chapter 17

chapter 17 - Corporations TocIay'sModern Corporation The...

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Unformatted text preview: Corporations TocIay'sModern Corporation The Role of Public Relations Media Relations Customer Relations Reaching Diverse Marlcets Consumer Activism Consumer Boycotts Employee Relations Layoffs and Outsourcing Minorities in the Workforce Investor Relations Marketing Communications Product Publicity Cause-Related Marketing Corporate Sponsorships Environmental Relations Corporate Philanthropy C H A P T E R 1 7 · Corporations 445 Today'sModern Corporation Today, giant corporations have operations and customers around the world. Inter- national conglomerates control subsidiary companies that often produce a grab bag of seemingly unrelated products under the same corporate banner. These companies deal with a number of governments at many levels. Their operations affect the environ- ment, control the employment of thousands, and have an impact on the financial and social well-being of millions. The large size of these corporations, however, also brings remoteness. A corpora- tion has a "face" in terms of its products, logo, and brand being readily visible in adver- tising and billboards from Azerbaijan to Zimbabwe and all the nations in between. However, the average consumer really can't comprehend organizations such as Wal- Mart, with $312 billion in worldwide sales, Or MobilExxon, with $371 billion in global sales. These figures boggle the mind, and they represent more than the combined gross national product (GNP) of many nations. As a result, the public is distrustful of the power, influence, and credibility of such giant corporations and business in general. When U.S. gasoline prices rise rapidly, for example, suspicion spreads that the oil companies have conspired to gouge the public, a distrust that the oil companies never fully allay. Major corporate financial scandals and the misdeeds of corporate executives also take their toll. For example, fewer than 3 in 10 Americans (27 percent) feel that most large U.S. corporations are trustworthy, according to a recent Roper survey. And a Gallup poll reveals that business leaders and stockbrokers have joined used car dealers in the cate- gory of "least trusted" individuals in American society. Gallup polls also indicate that 82 percent of the public believes that the top executives of larger corporations receive outrageous salaries in the millions of dollars and, at the same time, improperly use cor- porate funds to fund lavish lifestyles. Public perceptions of greed and corporate misdeeds are reinforced by stories in the media. Hundreds of stories were written about celebrity CEO Martha Stewart's indictment, trial, and conviction for lying to federal investigators about a stock sale, but other executives from such corporations as Enron, World Com, Adelphia, and Tyco were also in the news for falsifying financial records or raiding the corporate treasury. By early 2007, the number of prosecutions for white-collar crime became a major business news topic involving other major corporations with household...
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This note was uploaded on 02/21/2011 for the course COMM 253 taught by Professor Page during the Fall '09 term at Purdue.

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chapter 17 - Corporations TocIay'sModern Corporation The...

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