Understanding Public Relations Business Power
The case of Iran

Mehdi Bagherian
Member of Iran Public Relations Professionals Association Board of Directors
Kargozar Public Relations Institute Manager
Iran International PR Conferences Secretary General 2006

info@iranpr.org

Abstract

This paper deals with the principles for understanding public relations business power in Iran and will show that investment on public relations will have a very positive outcome.

         This paper tries to reveals the PR value to us on one hand and on the other hand it puts this fact on the sharp focus that today good performance is not the all thing but its presentation bears the same value and importance.

         This paper also deals with another value called “communication”. It confesses that today world is suffering the problem of “communication deep gap”. Paying attention to communication management and planning for its improvement in future is a most. As Betek Van Roler, Amsterdam University Professor, says “management future will grow in the gap between demand and supply for in case when there is no growth, there will be no future for the management itself.  

         Another issue pointed in this paper is communication programs nature based on the culture and local values. The programs having one sided nature fail. This is why the countries can not expand the effective ties without understanding bilateral communication programs, getting information, atmosphere control and bilateral understanding. The communications methods used today are inactive and their activation needs investment on some areas especially public relations.

         Revealing the importance and status of Iran business geography, this paper will show finally that public relations and the attempts made by the new public relations generation can play an important role in changing Iran into one of the world developed and major countries.   

Introduction

As we all know, public relations is not a newborn of the new age, and this very important tool has been used differently concurrent with economic, technical, rational and scientific development in the past. Because human beings had communicative needs in every stage of their life, and had followed up these needs through different channels and tools. There are different books, introducing different ways through which ancient human beings used to satisfy their communicative needs.

Means of communication in early stages were mostly face to face and personal. Of course their tools, methods, abilities, extent of effectiveness were very different from what we practice now.

The remained literature and inscription from different ages, stony bulletins, Hakhamanesh system’s actions and Greek philosophers, Senate members of Rom, speeches of roman kings and heads, all shows the importance of public opinion.

For example, there is archeological evidence that India's Emperor Asoka used rock and pillar edicts for such things as communicating the policies of his government to his subjects, persuading them to observe those policies, creating harmony among them, and propagating Buddhism, to which he had converted later in life. In the Arabian peninsula, a circular handwritten on crude paper around 2000 B.C. is known to have advised farmers of Babylonia on ways of increasing their crop yields. (See PR encyclopedia, 2005) a great part of speeches in Nahjolbalaghe, a book written by one of Muslims’ great leaders, Ali (may God’s blessing be upon him), "shows this great leader’s enlightening treatment of people and persuading them to think and judge properly about problems and supporting the righteous government." (history of PR, Mehdi Aghapour, 2004)

But the new meaning of public relations is a product of new age and is a source of crisis and social and political campaigns and also the survival of huge productive and business organizations from an economical perspective. On the one hand, people could not tolerate the unfair system of these organizations and on the other hand, economic entities, while understanding the importance of public opinion and their supports, took some actions which result in creation of public relations. These debates and involvements along with practical actions of organizations and nongovernmental motions succeed in the next years.

The same process has occurred in different regions and countries in different ways, and in some developing countries like Iran, due to lack of methods domination and one dimensionality of power structure, legal and professional debates and campaign have not been started yet or if they have been started in some areas limitedly, they have not been gone to a serious stage.

Existing evidences and studies show that the emergence of public relations in Iran is based upon commercial and economic changes, but its expansion necessitates action-oriented and reinforcing the potentials of political public relations, especially action and people-oriented motions.

The contrary exists too. Many governmental organizations use public relations as a political tools and for gaining false reputation and credit, and such actions diminish the reputation of public relations to a ceremonial or publicity profession and art. According to the researches don about dependence of public relations, the role of PR offices in Iran is to praise the managers of governmental and private organizations and PR practitioners are not able to play a role within a professional, ethical and occupational framework.

Asia, Public Relation in

Asia is the largest continent both in geographical size and in population. It is arguably the most complex region as well. Particularly in the past decade, Asian countries such as China and India have emerged as large and significant markers for multinational corporations. This process of cross-national trade in Asia continues to expand as evident during the ninth ASEAN summit that concluded in Bali, Indonesia, on October 8, 2003. At this summit, the 10-nation ASEAN (Association of South-East Asian Nations) signed mutual trade and security agreements with China, Japan, South Korea, and India. The goal is to create a huge Asian trading zone that will involve more than 60 percent of the world population. The creation of these new markets will continue to demand an increase in the level of public relations activity in the continent. (Sariramesh, PR encyclopedia, 2005).

