Corporate Communication and the delivery of “Bad News”

Transcription

Proceedings
Conference on Corporate Communication 2008
June 6 - 9, 2008
Wroxton College

Wroxton, England
Sponsored by Corporate Communication International
at Baruch College/CUNY
In association with
Corporate Communications: An International Journal
Michael B. Goodman, Ph.D., Director
Corporate Communication International at Baruch College/CUNY, USA
Associate Editor - North America
Corporate Communications: An International Journal, UK
Christina M. Genest, M.A., M.H.S.A., M.I.A., Associate Director
Corporate Communication International at Baruch College/CUNY, USA
Wim J. L. Elving, Ph.D., Editor
Corporate Communications: An International Journal, UK
Nicholas D. J. Baldwin, Ph.D., Dean
Wroxton College
Fairleigh Dickinson University, UK
© June 2008. Please contact the authors for permission to reprint.
Proceedings of the Conference on Corporate Communication 2008
PROCEEDINGS
Conference on Corporate Communication 2008
Editors
Christina M. Genest
Michael B. Goodman
with the assistance of
Cynthia Chang
Mansura Ghaffar
Corporate Communication International
at Baruch College/CUNY
Contents
Introduction
Michael B. Goodman, Conference General Chair……………………………….….….....v
Conversations in Management: Results from a Danish Survey Study
Helle Kryger Aggerholm, Mona Agerholm Andersen, Birte Asmuβ, Christa Thomsen…1
Organizational Communication in Times of Downsizing: An Explorative Study Among
Danish Corporations
Helle Kryger Aggerholm………………………………...………………………………17
Corporate Re-Branding Process: A Preliminary Theoretical Framework
Mari Ahonen…....…..…………………………………………………………………....31
Employee Identification with Corporate Values within the Danish Windmill Company
NEG Micon – A Study of Both Top Management’s View and Employee Perceptions
Mona Agerholm Andersen..……………………………………………………………...39
Designing an Effective Online Corporate Training Program
Joseph Basso, Suzanne FitzGerald, Alison Theaker……………………………………..53
Collaborative Corporate Social Responsibility: A Case Study Examination of the
International Public Relations Agency Involvement in the United Nations Global Compact
Leslie Simone Byrd……………………………………………….……………………...59
Strategic Role of Corporate Communication for Health Care Providers
Maria De Luca…..…..…………………………………………………………………...77
i
Issues Management: An Exploratory Study of its Perceived Value
for Chief Corporate Communication Managers in the Strategic
Positioning of their South African Companies
Gideon de Wet……………………..…………………………………………………….91
Document Cycling and Gatekeeping: A Case Study of Policy Development
in a Fortune 100 Company
Sam H. DeKay……………..………………………………………………………….…93
Managing Contrary Internal Communication in a Small Company
Krishna S. Dhir……………………...………………………………………………….105
Communication Management in the Netherlands, Trends and Developments
Wim J.L. Elving and Betteke van Ruler…………………….…………………..……...113
Corporate Social Responsibility Advertisements in Brazil and the UK:
A Case of Banco Real and Chevron
Francisca Farache……………………………………………………………………….115
To Be or Not to Be a Crisis Commander: An Explorative Investigation of the
Crisis Management and Crisis Communication Consulting of
Danish Public Relations Agencies
Finn Frandsen and Winni Johansen…………………….………………………………131
Coaching: Leveraging the Art of Communication Across Cultures
Christina M. Genest…………………………………………………………………….133
Corporate Greening 2.0: Five Factors at Play as Executives Zero in on
Climate Change
E. Bruce Harrison…….……………….………………………………………………...149
Pioneering Digital Fair Trade: A New Ethical Brand Licensing Opportunity
Colin Hastings………………………………………………………………...………...155
The National Football League Goes Flat: American Football’s Oct. 28
Experiment in London
Wesley R. Heinel……..………………………………………………………………...161
Sarbanes-Oxley and its Effect on Markets: Investor Relations in an
Increasingly Regulated Global Market
Brian D. Higgins …..……………………………………………………………….…..173
Employees’ Perceptions of Company Values and Objectives and
Employer-Employee Relationships
Lida Holtzhausen and Lynnette Fourie………..………………………………………..181
ii
Credibility Discourse of PR Agencies: A Cross-Cultural Study of
Corporate Ethos on the Web
Maria Isaksson and Poul Erik Flyvholm Jørgensen………………………………...…..193
Relational Corporate Selves – Focus on Multiplicity in Identity Construction
Trine Susanne Johansen………………………………………………………………...203
Managing Projects with CSR in Mind: CSR Knowledge Communication in
Project Management
Constance E. Kampf and Christa Thomsen…………………………………………….217
Communication Structure of the Public Sector in India: An Empirical Analysis
Saroj Koul………………………………………………………………………………229
The Campaign for U.K. Children’s Telivision: Strategies and Impact
Rachel Kovacs………………………………………………………………………….241
Cross-Cultural and Translingual Communication Strategies of Official
Sponsoring Corporations in Beijing Olympics
Miranda Y.P. Lee and Patrick P.K. Ng…………………………………………………253
The State of Leadership in the States: What Businesspeople Say They Value
John S. Leipzig…………………………………………………………………...……..269
Effective Leadership in Crisis: When Should the CEO Step Up to Be the
Organization’s Spokesperson?
Marela Lucero, Alywin Tan and Augustine Pang…………………..………………….279
Internal Communication and Storytelling – Management by Stories
Marianne Wolff Lundholt………...…………………………………………………….299
Internal Communication to Enact Active Communication Behaviour
Alessandra Mazzei……………………………………………………………………...301
Corporate Agenda 21
Cortney C. McDermott…………………………………….…………………………...323
The Perceived Role of Blogging in the Practice of Corporate Communication
Among Top Communicators in South Africa: An Exploratory Study
Corné Meintjes………….........................................……………………………...….....337
European Health Policy on Anti-Tobacco: New Strategic Corporate
Communication Challenges?
J. Paulo Moreira………………………………………………………………………...339
iii
Blancmange Powder and Thermostats in the Experience Economy –
Modern Corporate Theme Parks as Channels of Corporate Communication
Martin Nielsen.................................................................................................................347
Corporate Governance and Corporate Communication: A View from Top
South African Companies
Ilse Niemann-Struweg.....................................................................................................359
The Corporate Gardener: Respecting the ‘Wiki Way’?
Roslyn Petelin and Caroline McKinnon…………………………………………….….361
Who Reads Corporate Websites? A Cross-Cultural Study of Audience Behavior
Irene Pollach….……………………………………….………………………………..369
Project Communication in a Strategic Internal Perspective
Line B. Ramsing………………………………………………………………………..387
Greening Corporate Identity: The Role of Persuasion, Responsibility and CSR
in Online Identity Reporting for a Global Marketplace
Deborah Rolland and Jana O’Keefe Bazzoni...............................................…………...399
From Commercial to Philosophical: An Analysis of the Shift in the Brazilian
Banking Industry’s Corporate Advertising Content
Gilmar J. Santos….…………….……….………………………………………………413
Destination Branding from a Corporate Branding Perspective
Saila Saraniemi and Mari Ahonen……………………………………………………...435
Bernstein’s Communication Wheel Revisited
Alfonso Siano and Maria Palazzo………………………………………………………449
Fortune 500 Corporations in Greater China: Does Having a Chinese Version of
their Name Make a Difference?
Daniel W.C. So and Cindy S. Ngai……………………………………………………..459
Pakistan Women’s Empowerment Group: Overcoming Cultural Barriers for
Social Change
Peter L. Walker…………………………………………………………………………471
Public Attitudes and Personal Concerns: Informing Public Policy –
Engaging Civil Society
Peter L. Walker…………………………………………………………………………477
Engaging Employees with Internal Corporate Communication
Mary Welch…………………………………………………………………………….489
Sepsis! Cognition and Communication in Critical Care: A Narrative Analysis
Michele W. Zak………………………………………………………………………...497
iv
Introduction
Meeting 21st Century Corporate Communication Challenges
Corporate executives have come to recognize that a confluence of events in late 2001 –
the attack on the World Trade Center on September 11, 2001; the collapse of trust in capital
markets after the bursting of the high-tech investment bubble; the implosion of corporate giants in
the wake of the Enron scandals – have fundamentally and dramatically changed the way
corporations build, maintain, and repair relationships with their internal and external constituents.
The exact manner of the change continues to be clearly defined.
In a world full of ambiguity on issues of trade, nationalism, the environment, social
relationships, and an increasingly Balkanized Internet, the hyper-connected communication
technology environment where transparency is becoming wider and deeper, the focus is now,
more than ever, on who corporations are and what they do.
Consider these ten complex challenges facing corporations in the twenty-first century:
• greater media democratization and individual power
• greater disparity between the haves an the have-nots
• greater skepticism and distrust of corporations
• new issues created by the spread of global growth
• increasing changes in the way people work
• greater necessity for corporations to act as diplomats
• growing realization that talent no longer owes loyalty to any corporations
• the understanding that corporate communication is a strategic management function
• increased power of NGOs to influence corporate behavior
• short-term obsession of investors as a business model and focus
[Goodman, Michael B. “Introduction,” Corporate Communications:
An International Journal, (Vol. 13 No. 1, 2008, p.5)]
What should corporations do? How should they behave? Who should join the chief
executive officer in such leadership in this century? CCI’s studies suggest that the chief
communication officer be given the responsibility, and that the strategic functions of corporate
communication offer the right capabilities. Also, note that detailed answers to these questions are
also in two new documents: Sustainability Reporting Guidelines (2000-2006) issued by the
Global Reporting Initiative, and The Authentic Enterprise: An Arthur W. Page Society Report
(2007).
CCI Research Findings from China, the European Union & South Africa
At this conference we will present CCI’s 2007 Corporate Communication Practices and
Trends Study. The briefing will focus on 10 insights from the study -- key corporate
communication function and budget responsibilities, the communication officer’s perceived role
of corporate communication, and responses to open-ended questions related to public diplomacy,
executive compensation, and appropriate management of corporate reputation. The survey was
sent to Fortune 1000 companies and was followed with more extensive interviews.
We will present the results of CCI’s Corporate Communication Practices and Trends: A
China Study 2008 – Phase II completed in association with Purdue University and Prudential
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Financial as research underwriter. Jay Wang, Ph.D., associate professor, Purdue University is the
principle investigator.
Also at this conference Finn Frandsen, Ph.D., director for the ASB Centre for Business
Communication and professor, Aarhus School of Business, Denmark, along with Winni
Johansen, Ph.D., director of study, Executive Master in Corporate Communication, and associate
professor, Aarhus School of Business will discuss findings of CCI’s Corporate Communication
Practices and Trends: A European Union Benchmark Study 2008 undertaken in association with
the ASB Centre of Business Communication, research underwriter.
Finally Gideon de Wet, professor & chair, Department of Communication, University of
Johannesburg, Corné Meintjes and Ilse Niemann-Struweg, lecturers, School of Business and
Economics at Monash University’s South African Campus will present a report of CCI’s
Corporate Communication Practices and Trends: A South Africa Benchmark Study 2008. This
project is underwritten by the University of Johannesburg.
These four studies, taken together, form the first global benchmark for corporate
communication practices and trends.
The CCI Conference on Corporate Communication 2008
The annual CCI Conference on Corporate Communication is a clear opportunity for
corporate communicators to develop professionally and to bring value to their companies. It is
also an opportunity for scholars to share their knowledge and research. It has been the premise of
this conference that relationships among scholars and practitioners are an essential element of the
social glue that binds civilized people together. International meetings are important to build and
maintain trust among professionals with common interests and goals, but who are disbursed
around the world.
It is in this spirit that once again corporate executives and university scholars met in
Wroxton, England from June 6 – 9 to exchange information and explore communication from a
global perspective.
The CCI Conference on Corporate Communication 2008 is intended to:
• Illuminate the interest in corporate communication as a strategic management
function in organizational success
• Explore the influence of global forces on the corporate communication profession as
it relates to theory, practice, roles, processes, and ethics
• Continue as a forum for the exchange of ideas and information among industry and
university representatives
• Indicate trends and provide analysis for communication professionals, university
faculty, and others interested in corporate communication
• Disseminate the conference discussions through the publication of these Proceedings.
Papers will also be considered for publication in Corporate Communication: An
International Journal
The three-day conference features speakers from sixteen countries: Australia, Brazil,
Canada, Denmark, Finland, Hong Kong, Italy, India, New Zealand, the Netherlands, Norway,
Portugal, Singapore, South Africa, the United Kingdom, and the United States.
The papers and presentation summaries that follow reflect the discussion of essential
issues:
• communication management
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corporate governance and corporate communication
issues management
corporate communication leadership
green communication
corporate culture and identity
corporate branding
cross-cultural communication issues
corporate social responsibility
reputation and identity
global corporate relations
crisis communication
new media
corporate communication in Greater China, South Africa, the EU, the U.S.A.
And other issues such as:
• stakeholder activism
• health care communication
• public relations and corporate reputation
• document cycling and gatekeeping
• theme parks as channels of corporate communication
• effect of government relations on markets
• the communication structure of the public sector in India
• communication management in the Netherlands.
And case studies on the Pakistan Women’s Empowerment Group, the National Football
League, corporate advertising, and an association’s development of corporate sustainability
guidelines.
The papers published here were selected based on a peer review process. We are grateful
to the members of the CCI Conference on Corporate Communication 2008 Program Committee
for their insight and expertise in making this conference a success. They are:
Stacey Connaughton, Ph.D., Purdue University, USA
Krishna Dhir, Ph.D., Berry College, USA
Finn Frandsen, Professor, mag. art., Aarhus University, Denmark
Christina Genest, MA, MHSA, Associate Director, CCI at Baruch College/CUNY, USA
John Leipzig, Ph.D., Alma College, USA
Roslyn Petelin, Ph.D., University of Queensland, Australia
Jo-Ann Straat, M.A., Daiichi Sankyo, USA
Pat Scott, Ph.D., University of Pennsylvania, USA
Daniel W.C. So, Ed.D., The Hong Kong Polytechnic University, China
Don Swanson, Ed.D., Monmouth University, USA
AdamYates, M.A., Fujifilm, USA
Dr. Michael B. Goodman, Director
Corporate Communication International
at Baruch College/CUNY, USA
vii
NOTE: The CCI Conference on Corporate Communication 2008 is sponsored by Corporate
Communication International at Baruch College, City University of New York, U.S.A., in
association with Corporate Communications: An International Journal, published by Emerald
Group Publishing Ltd., U.K.. The conference site is historic Wroxton Abbey at Wroxton College
of Fairleigh Dickinson University in picturesque Wroxton Village located 70 miles north of
London in the Cotswolds. For more information on CCI -- Corporate Communication
International, visit its website at www.corporatecomm.org.
CCI -- Corporate Communication International at Baruch College,
City University of New York
CCI was in transition since August 2007 when Michael B. Goodman, CCI Director,
became professor at Baruch College/CUNY, and then assumed the leadership, as director, of their
MA in Corporate Communication Program. Meanwhile, Christina “Tina” Genest, CCI Associate
Director, managed the transition from her office at Fairleigh Dickinson University (FDU) and
periodic commutes to New York City. Then in January 2008 Tina packed up. A U-Haul
symbolized the move from our birthplace to a new environment with broadening possibilities. We
will be forever grateful to the FDU students, alumni, scholars, and administrators who provided
us a home, and who share in our vision and work. We encourage them to stay in touch and
involved.
We are also thankful for our new friends and colleagues at Baruch who have warmly
welcomed us. It’s a bit of a culture shock to move from the FDU’s bucolic Madison, New Jersey
campus to the hub-bub of Baruch College with the Empire State building as your office’s view.
The adjustment has been short lived as we settle in to build new relationships, relevant programs,
and promising research. If you are in New York, you’ll find us at 25th and Lexington. Come pay
us a visit.
viii
Conversations in Management:
Results from a Danish Survey Study
Helle Kryger Aggerholm ([email protected])
Mona Agerholm Andersen ([email protected])
Birte Asmuß ([email protected])
Christa Thomsen ([email protected])
Centre for Corporate Communication, Aarhus School of Business
University of Aarhus, Denmark
The lack of qualified workforce in the Danish labour market means that many Danish companies compete
with each other to attract and retain the best employees. One important management tool to successfully do
so, are conversations in management. Conversations in management have until now been rather less
investigated within the field of corporate communication. This paper wants to contribute to this developing
field of research by presenting the results of a study on conversations in management. The study
investigates how different conversations in management are used in companies strategically to the benefit
of the relations to the stakeholders and the image or reputation of the company. The studied conversations
are: recruitment conversations, job appraisal interviews, sickness leave conversations and dismissal
conversations. The study shows that the companies are aware that the conversations should be used as
tools for implementing the company strategy or values. However, the strategic potential of these
conversations is not fully exploited and specific crucial aspects like employer branding are more prevalent
in recruitment conversations than in the other types of conversation.
Conversations in management play an important role in modern societies where good
stakeholder relations are crucial for the image and the reputation of the company. Conversations
in management are also used as an efficient value communication tool in today’s organisations
which are increasingly run on values and not on rules, and where formal structures are often
replaced by more project-oriented structures.
There have been some studies on the role of conversations in management (BargielaChiappini and Harris, 1997; Clifton, 2006; James, Cunningham and Dibben, 2006). However,
there is still a substantial lack of empirical studies investigating from a corporate communication
perspective how these conversations can be used strategically to the benefit of the relations to the
stakeholders and the image or reputation of the company. In a current project at the Centre for
Corporate Communication, Aarhus School of Business at the University of Aarhus, a group of
researchers is in the course of conducting different studies in order to contribute to a better
understanding of the interrelatedness of workplace conversations and company strategy.
The purpose of this paper is to present results of one study, which is part of the ongoing
project on conversations in management. The aim of the study is to investigate how different
conversations actually are used in companies. The conversations in focus are: recruitment
conversations, job appraisal interviews, sickness leave conversations and dismissal conversations.
The main results indicate that the field of conversations in management is an area that
attracts more and more interest from companies and it is developing and changing rapidly. One of
the main challenges companies see themselves in is how to create and ensure a strong link
between company strategy or values and the conversation itself.
1
Helle Kryger Aggerholm, Mona Agerholm Andersen, Birte Asmuβ, Christa Thomsen
Research context: The Danish labour market
The study is conducted in Denmark and the Danish labour market plays a crucial role for
the importance of these conversations for management. In recent years, the Danish labour market
has been characterized by a substantial lack of qualified workforce. In autumn 2007, about half of
the Danish companies were in lack of qualified workforce (KPMG 2007), a number, which still is
increasing in the beginning of 2008. This means that many Danish companies are currently
competing with each other to attract and retain the best employees. It is highly specialized
workforce like medical doctors, engineers, and specialists working in the financial service sector
that is required most, but also the construction sector in general is in need of more hands. This
lack of workforce results in a complex competition on the labour market to attract the right job
candidates and to make those with adequate qualifications stay in the company. One of the most
recent trends or approaches to reach the employees is employer branding (Backhaus and Tikoo,
2004), which is the sum of activities that organizations put forth in order to influence the
employees to desire to work for them.
The lack of workforce in the Danish labour market has a crucial impact on the
employees’ expectations to their job. Influence and freedom to define the work themselves are
highly appreciated values for Danish employees. Moreover, they expect their company to be a
good place to work with a focus on establishing and maintaining good relationships. As a
consequence, the Danish relationship between leaders and employees traditionally is a very
egalitarian one. In order to meet the employees’ high expectations in this area, many of the
internal conversations at the workplace have a strategic focus on democracy, equality and
employee development. Hence, these organizational strategies and the market situation in general
have an influence on questions of leadership and management and on the four different types of
conversations.
In the case of the recruitment conversations, this means that due to the competition on the
labour market, this type of conversation is no longer considered as a one-way process where the
employer informs the applicant about the required qualifications for the job and its content. It is
rather considered as a two-way process where both employer and applicant have the possibility to
meet each other’s expectations. The conversation enables the employer to learn about the
applicant’s professional qualifications, personal skills, experience, expectations, attitude, beliefs
and personal values. It also gives the applicant an idea of the organisation and the job
requirements, organizational values, practices and opportunities for the applicant for future
development (Ferris et al, 2002). One of the biggest challenges for the employer is to make the
employees identify with the organisation and its organisational values. In other words when a
person’s self-concept contains the same attributes as those of an organisation the person may feel
a stronger commitment to the organisation and consequently stay there for many years (Dutton et
al., 1994).
In the case of the job appraisal interviews, this means that instead of being a measuring
tool for employee performance, thereby focusing on past elements, in Denmark most companies
have a focus on employee development and thereby a focus on future aspects. This also shows in
the terminology for job appraisal interviews, which are called “medarbejderudviklingssamtaler”,
translated into English “employee development conversations”.
In the case of the sickness leave conversations, this means that instead of being a
measuring tool, Danish companies increasingly focus on job retention. This also shows in the
most frequent terminology for sickness leave conversations, which are called
“fastholdelsessamtaler” or “rundbordssamtaler”, translated into English “job retention
conversations” or “round table conversations”, i.e. conversations involving different partners
2
(employee, nearest leader/personnel manager, doctor, consultant and others) who focus on
retaining the “principal” person/the employee.
The dismissal conversation is of both internal and external importance to the company,
calling for a holistic understanding of this type of strategic conversation. The handling of the
dismissal conversation influences the perception of the corporate image internally among the
remaining employees possibly affecting employee retention as well as externally potentially
influencing the companies’ future ability to attract new employees. This has to be seen as a
serious disadvantage in times of scarcity of labour. Moreover, the dismissed employees will
function as corporate ambassadors after leaving the company, so even though the company has
decided that the employee has to leave the company, it is still essential that he or she leaves with
best possible impression. Consequently, the conversation has to be diligently planned and
executed in a professional fashion with respect for all parties involved.
On the basis of the research context presented above, we will now present and discuss the
results of our study.
Research Questions and Survey Design
The aim of our study being to investigate how different conversations in
management are actually used in companies, an on-line questionnaire-based survey was
conducted in December 2007 in 167 of the largest Danish companies. A total of 30 questions
were distributed in two main parts: a) short part with general questions on strategic conversations
in management, b) 4 main blocks of questions on the specific form of conversation. The questions
were similar for all four kinds of conversations – with a few exceptions related to the specific
character of each conversation. Respondents were asked to answer questions related to the
participants, the purpose, the content and the challenges of the conversation, i.e. factors which we
consider as the constituting elements of a conversation.
The theoretical framework of the study is based on theories within Corporate
Communication (Figure 1).
3
Stakeholders
Corporate Identity
Corporate Identity
Recruitment
conversations
Stakeholders
Job appraisal
interviews
Corporate Identity
Organizational
identity
(mission, vision,
culture, values,
strategy)
Dismissal
conversations
Sickness leave
conversations
Stakeholders
Corporate Identity
Stakeholders
FIGURE 1. Corporate Communication Stakeholders -- Cornelissen (2004: 69).
We see the role of conversations in management as crucial for the interrelatedness
between organizational and corporate identity ensuring the link between internal and external
communication. Hence, these conversations constitute an important part in the implementation of
a company’s values and strategy.
Survey Results
Out of 167 questionnaires, 70 were returned, i.e. a response rate of 42 percent. The
questionnaires were mainly returned by HR-directors (77 percent). Of the companies that
answered the survey, more than 40 percent had less than 1000 employees, about 30 percent had
between 1000 and 2,500 employees, and about 20 percent had more than 2,500 employees.
Concerning what kind of conversations the companies conduct, 85 percent have recruitment
conversations, 89 percent have job appraisal interviews, 29 percent have sickness leave
conversations, and 37 percent have dismissal conversations.
The main results indicate that the field of conversations in management is an area of
major interest for the companies and it is developing and changing rapidly. One of the main
challenges companies see themselves in is how to create and ensure a strong link between
company strategy or values and the conversation itself, for example is it possible to use the
conversations as a tool for implementing specific values or a specific strategy.
4
Recruitment conversations
Academic research on the recruitment process has primarily focused on examining what
should be contained in recruitment advertisements to attract potential employees (Mathews and
Redman, 1996; Blackman, 2006). The corporate reputation of an organisation is another key
factor that has been identified to have an important influence on recruitment and retention of
employees in modern organisations (Gatewood et al, 1993; Fombrun, 1996; Cable and Graham,
2000). There also exists a considerable amount of prescriptive literature within the field aimed at
helping managers to find the right person for the job (Carroll et al., 1999). The recruitment
conversation is considered to play a significant role in the recruitment process. If management
makes a wrong decision and employs the wrong person it might turn out to be very expensive for
the organisation. Hence, one of the focus aspects in the prescriptive literature is how management
should improve the interview process in order to employ the right person (Dipboye, 1982;
Barnett, 2008). This type of conversation is the beginning of a future employment relationship
between employer and employee, and thus it may have an impact on the future level of the
applicant’s commitment to the organisation (Ferris et al., 2002).
The findings of the survey concerning how recruitment conversations are practiced in
companies are presented in the following.
Participants
Asked about which organizational members participate in the recruitment conversation,
100 percent indicate that the closest manager often or always participates. 82 percent answer that
the HR consultant always or often is present and 81 percent say that the personnel manager
always or often participates. 51 percent indicate that future colleagues are present during the
conversation, and 17 percent of the respondents answer that top management is present.
Purpose
59 of the responding companies (85 percent) arrange recruitment conversations. In these
conversations, 96 percent of the respondents see the recruitment conversation as having an
influence on the corporate image and reputation of the company. 95 percent of the companies
answer that the main purpose of the conversation is to measure the applicant’s personal values.
This supports the impression that it is important for the employer to know whether the applicant
identify with the organisational values or not. 95 percent of the companies agree that the
recruitment conversation serves as a tool to evaluate the expectations of the applicant to the
organisation and vice versa and 94 percent of the companies focus on the professional
qualifications of the applicant. It is also identified that 93 percent of the companies see the
recruitment conversation as an opportunity to promote organisational values, which again indicate
a clear focus on values in this type of conversation. The survey also shows that 68 percent of the
respondents see the recruitment conversation as a way of building a social relationship between
leader and employee.
Content
Concerning the importance of various issues in the recruitment conversation the
following are identified: the personal qualifications of the applicant (100 percent), the
professional qualifications of the applicant (96 percent), the applicant’s reasons for applying for
the job (96 percent), the applicant’s expectations to the organisation (95 percent), presentation of
the job (94 percent), presentation of the company (84 percent). However, less attention was given
to salary negotiation (35 percent).
5
As a part of the recruitment procedure, 78 percent of the companies answer that they
follow up upon the recruitment conversation after a period of three months and 17 percent answer
that they use the job appraisal interview in this respect.
Challenges
In the qualitative part of the study the companies were asked to define the main
challenges concerning the recruitment conversation. One of the mentioned challenges was the
time aspect. The companies see a challenge in the short time they often have to find and appoint
the right person for a vacant position. According to the responses, the key challenges during the
recruitment conversation are to evaluate the expectations of both applicant and employer and
learn about the professional qualifications, motivation and personal values of the applicant. This
is noteworthy as these aspects are also considered to be the main aims of this type of
conversation. One group of companies also indicate that it is a challenge to learn about the
applicants’ reasons for a job shift, for example prior terminations and forced resignations. This is
interesting as it might be a way of testing the future commitment of the applicant. The companies
also mentioned that another challenge is to conduct the interview so that an equal dialogue
between the applicant and the employer is ensured.
Discussion
This type of management conversation has a high priority, which might have something
to do with the labour market situation. The recruitment conversation has different purposes, but
the most important ones are to learn about the personal values of the applicant, evaluate the
expectations of both parties, learn about the applicants’ professional qualifications and promote
organisational values. Another important aspect is the influence of the conversation upon the
image and reputation of the company. However, these aspects are also considered to be the main
challenges of the conversation, so the study indicate that the companies do not quite know how to
implement these aspects in the recruitment conversation. Another finding is that most of the
companies follow up upon the recruitment conversation after a period of three months, which
indicates that it is taken seriously to integrate and retain the applicant in the company.
Job appraisal interviews
As mentioned before, 89 percent of the companies conduct job appraisal interviews.
Hence, this type of conversation is the kind of management conversation that is used most in
Danish companies.
Participants
Concerning who is participating in the job appraisal interviews, it is interesting to see that
most resources are still used (in line with other studies for example Bülow Management, 1999,
2006) on leaders and permanent workforce. Much fewer resources are used on non-permanent
and hourly-paid workforce. This is noteworthy, as recent studies indicate that more and more
companies see the need to build up close relations also to non-permanent workforce (Bülow
Management, 2006), but this contradicts with the results of this study.
Purpose
Most companies see the main aim of job appraisal interviews to keep competent employees in the
company (95 percent). Moreover, they see the interview as an important device to ensure
competency development of the employees (92 percent). This shows a clear focus on future
6
aspects for the overall aim of the interviews. Only 68 percent of the companies see the interviews
as an important device to measure job efficiency, which is in line with the prior finding, namely
that the focus lies more on future aspects than on past performance. More than 77 percent of the
companies point out that they do not conduct job appraisal interviews simply to live up to the
Danish legal requirements in this area. This again supports the overall impression that Danish
companies actually see and intend to use job appraisal interviews as an efficient tool to increase
value within the company.
Content
Concerning the communication flow, more than 83 percent of the companies regard job
appraisal interviews as an important tool to give feedback to the managers. This indicates an
orientation to the dialogic aspects in the interviews. But only 66 percent state that they are aware
of the importance of job appraisal interviews for the relationship between manager and employee.
And concerning the link between the single conversational event and questions of corporate
image and reputation, only 68 percent of the companies agree upon the fact that job appraisal
interviews support corporate image and reputation. This is crucial, as research on job appraisal
interviews highlights the relevance of these conversations for (re-)defining and
(re-)evaluating social relationships between the manager and the subordinate (Asmuß
forthcoming., Frimann, 2004). If the companies are not aware of this aspect in their strategic
considerations for job appraisal interviews, they risk focusing on one aspect of the job appraisal
interviews, namely the factual outcome, thereby neglecting the chance also to exploit the
opportunity to optimize the social relationship between the interlocutors.
Asked about what kind of issues companies regard as important for a job appraisal
interview, a range of different issues were ranked as crucial: team relations, work tasks, job
satisfaction, personal and professional competence development, link between the individual
employee and company values. It is important to note here that actual concrete work aspects are
mentioned together with questions of bridging between company values and the employee’s way
to interpret these values in his/her daily work.
Challenges
In the more qualitative part of the survey, the companies were asked to define
themselves, what they saw as the main challenges in connection with the job appraisal interview
itself. The main aspects mentioned can be divided into 4 groups, stretching from the operational
to the strategic level. On the operational level, one group sees time limits as a main challenge.
Companies here see a problem in simply finding the time to hold these interviews regularly and to
do a follow-up of the interview on a regular daily basis. On a more strategic level, one group sees
a challenge in actually living up to the kind of conversation that was intended to take place in a
Danish job appraisal interview, namely the dialogue. Words used to express this challenge in the
study were equality, active recipient, openness, trust, and mutual respect. Another group sees the
main challenge in how to develop the concept for the interview, so that it does not become a pure
routine. And yet another group sees as the main challenge, how questions of overall strategy can
find their way into the single conversational encounter, namely the job appraisal interview. It is
noteworthy here, that the question of how to actually conduct the interview so that it lives up to
the strategic considerations about the job appraisal interview being an open dialogue between
equal partners, is one major point. Related to that, many companies highlight the challenge of
how to bridge between overall strategy and values on the one hand, and the job appraisal
interview on the other. This is very interesting, as many companies state at the same time, that the
7
bridge between overall strategy and the single conversational encounter is what they see as one of
the main aims of the job appraisal interviews.
Another interesting outcome of the qualitative aspects of the survey deals with the way
the companies themselves entitle job appraisal interviews. Here, the choice of terminology might
be seen as an indication of how job appraisal interviews actually are intended to be used in the
company. Five different groups could be identified. There are the traditional ones that use terms
that are variations of the political correct version of job appraisal interviews in Danish (note: the
official term in Denmark is “medarbejderudviklingssamtaler”- in English: employee development
conversations). Here, terms like Personnel Conversations, Yearly Employee Conversations, and
Employee Conversations are mentioned. There is a second group that chooses a clear focus on
aspects of development. Here, terms like Employee Development Dialogue, Personal
Development Planning (PDP), Individual Development Planning, and Personal Development
Interview (PDI are mentioned. In a third group, the focus moves from aspects of development to
aspects of knowledge (KIP-conversations, KIP=Knowledge, Insight, Perspectives, in Danish this
is: VIP-samtaler (Viden Indsigt Perspektiv)). In the last group, the focus is on what kind of
conversation is intended, namely a dialogue, an interview or a pure conversation. Here terms like
Dialogue Conversations, Employee Development Dialogue, and Personal Development Interview
can be mentioned. At last there is a rather diverse group that by using an alternative terminology
tries to outline new ways for the traditional concept of job appraisal interviews, like: Goals,
Performance and Appraisal; Expectation Negotiation Conversations (in Danish:
forventningsafstemnings-samtale); Feedback Performance Management Process. In sum, the
different terminology indicates that even though job appraisal interviews are a well-developed
and long-existing form of management conversation, it is a management conversation that is
constantly on its way to be adjusted to meet the needs of the company and society.
