8th INTERNATIONAL PUBLIC RELATIONS - Institute For Public Relations

1Ethics, Corporate Social Responsibility and Public Relations in Spain: An OverviewAlfredo ArceoDepartamento de ComunicaciónUniversidad Complutense de MadridMadrid, Spainaarceo@ccinf.ucm.esEthics can be defined as the standards governing the conduct of a person or the members of a profession.Many authors state that applied public relations-ethics can influence both the relationship betweenorganizations (public, private, political and others) and their publics, and the level of corporate socialresponsibility (CSR) thereof. At present, CSR is a burning issue, specifically in Spain, and by extensionin Europe.Thus, the purpose of this article is, on the one hand to demonstrate the relationship of publicrelations-ethics and CSR; and on the other hand the connection between CSR and a sustainabledevelopment in Spain (as additional element involved in creating a more ethical world). Yet, publicrelations-ethics is linked with the specific moral values of each culture. Besides, cultural industries (massmedia, music and books publishers, etc.) offer services and products in each country that influence thecultural and ethical values of the public opinion. How many elements must we take into account to create,maintain or modify the moral and ethical values of a target group? There are several ways of reachingthese goals. Public relations programs and campaigns are not the only approach, although their impact canbe measured in terms of images, attitudes and intention of behavior. However, the symmetrical model(Grunig, Grunig and Dozier, 2002: 306-382) is the ideal framework to integrate public relations-ethics.It is clear that ethics can only have come into existence when human beings started to reflect on thebest way to live. As stated in Encyclopaedia Britannica (2004), this reflective stage emerged long afterhuman societies had developed some kind of morality, usually in the form of customary standards of rightand wrong conduct. The process of reflection tended to arise from such customs, even if in the end it mayhave found them wanting. Accordingly, ethics began with the introduction of the first moral codes.Nonetheless, human behavior is not only influenced by moral codes and ethics. There are otherimportant elements associated to it: from a social point of view (social rules, cultural industries, societalculture, etc.), from a professional point of view (ethics codes, etc.) and from an organizational point ofview (corporate culture, etc.). According to Wilcox, Ault, Agee and Cameron (2000: 62), the publicrelations practitioners face the additional dilemma to decide strategies, tactics and activities for theirprograms and their campaigns in order to attain the following goals: Those of the publics. Those of the entrepreneurs. The objectives required by the professional ethics code of the organization. Their own moral values.My own approach is that the public relations concept (from a realist, constructive and interactionalperspective based in the philosophy of sciences; from a cognitive neo-behaviorist approach, based insocial psychology; and within the framework of the discipline sources and the most recent theories) issustained on five different pillars: communication; managerial function; two-way symmetrical model;relationship and corporate social responsibility. And thus, the professional and academics ethics in publicrelations are present in each of these five columns across the ethics codes proceeding from professional,academic associations, etc.ADECEC (Asociación de Empresas Consultoras en Relaciones Públicas y Comunicación), is theSpanish association of businesses devoted to public relations and communications consultancy. It is anon-profit making organization established in January 1991 by a group of professionals from Spain’smain public relations consultancies. ADECEC's core mission, in the capacity of sector representative, isto dignify the profession for its practitioners and to contribute to the growth in the practice of publicrelations in Spain. ADECEC offers us a code of professional standards along the same guidelines, i.e., the

