messaging.
Terminology in Public Relations
Because of the historically mixed
reputation of public relations — associated in some quarters with manipulation
and spin — many organizations choose alternative terminology for their PR
function. The most common synonyms include:
|
Common Synonyms for Public
Relations |
|
Corporate
Communication is the most widely used synonym in practice today. Some
scholars argue it applies only to for-profit entities, though in practice it
encompasses non-profits and NGOs as well. Marketing Communication emphasizes
the intersection of PR with promotional strategy and brand building. Public
Affairs is often used in government and policy contexts, focusing on
relationships with regulatory bodies and elected officials. Strategic Public
Relations is preferred by scholars who wish to differentiate disciplined,
research-based PR from its more superficial associations. |
PR
as a Management Function
Strategic
Contribution to Organizational Success
Perhaps the most important evolution in
public relations over the past century has been its transition from a
journalism-adjacent publicity function to a genuine management discipline.
Modern PR is grounded in research, informed by strategy, and measured against
organizational outcomes.
From Publicity to Strategy
Public relations has radically departed
from its historical roots in publicity and journalism to become a management
discipline — one based on research and strategy. This evolution means that
effective PR is not merely reactive; it is proactive, data-driven, and aligned
with long-term organizational objectives.
The public relations field has grown to
encompass the building of important relationships between an organization and
its key publics through both its actions and its communications. This
perspective defines PR as a management function and clarifies the roles and
responsibilities of PR professionals.
Sub-Functions of Public Relations
The public relations umbrella encompasses a
range of specialized sub-functions, each addressing a distinct aspect of
organizational communication:
•
Media Relations — managing relationships with
journalists and securing accurate, favorable coverage.
•
Public Affairs — engaging with government and
regulatory stakeholders to shape policy environments.
•
Investor Relations — communicating with financial
stakeholders to maintain confidence and transparency.
•
Crisis Communications — managing organizational
reputation during emergencies and controversies.
•
Internal Communications — ensuring employees are
informed, aligned, and engaged.
•
Community Relations — building goodwill and
partnerships in the communities where organizations operate.
|
It
is essential to understand that public relations is a unique management
function that contributes to an organization's success through its focus on
developing and maintaining relationships with key publics. It is not
synonymous with any of its sub-functions — it is the strategic framework
within which all of them operate. |
Conclusion
The
Enduring Importance of Public Relations
The importance of public relations to
organizational life cannot be reduced to media management or reputation repair.
At its core, PR is the discipline through which organizations earn, maintain,
and restore the trust of the people and institutions that matter most to their
mission and survival.
The 1997 UPS strike illustrates this with
painful clarity. Despite its size, resources, and institutional relationships,
UPS was outmanoeuvred in the public sphere by a union that invested in
research, message development, and emotional storytelling. The result was
reputational damage that took years to reverse — a consequence entirely
attributable to insufficient public relations investment and strategy.
The lessons UPS ultimately internalized —
proactive relationship building, advance message testing, third-party
cultivation, crisis infrastructure, and the protection of internal
relationships — represent the foundational principles of effective public relations
practice.
|
|
As painful as it was at the time,
I think we're a much stronger and better prepared company because of this
experience. — Ken
Sternad, Head of UPS Public Relations |
|
Key Takeaways •
PR is the
management of communication between an organization and its publics — a
strategic management function, not a mere publicity tool. •
Proactive
PR investment is essential; reactive PR is always more costly and less
effective than prevention. •
Message
research, testing, and emotional resonance determine whether an organization
wins or loses the communication battle. •
Protecting
relationships — even under adversarial pressure — is a long-term strategic
asset. •
PR's
importance spans every sector: corporate, non-profit, government, and
academic organizations all depend on effective communication management. |
References & Bibliography
Grunig, J. E., & Hunt, T. (1984).
Managing public relations. New York: Holt, Rinehart and Winston.
Public Relations Society of America.
(2009). Official statement on public relations. PRSA.
Public Relations Society of America.
(2009). Public relations defined. PRSA.
Bowen, S. A., Heath, R. L., Lee, J.,
Painter, G., Agraz, F. J., McKie, D., et al. (2006). The business of truth: A
guide to ethical communication. San Francisco, CA: International Association of
Business Communicators.
United Parcel Service. (2009). Company
information. UPS Corporate Communications.
Sternad, K. (2009, March 30; September
2009). Personal communication. [Classroom lecture and interviews]. Head of
Public Relations, UPS.