TO be a compleat and successful public relations (PR) professional, it is important—in fact, essential—that one knows at least basic economics, both on a macroscale and microscale.
On the macro side, one must be familiar with accepted economic principles, such as the law of supply and demand, investment and development; monopoly and competition; international trade and the principle of economic advantage; money circulation and inflation; banking and interest rates; stock markets and dividends; and the like.
There is a story told—probably apocryphal—about a past president of the country who asked his economic advisers why the price of a basic commodity—rice or some other —was rising. When the advisers told him that this was due to the law of supply and demand, the president asked them to have the law repealed by Congress.
On the micro side, a PR professional should be familiar with the different kinds of businesses (single proprietorship, partnerships and corporations), basic accounting and how to interpret a balance sheet, gross profits as against net profits, rate of return on investment (ROI), achieving cost efficiency, and so on and so forth.
Why knowledge of economics is important
WHY is there a need for those in the PR profession to be knowledgeable and conversant about Economics if they want to succeed? First, because the main area in which they operate is in business and industry. They would be better at advising the companies they are working for, if they know and understand the issues and concerns their clients are faced with and need to address.
Second, economics is a science. It is often referred to as the “dismal science” because of the rigorous and tedious research work it involves. It requires of its practitioners gathering data and statistics on which to base their conclusions and recommendations. This teaches those aspiring for PR careers to do the research necessary to be sure that the messages they convey to the public are truthful and factual.
Third, the really good professionals may eventually want to put up their own agencies or side businesses whether related or unrelated to PR. If and when they do so, their knowledge of economics and business and how to run a cost-efficient operation should come in handy.
How to learn economics
GAINING knowledge of economics can be achieved ideally early on by taking it as one of the subjects taught in school. It would be even better if one had Economics or Business Management as his degree course in college.
In fact, if one is already a good writer and wants to pursue a career in PR, where writing ability is a sine qua non, I believe it would be advisable for him or her to major in the two above-mentioned courses rather than in Journalism, Literature or Mass Communications.
Another way is if, before going into PR, one would have first been a business editor or reporter with a major publication. The constant exposure to the business world and writing articles on the news and trends therein would be like taking a “crash course” or “on-the- job” training in economics.
And if one gets to be an expert on certain specific sectors like banking, pharmaceuticals or information and communications technology (ICT), then there is a strong likelihood that he or she would be recruited by one of the companies he or she covers to become its top PR officer.
A third way is, if one is already a staff member or a junior executive of a company or a PR agency, for him or her to constantly read local business publications, like the BusinessMirror, or, if they are available, leading international ones, like the Wall Street Journal, Fortune Magazine and Business Week.
One must also find the time to read excellent books on economics, such as the classic Wealth of Nations by Adam Smith, or the latest edition of Paul Samuelson’s introductory book on economics aptly and simply titled Economics. Or they can go through more recent ones like Freakonomics by Steven Levitt and Stephen Dubner, or The Undercover Economist by Tim Hartford.
How I got into PR
TO end this article on a personal note, I took up Economics in college, thinking it was a good basic course to take in case I decided to pursue a career in business or some other profession. I was also at the same time the sports editor of the school paper, having had a love for reading and writing and some proficiency in the latter even at an early age.
When I graduated, my first job was as an Economic Researcher in an economic consultancy firm, which I found to be boring. Seeing me unhappy in my work, my boss recommended me to Business Relations, a PR company owned by Philippine PR pioneer Jose Carpio. It was there that I found the profession where I could make use of both my knowledge of economics and give vent to my love for, and facility in, writing.
And I never looked back ever since.
PR Matters is a roundtable column by members of the local chapter of the International Public Relations Association, the premier association for senior professionals around the world. Rene Nieva is the chairman and CEO of Perceptions Inc.
We are devoting a special column each month to answer the readers’ questions about public relations. Please send your comments and questions to askipraphil@gmail.com.