This document contains the required readings and lecture notes of the Communication Science course 'Corporate Communication'.
Required readings include, among others:
Cornelissen, J. (2017). Corporate Communication: A Guide to Theory and Practice. London: Sage.
and: Van Gorp & van der Goot, Vos....
Week 1
Reading
Chapter 1
Corporate communication: a management function that offers a framework for the effective coordination
of all internal and external communication with the overall purpose of establishing and maintaining
favourable reputations with stakeholder groups upon which the organization is dependent. It requires an
integrated approach: focuses on the strategic interests of the organization at large (not just specialised
departments) and how the organization is presented to all of its key stakeholders, internal & external.
- Mission: general expression of the overriding purpose of the organization, ideally in line with the
values and expectations of major stakeholders and concerned with the scope and boundaries of
the organization. ‘What business are we in?’
- Vision: desired future state of the organization. Aspirational view of the general direction that the
organization wants to go in, as formulated by senior management, and that requires the energies
and commitment of members of the organization.
- Objectives: more precise (short-term) statements of direction – in line with the formulated vision
– which are to be achieved by strategic initiatives or strategies.
- Strategies: involve actions and communications that are linked to objectives and are often
specified in terms of specific organizational functions (e.g. finance, operations, human resources).
- Key to having a corporate communication strategy is the notion of a corporate identity: the basic
profile that an organization wants to project to all its important stakeholder groups and how it
aims to be known by these various groups in terms of its corporate image and reputation.
In the past, communication disciplines were fragmented: led to sub-optimization (only optimize own
performance and not of organization as a whole counterproductive). When these were consolidated
into one or a few departments, organizations were able to provide strategic direction to all of their
communication with different stakeholders from the interest of the organization at whole.
Many organizations therefore instead developed procedures (e.g. communication guidelines, manuals)
and implemented coordination mechanisms (e.g. council meetings, networking platforms) to overcome
this kind of fragmentation and coordinate their communication on an organization-wide basis.
Another reason for consolidation of communication is the fact that organizations started ‘positioning’
themselves in the minds of stakeholders, through corporate ‘identity’, ‘branding’ and ‘reputation’. Key
downside is that it assumes that the minds of stakeholders can be controlled: but they’re active agents. It
suggest a linear model, as opposed to a joint activity
,Another break with the ‘positioning’ model lies in the principle that organizations need to ‘engage’
individual stakeholders through different platforms, in addition to addressing them as an audience. The
focus with ‘engagement’ is not merely on shaping opinions or perceptions, but on the organization being
‘transparent’ and acting in character in order to bring across its distinctive identity and in a way that
fosters individuals to become genuine advocates and act in their favour.
Until 1970s: communication was largely used in a tactical support role for other functions such as finance
and marketing in the organization, (e.g. announce corporate decisions, publicize corporate events or
promote products and services: conduit form).
The 1980s: communication used strategically to realize the organization’s objectives and to build
reputational capital with key stakeholders (key to its continued success and survival): ‘positioning’.
2000s-now: Gradually evolving into a new era of ‘stakeholder engagement’ which brings with it new
points of emphasis around interactivity, authenticity, transparency and advocacy.
Chapter 4
Organizations, they realized, have responsibilities towards their stakeholders and society at large. Thus
stakeholder management theory emerged. It requires that managers think strategically about their
business overall and about how they can effectively communicate with stakeholders, including customers,
investors, employees and members of the communities in which the organization resides.
Old neo-classical economic theory
purpose of organization is to make profits in their
accountability to themselves and shareholders and that by
doing so, they contribute to wealth and all of society.
Input-output model: organization is at the centre, investors,
suppliers and employees contribute input. The input of these
transforms into output for the benefit of costumers. They’re
all rewarded with appropriate compensation through the
system, but bulk of benefits will go to customers. The organization has the power, the other parties are
dependent and the interests are only financial.
New socio-economic theory
‘who counts’ extends to other groups besides shareholders who are important to the organization’s
continuity and the welfare of society.
Stakeholder model: assumes that all groups with legitimate interests in
an organization do so to obtain benefits and there is no priority for one over
the other. All groups have a legitimate ‘stake’ in the organization (whether
financial or otherwise), which are recognized. Relationship is non-linear, its
interdependent. A significant feature is that the organization needs to
be considered ‘legitimate’ by both ‘market’ and ‘non- market’ stakeholders
beyond financial accountability also in social and environmental terms.
This is for instrumental (connection between stakeholder management and
corporate performance e.g. revenue) and normative reasons: underlying
concepts such as rights, morality, etc.
Stakes
Stakeholder: any group or individual who can affect or is affected by the achievement of the
organization’s purpose and objectives.