In addition to this, Globalization has opened up the economies of a dozen or so Asian countries, resulting in a significant influx of multinational corporations into the region. A concomitant result has been the entry of leading multinational public relations agencies into Asia, resulting in an infusion of Western perspectives of public relations practice. Some observers have rightly commented that this development has led to an increase in the level of professionalism among public relations practitioners in the continent. However, it is also important to recognize that there has been no corresponding flow of information out of Asia that could help in the development of effective strategies for conducting public relations globally. It is reasonable to believe that a continent as rich as Asia, with its long heritage, has something useful to offer the public relations industry and pedagogy.

Most of the multinational  agencies operating in Asia have limited their operations to about 12 countries primarily based on demand and economy. As other Asian countries develop, there is bound to be significant growth in cross-national public relations activities in those regions as well. Multinational public relations agencies have typically used three strategies to establish their presence in Asia. Some have opened their own offices in Asian cities often under an executive from the home office while employing host country employees at lower levels. A second strategy has been to establish "exclusive representation" affiliations with well-established domestic agencies of the host country. Finally, these agencies also have bought partial or total equity in successful domestic agencies, while retaining a part of the original name and much of the local staff in recognition that retention of local staff is instrumental to success given the complexity of the Asian environment, which will be discussed presently. (Sariramesh, PR encyclopedia, 2005).

 Values and cultural elements in Asia

 Two important issues in the field of public relations should be considered in the vast continent of Asia:

1.          The viewpoint of media to public relations is negative in most Asian countries and this problem has been severed in some periods. But nowadays, due to more presence of trained PR practitioners in different fields especially media and creating close communication, this viewpoint has been balanced to some extent.

Of course this issue has another dimension and as it has been referred to in the PR cyclopedia too, public relations has a humiliating concept in Asia. Although due to proving its capabilities in recent years, this problem has been moderated in media and public opinion. For example, in 1978, the year of victory of revolution in Iran, the field of public relations was suspended, while it was considered an American field. Or some academics of communications do not consider public relations a system or knowledge. Of course this scientific claim as it is called, has never been unanswered.

2. Paying attention to different cultural elements and defining new and sensitive cultural methods as a principle is completely necessary and without considering these elements, the activities of PR companies in this area will definitely result in failure. Terence Fane-Saunders believes that effective public relations in Asia just like other areas, is not stereotype communications or trading communications. It is about creating and managing relationships between the organisation and each of its key publics. Of course, effective communications, verbal and non-verbal, are vital. But so too are PR strategies that understand the implications of corporate behaviour ; which recognise that it is corporate and personal actions which will have the greatest and most lasting impact on those relationships.

Communication also need to be framed within the context of an informed understanding of the cultural, religious, social and ethnic context of each community and public. The fact that a message may be coherent, well expressed and convincing, and that it has worked well in Asian market A, does not for one minute guarantee that it will work equally well in Asian market B. (Terence Fane-Saunders, international dimensions of public relations in Asia)

One of the dangers of international PR firms and PR networks is that they are often more multi-local, than multinational. In other words they will have capabilities in each market, but the executive working with the client may never have worked outside his home country. So, he or she may have little sense of the cultural variables from market to market. As a result, a request will go out to colleagues in each target market to handle the local aspect of an international assignment. But the "localizing" will often be no more than translation , when what was actually needed was a strategy planned from the outset to reflect varying markets and cultures. (Terence Fane-Saunders, international dimensions of public relations in Asia)

Prof. Games E. Grunig and his colleagues studied some surveys aimed at expanding a major principle to the global one: We developed a theory of generic principles and specific applications that falls midway between an ethnocentric theory (that public relations is the same everywhere) and a polycentric theory (that public relations is different everywhere). The theory holds that in a broad, abstract way, the Excellence principles can be applied in different cultures, economic systems, political systems, media systems, levels of development, and degrees of activist activity.

At the same time, evidence continues to mount supporting the usefulness of our theory of generic principles and specific applications. In addition to the research cited in L. Grunig, J. Grunig, and Dozier (2002), Rhee (2002) found support for the strategic management and symmetrical principles in the work of a sample of Korean practitioners. Hung (2002) and Chen (2005) found evidence for several of the principles in the work of multinational companies in China. Van Dyke (2005) found that NATO applied the principles in the public affairs work of its mission to Bosnia. Finally, Yun (2005) found similar priciples in the literature of public diplomacy and extracted the same Excellence factor from research on the public diplomacy efforts of 113 of the 169 embassies in Washington, D.C. that we extracted in the Excellence study and in our research in Slovenia.(James E. Grunig, 2006).

