essay - corporate pr. this is part of my portfolio from my ma course

7/27/2019 Essay - Corporate PR. This is part of my portfolio from my MA course.

1/18

SilenceisGolden

Coca-ColasAnti-obesityCampaign

AndreeaGlavan

CORPORATEPR

FCW704

IndividualEssayAE2

Wordcount:2800w(excludingappendices)


2/18

2

Introduction

Activistgroups,oftencalledpressureoradvocacygroups,areformedbytwoormorepeopleunitedandmotivatedbyacommonlysharedvalueorgoal.Ona

regularbasis,theirmotivationiscloselyconnectedtoperceiveddangerson

injusticesagainsttheenvironment,animals,humanrights,health,etc.Thisensuresthemamorallysuperiorpositiontothosethattheytargetthroughtheir

campaignsorboycotts(Deegan,2001).Thisiswhy,whenacompanyistargeted

byanactivistgroup,theassumptionofthemedia,governmentandallotherforcesengagedbyactivistsisthattheorganisationisguiltyuntilproven

otherwise.

BasedonAgles(1997)saliencemodelthatcategorisesstakeholdergroups

basedonthreemajorattributespower,legitimacyandurgencyactivistscanbeseenasdependantstakeholdersundernormalcircumstances,whenadvocacy

groupsarenottargetingaparticularorganisation(Cornelissen,2008).Theirlowpower,coupledwiththeirdistinctlevelofinterestpositionstheminacategory

ofstakeholdersthatneedtobekeptinformed,atalltimes.Moreoftenthannot,

though,companiesfailtodothis,adoptingawell-knowncommonpracticeamongstorganisations,simplyignoringinputfromactivists(Grunig,1992).Even

thoughthePublicRelationsandCommunicationdisciplineclaimsignoring

activistmovementsisbadpractice,ithasworkedformanycompaniesinthepast,thereforebecomingthenorminthecorporateworld,constantly

diminishingtheroleofactivists.

Despitecompaniestendencytoregardthemassecondaryintheir

communicationefforts,activistsarestillseenbythepublicasthepioneersofchangeinregardstomanyglobalissues,suchasanimaltestingorrecyclingand

theprotectorsofconsumersrights.Onemightthinkthetwoideasare

contradictoryinessence,sincetargetedorganisationschosetoignoreclaimsmadebyactivists,yettheseverygroupsareabletoinfluenceeffectsof

corporationsactions,asseeninRalphLaurenscase,whichdroppedfurfromtheirfashionline(AssociatedPress,2006).

However,Agles(1997)modelfailstodepictonaveryimportantaspect,whichisthemigrationofstakeholdergroupsfromonecategorytoanother,bygaining

additionalattributesandthefactthatnotfulfillingtheirinitialneedsiswhatleadstothissituation.Alsooverlookedbyresearchersinregardstoreactingto

activistpressureisasuddenchangeinattitudetowardsthesegroupsincaseofa

conflict,whichcanworsenthesituationandanorganisationsreputation.

Deegan(2001)talksaboutdosanddontsforcompaniestargetedbyactivist

groups,assumingthattherightcourseofactioncanleadanorganisationtoitsdesiredoutcome(moreoftenthannot,relatingtomaintainingprofits)incaseof

aconflictwithactivistgroups.Despiteherrecommendationsbeinggeneralenoughforanycompanytouseasguidelines,Deegan(2001)leftoutlobbying,as

amethodofactivistengagementwhichbypassestheorganisationandpublic,

activiststargetinglawmakersinstead.Thishasagreatimpactonpracticesof


3/18

3

containingtheconflict,asdemonstratedinthecaseofCoca-Colasrecentconflict

withhealthactivists.

Thequestionthathasdeterminedthecurrentstudysfocusrelatestoactivismandanorganisationsreactiontotheactivistactions:Whencansilencebegolden

intheeventofactivistgroupstargetinganorganisation?UsingthereactionstotherecentadcampaignlaunchedbyCoca-Colawhichadvocatesthecompanyasaallytothefightagainstobesity,anempiricalstudyandprevioussimilarcases,

thispaperaimstodemonstratethatCoca-Colasadvertisingcampaignhadthe

oppositeeffectsontheconsumersastheonedesiredbythecompany.Asurveyconductedamongstyoungbuyersdeterminedconsumersbehaviourinrelation

toCoca-Colaproducts,depictingonthevariouscorrelationsbetweenhealthissuesandCoca-Colaconsumption.Inordertoexplorethegeneralissues

perceivedbyyoungPRprofessionalsinregardstorespondingtoactivism,the

focusgroupusedforthisresearchcentredonexamplesofsuccessfuland

unsuccessfulactivistcampaigns.Theconclusionsthatcouldbedrawnfromthesurveyandthefocusgroupwereusedtotestthecurrenttheoriesthatrelateto

activismandalsotoevaluateoutcomesoftheCoca-Colaadvertisingcampaign.


