The Rule of PR and Their Impact on Arab Gulf Communities

Subject: Business Ethics
Pages: 5
Words: 1444
Reading time:
6 min
Study level: PhD

Executive summary

Public relations is increasingly growing in importance in the modern business environment due to the need for profitability and competitive advantage. Many organizations are engaging in public relations services whereby they advertise the organization to the media and the public. Public relations can transform the performance of an organization since it improves the public image of the company as well as advertising the company together with its products (Barth, & Wolff, 2009, p. 89).

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This research will highlight the importance of public relations to the banks in the Middle East and its importance to other organizations in the region. Moreover, the study will also discuss the importance of PR in shaping the perceptions of society towards the organization and its products.

Introduction

The business environment today is very competitive and there is a need for organizations to stand out from the rest of the competitors. The organization requires to possess something that will form its competitive advantage and improve the public image of the organization to the public and the media since the public forms the customer base of the company and the media are responsible for selling the product of the company. Public relations provide services to the organization by selling the organization and its product to the media and the public. The organization should use public relations to improve its public image because it results in increased marketing of the company together with its products hence translating into higher revenue for the organization.

Problem statement

The major objective of an organization is to maximize profit and minimize costs. For a company to realize its objectives, it must be able to market its products well to the public. Effective marketing involves public relations because the public relations specialists market the organization to the public and the media creating a good and positive public image of the company hence marketing the products of the company. Moreover, the effects are increased sales and higher revenue. Companies that do not engage in public relations in their management do not always realize their objectives because of the poor public image (Werther, & Chandler, 2006).

Significance of the study

This research is important because it will highlight the importance of public relations to the companies that operate in the Middle East. Public relations is about the marketing of the company and improving its public image while increasing sales. All those organizations that operate in the region will find this study important to the realization of the goals of their companies. Apart from the organizations, other groups of people that will find this study important are scholars who will be able to the extent of their study on public relations.

Research questions

  1. Does high-level management in Arab gulf companies use PR as a tool to improve the position of their companies or believe in PR strategy and include it in their organizational structure or missions?
  2. Dose participation in social responsibility has any effect on company products marketing or their profit.
  3. Is there any change in community attitude to companies that are active in their social responsibilities and those that do not?
  4. How the community is looking at national companies and what they are expecting from them? Moreover, is companies caring or having the concept of their social responsibilities?

Company profiles

Qatar National Bank

This is a leading provider of financial services in Qatar. The assets of the bank constitute about 40% of the total banking industry’s assets in the country. The services offered by the bank include accounts, credits cards, management of investments, mutual funds, and insurance. The network of the company comprises over 50 local branches and about 110 ATMs. This study will also focus on public relations in this bank while analyzing the impact of PR on the performance of the bank (Qatar, 2010).

Bahrain National Bank

As a local domestic bank, it was the first to establish in Bahrain in 1957. With a nationwide network, the bank has many branches in the country amounting to over 25 together with more than 45 ATMs and more branches of the bank being found in Abu Dhabi. Due to the many branches of the bank in the country and others outside, the bank is the largest in the country. This study will analyze public elations in this bank together with the impact of public relations on the performance of the bank (NBB, 2010).

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National Commercial Bank

This bank began in 1953 following a decree by the late King Abdul Aziz Al-Saud who converted the cash in a certain partnership company into the bank. This bank is the largest in assets in Saudi Arabia. This study also will analyze PR in this bank and also its impacts on the selling of the products of the bank in as well as the impacts of PR on the performance of the bank (NCB, 2010).

Literature review

Application of PR in organizations

Today’s business environment has become very competitive that organizations are required to be also very competitive. Thus, a company needs to determine its competitive advantage and work very hard to maintain its competitiveness over its competitors. Public relations provide services to an organization that improves the public image of an organization. According to Banerjee, (2007, p. 125), public elations apply to every organization that is in a competitive business.

Through public relations, an organization can improve its public image to the public and the media. Kotler, & Lee, (2005, p. 56) argues that by improving the image of the company to the public and the media, the company’s products will be easily sold since the public will be viewing the company from a positive perspective. Moreover, by using the media to improve the image of the company, the PR specialist will be advertising the company together with its products (Werther, & Chandler, 2006, p. 93).

PR specialists usually provide feedback to the company concerning the customer’s expectations thus enabling the organization to produce products that meet the customers’ expectations. Therefore, PR can enable a company to regain its full potential.

Impact of Social Responsibility on organization’s products

Corporate social responsibility refers to the ability of an organization to conduct certain programs that result in giving back to society. Organizations can use CSR to work and help society. There are many CSR programs that an organization can undertake to reach out to society. Some of the programs include those programs that help improve the environment like tree planting, environmental clean-up services, poverty eradication programs, sponsorship programs, etc.

The involvement of an organization in CSR helps an organization to market itself. Through the advice from PR specialists, an organization can involve itself in corporate social responsibility to the community thereby marketing itself and its products. Such type of market usually translates into improved performance of the organization because the customers who form the society will know the products of the company and will therefore purchase them more than those products from competitors that have not involved themselves in CSR (Kotler, & Lee, 2005, p. 63).

Community’s Attitude towards Organization’s Products About Social Responsibility

CSR is a form of marketing. Despite the organization involving itself in activities that help society, the organization will be marketing itself and its products to society. Moreover, the interaction that the organization makes with society will help it get the necessary feedback that will enable it to produce products that meet the customers’ expectations and therefore make them have a positive attitude towards the organization and its products (Banerjee, 2007, p. 130).

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Society’s perception of national organizations and expectations

According to Barth, & Wolff, (2009, p. 89), national organizations are those that have their effect felt nationwide. i.e. they sell their products nationwide. Such organizations are usually large and therefore command a large share of the market. The society of such organizations expects that they will always produce high-quality products as compared to other small and upcoming companies. Society places high expectations on national organizations in everything ranging from quality products to corporate social responsibility. By meeting society’s expectations, national organizations create a good reputation that translates into goodwill and increased profit.

Conclusions

The modern business environment is becoming very competitive especially with the modern advanced technology. It is important that an organization identifies its competitive advantage and exploits it fully. PR can help an organization identify its competitive advantage through the feedback and marketing that PR does to the organization. Corporate social responsibility is a form of advertisement that involves the involvement of an organization in community programs. CSR affects positively the organization’s performance. Therefore, an organization that involves itself in social responsibility creates a positive image for itself and its products.

References

Banerjee, S 2007, Corporate social responsibility: the good, the bad and the ugly, Edward Elgar Publishing, Gloucester, UK.

Barth, R & Wolff, F 2009, Corporate Social Responsibility in Europe: Rhetoric and Realities, Edward Elgar Publishing, Gloucester, UK.

Kotler, P & Lee, N 2005, Corporate Social Responsibility: Doing the most for your company and your cause, John Wiley and Sons, Hoboken, New Jersey.

NBB, 2010, National Bank of Bahrain. Web.

NCB, 2010, National Commercial Bank of Saudi Arabia. Web.

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Qatar, 2010, Qatar National Bank. Web.

Werther, W & Chandler, D 2006, Strategic corporate social responsibility: Stakeholder in a Global Environment, SAGE, Los angels.