Introduction to Corporate Communications Peggy Simcic Brønn Assistant Professor Handelshøyskolen BI

2 The roles of communications zInforming zAdvocating zDialoguing zTypes of communication y One-way y Two-way (Symmetrical/Asymmetrical)

Sharing the Compelling Vision Integrating the Effort Making Intelligent Decisions Sustaining a Healthy Community Four Purposes of Communication Francis, D., Unblocking Organizational Communication, Gower, 1987.

Stakeholders Stockholders Government Regulators Boards of Directors Community leaders Stockholders Government Regulators Boards of Directors Community leaders Associations Political groups Professional societies Associations Political groups Professional societies Suppliers Unions Employees Suppliers Unions Employees Consumers Industrial purchasers Service users Consumers Industrial purchasers Service users Environmentalists Media Community residents Voters Minorities Women Other publics Environmentalists Media Community residents Voters Minorities Women Other publics Normative linkages Functional linkages Input Output Diffused Enabling Organization’s external linkages ”...a group or individual who can have an effect on or be affected by the organization.” - Freeman (1984) Organization

Corporate identity and reputation Corporate Identity Names, Self-Representations Customer Image Community Image Investor Image Employee Image Corporate Reputation Fombrun, C. J., Reputation, Harvard Business School Press

6 Reputational risk management cycle Corporate Citizenship Corporate Performance Safety Net Opportunity Platform Reputational Capital Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk,” Business and Society Review, 105:1,

7 What stakeholders want… zVisibility ò information zVirtue ò good organizational behavior zVerifiability ò access to information

Mess management: Multiple perspectives Descriptions of perceived relevant activity Yields choices of... Comparison of descriptions with the perceived reality Actions to improve the situation Influenced by individuals’ mental models A real-world situation of concern

The co-orientation model Organization’s perception of Stakeholder A’s views Organization’s perception of Stakeholder A’s views Stakeholder A’s definition and evaluation of an issue Stakeholder A’s definition and evaluation of an issue Stakeholder A’s perception of organization’s views Stakeholder A’s perception of organization’s views Organization’s definition and evaluation of an issue Organization’s definition and evaluation of an issue UNDERSTANDING ACCURACY CONGRUENCY Issue AGREEMENT McLeod, J. M. and Chaffee, S. H., Interpersonal Approaches to Communications Research, American Behavioral Scientist (1973)

10 Co-orientation states z True consensus y The parties know they share an agreement on their evaluation of an issue. z Dissensus y The parties hold conflicting views and are aware of their differences. z False consensus y The organization believes that the stakeholder agrees with them on a particular issue, or y The stakeholder group mistakenly believes that the organization holds the same view that they do. z False conflict y The parties believe that they disagree on an issue when in fact they agree.

Mental models The ladder of inference Reflexive loop Our beliefs affect what data we select next time I make ASSUMPTIONS based on the meanings I add I take ACTION based on my beliefs I draw CONCLUSIONS I add MEANING (cultural and personal) I select DATA from what I observe Observable “data” and EXPERIENCES (as a video recorder might capture) I adopt BELIEFS about the world

Applying the Ladder of Inference The ladder provides a means to ask questions... Ô What is the observable data behind that statement? Ô Does everyone agree on what the data is? Ô Can you run through your reasoning? Ô How did we get from that data to these abstract assumptions? Ô When you said “[your inference],” did you mean ”[my interpretation of it]” ?

13 Essential skills for working with mental models ò Reflection Becoming more aware of your own thinking and reasoning. ò Inquiry Inquiring into others’ thinking and reasoning. ò Advocacy Making your own thinking and reasoning more visible to others. zReveal where you are least clear in your thinking, invite improvement. zListen, stay open, encourage others to provide different views.

14 Dialogue as the basis for communications zModels of communication yShannon and Weaver (1949) – focus on the medium yCognition-based models – focus on the message zDialogue “...a sustained collective inquiry into everyday experience and what we take for granted.” Senge, et.al. (1994). The Fifth Discipline Fieldbook

Expected Behavior Perceived Behavior Behavior Delivery Stakeholder-driven designs and standards Company perceptions of stakeholder expectations External Communications to Stakeholders Company Stakeholders GAP 1 GAP 2 GAP 3 GAP 4 Gaps Model of Behavior

16 Key Factors Leading to Stakeholder Gap Stakeholder Expectations Gap 1: Not knowing what stakeholders expect Gap 2: Not selecting the right behavior Gap 3: Not delivering to behavior standards Gap 4: Not matching performance to promise Stakeholder Perceptions Stake- holder Gap

Strategy IdentityImage Management Communication Organizational Communication Marketing Communication Common Starting Points van Riel, C., Principles of Corporate Communications

18 Management Communication zRole of managers within organizations: yDeveloping a shared vision yEstablishing and maintaining trust in leadership yInitiating and managing change process yEmpowering and motivating employees

19 Marketing Communication zThose activities supporting sales of particular goods and services yAdvertising ySponsorship yDirect Marketing yPersonal Sales yProduct PR yOthers

20 Organizational Communication zPublic Relations zPublic Affairs zEnvironmental Communications zInvestor Relations zInternal Communication zCorporate Advertising