4/18

4

Casestudy

Healthadvocatesarelobbyingforlegislativechange,claimingthata16ounce(500ml)caponsoftdrinkssoldinpublicplacesinNewYork(restaurants,

cinemas,sportarenas)shouldbeenforcedin2013(Choi,2013),toreduce

obesityrates.Thisisnotthefirstinstancewhenfizzydrinkshavebeenclaimedtoinduceobesityforchildrenandadultsalikeandtoposethreatstoa

consumershealth(Mudge&Johnson,2004).Companiesproducingthese

beverageshaveadoptedthemostcommonresponsetoactivistpressure(Deegan,2001,p.22),absolutesilence.Thismethodofdealingwithactivist

groupsseemstohavekepttheimpactonCorporateReputationataminimumforcompanieslikeCoca-ColaorPepsi,whoarethetwolargestglobalproducersof

fizzydrinks.IthasbeenreportedbyBeverageDigestthatconsumptionoffizzy

drinkshassteadily(butveryslowly)declined,particularlyinUS,since1998(BBCNews,2013).Nonetheless,thereisnoevidencethatthisisrelatedtohealth

concernsofcustomers,anditcanbeassumedthatanythingcouldhavecausedthistrend,suchasanincreasedvarietyofalternativestosodasonthemarket.

Therefore,despiteattemptsofpromotingacaseofoverconsumptionofCoca-

Colathatleadtothedeathoftheconsumer(Petersen,2013),sofarthereisnosignofsuccessofactivistsinitiativetoconvincethepublicthatconsumptionof

sugaryfizzybeveragesisharmfulforoneshealth.

BothactivistsandCoca-Colaastheorganisationtoreactthroughacampaigntothehealthclaimsmadebyhealthadvocateshaveseennegativereactionstotheir

actions.Lobbyistsactionshavetriggereddebatesabouttheconsumersfreedom

ofchoice(Tworek,2013),abanonsodaconsumptionbeingseenaslimitingconsumerschoice.Ontheotherhand,the21stcenturycynicalconsumersare

highlyscepticaltowardsanyclaimsmadebylargecorporationsinregardsto

theirCorporateSocialResponsibilityactivities(Carrigan&Attala,2001).Intheappendicesofthisdocument,anextractofconsumersreactiondemonstratesthe

aforementionedscepticisminrelationtoCoca-Colasanti-obesitycampaign,particularlyduetothefactthatthecampaignisanexceptionalreactionofthe

organisationtoactivistmovements.Theconsumersnegativereactiontowards

theactivistscouldbeexplainedthoughthefactthatadvocacygroupshavebypassedtheminmanagingtheissuethroughdirectlobbying.

Atthesametime,Coca-Colahasmadeasimilarerrorand,insteadofresearching

thebehaviourofconsumersandproposeaviablesolution,basedongenuine

findings(usingtestimonials,casestudies,etc.),theyareperceivedassimplytryingtopushtheirrangeofdietproductsonthemarketthroughthecampaign.

Grunig(2002)argues,afterclaimsthathisexcellencetheoryisoverachieving,

thatthekeytothedesiredtwo-waysymmetricalcommunicationisresearch(Yaxley,2012).Thereforeitisnotasmuchaboutmakinganeffortto

demonstrateadialogueoftheorganisationwitheachconsumer,butsufficientresearchinorderforcommunicationeffortstoresonatewithtargeted

stakeholdergroup.AnunderstandingofthisinthePRpracticeand

Communicationpracticesingeneralwouldadvancetheeffortsinmaintaininganeffectiverelationwithallstakeholdergroups.Itwouldalsoreducecostsfor


5/18


6/18

6

companyweresubsequenttoactivistslobbyingforachangeinlaw,whichdidnt

targetthecompany.Thereforethecompanytriedtofabricateanimagethatwouldappealtohealthactivists,aswellasconsumers,whichhasturnedagainst

them,duetoscepticismtowardsacompanywhichhasbeencontinuingtheirbusinessinthesamemannerregardlessofactivistcampaignsfordecades.