Discussion
The study on job appraisal interviews has shown that this type of management
conversation is a well-established one conducted by most Danish companies. The study also
indicates that job appraisal interviews are supposed to fulfill a variety of needs: they have to
ensure employee development and hence employee satisfaction, they are the places, where
strategy should be personalized through the encounter between the manager and the subordinate
and relational aspects between the manager and the subordinate come into play here. Companies
are aware of the relevance of these different aspects for the interview, but the study clearly
indicates that the companies are unsure about how precisely to implement these aspects in the job
appraisal interview itself.
Sickness leave conversations
The sickness leave conversation was developed in Denmark in the middle of the 1990s on
the initiative of public authorities, trade unions and others (Pedersen et al., 2000), and it is used
voluntarily today by big Danish companies who have felt a slight pressure to take a social
responsibility. This development can be seen as a need for companies to establish and maintain
good relations to their stakeholders (Freeman, 1984). In this light, the sickness leave conversation
can be seen not only as a personnel political tool but also as a socially responsible activity and a
stakeholder dialogue. Until now, the roundtable sickness leave conversation has only been treated
in the practice literature where it is described as a meeting where a sick employee or an employee
with complex health problems discusses his situation with the employer and other involved
8
1
persons (see for example www.virk.dk, www.via2000.dk , Pedersen et al., 2000). Our study
seems to indicate that this definition is not sufficient (see also Thomsen, forthcoming.).
Only 19 (out of 70) companies conduct sickness leave conversations. Hence, this form of
conversation is the kind of management conversation, that is used less in Danish companies. 14
respondents (out of 19) say that the roundtable sickness leave conversation has high – or some –
priority in comparison with an ordinary sickness leave conversation. Due to the small amount of
answers, the numbers in this section will refer to the actual amount of answers instead of referring
to the percentage, like in the other sections of the study.
Participants
There are many other participants in the roundtable sickness leave conversation than the
person who it concerns, i.e. the employee. 17 respondents (out of 19) indicate that the nearest
leader always or almost always participates in this type of conversation. 9 say that it is the
personnel manager or the HR-manager who always or almost always represents the company. In
some situations, the employee is supported by the representative of the personnel. 10 respondents
say that the representative of the personnel always or often participates in the conversation. 7 say
that this representative seldom or never participates in the conversation. In other situations, the
municipal authority participates and is represented by a social adviser. Five respondents say that
this is always, or often, the case. By comparison, 11 say that the municipality seldom, or never,
participates. The practising doctor participates in rare cases (3), or he never participates (10). 4
respondents say that a neutral consultant sometimes participates in the conversation (4) or always
participates in the conversation. 10 say that a neutral consultant never participates in the
conversation. Colleagues never participate (9), seldom participate (5) or often participate (1).
Others never participate (3), often participate (2) or seldom participate.
Our interpretation of the answers regarding the participants in the roundtable sickness
leave conversation is that there are many types of roundtable sickness leave conversations, for
example the small roundtable sickness leave conversation (employee, nearest leader or HRmanager and consultant or other representing the public authority/municipality) and the big
roundtable sickness leave conversation (with many different participants).
Purpose
Nearly all respondents (17 out of 19) consider the conversation as a job retention tool.
Moreover, they see it as a possibility to create a good working environment and ensure good
working conditions (15 out of 19). At the same time, they seem to agree (17 out of 19) that the
conversation signals that the company gives a high priority to caring for the employees.
This means that the respondents consider the sickness leave conversation as a conversation with
more than one purpose.
Content
Our study shows that the roundtable sickness leave conversation is primarily used for
different kinds of clarification. Furthermore, its function as a basis for decision is highlighted. 14
respondents out of 19 say that the sickness leave conversation is primarily used for clarification
of the resources of the employee, whereas 2 say that the conversation is sometimes used for this
purpose. 13 respondents say that the conversation is primarily used for clarification of the desires
1
www.via2000.dk (Danish Information System on Job Retention, Center for Aktiv BeskæftigelsesIndsats,
CABI [The Danish National Centre for the Inclusive Labour Market].
9
of the employee, and 3 say that the conversation is sometimes used for this purpose. 11 say that
the conversation is used for clarification of the expectations of the company, whereas 4 say that
this is sometimes the case. 1 says that this is seldom the case. The sickness leave conversation is
also used for clarification of legal or insurance questions. 1 respondent says that this is often the
case, 5 say that this is sometimes the case, and 10 say that this is only the case in rare cases.
Furthermore, the conversation is used for clarification of work environment questions. 5 say that
this is often the case, 8 say that this is sometimes the case, and 4 say that this is seldom the case.
Finally, the conversation is used for clarification of practical problems. 7 say that this is often the
case, 8 say that this is sometimes the case, and 1 says that this is seldom the case.
We see that the function of the sickness leave conversation as an open forum for
decision-making is highlighted by the respondents. This also shows in the answers to the
questions related to the result of the conversation. Here, the respondents paint a picture of a
conversation which leads to many different kinds of agreement, for example an agreement on
when the employee can begin to work. Twelve respondents say that this is often the case, three
say that it is always the case, and one says never; an agreement on new work tasks. 12
respondents say that it is often the case, 3 say that it is rarely the case and 1 says that it is always
the case, or an agreement on internal redeployment. 9 respondents say that this is seldom the case,
whereas 7 say that it is often the case. The roundtable sickness leave conversation can also lead to
an agreement on job change. 10 respondents say that it is rarely the case, whereas 6 say that it is
often the case or an agreement on continuing education or further training. 11 respondents say
that this is seldom the case, 2 say that it is often the case and 2 say that it is never the case. Other
possibilities are to make an agreement on leave of absence. 12 respondents say that this is seldom
the case, whereas 2 say that it is never the case or an agreement on special considerations job. 10
respondents say that this is rarely the case whereas 6 say that it is often the case; an agreement on
a partial fit-for-duty report is also an option. 9 respondents say that this is often the case, 5 say
that it is seldom the case, and 1 says that it is never the case; an agreement on retirement: 12 say
that this is seldom the case, 2 say never and 1 says that it is often the case; other agreement: 1
says that this is seldom the case.
On the basis of this, we conclude that the roundtable sickness leave conversation seems
to be a fairly open conversation or a conversation with many different “outlets”. Much effort
seems to be made in order to find a flexible arrangement.
The concrete result of the roundtable sickness leave conversation is often a plan. 7
respondents say that this is always the case, 7 say that it is often the case, and 2 say that it is
seldom the case. The plan may contain an agreement on a second conversation. 9 respondents say
that the first conversation is always followed by a second conversation, 7 say that this is often the
case, and 1 says that it is seldom the case.
Challenges
In the qualitative part of the survey, the respondents indicate that the sickness leave
conversation is a challenge to the organization. One of the major challenges is related to the
resources of the organization. One respondent says that it is not evident that the organization
disposes of sufficient HR and managerial resources to participate in the conversation. Another
respondent says that it is not always easy to motivate the nearest leader to take the initiative to
these difficult conversations. Some kind of managerial support is crucial for the successful
implementation of this type of conversation. A second challenge is related to the relationship
between the manager and the employees in general and the sick or absent employee in particular.
One respondent says that it is a challenge to persuade the sick or absent employee to participate in
the roundtable sickness leave conversation. It is for example very important to signal to the
10
employee that the conversation will be conducted as an open dialogue and that the purpose is to
reach a constructive solution for both parts. In this relation, several respondents indicate that
honesty and intimacy must be governing concepts in the sickness leave conversation. Only in this
way is it possible to get all the facts on the table. The third challenge to the organization
highlighted by several respondents is to reach a mutually satisfactory solution, a challenge which
is even bigger, when the employee is partly unable to fulfill his obligations or do his job. One
respondent explains that this challenge or dilemma consists in "maintaining the business-oriented
perspective while at the same time paying attention to human-oriented aspects".
The statements of the respondents clearly show that the sickness leave conversation is a
challenge to the organization. More precisely, it is a challenge to the organization's profit
objectives, moral standards and communication strategy.
Discussion points
The study on sickness leave conversations has shown that this type of management
conversation is not a well-established one. Sickness leave conversations are only conducted by
very few Danish companies (19), and there are many different forms or definitions of sickness
leave conversations. However, our study also seems to indicate that this form of management
conversation will gain greater popularity in the future. Some respondents have indicated that they
are on the company program for the year to come.
The main challenges are linked to the purpose of the roundtable sickness leave
conversation. How to manage for example the interrelatedness between effectiveness and social
responsibility or between discipline and care in the actual conversation? Companies are aware of
the relevance of this dilemma for the sickness leave conversation, but the study clearly indicates
that they are unsure about how precisely to tackle it in the roundtable sickness leave conversation
itself.
Dismissal conversations
When we use the term dismissal conversations in this paper, we refer to unilateral
disengagements (Davis, 1973), in which only one party seeks to end the relationship. Opposed to
bilateral disengagement, in which both parties desire to end the relationship, the unilateral
dismissal may require direct, confrontational, disengagement strategies because these may be
attempts to bring the relationship to a “sudden death” (Cox and Kramer 1995). Most writings on
the dismissal process are prescriptive works designed to guide managers in their efforts to
terminate employees (Coulson, 1981; Granholm, 1991; Sweet 1989), and not a lot of scholarly
work has focused on the elements and dynamics of the dismissal conversation in itself. As a
result, the majority of the literature within the field is written by and for practitioners with a focus
on managing legal requirements and avoiding lawsuits thereby failing to present a theoretically
based account of communication during the termination process (Cox and Kramer, 1995).
Although some research has investigated the communication in relation to voluntary turnover
(Jablin, 1987; Allen, 1996; Scott et al., 1999), little empirical research examines how employers
communicate with employees during the dismissal process. However, this part of management
communication is extremely relevant, since a dismissal puts the human resource policy of the
organisation and managements’ communicative abilities to the test. It is important to ensure
coherence with the overall organisational strategies and values, not only in relation to the
dismissal conversation in it, but also with regards to the subsequent relation between management
and employee. As the employee finds new career paths and time passes, the actual dismissal is
11
forgotten. However, the way in which the person is dismissed, is never forgotten accentuating the
importance of the dismissal conversation.
A unilateral disengagement can be the last resort for various reasons. On one hand, an
organisation can find itself compelled to lay off an employee, when it after informal or formal
employee counselling, documented employee counselling becomes apparent that the individual
either professionally nor personally can or will perform the job in an appropriate manner. On the
other hand, the organisation can also be forced to part with employees due to disappointing
financial reasons, strategic reorientation, market conditions or poor management (Aggerholm,
2008). It is the last type of dismissal conversation that poses the most management challenges.
The logic that binds the strategic management conversations together in the daily life is the
mutual perspectives, goals and aspirations in the close relation between manager and employee.
The dismissal conversation constitutes a radical disruption of this relation as the perspectives are
suddenly opposed as the ways are parted. The dismissal conversation puts not only strains on the
redundant employee but also on the manager responsible for conveying the message of
termination properly by respecting the employee as well as the corporate image.
Participants
The companies were asked to state which organisational members generally take part in a
dismissal conversation beside the dismissed employee. Of the 44 companies, who indicated that
they make formal use of this type of conversation, 91 percent indicated that the closest manager is
present, while an HR consultant in 77 percent of the companies always or often participates in the
conversation. 32 percent of the respondents indicate that a shop steward is always (13 percent) or
often (19 percent) present.
Purpose
44 companies (63 percent) arrange formal conversations with employees after a
dismissal. Of these, the majority employ this type of conversation as an interpersonal tool
focusing on the employee’s emotional reactions as well as his or her cognitive understanding of
management’s disengagement decision. As to the emotional elements, 93 percent see the main
aim of the conversation as an opportunity for the manager to end the relationship in a decent way,
while 83 percent see it as a possibility to handle the emotional reactions of the employee. 73
percent perceive the dismissal conversation as a way of counselling the employee in moving on
with his or her working life. With regards to the cognitive dimensions of the conversation, 88
percent see it as an opportunity to clarify and explain the reasons for the dismissal. However, the
conversation does not only take on an internal purpose. From a strategic perspective, 75 percent
state that the conversation in addition serves an external communicative purpose as the
respondents believe that the conversations contribute to the sustention of the corporate image and
reputation. Finally, two thirds (66 percent) view the conversation as an opportunity for the
manager to enter into dialogue with the employee.
Content
The responding organisations were asked to weigh the importance of various content
issues in a dismissal conversation, and the different subject matters were ranked as follows:
justification of the reason for dismissal (86 percent), handling of employee reactions (85 percent),
coordination of the remaining employment period after the termination meeting (78 percent),
clarification of severance payment and possible compensations (78 percent), termination of
employment (76 percent), and counselling with regard to future career paths (63 percent). As to
the post-dismissal communication, 15 percent always follow up on the dismissal conversation,
12
while 26 percent often do so. Fifty-two percent of the companies rarely (31 percent), or never (21
percent), offer additional counselling.
Challenges
In the more qualitative part of the study, the companies were asked to indicate what they
see as the most important challenges when handling the dismissal conversation. Their answers
can be divided into three overall clusters. The first challenge is the dismissal conversation in
itself, which should be characterized by dignity, respect and sympathy. As to the content of the
conversation – the second cluster – the responding organisations state the importance of
providing careful explanations of the reasons for disengagement and clarifying the relation
between the employee and the organisation. Finally, the managerial competences constitute a
challenge. The organisations point especially to management’s ability to counsel the disengaged
employee, to create confidence, openness and dialogue between the parties, to generate employee
understanding as to the disengagement decision, and to retain the dismissed employee between
the period of notification and the actual termination of employment.
Discussion
The above mentioned findings clearly indicate that the responding companies attribute
both internal and external relevance to the dismissal conversation since it serves as a tool to
clarify and handle the emotional, cognitive and behavioural effects of the disengagement decision
in relation to the employee as well as an instrument to sustain the corporate image, identity and
reputation. However, the study also shows that there is still room for improvement, since this type
of conversation constitutes special challenges as to management’s abilities to communicate a
difficult message to the employees in a dignified and respectful way.
Conclusions and future research
In our study, we have addressed the role of conversations in management. The
conversations investigated are: recruitment conversations, job appraisal interviews, sickness leave
conversations and dismissal conversations.
On the basis of the results of an on-line questionnaire-based survey, the paper has
discussed the link between company strategy or values and each type of conversation. In the
study, the focus on the participants, the purpose and the content of the different types of
conversations reveals that companies face a major strategic challenge. Our study shows that the
companies are conscious that the conversations should be used as tools for implementing the
company strategy or values. However, it also seems to indicate that the respondents do not always
know how to do it. On the one hand, they highlight the influence of the conversation upon the
image and reputation of the company. On the other hand, they indicate that the conversations are
merely used as a practical tool to attract and retain job candidates and to ensure job satisfaction.
Thus, the strategic potential of the conversations as for example employer branding and
Corporate Social Responsibility is not fully exploited. Finally, our study shows that the different
types of conversations are used in different ways. The focus on employer branding is for example
more expressed for recruitment conversations than for the other types of conversations.
Our research contributes to the general understanding of communication in organisations
and of the difficult link between internal and external communication or between Organisational
Identity and Corporate Identity. For the field of Corporate Communication, these results indicate
that a stronger focus on the strategic dimension of these conversations is needed, rising questions
such as: How do organisations ensure correlation between the various types of management
13
conversation? How is it possible to ensure that the various types of conversations are truly linked
to the corporate values, strategies, and image? How can a dialogue (based on equality, mutual
respect and openness) be achieved in the single conversational encounter? Furthermore, there is a
need to build a theoretical framework to sustain and explain the various conversations and their
relation. These are aspects we would like to pursue further by conducting qualitative studies of
the different forms of conversations. Qualitative studies would include interviews and videotaped
ethnography.
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Aktiv
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16
Organizational Communication in Times of Downsizing:
An Explorative Study Among Danish Corporations
Helle Kryger Aggerholm
[email protected]
The purpose of this article is to clarify how organizations communicate in times of downsizing. To achieve
this, the article offers a review of the extensive literature on downsizing strategies and communication. This
provides a preliminary theoretical framework on the nature of organizational communication in times of
downsizing. Moreover, an account is provided of an explorative, preliminary study among the 200 largest
Danish corporations reporting on their experiences with workforce reductions as well as examining
management activities before, during and after downsizing. In addition, from a theoretical perspective, an
attempt is made to analyze and explain how the various downsizing activities and strategies in themselves
communicate to the remaining employees and how this potentially influences employee motivation and
commitment. On the basis of the theoretical and empirical findings, an alternative understanding of
organizational communication in relation to downsizing is suggested substituting the traditional
functionalistic perspective prevalent in workforce reductions with a broader, constitutive perspective.
Reductions in workforces have been a major trend in both the public and private sectors
over the past decades. Throughout the years studies have continually demonstrated the popularity
of corporate downsizing (Conrad & Poole 1998, Henkoff 1994, Mishra et al. 1998, Schultze
2000). However, in general, the research literature has disclosed a gap between the expected
goals of downsizing and what has been achieved. Kabanoff et al. (2000) has analyzed the effect
of 300 downsizing events in US companies over a period of eight years, and found that
”downsizing, on average, produces no improvement in firms’ performance relative to their
industry or their own performance, except for a short-lived gain in productivity” (2000: 24-25).
Furthermore, Burke og Greenglass (2000) found that two-thirds of companies that downsized
during the 1980s were behind industry averages on a variety of financial and productivity
measures for the 1990s. Consequently, it is appropriate to raise the question why downsizing goes
wrong for many companies? And which factors can explain why companies do not achieve the
results intended by the workforce reductions?
Downsizing constitutes a serious challenge not only to the redundant employees but also
to those employees who remain in the organization. Since the future of the company is based on
the abilities and well-being of the remaining employees, it makes good sense to secure their
commitment, motivation and loyalty. Nevertheless, a range of empirical studies have found that
the remaining employees often react negatively to workforce reductions (Brockner 1988, Davy et
al. 1991, Jick 1979). A plethora of negative survivor reactions have been identified as emanating
from downsizing, including stress and fatigue, dissatisfaction with planning and communication,
lack of reciprocal commitment, greater resistance to change, reduced risk taking and motivation,
absenteeism, reduced loyalty, dissatisfaction, increased uncertainty, lack of retention and lowered
job performance (Armstrong-Stassen 1994, Brockner et al. 2004, Burke & Cooper 2000,
Kozlowski et al. 1993, Noer 2000, Robbins 1999, Tourish & Hargie 2004).
A vast amount of practitioner-oriented literature has been published, advising managers
on how best to approach downsizing (Cameron et al. 1991, Cameron 1994, Feldman & Leana
17
1994, Heenan 1991). Underpinning much of the discussion is the assumption that most
organizations have failed to adequately address the people factor in their dealings with survivors
(Appelbaum et al. 1999, Tourish & Hargie 2004), raising the question whether management
communication strategies may be able to eliminate or at least reduce the above-mentioned
destructive consequences. Several scholars point to the survivor perception of justice as having
decisive influence on their subsequent attitudes and behaviour (Brockner et al. 1995, Brockner
2002, Gopinath 2000, Monippally 2003, Sahdev 2004). Increased communication efforts as well
as employee involvement in all aspects of the implementation process seem to have a significant
effect on survivors’ feelings of justice (Brockner et al. 1990, Greenberg, 1987; Murphy 1994,
Rousseau & Anton, 1988, Tyler & Becker, 1990). Unambiguous and distinctly communicated
reasons for the unavoidability of downsizing (Feldman 1989), a dignified treatment of the
redundant employees as well as the creation of a fair downsizing procedure are all essential
elements for retainment of survivors’ trust and faith in management and the organization (Mishra
& Spreitzer 1998).
Theoretical Framework
Although a substantial literature on downsizing has accumulated over the last decades,
much of what is known is based on organizational experience, thus, making the bulk of our
knowledge descriptive of the normative mechanisms used by organizations to downsize and
prescriptive as to how reductions should be accomplished. The body of literature, therefore, has
several limitations, especially from an organizational communication perspective. Firstly,
downsizing and related phenomena such as communication are often not clearly distinguished.
Much of the practitioner literature seems to assume that destructive organizational initiatives can
be salvaged by the skilled use of communication messages to engineer internal support. The
assumption is that there are no unpalatable messages, just poor communication strategies.
Secondly, as mentioned above, the literature is largely descriptive and prescriptive in nature,
often in the absence of a sound research foundation. Finally, downsizing theory and research has
tended to compartmentalize the phenomenon fragmenting it by different levels of
conceptualization, time-frames, and content areas. There is a need for a more comprehensive,
integrated perspective on the phenomenon and its effect.
Employee reductions are an inevitable part of running a business and should be perceived
as a natural and integrated part of human relations management. However, downsizing constitutes
a great organizational challenge to both the downsized employees, survivors and management.
Consequently, regardless of the motives, targets and strategies of downsizing it is paramount that
the organization thoroughly contemplate the process and its communicative implications for the
entire organization (Appelbaum & Donia 2001, Tourish & Hargie 2004).
The prevalent conceptualization of communication within the field of downsizing is
managerial biased seeing communication largely a mediating device between management
intentions on the one hand and their execution on the other (Appelbaum & Donia 2001, Beam
1997, Brockner 1992). Within this functionalistic, instrumentalist perspective, the moral
properties of downsizing, and its psychological consequences, are largely irrelevant. The
emphasis is on how particular ends will be reached, while the ends themselves are unquestioned
and assumed to be value free (Tourish & Hargie 2004). The intention of this paper is to offer an
alternative perspective on communication in relation to downsizing. By examining management
communication from a constitutive perspective in which communication is constituent of the
organization, it is possible to gain a deeper understanding of the communicative elements at stake
before, during and after employee reductions. Within this understanding managements’ decision
18
Organizatinal Communication in Times of Downsizing:
to downsize can not be separated from managerial communication since strategy in itself conveys
a message to the organizational stakeholders. Consequently, the constitutive perspective
represents an interactional understanding of organizational communication in which
communication first and foremost is conceived as interpretation of messages and creation of
meaning within – and between – the organizational actors (Deetz 2001, Tompkins 1984,
Tompkins & Wanca-Thibault 2001). The dialogic properties of the constitutive perspective have
a transformative impact on management intentions and fundamental notions of what it means to
do business (Deetz 1995a). Communication is regarded as an integral part of the entire
organizational operation since it both reflects and shapes the way business is done.
It is essential to clearly define and recognize the way in which the paper perceives the
concept of downsizing since it has implications for the way in which the communication
strategies and content of the communication in relation to downsizing is studied and understood.
In most scholarly and practitioner-based work, the definition of the term is based on an
ontological realism defining downsizing a deliberate organizational decision to reduce the
workforce that is intended to improve organizational performance (Cameron et al. 1991, Freeman
1999, Hardy 1990, Kozlowski et al. 1993). Although organizational decline processes and
downsizing actions often are closely associated, decline and downsizing are not isomorphic
(Sutton & D’Aunno 1989). The intentional aspect of the organizational response and the objective
to improve performance are what commonly distinguishes downsizing from organic decline in a
given industry or sector (McKinley et al. 2000). Downsizing may occur in the absence of overt
decline processes making it an anticipatory strategic response designed to realign the organization
and improve performance in advance of conditions antecedent to decline (Kozlowski et al. 1993)
in which case the downsizing strategy is termed proactive opposed to reactive. Downsizing
initiatives, which are proactive in nature, are often used with a long-term strategic view.
Opposite, reactive downsizing is conducted without concern for process and outcome consistency
with business strategy, mission, and goals, or with requisite organizational culture and values. It
is more typically associated with immediate short-term efforts at cost containment (Kozlowski et
al. 1993)
Alternatively, from an ontological perspective of nominalism, downsizing could be
defined as the management, planning and execution of dialogical communication processes and
activities in relation to different publics, stakeholders and target groups with an aim to
intentionally reduce the number of people in the organization. Downsizing contains elements of
power, politics and strategy as well as creation of new meaning, and reflects the culture and
values within the organization. By understanding downsizing from the latter perspective, it
becomes increasingly in sync with the constitutive understanding of organizational
communication and the ‘linguistic turn’ (Deetz 2003) by providing a more critical understanding
of downsizing and seeing discourse used by management and employees as the specific way the
world is produced. In his reclamation of the ‘linguistic turn’, Deetz (1995b, 2003) criticizes
contemporary research for applying simplistic communication models “rather than participatory
interaction processes where openly conflictual social formation can occur, producing both voice
and inventive ways of living together” (2003: 426). By adhering to the constitutive perspective
and thereby claiming that everything is communication, it is relevant to study how companies
handle the various elements of the downsizing process in relation to the remaining employees,
and try to map out the level of organizational consciousness as to the messages communicated
through the choice of downsizing strategies and decisions.
Constituting the initial part of a PhD project, which aims at understanding the discoursive
moves of management and remaining employees in relation to downsizing as well as the
perception and interpretation of communication, and ultimately, its effects on employees’
19
motivation, commitment and ability to identify with the organization, the intent of this paper is to
provide an alternative, broader understanding of organizational communication in relation to
downsizing. Based on an explorative, preliminary study among the 200 largest Danish
corporations, the paper has the following main goals:
a) To record the experiences of Danish companies with workforce reductions
b) To examine which management activities take place before, during and after downsizing
c) To analyze from a theoretical perspective how the various downsizing activities and
strategies in themselves constitute messages to the remaining employees and how these
potentially affect employee motivation and commitment
Methodology
To address the research questions, an online questionnaire survey has been carried out
among the 200 largest corporations in Denmark in November 2007. The sample frame has been
derived from the 2006 edition of the Børsen 500, a comprehensive listing of the largest Danish
corporations based on annual accounts, and detailing turnover, net income, net capital, net profit
ration and total number of employees. Of a total of 200 corporations, 33 are holding companies
with no employees, and as a result these have been eliminated from the sample leaving thereby a
total of 167 companies. Of these, 71 firms have answered and returned the questionnaire equating
to a response rate of 42 percent. 49 percent of the responding companies have experienced larger
downsizing within the last five years (see table 1).
TABLE 1 – Study Firms
Number of firms
167
Number of
respondents
Number of downsized
respondents
71
Sample as a
percentage of firms in
sample frame
35
49%
A total of 28 questions have been distributed in four parts: a) general questions aiming at
generating a respondent profile, b) description of workforce reductions with the purpose of
gaining information on aims, frequency and extent of the reductions as well as insight into how
organizations understand downsizing as a strategic tool, c) downsizing strategy covering
identification strategies, implementation strategies, downsizing policies and the perceived effects
on survivors, d) organizational communication in relation to downsizing as a way of generating
knowledge on the organizational thoughts and intentions that underlie the communication in
relation to the reductions. The focus of these questions is mainly on the communication with the
surviving employees.
Four of the survey questions are open-ended. In the treatment of these data, all answers
have been closely read to identify talk relating to communication in relation to downsizing on
basis of which rough categories have been generated. As Kvale (1997) instructs, this stage
includes meaning condensation and coding, thereby generating abstract meanings from specific
statements.
Key Findings and Discussion
Danish companies’ experiences with workforce reductions
20
In accordance with previous studies (Henkoff 1994, Mishra et al. 1998), this survey
supports the notion that one downsizing event seldom comes alone. Over half of the respondents
(57 percent) indicate that they have experienced more than one workforce reduction within the
last five years. One company has even experienced downsizing more than 10 times! 97 percent of
the responding companies see the workforce reductions as part of a long-term corporate strategy
while 80 percent of the companies perceive downsizing as a necessary tool to improve their longterm results. Accordingly, the study indicates that the majority of the companies use downsizing
as a proactive, strategic tool to optimize the organization. The greater part of the companies (51
percent) take on diligent planning and give it careful considerations before embarking on the
reduction process having a downsizing policy or general plan for handling downsizing. As to the
extent of the reductions, 43 percent of the responding organizations have downsized less than 5
percent of the employees, while 57 percent of the companies have downsized more than 5 percent
of the employees. 34 percent have downsized between 5-10 percent, while 9 percent have
downsized between 11-15 percent of the workforce. 6 percent have cut back more than 30 percent
of the employees.
The primary reasons for downsizing have been strategic reorientation (68 percent),
market conditions (45 percent), and disappointing financial results (29 percent). Only 10 percent
of the respondents imputed the necessity to downsize to bad management. Among motivation
scholars there is widespread consent of the remaining employees’ need to receive an explanation
of the rationale behind the decision to downsize or an account of the reasons (Brockner et al.
1990, Feldman 1989, Folger & Skarlicki 1999, Steers & Porter 1991). An insufficient or absent
explanation of the underlying reasons sends a message to the employees that they are considered
to be insignificant and not deservant of respect. Contrary, to give the employees a careful and
detailed account of the reasons behind the decision give them a sense of procedural and
interactional justice (Bies & Shapiro 1987, Brockner et al. 1990, Gopinath & Becker 2000,
Rousseau & Anton 1988) which ultimately affects their motivation positively. Uncertainty and
the need for information can also occur if the reductions are unexpected and contradicts with
employee expectations in the light of organizational culture and previous management practices
(Pyszczynski & Greenberg 1981, Wong & Weiner 1981). In addition, if the reductions appear
avoidable in the minds of the survivors, their legitimacy will be questioned, which can create
uncertainty as to the future management of the company (Brockner et al. 1990). Communication
or lack of communication communicates something in itself and impacts employees’ perception
and acceptance of management decisions. The focus of the responding companies when
communicating with the remaining employees is listed in table 2 below.
TABLE 2: Focus of communication with remaining employees
In the communication with the remaining employees organizations focuses on:
Reasons for downsizing
74 percent
Competitive situation of the organization
60 percent
Company visions
57 percent
Role and importance of the remaining employees in the new organizations 57 percent
Implementation of new strategic initiatives
54 percent
Financial situation of the corporation
40 percent
Criteria for identifying redundant employees
20 percent
Risk of future reductions
17 percent
Career opportunities
14 percent
21
The study shows that 74 percent of the responding companies attach special importance
to communicating the reasons behind the reductions to the remaining employees. Of these, 36
percent state a need for cost reductions, 27 percent attribute reductions to implementation of a
new strategy, 27 percent substantiate it with changes in the organizational structure, and 9 percent
state financial difficulties as the reason for downsizing.
Eighty-eight percent of the respondents indicate that downsizing influences the
motivation of the remaining employees while 59 percent recognize that employee commitment is
affected. 53 percent of the companies say that downsizing affects employees’ trust in
management, 25 percent believe that employee loyalty suffers during periods of downsizing,
while 28 percent indicate that reduction strategies affect management trustworthiness. 50 percent
indicate that downsizing influences employee satisfaction. Consequently, there seems to be a
legitimate organizational problem and its solution is paramount in order for the companies to
achieve the long-term goals which are the objective of the downsizing in the first place.
Target identification
Organizational decisions regarding target identification range from haphazard and
essentially unmanaged reductions to intentional selection of specific employee segments of the
organization to be downsized (Kozlowski et al. 1993). Short term interests in cost savings and
time constraints may lead to reductions that are implemented rapidly and dictated by poorly
articulated criteria (Kolcum 1988). Only 9 percent of the respondents employed what can be
termed across-the-board reductions without specific targeting. Of these, 33 percent of the
companies applied an aross-the-board cut based on seniority using a ‘last-in/first-out’ approach,
while 67 percent spread cutbacks across the organization, which is often regarded as a means of
maintaining a sense of equity among employees (Brockner 1988)
Downsizing may also involve targeting geographic locations such as regions or countries
(Fox & Krausz 1987) or specific sites such as plants or headquarters (Heenan 1989). Although
locations may be targeted through the use of complex decision criteria, in practice they are often
selected in an effort to generate immediate cost savings with little consideration of the long-term
implications for the organization (Hardy 1990). 17 percent of the organizations used location as a
selection criteria.
The identification of specific levels, functions, departments, or positions is assumed to be
associated with more careful planning and evaluation. An organization with long-term objectives
and well-articulated decision criteria is likely to be more judicious in its selection of downsizing
targets. The majority of the responding organizations employed a segmentation strategy to target
the reductions. 83 percent used employee competencies as decision criteria while 74 percent
targeted the employees according to their function within the company. Only 3 percent used the
employee position within the organizational hierarchy as identification. Lastly, 40 percent of the
companies used personal characteristics of the individual employee such as personality (31
percent) and age (9 percent) to target the redundant employees.
These results indicate that the organizations target specific segments in accordance with
strategic objectives and related criteria such as inefficiency, redundancy, or obsolescence, and as
a result, the targeting seems to be given careful consideration by management. However, the
interesting question is whether the employees also perceive the selection criteria as well-reasoned
since lack of understanding of the strategy behind the target identification affects the employees’
perception of procedural and distributive justice (Bies & Shapiro 1987, Brockner 1990, Cobb et
al. 1995, Folger & Skarlicki 1999, Piderit 2000, Rousseau & Anton 1988, Tyler 1990). So
consciously a part of management communication or not, the management choice of
22
identification strategy convey a certain message to the rest of the organization. The study shows
that only 20 percent of the organizations communicate the selection criteria to the remaining
employees.
