Introduction to Corporate Communications

1. Introduction to Corporate Communications Peggy Simcic Brønn Assistant Professor Handelshøyskolen BI

2. The roles of communications • Informing • Advocating • Dialoguing • Types of communication • One-way • Two-way (Symmetrical/Asymmetrical)

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

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

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

6. Reputational risk management cycle Opportunity Platform Corporate Citizenship Reputational Capital Corporate Performance Safety Net Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk,” Business and Society Review, 105:1, 85-106.

7. What stakeholders want… • Visibility • information • Virtue • good organizational behavior • Verifiability • access to information

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

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

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

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

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

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

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

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

16. Key Factors Leading to Stakeholder Gap Stakeholder Expectations Stake-holder Gap • 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

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

18. Management Communication • Role of managers within organizations: • Developing a shared vision • Establishing and maintaining trust in leadership • Initiating and managing change process • Empowering and motivating employees

19. Marketing Communication • Those activities supporting sales of particular goods and services • Advertising • Sponsorship • Direct Marketing • Personal Sales • Product PR • Others

20. Organizational Communication • Public Relations • Public Affairs • Environmental Communications • Investor Relations • Internal Communication • Corporate Advertising