MULTINATIONAL corporations faced a public relation crisis in China, where most people have a low regard for their corporate PR image, according to a report.

It is the third straight year that the public reduced their rating on multinationals in terms of their ability to manage public relations, said the report by Horizon Research Consultancy Group with China Business Network Co.

The report based on its finding on a survey of 2,285 residents aged between 18 and 60 in Beijing, Shanghai and five other cities, as well as 420 senior company executives. The respondents gave 79.34 points for the multinationals corporate image, 77.44 for product image and 73.3 for their public relations out of a 100-point scale.

The three categories were all down by 0.5 to 0.7 points from 2006, a year when the multinationals saw a big decline in these ratings by as much as 17 points after several quality scandals in 2005 with well-known overseas names.

"The decline shows that the multinationals are having trouble focusing on PR work and image building," the report said. "They should improve their product quality to improve their influence."