Implementation strategies
The strategies for implementing downsizing may be selected according to welldeveloped, multidimensional criteria (Kozlowski et al. 1991) or to simple criteria based on
narrowly considered economic issues (Hardy 1987). Greenhalgh et al. (1988) propose that the
various downsizing strategies can be arranged in a hierarchy to reflect the trade-offs between
maintaining employee well-being and maximizing short-term cost savings for the organization
(see figure 1).
Downsizing without
assistance
26 %
Maximizing short-term
cost savings
Downsizing
with assistance
89 %
Involuntary deployment
51 %
Induced redeployment
74 %
Natural attrition
80 %
Maintaining employee
well-being + long-term
cost savings
FIGURE 1: The companies’ use of downsizing strategies as a trade-off between employee well-being
and short-term cost savings
Natural attrition offers the greatest preservation of employee well-being and the least
short-term savings. It involves the natural process of employee flows entering and exiting the
organization (Kozlowski et al. 1993). Of the responding organizations, 80 percent employ this
strategy, while 74 percent use an induced redeployment strategy encouraging employees to
comply voluntarily by the offering of financial incentives to facilitate early retirement. The
involuntary deployment strategy, which is more focused on short-term cost savings and includes
transfer to different job or location, demotion or job downgrading or reduced work schedules, is
applied by 51 percent of the organizations. The last two strategies in the hierarchy involve regular
layoffs. In 89 percent of the responding organizations employees are laid-off, but offered
assistance in adjusting to the termination. Assistance may include outplacement, psychological
counselling and vocational retraining. The most drastic method of downsizing is layoff without
any assistance, which is employed by 26 percent of the companies. The severe downsizing
strategies focusing on short-term cost savings may have unintended effects on survivors,
including decreased morale and commitment, and increased stress and turnover (Hardy 1990), as
23
it sends a message to the employees that their well-being is less important than quick-fix cost
savings. As a result, the choice of implementation strategy in itself sends a management message
to the internal stakeholders.
However, the study clearly indicates that most of the responding organizations use
multiple downsizing strategies in order to also ensure employee well-being. Especially the
employment of natural attrition and induced redeployment indicate that the organizations are
conscious of the negative effects of regular layoffs and their associated messages. Furthermore,
the high percentage of companies who offer assistance to downsized employees indicates an
awareness of CSR; the notion that the organizations feel an ethical responsibility to help the
downsized employees to move on. The CSR-oriented implementation strategies also send an
internal signal as to the organizational ability to demonstrate social responsibility such as respect,
empathy and dignity, ability to listen to employee worries and explain the reasons for downsizing,
having an impact on the feeling of interactional justice among the remaining employees.
Bensimon (1994) has proven that dissatisfied employees can get violent as a response to
workforce reductions. However, they do not react violently because of degradations or layoffs,
but because the entire process in their perception has been humanly degrading.
Organizational communication in relation to downsizing
Both scholars and practioners (Mishra et al. 1998, Tourish & Hargie 2004, Wachtel
2003) have pointed to management communication as decisive for the remaining employees’
ability to feel a sense of control for their future and faith in management’s capability to change
the current situation. When trying to minimize employee uncertainty, management
communication plays a vital role. Of the companies, 88 percent state that they have tried to
remedy fear of future reductions among the remaining employees through conscious efforts. By
categorizing and coding 24 answers given to the open-ended questions “what has the organization
done to alleviate the uncertainty of further reductions among the remaining employees?”, three
overall clusters of communication strategies appeared; value-focused, content-focused, actionfocused. Examples of the categorization strategy are given in table 3 below:
TABLE 3: Examples of the applied categorization strategy
What has the organization done to alleviate the
remaining employees?
Statement
Presentation of the corporate strategy and
implemented
undertakings
at
dialogue
meetings. However, nothing is guaranteed
Maintaining a continuous dialogue with the
employees explaining developments through
honest statements. It creates managerial
trustworthiness to have an open, frequent and
honest dialogue continuously reassuring the
employees that the company aims at improving
the market value of every employee.
By communicating honestly and answering their
questions
Creation of new and more transparent
organizational structure
24
uncertainty of further reductions among the
Categorization of rhetorical strategies
Content-focused
Content-focused
Value-focused
Value-focused
Action-focused
Some organizations apply only one strategy, while others combine several. Seventeen companies
use only content-focused communication, while four organizations convey certainty by use of
values. Three companies indicate that they apply content-focused as well as value-focused
communication. None of the respondents make independent use of the action-focused strategy.
One organization focuses both on content-driven messages and organizational actions, while one
company applies all three strategies in its attempt to reduce uncertainty. However, the companies’
indication of actions as communicating to the remaining employees in terms of conveying
reassurance, support the assumption of communication as constitutive for the organizations. The
organizational use of the three communication strategies are distributed according to figure 2
below.
FIGURE 2: Overall communication clusters
Valuebased
4
3
1
1
Actionbased
strategies
17
Contentbased
strategies
Subsequently, a coding of the various categories hs been conducted. Within the content
based cluster, six different content strategies emerged: re-assurance, no guarantees, current state
of affair, individual employee focus, look-ahead to the future, the past. Examples of the coding
process are given below in table 4.
25
TABLE 4: Examples of the coding process of the content-based cluster
What has the organization done to alleviate the uncertainty of further reductions among the
Content-focused statements
Coding
Presentation of the corporate strategy and implemented
Look-ahead to the future
undertakings at dialogue meetings. However, nothing is
Current state of affair
guaranteed
No guarantees
Continuous dialogue with the employees explaining
developments [and] continuously reassuring the employees
that the company aims at improving the market value of
every employee.
Explanation of the reasons for downsizing
By communicating to the employees that there will be no
further downsizing, and that future reductions will occur
through natural attrition
Current state of affair
Focus on the individual
employee
The past
Re-assurance
Within the value-based cluster, four different strategies emerged: openness, honesty,
trustworthiness and respect. Honesty is the most frequent value applied by the organizations.
Examples of the categorization process are given below in table 5.
TABLE 5: Examples of the coding process of the value-based cluster
What has the organization done to alleviate the uncertainty of further reductions among the
Value-focused statements
Coding
Continuous dialogue with the employees explaining
Honesty
developments through honest statements. It creates
Trustworthiness
managerial trustworthiness to have an open, frequent and
Openness
honest dialogue continuously reassuring the employees that
the company aims at improving the market value of every
employee.
By communicating honestly and answering their questions
Honesty
By communicating visions and plans clearly and honestly.
Respect
We take our employees seriously, and believe that they are
just as smart as management. This approach takes us a long
way…
Concluding Comments
On the basis of the results of the study, the paper suggests a new and broader
conceptualization of organizational communication in relation to downsizing. This research raises
a number of interesting issues to be taken into account when studying organizational
communication in times of downsizing. The findings from the present study indicate the
importance of considering all the management activities in relation to downsizing and
incorporating these consciously in the dialogue between management and remaining employees,
since employee perception and interpretation of the downsizing strategy, ultimately, can influence
the expected results of the very same strategy.
Traditionally, downsizing is viewed from a narrow, functionalistic perspective as an
unpleasant, isolated event in which workforce reductions are seen as a reactive or proactive
26
adjustment of the organization after which it returns to business as usual. The communication
effort is uni-vocal and considered to be an objective phenomenon controlled by management as a
mean to inform the organization about the decision to downsize, the reasons behind the decision,
the new strategy, etc., reducing communication to a vehicle for the transmission of facts. On the
basis of the presented findings, the paper offers an alternative and broader understanding of
organizational communication in times of downsizing where communication is perceived as
constitutive for the organization focusing on the interpretation of messages and creation of
meaning among the various organizational stakeholders. Communication is made up by social
constructions, and is a process, which should focus on the redundant as well as the remaining
employees based on their individual cognitive, emotional and behavioural reactions to the
downsizing decision. It is thereby implied that communication consists of a multi-vocal
interdependency. Table 6 lists the characteristics of the two communication perspectives in
relation to downsizing.
TABLE 6: Two understandings of organizational communication in times of downsizing
Narrow, functionalistic perspective
Broad, constitutive perspective
Organization
Focus on organizational structure
Workforce
reductions
Downsizing as an event and
objective phenomenon
Negative thinking: return to business
as usual
Functionalistic
Focused on facts and information
Combined focus on organizational
structure and culture
Downsizing as a cyclical process and
a social construction
Positive thinking: organizational
learning
Constitutive
Focused on message interpretation
and creation of meaning
Receiver orientation, dialogue
based on the cognitive, emotional
and behavioural reactions of all
employees/stakeholders.
Multi-vocal interdependency
Emergent approach
Focused on all stakeholders
including both the redundant and
remaining employees
Complex
Organizational
communication
Sender orientation
Uni-vocal independency
Planned approach
Focused on the redundant
employees
Reductive
Future Research
The study pinpoints various elements such as downsizing strategies, identifications of
employees to be downsized, reasons for downsizing which have communicative implications for
the remaining employees’ understanding and acceptance of workforce reductions. The author
recognizes, however, that how and why management communication impacts the organizational
members from an employee perspective is not apparent. The survey paints a picture of
managements’ perception of the organizational communication effort in times of downsizing and
as such, it is problematic to read the results as representing the truth, since the study does not
capture the employee interpretation and creation of meaning - a paramount element in the
constitutive understanding of the organizational communication. Consequently, it would be
interesting for future research to investigate and analyse management discourse in times of
27
downsizing as well as provide insight into how employees react discursively to management
communication thereby creating an understanding of the communicative dynamics present in the
organization. In addition, it should be investigated further how the decision to downsize affects
employees’ ability to identify with the organization as well as how the interpretation of messages
and creation of meaning influence the remaining employees’ motivation, commitment, loyalty
and trust in management.
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30
Corporate Re-Branding Process:
A Preliminary Theoretical Framework
Mari Ahonen
Department of Marketing, University of Oulu, Finland
[email protected]
This paper presents a theoretical framework for corporate re-branding as a process. The study suggests
that, generally, corporate re-branding has four main phases; analyzing, planning, implementing and
evaluating. Each of these phases consists of several sub-processes that might be intertwine, or overlapped,
and should not be considered as static. Compared to empirical grounded models published earlier, this
framework concentrates especially on describing the processes more theoretically. However, the process
description lacks empirical evidence, and it should be tested empirically. The paper presents the current
academic knowledge on corporate re-branding, offers preliminary framework for the corporate rebranding process, and suggests, conclusions and further studies.
In discussions of corporate branding with a CEO and a manager of a small business to
business (B2B) company, they revealed plans to change their company’s name. They asked to
know about any theoretical descriptions on how corporate name change – or re-branding –
happens. Some examples include Daffey and Abratt, 2002; Kaikati, 2003; Daly and Moloney,
2004; Muzellec, 2006. The phenomenon relatively new.. Interestingly, the descriptions are
empirically grounded case studies lacking the more general theoretical background. However, to
provide an answer for these managers, and this paper offers a theoretical framework on how
corporate branding happens.
Academic Information on Corporate Rebranding
Some descriptions on corporate re-branding as a process have been established. A study
of Daffey and Abratt (2002) considering South-African bank and Kaikati’s (2003) description
about Accenture’s re-branding are interesting narratives (Langley, 1999) on how these companies
executed their re-branding. Another important description is Daly and Moloney’s (2004)
description of corporate re-branding framework, which was created on the basis of a case study of
Vodafone. Muzellec and Lambkin (2006) have also established an empirically grounded model of
the corporate re-branding process concentrating especially on factors affecting re-branding. These
studies are important preliminary work in the area. Despite these contributions, the field still lacks
a more comprehensive process model that would help understand how corporate re-branding
happens.
Moreover, there is no comprehensive description of the issues which are changed in the
corporate re-branding process. Often corporate re-branding is defined as “the practice of building
anew a name representative of a differentiated position in the mind frame of stakeholders and a
distinctive identity from competitors” (Muzellec et al., 2003, p. 32) in reference to that only the
name is changed in a process. Companies adopting new brand names are frequently reported in
the business press but this phenomenon has as yet received little academic attention (Muzellec et.
al., 2003). Changing a company’s name suggests the loss of all the values that the old name
signifies in an extremely short course of time. This challenges traditional marketing wisdom with
regards to corporate brand equity, because changing the brand name nullifies years of effort and
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Mari Ahonen
can seriously damage or even destroy the equity of the brand. (Muzellec & Lambkin, 2006.)
However, the literature suggests that there are other issues that are included in the corporate rebranding process as well; e.g. logo change, slogan change (Stuart and Muzellec, 2004), and
corporate value change (Lomax and Mador, 2006). Corporate rebranding is expensive and timeconsuming (Stuart and Muzellec, 2004), and may include pitfalls (Gotsi and Andriopoulos, 2007)
The aim of this paper is to develop a process model of corporate re-branding that
accounts for the shortcomings discussed above. A process model of corporate re-branding
explains how it happens; how the corporation adopts its new name and what influences the
process. Here, process refers to the nature, sequence and order of activities and events (Van de
Ven, 1992; Langley, 1999) that a corporation undergoes when it changes its name. Activities and
events include the actions and decisions the company takes. In addition, different time scales in
the same process and the dynamic nature of processes are considered. Process explanations
include, for example, and explication of the overall pattern that generates a series, e.g. when the
process develops in three or more stages (Van de Ven and Poole, 1995).
The following questions are answered during the journey: What kinds of potential
corporate re-branding types and processes can be distinguished? Which factors influence the
process? And How can corporate re-branding be described as a process? In building the model,
the primary inspiration is drawn from the current literature on corporate re-branding. In addition,
literature on corporate name changing, corporate visual identity system and process research for
example is examined.
A Process Model of Corporate Re-Branding
To develop a theoretically sound and practically relevant process theory of corporate rebranding, the research questions presented earlier should be answered. The following is organized
around these questions.
The types of corporate re-branding
Re-branding may occur in different levels in organizations; corporate, business unit, or
product level (Muzellec and Lambkin, 2006). Product re-branding is a widely studied area in the
marketing discipline, but corporate re-branding is quite a new phenomenon in an academic
context. This study concentrates on corporate re-branding only. The literature gives a variety of
definitions of what corporate re-branding is and what issues are included in it. Therefore the type
of corporate re-branding is examined first.
Daly and Moloney (2004) describe that the level of change in corporate brand may
include minor, intermediate or complete change. According to them, the minor changes are about
aesthetics, and vary from a simple face lift to restyling or revitalizing the brand which may need a
change. Intermediate change is about repositioning, and use of marketing tactics, especially
communication and customer service techniques to favorably reposition an existing brand name,
thus giving it a new image. In complete change, the name is new to stakeholders and they do not
know what the brand stands for. Values and image of the new brand are communicated to all
stakeholders through an integrated marketing communications campaign. Daly and Moloney
(2004) call complete change rebranding.
Stuart and Muzellec (2004) suggest a continuum of corporate rebranding varying from
evolutionary changes in slogan or logo only, to revolutionary change incorporating the elements
of name, logo and slogan. They suggest that the types of changes made by corporate re-branders
fall into three categories; name, logo, and slogan change. They suggest that permutations possible
32
are a) name and logo, b) name, logo and slogan, c) logo only, d) logo and slogan, e) slogan only.
They do not clarify why name only cannot change. According to them, change in only one of the
elements will result in evolutionary change to the brand, whereas changing name, logo and slogan
simultaneously will cause revolutionary change.
Muzellec & Lambkin (2006) suggest that corporate re-branding occurs either in an
evolutionary or revolutionary manner. Evolutionary rebranding describes a fairly minor
development in the company’s positioning and aesthetics that is so gradual that it is hardly
perceptible to outside observers. Revolutionary rebranding describes a major, identifiable change
in positioning and aesthetics that fundamentally redefines the company. According to them, this
change is usually symbolized by a change of name.
Lomax and Mador (2006) present a typology of branding choices on the basis of whether
the name will be existing or new, and whether brand values and attributes (v&a) will be existing
or new. They describe the options as re-iterating (existing name – existing v&a), re-defining
(existing name – new v&a), re-naming (new name – existing v&a), and re-starting (new name –
new v&a). In re-iterating, name and values are congruent and address client needs. In re-defining,
values and attributes are changed to meet either external or internal identified concerns. If nothing
is changed they are congruent and address client needs. If both are new, it is re-starting.
All in all, corporate re-branding may vary from minor, evolutionary changes in position
and aesthetics to revolutionary changes in corporate name, values, attributes and positioning.
Factors affecting corporate re-branding
The main drivers for corporate re-branding are decisions, events or processes causing a
change in a company’s structure, strategy or performance of sufficient magnitude to suggest the
need for a fundamental redefinition of its identity. Reasons for corporate re-branding include
change in ownership structure (mergers & acquistions, spin-offs, private to public ownership,
sponsorship), corporate strategy (diversification and divestment, internationalization and
localization), competitive position (erosion of market position, outdated image, reputation
problems) and in external environment (legal obligation, major crises or catastrophes). (Muzellec
and Lambkin, 2006.) These drivers and reasons refer especially to corporate name change, but
most of them can be considered as drivers and reasons for logo, slogan or value change.
It is suggested in the literature that a change of name is unlikely to occur if the
organization itself has not changed (Muzellec and Lambkin, 2006). In other words, re-branding
itself is a message that something has changed in an organization (Stuart and Muzellec, 2004;
Lomax and Mador, 2006).
Phases in corporate re-branding process
Theory development in this paper is based on two major sources: Daly and Moloney’s
(2004) and Muzellec and Lambkin’s (2006) descriptions of corporate re-branding. Daly and
Moloney (2004) suggest that the corporate re-branding process has the following stages: precampaign situation analysis, stage one: partnership campaign, stage two: vision and values,
stage three: interim/dual branding (brand naming), stage four: pre-launch, and stage five: launch.
Furthermore, they describe the phases of analysis, planning and evaluation (Daly and Moloney,
2004). Muzellec and Lambkin (2006), in contrast, concentrate especially on driving forces and
reasons for corporate re-branding, but also suggest a model of the re-branding process. In their
model, re-branding factors lead to the formulation of re-branding goals which reflect a new
33
Mari Ahonen
identity and create a new image. An actual re-branding process begins after these phases
including internalization (employees’ culture) and externalization (stakeholders’ images).
In addition to these contributions Kaikati (2003) suggest that re-branding consists of rebranding, re-structuring and re-positioning, but does not define any of these. Muzellec et al.
(2003), on the other hand, suggest that rebranding consists of re-positioning, re-naming, redesigning and re-launching. Re-positioning is often considered as an objective-setting phase
(Daly and Moloney, 2003) where decisions are taken to try to create a radically new position in
the minds of its customers, competitors and other stakeholders (Kotler and Keller, 2006; Keller,
2008). Re-naming or name changing is the most discussed issue in corporate re-branding studies.
The brand name is the core indicator of the brand. It is the basis for awareness and
communications. It is a medium by which a corporation sends signals about corporate identity to
stakeholders, and the brand image results from the decoding of those signals by the receiver.
(Daly and Moloney, 2003.) Choosing a name is not an easy task. Muzellec (2006) presented
different kinds of corporate name types: descriptive, geographic, patronymic, acronym,
associative and freestanding. There are alternative routes – or processes – to choose corporate
name (Kohli and LaBahn, 1997; Kollmann and Suckow, 2007), and employee participation in
name development is suggested (Kollmann and Suckow, 2007; Lomax and Mador, 2006). In redesigning, the aesthetics of a corporatation are changed (Daly and Moloney, 2003). Here it is
suggested that the redesigning phase could include all corporate visual identity system (CVIS)
(e.g. Baker and Balmer, 1997; Van den Bosch et al., 2005; Van den Bosch et al., 2006). CVIS
plays a significant role in the way an organization presents itself to both internal and external
stakeholders. It expresses the values and ambitions of an organization, its business, and its
characteristics. Key elements of a CVI are the corporate name, logo, color palette, font type, and
a corporate slogan, and tagline and/or descriptor. These can be applied, for instance on stationery,
printed matter, advertisements, websites, vehicles, buildings, interiors, and corporate clothing
(Van den Bosch et al., 2006). Even though corporate name is mentioned at this phase as well,
here it differs from corporate re-naming. Re-naming is a process in which a new name is chosen,
and at this phase, a visual layout of the new corporate name is created. Re-launching is mainly
about communicating the new brand to the stakeholders.
On the basis of these, a proposition for a process description of corporate re-branding is
presented in Figure 1. Rather than trying to explain causalities, the process is seen as a
complexity of events, the need to account for temporal connections among events, different time
scales in the same process, and the dynamic nature of processes including, for example, the
explication of the overall pattern that generates a series, e.g. when the process develops in three
or more stages (Van de Ven and Poole, 2005). The model distinguishes four main phases
(analyzing, planning, implementation and evaluation) in the process. The process is described
here from a corporate perspective. The process may include several actors in and outside the
corporation. It should be noted that the phases might be intertwined or overlapping, and do not
necessarily follow each other in this order. Furthermore, the phases are seen as consisting of
several sub-processes, which include several phases and can be intertwined or overlapping in a
sequence of time.
34
Antecedents
Driving forces behind re-branding
Analyzing
Decisions, events or processes causing a change
Corporate re-branding decisions
Stakeholders
Re-positioning, re-naming, re-structuring, re-designing
Re-launching
Internally and externally
The outcome
The new corporate brand
Planning
Implementation
Evaluation
Impact
FIGURE 1: A preliminary framework for the corporate re-branding process
Analyzing is the first phase of the process. It includes analyzing antecedents of the current
situation and the driving forces behind re-branding, including decisions, events or processes
causing a change in a company’s structure, strategy, or performance (Muzellec and Lambkin,
2006; Lomax and Mador, 2006).
Planning is seen here as a wide phase including several decisions and consisting of
several sub-processes of re-positioning, re-naming, re-structuring and re-designing the company
before the new corporate brand is launched. In addition, the decisions in this phase include in
which level – corporate, business unit or product level – in the company the re-branding will be
executed (Muzellec and Lambkin, 2006), and whether the change will be minor or major in
nature (Daly and Moloney, 2004; Lomax and Mador, 2006; Muzellec and Lambkin, 2006). At
this stage, stakeholders, like customers and employees, might be important sources e.g. for pretesting or even developing a logo or a new name.
Implementation includes the re-launching of the new corporate brand planned before.
Launching the new brand is a twofold area including launching first for internal stakeholders and
after that for external stakeholders (Gotsi & Andriopoulos, 2007). Daly and Moloney (2003)
suggest that internally the brand can be introduced through internal brochures, newspapers,
annual meetings, workshops or intranet. To external stakeholders the new brand can be
communicated through press releases and advertising. In corporate re-branding, planning and pretesting should be considered carefully, because launching a new name and CVIS is an expensive
operation.
Evaluation includes measuring the success or failure of the process. Measuring is
difficult, and therefore it is suggested that corporate re-branding should be evaluated with regards
of its initial goals (Stuart and Muzellec, 2004). Kaikati (2003) suggests monitoring and tracking
reactions periodically. At its best, evaluation covers all the phases of the process.
35
Mari Ahonen
Corporate rebranding necessitates synergy between marketing, human resource
management and strategy (Hatch & Schultz, 2003). Context determines the involvement of
different stakeholder groups in the process. Staff, customer and agency involvement at varying
levels are found. Agencies help especially with communications, advertising, media buying
and/or in new brand development. Often the process is more complex and time consuming than
the companies anticipate. (Lomax and Mador, 2006.) In addition, the phases are more or less
intertwined and overlapped.
Even though corporate re-branding is an issue which is conducted in several levels in
organization and it is assumed that the corporate re-branding process is purposeful and adaptive
in interaction with several actors, here the phenomenon is described from the perspective of the
internal development of a single organizational entity, a company. For corporate re-branding an
envisioned end stage is formulated, and in an organization actions for reaching the goal are taken
(Van de Ven, 1992). In addition, it is suggested that the process is seen as a repetitive sequence of
goal formulation, implementation, evaluation, and modification of goals based on what was
learned during the process (Van de Ven and Poole, 1995). In so doing, the process description
leans towards life cycle and teleological process theories.
As suggested earlier, there are different types of re-branding that corporations may
execute. Therefore, it is assumed that corporate re-branding may be conducted in several ways. A
general model of corporate re-branding aims to consider all these situations.
Conclusions and Further Studies
Because the current literature lacks a general model of corporate re-branding, this paper
concentrated on creating a preliminary theoretical framework for corporate re-branding as a
process. The study revealed that corporate re-branding may occur in different levels in
organizations; corporate, business unit, or product level, and vary from minor, evolutionary
changes in position and aesthetics to revolutionary changes in corporate name, values, attributes
and positioning. The main drivers for corporate re-branding are decisions, events or processes
causing a change in a company’s structure, strategy or performance. Reasons for corporate rebranding include change in ownership structure, corporate strategy, competitive position and in
external environment.
On the basis of some earlier corporate re-branding studies and literature on topics such as
corporate name changing, corporate visual identity system and process research, the study
suggests that corporate re-branding in general consists of four phases; analyzing, planning,
implementing and evaluation. In more detail, the analyzing phase includes antecedents and
driving forces behind re-branding. The planning phase includes decisions about corporate repositioning, re-naming, re-structuring and re-designing. The implementation phase consists of
launching the new corporate brand both internally and externally. The analyzing phase includes
measuring and analyzing the success of the re-branding process. All the phases are intertwined
and overlap one another.. In addition, all these phases are seen as sub-processes. For example, renaming is a process in itself and may consist of alternative routes (Kollmann and Suckow, 2007).
The framework is created from the perspective of a corporation. However, it is
suggested that corporate brand is co-created in co-operation with employees, customers
and other stakeholders rather than being developed purely by a company. The study does
not consider whether the corporate re-branding process is expensive or not, and if it is,
how expensive and where the costs come from.
36
From practical perspective, the process description may give new insights for managers
who are about to convey corporate re-branding issues in their companies. It clarifies that
corporate re-branding is a holistic, complex and multilevel issue during which several
perspectives, processes, actions and actors need to be taken into the account.
During the study some issues worth further study were raised. First, the study suggested
that all the phases consist of sub-processes. It would be vital to describe these sub-processes in
more detail. Second, because this suggestion is a general description on the basis of previous
literature, the process might vary depending on the industry and companies. Therefore the
framework needs to be further developed by creating an empirically grounded framework of the
phenomenon. The process description can be considered as a preliminary theoretical framework
the purpose of which is to guide the empirical data gathering. A useful route could be first to
interview managers that have participated in corporate re-branding to find out whether there are
inconsistencies in the framework, and after that, validate the framework by executing a survey.
Yet, interviews and surveys help only to clarify if and what phases/issues occurred. For
understanding how something happens, also real-time observation is needed. (Van de Ven, 1992.)
Third, as suggested earlier, the process may vary depending on the type of re-branding. It would
be interesting to clarify how the processes vary depending on whether the question is about
corporate, business unit, or product re-branding, or whether the change is evolutionary or
revolutionary in nature.
Finally, the study raised an interesting question. The corporate branding literature
suggests that development of corporate brand takes several years. If corporate re-branding can
happen overnight, who can say the new name is a brand immediately?
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38
Employee Identification with Corporate Values within the
Danish Windmill Company NEG Micon: A Study of Both Top
Management’s View and Employee Perceptions
Mona Agerholm Andersen
[email protected]
This paper presents the findings of a holistic study of the communication processes during a corporate
value implementation within the Danish windmill company NEG Micon. This implies firstly a study of the
different processes of management’s formulation, construction and communication of the value statement
and secondly, how the employees receive the values. The paper illuminates the potential problems that may
occur during such a process and offer recommendations for future value implementation efforts in
organisations.
Organizational Context
In February 2002 the employees of the Danish windmill company NEG Micon received a
new set of corporate values. They were printed on a poster, which was attached to the internal
employee magazine. The idea was that the employees should put the poster on the wall beside
their desks and act according to them in their everyday practices. According to top management,
the purpose of the new values was to launch a change process towards a new corporate culture
within the organization and improve esprit de corps among the employees.
Growth and value for our shareholders
Our customers’ preferred partner
Employees in the centre – as
individuals and as a team
A sustainable contribution to society
Figure 1: NEG Micon
group core values 2002.
39
However, it was not the first time the employees in NEG Micon had been presented to a new set
of corporate values with this purpose. The first time was in 1997 when the company merged with
Nordtank Energy Group, another Danish windmill company. The second time was in 1999 when
NEG Micon faced serious financial crisis that almost lead to the company’s bankruptcy. Due to
this, an internal change process was initiated which included the appointment of a new managing
director, rounds of dismissals and an internal restructuring of the organisation.
In 2001 the organisation still suffered the after-effects of both the merger and the crisis.
The merger had caused a divided organisation with groups of “us and them” and the crisis had led
to insecurity among the employees because they feared to loose their jobs. In order to strengthen
the corporate culture, top management decided to initiate a new internal change process and one
of the tools in this process was the introduction of the four new values. In the beginning of 2003,
NEG Micon faced another financial crisis which caused new rounds of dismissals and the
company still suffered from the crisis when this case study was conducted in autumn 2003.
Motivation and Research Purpose
Since the 1980s leadership based on values has come to play an important role in
organisations. The shared values of an organisation are viewed as an important tool to create
commitment, ensure motivation and focus, particularly among the knowledge generation of
employees (Pruzan, 1998). In this respect, values are considered to underpin how organisations
are operated and organised and form the basis for organisational goals, individual and
organisational identity, corporate responsibility and future success of the organisation (Morsing
and Pruzan, 2002).
In order to create a common understanding among the employees of the organisational
goals, value based leadership involves the formulation of an organisation’s vision, mission and
value statement (Thyssen, 1997). Within the field of corporate communication there have been
some previous studies on internal communication of corporate values, missions and visions
(Johansson, 2003; Llewellyn and Harrison, 2006). However, little efforts have been devoted to
investigate how employees receive and identify with the values, taking both a study of the value
text on a micro level and the organisational context into consideration (Dahl, 1999, Johansson,
2003).
The purpose of this paper is to present the results of a holistic study of the
communication processes during the corporate value implementation within the Danish windmill
company NEG Micon from 2002 to 2003. I combined analysis of communication at both microand macro levels, which means that I analysed the value text on a micro level and placed this
within its organizational context by interviewing management and employees. In this respect both
the historical and situational context of the organisation were also considered.
Firstly, the aim of the study is to investigate the different processes of managements’
formulation, construction and internal communication of the value statement. Secondly, to
analyze which strategies are applied from a discursive point of view in the value statement.
Thirdly, how the employees receive, or read, the values on different levels within the
organisation. To obtain an in-depth insight into the employees’ readings of the values and their
identification with them, this paper also presents a multidimensional reception model.
40
Employee Identification with Corporate Values within Danish Windmill Company NEG Micon A Study of Both Top Management’s View and Employee Perceptions
Methodology
The data for this paper originate from an empirical case study of NEG Micon, an
international Danish windmill company with headquarters in Denmark. In 2001 when the study
started, the company had 2,500 employees worldwide. The collection of material started in 2001
and the case study was conducted from September 2003 to December 2003.
A qualitative research method was chosen in order to closely examine the communication
process during the implementation of the values. Other qualitative methods such as interviews
and discourse analysis of the written and verbal communication were also applied. The discourse
approach used in this study is Norman Fairclough’s (1995) critical discourse analysis. The design
of this case study is also inspired by his holistic approach, which includes text analysis, discursive
practice and social practice.
I conducted in-depth interviews with a total of 15 employees within the organisation.
This interview approach was chosen because it allows communication experiences to be explored
in detail, thus producing insights that survey questionnaires, for example, may miss (Hargie and
Tourish, 2004). Three managers from the top management group who had participated in the
value process were interviewed. The overall focus here was the production processes of the value
statement, its content and the communication of it to the employees.
In order to make a reception study of the core values I conducted in-depth interviews
with 12 employees at different levels within the organisation. Participants for the interviews were
selected in an effort to reflect the diversity of the workforce. A total of 12 respondents from four
different departments were chosen; Production, Sales Department, After Sales Department and
Research & Development.
All interviews were carried out at NEG Micon and lasted for approximately one hour.
The interviews were recorded and transcribed for analysis. At the beginning of the interview,
each participant was asked if he knew or remembered the four core values, and where and how he
had been introduced to them. Following this, the participant was presented with the values poster.
He was asked if he recognized it and used it as a guide in his daily working routines. Following
this, each employee was presented with a copy of each of the four values and was asked to read it
through. The aim was to explore the employee’s reading and interpretation of the value text in his
own terms. Having completed reading the employee would either spontaneously offer his
interpretations, or I would ask how he interpreted or understood the value text. This was followed
by questions on: “Are you able to act according to the value text in your daily working routines?”,
“Do you consider yourself as a part of the pronoun ‘we’ in the value text?”, “Do you think the
value text reflects the culture within the company?” and “Do you think the value text has been
implemented?”.
