Leading the PR Function Concepts and Vocabulary Flashcards
Key vocabulary related to business and business management
This type of organization makes money for shareholders or owners
For profit
This type of organization doesn’t do business to make a profit for owners. Surplus income is used to expand the organization or support its mission
Nonprofit
This type of organization may generate revenue surpluses but is not designed to earn money for owners or members. Surplus revenue is generally used to carry out operations (and may be returned to member/owners if fiscal reserves become large enough)
Not-for-profit
For publicly traded companies, this report provides a comprehensive overview of a company
SEC Form 10-K (annual report)
For publicly traded companies, this report is filed quarterly and contains unaudited financial data
10-Q (quarterly report)
For publicly traded companies, this report is for unscheduled material or corporate events of importance to shareholders or the SEC. Good indicator for determining any significant problems (litigation for example). Provides current information about a corporation so investors can make informed buying decisions.
SEC Form 8-K (current report)
For publicly traded companies, this filing is produced for the benefit of shareholders before an Annual Meeting of Shareholders so they can make informed decisions about matters to be discussed at the meeting
Proxy statement (also called Form Def 14A)
Activity that ruins competition (illegal). Violations could include overselling wording in news releases announcing acquisitions and divestitures.
Anti-trust
Requires lobbyists to register with the clerk of the US House of Representatives or the secretary of the Senate between the 1st and 10th day of each quarter. Must name publications in which the lobbyist has had content published
Federal Lobbying Act 1913
These laws prevent organizations from contributing to any political campaign or candidate and prohibit any candidate from accepting such contributions
Federal Corrupt Practices Act of 1925, Hatch Act of 1929, Taft-Hartley Act of 1947
Changed the rules by which corporations, unions and other organizations can contribute to political causes
2010 Citizens United
Requires public relations professionals who represent a foreign government to register with the US State Department
Registration of Foreign Agents Act of 1938
Requires all publicly traded companies to disclose material information to all investors at the same time, which includes any news that could influence a reasonable investor’s decision to buy or sell stock
Regulation Fair Disclosure (August 2000)
Requires public companies to evaluate and disclose the effectiveness of internal financial reporting controls, accelerated insider trading reports and blackout periods. Requires CEO and CFO to sign certificates that say they have read and understood everything in company reports and the reports are complete and accurate.
Sarbanes-Oxley Act (2002)
Enacted following the 1929 stock market crash. Contain checks and balances for securities-related actions.
Securities Act of 1933 and Security Exchange Act of 1934
The embargo of publicity materials during a specific timeframe, called the [XXXX], because the materials could be construed as efforts to sell new securities. This rule is in effect from the date a corporation officially registers its intent to offer a security to 90 days after the registration statement becomes effective
Rule 5c of the Security Act of 1933
[XXXX = gag period]
Mandates disclosure. This law requires filing specific information with the SEC to make that material public.
The Security Act of 1934
An organization has the legal responsibility to ensure the information it releases is both accurate and complete.
Rule 10 b-5 of SEC 1934
Covers solicitation of proxies from shareholders between when a corporation sends an official statement about a vote and the annual meeting where the proxy voting occurs.
Section 14 of the Act of 1934
The interval between when a company registers a public offering of securities (stocks or bonds) with the SEC and the time the SEC declares the registration effective. Information that might affect the stock price or be perceived as “front-running” the stock offering.
Quiet Period
Voluntary retirement plans for employees of for-profit businesses
401k retirement plan
Voluntary retirement plans for employees of public/not-for-profit organizations
403b retirement plan
Retirement plan that allows employees to choose from different types of benefits, usually through a salary reduction agreement..
Cafeteria benefit plan
Retirement plan that promises employees a specific monthly benefit, usually not requiring employee contributions in the private sector, though employee contributions are required in the public sector.
Defined benefit plan
Retirement plan creates an individual account for each employee, determined by the amount the employee contributes to each account and income, expenses, gains and losses in the overall plan.
Defined-contribution plan
Provide income after retirement or disability
Pension plan
Allows workers who meet certain criteria to save for retirement. Investments are made after paying income taxes so earnings are tax-free upon withdrawal.
Roth retirement plan
Budgets reinforce PR Plans by (3 concepts)
- listing staff costs and workloads
- specifying financial metrics for tracking contractor performance
- establishing accountability for each expense
Four basic methods corporations use to determine PR budgets:
- overall money available for operations (PR is allocated a percentage of total budget)
- Competitive necessity (matching competition)
- Specific goals or tasks receive allocations
- Excess money after expenses
Report that shows assets, liabilities and capital of a business on a specific date
Balance Sheet
Income statement that shows the profitability of a business over a specified time, including gross income, revenues, expenses and net income. Also known as a profit/loss or P&L statement.
Income statement
All publicly traded companies must file these. This report shows how changes in balance sheet accounts and income over a specified reporting period affect cash flow.
Statement of cash flow
This role is limited to product and profit-producing functions affecting the bottom line.
Line management function
This role provides advice and counsel to those in line management positions.
Staff management function
The components of a SWOT analysis
- Strengths - attributes helpful to achieving the goal
- Weaknesses - attributes harmful to achieving the goal
- Opportunities - helpful external conditions
- Threats - harmful external conditions
To analyze a particular problem by thinking through the reasons a problem exists
Cause and effect diagrams
Production of a visual image of a problem by breaking the problem into progressively smaller parts
Drill-down technique
Assess where power and weaknesses lie and assume that five important forces affect competition: supplier power, buyer power, competitive rivalry, threat of substitution and threat of new entry
Porter’s Five Forces
Core management determining the corporate vision, identity, corporate culture
Dominant coalition
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