CEOs Rely Most on Public Relations Professionals for Reputation Management; CEO Survey Reveals Public Relations' Growing Corporate Role.

NEW YORK -- The results of the 2004 PRWeek/Burson-Marsteller CEO Survey reveal a continued increase among corporate leaders who believe public relations professionals play an important role within their organizations. More than 90% of CEOs surveyed said communications is "very important" or "important" for managing reputation, safeguarding the company's image and crisis management.

"Corporations succeed or fail based on the way the public perceives them and gives them permission to be successful," said Chris Komisarjevsky, who recently retired as president and chief executive officer of Burson-Marsteller worldwide. "As more and more corporate leaders have come to recognize this, PR has become an increasingly vital tool in day-to-day company operations."

In the sixth year of this annual survey, CEOs continued to consider enhancing corporate reputation as the most important objective among PR functions. Raising brand awareness, crisis management and safeguarding the company image followed closely as the other highest-ranked PR objectives.

The survey also found that many CEOs know that they, and their executive teams, play a critical role in conveying their companies' messages. Compared with two years ago, CEOs responding to the survey said they are spending more time communicating with customers (75%) and the media (64%). Ninety-four percent of CEOs stated that it was "very important" or "important" that other senior executives spend time communicating externally. In addition, each of the CEOs participating in the survey indicated that communicating with employees was critical. Approximately sixty percent of CEOs reported spending more time communicating with employees than they did one year ago.

"It's clear that CEOs believe communications and reputation are a shared responsibility," said Komisarjevsky. "The CEO may be the primary individual, but there needs to be some resonance deeper inside the organization."

For the second year, the survey also looked at the significance CEOs attach to the myriad annual corporate rankings compiled by business and news magazines, associations and institutions. Fortune magazine's "Most Admired Companies" and "100 Best Companies to Work For" led the list as the "most influential," followed by Business Ethics' "100 Best Corporate Citizens" and Fortune's "Best Companies for Minorities." Bill Holstein, editor of Chief Executive magazine, noted that scorecards are increasingly important to many CEOs. "(Scorecards) matter," says Holstein. "(CEOs) think it helps them with their brand and employee recruitment and retention."

Julia Hood, editor-in-chief of PRWeek, commented that "Our survey with Burson-Marsteller clearly shows that public relations occupies an enhanced position of importance for today's CEOs. They are using PR not only to deflect corporate problems but to drive business."

The PRWeek/Burson-Marsteller CEO Survey of more than 100 American CEOs was conducted by Impulse Research, an independent firm based in Los Angeles. Written questionnaires were sent to CEOs at Fortune 1000 companies and their subsidiaries. CEOs at smaller companies were sampled through an Internet poll conducted by Impulse Research. The CEOs surveyed represent companies with revenues of less than $100 million (36%), $100 million to $1 billion (32%) and more than $1 billion (32%).

Complete survey results can be found in the November 8, 2004 issue of PRWeek.

About PRWeek:

Launched in November 1998, PRWeek is Haymarket's first weekly title in the US. Over the past 6 years, PRWeek has established itself as a vital part of the PR and Communications industry in the United States, providing up to the minute news, reviews, profiles, techniques and ground breaking research for practitioners. This research includes annual Salary, CEO and Corporate Surveys, as well as key industry sector rankings and regional forums.

About Burson-Marsteller:

Burson-Marsteller (www.bm.com), established in 1953, is a leading global public relations and communications consultancy. It provides clients with strategic thinking and program execution across a full range of public relations, public affairs, advertising, and Web-related services. The firm's seamless worldwide network consists of 46 wholly-owned offices and 47 affiliate offices, together operating in 55 countries across six continents. Burson-Marsteller is a part of Young & Rubicam Brands, a subsidiary of WPP Group plc (NASDQ: WPPGY), one of the world's leading communications services networks.

About CEOGO:

Burson-Marsteller created www.ceogo.com, the first comprehensive CEO-focused Web site. The site provides information and news to a growing community of professionals who are interested in chief executives - their reputations, changing roles and management strategies. CEOGO has been favorably reviewed by Barron's, Harvard Business Review's Working Knowledge and The Asian Wall Street Journal and features the latest research, announcements, trends and leadership resources for today's CEOs.