Knowledge Centre:
News Digests

Stay abreast of what’s happening internationally with developments in corporate public affairs. Here is news that you may find useful and interesting:

Building reputational intelligence ND

William G. Margaritis, Bloomberg Businessweek, 23 November 2010

The key to building reputational intelligence is to identify your company’s vulnerabilities, and to engage in strategic planning by building an authentic culture and making your organisation’s values known to the public, a role that is best managed by the chief communications officer. Although this will not mean that your company avoids crises, it will however mean that your organisation is more likely to get the benefit of the doubt when a crisis occurs. Some strategies for fostering leadership and communication include ensuring that there are constant risk assessments carried out at every level of the organisation, and ensuring that the chief communications officer has a strong strategic understanding of the business. For more information see

Improving corporate community involvement through a human rights based approachND

Michelle Brown, CSR Asia, 17 November 2010

Community involvement focuses on the way in which a company interacts and contributes to the long-term prosperity of communities, rather than the charitable operations that a company engages with. Social responsibility involves social investment in key areas such as education and skills development programmes, and according to the ISO 26000 guidelines is defined by the core principles of accountability, ethical behaviour, transparency, respect for the rule of law, respect for international norms and behaviours and respect for human rights. While there are a number of problems with corporate community involvement in Asia, a human-rights approach to community involvement facilitates long-term and sustainable value creation. For more information see

Increasing costs worry business managersND

Yang Ning, China Daily, 16 November 2010

A survey conducted by the China Entrepreneurs Survey System has revealed that about 75 per cent of Chinese entrepreneurs consider the rising price of labour and raw materials as their biggest challenge. Other concerns raised in the survey include the heavy burden of tax, social security and financial strains, as well as an overall lack of talent. The survey also demonstrated that most entrepreneurs are cautiously optimistic about the nation’s future economic trend, with some consequently recognising the need to upgrade industries and invest more in innovation. For more information see

Damage control tips and tricks for QantasND

M. Mcnamara, Business Review Australia, 15 November 2010

Qantas’ recent air troubles have illustrated the need for strong public relations techniques in the face of crises so as to preserve the brand. Firstly, it is important for a company to post news releases on their website that update the public of the situation and correct any false statements. Additionally, companies need to communicate openly with the media, as well as issuing internal statements to their employees so that they can also engage in damage control. Focusing on the company’s strengths in the face of the crisis is also a useful technique, as is using multiple channels to communicate with the public, such as YouTube and Facebook. Depending on how a company deals with a crisis, it can provide an opportunity to define and strengthen the brand name. For more information see

Tools to help companies manage their social mediaND

Tanzina Vega, The New York Times, 14 November 2010

Companies are increasingly harnessing the potential of social media, but are realising that the inability to control their online presence can raise significant problems. Accordingly, software companies are developing new technologies that help companies to manage their social media presence, by archiving business communications or managing individual employees’ posts on social networking sites. This technology is useful for companies both in terms of protecting themselves in the event of future lawsuits as well as to ensure regulatory compliance in some industries. For more information see

Leadership skills for driving innovationND

John Ryan, BusinessWeek, 12 November 2010

A recent IBM survey of global CEOs found that creativity and the ability to nurture it is the most important leadership skill for the future. This article suggests how leaders can foster innovation within their own companies. First, they have to commit the fundamental resources of people, time, money, and intellectual property. Second, intelligent risk-taking is a second and absolutely necessary key for spurring innovation. Third, they need to complement business thinking with innovative thinking, which imagines a desired future state and figures out how to get there. Finally, beyond establishing the right structures, leaders need to nurture and reward innovation in talented individuals at every level of the organisation. For more information see

