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Summary PR and Reputation Management - CH1, 4-13
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Summary of Cornelissen's book Corporate Communication of chapters 1, 4 to 13.
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📘1 - Defining Corporate Communication
Core task of Corporate Communication: building, maintaining, and protecting the company’s reputation. It
focuses on the organisation as a whole and how it is presented to all key stakeholders (internal and
external).
Scope and definitions
“Corporate Communication is 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 organisation is dependent.”
Complex in nature (especially with wide-ranged companies (in products, services, geographically)).
Integrated approach
Strategic interests of the organisation at large
Mission Overriding purpose in line with the values and expectations of stakeholders.
Vision Desired future state: the aspiration of the organisation
Corporate
Statement of overall aims in line with the overall purpose
objectives
Strategy The way or means in which the corporate objectives are to be achieved and put into effect
Corporate
The profile and values communicated by an organisation; how it aims to be known
Identity
The immediate set of associations of an individual in response to one or more signals or messages
Corporate image
from or about a particular organisation at a single point in time
Corporate An individual’s collective representation of past images of an organisation (induced through
reputation communication or past experiences) established over time
Any group or individual who can affect or is affected by the achievement of the organisation’s
Stakeholder
objectives, operation, and performance.
A defined group for whom a product is or may be in demand (and for whom an organisation
Market
creates and maintains products)
Communication The tactics and media that are used to communicate with internal and external groups
The act of coordinating all communication so that the corporate identity is effectively and
Integration
consistently communication to internal and external groups.
Trends in corporate communication
1 - Defining Corporate Communication 1
, Trends and developments in corporate communication
How organisations communicate has changed but the the principles of strategic messaging and
reputation management remain the same.
Advocacy: An attempt to try to change stakeholder expectations and public opinions on an issue through
issue campaigns and lobbying
Authenticity: The quality or condition of communication (e.g. leadership communication) being authentic,
trustworthy or genuine
Corporate communication: The function and process of managing communications between an
organization and important stakeholder groups (including markets and publics) in its environment
Corporate identity: The profile and values communicated by an organization/the character a company
seeks to establish for itself in the mind of its stakeholders, reinforced by consistent use of logos, colours,
typefaces, and so on
Corporate image: The way a company is perceived, based on a certain message and at a certain point in
time/the immediate set of meanings inferred by an
individual in confrontation or response to one or more signals from or about a particular organization at a
single point in time
Corporate reputation: The general evaluation of an organization (compared to its nearest rivals), leading
to likeability and preference
Integration: The act of coordinating all communications so that the corporate identity is effectively and
consistently communicated both to internal and external groups
Market: A defined group for whom a product is or may be in demand (and for whom an organization
creates and maintains products and service offerings)
Mission: A company’s overriding purpose in line with the values or expectations of stakeholders
Stakeholder engagement: The process of actively involving stakeholders in communication, listening to
them and allowing them to have a say in corporate decision-making
Transparency: A state where the image or reputation of an organization held by stakeholder groups is
similar to the actual and/or projected identity of an
organization
Vision: The long-term aims and aspirations of a company for itself
1 - Defining Corporate Communication 2
, 📘
4 - Stakeholder Management and
Communication
Stakeholder management requires that managers think strategically about their business overall and about how they can
effectively communicate with stakeholders.
Stakeholder management
From neo-classical economic theory (purpose of organisations is to make profit in their accountability to themselves and
shareholders) to socio-economic theory (’who counts’ besides shareholders who are considered important for the
continuity of organisation and welfare of society).
Input-Output model of strategic management
Stakeholder model of strategic management
Input-output model: power lies with the organisation, on which the others are dependent. Relationships are only financial.
Stakeholder management: all persons or groups who hold legitimate interest in an organisation do so to obtain benefits
without priorities. Mutual dependencies.
An organisation needs to be considered ‘legitimate’ by market and non-market stakeholder groups (includes
accountability of performance in social and environmental terms) → engage with stakeholders for instrumental
(connection between stakeholder management and corporate performance) and normative reasons (underlying
concepts, like rights, social contracts, morality)
The nature of stakes and stakeholders
Stakeholder: any group or individual who an affect or is affected by the achievement of the organisation’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 of different groups are varied and may be at odds with one another, putting pressure on the organisation to
balance interests.
Three types of stakes:
Equity stakes: held by those who have direct ownership of the organisation
Economic or market stakes: held by those who have an economic interest, but not ownership
Influencer stakes: held by those who do not have the above mentioned, but have interests as consumer advocates,
environmental groups etc.
Is the stakeholder group:
Primary: important for financial transactions and necessary for an organisation to survive
4 - Stakeholder Management and Communication 1
, Secondary: influence/affect or are influenced/affected by the organisation and are not essential for its survival in
strictly economic terms. They do have moral/normative interest and have the capacity to mobilize public opinion
about performance.
a. Contractual: some form of legal relationship for the exchange of goods/services
b. Community: relationship is non-contractual and more diffuse, but real in terms of impact.
Stakeholder communication
Provide stakeholders with the type of information about the company’s operations that they have an interest in.
Who are the stakeholders?
What are their stakes?
What opportunities and challenged are presented to the organisation in relation to these stakeholders?
What responsibilities does the organisation have to all its stakeholders?
In what way can the organisation best communicate with/respond to these stakeholders and address these
stakeholder challenges and opportunities?
Stakeholder salience model:
Salience: how visible or prominent a stakeholder is to an organisation based on the
stakeholder possessing one or more of three attributes: power, legitimacy, urgency.
Together, these three attributes form seven different types of stakeholders:
Latent stakeholders (with only one attribute)
1. Dormant stakeholders: those who have the power to impose their will on others
but because they do not have a legitimate relationship or an urgent claim, their
power remains dormant.
2. Discretionary stakeholders: those who possess legitimate claims based on
interactions with an organisation but have no power to influence, nor urgency
3. Demanding stakeholders: those who have urgent claims, but neither the power,
not legitimacy to enforce them
Expectant stakeholders (with two attributes)
4. Dominant stakeholders: those who have both powerful and legitimate claims, giving them strong influence
5. Dangerous stakeholders: those who have power and urgent claims, but lack legitimacy
6. Dependent stakeholders: those who lack power, but have urgent and legitimate claims
7: Definitive stakeholders: Possess all three
Dominant and definitive stakeholders need to be communicated with on an ongoing basis.
The power-interest matrix:
Categorise stakeholders on the basis of the power that they possess and the extent to which they are likely to have or
show an interest in the organisation’s activities.
4 - Stakeholder Management and Communication 2
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