(First of two parts)
It remains the case that a majority of CFOs and CEOs treat PR as an afterthought—a cost center rather than a value-contributor to the business’s performance.
This results from its often-abstract character and its unavailability of direct causal chains that link up PR activity directly with financials. Nonetheless, some organizations in Southeast Asia, including several in the Philippines, show that strategic positioning of PR can create actual business output.
Why PR Is misunderstood by CFOs and CEOs
1. Measuring ROI is not easy: While sales or marketing results are easy to quantify, PR is not. Its impact cannot be easily seen or measured, and metrics like brand reputation or stakeholder trust cannot be translated into dollars and cents, making it difficult for financial leaders to see PR’s value.
2. Focus on short-term results: CFOs and CEOs often prioritize immediate revenue gains over long-term reputation building. PR, which typically delivers value over time, is thus overlooked in favor of functions with more immediate results.
3. Misalignment with business goals: PR teams sometimes operate in silos, focusing on media placements or crisis responses without aligning efforts to broader business objectives like revenue growth or market expansion.
4. Historical perceptions: PR has generally been seen as a publicity or PR fix tool rather than a business driver. This old paradigm is still the basis of decision-making in many organizations today.
Changing the narrative: The potential of PR as a business driver
To change minds, PR practitioners need to communicate the bottom-line impact of PR efforts. This means embedding PR strategies into business objectives, leveraging data-driven insights into action, and communicating to stakeholders the impact of all these efforts on a regular basis.
1. Alignment of PR with business goals
PR should be aligned with measurable business results, such as revenue increase, market share gain, or customer retention. Nestlé’s “Kasambuhay for Good” campaign showcased its commitment to sustainability and community development. By aligning this PR initiative with its business objective of increasing brand loyalty among Filipino consumers, Nestlé strengthened its market position. The campaign’s messaging resonated with consumers, influencing purchasing behavior and helping boost sales of some Nestlé products.
2. Use data to prove value
PR professionals should use analytics tools to measure campaign impact and link it to financial metrics like sales, customer acquisition, or investor confidence. When operational issues were raised against Cebu Pacific, its PR team used sentiment analysis and social media monitoring to understand the public’s response to such issues and determine their action. By openly dealing with customer complaints and introducing services, the airline regained trust. Consequently, customer bookings increased, which is evidence that good PR can save crises and revenue streams.
3. PR role in market entry
PR is a vital function in entering new markets or expanding existing ones. Strategic storytelling and relationship-building can differentiate a brand from competitors. Tala, a fintech company, employed PR to create trust among the unbanked and underserved Filipinos, who had traditionally been wary of digital financial services. Using focused storytelling through customers’ testimonies and collaborating with local influencers, Tala presented itself as a trusted financial partner. The above PR initiative contributed to the fast growth of the company in the Philippines.
4. Crisis management through PR
A good crisis can protect the reputation of a firm and prevent significant financial losses. When leadership disputes challenged the reputation of Okada Manila, the PR team of the brand communicated fast on the commitment to operational stability and customer satisfaction. It managed the narrative in such a way that Okada maintained confidence from customers and prevented significant booking declines, thus PR can prevent business performance declines.
5. Communicate ESG Initiatives
ESG initiatives are growing increasingly important to investors and customers. PR can magnify these efforts, attracting stakeholders who prioritize sustainable practices. AboitizPower often communicates its activities in renewable energy through a PR campaign to be put as a market leader in a sustainable energy system. It therefore attracts ESG-focused investors who have trust among the ecologically conscious consumers. This therefore goes in tandem with AboitizPower’s long-term business goal of market penetration and profitability.
Steps toward changing perceptions about PR
1. Educate financial leaders
PR professionals need to brief CFOs and CEOs on how PR supports business goals. They need to share case studies and evidence of PR’s impact on key performance indicators.
2. Invest in PR analytics
Companies should invest in PR analytics tools such as those offered by CARMA. to track and measure PR outcomes. For example, measuring media reach, website traffic, and social sentiment can help translate PR efforts into actionable data.
3. Embed PR in business planning
PR must feature in strategic planning meetings as an equal, alongside finance, marketing, and operations, to ensure it is in sync with business objectives and therefore inextricably linked with success.
4. Think long term
CEOs and CFOs need to accept that PR is usually the effect of long-term strategies. Reputation building, trust, and crisis prevention are all investments in future stability and growth for the company.
5. Report frequently
The PR teams should offer regular reports that connect their activities with business results. For example, a report showing the growth in website traffic, customer inquiries, or investor interest related to a PR campaign could support the value of the function.
It is only by aligning PR with business goals, using data to prove its value, and integrating it into corporate strategy that organizations can fully harness the power of PR. The question is no longer whether PR can deliver results but whether leaders are ready to leverage its power. The future belongs to companies that see PR not as an expense but as an investment in growth, resilience, and long-term success.