Management dilemma: The rule of 98/2ND

Harold L. Sirkin, Bloomberg Businessweek, 12 November 2010

Devising management policies is a difficult process, with leaders faced with the issue of whether to direct their policies at the 2 per cent of employees that are unreliable and unproductive, or to focus their policies on the 98 per cent of employees that are reliable, positive assets to the company. In the end, it is better to focus on devising policies to focus on the productive 98 per cent of employees as this fosters a happier, more productive workplace and consequently minimises the number of unreliable employees. Instead of implementing unnecessary rules and restrictions that lower employee morale, it is ultimately more profitable to treat employees as partners, hence earning their respect and cooperation. For more information see

Getting your employees on the social media bandwagonND

Kirsten Watson, Business Week, 10 November 2010

For companies who wish to increase or build their social media initiatives, the most common source used are internal staff. Surveys have shown that employee buy-in is vital to ensure success of the initiatives. Holding brainstorming sessions can foster ideas for content and employee participation. Management should be aware of ‘champions’ that actively encourage and promote social media usage. These employees and others should feel valued for their contributions and employee visibility online will motivate engagement with social media. For more information see

Rare earth conflicts to continueND

Jianjun Tu, Asia Times Online, 10 November 2010

The term ‘rare earths’ refers to several strategically important commodities that are used to manufacture defence and commercially high value-added applications. Currently, China, the worlds’ leading rare earths producer, has been tightening export restrictions particularly on rare earth oxide, with China’s stockpile representing 97 per cent of the world’s total supply of rare earth oxide. If China is able to meet its planned export restrictions, it will further its competitive advantage over other suppliers; with the ultimate aim of exhausting all external stockpiles of rare earth oxide. In the long term, China’s monopoly over rare earths will not only result in increased prices, but also provides a valued political bargaining chip for the country. For more information see

PepsiCo and GE are innovating IndiaND

Navi Radjou and Jaideep Prabhu, Bloomberg Businessweek, 9 November 2010

Although multinationals traditionally use emerging markets to source new products and services, some companies like PepsiCo and General Electric are using emerging markets to try out disruptive business models. PepsiCo, for example, is developing partnerships in India with universities and other companies to develop eco-friendly technology as well as a range of health products, thus expanding its market. Similarly, General Electric developed partner networks in India to introduce its technology-based solutions to healthcare, which it provides to Indian hospitals at a sustainable and affordable rate. Emerging markets are described as ‘learning labs’, allowing companies to develop and deliver innovative products. For more information see

After decades of war, Sri Lanka bounces backND

Frederik Balfour, Bloomberg Businessweek, 4 November 2010

Sri Lanka is poised for economic growth following the end of the civil war, with the Asian Development Bank expecting the nation’s economy to grow as much as 8 per cent this year and next. The Sri Lankan government expects tourism, IT outsourcing and agricultural exports to be the three sectors that will fuel economic growth, reducing reliance on the garment industry and low-end manufacturing. While Sri Lanka is experiencing renewed foreign investment, these investments are happening slowly, with many raising concerns about corruption and the nation’s human rights track record. For more information see

Corporate India finds greener pastures — in Africa ND

Mehul Srivastava and Subramaniam Sharma, Bloomsberg Businessweek, 4 November 2010

In the midst of increasing competition, growth and a shortage of access to land, Indian companies are directing their sight towards Africa for investment and growth. For many Indian companies, Africa represents India as it was 15 years ago, allowing low-cost, high-efficiency business models as well as providing companies with a new consumer market. As such, companies are spending huge amounts in Africa, with the continent attracting large Indian companies such as Airtel, as well as other Indian companies who are making various smaller acquisitions. For more information see

Sector still faces threat of regulationND

Vesna Poljak, Australian Financial Review, 4 November 2010

An increase in banking profits for the recent financial year has reduced investor pressure, yet not regulation pressure on the sector. The new government regulation could force Australian banks to adopt new credit and liquidity standards. The regulation will depend on new international standards adopted by the Basel committee. It is undeniable that the regulatory changes will sweep through all aspects of the business. The banks’ future growth and competitive advantage will depend on how they respond to the new regulations. For more information see