2code of professional standards for the practice of public relations of the Public Relations Society ofAmerica.I agree with Todd Hunt and James Grunig (1994: 395) in that more than speaking about aprofessional standards code we should focus on ethical behaviour, because that motivates each publicrelations professional to behave in a manner that is fair to all and does damage to none. Summarizing, itstimulates them to perform in the two-way public relations symmetrical model sustained on the principlethat all parties work for the common and greatest good. On the other hand, we can mention the legalresponsibility about the material that public relations agencies and departments of the differentinstitutions can distribute. With this sort of material, public relations practitioners might breach any of thefollowing principles: defamation (libel and slander); copyright, releases, and permissions; privacy, rightsof employees; and financial disclosure and insider trading.In consequence, we can remember here the already old formula that has accomplished and stillattains such good results in public relations: to do it well and to let it be well known. This first part of theformula, to do it well, is associated with the ethical behaviour from a managerial point of view of theorganizations. And we might say: In this discipline it is perceived that major ethical behaviour seems toget better results in the middle and long term. Ethics and public relations are focused on the same goal:just to do it well.In 2000, James Grunig and Yi-Hu Huang wrote an article titled From Organizational Effectivenessto Relationship Indicators: Antecedents of Relationships, Public Relations Strategies, and RelationshipOutcomes (2000: 23-53) where I think we can find an excellence basis for using public relationsprogrammes and campaigns with more effectiveness. This authors state that when public relations helpthe organization to build relationships with strategies constituencies, the organization saves money byreducing the costs of litigation, regulation, legislation, pressure campaigns, boycotts, or lost revenue thatresult from bad relationships with publics –publics that become activist groups when relationships arebad. It also helps the organization make money by fostering relationships with donors, consumers,shareholders and legislators who are essential to support organizational goals. And specifically, two-waysymmetrical model help public relations practitioners to create, maintain, or modify a relationshipbetween the organizations and their publics in the higher terms of effectiveness. In other words, withopenness, with assurances of legitimacy, with participation in mutual networks, with sharing tasks(helping to solve problems of interest to the other party), with integrative negotiation in a crisis, withcooperation and collaboration, being unconditionally constructive, and knowing that both actors, theorganizations and the public, can benefit from the relationship. For this purpose, the highest level ofeffectiveness is the complementary behaviour.It's recommended to read the works of Broom, Casey and Ritchey (1997), Grunig and Huang (2000),Oliver (1990), Miller (1978), L. A. Grunig, Grunig and Ehling (1992), among others, to understand thetwo-way symmetrical relationship between objective and measurable values.Public relations and CSR in SpainIt is already a established fact that public relations are increasingly gaining weight and value in Spain.And as an element associated to the contemporary public relations, the corporate social responsibility isalso attaining more and more presence and consideration among the executives, leaders, entrepreneurs,etc., of the different organizations (private, public, political and others).Recently, El País (a Spanish newspaper), published a highlighted item of news: the socialresponsibility gains weight. 85% of the managerial and big investors think that it is a decisive aspect, inthe Sunday Business section (February 20th, 2005: 32). The same article mentions that, five years agoonly 44% of the interviewed, was attaching importance to topics such as ethics, good government orcorporate transparency.Nevertheless there is a wider array of examples in Spain. Thus, the same newspaper, in the SundayBusiness section (November 7th 2004, El País: 34), admits that at least 30% of the most advancedorganizations have a specific director for corporate social responsibility issues. Again, the samenewspaper, in an article signed by Ramon Jáuregui, spokesperson of the PSOE (Spanish Socialist Party)in the Constitutional Commission of the Congress, sustained that for a short period the internal life and

3the management of the companies belonged to the strictest field of the private area, even to the secretfield. But today, the activities of the companies are being monitored by multiple areas of interest: massmedia, non profit organizations, consumers, Government, environmental organizations, unions and evencompetitors, who scrutinize the international behavior of the companies, their respect to the human rightsand to the international rules of the International Labour Organization, their management of humanresources, their respect to ecological issues, the conditions of work of their suppliers and even theirrelationship with the Government.The new Spanish Government, led by José Luis Rodríguez Zapatero, has declared that the CorporateSocial Responsibility Law will be passed in 2006. But we cannot forget that the progress that is perceivedin Spain as far as this issue is concerned, is a direct consequence of the European Union regulations onthis matter.In July 2001, the European Commission published Promoting a European Framework for CorporateSocial Responsibility. Green Paper. The aims of this document were, firstly, launching a debate about theconcept of corporate social responsibility and, secondly, identifying how to build a partnership for thedevelopment of a European framework for the promotion of CSR.According to the European Commission (2001), CSR can contribute to achieve the strategic goal ofbecoming, by 2010, “the most competitive and dynamic knowledge-based economy in the world, capableof sustainable economic growth with more and better jobs and greater social cohesion" adopted by theLisbon Summit of March 2000, and to the European Strategy for Sustainable Development.In 2003, the European Commission approved the creation of a European Multi Stakeholder Forum onCorporate Social Responsibility with the endeavor of promoting CSR through raising the level ofunderstanding of CSR, and fostering a dialogue between the business community, trade unions, civilsociety organizations and other stakeholders. And in June 2004, the first results were disclosed to theEuropean Union countries: Reaffirmation of international and European principles, standards and conventions. Analysis of CSR determining factors (drivers, obstacles and critical success factors). Future initiatives and recommendations.As far as recommendations are concerned, we should emphasize the following items:A) Raising awareness and improving knowledge on CSR:1. Raising awareness of core values and key principles embodied in reference texts.2. Collecting, exchanging and disseminating information about CSR.3. Researching and improving knowledge about and action on CSRB) Developing the capacities and competences to help mainstream CSR:1. Enhancing the capacity of business to understand an integrate CSR.2. Building the capacity of “capacity builders”.3. Including CSR in education and the curriculum.C) Ensuring an enabling environment for CSR.1. Creating the right conditions for CSR.2. Developing stakeholder dialogue.3. The role of public authorities / EU.However, in this context we should add that the social responsibility does not equal to philanthropy. Iagree with Santiago Pozas (2004: 229), professor at the UPV in Spain, with the idea that the closestapproximation to the relation between philanthropy and social responsibility is described in Carroll’sdefinition (1999: 37), who shapes a concept of social corporate responsibility composed by four stadiumsarranged pyramid-like: the economic responsibilities (at the base of the pyramid; and therefore theessential ones to bear in mind in the first instance); the legal responsibilities (to obey the law; the law is acode of the society of the good and of the evil); the ethical responsibilities (obligation to do what iscorrect, just and good; to avoid the damage) and the philanthropic responsibilities (to contribute to theimprovement of life of the community with resources). In this way, the social corporate responsibilitywould be the result of assuming economic, legal, ethical responsibilities and also philanthropic activities.