Prof. James E. Grunig continued to say that “Our research now is moving beyond confirmation of the utility of the generic principles of the Excellence theory.” Ni (2005) is studying how the relationship-building role of public relations contributes to the global strategies of multinational corporations. She has studied the management literature on global strategy to extend our understanding of the strategic role of public relations from national to global settings. Her research, in particular, will help us learn how different global strategies require different kinds of relationships with local employees. .(James E. Grunig, 2006).

The history of public relations in Iran

The word and modern version of public relations was experienced in Iran in 1954. Dr Hamid Notghi, the father of Iran public relations, introduced public relations to Iran by establishing a PR office in NIOC (National Iran Oil Company).

Although the activities of public relations were initially limited to the publicity, advertising and ceremonies, but nowadays the range of its activities have surrounded governmental and private organizations so that they use public relations for increasing their reputation and credit.

About the source and purpose of establishing public relations in Iran, just like many other countries, different reasons and viewpoint have been proposed. According to the studies of Dr. Mohammad Javad Nateghpour, assistant professor of sociology in Tehran University, Mirza Hossein Khan Sepahsalar, the intellectual chancellor of Naseredin Shah, replaced the word of peasant with public and in that way; the word of public relations was born in Iran. This story shows the political and social state of public relations in Iran. Social because using public instead of peasant is a clear manifestation of accepting the social rights of them in the society, especially considering the social security and welfare which were Sepahsalar’s main goals. This was exactly the philosophy and final target of west civilization since people were no more servants of king but the contrary was true. In other words, it was the end of Naseri’s autocratic system and the beginnings of new relations between public and government. (Nateghpour, 2005, page 109).

This theory which is known mostly as the political PR theory indicates that presenting ideas and establishing the structure of public relations which could be a liaison between public and government, needs enough knowledge, the technique of changing behavior and speech, (especially the government officials who are called servants and didn’t know or wanted anything except serving the king) and the art of communicating with people (although they were no more called peasant but public, they couldn’t believe it themselves and the king and his servants didn’t accept either). It was in this period of time that public relations was proposed in Mirza Hossein Khan’s bureau-at that time he was the minister and later became the chancellor- and was put in practice. This plan of Mirza Hossein Khan, like his other new and progressive plans such as tribunal doctor, today is called coroner, has been forgotten very soon, and the guilds whose profits were in danger, stopped the growth and development of it under different pretexts. But it became the beginnings of a way which was later paid attention to as the principle of new society and new government.

Therefore, while public relations was used in west by the emergence of new society and as a need and necessity of changing and growth of capitalism, this knowledge, technique and art has been put to use in Iran by the emergence of intellectual officials and as a tool for creating change in government and its structure in Iranian society. In other words, from the beginning, public relations, not in its modern term but in a simple form, was accompanied by growth, change and improvement.

By deposition of Sepahsalar from government management and then his mysterious death, the plans of new government were forgotten very quickly. Even the mashroute motion couldn’t make a big change in the structure of government. Although Reza Khan’s governance resulted in some developments in industry and governmental bureaucracy, he didn’t see his government in need of public relations. In that situation, public relations in the large scale of government was limited to the ceremonies and court. The lack of an ordered organization and dependable plans in production and business, have made the government needless of public relations. On the other hand, the progressive method of government, especially about the relation between public and government, made public relations meaningless. 

Business reforms in Iran during the second half of Mohammad Reza Pahlavi’s reign, pave the ground for emergence and efficiency of public relations.  The competence in business, especially selling the products, purchased from western manufacturers, accepting commercial representative for selling western products and also reformation in the body of government and the development of bureaucracy in Iran, paved the ground for a pondered on and technical public relations. Clarifying the function of government, the opportunistic competition of foreign businessmen and their internal representative and expansion of a seeming free economic competition, showed the lack of public relations more than before. In that period of time, public relations had become the expressive language of government and economic entities and its responsibility was to clarify and also exaggerate the function of these organizations. Therefore, public relations became a publicity agent for governmental and private organizations. The expansion of scope of services in country against agriculture and industry was the first step of service rendering public relations. Even industries used public relations for introducing the products to people and exploiting them. (Nateghpour, 2005, page 110)

Dr. Mahdi Mohsenian Rad, the author of " Iran in four communication systems", believes that public relations has been established in 1951 in Iran- the same year in which Parsons put forward his theory in Harvard university. He expressed the view that the establishment of public relations in Iran was a vain attempt for creating a phenomenon in a closed system, while it needed an open system. Part of public relations words is an incorrect heritage that has been formed in years. Even the steps of this public relations leaded to a close system.

