Why CFOs and CEOs See PR as a Cost Center—and How to Change That Perception (First of two parts)

It remains the case that a majority of CFOs and CEOs treat PR as an afterthought—a cost center rather than a value-contributor to the business's performance.

- RON JABAL

This results from its often-abstract character and its unavailability of direct causal chains that link up PR activity directly with financials. Nonetheless, some organizations in Southeast Asia, including several in the Philippines, show that strategic positioning of PR can create actual business output.

Why PR Is Misunderstood by CFOs and CEOs

1. Measuring ROI is not easy: While sales or marketing results are easy to quantify, PR is not. Its impact cannot be easily seen or measured, and metrics like brand reputation or stakeholder trust cannot be translated into dollars and cents, making it difficult for financial leaders to see PR's value.

2. Focus on short-term results: CFOs and CEOs often prioritize immediate revenue gains over long-term reputation building. PR, which typically delivers value over time, is thus overlooked in favor of functions with more immediate results.

3. Misalignment with business goals: PR teams sometimes operate in silos, focusing on media placements or crisis responses without aligning efforts to broader business objectives like revenue growth or market expansion.

4. Historical perceptions: PR has generally been seen as a publicity or PR fix tool rather than a business driver. This old paradigm is still the basis of decision-making in many organizations today.

Changing the narrative: The potential of PR as a business driver

To change minds, PR practitioners need to communicate the bottom-line impact of PR efforts. This means embedding PR strategies into business objectives; leveraging data-driven insights into action and communicating to stakeholders the impact of all these efforts on a regular basis.

1. Alignment of PR with business goals