,Stake: an interest or a share in an undertaking, that can range from simply an interest in an undertaking
at one extreme to a legal claim of ownership at the other extreme’. Stakes vary and may be at odds
Different ways of classifying stakes
- Equity stakes: those with direct ‘ownership’ of organization shareholders, directors, interest owners
- Economic/market stakes: those w/ economic interest employees, customers, suppliers, competitors
- Influencer stakes: those w/ interests as consumer advocates, environmental groups, trade organizations
A way of looking at stakes is by assessing if the interest of a group is economic or moral in nature.
Primary groups: important for financial transactions and necessary for organization’s survival.
Secondary stakeholders: those who generally affect/are affected by the organization, but not engaging in
financial transactions nor essential to survival in economic terms. They have moral/normative interests
and the capacity to mobilize public opinion.
Another way of viewing stakes is considering whether stakeholder ties with an organization are
contractual or not (i.e. community).
- Contractual: groups w/ legal relationship w/ the organization in exchange for goods/services
(consumers, employees, suppliers). Interest is economic in providing services/extracting resources
- Community: groups with non-contractual and more diffuse relationships with organization
(government, trade associations, media). Still import in providing authority for an organization to
function, setting rules& regulations and monitoring and publicly evaluating their conduct.
CSR: corporate social responsibility philanthropy, community involvement, ethical and sustainable
practices. The drive for CSR came with the recognition o the need for business to deliver social value.
Stakeholder communication
Information to obtain/questions to answer in stakeholder communication:
- information needs of stakeholders (based on who they are, their stakes, our responsibility)
- their specific positions (on an issue/in relation to corporate activity)
- what communication strategy to use.
Stakeholder salience model
In this model, stakeholders are identified and classified based on their salience to the organization.
Salience: how visible or prominent a stakeholder is to an organization based on the stakeholder
possessing one or more of three attributes: power, legitimacy (of claim) and urgency (i.e. call for
immediate action). seven different stakeholders
Latent stakeholders (have only 1 attribute)
- Dormant stakeholders: have power to impose their will (prospective customers)
- Discretionary stakeholders: possess legitimate claims (recipients of corporate charity)
- Demanding stakeholders: have urgent claims can be bothersome (lone demonstrator)
Expectant stakeholders (two attributes)
- Dominant stakeholders: have powerful and legitimate claims. Examples are groups who regularly
transact of have strong binding relationships (customers, employees, owners, big investors)
- Dangerous stakeholders: have power and urgent claims. Seen as dangerous as they may resort to
coercion or even violence (wildcat strikes, employee sabotage, terrorism)
, - Dependent stakeholders: have urgent and legitimate claims. Rely
on power of others to carry out their will. (community in which a
plant of a corporation is based, rely on lobbyists, media..
Definitive stakeholders (all three): have legitimacy, power and
urgency. Shareholders, normally dominant stakeholders, can become
active when they feel their legitimate interests are not being served by
the managers of the company.
Dominant employees need to be communicated with on an ongoing
basis (i.e. newsletters, corporate events, intranet for employees,
advertising, financial reports, annual meetings). Definitive stakeholders
need immediate communication. Latent stakeholders do not need
communication on ongoing basis.
Power-interest matrix
Another mapping device is based on the power they possess and the
extent to which they are likely to have/show an interest in the
organization’s activities. Based on this, appropriate communication
strategies can be formulated.
- D, key players, need to be communicated with constantly
- B, high interest, low power, need to be kept informed, so they
stay committed and may spread positive word-of-mouth.
- C, lack of interest but high power, are tricky they might
exercise power and might move to high level of interest (D)
Stakeholder communication
strategies
1. Informational strategy: informing through press releases, newsletters, reports. They create
awareness of decisions and contribute to understanding of the reasons for said decisions
2. Persuasive strategy: organization, through campaigns, meetings and discussions tries to change
and tune the knowledge, attitude and behaviour of stakeholders, favourable for the organization.
They ‘sell’ a particular kind of understanding of their decisions, values, and products/services.
3. Dialogue strategy: both parties mutually engage in an exchange of ideas and opinions. Involves
process of coming to mutual understanding and decisions. Difference: involving = soliciting their
input & feedback thru social media/convo, engaging = ongoing commitment (joint partnership)
The use of each of these strategies depends on salience and power interest of a stakeholder and the need
for active engagement to build long-term relationships.
- Informational is one-way and symmetrical. One way, because only making info available.
Symmetrical, because no attempt at persuasion regarding understandings, attitudes or behaviour
- Persuasive is two-way and asymmetrical. Asymmetrical because effects of communication are
unbalanced in favour of organization. The organization does not change as a result of
communication with its stakeholders: it attempts to change their attitudes and behaviour.
- Dialogue is two-way and symmetrical. Flows two-ways, but the goal is to exchange views and
reach a mutual understanding. Free exchange of info, let each other express themselves.
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