Since the early 1980s the value concept has occupied a prominent place in management
literature especially concerning value based leadership. Values are also viewed as important
components of organizational culture (Deal and Kennedy, 1982; Peters and Waterman, 1982;
Schein, 1985) and organizational identity (Hatch and Schultz, 1997). It is characteristic for these
concepts that values are defined as a frame of reference or guidelines for internal organizational
behaviour. Values have also become a buzzword and a very popular concept among practitioners
and consultancy-based literature as an instrument to achieve company goals (Kotter, 1996;
Kunde, 1997; Jacobsen, 1999; Beyer, 2000). Especially within the consultancy-based literature,
41
the line of thinking is that values should serve as an instrument to discipline the organization and
its employees during change processes. Here values are considered as a kind of magic tool to
ensure motivation and commitment within organizations in change.
But how are values defined? Rokeach (1973) defines values as “An enduring belief that a
specific mode of conduct or end-state of existence is personally or socially preferable to an
opposite or converse mode of conduct or end-state of existence” (1973: 5). According to Rokeach
values result in a preference for one behaviour over another. They serve as criteria for making
decisions and setting priorities and lie behind our actions as individuals.
In a leadership context Morsing and Pruzan (2002) distinguish between three categories
of values:
- Terminal goals: goals that are pursued for their own sake – vis-á-vis means or
instruments to serve other, higher order goals.
- A frame of reference for personal and organisational reflection: Who am I/who are
we? What do I/what do we stand for? What is a “good life” for me/for us?
- Standards: Do I/we live up to the demands we and others place on us as to our
behaviour and performance?
Morsing and Pruzan (2002) also distinguish between “tacit values” and “articulated
values”. Tacit values are those that we draw upon in our everyday lives, when we have to make
decisions or judgements. Articulated values are the “shared values” of the members of an
organisation and are often explicated and communicated in various forms, such as value
statements, ethical and social reports (ibid, 2002). It is also important to distinguish between
“personal values” and “organisational values”. The personal values are the result of our
upbringing and provide the background for our behaviour in a certain cultural context. These
values form the basis of the values that we develop in life and commit to in organisations, the socalled organisational values (op.cit. 2002).
There are two approaches to initiating an organisational value process. One is the topdown approach; the other is the bottom-up approach. Within the top-down approach, values are
viewed from a management perspective as a tool to “discipline the corporate body by collective
seduction” (Christensen and Morsing, 2005 p. 102). Top management define the values and in the
hope to create uniformity within the organisation, top-down communication is applied. The media
and channels used to communicate the values internally to the employees are often department
meetings, seminars, introduction courses, internal employee magazines and the intranet (Miller
2003). Previous studies show that within this approach management often holds a transmission
view of communication (Axley, 1984, Varey, 2000).
In a bottom-up approach, the values are created and defined in a dialogue between top
management and employees. The employees are viewed as the most important resource of the
organisation and diversity among the employees is accepted (Miller, 2003) Here communication
is not based on standardisation and discipline, but on the opportunity for each employee to
contribute to the value creation process. One of the problems with this approach is that different
interpretations and understandings of reality and values may occur when employees with different
perspectives and backgrounds discuss the issue. However, it is presumed that a more common
understanding of the values will take place in an environment where dialogue and conversations
are important elements (Johansson 2003).
Data Analysis
Reception researcher Kim Schrøder (2000, 2003) has elaborated a multidimensional
model of mass media reception. The purpose of the model is to capture the complexity of
42
actualized readings when analyzing qualitative reception data. The model is dimensional, which
means that the various dimensions of readings shall not be considered as happening in the same
kind of order. On the contrary, the dimensions should try to capture signifying processes that
might take place simultaneously, or near-simultaneously, in connection with media reception
(Schrøder, 2000). The model is designed as a pyramid in order to demonstrate that the five
dimensions are related to the text and to each other. The five dimensions of reception that
Schrøder includes in his model are: Comprehension, Discrimination, Implementation, Motivation
and Position.
Text
Motivation
Comprehension
Position
Implementation
Discrimination
FIGURE 2: Multidimensional model. Adopted by Schrøder 2003: 67.
The overall purpose with the heuristic multidimensional model is to provide the
researcher with a systematic analytical tool for the analysis of qualitative interview data. The five
dimensions should also make it possible for the researcher to interpret and categorize interview
data in such a systematically way that each dimension receives the proper analytical attention. For
these reasons and in order to obtain an in-depth insight into the employees’ readings of the core
values and their identification with them, I adapted the model to my reception data and
reformulated the questions asked to the interview material from each dimension. The five
dimensions are as follows:
Motivation: This dimension deals with the link of relevance between the readers’
personal universe and the universe presented by the text and the situation surrounding its
consumption (Schrøder, 2000: 245) How motivated is the reader and does he feel a strong or a
weak involvement in the personal pronoun ’we’ in the value text? The reader may ‘commute’
between different degrees of motivation (from strong to weak) as he reads the value text.
Comprehension: How does the reader comprehend the meaning of a text both
denotatively and connotatively? Comprehension should be understood as a decoding continuum
from complete ‘divergence from’ to complete ‘correspondence to’ the encoders’ intended
43
meanings (ibid, 2000: 246). The reader may ‘commute’ between different degrees of
comprehension (from high to low) as he reads the value text.
Discrimination: Does the reader adopt a critical stance towards the text or is it perceived
as an unquestionable transparent representation of social reality within the organization? The
dimension of discrimination takes the form of a continuum from immersion to critical distance,
which means that the reader may commute between immersion and critical distance. Thus, he
may either simultaneously appreciate or ridicule a text or simply adopt one of them. A distance
from the text could for example be expressed through ironic readings (op.cit. 2000: 248).
Position: What is the reader’s subjective attitude towards the text and its practical
implementation within the organization? The dimension deals with a continuum of attitudinal
responses from the readers in order to either characterize them as an acceptance or a rejection of
the text (Schrøder, 2000: 249).
Implementation: How does the reader use the content of the text in his daily working
routines or how does he act according to it? The dimension deals with whether the reader is able,
or not, to use the text as a point of departure for action in relation to other individuals, groups or
institutions (ibid, 2000:252).
In figure 2, I have designed a framework that seeks to grasp the multidimensionality of
the employees’ reception of each of the value texts. I have categorized and matched the five
dimensions of reception in order to analyze the complexity of the employees’ different levels of
identification.
Comprehension/
Discrimincation
Implementation/
Motivation
Position
Identification
FIGURE 3: Identification with values.
To be able to distinguish between different levels of employee identification with each of
the value texts and the corporate value text as a whole, I work with a scale that incorporates four
different levels of identification:
High level of identification: The employee has a high comprehension and a positive stance
towards the value text. He is able to use the content of the value text in his daily working
routines. He has a high degree of motivation and a strong involvement in the personal pronoun
‘we’ in the value text. He has a positive attitude towards its practical implementation within the
organization.
Medium level of identification: The employee has a high comprehension and commute
between a positive and a negative stance towards the value text. He is able to use the whole
44
content of the value text or part of it in his daily working routines. He commutes between a high
or a medium degree of motivation and feel a high or medium involvement in the personal
pronoun ‘we’ in the value text. He commutes between a positive and a negative attitude towards
its practical implementation within the organization.
Low level of identification: The employee has a high, a medium or no comprehension and
has a negative stance towards the value text. He is both able and not able to use the content of the
value text in his daily working routines. He does not feel any involvement in the personal
pronoun ‘we’ in the value text and his motivation is low. The employee has a negative attitude
towards its practical implementation within the organization.
No identification: The employee has a high, a medium or no comprehension and has a
negative stance towards the value text. He is not able to use the content of the value text in his
daily working routines. He does not feel any involvement in the personal pronoun ‘we’ in the
value text and his motivation is either low or non-existing. The employee has a negative or a
neutral attitude towards its practical implementation within the organization.
Top Management’s View on the Value Process
The three interviewed managers had four to five years of work experience in the
company and had all participated in creating and writing the value statement. They all found that
values were important as a management tool in order to create a new culture within the
organisation. They explained that the ambition was that the employees should commit themselves
to the values and use them as a guiding line in their daily work.
The managers also agreed upon the value formulation process. They said that the value
statement was created primarily by the top management and to some extend the middle managers.
Other members of the organization had not been involved in the process. They all gave more or
less the same explanations of the meaning and content of the value statement and explained that it
was concentrated on the four main stakeholders of the company. Their comments clearly showed
that a top-down approach had been applied and that the values were regarded as a management
tool to obtain company goals.
They also explained that the formal communication flow in the organization had run from
top management down to departments and divisions. When top management initiated the change
process in February 2002 an internal “Roll out Plan” was launched. Managers and local
management should act as change agents and communicators in order to implement the new
values in each department’s daily operations. Beside the internal employee magazine, other
mediums were used during the implementation process such as oral presentations of the values on
department meetings, strategy seminars, introduction courses for new employees and the intranet.
Regarding their view on communication there was a clear difference between them. Two
of the managers held a transmission view as they indicated that it was enough to communicate the
values to the employees either orally or written. The third manager held a more interpretive
perspective as he said that it was necessary to involve the employees in a value discussion on a
local department level.
The managers also differed in their views upon the practical implementation of the values
and their comments clearly showed that they had not made any evaluation of the process. Thus,
their comments were based more on their own estimations than on real knowledge. Two of the
managers believed that the employees were able to use the values in their daily work, but they
differed in their arguments. One of them argued that he believed the values had been
45
communicated to the employees in such ways that they should be able to comprehend the
meaning and relate to them in their daily work. The other manager believed that theoretically the
employees should be able to use the content of the values, but it was indirectly shown in his
statements that he did not know for sure. The third manager expressed certain doubts whether the
employees were able to use the content of the values. He believed the values were directed more
at the different management levels within the company than at the employees. However, the only
value text that the managers all believed was implemented was “A sustainable contribution to
society.”
Summary of Text Analysis
The NEG Micon core values are concentrated on four main themes: owners, customers,
employees and society. The values have a short descriptive introduction and the composition of
the value text is the same for each theme. It starts with a value headline, and then a value
statement followed by a small headline “therefore we must” and points of direction. The value
headlines are: “Growth and value for our shareholders”, “Our customers’ preferred partner”,
“Employees in the centre – as individuals and as a team” and “A sustainable contribution to
society”
In the following I will give a short overview of the analyzed strategies applied by top
management in the value statement from a discursive point of view. Table I shows a selection of
textual fragments categorized according to the topics that I consider crucial for considering the
strategies applied by management.
TABLE 1. Summary of discourse analysis
Category
Usage in text
Analyst’s interpretation
Wording
“The global market for modern, efficient
wind energy is booming – and so is NEG
Micon”
Positive wording that describes a
company in expansion. An indirect
argument so that the employees will
identify with the values.
Pronoun use, first person plural
“When we all keep our core values in
mind”
Establishment of a social relation
between management and employees
- Transitivity
“Therefore we must”
Management’s instructions to the
employees of how they should act
according to the points of direction
- theme
“The core values as guiding principles
for everyone”
The values are important for the survival
of the company
- modality (time)
“We want to create a business that every
employee is proud to be a part of”
Focus on the desired future instead of the
“problematic past”. To encourage the
employees to identify with the values.
Cohesion
“When we all keep our core values in
mind, each day brings us closer to our
ambitious business goals”
If the employees identify with the values
and use them in their daily work the
company will survive
“A
globally oriented company”,
“delivering promised results”, “perform
risk assessments”, “sound financial
basis”, “monitor our costs”, “good
business ability “, “prepared for changes
Management discourse. This discourse
may seem unfamiliar to employees of
other discourse orders.
- Argumentation
Discourse order
- discourse types
46
as part of the rapid growth”, “a marketdriven company”, “the entire value
chain”, “work as a responsible partner”.
By describing the company in positive words and by arguing for the values as important
guidelines for the survival of the company, top management intends to persuade the employees to
identify with them. Talking of a positive future and using the personal pronoun “we” top
management intend to create a positive relation with the employees and to flatten hierarchies.
However, the use of transitivity “therefore we must” indicate that top management has already
decided how the employees should act, which is in line with a top-down approach. The value
statement is dominated by a management discourse that may seem unfamiliar to employees
belonging to other discourse orders. In this respect, I consider the middle managers to be the
primer receivers of the value statement instead of the rest of the employees.
Employee identification with the corporate values
The findings of the empirical reception study concerning the different levels of the
employee identifications with each of the core values and the entire value statement are presented
in Table II.
TABLE 2. Summary of employee value identification
Growth and
value for our
shareholders
Our customers’
preferred
partner
Employees in the
centre – as
individuals and
as a team
A sustainable
contribution to
society
Identification
with the entire
value statement
Engineer
R&D
No identification
No identification
No identification
No identification
No identification
Middle Manager
R&D
Medium
Low
Medium
No identification
Medium/low
Middle Manager
R&D
High
High
High
High
High
Secretary
Sales Support
No identification
No identification
No identification
No identification
No identification
Sales Assistant
Sales Support
No identification
Medium
Low
Low
Low
Sales Manager
Sales Support
Medium
Medium
Medium
High
Medium
Electrician
Product Division
No identification
No identification
Medium
Low
Low
Machine fitter
Product Division
No identification
No identification
No identification
No identification
No identification
Middle Manager
Product Division
High
High
High
High
High
Electrician
After Sales Division
No identification
Medium
Low
Low
Low
47
Electrician
Low
High
Medium
No identification
Medium/low
Electrician
No identification
High
Medium
High
Medium
As can be seen from Table II the employees do not present the same identification level
with the entire value statement in any of the four departments. It also shows that the two values
“Growth and value for our shareholders” and “A sustainable contribution to society” are the two
values with the lowest identification score.
The interviews illustrated that the middle managers was the highest placed group of
employees on the identification scale. The remaining employees represented an identification
level which was distributed on a medium, a medium/low, a low or a non-existing level. More than
half of the employees were placed in the low end of the identification scale.
The employees had a very good knowledge of the values. They said that they had been
introduced to them at department meetings, courses and seminars. Most of the employees could
also remember the headlines of the value texts but it appeared in the interviews that their
knowledge of the values had no influence on their identification level.
Throughout the interviews it emerged that the hierarchical position of the middle
managers and their contribution to the value process was decisive for their high level of
identification. This was not the case for the rest of the employees. Instead their responses
indicated that it was the same positive and negative factors across the departments that had
influenced their level.
On the basis of my analysis of the interview material I concluded that the following
positive and negative factors influenced the identification level concerning all four value texts.
TABLE 3.
Positive factors
Negative factors
A positive stance towards the wording of the value text
1.
A critical stance towards the wording of the value text
2.
Comprehends the meaning within the ‘intended meaning’
2.
3.
Able to use the content of the value text in his daily
working routines
Does not feel that the wording of the value text is directed
at him
3.
A strong involvement in the personal pronoun ‘we’ in the
value text
Does not comprehend the meaning within the ’intended
meaning’
4.
A positive attitude towards the practical implementation of
the value text within the organisation
Not able to use the content of the value text in his daily
working routines
5.
No involvement in the personal pronoun ‘we’ in the value
text
6.
Management does not live up to the wording of the value
text
7.
A negative attitude towards the practical implementation of
the value text within the organisation due to the financial
situation
1.
4.
5.
To clarify and demonstrate how some of the above factors appeared in the interview
materiel I will give some examples in the following. The passage below is taken from an
interview with a middle manager working in Research and Development. In this passage, he
48
comments on the value text “A sustainable contribution to society” and the reading dimensions
analyzed are “comprehension and discrimination”:
Of course, we all have a part in creating renewable energy whether you are sweeping floors
or (.) you’re a manager somewhere in the organization, well, you’re playing your part and
you contribute to creating a sustainable contribution to society. […] It says that we must
perform with honesty on all our markets er (..) yes, of course we must, we have to vouch for
what we sell, of course it is the seller who communicates these messages to a buyer in a
given market er, but of course he can’t do that without having (.) er, the support of both
Production and Research and Development, so er we all play our part as an organization
being able to communicate that message further (..).
What can be noted in this example is that the participant has a positive stance towards the
wording (“we all have a part in creating renewable energy”) and that he comprehends the
meaning of them (“of course it is the seller who communicates these messages to a buyer in a
given market”).
It was characteristic for the employees who were placed in the lower end of the
identification scale that they distanced themselves from the wording of the values with ironic
readings. This is illustrated in the following quote which is from an interview with an engineer
from Research and Development. In this passage, he comments on the value text “A sustainable
contribution to society” and the reading dimensions analyzed are “comprehension and
discrimination”:
Why then do top management drive such big cars, eh? (.) Aim to optimise our
environmental impact. The way I understand it, they want a green image which you can’t
blame them [...] But I still think that it is very easy to write this, any Tom, Dick and Harry
could also do that, now couldn’t they. So if he is – in every market of his, that could be
Funen or Zealand or – perform with openness and honesty right?, it is really easy and it
doesn’t cost them anything to announce this, does it […] If you gave me a couple of hours I
really believe that I could come up with something better.
In this statement, the employee has no problems with the wording but he adopts a critical stance
towards the text drawing on irony and humour (“why then do top management drive such big
cars, eh?”) and (“any Tom, Dick and Harry could also do that”).
The irony and humour is also apparent below. The financially difficult situation in which
the organization found itself at the time of the interviews turned out to be one of the most
important factors why more than half of the employees ended up in the low end of the
identification scale. The rounds of dismissals had caused great uncertainty among the employees
and fear of losing their jobs. Another decisive factor was that the employees did not feel that top
management lived up to the value statement themselves. In the following example an electrician
from Product Division comments upon the value text “Growth and value for our shareholders”
and whether he is able to act according to it in his daily work. The reading dimensions analyzed
are “implementation and motivation”:
Employee:
Aim for clear financial goals internally, and have everyone be resonsible for delivering
results well personally I think that is a very, very important passage that one (.) er and it
ought to be printed above the door when you arrive in the morning so that management can
49
see it, too, especially underlining have everyone be resonsible for delivering results because
that’s where the problem is.
Interviewer:
It says er therefore we must, who do you feel that this “we” applies to?
Employee:
Well, that is clearly the management.
Interviewer:
Yes (.) do you feel that it also applies to you as an employee?
Employee:
No - [snort] in my opinion it certainly doesn’t.
Again drawing on irony and humour, the employee distance, himself from using the
content of the value text in his daily working routines, because he feels that it is top management
who is responsible for the financial situation (“it ought to be printed above the door when you
arrive in the morning so that management can see it, too”). It is also shown that the participant
has no motivation for acting because he does not feel any involvement in the personal pronoun
“we”.
The financial problems also played an important role in the employees’ attitudes towards
the practical implementation of the values within the organisation. This is illustrated in the
following passage. Here, a machine fitter from Product Division comments on his view on the
practical implementation of the value text “Employees in the centre – as individuals and as a
team”. The reading dimension being analyzed is “position”:
I mean (.) one of the things that they do, they put so much pressure on people on the shop
floor the whole time, well for the past six months, and they pressure people into working as
much as 10 and 12 hours a day and I don’t think that is […]. That is one of the things at
least that (.) they could have done and that was to consider the people on the shop floor.
In this statement, he expresses his disappointment with management. Clearly, he does not feel
that they live up to the value “employee in the centre” topic in the text “they put so much pressure
on people on the shop floor the whole time”.
Discussion of Results
The merger in 1997 and the financial problems in 1999 were the main reasons why top
management introduced the new value statement in 2002. It emerged during the interviews with
the managers that the values were considered a very important tool in the process of creating a
new culture within the organisation. In order to create this new culture the employees should act
according to the values in their daily work. This goal was also pursued in the written value
statement. By describing the company in positive words and by arguing for the values as
important guidelines for the survival of the company, top management intends to persuade the
employees to identify with the values. Talking of a positive future and using the personal pronoun
“we” top management intend to create a positive relation with the employees and to flatten
hierarchies.
50
However, the use of transitivity indicates that top management has already decided how
the employees should act, which is in line with a top-down approach. An approach which the
dominating management discourse also indicates. The top-down approach was confirmed in the
interviews with the managers. They all said that the top management and to some extend the
middle managers had participated in the value process. The value statement had primarily been
communicated to the middle managers who should act as change agents and communicators. The
results of the employee interviews also indicated that the communication had most influence
upon the identification level of the middle managers. The rest of the employees had a good
knowledge of the values, but their knowledge had no influence upon their identification level. It
was characteristic for the employees in the lower end of the identification scale that they
distanced themselves from the wording of the values by ironic and humorous readings and that
they did not feel that the wording was directed at them. In the interviews with the managers two
of them hold the view that it is enough to communicate the values to the employees. However,
the interviews with the employees clearly showed that top management has not considered who
they were in dialogue with, because the employees in the lower end of the identification scale did
not feel the wording was directed at them. The wording of the value statement was also a problem
for the employees when it came to acting. The employees in the lower end of the identification
scale did not feel that the wording was directed at them, and thus they were not able to use it in
their daily work. This was clearly a consequence of the dominating management discourse.
The managers all differed in their opinions concerning the implementation of the values.
The only value that they considered implemented was “A sustainable contribution to society.”
However, the results of the employee interviews showed that this value had a low identification
score compared to the others.
No doubt that the historical and situational context of NEG Micon had an important
impact upon the implementation of the value statement. The financial problems in 1999 and
particularly in 2003 were very important factors why the majority of the employees’ placed
themselves at the lower end of the identification scale.
In this respect, it seems relevant to ask the question whether values are the ideal
management tool in times of a financial crisis? It would be easier to work with values within a
financially healthy organisation and easier for the employees to support a value project if they do
not feel an increasing work pressure and fear of loosing their jobs. It would also be easier for the
managers themselves to live up to the values.
Hence, managers ought to consider the situational context of an organisation before they
launch an internal value project. It would be better to talk with the employees instead of
communicating a value statement to them that they perhaps are not able to relate to and that
eventually may cause uncertainty instead of providing a frame of reference. It should also be held
in mind by managers that values cannot solve all problems within a company.
References
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Christensen, Lars Thøger & Morsing, Mette (2005): Bagom Corporate Communication, Samfundslitteratur,
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Dahl, Poul Nørgård (1999): Kommunikation – jokeren i organisationsudvikling. Aalborg Universitetsforlag.
Deal, Terrence E. & Kennedy, Allan A. (1982): Corporate Cultures, Reading Mass., Addison Wesley.
Fairclough, N. (1995): Critical Discourse Analysis, Longman, London.
51
Fog, Klaus, Budtz, Christian & Yakaboylu, Baris (2002): Storytelling – branding i praksis.
Samfundslitteratur.
Hargie, Owen & Tourish, Dennis (2004): How are we doing? Measuring and monitoring organizational
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communication pp. 234-251.
Hatch, Mary Jo & Schultz, Majken (1997): Relations between organizational culture, identity and image.
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Jacobsen, Glenn (1999): Branding i et nyt perspektiv. København: Handelshøjskolens Forlag.
Jørgensen, Marianne W. & Philips, Louise (1999): Diskursanalyse som teori og metode. 1. udg. Roskilde
Universitetsforlag/Samfundslitteratur.
Johansson, Catrin (2003): Visioner och verkligheter. Kommunikationen om företagets strategi. Acta
Universitatis Upsaliensis. Uppsala Studies in Media and Communication 2. Ph.d.- afhandling,
Uppsala Universitet.
Kotter, John P. (1996): Leading Change. USA: Harvard Business School Press.
Kunde, Jesper (1997): Corporate Religion. Vejen til en stærk virksomhed. Børsens Forlag.
Kvale, Steinar (1997): InterView. En introduktion til det kvalitative forskningsinterview. Hans Reitzels
Forlag A/S. København.
Llewellyn, N. & Harrison, A. (2006): Resisting corporate communications: Insights into folk linguistics.
Human Relations, 59 (4), 567-596.
Miller, Katherine (2003): Organizational Communication. Approaches and Processes. 3. udg. Wadsworth.
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in the economy. Handbook of business ethics. Bern: Peter Lang.
Peters, Thomas J. & Waterman, Robert H. (1982): In Search of Excellence, New York, Harper & Row.
Pruzan, Peter (1998): From control to values-based management and accountability. In: Journal of business
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Rokeach, Milton (1973): The nature of human values. New York: Free Press.
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Schrøder, Kim (2000): Making sense of audience discourses. Towards a multidimensional model of mass
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Schrøder, Kim (2003): Generelle aspekter ved mediereception? Et bud på en multidimensional model for
analyse af kvalitative receptionsinterviews. Mediekultur nr. 35, 2003.
Thyssen, Ole (1997): Værdiledelse – om organisationer og etik. København. Gyldendal.
Varey, Richard J. (2000): A critical review of conceptions of communication evident in contemporary
business and management literature. In: Journal of Communication Management, 4:4, 328-34
52
Joseph Basso, APR and Suzanne FitzGerald, APR, Fellow - PRSA
Department of Public Relations & Advertising
Rowan University, USA
[email protected] / [email protected]
Alison Theaker
University College Plymouth St. Mark and St. John
Marjon University, UK
[email protected]
This study explores the efficacy of online versus traditional training found among human resource
professionals in the United States and the United Kingdom. First, using a DELPHI technique, the authors
were able to draw consensus among human resource professionals about the impact of online training
programs. Next, the authors conducted personal interviews with human resource managers in the United
States and in the United Kingdom.
The study revealed that online training, or e-learning, continues to be grow in importance in corporate
training programs. The data from this study supports earlier findings showing that e-learning is a cost
effective way to provide training. However, respondents in both countries overwhelming support the idea
of blended learning as the best way to reach diverse age groups in the workforce, and to support
complicated compliance training courses such as sexual harassment. Finally, the data indicated that
human resource professionals in the United Kingdom were more comfortable with instituting e-learning
and blended learning programs somewhat faster than their counterparts in the United States.
The authors explored the efficacy of online versus traditional training programs by
conducting a DELPHI study of US human resource professionals to ascertain how they currently
train as well as design online training programs. In addition, the authors conducted face-to-face
interviews with human resource executives in the UK.
This research investigates both compliance courses (mandated by law) as well as training
programs designed to improve organizational effectiveness. By study corporate human resource
professionals, the authors created a model for designing and implementing effective online
programs.
The use of the DELPHI technique provided the authors with consensus among human
resource professionals as to the techniques and tools necessary to reach employees in this
information age. The face-to-face interviews supplemented the quantitative research and offered
the opportunity to explore training from a cross-cultural perspective.
Because human resources professionals face increased numbers of displaced employees
but retain the need to provide comprehensive training programs, effective online and traditional
training becomes mandatory.
This research explores compliance and non-compliance training in an online versus a
traditional format as well as the benefits of blended training (i.e. some format of both online and
traditional training). The following literature review is taken primarily from the Society of
Human Resource Managers (SHRM) publications.
53
Joseph Basso, Suzanne FitzGerald and Alison Theaker
Relevant Background
Literature concerning traditional training versus online training indicates that each serves
an important purpose. Traditional training works well for soft skills using role play, group
activities, and interactivity. Online training works particularly well for content that doesn’t
change but needs to be viewed every year by a large number of employees. Many companies use
online learning for required compliance training. Blended learning is seen by many human
resources managers/trainers as an excellent means of reinforcing classroom training with online
follow up.
According to Carol Auerbach in a SHRM white paper, content is the most important
factor. Auerbach notes that once you determine the purpose of the content, you can choose among
the following delivery methods: print materials such as manuals; multimedia materials such as
CDs; formal presentations at a conference; informal discussion groups; classroom training;
computer-based training; web-based training or distance learning. Auerbach suggests that a
combination of training methods often produces the best results (Tyler, 2005).
Frances Lilly in a similar white paper distributed by SHRM refers to classroom learning
as synchronous learning with the following advantages: less expensive than asynchronous
learning, appropriate for time-critical materials, familiar to most learners, provides real-time
interaction and application, and promotes coaching and mentoring. Further, Lilly indicates that
the advantages of asynchronous learning include: flexibility, privacy, allows the learner to
proceed at own pace and with a selected learning path. Her recommendation is to use blended
learning where possible using web-based training or computer-based training to introduce facts,
concepts and ideas and then bringing these individuals together for classroom learning (Lilly,
2002).
If web-based learning is selected, Lilly offers the following tips: focus on the business
advantage, provide introductory training for learners, provide online support, provide a group of
coaches, and foster e-learning communities.
Lin Grensing-Pohal in an article on the benefits and pitfalls of e-learning notes that the
benefits include: saving money, reducing travel costs, reducing employee time away from the
office, as well as providing convenient access to training and information. It also offers
consistency in content/delivery because of no instructor variation; faster delivery of timesensitive information; broader access to recognized experts; and greater productivity and cost
savings. The primary barrier to instituting internet-based training is the sufficiency of computer
systems and the system support necessary to maintain the training programs. According to
Grensing-Pohal, e-learning should not substitute for face-to-face learning. E-learning is an
alternative delivery mechanism that can provide tremendous benefits in terms of accessibility and
reach (Lilly, 2002).
Compliance Training
Government regulations have mandated a flood of compliance training across the
country. According to an article in HR Magazine, much of this training concerns corporate ethics
(Grossman, 2008).
Other compliance training concerns AB1825 or a California law prompting companies to
offer preventive sexual harassment training. According to anti-harassment training vendors,
online harassment training is favored by employees because they can take it on their own time in
a private setting. Training vendors also suggest that online courses are easier to manage and more
convenient for all.
54
And, according to the EEOC, the best practice is to provide training that addresses all
forms of unlawful workplace harassment, not just sexual harassment.
Spurred, at least in part, by laws in several states requiring employee sexual harassment
training, many companies are taking the mandate further and educating all their employees about
sexual harassment, regardless of where they work. (A state-by-state listing of sexual harassment
training laws is included in the Society for Human Resource Management’s (SHRM) Sexual
Harassment Toolkit.) Some employers are turning to the Internet to deliver, at a fraction of the
cost, the same content once taught in a classroom setting. However, legal experts advise that
providing the training is not necessarily enough to shield a company from hostile workplace
claims. Effective online training programs must insure that content, as well as the effectiveness of
the material, must be present in order to present a worthwhile program.
According to Joe Beachboard, a shareholder with Atlanta-based labor and employment
law firm Ogletree Deakins, the stakes for employers to ensure a harassment-free workplace are
especially high in California, where damages in hostile workplace lawsuits have no caps.
Beachboard reports that large California-based employers have been fined up to $25 million.
Even in other states where fines are capped at $300,000, costs can still cascade when multiple
plaintiffs and attorney fees are added to the cost of litigation. (Johnson, 2007)
One HR manager with a large California-based oil company who asked not to be
identified used Anderson-Davis online training in 2001 to educate more than 25,000 U.S.-based
employees and is now rolling out refresher training that 3,000 supervisors must take every two
years. In addition, the company is translating the training into several languages and soon will
require managers around the world to take it. The streaming video vignettes and the interactivity
features make the program particularly engaging, she said. She added, “You don’t suffer like you
do with reading long text in an online course.”
Training a global workforce may be easier with the advent of technology, but many social and
cultural issues are not resolved by language translation and electronic delivery of learning. For
example, cultural differences may make the use of metaphors, colors and symbols offensive for
certain users. Many cultures have important meanings associated with certain colors. In Korea,
for example, the color yellow is associated with funerals. Therefore, designing a training
program for a global company takes careful planning and adherence to cultural norms and values
at every facet of the design and development process.
Making Training Work
Suzy goes to her manager, upset:
I’ve got a real problem. I’m not sure I know what to call it, but I think I can
explain it easily enough. My colleague Jackie is, well, let’s just say she’s quite
the party girl…
The thing is, I just don’t want to hear about it every Monday morning ad
nauseam. I mean she really gets around, and she feels compelled to tell me all
about the past weekend’s marathon activities in excruciating detail, and when I
say excruciating, trust me, that is really putting it mildly! So first, it’s really
gross. Second, it’s inappropriate. Third, I’ve got work to do, and fourth, I just
have no interest.
55
This audio-photo vignette is from “Workplace Harassment II,” an online sexual
harassment prevention course offered by San Francisco-based Employment Law Training Inc.
(ELT). (It also is offered through SHRM’s e-learning program.)
The course uses an evolving story that presents students with workplace scenarios. After
watching the vignette—created with photos, audio and text—users must answer interactive
questions dealing with, among other things, appropriate content for discussion in the office and
who should be contacted when problems arise.
The course has manager and supervisor versions; the supervisor version includes
simulations of workers going to supervisors with problems and explains how to react and
recognize potential harassment and retaliation issues.
Paul Mohnkern, HR manager for McLean, Va.-based MorganFranklin, a professional
services firm, said he purchased ELT’s program partly because of built-in mechanisms that
prevent employees from breezing through the course or setting the program to play and then
heading out to lunch. In other words, employees have to allow for the material to sink in to get
credit for taking it (Grossman, 2008).
Such safeguards are important, since courts are demanding that employers do more than
simply go through the motions of providing training, according to Shanti Atkins, president and
CEO of ELT.
Concerned that its sexual harassment training approach couldn’t pass legal muster, the
state of Illinois in 2006 forced thousands of employees to retake the course because records
showed they had completed the training in as little as 10 minutes.
Effectiveness of courses can be difficult to measure, however, especially since most
vendors don’t track test or quiz results. That’s by customer design; at least some employers fear
that poor employee test scores could be used against them by a plaintiff building a hostile
workplace case.
