Book Review: Business Essentials for Strategic Communicators: Creating Shared Value for the Organization and Its Stakeholders, by Matthew W. Ragas and Ron Culp

Abstract

Matthew W. Ragas and Ron Culp Business Essentials for Strategic Communicators: Creating Shared Value for the Organization and Its Stakeholders. Palgrave McMillan: New York, 2014. 211 pp.Competition for entry-level jobs in strategic communication will remain competitive, as more than 51,0 00 undergraduates are enrolled in public relations, advertising, and strategic communication programs in the United States. Business Essentials for Strategic Communicators provides a broad overview of the knowledge communications majors need to navigate the future of corporate communication.The first chapter describes the transformation of the public relations practitioner's role from that of technician responsible simply for shaping the company message to that of strategic advisor responsible for developing the message and influencing organizational decisions. Much of the chapter presents results of the authors' studies-including one sponsored by the Arthur W. Page Society. For example, 8 out of 10 corporate executives reported undergraduates lack essential knowledge despite the Commission on Public Relations Education's (CPRE) recommendation of undergraduate and graduate courses in accounting, economics, management, marketing, and finance.The ability to understand income statements, balance sheets, cash flow, and shareholder equity is requisite for success. Citing a study of salaries, the authors report MBAs earning higher salaries than professionals with master's degrees from strategic communication programs. The authors emphasize for the future strategic communicator, communications acumen is secondary to acumen. Chapter 1 concludes that business 101 is essential not only for corporate careers but also for nonprofit and government careers.Chapter 2 provides an overview of economics, the Federal Reserve, and key economic indicators. Ragas and Culp, professors at DePaul University in Chicago, explain that strategic communicators require a working knowledge of the consumer price index, currency exchange rates, U.S. treasury bond rates, Gallup's economic confidence index, and the Thomson Reuters/University of Michigan consumer sentiment index, as well as spending and forecasting trends in advertising and marketing like ZenithOptimedia and Nielsen.The importance of Wall Street and the financial and stock markets is covered in Chapter 3. The authors give the reader an overview of stock valuations and the impact of the securities and bond markets on the corporate bottom line. The chapter sketches the differences among the primary U.S. stock exchanges and explains initial public offerings and the role of the Securities and Exchange Commission (SEC) in financial communication with stakeholders. Chapter 3 concludes with a brief overview of exchanges in other countries and identification of the players in the financial markets including investment banks, federal and state regulators, institutional and individual investors, information intermediaries, and proxy advisers to name a few.Accounting and its role in corporate record keeping and reporting are the focus of the book's fourth chapter. Income statements, balance sheets, and cash flow statements are defined, and sample income statements and balance sheets are presented in the chapter's tables. Chapter 4 concludes with an explanation of financial valuation metrics such as market capitalization and price-to-earnings ratios. Each chapter concludes with key terms and discussion questions. A 22-page glossary appears at the end of the book.Strategic communicators need to understand corporate law and disclosure as well as the relationship between the company and the SEC. Chapter 5 presents a brief historical overview of SEC regulations for public companies and defines material information and insider trading. The overview also includes corporate disclosure theories and research and corporate disclosure channels including earnings conference calls and investment conferences. …