“Iran and England Oil Com. was in search of cheap labor. This document belongs to that period of time, when it imported all its necessities except workers from abroad especially India. It imported its bricks from Iraq. The simplest issue of company was a hidden agenda and everyone, employees or not, was not only unaware but in complete ignorance. Even the Iranian stockholder agent was a foreigner. Therefore even the defender of Iran’ rights in the company was a foreigner. In such conditions, public relations becomes an advertising agent. The purpose of public relations is creating satisfaction inside and outside of organization and in public. Creating awareness is not at all its responsibility. The goal is not to train or increase awareness. Public relations should create satisfaction. And creating satisfaction needs a lot of work. When you are working in a closed system, you are not able to indicate dissatisfaction. Public relations can be healthy when the atmosphere of its activities- organizational or national- is open and be an open subset itself.” said a researcher of Iran and England Oil Com. (Quarterly of Kargozar PR, 2005, page 53)

Dr. Hosseinali Afkhami, academic member of Allame Tabatabai University who has researched about public relations training in Iran, considers the establishment of first PR office in NIOC, the base of practicing this field in Iran. Due to the establishment of first PR office in NIOC, the first PR training course, held as a training seminar in 1954 in Abadan and later in Kermanshah, could be registered by the name of this company. But the official academic PR training for undergraduate program started by the establishment of "Press and PR Higher Institute" (the former name of social communication sciences faculty) in 1967 in Tehran which enjoyed the scientific and managerial support of Keyhan Press Institute and financial support of NIOC.

After the universities were closed down in 1980, the PR undergraduate program, after 13 years and training 1117 graduates, ended in Iran. In 1985, a branch of social communications in the framework of social sciences, which contained only 3 unites of PR principles and the rest 35 unites were common lessens with communications and journalism restarted. After the establishment of social communication field, again in 1989, the PR branch with 20 specialty unites of PR and 40 common unites, along with journalism returned to the field of communications sciences. Till 2004 the same process continued.

Since 1989 the official PR training for bachelor’s degree, in addition to Allame Tabatabaii University, started in Azad Islamic University of Tehran and then four other cities. Also in recent years, Comprehensive scientific and applied university in Tehran and nine other cities started courses for associate of Arts and Bachelor of Arts degrees. These three centers, while following the same training program in applying the academic board, educational resources and relation with industry, have some differences with each other. Among the other developments in recent years, are establishing communications sciences in other universities such as culture and communications course in Emam Sadegh University, communications (journalism) in Tehran University, journalism in News faculty affiliate to Islamic Republic News Agency, graduates program of communications sciences in Allame Tabatabii, Tehran, Azad Islamic Universities and IRIB Faculty which reinforce the scientific and researching body of this field. In addition to the mentioned centers, Media Studies and Research Center has been offering a course for journalists and employees of PR offices for more than ten years. Ministry of culture and Islamic Guidance, Center of Governmental Managemet, Jahad Varsity of Tehran University and other governmental and privet organizations offer short time courses too. Annually 400 students for undergraduates program and about 1000 students for associate of arts and Poudemani are accepted in 15 higher educational centers for the major of public relations. The number of students majoring PR in the mentioned centers are about 5000 persons and the share of the most experienced university in this field (Tabatabaii) are just 200 students. (Afkhami, 2005, pages 137-138)

Apart from the purpose and cause of establishing public relations in Iran, after 55 years of its existence in this country, public relations is not comprehend properly in bureaucratic and governmental structures. Many managers when talking of public relations actually refer to its literal sense. They believe that the main responsibility of public relations is to obey the command of the highest rank in the organization and deceive public opinion. But the new generation thinks differently about public relations. They consider it the art of communicating with people to satisfy them and finally defend the remained justice which permit the other humans enjoy their humane and citizenship rights.

On the other hand, the emergence and development of information technology, especially the Internet was welcomed by PR practitioners. It could be referred to establishing specialty web logs (more than 20 cases), organizational web logs (more than 200 cases), developing of websites and the other existing facilities.

