How Public Relations Impact on a Company's Effectiveness

Abstract

The role of public relations is dealing with the identification of organization's strategic public and developing communications programs for building solid, open and trusting relations with them. Many companies have taken a limited view of the impact that public relations can have on company's overall effectiveness. This paper consists of two parts: the theoretical framework for the role of public relations in the overall effectiveness of the company and an empirical analysis based on the primary data collected. We classified and analyzed different public relations factors (i.e. factors related to managing and implementing public relations) that influences the effectiveness of the company. We explored the correlation between public relations and a company's effectiveness and argued that public relations factors play a critical role in that effectiveness. We used linear regression and we found a significant linier relationship between the independent variable (public relations) and the dependent variable (company effectiveness).

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