Be wary of web smear publicity, firms toldND

Lian Mo, China Daily, 3 November 2010

An emerging trend of online smear campaigns is strengthening in China, with negative online publicity posing a serious threat to business, and affecting even major corporations. The smear campaigns can result in heavy financial losses for its victims and is widespread, with an e-PR company estimating that 10-20 per cent of their clients have receive malicious content each year. The prominence of online smear campaigns has lead to an emerging business, in which public relations companies are hired to polish the online image of their employer, as well as deleting any unfavourable comments. For more information see

Malaysian Budget 2011: some green trends to get you startedND

Jayanthi Naidu Desan, CSR Asia, 3 November 2010

The 2011 Malaysian Budget is underpinned by a green development strategy that the government believes is key in driving competitiveness. The budget provides for a number of green incentives, including tax breaks and soft loans, and aims to inspire CEOs by framing green development as a ‘win- win’. Four trends are identified to assist a company in becoming green: investing in green innovation, providing related information on products such as energy usage and the carbon footprint, the need to provide green products without an associated premium, and the usefulness of adopting green living in everyday life. For more information see

China fuels: The plug-in planND

The Economist, 2 November 2010

With the release of its latest Five-Year Plan, the focus of China’s government is clearly on developing a low-carbon economy. China arguably already leads the world when it comes to several areas of green energy, such as wind power and solar water heaters. It looks as if the electric vehicle market could be next. In 2009, China overtook the US to become the largest global market for wind power, housing nearly one-third of the world’s total installed capacity. China has targeted the sale of 1 million ‘clean energy’ cars by 2015. While ‘clean energy’ encompasses a wide range of technologies, Chinese authorities are focussing on electric vehicles. The government has been promoting these technologies through subsidies and trial recharging points (but only to domestically produced vehicle models). For more information see

Five secrets of charismatic leadershipND

Nick Tasler, Bloomberg Businessweek, 2 November 2010

Recent research has demonstrated that a more reserved, introverted style of leadership may be more beneficial for employees than an extroverted style, as introverted leaders are more likely to engage in team approaches to solving issues. Charismatic leadership is still however useful in engaging employees, especially when the employees are more reserved. Five means of increasing charisma are outlined, these being; ensure the subject matter of your speech is interesting, describe positive outcomes, recognise that the path to achieving these outcomes may be difficult, outline the actions necessary to achieve outcomes and use positive emotional language. For more information see

NZ wine first in world to come with carbon footprint labelND

Rebecca Smithers, The Guardian, 2 November 2010

Wine consumers will soon be able to assess the environmental impact of a New Zealand wine brand. The labels will display carbon emissions for the making and transporting of products tailored to individual export markets. The particular brand has been pursuing sustainable management within the New Zealand wine industry for a long time. Price continues to be the dominant factor, whereas ethics and environment are lower priorities. By choosing products that carry the labels, consumers are supporting companies that are working towards a more sustainable future. For more information see

China’s economic tightropeND

Jonathan Fenby, BBC News, 1 November 2010

China’s original economic model based on ‘cheap labour, cheap capital and a benign export market’ is no longer sufficient to ensure continued economic growth and a strong international presence. The Five Year Plan starting in 2011 hence proposes new economic strategies, including increasing energy efficiency, ensuring an equal distribution of wealth, boosting domestic consumption and developing more environmentally friendly equipment. The Plan also proposes social reforms; including developing an effective health service and improving education and pension provisions. While these proposals reflect a shift in economic policy, they are unlikely to result in a fundamental economic structural change; which may potentially be damaging to China’s economic future. For more information see

Consumers at the wheel of IT strategy developmentND

Michael Bayer, Financial Times, 1 November 2010

Consumer-driven demands, the emergence of new cultural attitudes to work and advances in mobility-enabling technologies have allowed consumers to directly influence IT strategy development. Technology companies are increasingly recognising the dynamics that connect business and the consumer, and are harnessing this dynamic as a business opportunity by framing their products as ‘business productivity tools’, for example the iPad. Companies that recognise this dynamic and take advantage of the connection between business and the consumer will experience positive benefits. For more information see

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