lesson 5 - corporate communication in stake holder management, identity and reputation of an org

8/11/2019 Lesson 5 - Corporate Communication in Stake Holder Management, Identity and Reputation of an Org

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CORPORATE COMMUNICATION

Prepared byMd. Faisal Imtiaz Khan

MBA FacultyAmerican International University, Bangladesh

CORPORATE COMMUNICATION -STAKEHOLDER , IDENTITY & REPUTATION

10/10/2014 1Corporate Communication


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10/10/2014 Corporate Communication 2

Three concepts form the cornerstones of corporate communications:

stakeholders, identity and reputationUnderstanding stakeholder management facilitates the ability oforganizations to manage within the current business environmentCorporate identity involves the self-representation of an organizationthrough communications, products and services, and employeebehavior. It is based on the basic, distinct and enduring values of anorganization that guide its operations and that, when figuring incommunications, set it apart from rival organizations in the eyes ofimportant stakeholder groups.The ways in which stakeholder groups regard and value theorganization is defined as corporate reputation. Ideally, from a

corporate perspective, such a corporate reputation is in line with thecommunicated corporate identity and thus broadly consistent withthe way in which the organization wants itself to be understood.

Stakeholder, Identity & Reputation


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Stakeholder Model of Strategic Management

FIRM

Investors

Employees

PoliticalGroups

Customers

Communities

Governments

Suppliers

TradeAssociations


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According to Freemans Terminology there are 3 groups of stake: Equity Stakeholder: Who have some direct ownership of theorganization1. Stockholders2. Directors3. Minority Interest Owner

Economic and Market Stakeholder: Who have an economicinterest but not ownership interest1. Employees2. Customers3. Suppliers & Competitors

Influencing Stakeholder: Who dont have any economic orownership interest but have as an customers advocate,environmental groups, trade organizations, governmentagencies. Like, Regulators, Media, Local CommunitiesFirst two are the contractual stakeholder and the last one iscommunity stakeholder

Contractual & Community Stakeholder


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The important implication follow from this model are:

A corporate image needs to be actively projected to all stakeholdergroups, so that these groups upon which the organization isdependent accept and value the organization and its operations aslegitimate.

Stakeholder management emphasizes the need for both marketingand public relations as equal management partners forcommunicating with and building relationships with all thestakeholders of an organization, and for a managerial frameworkfrom where communication efforts can be balanced and coordinated

Implication of Stakeholder Model


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An individual may have more than one stakeholder role in relation to

an organizationEnsuring that a consistent picture of the organization is sent outavoids potential pitfalls that may occur when conflicting messagesare sent outEmployees, for instance, are often also consumers in the marketplacefor the products of the company that they themselves work forWhen companies fail to send out a consistent identity (and thus failto match all their internal and external communications), it threatensemployees perceptions of the companys integrity. They are told onething by management, but observe that a different message is beingsent to the marketplace

A sense of identity, and the core values provide an anchor aroundwhich all activities and communications can be structured and carriedout.

Identity & Corporate Communication


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As a result of the distinctiveness that an identity gives, it also helps

stakeholders find or recognize an organizationIdentity, when consistently communicated, creates awareness,triggers recognition, and may also instill confidence amongstakeholder groups, because these groups will have a clearer pictureof the organization.Inside the organization a strong identity can help raise motivationand morale among employees by establishing and perpetuating a wefeeling, and by allowing people to identify with their organizationsEverything a company says, makes or does leaves an impression withstakeholders

Identity & Corporate Communication


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Corporate Identity:

Conceptually, corporate identity can be defined as the picture of theorganization in terms of how this is presented to various audiences.Originally, corporate identity was associated with logos and thecompany house style (stationary etc.) of an organization.

Has gradually been broadened to include all communications (e.g.advertising, events, sponsorship, press/publicity and promotions),and all the ways including products and services and employeebehavior through which a picture of the organization iscommunicated.

Organizational and Corporate Identity


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Organizational Identity:

Organizational identity relates to how an organizations membersperceive and understand the organization.Organizational identity is often defined with the central questions of

who we are and what we stand for that managers put to

themselves and other members of the organization.This then results in a number of values, beliefs and aspirations thatare commonly captured in the mission, strategic vision and the moregeneral corporate culture of an organization.

Organizational and Corporate Identity


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Recent research firmly suggests that organizations with stronger

identities have more positive reputations.That is, a strong identity is more visible to stakeholders outside the

organization and serves as a differentiation signal.When a reputation is indeed broadly consistent with that organizationscorporate identity, it also ensures that the organization is respectedand understood in the way in which it wants and aims to beunderstood.Alternatively, when there is a discrepancy between the identity of an

organization and the way in which it is regarded, an organization is notstanding out on its own turf and may not have a strong enoughreputation as a result.

Identity and Reputation


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First of all, reputation is a perceptual construct. Reputation is not only

seen as a collective perception of a firm in the minds of stakeholders,but the concept is often extended and associated with organizationalbehavior, assets and balance sheets of firms as well.A second important element is that a reputation is formed by multiplestakeholder groups. Different stakeholder groups of an organizationare exposed to and look for different signals or messages, and as aresult ,views and impressions held by different stakeholder groups aredistinct.The third and final element of reputation that needs to be clarified isthat it involves not just a general impression but also an evaluation ofthe firm by stakeholders.

Reputation and Corporate Communication


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Model of Stakeholder, Identity & Reputation

OrganizationalIdentity

Corporate CultureMissionVision

CorporateIdentity

Product & Service

C o m m u n

i c a

t i o n

E m p

l o y e e

B e

h a v

i o r

Perception of the Stakeholders

( Customers, Local Communities,Investors, Regulators etc )

CorporateReputation

MediaReporting

Word ofMouth

lesson 5 - corporate communication in stake holder management, identity and reputation of an org

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