The stakeholder theory says that corporations should be run for the benefit of all stakeholders, not just the shareholders. Stakeholders of a company include any individual or group that can influence or is influenced from a companies practices. The stakeholders of a company can be suppliers, consumers, employees, shareholders, financial community, government and media. Companies must properly manage the relationships between stakeholder groups and they must consider interest of each stakeholder group carefully. Therefore, it becomes essential to integrate public relations into corporate governance to manage the relationships between these stakeholders which will enhance the organizations reputation. Corporations or institutions which behave ethically and governed in a good manner builds a reputational capital which is a competitive advantage