- organisational culture;
- relationships with stakeholders;
- organisational image and reputation;
- “influence behaviour” which comprises the roles of monitoring progress and rewarding or compensating behaviour; and
- “external validation” which comprises the roles of internal and external communication, benchmarking, and compliance with regulations.
Relationship management as a form of practice is infrequently audited in such a manner that it contributes to valuing effort except in the very narrow sense that some companies in Australia, the USA and UK (and most of the European Union from 2006) are required to report on 'Stakeholder Relationships' with the narrowest, and almost inconsequential, of interpretations. A more robust approach returns us to the concepts how, and to what extent, Public Relations changes cultures both among 'stakeholders' and, more usefully, among publics. It suggests that there can be an overarching approach and many methodologies for evaluation. One can postulate that this will tend towards a form of balanced scorecardv (Kaplan & Norton 1996) reporting and the growing movement towards intangible asset valuation. The merit of taking this approach is that it can take the cost of Public Relations effect and replace it as a relationship asset for organisations. In the business world, this has many advantages. It offers a view that Relationships have a balance sheet value and are an asset. For example, the Australian Statement of Accounting Concepts 4 (SAC 4) 'Definition and Recognition of the Elements of Financial Statements', states that ‘assets’ are future economic benefits controlled by the entity as a result of past transactions or other past events. Thus 'Reputation' moves from the accountant's view of 'goodwill' and becomes an asset that can be accounted for on a balance sheet. The Public Relations manager is thereby responsible for an asset and the PR budget is translated into an investment in development of the corporate asset. The domains of Public Relations practice can thereby be measured in terms of investment in corporate assets and return on investment need not drop to the bottom line but is vested in sustaining the balance sheet.
iMandjak,T and Wimmer,2003 “A Business Relationships as Value Drivers ” 18th Annual IMP Conference,http://www.impgroup.org/uploads/papers/469.pdf accessed May 2004
ii Wilson,David T. and Swati Jantrania. (1995)“Understanding the Value of a
Relationship.” Asia-Australia Marketing Journal 2 (1):55-66.
iii Phillips, D. (2006) Relationships Are The Core Value for Organisations Corporate Communications: An International Journal ISSN:1356-3289 vol 11 no 1
iv Marr, B and Moustaghfir, K (2005) Defining intellectual capital: a three-dimensional approach Management Decision Volume 43 Number 9 2005 pp. 1114-1128