Startingwithrecommendedphysical,activitieswhichcanburnthecaloriescontainedinaCoca-Colacantorecommendingdietversionoftheirpopularproducts,thecompanytriedtoshrugoffthenegativeimageassociatedwith

sugarydrinkssoldbythem.Thishas,however,createdmorebuzzaroundCoca-

Colasperceivedhealththreats.

Itappearsasthoughbypassingtheintermediarystakeholdergroupwasthepracticeadoptedbybothpartiesinvolvedintheanti-obesitycampaign.Perhaps

anunderstandingofintermediariessignificanceinsucceedingcanbebroughtby

throughtheuseoftheValidMetricsMatrix(VMM).Besidesbeinganeffective

toolthatdemonstratesimpactofacampaign(Sweet,2012),itisalsoamannerofdeterminingtherightactions,intermediariesandpredictedeffectsontarget

audienceinregardstoanysetgoal.TheproblemwithVMMasatoolisitsnovelty,butincreasedeffortsshouldbemadetowardspromotingitsbenefits,

beyondmeasurementpurposes,endorsingitsmultiplepurposes,includingimprovedmethodsofcampaignplanning.

TherearesignsofahighlevelofawarenessamongstconsumersinregardstothenegativeeffectsofCoca-Colaconsumption,asthesurveydemonstrates(results

ofthesurveyattachedintheappendices).83%oftherespondentstothequestionnairedemonstratedawarenessaboutnegativehealtheffectsofCoca-

Colaandthenumberofcaloriescontainedbytheproduct.Toexplorethesubjectofcaloriecountanditsimpactonhealth,respondentswereaskedwhattheirmostlikelyreactionwouldbeiftheywouldseescientificproofthatCoca-Colacan

negativelyimpactapersonshealth.18%ofrespondentsindicatedthatthey

wouldnotchangeanything,whilst23%indicatedtheywouldreducequantity,butonlyslightly.Theseresponsesamounttoatotalof41%ofpeoplewhowould

hardlychangeanythingintheirbuyingbehaviour,despitescientificevidence.Itisfortheseconsumersinparticular,itcanbeassumedthatlobbyingwas

consideredasthebestmannerofaddressingtheissuebyactivists.

Only7%oftherespondentstothesurveyconductedbytheresearcheragreed

withtheideathatDietCokeishealthierthanregularCoca-Cola.WhenaskedwhatwouldmakethemchoseDietoverregularCoke41%ofrespondents

indicatedthatthenumberofcalorieswouldmotivatethem.Leavingasideall

otheraspectsandtakingintoaccountonlycaloriecountastheonlyproblemthatconsumptionofCoca-Colaposes,theadcampaignproposesDietproductsasan

alternativetotheregularCoke.Thesurveyrevealedthatevenifthiswouldbea

changeinbehaviourofconsumers,itstilldoesnotaddressalltheproblemsassociatedwithallhealthrisks,plusitwouldbeatemporarysolution.The

surveyalsorevealedthatiftheywereregularconsumersofDietCoke,41%ofconsumerswouldjustbuyregularCoca-Colaiftheshoptheyaredoesnothave

dietCoke.Lastly,toconcludeinregardstosomeconsumersbehaviourinregardstoCoca-Cola,itisimportanttoemphasizethat37%ofrespondentsto


7/18

7

thesurveyindicatedthattheyknowCoca-Colacanbebad,butIstilldrinkitona

regularbasis.ThiscontradictsDeegans(Deegan,2001)claimthatpeopleperceivethreatstotheirhealthandsecurityasveryimportantwhenactivists

communicatethemtothepublic.


8/18

8

Conclusion

Althoughsolutionswereproposedtobettertheanti-obesitycampaignranbyCoca-Cola,theproposedwayofdealingwiththeissuewouldhavebeenignoring

it.ThereasonwhythatwouldhaveworkedinCoca-Colasbenefitissimply

becauseithasworkedbefore.Inadditiontothis,theprimaryresearchindicatesthat,whilstawareofpossibleeffectsonhealth,consumersarenotinahurryto

changetheirbuyingpatternsinregardstoCoca-Cola.Insteadtheymanagedto

createanegativebuzzinthemediaandthepubliceye,beingperceivedastryingtomasktheirrealintentionsandactionsthroughthiscampaign.

Thereforesilencecanbegoldenforacompanywhenfacedwithactivists

pressure,iftheorganisationhasalwaysreactedinthatmannerpreviously.Atthe

sametime,acompanythatisnotknownformaintainingconstantcommunicationwithactivistsasasignificantstakeholdergroupshouldnttryto

makeexceptionaleffortsofcommunicationintimesofimminentorexistingcrisis,astheactivistswillusethisagainstthecompany.Takingaction

subsequenttoactivistslobbyingactiondemonstratesafearofthecompany,

whichgeneratesmoreconvictionfortheactivistsclaims.

