Corporate Public Affairs

The Development of Public Affairs

Modern-day public affairs activities and organization can trace its roots back to three streams of development starting in the 1920s. These three areas—corporate philanthropy, urban and community affairs, and public relations—each contained elements of what was to emerge as today's public affairs department. Corporate philanthropy (financial contributions to not-for-profit and other socially oriented organizations) arose out of stormy relationships between and among businesses, governments, and society. In many ways the interest in philanthropy arose out of prior corporate excesses and this was the response to those poor behaviors. Although this was meant to demonstrate “corporate” charity, it too has become embroiled in controversy (most notably in charges by shareholders that this is not what they want done with their monies and by external groups who today see this as a skeptical and cynical approach to influence external actors to the corporation).

As urbanization occurred worldwide, with ever more numerous cities of ever larger size, unique problems arose (racial strife and tensions, slums, education, etc.), and the focus of organizations shifted to what was termed urban affairs. Although this could also be considered philanthropy, it was not focused solely on giving of funds for broad general purposes but the giving of funds, talents, and organizing skills to improve urban life. It should be noted that both corporate philanthropy and urban affairs activities were often pursued for self-interest motives by the organizations involved.

The final “root” of public affairs lies in public relations as corporate philanthropy and urban affairs were not sufficiently broad enough in focus for the organization and the increasingly complex environment it found itself embedded in. Originally, public relations were focused on struggles the organization had with regulatory agencies, politicians, and leaders of organized labor. Although this was a more thoughtful advance on the organization's relationship with the larger environment, it was limited in its role and impact. Many viewed public relations as the organization's attempt to spin an issue or problem after the fact. That is, public relations was not about preparedness and foresight but instead was focused on damage control once an issue, problem, or situation achieved visibility. It was recognized that public relations, corporate philanthropy, and urban affairs were simply not enough for the modern-day organization in dealing with a growing variety and sophistication of external actors all demanding that the organization respond to them and their issues and concerns.

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