Lecture 1: Organisations, corporate reputation and legitimacy
Important:
Differences between public and private sector organisations
Relevance of legitimacy and reputation for organisations
Problems that public sector organisations could encounter when working on their reputation
An organization is:
- A group of people working together to reach a goal
- By using their environment
- They accomplish tasks and use technologies
- They encounter uncertainties
- they need leadership, leaders develop strategies that help to Reach goals
An organization is:
- structures and processes help with coordinating these tasks:
- structures are the relatively stable, observable distributions of work and
responsibilities acros the divisions of organization
- processes are the less directly observable dynamic activities
incentives make individuals work within those structures and processes
Rainey, 2009
Why do we need to know this?
Understand their behavior
Improve their internal and external communication
To understand and improve their interaction with stakeholders and society at large
Differences between organisations
Contingency theory: organisations differ from each other because they have to adapt to
different circumstances
internal: tasks, size, and strategic decisions
external: technological, legal, economical, political, demographical, ecological, cultural
developments
including media landscape
Example: Phillips started with only lights, no they don’t do lightning anymore but more
hospital etc. Adapted to new circumstances becauses their lightning wasn’t future proof
Why are media relevant to organisations?
- the organisations environments influences the organization
- media are an autonomous aspect of this environment as well as an intermediate between
other parts of the environment and the organization
- media report in a critical, neutral or favourable way
-they inform other stakeholders (citizens, competitors, political realm, investors etc)
, Media effects priming etc
Example: Shell Shell has got a lot of negative media coverage, but has got a good
reputation
Differences between organisations:
- Goal
- Ownership
- Financing
- Ownership
- Size
All organisations strive after survival
Public VS private organisations (Rainey, Backoff, Levine 1976)
1. Grief market exposure do they experience competition? No market exposure for
public, loads of market exposure for private
2. Legal, formal constraints public organisations have more rules
3. Political influences greater diversity and intensity of external informal influences on
decisions
4. Coerciveness
5. Breadth of impact
6. Public scrutiny public organisations has got more attention then private
7. Unique public expectations
Ownership public = government, financing = taxes, primary control = politics
Ownership private = entrepreneurs, financing= clients, private = market
Why is this relevant?
Publicness and privateness of an organization can influence the media coverage
Legitimacy (Suchman, Deephouse 2008)
Legitimacy is a generalized perception or assumption that the actions of an entity are
desirable, proper, or appropriate within some socially constructed system of norms, values,
beliefs and definitions,
dimension, subjects and sources
It means that an organization can be criticized on many levels
An organization can do something that is illegitimate in the eyes of the public, but legimit in
the eyes of the organization (ontgroening studentenverenigingen)
Legitimacy, status and reputation
Status is a socially constructed intersubjectively agreed-upon and accepted ordering or
ranking of social actors, based on the esteem or deference that each actor can claim by
virtue …………
social ranking
reputation focused on past and future behavior
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