“There are published cases where training is scrutinized by a judge and a jury,” says
Atkins. “Ten years ago they asked, ‘Did you do the training?’ Today they are asking ‘How did
you do it, and what did you use?’ ”
Atkins said that to pass muster in court, training programs should be at least 30 minutes
long, containing enough content and interactivity to make the estimated times real, and use
realistic scenarios and hypothetical situations.
“If employees can blast through the training quickly, they will,” Atkins said. “It’s human
nature.”
Methodology
The authors first conducted a DELPHI study with twelve human resource managers to
arrive at a consensus on three issues with respect to e-learning. Respondents participated in three
rounds of questions for purposes of this study. In round one, respondents were asked to provide
their answer to the question in list form. In the second round, the authors gave respondents a
complete list of all answers for each question. Respondents then rank ordered the answers
beginning with their highest ranked answer to their lowest ranked answer. In the third round, the
authors sent respondents the tabulated results from the second round. They were asked to re-rank
the responses to see if any changes occurred.
The questions respondents replied to are as follows:
1) What are the primary reasons that companies now use e-learning as part of their
human resources training program?
56
2) With respect to learning effectiveness, what benefits do participants receive from elearning?
3) What, if any, problems do organizations encounter with e-learning?
After completing the DELPHI study, the authors conducted a series of personal
interviews with human resources professionals in both the United States and England.
Respondents were asked a series of questions to determine their feelings toward e-learning and to
see how it fits into their organization’s business model.
Results
As an answer to the question regarding primary reasons for using e-learning as part of
their human resource training program, respondents listed the following in rank order:
1) E-learning saves time because participants do not have to be pulled from their job to
participate. E-learning participants can receive training in short blocks of time during
lunch breaks or at times before and after work.
2) E-learning is a cost-effective way to deliver training, especially for exempt
employees because they are not separated from daily activities and may elect to
receive training outside of the workplace.
3) Training works well in intervals thereby improving retention and satisfaction.
4) Compliance courses can be outsourced and thus the organization does not have to
shoulder the financial burden of bringing in live experts such as attorneys to facilitate
learning. The cost of live experts is prohibitive for many companies.
5) E-learning saves the cost of hiring additional staff such as program designers and
facilitators.
With respect to learning effectiveness, human resource professionals listed the following
participant benefits of e-learning.
1) Younger employees (those who fall into the classification of Generation X or
Generation Y) feel comfortable with e-learning because it mirrors a learning style
that they constantly use.
2) E-learning allows learners to choose their learning path.
3) E-learning offers privacy where participants can experiment.
4) Participants enjoy the scheduling flexibility of e-learning.
5) E-learning provides standard, consistent information.
The third question concerning problems with e-learning elicited the following responses.
These responses are ranked in order of most problematic to least problematic.
1) E-learning is not appropriate for dynamic content. These programs have a short shelf
life and require frequent updates.
2) E-learning does not work well for complex material. This type of training works most
effectively with an expert facilitator present to address questions.
3) E-training is time consuming to develop.
In summary, the literature review predicted that e-learning is effective for some types of
training, particularly compliance training. These respondents verified that prediction. The
literature review also cited examples of blended learning to convey more complex topics and
allow for question and answer sessions. This study confirms that finding.
57
Personal Interviews
In general, respondents from both the United States and the United Kingdom agreed that
e-learning has become a vital part of organizational training programs. The human resource
professionals who participated in the study felt that e-learning was particularly important for
younger workers who weren’t daunted by spending long blocks of time online. However,
respondents indicated that the mature generation (workers 55 and older) were less comfortable
with e-learning.
According to HR managers, the BBC has adopted a considered approach to e-learning.
As an early adopter of e-learning, the BBC has developed a “learner centered” design. Rachel
Simmons of the BBC notes that training 16,000 employees (mostly compliance training) in a tight
timeframe with a small budget necessitates e-learning.
According to Charles Jennings, Head of Global Learning and Development at Reuters, elearning has been successful, but only accounts for 5-10% of all training there. He also notes the
problems of e-learning include user access and technology. Reuters uses virtual classroom online
seminars to update worldwide staff on changing applications.
And according to Marten Staps of Hilton International, Hilton has discovered a good
mechanism for delivering e-learning worldwide through its university—www.hiltonuniversity.com. Most Hilton Hotels now have an e-learning champion or learning manager. Staps
feels that e-learning will continue to play an important role in training and development for
Hilton International.
All respondents agreed that e-learning works well for certain compliance programs, but
more complex topics require a trained facilitator. Blended learning, combining live facilitation
with e-learning was deemed as the best method for organizational training within and across
cultures.
Respondents from the United Kingdom appeared most ready to implement blended
learning into their current e-learning design. However, respondents from both the United States
and United Kingdom universally agree that blended learning provides the best option for
successful e-learning programs. According to one respondent from the United States, “Corporate
culture is a difficult thing to change, and the age diversity that still exists in today’s workforce
prevents organizations from making radical changes too quickly.” She added, though, that the
shift to blended learning or complete online learning will eventually become the dominant force
in corporate training programs. Respondents seemed to universally agree that the younger
workers are more responsive and comfortable with e-learning, and that the potential savings for
companies will make traditional facilitator centered training more of a specialty rather than the
norm.
References
Grossman, R. (January 2008). Hard facts about soft skills e-learning, HR Magazine, vol. 53, No. 1.
Johnson, M. (March/April 2007). A “Bifocal Approach” to anti-harassment training. SHRM White
Paper.
Lilly, F. (May 2002). Web-based training: Moving from C-learning to E-learning, SHRM White Paper.
Tyler, K. (February 2005). Do the right thing, HR Magazine, vol. 50, No. 2).
58
Collaborative Corporate Social Responsibility:
A Case Study Examination of the International Public
Relations Agency Involvement in the
United Nations Global Compact
Leslie Simone Byrd
Howard University, USA
[email protected]
This research explored how two international public relations agencies—Ketchum, Inc., and Ruder Finn,
Inc.—came to participate in the United Nations (UN) Global Compact. The UN Global Compact is a
voluntary, multi-sector partnership organization, which encourages participants to address complex social
issues. Participants must integrate the 10 Compact Principles—grouped around the themes of anticorruption, and human, labor and environmental rights—into their business practices. Incorporating
Grunig’s situational theory of publics to interpret the findings, the research questions sought to identify:
(a) the events that led these agencies to initiate participation in the Global Compact, (b) what, if any
challenges were presented before the agency joined the Global Compact, and (c) how the agency has
integrated the 10 Compact Principles into the agency’s practice areas. To evaluate these research
questions, a case study was created and included two in-depth interviews with one senior-level executive in
each agency, as well as analysis of primary and secondary documents. Findings indicated that both
agencies had yet to fully integrate the Compact Principles into their own internal functions and primarily
used the Global Compact as a tool for counseling clients. However, both agency executives revealed that it
was going to become necessary for their agency to involve themselves in the Global Compact, within and
across the entire agency, particularly in terms of confronting issues such as ethics and diversity. This
research extends the body of knowledge in public relations by examining the growing interest in corporate
social responsibility initiatives and how it influences the practice of public relations.
The concept of globalization is quite broad and invokes a multitude of ideas and thoughts
about the subject. Furthermore, it is a concept that is frequently mentioned and asserted in
politically-charged discourse, but at the same time, not easily defined or understood. In general,
globalization is the process by which a country and their government embrace and participate in a
global, free market economy and political democracy. Although this provides a broad
understanding of the concept, others have narrowed the definition, specifically in terms of “three
democratizations—technology, information and finance” (Friedman, 2000, as cited in Wolf,
2004, p. 16), which have brought prosperity to already well-established, industrial nations, while
simultaneously accelerating the devastating effects of this global economy, particularly on those
in developing countries. Because of these economic and political movements in society,
opponents of globalization argue that “it has made the corporation the most powerful institution
on earth” (Frank, 2000, as cited in Jandt, 2006, p. 10). In addition, Clapham and Cooper (2005)
note that “large corporations in control of significant assets wield their power and influence to
create a favorable environment in order to be more profitable” (p. 288). On the other end of the
spectrum, supporters of globalization assert that because the process opens up previously closed
economies to global trade, it can be beneficial to people in countries where certain goods and
services, such as medicine and general healthcare, are a necessity. Friedman (2006) suggested
that globalization has helped to ‘flatten’ the world, and thus:
59
Leslie Simone Byrd
We are now connecting to all the knowledge centers on the planet together in a single
global network, which—if politics and terrorism did not get in the way, could usher in an
amazing era of prosperity, innovation and collaboration, by companies, communities, and
individuals (p. 8).
Although, Friedman attempts to convey infinite optimism, he seems to understand that on
the other end of the spectrum the very same ‘flattening’ that has helped to connect the world and
should, in theory, bridge the gap between wealth and poverty, has also fueled the deep divide
between vast groups of people in terms of access to equal shares of wealth, medical care,
technological infrastructure and economic resources. As a result, there is an ominous side to
globalization that causes the playing field to be “leveled in a way that draws in and suprempowers
[sic] a whole new group of angry, frustrated, and humiliated men and women” (Friedman, 2006,
p. 8). Those who have been negatively affected by the globalization process and feel powerless
in bringing the attention of their plight to their government officials, have engaged in violent acts
to demonstrate their opposition to these changes, or lack thereof, in their own societies. At first
glance, it may be difficult to conceptualize how the public relations practice could be useful in
managing issues related to globalization. However, after further exploration, it is understood
among public relations professionals that if a communication program or campaign is to have the
slightest opportunity for success in the global marketplace, it is going to be contingent upon the
practitioner’s awareness of world affairs, local and national media systems.
Finally, there must be some basic understanding of the public relations practice in a
particular country and region. The globalization of business has “created the need for
international public relations practitioners to identify, study and understand world views,
mindsets, and habits of their global public in order to effectively communicate” (Ihator, 2000, p.
38). Furthermore, the public relations practice is being influenced by the changes that have
grown out of the globalization process. Thus, identifying the role of public relations, especially
in the age of globalization, remains a daunting task. This is because practitioners who are
charged with developing global CSR programs need to understand that with the emergence of
globalization, they can no longer convey messages and build relationships with organizational
stakeholders in a vacuum. Therefore, it is imperative for public relations professionals to extend
themselves by acting as the conscience of the organization they represent and to act in a similar
fashion on behalf of the publics that they are accountable to. Moreover, it is necessary for these
professionals to inquire about and determine what is best for the organization. At the same time,
they must also consider what is best for the internal and external publics that have vested interest
in the organization’s competitiveness and survival.
Focus of the Study
At some point, the leadership in two American-based, international public relations
agencies recognized a need to address global citizenship issues more thoroughly through their
own work—particularly in an era where external publics demand greater accountability and
socially responsible behavior from organizations functioning in their communities. The demands
of creating transparent measures, such as allowing public access of annual report information as
stipulated by the Federal government, has also become a common practice in today’s corporate
environment. However, there has been little research that examines how large corporations
manage relationships with external, partnership organizations.
60
A Case Study Examination of the International Public Relations Agency
Involvement in the United Nations Global Compact
The United Nations (UN) Global Compact was developed to encourage participation
from organizations in a variety of sectors, such as non-governmental organizations (NGOs), other
UN agencies, business associations, academic institutions, labor organizations and private
business. These organizations formed a multi-sector partnership, which essentially works to
achieve the common goal of addressing human and environmental rights issues through their
organizational operations. The Global Compact encourages these organizations to facilitate the
use of the most applicable of the 10 stipulated Compact Principles into their business operations.
Participation in the Global Compact could be viewed as a proactive measure on the part of the
participating organization because of its voluntary nature. Furthermore, participation in the
Global Compact has the potential to reaffirm the organization’s commitment to social justice and
human rights through the endorsement and use of the Compact Principles. Finally, it is possible
that this participation demonstrates the organization’s long-term interest in satisfying more than
financial outcomes.
There have been studies that have addressed the relevance and the effectiveness of the
Global Compact in the current business environment. However, most of these studies have not
examined how the leadership or dominant coalition 1 of an organization came to recognize that
joining the Global Compact was to their benefit. These studies have not addressed how these
organizations initiated their participation in the Global Compact. Moreover, these examinations
have not identified how members of the dominant coalition have begun to make use of their
involvement in the Global Compact, nor have they determined how these participating
organizations have integrated the Compact Principles into their business practices.
To address these deficiencies in the public relations body of knowledge, this study will
incorporate an interpretive approach to explore the senior-level executives who form the
dominant coalition in two international public relations agencies that participate in the Global
Compact. Specifically, this research will be aimed at identifying how these senior-level
executives: (a) decided that joining the Global Compact was beneficial and necessary for their
agency, (b) integrated the ten Compact Principles are integrated into agency’s operations and
negotiated their use, and (c) if, by participation in the Global Compact, display activist behavior
in their interactions and decision-making tasks within the organization. These concepts are most
applicable to this research for several reasons. First, the concept of problem recognition was
developed in order to identify the process in which people determine that there is a situation that
needs to be addressed. This concept also includes consideration of what steps should be taken in
order to deal with an issue. The second independent concept of constraint recognition seeks to
explore how these parties determine the stumbling blocks that might impede their ability to
properly address the situation. The final concept, level of involvement, examines the connection
that people feel to the situation that they are confronting.
Research Questions
RQ1: What dynamics led the dominant coalition members in these international public relations
agencies to initiate participation in the Global Compact?
RQ2: What obstacles did these individual dominant coalition members identify as challenges to
their agency’s participation in the Global Compact?
1
The term dominant coalition will be used to refer to group of people in leadership positions responsible
for the organization’s decision-making practices, specifically senior-level executives.
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RQ3: How are the 10 Compact Principles integrated into the agency’s work?
The use of the situational theory of publics is incorporated into this research to help
situate the conceptual underpinnings of the study. Situational theory originated out of the
positivist paradigm and has traditionally been incorporated into quantitative studies. Although
this has been the case for quite some time, the independent concepts 2 of problem recognition,
constraint recognition, and level of involvement will be applied in a qualitative study.
Specifically, these concepts will be used to identify how dominant coalition members initiated
participation of their agencies in the Global Compact, what obstacles emerged that might have
hindered participation in the Global Compact from occurring, and to what extent the agency has
integrated the ten Compact Principles within their agency operations. The third research question
seeks to develop an understanding of how the ten Compact Principles are included into the
agency’s business operations
Over time, the theory continued to be developed and was eventually used as a way to
examine the management viewpoint of the public relations practice, as a tool for segmenting and
communicating more effectively with desired and intended publics. Today, the theory continues
to undergo many transformations along its path of development. From primarily being used in
studies that examined public relations from an organizational-management perspective, it
continues to be broadly applied and studied in various contexts and methodological approaches.
Because public relations professionals often use campaigns to communicate with various publics
on issues, goods and services, it is necessary to identify significant publics that are most closely
related to the messages that are being communicated. Not only is selection of target publics
important, but determining the channels that will be most effective for the communication of
these messages are also critical to the success of a public relations campaign. A public is best
defined as, “a homogeneous group of people who face and recognize a similar problem and
organize for action” (J.E. Grunig, 1997; J.E. Grunig & Hunt, 1984; J.E. Grunig & Repper, 1992,
as cited in Sung, 2007, p. 177).
The situational theory of publics incorporates three independent variables and two
dependent variables in order to “forecast the differential responses from publics to important
issues. These variables are situational in that they explain the cognitions, attitudes and behaviors
that individuals have of specific situations” (Sung, 2007, p. 177). The independent variables
consist of: (a) problem recognition, (b) constraint recognition and (c) level of involvement, and
the two dependent variables are: (a) information-seeking, and (b) information-processing.
Problem recognition encompasses how individuals who pursue and are actively engaged in a
particular concern or issue fall into the category of information-seeking, while those who are
passive bystanders of information are more aligned with information-processing behavior.
In regard to the present study, senior-level executives were examined as being members
in their agencies’ dominant coalition. Therefore, the three independent concepts of situational
theory of publics were used to examine these dominant coalition members as a public of the UN
Global Compact. The goal was to identify: (a) the events that prompted their agency to pursue
participation in the Global Compact, (b) what, if any, challenges emerged before the agency
could participate in the Global Compact, and (c) how each agency had begun to incorporate the
10 Compact Principles into their business functions.
2
This study will refer to the situational theory’s “variables” as “concepts” from this point forward, as to
avoid using terms that are more commonly applicable to quantitative studies.
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While the situational theory has its origins in quantitative studies, a new generation of
scholars is beginning to emerge and contest the status quo. For instance, Aldoory and Sha (2007)
argued for further exploration of the theory using qualitative methods. Pompper (2005) contests
“the positivist paradigm—assuming a stable, law-like reality by using primarily quantitative
methods—remains the institutional norm for prestigious academic journals and for policymakers”
arguing that the interpretive approach allows scholars to explore alternative avenues and bring
overlapping and divergent experiences to the surface that address a particular phenomenon.
Because of this shift, there has been gradual progress in the acceptance of qualitative approaches
in mainstream public relations research, and although this evolution has been slow, the advocacy
for more interpretive studies in the field, has not been in vain. Addressing the growing difficulty
in obtaining quantitative data, Aldoory and Sha (2007) also found that soliciting feedback from
participants and respondents using survey methodologies in situational theory-focused research
became a daunting process. Therefore, the use of qualitative methods would provide the
researcher with “ways to gauge publics’ levels of problem recognition, involvement and
constraint recognition” (p. 349).
Review of Relevant Literature
The current scholarly contributions in contemporary public relations research which have
introduced numerous international and alternative perspectives, continues to vigorously manifest
itself as a relatively new phenomenon within the discipline. Furthermore, a great deal of this
scholarship is positioned to challenge the dominant, post-positivist applications to contemporary
examinations of the field. Though much of the focus has been from the dominant paradigm, there
have been various scholars (Cheney & Christensen, 2001; Curtain & Gaither, 2005; Berger, 2005;
Berger, 2007; Holtzhausen, 2000; Holtzhausen, 2002; Holtzhausen and Voto, 2002; Holtzhausen,
Petersen & Tindall, 2003; Mickey, 1997; Motion and Weaver, 2005; Pompper, 2005; Schultz,
1996; Toth, 2002) that have begun to challenge the prevailing approaches, and rallied for a
paradigm shift. In doing so, these scholars have sought to introduce and apply alternative
perspectives to scholarly public relations analyses, specifically by questioning the dominant,
organizational-focused perspective. This area of inquiry must continue to be developed by public
relations scholars because:
It is important that a discipline’s theoretical agenda not simple be beholden to trends
already present or incipient in the larger society. Otherwise, a discipline can fail to
exercise its own capacity for leadership on both practical and moral grounds (Cheney &
Christensen, 2001, p. 167).
CULTURAL and international public relations
Studying public relations from an ethnocentric (i.e., American, Western) angle is not
necessarily an unhealthy approach, because without many of the scholars approaching the
discipline from this viewpoint, the Excellence Theory may not have ever been posited and
become the seminal work in the study of public relations. However, by continuing to narrowly
focus public relations scholarship in this direction, it has facilitated a narrow scope upon which
the study of the discipline has been viewed, thus removing or casting significant global
perspectives out of the mainstream and into secondary status. With the emergent and promising
research within this area of public relations, one of the most evident voids in the public relations
literature has been the lack of an established, clear understanding of what international public
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relations is. Certainly, ideas and interpretations have been placed within the public sphere for
discussion and debate, but without some evident prescription of how global public relations
differs from our widely-used, domestic definitions, it will be difficult to move forward with the
proper expansion and theory-building in the discipline’s body of knowledge.
According to Wakefield (2008), one of major issues is that, from his perspective, “most
people don’t yet have even a basic understand—at least not in the United States” (p.140) of what
defines international public relations. Oftentimes in the educational, public relations setting,
students are presented with case studies of how public relations is practiced in other
regions/countries, but are infrequently exposed to how a multinational corporation, which is
American-based, handles communications efforts in those regions.
To better position
communication strategy that spans cross-cultural channels, Zaharna (2001) addressed this
concern by positing an in-awareness approach that could be applied to international public
relations practice. With foundations in the intercultural communication discipline, the inawareness approach is beneficial for public relations practitioners whose work functions on an
international stage because “by bringing aspects of culture ‘in-awareness’, the many distortions
and misunderstandings that plague cross-cultural communication could be explained and even
compensated for” (p. 136).
Overall, this approach calls for an exhaustive examination of the location where
communication will be targeted. This is done through the development of three, key profiles of
the country itself, its cultural characteristics and attributes, and an assessment of traditionally
used communication practices, in order to understand how public relations strategy might be
more efficiently developed. Within each profile, there are sub-categories that can be used to
guide practitioners toward a more holistic analysis of their target audience. For example, the
country profile includes an assessment of a particular country’s economic, media, political and
geographic infrastructure. These elements alone are critical to a communicator’s appreciation for
the publics with whom they want to communicate.
ORGANIZATIONAL Management
Organizations that have a clear dominant coalition positioned at the top are more apt to
display cultural traits that are more centralized, and highly authoritative. Centralized
organizational cultures are inclined to lean towards “top management, including the board,
explicitly reserving the right to decide all appointments, major decisions and universal control”
(Bartlett and Ghoshal, 2002, p. 197). Highly authoritative, organizational cultures tend to prefer
employees to exhibit highly formal behavior, including they way in which communication
activities which are situated in an asymmetrical approach. In addition, employees are not
consulted on or included in major decision-making processes. Thus, “bureaucracies fragment
organizations by developing detailed, overlapping requirements that necessitate managerial
oversight” (Cloke & Goldsmith, 2002, p. 93).
In contrast, if an organization operates from a perspective that is more participative, the
organization will likely tend to lean toward an environment that supports greater, dialogic
communication. In addition, these are environments where teamwork is valued, and decisionmaking is extended towards all members of the team. In this setting, communication is both twoway and symmetrical and often more effective than highly authoritative organizations. For
example, Cloke and Goldsmith (2002) note that highly effective teams tend to exhibit one or
more of the following qualities: focused goals and objectives, consumer-oriented, shared
leadership among those involved, as well as a “high-level of trust, respect and honesty; a
willingness to work through and resolve conflicts; respect for diversity and strong organizational
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support” (p. 201). Essentially, these organizations are not just concerned with building and
maintaining relationships outside the organization, but internally as well. The level of
sophistication in determining how an organization will approach communication with a global
audience is inspired by how the organization operates its own cultural landscape. Therefore, the
position is that if culture is truly going to influence the practice of international public relations,
in a more expansive and socially responsible way, then it is to the organization’s benefit to move
toward adopting an organizational culture that is both decentralized, or at the very least, attempts
to foster a more participative, cultural environment.
CSR and Coalition-Building
While it is imperative to describe the activities that constitute a CSR program, it is
similarly important to identify and review some of the seminal definitions of the concept.
Therefore, in order to appropriately place the context for the proposed research, this section will
define the concept of CSR, as well as discuss its application and influence on the public relations
practice. Carroll (1979, as cited in Pirsch, Gupta & Grau, 2006) posited that CSR—as a
construct—“encompasses the economic, legal, ethical and discretionary expectations that society
has of organizations at a given point in time” (p. 126). Furthermore, according to Pirsch, Gupta,
and Grau (2006), Carroll also “argued that these responsibilities are not only performed for the
firm’s sake, but also for the sake of society at large” (p. 126). Ledingham and Bruning (2001)
indicated that “although the relationship [that is formed through community involvement] is
mutually dependent, it is not necessarily mutually beneficial” (p. 527). This means that any
involvement in a community setting must be carefully planned as to maximize the benefit to both
the community that is receiving the benefit, as well as to the company, so as to maintain their
status within the community in which they operate.
When the Global Compact was initially established by former Secretary General, Kofi
Annan in 1999, it seemed like a partnership from which both parties—the organization and
participant—could benefit, especially in light of the rise in activism during the mid-1990s against
globalization. Perhaps this is because, as noted by Deva (2006), corporations may have begun to
think that “this partnership could somewhat soften the resistance that they were facing from anticapitalism, anti-WTO and anti-globalization movements” (p. 110). The UN Global Compact was
developed to provide an avenue for the UN to address and persuade action from a formative
coalition of multi-sector signatories, which are brought together and assembled in order to
confront corporate citizenship and development issues around the world. In addition, the Global
Compact has experienced rapid growth among its participant base. For example, in 2005, there
were over 2,000 companies and organizations from over 80 countries (Global Compact Office),
and the most recent figures, as of June 2007, report that there are now more than 4,000
participants from more than 100 countries (Global Compact Annual Review, 2007). Consisting
of diverse signatories/members, the Global Compact initiative actively encourages participant
organizations and their executive leadership to enter into a voluntary partnership to maximize
societal benefits, by endorsing and effectively integrating the guiding principles of the program
philosophy into their daily business practices. Four themes were established, and within those,
ten Compact Principles emerged. Addressed in the Global Compact Office (2005) literature, the
principles are developed around and address concerns related to human rights, labor, the
environment and anti-corruption. Sustained participation in the Global Compact is contingent on
the organization’s timely submission of annual Communication on Progress (COP) reports, which
became a standard practice in 2005. These documents are mandatory and specifically outline how
the participating organization has used the selected Compact Principles—based on their
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organizational needs—to develop their practices and tasks. In addition to providing basic
information on how the Global Compact influences the organization’s business functions, the
COP documents, they help to preserve “the integrity of the initiative, but also builds the Global
Compact brand and the broader business case for corporate citizenship” (UN Global Compact
Annual Review, 2007, p. 51).
Williams (2004), in a study that examined both praise and criticism of the Global
Compact, began his analysis with a discussion of how the initiative came to fruition. In doing so,
the author stressed that the Compact was developed as a voluntary process, however “U.S.
businesses, for the most part, have not signed on”. There could be many reasons for this.
Perhaps the most glaring cause is the litigious nature within the United States. Aside from fear of
having their organization’s so-called, ‘dirty laundry’ aired for public scrutiny, most companies
tend to remain hesitant on the issue of the Global Compact and instead opt to funnel energy, time
and financial support to the development of their own charitable activities and causes. Another
possibility as to why more U.S.-based companies haven’t signed on to the Compact surrounds the
issue of how to precisely measure accountability standards. In this regard, most of the criticisms
are coming from scholars who study codes of conduct and “see the Compact as another code
without accountability, a public relations document without substance” (p. 757). Still, those who
suggest strengthening organizational codes of conduct must be well aware that, even in spite of
the best intentions, wrongdoing could occur at any time by a variety of organizational actors. A
code of conduct is merely a composition of words strung together and placed on a corporate
website; unless organizational leadership give it meaning and value by their actions and behavior,
then it is highly unlikely it would be strictly adhered to.
Though the Global Compact is praised as a well-intentioned program for global social
responsibility, Prasad (2004) argues that the Compact has largely been more beneficial to
developed nations, rather than those who are in dire need. In his specific analysis of the Pacific
Forum Island Countries (FICs); in countries such as Papua New Ginuea and the Solomon Islands,
he asserts that the majority of the environment in this location is still very much fragile, not
having the basic necessities such as “clean water, sanitation and access to health and education”.
Additionally, markets are restricted in what they can do, locally, for citizens (p. 66). The truth of
the matter is that the Global Compact is not a quick-fix, nor is it a utopian solution to a
multifaceted problem that has existed for quite some time. Nevertheless, the initiative should be
understood as a work in progress and recognized as one of the few large, international
organizations that has been successful in fostering such an endeavor. Using the premise set forth
by Theiren and Pouliot (2006), the Global Compact can be viewed as an expression of an
emerging trend of international cooperation. Whereas for decades, the business sector was seen
by UN agencies as contributing the problem of development, it is now considered as part of the
solution. Because of this change in thinking on the part of the UN, the Global Compact stands
out because it offers an opportunity to build a coalition among the private sector and the UN to
encourage partnerships and diplomatic efforts.
Methodology
Overall, a single, embedded case study was developed which included three subunits of
analysis: (a) in-depth interviews, (b) primary document analysis, and (c) secondary document
analysis. In-depth interviews were conducted with one senior-level executive from each of the
two agencies that were examined. Primary document analysis focused solely on the
Communication on Progress (COP) reports which must be submitted on a bi-annual basis by
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every Global Compact participant. Secondary document analysis included any agency-produced
materials, such as speeches/presentations, as well as articles written for business publications.
Interviews lasted between 30-45 minutes, and used a semi-structured interview protocol.
Questions were developed around the three independent concepts of: (a) problem recognition, (b)
constraint recognition, and (c) level of involvement. In terms of identifying the issues that relate
to problem recognition, the research participants were asked about how the management and
leadership in the agency arrived at the decision to join the Global Compact and how they felt
about their agency’s participation in the Global Compact.
Because constraint recognition
identifies what obstacles might prevent change from occurring, participants were asked questions
about how others in dominant coalition assessed the worthiness of joining the Global Compact,
and what steps were taken to determine how the Compact Principles would be integrated into the
agency’s practice. Two COP reports were analyzed from each agency. Also, a third document
which was not characterized as a COP, but rather a case study from that agency’s work with the
Global Compact Learning Forum, was included because it was listed among the COP reports. It
should be noted that these COP documents are purely self-reported data from the agencies. Aside
from this fact, these COP reports do provide a starting point in understanding how organizations
that participate in the Global Compact say how they have adopted and integrated the most
applicable of the 10 Compact Principles into its operations. Secondary document analysis
examined and described the additional documents that were provided by each agency executive.
In order to adequately address the desired goals of the research, open coding techniques
to both the interview and document data were applied. In terms of the in-depth interviews and the
document analysis, this analysis integrates “the initial, unrestricted code of data, where the
analyst usually goes through the text line by line and marks those chunks of text that suggest a
category (Lindlof & Taylor, 2002, p. 219). Specifically, the data was framed around the research
questions and theoretical frameworks that were integrated to drive this research. After the
completion of each interview session, the participant’s responses were fully transcribed and
examined to establish patterns or themes that emerged. Interview data that corresponded to the
situational theory of publics concepts of: (a) problem recognition, (b) constraint recognition and
(c) level of involvement were assessed by applying a textual analysis. Textual analysis was
selected over traditional content analysis because the latter tends to “obscure the interpretive
processes that turn talk into text” (Denzin & Lincoln, 2000, p. 640), while the textual approach
allows for greater understanding of the social world that is being observed.
Results
Both Ketchum and Ruder Finn were two of the first American-based, international public
relations agencies to become active participants in the Global Compact in 2001—a year after the
initiative was formally launched. Since that time, both agencies have pursued integration of the
Compact Principles through both similar, and diverse ways. What sets these agencies apart from
the more than 3,500 corporate participants, is that the work of their organizations is not rooted in
the manufacturing of products and services—at least in the traditional sense. For instance, neither
Ketchum nor Ruder Finn produces computer hardware or apparel. However, international public
relations agencies are in the business of creating and disseminating strategic communication—on
behalf of their clients which do include manufacturing companies.
Although many of the Compact Principles are more in keeping with manufacturing
companies, public relations agencies must still consider the most applicable of the 10 existing
Compact Principles that might fit into the overall operation of the agency. In a preliminary
examination of the interview transcripts and documents that were examined, involvement in the
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Global Compact was focused to occur on two levels within the agencies. On the internal level,
there are a number of Compact Principles, particularly those that relate to labor practices, which
are applicable and can potentially assist in the shaping of organizational policies and initiatives
within the agency. On the other end of the spectrum and from an external perspective, the results
have suggested that while they are not able to integrate the use of all ten Compact Principles,
these agency executives have used their participatory status in the Global Compact to educate and
counsel current and potential clients as to the benefits of belonging to an international initiative.
AGENCY Motivation for Joining the Global Compact
The first of the three independent concepts of situational theory, problem recognition,
revolves around the identification and understanding of how a situation, or in this case, an
opportunity is discovered. Although the point at which these agencies officially became
participants in the Global Compact is significant to this research, the theoretical framework also
suggests that the desire to seek further information about the problem or opportunity must be
present in order to proceed with taking action. Therefore, it was just as important to understand
what events led these agency executives to pursue participation in the Global Compact.
Additionally, Grunig posited that based on the circumstances involved, decision-makers
will determine how to proceed based on the analysis of events that prompted a move in this
direction and the information that was obtained. As such, the first research question was
developed around this theoretical concept of problem recognition, and sought to lay the
foundation for understanding how leaders in American-based, international public relations
agencies decided to pursue participation in the Global Compact.
During the in-depth interview sessions, a series of questions were asked of these seniorlevel executives that directly related to how the agency arrived at the decision to join the Global
Compact. While the primary questions asked how the members of the agency’s dominant
coalition decided to join the Global Compact, there were follow-up questions that sought to
extract additional information as to the identity of other key decision-makers who might have
played a role in this process. Specifically speaking to his agency’s decision to join the Global
Compact, one executive said:
It was a natural decision to become part of an organization that would promote the
concept [of corporate social responsibility] not only domestically but globally; to
contribute to that organization in terms of the experience and acumen that we had
acquired of the many years; it certainly was a place where our expertise could be
exhibited.
