Accounting for public relations: exploring radical alternatives

Despite continuing interest in assessing the effectiveness of public relations activities the resulting asset, termed goodwill, continues to be regarded as intangible. As a result its financial value is framed within formally‐constituted functional definitions and a conceptual environment that is managed and controlled by accountants. The article explores current thinking in the way that financial value is ascribed to public relations activity and identifies key problems with the current limitations inherent in the current standard accounting practice. It goes on to examine the possibility of radical alternatives. The article concludes with suggestions for further areas for research and collaborative work, calls for a new framework within which corporate values are created, but maintains that a developmental link to the existing dominant framework of understanding is important. It is suggested that accountants and public relations practitioners would need to work at a theoretical and practical level to develop such a framework.