PR experts believe that in the age of information, public relations should be the first entity that access to the local, national and global communications network: "in the base of developing information technology in general terms and electronic government in particular, the state of public relations should be considered specifically. In this field, the opportunities, threats, weak and strong points of application of information technology and communications should be recognized from the aspect of public relations. This cognition results in using information technology by public relations as a tool and ….and pave the necessary technical, engineering and human resources ground toward the goals of their organizations." (Ali Akbar Jalali, 2005, page 94) 

Dr. Kazem Etemadnejad , the father of new communications of Iran, has another opinion. He believes that due to the developments of information societies and the freedom of information, the responsibility of public relations is doubled. Information goes toward to people and the right of access to information has been ratified in most countries. The draft of this plan has been prepared three years ago in Iran and in case of being ratified, the responsibility of public relations will increase. Therefore, public relations entities should be prepared for doing their new responsibilities in global level. (Motamednejad, 2004, pages 83-84)

Although there are many advantages for the Internet, but the disadvantages shouldn’t be ignored either. Richard Lining, a member of PR International Association board of directing, and former chief of Europe PR Confederation, mentioned some of these disadvantages in his article "the superhighway of confusing information". The main point he referred to is that anyone can enter false information to this network. The world of public relations should be aware of this fact that how simple false information can be put in this network.

He explained that since public relations paid attention to the need of clarification and considering public demand and discussion, the practitioners should play an important role in preventing the growth of this superhighway of confusing information. He reminds us that the dangers of Internet communications are …

1.Credibility and reliability of information

2.Assuring the unknown user that a secondary resource exists for that same information.

Lining continued that public relations should be competitive and by increasing their role in the Internet, preserve public’s demands for ever.

By virtue of the Internet, public relations is not a infrastructure for the world of information any more and has become a more useful tool.

Due to too much false information on the Internet, it functions as a flight platform for public relations to an idealistic and desirable point. It seems that people, getting familiar with public relations are a proof to the Internet information. (Richard Lining, the superhighway of confusing information).

However, Iran’s public relations faced many challenges and ups and downs and the new generation of public relations as vanguards of professional developments and improvement, took many proper actions for expanding this field. Holding several international conferences, international communicating, establishing private companies and institutes, publishing five specialty journal, offering training courses, holding specialty fairs and workshops, establishing the major of public relations for bachelor degree and associate of arts throughout the country for improving the special skills of employees, setting up specialty publications, establishing Cyber International Public Relations Association (CIPRA) and active presence in the Internet and the other actions show that Iran’s public relations are developing and of course for reaching its professional state, it should expand the campaign in other fields, especially governmental public relations which doesn’t have a proper state. Taking actions according to professional, ethical, occupational standards, international codes, and defense of existence philosophy of public relations which are people-oriented and customer-oriented method and defending the rights of citizens and active presence in international arenas, for expanding peace seeking idea with any race, belief and thought, are among the responsibilities of public relations. Therefore, there is no place for opportunists and idles in the field of public relations, and we should fight with them.

Investing in public relations

The International Monetary Fund announced in its annual report that in the third five yearly plan of Iran (between 2000-2005), the real growth of Iran’s Gross National Product (GNP) has been 5/5% averagely each year, the rate of unemployment is decreased, and due to high income of oil selling, macroeconomics indicators have been improved prominently. Increase of economic freedom and eliminating big obstacles in the way of business and investment, along the other economic reforms in 2000-2003, are among the effective elements in Iran’s proper economic functions in recent years.

In 2005, Iran’s economic growth was very high and the reason for this growth were the positive results of economic reforms, good and profitable conditions of oil market, and the government’s expanding financial and monetary policies.

It is mentioned in this report that privet sector plays an important role in the high economic growth and producing jobs. Therefore, decreasing legal and controlling obstacles in the way of private sector’s activities is necessary. Eliminating the competitive obstacles, facilitating the regulations of job market, eliminating the decreasing elements of exploiting and return of investment, and speeding and facilitating privatization, are the comments of the International  Monetary Fund to Iran in 2006.

Rapid elimination of foreign currency limits in financial payments and….are among the other economic needs of Iran and the International Monetary Fund has appreciated the commitment of Iran’s economics leaders to this issue.

