Public Relations & Social Marketing Insight

As President Xi Jinping continues his crusade against corruption in China, we're learning how high the rot reaches into the ranks of the Communist Party. Yet amid the headlines about avaricious officials and unsavory ties between senior party leaders and moneyed interests, stories about the pervasive workaday ethical challenges are often lost. One example of relevance to marketers is the practice of paying for editorial coverage.

The most common form of this practice is the "transportation fee" paid to reporters in return for conducting an on-site interview, or for participating in a press conference. Fees hover around RMB ¥300 (about $50), and are given to the reporter in a red envelope inserted inside a press kit. However, it's worth noting that sums as high as ¥3,000 (approximately $500) are sometimes paid.

Knowledge of these practices within companies varies. For some, these fees are discreetly buried within other payments they make to outside agencies. For others, it's understood to be a "cost of doing business." Justification includes the argument that everyone does it, including multinational brands and big PR agencies; that getting media coverage without it would be impossible; and that Chinese journalists actually need the money because their salaries are so low....