In contrast to the first agency’s motivation for joining the Global Compact, the response
from the second agency executive interviewed suggested that this agency’s participation in the
Global Compact emerged “in an unusual way”, through a previous interpersonal relationship
between the agency’s chairman, David Finn, and former Secretary-General Kofi Annan. Because
of this close relationship, this agency executive noted:
We worked closely with him [former Secretary-General Kofi Annan] on different
projects and when his idea of the Global Compact came up, we were strong supporters.
We actually did some PR work to publicize this program.
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PERCIEVED Obstacles to Participation in the Global Compact
The second independent concept of the situational theory, constraint recognition, rests on
uncovering what if any obstacles or protests there may have been to the acceptance of a particular
message by the intended audience. In analysis of this second concept is also when hesitation
might arise because individuals feel limited in terms of their ability to influence a situation. In
this research, this concept of constraint recognition was examined by asking the interview
participants if there were individuals, specifically those in positions of power, who voiced
opposition to the agency’s interest in participating in the Global Compact. In the event that
responses were not as detailed, accompanying questions sought to uncover if interview
participants had personal concerns that the voiced about participation in the Global Compact,
what those exact issues were and how they were resolved.
On a broader level, the participants were asked if: (a) there were other members of the
dominant coalition who were not in favor of joining the Global Compact, (b) what issues were
raised during the discussion and how did they bring to discussion, and (c) how their concerns
were addressed. While both participants noted that there was virtually no existing hesitation to
the Compact, they did note difficulties on the part of the organizations, mostly corporate, to
which they frequently provided counseling services.
On the issue of whether or not there were individuals in the organization who voiced
concern and protest against the agency’s participation in the Global Compact, the interviewee
indicated that while the internal process of joining the Global Compact “moved up the chain very
rapidly”, there were some difficulties in terms of legal department necessitating an evaluation of
the agency’s liability, if any, would surface because of the participation in the Global Compact.
For instance, some companies that are clients that represent American-based
multinational corporations are hesitant to join the Global Compact because of the legal
atmosphere in the United States. Particularly, there has always been a culture that relies on
vigorous litigation, especially as it relates to and involves large, multi-billion dollar corporations,
and because of this, the agency executive said, “that is why if you study the membership rolls,
you will find that American-based companies are not as heavily represented in the membership
ranks as companies that are headquartered in Europe or Asia”. Furthermore, he added:
That is largely a question of the legal counsel officers in many of these companies who
have raised concerns about what truly membership in the Compact represents, and what
obligations it really requires, and whether there are legal commitments that could be
costly and could be difficult to implement. So that was not a problem with us but with
some companies that has become a problem. The Compact has addressed that in terms of
securing a letter from the American Bar Association, which I think ameliorates some of
those concerns.
INTEGRATION of the Compact Principles into the Agency Business
In addition, one of the interview participants openly discussed how agency employees in
other practice areas had no genuine knowledge or insight into the agency’s involvement in the
Global Compact. Because of this, the agency is seeking to increase internal awareness of the
Global Compact by developing a new campaign that will specifically target all agency
employees. The overall goal is to make employees more of the central focus for the application
of the Compact Principles because “it is based primarily on seeing to it that our employees around
the world understand that we indeed do want to walk the talk”. In addition, he also added:
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It is not a matter of simply advising our clients, but that we want to act responsibly and so we will
be encouraging our employees to be much more environmentally conscious; they are, as well. A
lot of this program development is really responsive to the initiatives of employees themselves,
who want to work for a company that clearly, not only meets the standards of the Compact but in
day-to-day operations - to use a terribly overworked word - that it is truly green. So we are
working at that and we will have a comprehensive program that we will announce very shortly.
The second agency executive said that his agency’s emphasis on integrating the Compact
principles, has been concentrated in “the communications area in terms of how we, first
of all promote the Compact. Second, how we encourage our clients and others to join the
Compact and we generally operate in a corporate responsibility mode”.
Analysis of the interview data and COP documents indicate that dominant coalition
members determined that there was some level of difficulty in integrating the majority of the 10
Compact Principles into their agency’s practice. Both suggested, in the interview sessions, that
although communications firms do provide a service, they differ from corporations that
manufacture consumer goods, such as apparel or food products. They also implied that the
Compact Principles are of more use to such corporations, and because many are clients of their
agencies, they counsel clients on the benefits of participating in the Global Compact.
Of the two agencies examined in this research, Ketchum’s approach to engaging in the
Global Compact appeared to take a more holistic approach. Among the two sets of available
COPs, the documents provided by Ketchum were much more exhaustive in terms of (a)
describing what the agency has done to address the current Compact Principles, as well as (b)
outlining other initiatives that the agency has pursued on its own accord that would be
commendable by Global Compact standards. While Ruder Finn’s COP did not engage in as
much detail as Ketchum’s COPs, they engaged in a somewhat thorough description of each
enterprise that the agency has pursued in the spirit of the Global Compact. In particular, various
programs including a global HIV/AIDS campaign in China and an integrated marketing
communications program to support the sale of baskets made by Rwandan women were included
in this COP installment. Overall, these programs adhere to the Compact Principles, and though
specific Compact Principles are not identified by name, these initiatives most closely relate to the
principles that address human rights.
While the COPs provided a fitting introduction as to how these agencies have negotiated
their participation in the Global Compact within their respective organizations, secondary
document analysis was adapted towards comprehension of how the agency’s commitment to
upholding the Compact Principles converged with documents that emerged from speaking
engagements at trade association meetings, and through articles composed by agency executives.
The glaring difference is that Ruder Finn’s COP lacks the detail of Ketchum’s COP.
SECONDARY Document Analysis
The secondary documents collected were analyzed using the same criteria applied to the
primary documentation. These documents are also self-reported, and extend the information that
was retrieved through the COP reports. In the Winter 2006 issue of Corporate Responsibility
Officer, which is described as a “useful editorial for executives faced with making corporate
responsibility decisions for their organization” (CRO, Media Kit, 2007), an article was written by
one of the agency executives who participated in this research. The article was shared as a way to
demonstrate how this agency has worked to involve the mission of the Global Compact into the
goals of the agency, but to also convey those sentiments and provide valuable advice to other
70
CSR officers. The piece emphasizes how to approach engaging in dialogue with the other seniorlevel executives, notably those with a high degree of decision-making ability, about CSR issues.
Although this article is appropriately targeted towards individuals who develop CSR programs,
the publication’s existence speaks to the embrace among corporations to take CSR programs and
initiatives seriously. In addition, the walls that once guarded CEOs and other top executives from
the general employee population are coming down as a result of corporate scandals and ethics
violations. Therefore, corporate leaders those have begun to understand the necessity of
communication, with both their internal and external audiences.
Moreover, this piece accentuates the continuing conversation on CSR initiatives.
However, the article barely mentions the benefits of participating in the Global Compact.
Specifically, the Global Compact is only mentioned once when the author identifies the various
organizations that are leading the charge in the CSR arena, including The Conference Board and
The Business Roundtable. One of the reasons for this might be because the intent of the article is
to not necessarily convey to readers that the need to convince the CEOs of their organizations to
buy into the Global Compact, but rather start down that path by merely having an open dialogue
about CSR with their organizational leadership.
Attempts were made to search, through the use of the Internet, and by contacting the
executive that was interviewed from Ruder Finn to request any additional documents. These
internet searches for agency-produced search were unsuccessful in obtaining external materials
that would speak to Ruder Finn’s ongoing involvement in the Global Compact. The difficulty in
obtaining additional documentation that spoke to Ruder Finn’s involvement in the Global
Compact suggests a larger problem. First, it exhibits neglect on the part of agency leaders to
ensure that its voluntary obligations are being met by providing data that is only required on an
annual basis. Second, it brings up the issue transparency and how many American-based
corporations continue to see full disclosure of financial or other corporate information as
insignificant. Finally, the inability to locate pertinent documents from these agencies reinforces
the negative perception of the public relations practice, while making it all the more difficult to
encourage change.
INDEPENDENT Sources: Criticisms of Public Relations and the Global Compact
As addressed in the literature review, generally views on the Global Compact and many
of its participants are mixed. For example, there are factions that support the organization and
what it is attempting to do because they, as suggested by Soederberg (2007) “believe that
voluntary measures are more effective and viable in achieving socially accountable behavior than
regulatory means” (p. 502). In contrast, others emphasize the initiative’s shortcomings and call
for further enforcement among participants if the organization is to be truly committed to
addressing social issues. For instance, in a critical assessment of the Global Compact,
Soederberg (2007) indicates that too much of the analysis that has examined the Global Compact
thus far and praised it for its initiatives, has spent an overwhelming amount of time on its
problem-solving potential, and fails to analyze the partnership thorough a critical approach,
“which would seek to explain social change by making sense of the underlying contradictions and
struggles associated with the UN strategy of corporate citizenship” (p. 503).
Therefore, this section extends the discussion of these concerns to examine and
understand: (a) the criticisms aimed at the Global Compact in general and (b) the critics who
specifically examine the participation of public relations agencies in the Global Compact. By
engaging in this discussion, it will provide an understanding as to why the Global Compact
continues to be criticized by NGOs and activist groups. Currently, the overarching criticism is
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Leslie Simone Byrd
that the Global Compact is nothing more than a comprehensive public relations campaign for
participants and lacks any significant ability to influence change in business practices among
corporations. Reinforcing this idea, Furchtgott-Roth (2007) explained in a New York Sun article
that “the vast majority of American companies do not participate. For the corporations that
participate, the benefit is supposedly public relations, particularly for corporations with spotty
records on labor and the environment”.
Another resource that focuses on critiquing the Global Compact, is the Global Compact
Critics weblog, which is an extensive site which includes a wealth of information that is updated
regularly (primarily on a daily basis) and is critical of every facet of the Global Compact
organization. The site is managed through the Netherlands-based, Center for Research on
Multinational Corporations (SOMO) and is described as:
An informal network of organizations and people with concerns about the UN Global
Compact. On this blog we gather and share information about the Global Compact,
partnerships between the United Nations and companies, and corporate accountability. It
is not a database, but rather a collection of opinions, news items and background
information (Global Compact Critics, 2008).
In early 2008, this weblog reported and provided a link to a press release on the Global
Compact’s website which indicated that the organization moved to permanently removed nearly
400 corporate participants who had not provided a COP report in more than a year. This move
comes shortly after “the initiative’s multi-stakeholder Board meeting in November 2007” (United
Nations Global Compact News & Events, 2008). Also in regard to the controversy surrounding
the COP reports, the weblog contained a Financial Times article from mid-January in which
Mackintosh (2008) reported that investors of some European companies have protested the lack
of oversight in submitting timely COP reports, and accuse nearly 80 companies of “breaching
pledges to a United Nations agreement on society and the environment by failing to publish
progress reports”. The mixed results of these agencies involvement in the Global Compact
suggests that the public relations field has quite a distance to go in changing the perception of the
practice. Those on the academic side of public relations understand that the practice is not truly
about spin or manipulation, even though these are the roots that have defined it.
Discussion/Conclusion
Overall, the findings revealed that among the two agencies, Ketchum is currently
pursuing a more holistic approach to integrating the Compact Principles into their practice. Not
only did they report that they are actively advising clients on the benefits of involvement in the
Global Compact, but the agency executives who were most invested in this pursuit, frequently
sought additional ways opportunities outside the agency to strengthen its commitment.
In the analysis of problem recognition, neither agency executive indicated that a
significant event, such as a crisis, led either agency dominant coalition to participate in the Global
Compact. Instead, Ketchum’s executive suggested that his agency wanted to reaffirm and
strengthen its commitment to address the issues that the Global Compact promotes. To fulfill this
goal, the agency had begun to explore internal avenues for emphasizing the importance of the
Global Compact to employees to reiterate that they must practice what they preach. In contrast,
the Ruder Finn’s executive noted that his agency’s participation in the Global Compact stemmed
from a pre-existing, interpersonal relationship between the agency’s chairman and the formerSecretary General of the United Nations. And based on the minimal information obtained through
72
the interview data and document analysis, it seemed that there was very little support for the
Global Compact within this particular agency among leaders and employees. This void in
documentation that could have spoken to this agency’s overall role and specific level of
involvement in the Global Compact was alarming, especially when the personal connection of
this agency to the Global Compact and its founder is considered. Furthermore, this lack of
information raises concerns about the level of commitment, not to mention credibility, this
agency has for using their skills and abilities to adequately address the themes that the Global
Compact supports.
In terms of constraint recognition, both agency executives noted that there were no major
internal obstacles that hindered their plans to join the Global Compact. However, the agency
executive from Ketchum did point out that legal counsel required a review of the Global Compact
materials before they could officially endorse and participate in the initiative. If there were
additional constraints that might have presented a problem for either agency to participate in the
Global Compact, they were minimal and not addressed by the agency executives during the
interview sessions. Part of Grunig’s situational theory assumes that the absence of or few
constraints which can hinder the ability to become involved in addressing a problem or
opportunity would result in a higher degree of involvement. While there was some support for
this, the findings were not unanimous. For example, both agency executives agreed that there
were very few internal obstacles when participation in the Global Compact was sought.
However, the findings also revealed that the lack of numerous obstacles does not automatically
translate to extensive involvement.
This minimal integration of the Compact Principles into these agencies practice of public
relations, at this point is inadequate. Not only was there no information available for this research
that could confirm and reveal how the Compact Principles were used in client sessions, it calls
into question the true motivation for these agency’s involvement in the Global Compact. The
question also remains if these agencies joined the Global Compact precisely because they saw
their participation as less risky because they do not manufacture consumer products, and are thus,
less liable than other corporate and/or business participants. In addition, this research reinforced
the need for public relations professionals to aggressively advocate for greater transparent
measures to be developed and enforced within their organizations. It would also be fruitful for
professionals to be introspective of how they handle their daily tasks and projects to reflect on
how they might modify their own behavior. Overall, the involvement in international CSR
programs and activities are commendable, but this participation is futile if professionals are not
doing as they advise their clients to do. In fact, participation in CSR, without these changes to the
public relations practice, are nothing more than a ‘spin’ job and does a disservice to those actively
involved in wanting to change the practice of public relations for the better.
On a broader level, future research initiatives in this area should continue to explore the
relationship between the contemporary public relations profession and CSR programs—
especially in the United States. The obstacles that confronted this research process in its early
stages should be viewed as opportunities to widen the call for greater collaboration. Public
relations professionals and academicians who study the public relations discipline must begin to
bridge the gap if change is to be made possible. As it relates to public relations research, there
are a variety of channels that are available for the application of alternative perspectives.
Moreover, future research can embrace the idea that public relations professionals can
begin to use their talents and expertise to be more influential, especially to address social issues.
A viable CSR effort can act as a catalyst to extend symmetrical research because it has the ability
to relegate the role of the organization as ‘part’ of the community in which it operates, as opposed
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to being considered ‘the’ entity that the community is centered around. This would facilitate
greater two-way communication between the organization and its publics. Therefore, not only
should future research continue to add to the general body of knowledge, but it should also
provide useful prescriptions to professionals who are engaged in the daily practice of public
relations.
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76
Strategic Role of Corporate Communication
for Health Care Provider
Maria De Luca
University of Studies of Insubria, Italy
[email protected]
Health care providers seem to have introduced, at large, corporate communication activity within their
organizations, but this function is often perceived and managed as an operative rather than a strategic
tool. This approach seems to be inappropriate under a theoretical point of view, nor effective under a
practical one.
This paper aims at analyzing the strategic correlation between the systemic nature of organizations,
relational approaches development, communication needs evolution, corporate communication function
introduction and management by service providers and, in particular, by those providing “credence
goods”. The analysis has been made on a peculiar kind of “credence goods” providers: health care ones.
The nature of the service they provide and the role of internal and external stakeholders they are influenced
by, make their systemic nature evident, and their relational capability strategic.
Health care providers seem to have introduced, at large, corporate communication
activity within their organizations. They begin to manage communication towards patients and
have a press office, or a public relations bureau 1, but what kind of approach do they adopt? Do
they recognize the strategic relevance of corporate communication, and do they manage it as a
strategic activity, or rather as an operative function, useful to facilitate problem solving?
The analysis of the evolving context, in which health care providers perform their
activity, may help us to answer these questions.
A Context Analysis
Health care services in Europe 2, in the past, have often been provided by private and
public entities. They are product oriented, and busy in offering the better disease treatment 3
without being worried of the cost level achieved in their institutional activity. While private
entities were influenced, in their entrepreneurial decisions, by the necessity to respect economic
and financial equilibrium constrain, public ones were not worried about this topic, because local
1
For example, in Italy, a law concerning the duty, for public entities, to have an office directed to manage
relationships with clients/consumers has been established through D.Lgs n. 29 in 1993 and, with separate
acts (Law n. 150/2000, DPR n. 422/2001 and D.P.C.M. on 07.02.2002), Italian government has given
instructions about the duties and organization form of these offices. So their establishment and operational
activity is interested , in Italy, by a recent evolution.
2
The European welfare states are still different from the USA one, characterized by high degree of tax
financing, public ownership of production of resources and political responsibility for welfare, whereas the
US system, in spite of efforts to introduce managed care, is more fragmented (Normann, Adrvisson, 2006,
p.1)
3
Considered as the better treatment possible inside each organization, because the absence of competitive
pressures has mitigated the necessity of comparison with competitors and also external impulses towards
higher service quality standards.
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Maria de Luca
governments provide themselves the economic and financial resources they need. Nowadays, in a
context characterized by limited public financial resources and by limitations to public expenses,
and also to those directed to health care sector, health care organizations are all forced to
consider their institutional activity exercised under economic and financial constrains, in order to
research higher efficiency and efficacy of the services produced and delivered and to manage
strategically distinctive resources and capabilities, as well as, environmental opportunities and
threats (Grant, 1998).
There is a general trend in business: to look at customers as resources of value creation
and not only as passive receivers or consumers. Can this concept be applied successfully to the
health care sector? The word chosen to define the receiver of health care services is not merely a
semantic question, but a conceptual and strategic one: it implies very different perspectives of an
individual’s relationship to care. A distinction may be made between the terms patient and
customer. Considering the individual as a customer, and not as a mere patient, implies:
- recognizing that the relationship between the individual and the health care provider
is not limited to the treatment of an acute illness state, but continues after and beyond
the actual care episode, through the activities of prevention, wealth promotion,
diagnosis, care, follow-up and long term assistance;
- assuming a more humanistic perspective of individuals, rather than a diagnosisrelated one;
- focusing on health and wellness, rather than on disease;
- considering the individual not as a powerless receiver of treatments, but as a value
co-producer, interacting with health care providers in defining, producing and
delivering health care services. According to this perspective, he may not be
considered a consumer, but a pro-sumer (Toffler, 1980 in Normann, 2002 – p.110),
because he not only receives something, but takes part to service-producing activity.
Both information diffusion and Information and Communication Technologies (ICT)
development contribute to an increase in individual knowledge on health. 4 The diversity of
demands on caregivers act as development catalysts. The emerging trend is that of a customer
driven health care demand, and competition between health care providers is based on their
capability to satisfy this emerging differentiate demand; mass market strategies in the health care
sector are no more successful, unless for minor, not complex, repetitive services (for example,
check-ups, physicals reservation, examinations outcomes delivery, archives management), which
might be made more efficient through ICT tools introduction.
Towards Post-Modern Approach to Health Care Providers
Management and Communication
The traditional ontology of management sciences is based on Newton’s discoveries and
his description of the world in a set of laws of nature, which give the key to man not being
controlled by, but influencing and dominating the world. When Newton’s theories are translated
into managerial practices, management sees its role as reducing conflict, creating order,
controlling chaos and simplifying all the complexities created by the environment. According to
this, the traditional approach to strategic management is based on a set of goals and objectives.
Possible outcomes are predicted and alternatives for action are planned. Adopting a planned
approach to strategic management implies considering strategy as a plan (Graetz et al., 2002; p.
4
Individuals have an extremely high “health creating potential”, especially concerning prevention,
diagnosis, assistance and health problems deriving from personal lifestyle.
78
51), to provide a framework for decision making, to control and manage environmental
influences, to make results tangible, controlling processes, achieving competitive advantage
(Sanders, 1998), providing security around uncertainties, adopting fixed patterns and plans with
limited flexibility. The strategic process is usually described as well defined steps or stages, that
follow one another: research, planning, implementation and evaluation (Cutlip et al., 1994;
Kendall, 1992; Oliver 2001; Smith, 2002).
The European welfare states, and most European health care providers, are modelled on
this traditional framework. Even the introduction of managerial tools in public entities has not
changed this approach, based on standardizing, cost reduction, mass production and the so-called
industrialism 5. Identical treatment of everyone continues to be a word of honour, often protected
by confused reasoning about democracy. Customers continue to be seen as passive receivers, as
patients who are supposed to be satisfied with the services they receive (Normann, Ardvisson,
2006). Mass communication approach, from the organization to the environment, is typical of this
evolutionary stage.
Successive recognition of clients as single entities, and not only as an undiversified
market and shift, from production to relation with clients and from transaction to relationship
development, was at the basis of the service approach (Eigler, Langeard, 1987) and of a new
strategic paradigm: the customer based management (Normann, 2002, p. 25). According to this
approach, customers are vital sources of information for the organization. They are to be gathered
and managed, and the productive process became more strategic than product/service itself.
Moreover, productive process effectiveness was based on the consonance between customers’
claims and the organizations’ activity output and depends on the capability to refocus the whole
organization activity around customer satisfaction goal. The critical role performed by employees
and by internal communication development emerges, together with an increasing necessity to
manage an organizational change consonant with customer claims.
Corporate communication among health care providers appears very much in line with
the aforementioned general strategic management views of structured planning and decision
making, adopting a top-down, technical and tactical approach, whose emphasis is on the planning
process of campaigns and communication plans. Some authors call this process “communication
management planning” (Steyn and Puth, 2000; Gruning and Repper, 1992; White and Dozier,
1992) and distinguish it from “corporate communication strategy”. Steyn (2002) refers to this
difference when he explains that “where strategic thinking determines the strategy (i.e. what the
organization should be doing), strategic, long term and operational planning helps to choose how
to get there, by programming the strategies, making them operational”. Strategy is the outcome of
strategic thinking. It has an external, long term focus, and is proactive and not adaptive. The
emerging of a more self-conscious and critical consumer, and of his increasing capability to
establish relationships and communicate his needs, and eventual dissatisfaction for the service
received, force health care providers, and public entities, to integrate their corporate
communication function. They create an office, a structure, and a team to manage these bottomup communications, but the approach is still adaptive and operative: they act as facilitators and
problem solvers. At the same time, even internal communication, at first, follows a top/down
approach, seen as relations facilitator or problem solver inside the organization and, only in some
cases, as a value driver for improving the rapidity or effectiveness of organizational change
focused on customer satisfaction goal.
Traditional approach to health care providers management and corporate communication
appears to be inappropriate:
5
It is the result of the “Production-line Approach to Service” theorized by Levitt in 1972.
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Maria de Luca
-
environmental complexity cannot be manipulated nor governed;
facing environmental changes, only through an adaptive approach, makes
organizations unable to anticipate and influence consumers needs and demand
evolution;
- thinking of organizations as “isolatable real entities or attributes which can be
systematically described and explained and therefore, meaningfully compared”
(Chia, 1995, p. 583) implies not considering their actual complexity, in terms of
intricate patterns and networks of interactions and relationships;
- managerial and communication top-down approaches have a limited capability to be
effective in this complex context and
- thinking of corporate communication as a mere operative activity, or as a conflicting
relationships facilitator, is reductive, misunderstanding its strategic potential, and not
effective, bringing organizations to suffer relationships rather than to manage and
develop them in a profitable way.
The so-called post-modernism arises as a response to the failure or natural consequence
of the shortcomings of traditional scientific approach to strategic management theory (Chia,
1995; Cova, 1996; Jackson and Carter, 1992) and customer based management. It is described by
Cova as the integration of new models into a generic perspective on life and human condition
(1996, p. 15), which arises from a more organic world view of science, management and basic
thinking methodologies. This accentuates the importance of interaction, relationships and selfregulation. Productive and relational competence, in a customer based perspective, are no more
sufficient, the new strategic paradigm is based on the recognition of the active role of customers,
as value co-producers, and on strategic capability of organizations of managing complex
relational systems, co-producing value for customers (Normann, 2002, p.27); a reticular
organization structure emerges 6.
The corporate communication process of strategic thinking evolves with “senior
communicators and top managers taking strategic decisions with regard to the identification and
management of, and communication with, strategic stakeholders” (Steyn, 2002, p. 126). Strategic
corporate communication is based on the identification of the strategic stakeholders and publics
of the organization through environmental analysis (Ferguson, 1999; Grunig and Repper, 1992;
Grunig et al., 2002; Steyn and Puth, 2000), both external and internal (Ferguson, 1999), followed
by definition of problems, which could have an impact on the organization or the stakeholders.
This would lead to the setting of communication strategies, goals and objectives of the
organization, out of which communication plans are developed.
This view of strategic corporate communication coincides with the strategic management
perspective of the organization as a network of relationships (Harrison, 2003; Steyn and Puth,
2000), which considers its strategic interest and will change its behaviour, in order to cooperate
with critical stakeholders in co-producing value for the whole system.
But are health care providers the result of a network of relationships? And is their
relational capability strategically crucial?
6
For more details about the concept and model of reticular organizations and their communication needs,
cfr Invernizzi et al., 2000, p.147ss)
80
Health Care Providers as Systemic Organizations
Organizations are complex systems, in which the interaction, between the components of
the system and between the system and the environment, are so intricate that it is impossible to
completely understand the system by simple studying the components (Cilliers, 1998).
Relationships and interactions of complex systems shift, change and transform. All the
subsystems of a complex system interact and form relationships, creating information and
knowledge through these interactions. According to Cilliers, a system will develop a selforganizing process, as a result of complex interactions between the environment, the current state
of the system and the history of the system itself (Cilliers 1998, 89). Self-organization is a
“property of complex systems which enables them to develop or change internal structure
spontaneously and adaptively, in order to cope with or manipulate, their environment” (Cilliers,
1998; 90).
The use of the term system, as referred to economic entities and applied to business
management, is not a recent discovery. It was adopted, for example, by those scientists who
developed the tailored organization of work and the concept of the men-machine system or by
those theorists studying the reciprocity of relationships between the individuals inside an
organization. Its application to productive and decisional units of the firms is relatively recent
(Panati, Golinelli; 1994). In this field, the system is referred to as “a set of interacting elements”
(Von Bertalanffy, 1971). So, for being a system, an organization must be:
- composed by a certain number of material and intangible elements, constituting the
structure of the system (i.e. technical factors: knowledge, capital, human resources,
work,...);
- those elements must interact and communicate, between themselves and with the
environment;
- each interaction must be functional to the achievement of goals, defined by an
internal or external decision centre (Panati, Golinelli, 1994).
The definition of system, applied to business management studies, extends those applied
to organizations. Although each economic organization is an open system, there are systems
which could not be considered economic organizations, because of the absence of an autonomous
decision making centre towards which the organizational activity is directed.
However, there is another relevant difference between economic organizations and
organizations. Systems can be open or closed, depending on the degree of interaction they have
with the environment:
- if interaction is negative or equal to zero, the elements composing the system will
interact only between themselves, and the system will be considered closed;
- if interaction is positive, and the elements composing the system bargain material
goods and intangibles with the environment, the system will be considered open.
According to the definition, economic organizations are always open systems, and their bonds are
established according to the way in which the lifecycle “inputs-transformation-outputs” is
influenced by positive interaction between the firm itself and its environment. According to this
approach, they overcome the traditional meaning of organization, becoming more like a
biological organism, part of a vast system and composed of interacting sub-systems. Relational
implications of this approach are obvious. If economic organizations are open systems, their
survival capability depends on their attitude to manage relationships with internal sub-systems
and external systems (Golinelli, 2000; Cafferata, 1995). Moreover, economic organizations
cannot be considered a result of isolated cause-effect events, as it was in a deterministic
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traditional perspective, but as the result of multiple interrelations in a complex context, in a more
holistic and modern perception.
Economic organizations, operating in complex contexts, have a relevant relational and
social dimension. They influence, and are influenced by, the environment and their capability to
develop and maintain long-term repeated interactions with internal and external stakeholders.
This represents a survival condition and strategic opportunity for achieving competitive
advantage and making inter-systemic equilibrium evolve dynamically by improving the entity
and the quality of these interactions (Gatti, 2000; Cafferata, 1995).
Building relationships between organizations and publics are becoming crucial functions
for achieving competitive advantage in a complex context. Bonds between the organization and
the publics should be eliminated so that publics become part of the organization and the creation
of meaning (Sherman, Shultz, 1998, p. 169).
Modern organizations must rethink their traditional organizational approach for a new
one. It demands efficient production, as it was in the industrial era, plus a high ability to handle
relations and organize value creation according to the following criteria (Normann, Ardvisson,
2006, p.18):
- being focused on the customer and the customer value-creation process instead of a
certain type of product/service or technology;
- managing competition among value creating systems, and not single entities;
- mobilizing and combining partners activity in order to form an offering which fits
customers’ needs and value creating processes;
- considering customers under an enabling, rather than a relieving point of view, not as
passive receivers, but as active value co-producers able to contribute to the value
creation process
The same shift is present in corporate communication, where publics want to be active
participants in the creation of meaning -two-way symmetrical model- in contrast with merely
being told and persuaded by the organization -asymmetric models (Grunig, 1992; Spicer, 1997).
Stakeholders and publics want to participate fully in strategy creation, and not only be recipients
of well formulated messages from the top-down.
Health care providers, being economic organizations, are complex open systems
characterized by a social and relational dimension, stronger than each other, in spite of their
peculiar activity.
Health Care Providers as Service Enterprises
Health care providers are service enterprises affected by all the characteristics typical of
services: processes 7, often defined as intangibles 8, changeable, perishable, characterized by
absence of property and substantial coincidence of production, delivery, consume and quality
evaluation (Darby and Karni, 1973) 9. The following analysis tries to provide evidence of
stakeholders’ capability to influence service production and quality appraisal.
Health care services are produced through a two level organizational framework,
characterized by a different degree of visibility among the stakeholders (Gronroos, 2002):
7
Activities or series of activities, according to Gronroos, 2002, p. 59.
Even if this characteristic sometimes does not distinguish services from goods: cfr. Zeithaml, Bitner,
(2000) and Lovelock (1991).
9
For more details on services definition and classification cfr Gronroos (1994); Gronroos (2002), pp. 5764 and Lovelock (1983), pp.9-20.
8
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a back office level, composed of technology and technicians, pharmaceuticals,
archives management and maintenance, cleaning services, laundry
- a front office level, characterized by the presence of an operating structure (doctors,
nurses, emergency department...), whose activity and utility is directly perceived by
customers
Both levels influence the effective and perceived total quality of the health care service,
affecting the technical value of the care received (front-office) as well as the peripherals related to
service production-delivery process (back-office). Moreover, goods consume is a “result
consume”, in which production and consume moments are distinct and separate, while service
consume is a “process consume”, in which production and consume moments take place
simultaneously and producer/consumer interaction is critical (Gronroos, 2002, p 65) for service
quality appraisal 10. According to this framework, not only are doctors and nurses fundamental in
determining the quality of the service produced and delivered; all those employees and partners,
who take part to the production-delivery process, at different levels, directly and indirectly are
crucial. All these partners represent fundamental “internal” stakeholders for health care providers,
because the quality of interactions between the sub-systems present inside the organization and
the “external” stakeholders (the customer is the fundamental referee, but not the only one), affects
the quality of the service produced and perceived.
This framework of analysis suggests that the theoretical model, describing marketing, or
rather communication interactions, within service providers, must be reviewed in a critical
perspective. Traditional model (Gronroos, 2002, p.69) based on Enternal, Internal and Interactive
marketing 11 has the merit to appreciate the strategic role of employees and internal
communication and to consider clients as value co-producers, interacting with providers’
employees, confirming the necessity of achieving consonance between these two actors claims
and acts, but presents also some limits:
- it considers only two explicit categories of stakeholders, influencing the effectiveness
of producing and delivering a service;
- it considers the organizational model as a traditional closed model, with definite
bonds and a clear separation between internal and external, employees and other
cooperative partners, service providers and their clients;
- do not consider the influence the provider has on the environment, and the influence
the environment itself exercises on the organization, its clients and its employees.
As described in paragraph 3, each economic organization is a dynamic open system,
whose interactive capability with all external and internal systems and sub-systems is crucial in
determining survival and competitive advantage. Service providers do not deviate from this
framework. Indeed, the main characteristics of their business activity make their relational
capability and stakeholders interaction much more critical and strategic. Stakeholder interactions
become much more fundamental for health care providers, because of the peculiar nature of their
business, and traditional distinction between internal, external communication and public
relations activity loses meaning in the actual complex context (Invernizzi, 2000).
10
Service quality appraisal is based on process appraisal which is evaluated by customers under technical
and functional point of view and if technical quality depends on technical capability, instruments,
innovations and may be appraised on objective enough based, functional quality is a more subjective
dimension. Cfr Gronroos, 2002, pp. 78-80 and 90.