Consistencyindealingwithactivistsactionistheonlymannerthatcancertify

successinmaintaininganorganisationscorporatereputationintegral.Whethersilenceorcontinuousinvolvementwithactivistsisthechosenmethodofan

organisationindealingwithadvocacygroups,theorganisationneedstokeepinmindthat,particularlyinthecaseofbeingconfrontedbyactivists,achangein

strategyposesmultiplerisks.Agoodissuesmanagementstrategy,which

determinespossiblethreatstotheorganisation,couldestablishpriorityindealingwithparticularactivistgroups.Toensuresuccessinapproachingthose

activistgroupswithoutraisingdoubtsonperceivedissue,researchiscrucial.

Jaques(2010)proposesamodelforissuesandcrisismanagement,whichdeterminescourseofactionstobeconsideredbyorganisationswheninacrisis

situation.Althoughbasedontheassumptionofexistenceofsignsofanytypeofissueacorporationcouldencounter(whichinreallifeisnotapplicabletoall

situations,asproposedinthemodel),theideasuggestedbyresearcherthat

crisesarenotevents,ratherthanaprocessisvalid.Andwhilsttheviewpointsexpressedinthearticlesuffersduetotheassumptionmentioned,itreinforces

theideathatresearchisthekeyandanalysingcrisesasprocessescanleadtodeterminingtrends.Thisisnotablebecause,asmentionedpreviously,

consistencyindealingwithissuesensurestrustworthinessoforganisationsto

stakeholdergroups.

Corporatereputation,particularlyinthecaseofwell-renownedorganisations(as

isthecaseofCoca-Cola,chosenasanexampleforthecurrentstudy),isbuiltthroughuniformityacrossallcommunicationandconsistencyinmessage

communicated.Asuddenchangeinvaluescommunicatedorinmannerofcommunicationwithorinrelationtoaparticularstakeholdergroupcanonly

generateconfusionandrejectionofmessageintendedthroughcommunication.


9/18

9

Appendices


10/18

10

StakeholderMap


11/18

11

DiagramforStakeholderSalience(foranti-obesitycampaign)


12/18

12

IssuesMatrixandPESTLEanalysis

IssuesMatrix

AdaptedfromCoca-ColaHellenicwebsite


13/18

13

PESTLEanalysis


14/18

14

Focusgroupquestions

1. Letstakeavotearoundthetabletostartwith:a. Howmanyofyoubelievethatbuyingbehaviourofconsumersis

influencedbyabrandscorporatereputationortheircorporate

socialresponsibilitypractices?b. Thoseofyouwhoansweredyes,whydoyoubelieveCSRor

corporatereputationhaveanimpactonbuyingdecision?

c. Thoseofyouwhoansweredno,whydoyouthinkcorporatereputationdoesnotimpactonabuyingpatternofconsumers?

2. Whatdeterminesyourdecisionwhenbuyingaproduct?a. Recognitionofbrandb. Valueformoneyc. Qualityofproductd. Familiaritywithproduct

Pleasementionanyotherfactorsthatinfluenceyourdecision.

3. Towhatextentdoesanactivistcampaign(likeaboycott)influencesyourdecisiontobuyaproductifthecompanyproducingitisthetargetofthat

campaign?

4. Doyouthinkdifferentcompaniesreactindifferentwaystoactivistcampaigns?Ifso,couldyouexemplify?

5. Whatdoyoubelieveisthemainreasonsomecompaniesreactdifferentlyfromothers?

6. Haveyouseentherecentanti-obesitycampaigndevelopedbyCoca-Cola?

a. Whatwasyourfirstthoughtwhenyousawit/heardaboutit?

7. Whatdoyouconsidertobeamannerinwhichactivistscouldbemoresuccessfulinachievingtheirdesiredoutcomethroughcampaigns?

8. Doyouthinkanorganisationssuddenchangeinattitudetowardsactivistcampaignsleadstopositiveoutcomes?Ifso,whataretheseoutcomes?

9. Overall,doyouthinkactivistshavearealimpactonsocietyandcompaniespractices?

a. Whatwouldbethemainimpactyoucouldthinkof?

Thankyouverymuchforparticipatinginthefocusgroup.


15/18

15

ReactiontoCoca-Colasanti-obesitycampaign(consumers)


16/18

16


17/18

17


18/18

18

essay - corporate pr. this is part of my portfolio from my ma course

Documents