Friday, August 26, 2005

How does PR affect micro and macro economics?

In the Relationship Value Model, the essence of public relations is to create, sustain and change value. Its influence on micro and macro economics is profound.

Although still operating at a craft level all the domains of practice have an economic impact by changing relationships and the values held by and between people and organisations.

The grown-up version of this practice is the reality that through a well recognised practice such as the Gregory model (see Planning and Managing Public Relations Campaigns) or the value creation model the public relations process changes values. Such value changes can be at a consumer level (micro) or very significant both as an aggregated practice (all the PR work by practitioners and others) and as and as a process acting on economies on a macro scale. At a macro level, confidence in an economic area or area of economic process such as the big industry sectors like manufacturing is very significant and is dependant on the practice of public relations aiding in the development of wealth.

There is a difference between spin and real wealth creation - the proper role for PR. The former has no place in serious discussion of public relations and is best left to BBC burbling. On the other hand real public relations process takes values and gives access to those added tokens and values to enhance value in networks.

Public Relations is, by this process, the core management discipline for any successful economy. It is the only management practice that has all the capabilities and attributes that can have such a profound effect.

At a later time it will be worth re-opening this concept to drill down into the theories of economics and some comments of our time to demonstrate the role of PR in economic theory.

(Photo courtesy of Shanghoon Lee)

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