11
Respectively “making promises” to clients, “building legitimacy” of the promises made to clients, by
improving communication towards employees, and “maintaining promises”, by exploiting interaction
between employees and clients.
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Health care services are complex in the eyes of customers, not only because of the
complexity of the object of care or of the productive and delivery process, but also because of the
information asymmetry between the customer himself and health care providers. This situation
makes core services difficult for customers to evaluate on parameters of clinical efficacy. So they
focus on the quality of peripherals characteristics of the care process (doctors’ and nurses’
empathic capability, cleaning of the structure, quality of food or of interactions with physicians
and administrative employees, etc). These elements, in the customers mind, compose quality
evaluation which is extended or reduced by the influence of health care provider corporate image,
which affects both customers expectations and perception of the service received, and both levels
are fundamental in the eyes of customers, because customer satisfaction is the result of their
comparison 12. At the same time, expected quality is influenced by corporate activity through
communication realized by service providers, corporate image and reputation policies, public
relations activities, the value proposition offered, as well as independent elements such as word of
mouth 13.
According to this framework, health care providers are driven towards competitive
strategies based on “what is observed” (Olmsted, Teisberg et al., 1994). This approach alone
might not be successful if short term oriented and if not supported by a strong commitment in
reducing information asymmetries and strengthening cooperative relationships, not only towards
customers but also those operators who act as intermediates between customers and health care
providers.
In the health care system, patients do no act as common customers in a market
mechanism:
- they are influenced by a “gate keeping” mechanism, because they do not chose
autonomously the health care provider, but are supported in this choice by doctors,
often suffering of a minor, but however present, information asymmetry towards the
provider and the clinic application,
- and by a “third party system of payment 14” (Kotler, Clarke, 1987).
Other strategic stakeholders emerge in influencing the relationships between health care
providers and final consumers, confirming the necessity to adopt a more pervasive systemic
approach to management and corporate communication strategies to be successful. But one more
element makes corporate communication strategic for health care providers: they are “credence
goods” providers.
12
For more details on service quality appraisal models, cfr. Gronroos, 2002, pp.75-116.
Whose impact on communication cycle is determinant for service providers. Cfr Gronroos, 2002, pp.322324.
14
Unless out-of the pocket services, private or social insurance based contribution, or tax based financing,
provide to insurance operators or governmental institutions financial resources to pay for customers and,
often, identify allowed providers and structures to be claimed, reducing, at the same time, price sensibility
and choice freedom for the customer and allowing, sometimes, the adoption of an adverse selection
behaviour, more present in tax based financing health care systems. Paying on the bases of personal income
and not of the effective amount of health care services received, the customer seems to be stimulated to
consume more health care services than his effective needs, regardless to the economic behaviour of the
consumer, which do not represent ad economic entry barrier, unless for “fee for services” (ticket,
deductibles, co-payments, balance billing,...), whose reduced amount may not provide appreciable effects
on reducing demand.
13
84
Health Care Providers as Credence Goods Providers
According to Nelson (1970, 1974) goods may be defined as “search goods.” This is
characterized by the buyers ability to find the best quality specimen by simple inspection. It
depends on goods characteristics and it is equal for all consumers, as opposite to “experience
goods”, for which the buyer obtains quality information only through the use of goods after
purchase.” It depends not only on the technical quality of the goods themselves, but also on the
quality of the productive and delivery process, and of the interaction between consumers and the
organizations producing these goods. Health care services are experience goods, whose quality
evaluation is a complex process, described in paragraph 4, with a relevant subjective and
relational component.
If the real quality of experience goods may be appreciated only after consume practice,
the buyer’s decision making is dominated by concerns about credence characteristics. Darby and
Karni (1973, p.68) talk of credence qualities as “those which, although worthwhile, cannot be
evaluated in normal use because are expensive to judge even after purchase.” They began to use
the term “credence goods” to define goods “laden with credence qualities”, such as hidden
qualities of production process, large set of minimum standards of quality and a “brand” having
relevant probabilistic characteristics (Andersen, 1994).
Credence goods are characterized by asymmetry between the buyer and the seller, with
respect to knowledge acquisition. This approach emphasises the seller’s responsibility for
possible quality defects, as well as, the need for the buyer to combine the quality claims of the
seller with information about the credibility of these claims, which depends on the seller ‘s
credentials, reputation, image, honesty, competence determinedness with respect to the quality of
supply (Andersen, 1994).
According to this framework, credence goods characteristics are not given, but evolve, as
the result of an evolutionary process, originated by the interaction between sellers and buyers;
furthermore, the buyers process of quality detection is to a large extent collective and not
individual and the credentials of the sellers depend on their ability to survive and prosper in an
evolutionary process in which, not only consumers, but also third parties, play a fundamental role.
Health care services are credence goods, affected by all the described characteristics and
health care providers systemic and relational nature emerges again, as the key for understanding
their complex nature.
Strategic Role of Relational Approaches Development
The adoption of a systemic approach to the study of economic organizations provides a
new point of view for analyzing competition dynamics. 15 Nowadays, competition may not be
appreciated regarding single organizations forcing other single organizations inside a sector,
because each organization is a system, part of a greater system, and each system tries to achieve
dynamic equilibrium through interrelations with systems and sub-systems composing its internal
and external environment, as a survival first than as a competitive advantage value driver. So,
critical competence in systemic context is not the mere value creation goal, but is the competence
to organize value creation inside co-productive systems (Normann, 2002) because:
- competition evolves from a micro level (single organizations as antagonists) to a
macro level (co-productive systems as antagonists) and
15
For more details on competition dynamics, redefining health care sector Cfr Porter, Olmsted Teisberg,
2006.
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-
cumulated value creation capability of a co-productive system is higher than the sum
of value creation capability of each system composing the constellation stand alone.
According to this framework, Normann and Ramirez (1993, pp. 49-59) distinguish
between linear value chains, characteristics of the industrial economy, and constellations of
value-adding services, that are increasingly central to the post-industrial economy, because
implicit in the idea of a linear value chain there is the assumption that producers produce (goods
or services) and customers consume, with precise and separate roles. But, as seen in the analysis
made in former paragraphs, these roles are no longer separate, and this distinction becomes less
evident in an economic context customer oriented (Normann 1992; Eigler, Langeard, 1987). New
relationship models bring to crises traditional concepts of value chain and competitors (Porter,
1986). Integrated value chains and partnerships management hypothesis emerge (Normann,
Ramirez, 1993 and 1994; Moore, 1996; Davis and Mayer, 1998; Ramirez and Wallin, 2000).
Producers and customers strongly interact among themselves and with third parties in producing
and delivering goods and services. The relevance of this complex interaction process becomes
more and more evident for each economic organization because of its systemic nature.
Traditional Michael Porter models of market segmentation and positioning are starting
points for strategic approaches to organizational management. The linear, closed, value chain
model and even his hypothesis of major integration between IPU (Integrated Practice Unit) value
chains inside health care organizations (Porter, Olmsted Teisberg, 2006 pp. 203-208) have the
merit to introduce concrete guidelines for health care providers improving efficiency and
efficacy. Yet it continues to consider them as single competing organizations inside the
environment and not systemic relational organizations. These models may be successfully
adapted to the new competitive context. For example, if we suppose that each system or subsystem has its own traditional value chain and that interacting each other, systems may contribute
to add value to single parts of the major value chain of the co-productive system, so as that the
value created is higher than the mere sum of value of single systems, according to Normann and
Ramirez model of value constellations 16, the value chains integration model appears suitable to be
applied to this complex environment.
Service providers and credence goods providers, seem to be affected by stronger
relevance of the described interaction mechanism, because services, production, delivery process,
and the social dimension of credential attributes critical for credence goods appraisal, make their
interdependence from external and internal stakeholders crucial. The necessity to improve
interaction mechanism is fundamental, because value creation capability depends on it.
According to this approach corporate communication is strategic for service providers,
credence goods providers, and for health care ones, because:
- the sellers public relation and internal communication activities acquire higher
relevance because they are fundamental for reputation management, which becomes
a key evaluation element for customers choosing credence goods.
- credence goods customers are generally loyal and constant customers because
transaction costs in acquiring information on alternative suppliers are very high and
they may not evaluate the quality of their offer by simple inspection. Customers tend
to buy credence goods from their usual sellers and to develop an idiosyncratic
relationship with them.
- communication plays a fundamental role in developing and maintaining long-term
profitable relations between sellers and buyers, as the key for promoting loyalty,
16
For more details cfr Normann, 2002.
86
-
fidelity and stronger positive expectations, resulting from cumulated communication
processes which may positively influence sellers reputation
Customers are very sensible to malfunction, mistakes, lack of transparency and
information from the seller (Gronroos, 2002), and communication plays, again, a
critical role in managing these problems.
Overcoming Traditional Approach to Corporate Communication in a
Strategic Perspective
Organizational evolution influences communication needs which affect corporate
communication approaches adopted inside the organizations.
Environmental evolution guides theoretic evolution of organizational theories:
- from “scientific organization” of labour and taylored organizations, supported by
Weber bureaucratic theory,
- to the necessity to “enhance human factor” inside the organization;
- from “contingency governing”, in an adaptive approach,
- to a “proactive approach”, both internal and external, and, then,
- to “reticular organizations management” theories 17.
At the same time, corporate communication evolution follows emerging communication
needs:
- to give instructions and control (classic top-down approach);
- to motivate individuals to cooperate, for achieving organizational goals;
- to gather information from external environment, for supporting decision making;
- to create organizational legitimacy and distinctive identity, both internal and external;
- to create and improve relational interactions inside a systemic organization 18.
The analysis made on health care providers reveals that these credence goods providers
are adopting organizational frameworks belonging to one of the first four described models and
by consequence, their communication needs seem to evolve from the aim to facilitate contingency
governing and problem solving, to the necessity of providing support to organizational change.
This is influenced by the desire to improve service production and delivery process efficacy by
investing in human resources and not only on technology and sophisticated medical instruments,
to the achievement of organizational legitimacy and positive reputation, in the eyes of more critic
and informed customers and environment.
Anyway, they still undervalue some fundamental elements:
- social dimension of systemic organizations and, in particular, of service providers;
- social dimension of credence goods demand;
- critical role played by communication in influencing organizational reputation and
credibility, crucial for credence goods appraisal, but also for quality evaluation of
services and expectations formation among customers;
- critical role played by communication in improving value creation capability inside
value constellations.
The main mistake is to consider each economic actor as distinct and separate from each
other, operating in a classical market competition framework, a vision which does not reflect
actual context.
17
18
Cfr Invernizzi, 2000, pp. 56-165.
Cfr supra, note n. 16.
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The same mistake is reflected by corporate communication practices, developed on the
basis of an organizational approach which appear no more effective because they seem to be
affected by some limits:
- usual distinction between organizations publics (internal, and external) is no longer
clear;
- as a consequence, the effectiveness of traditional distinction and claim for higher
specialization of communication in three distinct fields (internal, external and
marketing communication), often managed by separate functions inside the
organization, seems to be overcome by the necessity to improve their capability to
influence positively each other, enriching their activities directed to intersected and
interacting publics (Invernizzi, 2000);
- economic actors interactions, within this framework are repeated and self influencing
and their cumulated result affects value creation and delivery process at different
levels;
- relational and social component of health care service represents, its fundamental
value driver. Communication plays a critical role in sustaining stakeholders value
chains integration for improving value added creation for the whole value
constellation and the health care system.
Conclusions
The analysis confirms the existence and the necessity of an incoming strategic
evolution of traditional organizational and communication paradigms in systemic open
organizations. In particular, in service/credence goods providers. Health care providers
are emblematic, because the nature of the service they produce and deliver emphasizes
strategic importance of relational and communicational management for these actors.
The adoption of a strategic approach to corporate communication must not be considered
as the necessary consequence of a legal or of a market driven duty, but as an opportunity:
- for filling the distance between traditional theories and reality which supports the
necessity of strategic organizational and communication paradigm change (Kuhn,
1962) and, moreover,
- for improving health care value constellations capability to create value for customers
and, at the same time, for all the components of the system, under an economic, but
also a social perspective.
The new challenge is the development of strategic and operative processes, directed to
creation, bargain and sharing of informative and value-driven messages inside relational networks
composed by multiple stakeholders (both internal and external, actual and potential), and of a
corporate communication activity able to manage and develop these relations (Invernizzi, 2000;
p.195), supporting all the strategies, policies and goals of health care providers.
Organizations remaining fixed on their old frameworks when the environment changes,
may lose their identity. In redesigning organizational and communication frameworks, they
maintain and strengthen that identity, achieving competitive advantage and performance
opportunities.
88
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Issues Management: An Exploratory Study of its Perceived
Value for Chief Corporate Communication Managers in the
Strategic Positioning of their South African Companies
Gideon de Wet
Department of Communications
University of Johannesburg, South Africa
[email protected]
Since the advent of democracy in South Africa in 1994 the public sphere has been flooded by public policy
matters. The private sector’s response to these far reaching policies and programmes forms an integral
part of the larger transformational agenda driven by the public sector. The public policy process can be
regarded as the meeting ground of the private and the public sector. It is an acknowledged fact that the
business world is not only influenced and controlled by the economic contexts of their existence but most
definitely also by the social and political environments in which they operate. This is also the case, and
increasingly so, in a regional as well as in a global context.
However, issues management cannot be looked at in an ad hoc manner. The strategic positioning of the
organization expressed in terms of the mission, vision strategic values, goals and objectives all need to be
aligned. Managing and monitoring become crucial activities as continuous processes. From a theoretical
perspective the dynamic interrelatedness of companies and their environments serves as the key conceptual
and practical premise. In this regard not only does information play a central role but power as process
and construct becomes an immensely important ingredient. This is especially important in socio-political
transformational environments where symmetry is occasionally negotiated and renegotiated through
proactive strategic corporate communication initiatives.
In South Africa public sector programmes such as black economic empowerment (BEE), accelerated
growth initiatives (ASGISA) The New Partnership for Africa's Development (NEPAD) as well as social
issues including crime, violence against women and children, HIV/Aids, etc. are embedded in the economic
and socio-political environments. There is no way that corporate communication professional can turn a
blind eye to these processes and situations.
Against this background this study will attempt to address the following central research question: What is
the perception of Chief Corporate Communication Managers of the impact of selected socio-political
policies and programmes as issue management matters on their strategic corporate communication
practices in their South African companies?
Thirty randomly selected companies from the top 500 South African companies will be selected to take part
in the survey. In depth interviews will be conducted over a few weeks. The interviewer will be assisted by
a moderator in order to ensure a greater sense of consistency and reliability during and after the interview
and data collection process. The qualitative data will be organized and analyzed by the application of the
Huberman and Miles (1994) model consisting of data reduction, data display and conclusion drawing and
verification processes. The emphasis is on similarities, and differences as unique and cross cutting issues.
(Abstract Only)
91
Gideon de Wet
92
Document Cycling and Gatekeeping: A Case Study of Policy
Development in a Fortune 100 Company
Sam H. DeKay
The Bank of New York Mellon Corporation, USA
[email protected]
The purpose of this study is to analyze specific elements of the document cycling process that permit—or
inhibit—the transformation of texts produced by individual writers into documents that articulate corporate
policy. A case study was conducted during a nine-month period commencing in January 2006. The study
focused upon the work of two writers, employed in a Fortune 100 Company, who generate documents
intended to communicate corporate policy to 23,000 employees worldwide. The study presents qualitative
and quantitative evidence that document cycling is an effective means of developing policy within a large
corporation. In addition, the investigation concludes that cycling successfully results in the development of
corporate policy if (1) the cycling process occurs within the context of a hierarchy of power relations and
(2) knowledgeable “gatekeepers” within the organization are assigned responsibility to grant corporate
authority to documents that meet specific criteria.
In 1985, the term “document cycling” entered the lexicon of business communication. In
a case study describing writing practices at Exxon ITD, Paradis, Dobrin, & Miller explicated a
process involving supervisory review of documents composed by staff writers. This practice,
designated by the term “document cycling,” was defined as “the editorial process by which they
[supervisors] helped staff members restructure, focus, and clarify their written work” (p. 285).
The supervisory review may involve editing for content, style, organization, tone, or grammar
(pp. 300, 301). Additional reviews may follow as the writer further refines text in accordance
with the supervisor’s recommendations; the document is “cycled” several times prior to final
approval. At Exxon ITD, document cycling played a key role in making the individual’s work
advance the organization’s established objectives (p. 293).
In their seminal study, Paradis et al. (1985) did not suggest that cycling is a phenomenon
that may apply to writing practices beyond workplaces specializing in research and development
tasks. However, subsequent researchers indicate that “document cycling” may be the most
common form of collaborative writing in business and professional environments (Adam, 2000;
Couture, 1991; Couture, 1993; Debs, 1993; Locker, 2006; Lunsford, 1990). Several studies
indicate that this process may involve not merely a writer and supervisor or manager; document
cycling can also encompass review by many individuals, including peers and stakeholders
throughout an organization (Adam, 2000; Couture, 1993; Locker, 2006; Smart, 1993; Weber,
1991).
Since the early 1990s, an extensive corpus of research, including case studies and
surveys, has explored the practice of document cycling from multiple perspectives. Attention has
especially focused upon the effects of cycling, both positive and detrimental, upon interpersonal
relationships between writers and their reviewing supervisors (Couture, 1993; Locker, 1992;
Palmeri, 2004; Paradis, 1985; Smart, 1993). However, little research has considered the
processes by which document cycling actually achieves its intended purpose: the transformation
of a document, originally composed by a single author, into a text that has attained the sanction of
corporate authority. Studies of the cycling phenomenon have not examined the organizational
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Sam H. DeKay
dynamics involved with the evolution of writing that originates as the voice of its original author
and ultimately emerges as a pronouncement of the corporation.
Researchers have long recognized that organizational dynamics provide a broader context
within which the document cycling process is sustained. However, identification and
examination of these dynamics have often been relegated to the indefinite direction of “future
research.” Paradis (1985), for example, comments that the editorial reviews that occur during
cycling serve to shape documents composed by individual writers into texts that are “fitted to the
organization’s needs” (p. 306). Paradis also notes “we need a better understanding of how this
process actually takes place” (p. 306). Debs (1993) asserts that we have only a “limited
understanding of authorship as it is shaped in the workplace and the significance of the
organization’s role in authorizing tasks produced by its makers” (p. 160). As a result, Debs
insists, we need “to unveil the organization, to identify more carefully the relationships that exist
between the individual and groups within society” (p. 170). Locker (1992) maintains that
“research on collaborative writing in the workplace cannot focus simply upon the group’s
activities but must consider the larger organizational context as well” (p. 59).
This study is intended to identify and investigate specific elements of the cycling process
that permit—or inhibit—the gradual transformation of texts produced by individual writers into
documents that represent the pronouncements of corporate authority. To borrow Debs’s
metaphor, the study attempts to “unveil” organizational dynamics that facilitate, or impede, the
process of document cycling as a strategy intended to achieve corporate goals.
The results of a case study involving two writers who work in a Fortune 100 company
will be presented. Both writers are employed in the information security function, the division of
the organization responsible for the confidentiality, integrity, and accessibility of information
processed and stored by the Company’s computer systems. These writers were selected for this
study because (1) both are experienced with the process of document cycling and (2) these
persons generate documents addressed to the Company’s 23,000 employees and intended to
define and communicate corporate policy. The study examines the invention and drafting
processes of these writers. However, attention is primarily focused upon the organizational roles
occupied by the authors and their reviewers and the manner by which power relations represented
by these roles contribute to, or detract from, the ability of document cycling to attain corporate
goals.
The study is guided by three research questions:
1. Has the cycling process, as exemplified by the two writers in this case study, resulted
in the generation of documents that effectively contribute to organizational needs?
2. What elements of the cycling process facilitate, or impede, the transformation of
single-authored texts into documents that have been granted corporate authority?
3. What are the pedagogical implications, if any, of the analysis of the document
cycling process emerging from this study?
Method
The research method selected for this study is that of participant-observer ethnography,
similar to that adopted by Smart (1993) in his examination of the writing processes used by policy
and administrative staff at the Bank of Canada.
Between January 4 and September 18, 2006, I met daily for 20 minutes with two writers,
Jim and Bert (pseudonyms, although both are male) to discuss the processes by which their texts
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Document Cycling and Gatekeeping:
A Case Study of Policy Development in a Fortune 100 Company
are drafted, reviewed, revised, and, ultimately, published for corporate readership. In this
timeframe, I conducted a total of 123 interviews; they focused upon the following issues:
1. What are your responsibilities within the organization?
2. What is your role in the corporation, especially in relation to your supervisor, other
levels of senior management, technical specialists, reviewers of documents, and
readers?
3. What documents currently occupy your time?
4. What are the purposes of these documents, and who are the intended readers?
5. Have you recently met or communicated with technical specialists concerning the
content of documents that you are currently drafting?
6. Are the contents of the documents sufficiently clear in your mind that you can
compose a cogent and structured text?
7. How much time did you devote to writing during the previous day? What phase of
the writing process (e.g., planning, drafting, editing, reviewing) was the focus of your
attention?
8. Have you communicated with your supervisor or other reviewers concerning their
reactions to the document? What suggestions or other comments have they offered?
9. Have you incorporated the comments of your supervisor and other reviewers into the
draft document?
10. What obstacles, if any, have you encountered while preparing the document for
publication? How will these obstacles be surmounted?
11. What feedback, if any, have you received concerning a published document?
12. Do you feel that the document cycling process generally results in the publication of
documents that meet the organization’s needs? Why or why not?
I retained written notes of the responses gathered during all interviews.
During the nine-month span of the study, Jim published 42 texts and Bert generated 20
documents. Frequent interaction with the writers was possible because I am a co-worker,
employed in another department of the Information Security function. My work is not directly
related to the work performed by Jim or Bert, although all three of us report to the same
supervisor. I am also a friend of these colleagues, having known each for several years.
I informed Jim and Bert that their responses to interview questions and copies of any
documents supplied to me—including electronic mail correspondence with supervisors and
reviewers—would remain confidential.
In addition to the interviews, I was provided access to drafts of all documents generated
by the writers, and also to copies of written comments prepared by reviewers and to the responses
to these comments. In addition, I conducted two interviews with the writers’ supervisor and other
major stakeholders responsible for reviewing the documents (e.g., the Head of Internal Audit, the
Global Compliance Officer assigned to Information Security, and Information Security Officers
assigned to all affiliates and subsidiaries of the Corporation.)
These interviews focused on the following topics:
1. As you read the documents submitted by Jim and Bert, what are your primary
concerns—grammar, the mechanics of writing, accuracy and thoroughness of
content, clarity of written expression, the potential reactions of other readers?
2. When you suggest changes to a text, do you propose alternate wording, offer a
general direction for improvement, or both?
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Sam H. DeKay
3. Do you expect all your suggestions to be reflected in the published documents?
4. Do you feel that the document cycling process generally results in the publication of
documents that meet the organization’s needs? Why or why not?
I also retained written notes of all responses to these interview queries.
Jim: Developer of Corporate Policy
Jim is currently 59 years old; he has worked in the field of information security for 22
years, the last seven of which have been at the Fortune 100 Company. During the past five years,
his work has focused entirely upon the production of written texts. Jim’s experience and training
is that of an information security specialist, not a professional writer. Like many employees in
business environments, he has been assigned writing tasks because management has determined
that he “has a way with words.”
His current work consists of developing the Company’s information security policies and
standards. As he explains, a policy is a “broad statement of the company’s position concerning
information security practices, such as appropriate email usage.” A standard is “a more detailed
description of provisions by which the company ensures that the policies are implemented. For
example, the Company has an ‘Authentication’ standard that describes, among other details, the
minimum length of passwords used to access computer systems.”
Currently, the Company has six information security policies and 24 standards; each
policy is approximately 10 pages in length, and standards are usually 4-8 pages long. Most
documents consist of a numbered, and sometimes bulleted, list of rules that must be enforced
throughout the Company to assure the security of corporate information processed by or stored in
computer systems. One or more of the policies or standards are revised on a monthly basis,
depending upon the concerns of senior management. According to Jim, these documents are
developed because “they provide guidelines by which information technology professionals and
employees in business units understand and comply with a set of authorized rules; the policies
and standards ensure that acceptable practices—such as the minimum length of a password—do
not have to be reinvented whenever a problem arises.”
Most of Jim’s writing consists of revising existing standards to resolve issues that, in the
opinion of management, have become controversial or are perceived to fill gaps in current rules.
Although Jim occasionally generates some of these revisions on his own initiative, most of the
assignments originate from his supervisor, the Head of Information Security. This individual is
also designated the corporate “owner” of all information security policies and standards and is
considered responsible, by the organization’s senior management, for the content of these
documents. When a specific rule requires modification, Jim and his supervisor meet face-to-face
and the supervisor describes a desired revision. This description is not usually an explicit
formulation of the written rule; rather, the supervisor explains the problem requiring resolution
and suggests general wording for the rule change. Prior to commencing a draft, Jim often must
consult with technical specialists in order to clarify specific issues or to acquire a coherent,
structured arrangement of ideas that can be comprehended by non-technical readers. Often, this
phase of clarification is quite lengthy. “Once,” Jim admitted, “we were developing a policy
concerning the security of wireless networks. The topic is so complex, and is evolving at such a
rapid rate, that I had to meet with telecommunications personnel for nearly a year before writing
one word of the first draft.”
Following his meetings with technicians, Jim drafts a proposed text, based on the
supervisor’s recommendations. During the drafting process, as the proposed text reveals logical
96
gaps or transitions, Jim may further consult with other information security or technical
specialists to obtain additional information. After the draft is prepared, Jim returns to his
manager to review the wording. At this meeting, the supervisor may approve the whole of Jim’s
document, suggest further modification, or reject the proposal and recommend a re-write. Jim
usually accepts these changes, although he occasionally proposes alternate wording that may
further clarify the rule. The manager considers Jim’s comments before making a final decision
concerning the wording; however, Jim cannot proceed with the cycling process until his
supervisor has approved the document. On average, a document will be cycled, or reviewed, two
times before supervisory approval is granted. In some instances, however, a single sentence may
require a full month to draft.
After obtaining his manager’s authorization, Jim forwards an email message, with the
proposed rule change attached, to 16 members of the Information Security Steering Committee
(ISSC). Members of this group comprise stakeholders throughout the Corporation whose
functions involve oversight or implementation of the Company’s information security program.
These stakeholders include representatives of the Compliance Division, the Internal Audit
function, and information security managers in all corporate subsidiaries throughout the world.
Jim’s email message requests each member to review the proposed text, to offer comments or
alternate wording, and to email his or her suggestions to Jim within a few days.
Although the individuals belonging to this committee are all concerned with developing a
strong security program, the members do not interact as a group. Rather, they are expected to
offer responses that reflect the unique concerns and practices of their own divisions or geographic
locations. Most members of the committee provide no feedback. However, whenever Jim
forwards a “request for comments,” at least one individual offers a response. In many instances,
the comments are editorial—requests to modify one or two words. Occasionally, stakeholders
will propose alternate text that modifies the meaning of the original draft.
Jim develops a summary of all responses and reviews this summary with his supervisor.
Suggested editorial changes are generally accepted, unless they are clearly inaccurate or
inappropriate. Together, Jim and the supervisor discuss responses that may alter the document’s
original meaning; if the proposal represents an improved formulation of the proposed rule, and if
it preserves the intent of the rule, the suggestion will be approved. However, if a comment alters
the purpose of the rule, the supervisor will reject it. In these instances, the supervisor will
personally contact the individual who has objected to the rule and negotiate a settlement.
Although the supervisor would prefer that a final policy reflect a consensus of stakeholders,
complete agreement is not always possible. In these instances, Jim’s supervisor—the Head of
Information Security—has a corporate responsibility to ensure that suggestions that are not
technically feasible, or impossible to implement due to resource or other constraints, will not be
incorporated into corporate policy.
After this final session with his supervisor, Jim incorporates all approved changes into the
revised policy and forwards it, via email, to the Corporation’s Compliance Division for
publication. “I’m always careful,” Jim mentioned, “that the email message contains the sentence:
‘This modification has been approved by the senior management of Information Security.’ Also,
I always send a copy of the final document to my supervisor.” Within two days, the new text is
published in the Company’s Policy Directory, a Lotus Notes database accessible to all employees
worldwide. Jim’s name does not appear on the document; however, the title of his supervisor, the
“Head of Information Security,” is described as the policy “owner.”
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Sam H. DeKay
Bert: Corporate Security Educator
Bert is 55 years old and has been employed at the Company for nearly 30 years. During
his first two decades with the organization, Bert worked as a programmer and as a supervisor of
information technology personnel. He joined the information security function about 10 years
ago, and has been writing security awareness bulletins for approximately half that time. Like Jim,
Bert is assigned to writing tasks because his managers are pleased with his clear prose and its
conversational tone; however, Bert’s formal education and training is that of a technician, not a
writer or professional communicator.
Bert’s awareness bulletins are written for an intended readership of all Company
employees, nearly 23,000 worldwide. These bulletins, called “Smart Tips”, are brief messages—
usually no more than two full computer screens in length—intended to provide instruction
concerning good security practices. Many of these practices are applicable to computer users in
any organization: never share your passwords with another person; don’t open email messages
from an untrusted source. Occasionally, however, the messages refer to policies unique to the
Company: always select a password that is at least eight characters in length; never divulge
personal information concerning customers to non-employees.
Bert writes at least one awareness message each month. His supervisor frequently selects
the topics of these bulletins, although any employee of the Company can suggest potential
subjects. Occasionally, Bert develops topics on his own initiative.
His writing process proceeds in defined stages. First, he selects a title intended to draw
the reader’s attention (e.g., “Have You Been Spoofed Lately?”). Then, in the first paragraph,
Bert relates an anecdote or describes a recent event that serves as “lead-in” to the basic lesson.
As he explains, “I try to adopt a conversational tone that will be friendly while, at the same time,
cause the reader to become engaged with the subject.” After the first paragraph, Bert introduces a
specific “best practice.” He explains why employees should adopt this practice and often
provides “how-to” instructions if the topic describes a behavior or procedure. The Smart Tip
concludes by informing employees that they may send an email to Bert if they have additional
questions or request further assistance.
In the process of composing his message, Bert may require clarification concerning
corporate policy, legal issues, or technical matters. When this specialized information is required,
Bert consults with subject matter experts within the organization. As with Jim, this process of
obtaining information is often time-consuming. “One of my Smart Tips,” Bert explained, “dealt
with the importance of employees making copies of information stored on their Company-owned
laptops. Unfortunately, there was no authorized method for making these copies. Jim and I had
to meet with seven different technical specialists before I could write a document that described
one method that all could agree upon. These meetings took nearly two months!”
After completing his first draft, Bert sends a copy via email to his supervisor. Only rarely
does the manager correct spelling, grammar, or mechanical errors. Rather, the supervisor reviews
the document to ensure that information is accurate and that the text conveys its intended
message. Sometimes, the manager eliminates specific words and substitutes new terms or
phrases deemed more appropriate. Bert occasionally discusses these suggestions and persuades
his supervisor that the original wording is more consistent with the document’s purpose. More
frequently, however, Bert accepts the manager’s recommendations. As with documents produced
by Jim, Bert’s work will usually be reviewed an average of two times prior to approval.
When the supervisor’s review is complete and Bert has revised the document to conform
to the recommendations, he forwards a copy of the document to a representative of the Corporate
Communications Division. Corporate Communications is responsible for reviewing and
98
approving all documents sent via email to employees. Even though Bert’s Smart Tips will be
transmitted under his own name, Corporate Communications must ensure that the text contains no
content that may be deemed offensive or inappropriate.
Several years ago, when Bert commenced writing his security awareness bulletins, he
frequently encountered conflicts with Corporate Communications.
“They really didn’t
understand why or what I was writing,” he confessed. “At first, Corporate Communications felt
that the content and tone of many messages conveyed subtle, inappropriate subtexts. When I
wrote a message explaining that employees should not share their passwords, the
Communications Division claimed I was implying that the employees were careless and oblivious
to the need for confidentiality. When I prepared a Smart Tip about the dangers of opening email
messages from unknown sources, Communications said that I should not frighten the staff.”
Apparently, the Information Security and Communications Divisions maintained divergent
perspectives concerning the anticipated reactions to security awareness messages. In fact, these
perspectives were sufficiently dissimilar that Bert’s supervisor was required to meet with
Corporate Communications personnel and clarify the needs of Information Security. The meeting
was successful, and these conflicts were not repeated. Since that time, the reviews conducted by
Corporate Communications have consisted primarily of correcting grammatical errors and
copyediting text to replace infelicitous wording. For example, Bert once introduced a sentence
with the phrase: “The Bank’s employees.” Corporate Communications, recognizing that the
organization includes subsidiaries and affiliates that are not banks, altered the phrase to a more
inclusive “The Company’s employees.”
Bert says that his supervisor “doesn’t want to see the revisions made by Corporate
Communications, because they have the final approval concerning the contents of documents. I
am ready to publish after Communications completes its edit.” Thus, following any corrections
and modifications made by the representative of Corporate Communications, Bert forwards an
email copy of the message to all Company employees. He is clearly attributed as author of the
text, and many employees respond to him directly if they request clarification of the contents.