Iran’s economics made a considerable improvement in increasing quality and clarifications in economics and financial information; identifying subsides in the government’s budget is one of these clarifications. However, for adequate and timely controlling of governmental sector’s activities, more actions should be taken. Therefore, developing an integrated balance sheet for governmental sector with the help of the International Monetary Fund is a current necessity for Iran’s economics. (The International Monetary Fund in its annual report about Iran’s economics, 2005)

Goldman such economic entity in a report announcing the future eleven economic power of the world, introduced Iran among these eleven countries.

According to this report, Iran is among the eleven new economic power of the world which has the capability to become one of the economic superpower.

Goldman such Institute announced these eleven countries the future economic superpower which would become stark competitors of the seven industrial countries.

In addition to Iran, Egypt, Bangladesh, Indonesia, South Korea, Mexico, Niger, Pakistan, Philippine, Turkey, and Vietnam are among the future economic superpower of the world.

Goldman such Institute, while comparing these eleven countries with seven industrial countries and also Brazil, Russia, India, and China, announced that these twenty two countries would have a hard competition for taking the world markets in the future.

In addition to the above mentioned issues, privatization is an important issue in Iran. The purpose of privatization are decreasing the financial burden of government, increasing economic competition and efficiency, increasing the return of investment, optimization of the country’s facilities and so on. Therefore a combination of government and private sector is a necessity of any economics system. The more Iran moves toward economic development, the role of government decrease and the role of private sector increase. (Moradi, 1984)

Absorbing investment and investing is a method for speeding Iran’s movement toward developments and job creation and can be used as a lever for development and economic growth. In addition to this, foreign investment results in reforms of managerial system, exchanging of economic experiences and applying new technologies. For accessing a share of the world great volume of investment transferring, so many efforts have been made in Iran and many obstacles have been removed, but Iran’s share of absorbing the world investment is still very small. (Abbasi, 2004)

On the other hand, in economic liberalization and globalization process, economic growth and development will not continue unless the countries succeed in expanding activities with higher and newer added value, and render services and products that reserve their states in the world market. In this case, direct foreign investment as an effective tool in international production, could play an important role in helping national institutions. Also, international economic mixing has offered some opportunities for specializing activities which increase global dependencies for investment and business developments. (Vakiloroaya & Danayi, 2004)

There are different reports and elements relevant to Iran’s economic power. Of course, referring to geographical positive points of Iran’s business doesn’t mean that we ignore week points and deficiencies. According to delivered information, it could be concluded that:

1.Iran with more than 70 million populations and a wonderful economic power, is an appropriate place for investment.

2.For estimating the extent of profitability of investment in Iran, the effect of public relations should be studied scientifically.

Statistics indicate that in recent years the cost of public relations has increased dramatically in the world. In America investing on public relations has reached 3.7 million $ in 2005. According to the predictions made by New York Investment Bank, the costs of public relations increase 9% annually.

The article "Public Relations Industry", published on Jan. 19th 2006 in Economic, evaluates the speed of increasing the cost of public relations before marketing and publicity. Marketing and publicity costs (475 milliard $ in present) increases 6.7% annually.

According to the studies made by the Job and Economic Research Center in Britain, public relations industry in this country has recruited 48,000 people. More than 80% of them corporation work for companies and other organizations within corporation.

Researches made by PRweek/Burson Institute indicates that most managers believe in the important and vital role of public relations and this statistic show a considerable growth considering the past years. This report is approved by Fortune Institute.

To show the value of public relations it is enough to mention that three administrations with commercial package possessing the world leading public relations company are based in UK and USA. They are: (1) Omni Cam with annual income of $ 9.75 Billion in 2004. it includes Flish Man Hillard, Kachom, Bortez Noli and Gavin Anderson companies; (2) W P P with the global income of $ 8 Billions in 2004. it includes Urson Marlster, Hill and Nilton, Ogli World Wide and J C I Group companies and (3) Anter Public Group including the world Public Relations Enterprises of Webrshnok and Golin Heris with annual income of $ 4.92 Millions. Public relation independence companies of Edlman World Wide, Rodr Fin Group and Wgrasterdom are the leading companies working in international level. (P R Week, 2005). 