4CSR, sustainable development and public relationsIt should be pointed point out now that there are many authors working on the concept of reputation,which is directly linked to the stakeholders of the organizations. Michel Morley postulates (2002:10) thatcorporate reputation is based on how the company conducts -or is perceived as conducting- its business.According to Morley, a constellation of elements contributes to this reputation: crisis and issuesmanagement; media relations; sponsorship; investor relations; community relations; employee relations;philanthropy and public affairs. These provide a structural character to the organizations with theirstrategic stakeholders.Hunt and Grunig (1994: 14-15) have indicated long since that the expressions stakeholder and publicare often used as synonymous. And there is a substantial difference between them that will help us tobetter the understanding of strategic planning of public relations. People are called stakeholders whenthey fall within the category of those affected by the decisions of an organization, or because theirs havean impact on the organization. Many people within the category of stakeholders (such as employees) arepassive. Furthermore, these passive stakeholders can be further characterized as latent public. However,there is another stakeholders type, the active public.For Archie B. Carroll (1989: 57) a stakeholder is an individual or group of individuals who can affector be affected by the actions, decisions, procedures, practices or goals of an organization. As a result,Grunig and Hunt advise that when public relations managers develop programs for stakeholders, theyshould perform a segmentation of every category of stakeholder subdividing it in active and passiveelements. Public relations strategies will help institutions create, maintain or modify the relationship withtheir publics.In consequence, the sustainable development is yet another component of the CSR and an added workarea also for public relations. The sustainable development concerns the economic, legal, ethic andphilanthropy responsibilities of the organizations. In other words, the sustainable development affectspublic relations programs and campaigns via the corporate social responsibility of the institutions. TheSpanish Government has been working for quite some time to achieve a sustainable development asconsequence of the European Union regulations on this issue. Consequently, sustainable developmentought to be understood as the sum of many aspects: (United Nations, November 9th 2004): Economic aspects: international cooperation; trade; changing consumption patterns; financing;technology; industry; transport and sustainable tourism. Natural resources aspects: agriculture; atmosphere; biodiversity; desertification and drought;energy; forests; freshwater; land management; mountains, oceans and coastal areas; toxicchemicals, and waste and hazardous materials. Institutional aspects: integrated decision making; major groups; science; information, andinternational law. Social aspects: poverty; demographics; health; education, and human settlements.Public relations agencies and the public relations departments of the different institutions (private,public, political, and other) in Spain are launching programs and public relations campaigns in order tooperate in all those aspects and reach more and more CSR attributes. Because Europe, and by extensionSpain are pursuing social quality in their management.Lately, in Europe you can find new perspectives as a perfect complement for management theorywith repercussions in areas such as marketing, advertising, public relations, and the like. Social quality isa concept mentioned everywhere and so are notions like watch-consumer or total quality management.The total quality management takes its roots from the European Excellence Model of the EuropeanFoundation for Quality Management with their ISO 9000.I agree with Toni Muzi Falconi (2002: 12) statement that this intense corporate social responsibilityfad which is pervading our profession, our employer/clients, our research and education communities inevery developed country, is certainly welcome because it adds value to our day to day activities and, moreso, because it raises in ourselves, as well as in our stakeholders, the fundamental consciousness of theinextricable liaison between organizational behaviour an a sustainable concept of public relations, as itbecomes increasingly clear that we communicate behaviours and not manipulate expectations.

5Krishnamurthy Sriramesh comment

8th INTERNATIONAL PUBLIC RELATIONS RESEARCH CONFERENCE PROCEEDINGS The Impact of PR in Creating a More Ethical World: Why Can't We All Get Along? Best Western South Miami . Describing the Strategic and Performance Management of the Public Relations/Communication (PR/C) Department in the Context of the Strategic .