Today, public relations leading companies linnets in the world are huge companies among which we can mention Siemens, Microsoft, Hitachi, Egxan, Mobile, General Motor, Tile Nol, American Express, Fires, Kraisler, Ford, Toyota, Yahoo, Dopan, Disney, Petrochenia, Boeing, Jaguar, Coca Cola, Pepsi Cola, Magdonal, Sony and Samsung. (Prof. Hamid Mowlana, 2006)

The result is that "today, public relations profession tries to show this fact that investment on public relations has positive output. For example, business research companies try to show that investment on marketing communication will lead to the goods sales or at least, in comparison to the expenditure spent on advertisement, will lead to more sales. Other practitioners try to show that public relations message has impact on some cognitive concept such as reputation, brand, image or nature making the organization values something beyond the tangible properties. (Prof. James E. Grunig, 2006).   

 What is the problem?

The problem is communication.

As Bill Nielsen, the former deputy of Johnson & Johnson Com. corporate communications, declared in his speech on Nov. 10th 2005, in Yale New York Club, nowadays, many citizens of developed countries have no knowledge about the outside world of their countries.

You hear all kinds of anecdotes about how confused people are about the role of The Pope and the United Nations. And, who are The Lost Boys of the Sudan, anyway? The very serious problems in Africa are not things we think about everyday, when we should (Nielsen, 2005)

United States made a global opinion poll and requested people to answer to this question: “could you please give your opinion truly about solving the problem of inadequate nutrition throughout the world?”

The result was a big failure:

-   People in Africa didn’t know the meaning of "nutrition".

-   People in East Europe didn’t know the meaning of "truly".

-   People in West Europe didn’t know the meaning of "inadequate".

-   People in China didn’t know the meaning of "opinion".

-   People in the Middle East didn’t know the meaning of "solve".

-   People in South America didn’t know the meaning of "please".

-   People in USA didn’t know the meaning of "the outside world". (Oren Arva, Management Image News Group/Yahoo, 2005)

A systemic problem is that there is very little news reporting from around the world that ever reaches the American public. Only major crisis events draw our attention, and even then, most of us can?t really visualize where in the world that event is.

Nilsson in his speech declared that: “And, the real problem in this is that most of the world knows how ignorant Americans are about world affairs. How can we ever expect to restore any level of trust abroad if we don?t make the effort to understand the issues of those whose favor we seek? This isn't a new problem, of course, but I think we could agree that there is some urgency to see ourselves as others see us, and to come to a better understanding of the world that surrounds us. And, that?s all about communications, isn?t it? And, shouldn?t this be an issue for PR?s global agenda for the future? I don?t have all the answers for how to do this. Certainly we ought to consider using our advertising dollars and muscle to support more news reporting from abroad, but what about our employees? Put your imagination to work and think about the impact we could have with a conscious effort to help build an understanding of the world we sell our products to among our employees? And by extension, their families. Fortune 500 companies employ how may Americans? Millions! Now there is potentially a huge middle ground of understanding!.” (Nielsen, 2005)

By creating some balanced models for structures, Young and James E. Grunig show that organization reputation is the result of the quality of its communication with its clients. This research show that organization reputation has its roots in the mentioned quality and general importance attached to reputation should be attached to relation as well. Public relations can help the managers by creating communication with the addresses and the manager can be promoted to the social responsibilities oriented decisions.

Grunig believes that relation is the most important intangible property and if we can show the fact that value oriented public relations can promote financial value, we can show the investment total output.

David Philips (2005), the UK prominent figure and practitioner in public relations has done some studies on the literature concerning intangible property. He reasons that relations is the most important intangible property. I think this procedure on investment will show the public relations value and encourage the public relations scientists to study intangible properties.       

For this reason, many foreign investors and companies have understood Iran’s role in profitability very well but till now showed little interest for investing in public relations, marketing and publicity. Iran’s economic power and the existing potentials, is exactly the element that distinguish the geography of Iran’s market. The increase of public welfare and attempting to improve it as much as possible and creating proper atmosphere for investment have made this importance even more distinguished. There are many reasons explaining why investment is so important in Iran and that how much could it be profitable. These reasons are as follows:

1.Existing economic potentials

2.Total increase in welfare

3.Iran’s tendency toward absorbing foreign investments and expanding international communications

4.Financial security for investment and economic activity in Iran

5.Ian’s exceptional and strategic situation due to resource endowment

6.Understanding the profitability of investment in Iran and the important face of the geography of market in Iran

7.A change in the quality of the geography of Iran’s market and tendency of this market toward foreign products, because of their higher quality

8.Increase of Iran’s positive image in the world and stabling that through scientific, social and economic interactions

9.Growing changes in distribution of income and the elevation of people’s expectation

Therefore it could be concluded that communicating and understanding this geography is extremely important and unreal news and analysis, not only give an unreal guide, but also couldn’t be a place for measuring and doing marketing and publicity. Iran’s business geography necessitates an exact assessment of economic, social and even political potentials, parameters and elements.

Conclusion

The state of public relations in Iran becomes more and more professional each day and for this reason, the domestic situation of public relations in Iran’s business geography differs greatly from those general PR organizations in the other parts of the world. Planning PR campaigns in this geography should be according to customers’ expectations and Iranian’s model based on culture and traditions.

Using professional images and elements plus qualitative services and products are extremely valued for Iranians and are important factors of family life standards. Paying attention to local traditions and social and cultural goals are very important and effective in public relations activities and is inseparable principle of international public relations. 

Establishing a social communications center through public relations activities aiming at "motivated marketing and motivation orientated" and purity of activities is extremely important. The experience of many successful companies of the world such as Panasonic, Sony, LG, Tefal, Bim, Black & Decker, Delongy, and many others in Iran, could be very useful.   

The products of Tefal have belonged to Iranian family and are cosidered inseparable utensils for each family. It means that we should first become familiar with Iran’s business geography by communicating which is done through public relations. Raising awareness should be done without any mental, political, or historical tenet and cultural and racial stereotyping. Then investing for creating a unique public relations model and method is necessary and unavoidable. Creating effective cultural symbols and images and then propagating that, is a great solution of public relations.

It is public relations that is important in Iran’s market geography and what do counts today is social awareness to public relations activities. In this situation, applying public relations in this geography play an important role because it could be used as a tool for identifying investing companies and responsible profitability.

Those who are interested in changes and making profit, need to understand Iran’s business geography and by having a good knowledge about it invest in this market. Today Iran’s market is a secure place for investing and maybe a place for intelligent investors to demonstrate their skills.

References:

 A.     Books and Articles

1.PR Encyclopedia, translated & edited by Mehdi Bagherian, Seyed Aziz Masoumi, and Hossein Ali Afkhami, Tehran, PR Kargozar publication.

2.James E. Grunig (2005), equipping the abstract structure, extensive researches on PR as a management strategic responsibilities, edited by Mehdi Bagherian, Tehran, KPRI Press.

3.Hamid Mowlana (2005), PR Modern principles, technices and skills, second Vol., Tehran, KPRI Press.

4.Mohsenian Rad, Mehdi (2005) Iran in four communications system, Tehran, Soroush publication.

5.Bagherian, Mehdi (2004), New principles, techniques and views of public relations, Tehran: PR Kargozar publication.

6.Afkhami, Hossein Ali, (2002) PR training, Tehran: The 8th Art quarterly, No. 27, pp. 59-70.

7.Butane Carl & Vincent Hazelton (1999) PR theories, translated by Alireza Dehghan, Tehran: Media Studies & Research Center.

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12.  Mohsenian Rad, Mehdi (2005), closed systems of public relations in Iran, Tehran: PR Kargozar quarterly. Page 53.

13.  Aghapour, Mehdi (2004), the concept of public relations, Tehran: Hemayat Newspaper, page 12.

14.  Fan Sanders, Trans (2004), the international dimensions of public relations in Asia, translated by Zahra Babazadegan, Tehran: abstract of the first International Conference on PR in Iran.

15.  Nilsson, Bill (2005), the character of public relations in 2005, New York: Yale Club.

16.  Mir Saeed Ghazi, Ali (2005), Theory and function in public relations, Tehran: Mobtakeran publication.

17.  Moradi, Behnam (1984), the dimensions of privatization and its effect on private investment ( Iran case study), Economic Political Information weekly, Tehran: Etelaat Institute publication.

18.  Abbasi, Ebrahim (2004), Absorbing foreign investors in Iran, Hamshahri Newspaper, Tehran: Hamshahri Institute publication.

19.  Vakiloroaya, Younes & Danayi, Abolfazl (2004), problems and obstacles in the way of foreign investment in Iran and appropriate solutions, Economic Political Information weekly, Tehran: Etelaat Institute publication.

20.  survey says ceos rely most on PR professionals for reputation management (Nov. 16, 2004)

B.     Websites:

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22.  http://www.awpagesociety.com/activities/remarks_speeches/nielsen.asp

23.  www.instituteforpr.com/pdf/Nielsen_Lecture.pdf

24.  http://www.chelgate.com/articles/prinasia.htm

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