Discussion
1. Has the cycling process, as exemplified by the two writers in this case study, resulted in the
generation of documents that effectively contribute to organizational needs?
Since April 2003 Jim has written 30 policies and standards and also composed 192
revisions to these documents; Bert has published 86 Smart Tips during the same timeframe. The
policies, standards, and security awareness bulletins have received favorable review from Internal
Audit, the Company’s external auditors, and from state and federal bank examiners. In addition,
senior managers from other financial service organizations have contacted Jim and Bert to obtain
advice concerning methods for producing policies and security awareness bulletins. All
individuals interviewed—including the two writers, their supervisor, and major reviewers—
agreed that the document cycling process exemplified by Jim and Bert resulted in the generation
of documents that effectively contributed to organizational needs. Most respondents indicated
that document cycling was an efficient method of generating text when time constraints are a
significant consideration. Also, the majority of persons interviewed believed that cycling ensures
that individuals most affected by policies will have an influence upon the contents of finished
documents. Assessed by these factors, it seems that the document cycling process, as practiced
by these writers, is an effective method for generating text that has a “strategic impact” (Lowry,
2004, p. 95) upon the Company.
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Sam H. DeKay
2. What elements of the cycling process facilitate, or impede, the transformation of singleauthored texts into documents that have been granted corporate authority?
An integral element of the cycling process, as exemplified in this study, is the role played
by corporate “gatekeepers” during the cycling process. For Jim, the primary gatekeeper is his
supervisor; for Bert, Corporate Communications performs this function. A “gatekeeper” may be
defined as an individual responsible for granting approval for the publication of a document. In
this capacity, the gatekeeper has authority to determine content, to make editorial corrections, and
to reject wording that is deemed inappropriate. Gatekeepers retain the power to transform text
written by a single individual into a document that reflects and articulates a corporate perspective.
This power is not a merely arbitrary assumption of authority. Rather, the gatekeepers who
oversee the work produced by Jim and Bert are also individuals held responsible by their senior
management for the contents of documents. Jim’s supervisor, for example, is considered the
owner of information security policies and is accountable for their effectiveness. Similarly,
Corporate Communications has been granted authority to ensure that all email messages
transmitted to employees accurately represent a corporate perspective.
An equally significant element of the document cycling process exemplified by Jim and
Bert is that all participants occupy unique roles within the organization and these roles are
structured within a hierarchy of power relations. The most obvious of these power relations
exists between Jim, Bert, and their supervisor. However, relationships of power are not
necessarily determined by the structure of a formal corporate organization chart. For example,
the representative of Corporate Communications holds the title of Managing Director, the same
title held by Jim and Bert’s supervisor. Yet the supervisor recognizes that Corporate
Communications retains ultimate authority concerning the publication of awareness bulletins.
The reviewers of policy documents, even though they may retain high status on a formal
organization chart, recognize that Jim and Bert’s supervisor is usually responsible for the contents
of security policy; therefore, the reviewers defer to the supervisor as the final arbiter concerning
the contents of policies and standards. It seems, therefore, that the hierarchy of power relations—
and the concept of “gatekeeper”—are both based upon the assignment of corporate responsibility
for a specific function. The Head of Information Security, for example, is held accountable for
the contents of policies; the Corporate Communications function is assigned responsibility for
messages transmitted to all employees. The document-cycling process must occur in accordance
with these recognized power relationships.
Bert’s occasional conflicts with Corporate Communications illustrate a significant
element that may impede document-cycling.
The Corporate Communications function
maintained that Bert’s guidelines for information security “best practices” did not convey a tone
of respect toward employees and were, therefore, inconsistent with the respectful messages
approved for corporate distribution. Until Corporate Communications was persuaded that Bert’s
Smart Tips were, in fact, consistent with this respectful approach, his security awareness
documents could not be disseminated.
Policy gatekeepers in this organization are required to balance three roles:
1. Gatekeepers must ensure that policies and standards are internally consistent, are
consistent with each other, and do not conflict with the broader values of corporate
culture.
2. Gatekeepers are responsible for ensuring that policy innovations are introduced in a
manner that minimizes disruption to business operations and processes.
100
3. Gatekeepers must manage the production and communication of policies in order that
business needs are addressed in a timely manner.
If a gatekeeper lacks adequate knowledge of the content of policies, or is reluctant to
introduce innovation, or is unable properly to manage the process of communicating policy, then
document cycling fails to serve its intended function. In Bert’s case, for example, Corporate
Communications did not initially understand that the Smart Tips were compatible with the
Company’s broader culture; until this issue was resolved, Bert’s messages were not granted the
status of corporate authority. A further example of gatekeeper misunderstanding, and its
influence as an impediment upon the cycling process, occurred in another department of the same
company and at the same time as the current study. This department had adopted a cycling
methodology very similar to that employed by Jim and Bert. However, the department’s policy
gatekeeper had been recently promoted to this position and was reluctant to approve new policies.
According to staff writers and supervisors in the department, the new gatekeeper was fearful of
“making waves.” As a result, policies necessary to the conduct of business were not published.
However, senior management perceived this inactivity as a lack of the gatekeeper’s ability to
manage the production and communication of policies. In order to address this perception, the
gatekeeper reluctantly commenced to approve policies.
It seems, then, that the policy gatekeeper’s ability to fulfill the three above-mentioned
roles is a significant factor contributing to or detracting from the efficiency of the documentcycling process.
3. What are the pedagogical implications, if any, of the analysis of the document cycling process
emerging from this study?
Collaborative writing, as described in many business communication textbooks, is often
described as an effort involving a group of authors jointly contributing to a single document.
However, as mentioned previously, research does not sustain this view. Indeed, most prior
research concerning collaborative writing in workplace environments emphasizes that document
cycling—single-authored documents reviewed by supervisors and other stakeholders—is the
most common form of collaboration. From this perspective, the case study of Jim and Bert has
potential pedagogical significance.
The process of document cycling, as described in this study and in prior research (Adam,
2000; Couture, 1993; Freedman, 2000; Lowry, 2004; Paradis, 1985; Paré, 2000; Smart, 1993),
involves individuals who are assigned specific roles within an organization. In turn, these roles
are structured within formal or informal power relationships. Although Jim and Bert may engage
in dialogic interaction with their supervisor and others, the writers recognize that they do not
retain authority to transform their texts into pronouncements that reflect corporate perspectives.
Only the “gatekeeper” can perform this function.
From a pedagogical perspective, this form of document cycling may be simulated with
exercises that incorporate specific roles, a power hierarchy, and a gatekeeper. For example, the
instructor can divide the class into groups of three. One student in each group assumes the role of
a staff writer, one represents the writer’s supervisor, and the third adopts the persona of a
representative of Corporate Communications. All students are presented with a checklist of
guidelines that specifies the major concerns of each role. Checklists will include a description of
the document purpose (the text should have broad corporate implications, such as a Human
Resources policy), its approximate length (perhaps no more than 250 words), and its intended
audience (e.g., all employees). Additionally, the writer’s checklist will explain expectations
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Sam H. DeKay
concerning language and style. The supervisor’s list will include the task of assessing accuracy
of contents. Corporate Communications is charged with ensuring that documents will not reflect
adversely upon the organization or any employee and also that text is grammatically correct.
Each member of the group will receive a copy of all three checklists.
After completing an acceptable draft, the “writer” will submit the document to the
“supervisor” for review. Face-to-face discussion of the supervisor’s comments will occur, and
the writer will have an opportunity to negotiate differing views with the supervisor; however, the
latter retains authority concerning the contents of the document. In addition, both writer and
supervisor must consider the likely reactions of Corporate Communications, the third reviewer,
when conducting their revisions. The writer and supervisor continue to cycle, or review, the text
until an acceptable product is generated.
The representative of Corporate Communications, the ultimate gatekeeper, will next
review the document. Suggestions and comments should reflect the perspective of this function;
however, the writer and supervisor will retain the right to dissent and offer persuasive arguments
regarding alternate views. However, only Corporate Communications has authority to grant
approval for publication.
The full simulation is intended to focus upon the process of revising texts multiple times,
a process driven by the needs and expectations of individuals who occupy differing roles within a
corporate hierarchy. Students are thus provided an opportunity to experience the manner by
which textual content and rhetorical features of written documents are influenced by the roles and
responsibilities assigned to individuals within an organization. Most important, the exercise
focuses upon the significance of a gatekeeper who must approve the completed text in order to
grant to it the status of an authorized corporate statement.
This process is repeated two more times within the group, to provide an opportunity for
each student to assume one of the roles. Evaluation of each group’s effort will consider the
adequacy with which members have assumed specific roles, the appropriateness of reviewers’
suggestions, the effectiveness of personal interaction between the writer and reviewers, and the
extent to which the final written product addresses its originally stated purpose.
Conclusion
Commencing with the publication of the Paradis (1985) study that identified document
cycling as an integral element of writing in the workplace, numerous researchers have examined
cycling as a method of conducting collaborative editing. This study identifies an additional
function performed by cycling. More specifically, the case study of Jim and Bert demonstrates
that document cycling serves to transform single-authored texts into pronouncements that reflect
and articulate a corporate perspective. Two major factors contribute to this transformation: (1)
the presence of a hierarchy of power relations comprised of clearly demarcated sets of roles and
responsibilities and (2) the existence of “gatekeepers” who are assigned responsibility to grant
corporate authority to documents that meet specific criteria. Document-cycling, as exemplified
by Jim and Bert, occurs within the broader context of the organizational dynamics created by
these power relations. Thus, cycling is not merely a form of collaborative writing; rather, this
process is one among many activities—such as establishing budget priorities and making
purchasing decisions—that depend upon the review and approval of authorized members of an
established corporate hierarchy.
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References
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103
Sam H. DeKay
104
Managing Contrary Internal Communication
in a Small Company
Krishna S. Dhir
Campbell School of Business, Berry College, USA
[email protected]
Organizational communication behavior that is at variance with or contrary to reason, or not guided by
sound judgment, can have a crippling effect on efficient functioning of an organization. The effect of
contrarian communication can be particularly devastating for a small organization, especially when its
productivity is mainly dependent of human factors. This paper explores a literary case study of
management of seemingly unreasonable, willful and stubborn communicative behaviors in a small
organizational setting. The case of interest is Herman Melville’s work, Bartleby, the Scrivener: A Story of
Wall Street. The paper finds high agreement between Melville’s insights into the elements of employeeorganizational linkage and the model developed by Mowday, Porter & Steers more than a century later.
The paper describes how Melville’s organizational dynamics operates in the context of contrasting
employee communicative behaviors. The individual characteristics of the decision-maker become critical
when the situation has an element of irrationality.
This paper explores the process of rational management of irrational contrary behavior in
a small organizational setting, as illustrated by Herman Melville in his work, Bartleby, the
Scrivener (Melville, 1969). With a subsidiary title, A Story of Wall Street, in this work Melville
addressed the darker, dehumanizing aspects of the emerging American financial district. He tells
a story of a Wall Street lawyer’s small business organization, narrated in the first person by the
lawyer. The origins of the New York Stock Exchange can be traced to the Buttonwood
Agreement of 1792, when on May 17th 24 stock brokers met outside of 68 Wall Street in New
York in the shade of a buttonwood tree. Twenty five years later, in 1817, the stock brokers
adopted a constitution and a name, “New York Stock & Exchange Board”, and moved into a
$200-per-month room at 40 Wall Street.
Melville leaves the narrator unnamed. The story was written a decade before the New
York Stock & Exchange Board renamed itself yet again as it is known to this day, the “New York
Stock Exchange”. This lawyer has a practice that focuses on processing various legal documents
such as bonds and title-deeds. The operation of the Exchange was relatively simple then.
Availability of stocks would be announced on the floor of the Exchange and the announcer would
ask, “Any bids, gentlemen?” A handshake would seal a bid and the parties would seek services
of a lawyer, such as Melville’s narrator – “conveyancer and title hunter, and drawer-up pf
recondite documents of all sorts…” – to make up the documents of the purchase. “There was
now great work for scriveners…I must have additional help.”
To run his business our narrator employs three individuals, including two scriveners, men
who copy legal documents, descriptively nicknamed Turkey and Nippers and a young apprentice
named Ginger Nut. The title character, Bartleby, is hired by the narrator as a fourth employee,
when he needs another scrivener to handle the heavy workload of a growing firm. Events start on
a positive note between the narrator and Bartleby. Bartleby is a conscientious, if reclusive
worker. He is a thin, pale, mysterious character. Unfortunately, the situation soon deteriorates as
Bartleby refuses to perform the tasks for which he was hired. This creates a crisis situation for
the small legal firm. Strategies deployed by the narrator offer an opportune case study analyzed
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Krishna S. Dhir
in this paper. This story is no less that of the narrator than of Bartleby. This narrative of the
biography of a scrivener is also an autobiography of an entrepreneur, the story’s narrator himself.
The story describes the conditions leading to Bartleby’s noncompliance, the consequential
challenges created for the narrator and other employees of the organization, and approaches
adopted by each of them to overcome their respective problems.
The Social Environment
Melville wrote Bartleby, the Scrivener in 1853. Earlier, in his autobiography, Benjamin
Franklin had described the American man as archetypal, self-made individual (Franklin, 1964),
“new son of Adam” in “the new Eden.” Early in the narrative, the narrator, in Bartleby, the
Scrivener, describes both himself and Bartleby as “sons of Adams.” According to Geoff H.
Johnson (Johnson, 1993), Franklin’s description of the American man as the son of Adam was
not generally applicable. By any account, it was not applicable across the broad spectrum of the
population. Not all “new son(s) of Adam,” in America, “the new Eden,” were destined to become
rich individuals like John Jacob Astor and Benjamin Franklin. According to Johnson, Melville’s
“son of Adam” was like the majority of Americans, who were poor and worked hard at mundane
jobs and tasks. They were very different from those few who constituted the growing class of
capitalists who placed a higher value on utilitarian ethics than, apparently, on humanity. Through
the description of the narrator in his story of Wall Street, and through Bartleby, Melville
condemns “those character traits most valued by early American autobiographers like Franklin”
(Johnson, 1993). Melville’s Wall Street is not a temple of the possibilities of tomorrow, but, as
Michael Turro puts it, a “stifling environment of repression” (Turro, 1993). Turro describes Wall
Street as a religion, through which we define our professional occupation, our identity, our needs
and wants, and even what we should become.
The Characters
The narrator
The narrator is about 60 years of age. Before describing Bartleby, Melville states through
the narrator that the description of himself, his employees, his business, chambers, and general
surroundings “...is indispensable to an adequate understanding of the chief character about to be
presented.” Through the narrator, Melville demonstrates a remarkable insight into organizational
dynamics that was to be revealed more than a century later by Mowday, Porter and Steers in
1982. To describe the case of his business, and the commitment, effort on the job, and retention
of his employees, the narrator explores the personal characteristics, role-related characteristics,
structural characteristics and work experiences of his employees entirely in keeping with the
Mowday, Porter and Steers Model (see Figure 1 below):
It is no accident that Melville’s narrator is a professional lawyer. As Turro states,
“Smothering the certainty of death, our occupational obsessiveness is an effort to firmly plant our
minds, if not our bodies, in the physical world.” (Turro, 1993) To be connected, to be wanted, to
be wanting, and to be networked, is to be alive. The narrator in this story of Wall Street does
indeed value highly prominent social connections, and admits that he was not “insensible to the
late John Jacob Astor’s good opinion” which afforded him good business prospects. In this
respect he is not different from Benjamin Franklin, who in his Autobiography (Franklin, 1964)
writes about acquiring important connections very soon after arrival in New Jersey, and names
among his friends “... Judge Allen, Samuel Bustill, the Secretary of the Province, Isaac Pearson,
106
Managing Contrary Internal Communication in a
Small Company
Joseph Cooper and several of the Smiths, Members of the Assembly, and Isaac Decow, the
Surveyor General ... These Friends were afterwards of great Use to me, as I occasionally was to
some of them.” (Franklin, 1964)
Personal Characteristics
Employee Commitment
Role-related Characteristics
Structural Characteristics
Work Experiences
Job Effort
Retention
FIGURE 1. Mowday, Porter and Steers Model
The narrator describes himself as one “... with a profound conviction that the easiest way
of life is the best.” He prefers conducting “... a snug business among rich men’s bonds and
mortgages and title-deeds” in the “cool tranquility of a snug retreat”, which is his office, and
shuns addressing a jury or engaging in activities which might draw public attention.
Significantly, though narrating his own experience, he remains anonymous, never divulging his
own name. He insulates himself, in this way, from the “proverbially energetic and nervous,”
even turbulent, environment of Wall Street, safeguarding his peace. He describes himself as
unambitious and states that “all who know me consider me an eminently safe man.” He states, “I
seldom lose my temper; much more seldom indulge in dangerous indignation at wrongs and
outrages...”
Bartleby
Bartleby seems to the narrator to be a mysterious individual, “a scrivener…I believe that
no materials exist for a full and satisfactory biography of this man.” At his very first meeting
with Bartleby, the narrator thought him to be “...a motionless young man…pallidly neat, pitiably
respectable, incurably forlorn!” The narrator does not understand Bartleby, not when he first
meets him and not at any other time through the story. Nevertheless, he offers Bartleby the job.
Bartleby takes on an uneventful, mundane occupation of law-copyist in the narrator’s
organization, “...a very dull, wearisome and lethargic affair” in which the only mental activity
required is to give careful attention to someone else’s work of hundreds of pages. This requires
of him no self expression, no creativity, no exploration of the depths of the soul, no decisions. In
the environment of Bartleby’s Wall Street that is devoid of opportunity for creative expression,
the futility of activity, connectedness, involvement, and life, and indeed the inevitability of death,
is emphasized. As it turns out, for Bartleby, this is not a new experience. He brought to the
narrator’s organization his experience as a subordinate clerk in the Dead Letter Office in
Washington. “Dead Letters! does it not sound like dead men?” (Melville, 1969; Also see
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Krishna S. Dhir
Mitchell, 1990).
At first, “Bartleby did an extraordinary quantity of work. As if long famished for
something to copy, he seemed to gorge himself on my documents ... He ran a day and night line,
copying by sun-light and by candle-light ... he wrote on silently, palely, mechanically.”
However, gradually, he began to indicate his preference not to perform the various tasks he is
assigned.
Over time, he succumbs to the futility of activity, the inevitability of death, and suffered a
complete breakdown of all repressive mechanisms. As described by Turro, “...Just as Bartleby
disrupts the working dynamic of the office, he disrupts the reader’s notion of productivity and
ultimately the reader’s notion of the purpose of life.” (Turro, 1993) Bartleby offers no clue for
his stubbornness, no explanation for his inability to perform his tasks, other than a persistent, “I
prefer not to.”
Throughout the story, the narrator is clearly concerned with efficiency of his organization
and successfully operating his business. He is dependent upon his business, which seems
successful enough to afford him employees. Yet, he himself is affected, or perhaps infected, by
Bartleby’s inactivity. The narrator describes the first time Bartleby refuses to cooperate when
asked by him to examine a small document with him. “I would prefer not to,” Bartleby had said.
The narrator studied Bartleby, “...His face was leanly composed; his gray eye dimly calm. Not a
wrinkle of agitation rippled him. Had there been the least uneasiness, anger, impatience or
impertinence in his manner; in other words, had there been any thing ordinarily human about him,
doubtless I should have violently dismissed him from the premises. But as it was, I should have
as soon thought of turning my pale plaster-of-paris bust of Cicero out of doors ...” (Melville,
1969)
Other employees
Turkey and Nippers are about 60 and 25 years old, respectively. They have developed
their own mechanisms for coping with the mundane nature of their occupation. Turkey spends
most of his money on liquor, imbibes heavily at lunch-time, supposedly to reinforce himself to
face the rest of the day, but unfortunately rendering him unsuitable for product work thereafter.
Nippers is different. He needs no artificial stimulant. He endlessly rearranges his desk, never
finding a comfortable configuration. He is, at least, active. Both these individuals are trying to
keep their individuality alive, but are least useful when most alive. While much of what work
Turkey produces happens before lunch, Nippers seems to settle down, somewhat, after lunch.
The narrator states that “…I never had to do with their eccentricities at one time…When Nippers’
was on, Turkey’s was off; and vice versa.” The two, together, present some sense of a day’s
worth of work, keeping the business in motion. Ginger Nut, the third employee, was a young boy
about 12 years old. He mainly functioned as an errand boy, mostly fetching snacks for Turkey
and Nippers.
The Physical Environment
During Melville’s time, New York City was already a city of tall buildings crowding
each other. The story is set in an office setting located on the second floor of a multistoried
building on Wall Street. It has a dull, even oppressive atmosphere of constriction with a view the
narrator refers to as “deficient in what landscape painters call “life.” The view from the other end
of the narrator’s chambers offered nothing more. “In that direction, my window commanded an
unobstructed view of a lofty brick wall, black by age and everlasting shade; which wall required
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Small Company
no spyglass to bring out its lurking beauties...” Once recruited, Bartleby is assigned a corner by
the folding-doors. His desk was close up to a small side-window “...which, owing to subsequent
erections, commanded at present no view at all, though it gave some light.” (Melville, 1969)
The absence of “life” is what ails Bartleby, and threatens the narrator who seeks “the
easiest way of life” in the “everlasting shade.” The underlying current of death permeates the
story.
The Nature of the Task
As stated earlier, the business of the narrator was one of drawing up legal documents.
For all documents involving agreements between parties, at least two copies were required.
Therefore, on each job, at least two scriveners teamed up. “It is, of course, an indispensable part
of a scrivener’s business to verify the accuracy of his copy, word by word. Where there are two or
more scriveners in an office, they assist each other in this examination, one reading from the
copy, the other holding the original.” This job is “very dull, wearisome, and lethargic affair.”
Some documents ran into “say five hundred pages, closely written in a crimpy hand.”
Nevertheless, the narrator sees himself providing a critical service to his clients, without the
performance of which Wall Street could not function. It was a job that the narrator believes to be
at the very heart of the system of that binds and secures the society.
Facing the Irrational
As the story progresses, it offers opportunities for various observations. For instance:
After working feverishly for the first couple of days, mechanically “copying by sun-light and by
candlelight”, Bartleby begins to show signs of being a contrarian. “It was on the third day, I
think, of his being with me…I called him…to examine a small paper with me.” Bartleby in a
singularly mild, firm voice, replied, “I would prefer not to.” As stated above, the narrator
observes that “not a wrinkle of agitation rippled” Bartleby. He shows no anger, impatience or
impertinence. The narrator calls to Bartleby yet again, “The copies, the copies…We are going to
examine them…” Bartleby simply states, “I prefer not to,” as a genuine act of will. In a dull
working environment, devoid of opportunities to be creative and original, Bartleby was asserting
his right to make a decision. When asked by the narrator why he refuses, Bartleby yet again
states, “I would prefer not to.” The narrator’s encounter with Bartleby seems to be a metaphor
for facing the irrational – Bartleby’s behavior is characterized as “moon-struck” and “luny,” and
he appears to respond to “the laws of magical invocation” rather than reason. Bartleby begins to
reason with him.
The narrator’s rational response to Bartleby’s behavior is summed up in his words “come
forth and do your duty.” But the narrator is himself unable to “do his duty” in a forthright
manner: rather than take responsibility for a decision which implies the inevitable action of
removing Bartleby, he himself prefers (!) to postpone, rationalize, observe, empathize – all of
which results in merely transferring the inevitable action to others. Over subsequent days the
narrator has not been able to change the state of affairs. He questions his own actions and seeks
the opinion of other employees. “Turkey, what do you think of this? Am I right?” Turkey
replies blandly, “With submission, sir, I think that you are.” “Nippers,” says the narrator, “what
do you think of it?” Nippers is forthright, “I think I should kick him out of the office.” Even
Ginger Nut’s opinion is sought, who opines with a grin, “I think, sir, he’s a little luny.”
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Krishna S. Dhir
As days pass, the narrator begins to justify Bartleby’s behavior. He reports, “Poor
fellow! Thought I, he means no mischief…intends no insolence…He is useful to me…If I turn
him away, the chances are he will fall in with some less indulgent employer…”
Yet another, once more the narrator asks Turkey for his opinion. It is afternoon. Turkey
is loud, “Think of it? I think I’ll just…black his eyes for him!” The narrator has to calm Turkey
down, “Sit down, Turkey.” Then he turns to Nippers, “What do you think of it, Nippers? Would
I not be justified in immediately dismissing Bartleby?” “Excuse me, that is for you to decide,
sir…”, says Nippers. Turkey is still excited, “Shall I go and black his eyes?”
“No, not today, Turkey.”
Bartleby progresses from responding to requests for work with the statement, “I prefer
not to,” to remaining silent. He makes the office his home. He stops copying. Other employees
begin to be infected by Bartleby and adopt his language: Annoyed, Nippers utters, “Prefer not,
eh? I’d give him preferences, the stubborn mule!” The narrator discourages Nippers, “Mr.
Nippers, I’d prefer that you would withdraw for the present.”
Finally, the narrator is concerned for his business. The narrator gives Bartleby six days
to leave the office. Six days come and go, and Bartleby states that he prefers not to. Eventually,
the narrator moves his office and business out of that address, leaving Bartleby behind.
Bartleby is taken to the prison without protest, where he is free to wander about. There is
no charge against him. A few days later, Bartleby is dead.
There are some noteworthy observations in these interactions. Bartleby is like a
barometer of the narrator’s conscience—for example, at the end of the story he calmly accepts
being taken away by the constables, but with the narrator he displays an attitude of having been
betrayed.
• Consider: although Bartleby’s personality and orientation to society are
unconventional, he at least seems to know himself; whereas the narrator seems to be
in denial and hiding--isn’t this why the narrator finds his relationship to Bartleby so
compelling?
• The narrative points to the fact that human judgment, or one’s overall mental state, is
strongly influenced by the mental states of others with whom one associates. The
narrator notices that he and his other employees are beginning to unconsciously
imitate Bartleby’s use of the word “prefer,” and he fears that they will be affected
further by his mental state.
Elements Observed in the Contrary Organizational Communication
With respect to his ability to make decisions and handle practical matters, the narrator
prides himself on his “prudence” and his “method.” From his description of his interactions with
employees (Turkey and Nippers) we can infer the elements of his decision process. This process
seems to work well enough for him when conditions are normal or mildly irrational; but it is
challenged when a serious case of irrationality prevails in the situation, which is the case with the
contrarian, Bartleby.
Faced with eccentricities and mild irrationality, the narrator’s managerial response seems
to begin with an attempt to determine the nature and cause of the problem, by observation. For
instance, the narrator describes Turkey’s recklessness in the afternoon; Nippers’ irritability in the
morning. He observes that as a team the two offer him one man-day of work. He seems to
advocate that contrary situation should not be confronted too strongly. Instead, the manager
should try to influence a solution to the situation by subtle, gentle methods. For example, he
encourages Turkey to shorten his work day. If the situation doesn’t change, the employee resists
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Small Company
or doesn’t respond, consider the value that the employee brings, accept the limitations of the
employee’s failings and resist strong reactions. For example, the narrator remarks that Turkey
and Nippers are very “valuable” and “useful” to him, in spite of their eccentricities. Finally, the
narrator tries to minimize the possibility of negative effects by regulating the “system”. For
instance, he gives the more important papers to Turkey in the morning and to Nippers in the
afternoon. He gives Turkey a new coat.
Now let us consider the elements of the narrator’s approach to Bartleby’s irrationality. As
before, he tries to determine the nature and cause of the problem, through observation. The
narrator observes Bartleby more closely to see if there’s a hint of a reasonable explanation for his
behavior, even his diet. He does not confront the situation too strongly, but try to influence it by
appealing to rationality. He tries to reason with Bartleby about his behavior, “…say now that in a
day or two you will begin to be a little reasonable: -- say so, Bartleby.” If the situation doesn’t
change, the employee doesn’t respond, and the basis for the employee’s behavior is irrational,
obtain the “disinterested opinion” of others. The narrator asks for Turkey’s and Nippers’
opinions. If no solution emerges, consider the positive aspects of the situation, such as the value
that the employee brings, accept the limitations or the employee’s failings, and resist strong
reactions, reconciling oneself to the new situation.
The narrator reframes the context of Bartleby’s behavior by considering it to represent a
“tacit stipulation” between them. The narrator realizes that his attempts to influence Bartleby will
not succeed because there is no apparent way to regulate the effects of an irrational element in the
system. So he empathizes with the individual displaying irrational behavior, on the basis of the
bond of a common humanity – he calls it "fraternal melancholy" – and extends sincere
friendliness. If there is still no success, recognize the internal dangers of not acting. The narrator
fears that he and the other employees are becoming more like Bartleby in their mental states. He
reviews the various options that had previously been dismissed, such as forceful removal of
Bartleby, recourse to legal authorities and re-evaluation of his own assumptions. He makes
further attempts to influence the situation. But then he falls back on "prudent principles." He
reflects, and reads writings that might provide spiritual assistance and guidance. He reads
Edwards and Priestley, which "induced a salutary feeling." Unable to change the situation, he
resigns himself to "providence" with an attitude of spiritual acquiescence. "At last I see it, I feel
it; I penetrate to the predestinated purpose of my life. I am content…this wise and blessed frame
of mind would have continued with me…"
Now the narrator recognizes the external dangers of not acting. "Business necessities
tyrannized over all other considerations." The narrator's professional reputation was at stake and
forced an action. As a last recourse, he divorces himself from the insoluble problem. Since
Bartleby will not leave, the narrator himself leaves. Although this desperate action might not
solve the fundamental problem, it relieves the immediate symptoms. The decision-maker must
bear the consequences of the decision. The fact that an action was taken that minimized the
distasteful aspects of the decision does not change the fact that the decision has clear
consequences.
Covert Elements Inferred in the Decision Process
Not all elements in the narrator’s decision process are overt. Faced with unexpected, or
irrational behavior, the decision maker may tend to avoid or postpone action, e.g., “put off for
leisure” due to pressing business demands. The decision-maker can be “disarmed” by behaviors
that are not expected or understood. The decision maker may seek rationalization, accepting any
interpretation of the situation that allows one to avoid taking action, e.g., “He is useful to me…If
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Krishna S. Dhir
I turn him away, the chances are he will fall in with some less indulgent employer…”, or the
narrator’s conclusion that eye strain must be the reason Bartleby has stopped working. The
decision maker may attempt to force someone into a reaction so as to provide justification for a
decision, or to shift responsibility for the outcome, e.g., the narrator’s giving in to temptations to
“bait” Bartleby. The decision maker may tend to seek out opinions of others in order to relieve
oneself of full responsibility for the decision or action. The decision maker may “reframe” the
context of the problem, or reevaluate the decision-maker’s assumptions, to enable one to
accommodate oneself to an unexpected or confusing situation. The inability to influence another
to change their behavior may cause the decision maker to divorce himself or herself from the
problem by escaping it through any means available
Concluding Remarks
Certain basic conclusions that may be drawn from this narrative are as follows. Who the
decision-maker is has a significant impact on the decision-making process. The individual
characteristics of the decision-maker become more critical when the situation has an element of
irrationality. The narrator’s life philosophy seemed to be rationalization as evidenced by his
acceptance of Nippers and Turkeys behavioral flip-flop between morning and afternoon. If the
decision-maker had been Nippers or Turkey, a more forceful or direct solution might have been
taken earlier. The step-by-step decision-making process may be the same for most individuals
but the results tend to be different because of the person’s background, life experiences, or simply
‘who they are’. Example of how applying rational decision-making fails when it is applied to an
irrational situation.
Acknowledgement
I gratefully acknowledge the assistance of my students Kim E. Bateman, William J.
Corbin, Richard F. Long, David P. Welliver and Michael D. Zawrotuk in the development of this
paper.
References
Benjamin Franklin (1964), In Leonard W. Labaree (Ed.), The Autobiography of Benjamin Franklin, Yale
University Press, New Haven, CT.
Geoff H. Johnson (1993), “Melville’s New Fallen American Adam.” 1993 Midwest Modern Language
Association Convention, July 13, 1993, http://condor.depaul.edu/~gjohnson/ameradam.html, Seen
on May 4, 2008.
Herman Melville (1969), “Bartleby, the Scrivener: A Story of Wall Street.” Great Short Works of Herman
Melville, Harper & Row, New York.
Michael Turro. Bartleby, Wall Street and the Occupational Repression of Death.” Formerly at:
http://odin.he.net/~bluepear/melville.html, Seen on August 9, 1993.
Thomas R. Mitchell (1990), “Dead Letters and Dead Men: Narrative Purpose in ‘Bartleby, the Scrivener,”
Studies in Short Fiction, Vol. 27, pp. 329-338.
Richard T. Mowday, Lyman W. Porter and Richard M. Steers (1982), Employee-Organization Linkages:
The Psychology of Commitment, Absenteeism, and Turnover, Academic Press, New York.
112
Communication Management in the Netherlands,
Trends and Developments
Wim J.L. Elving & Betteke van Ruler
Department of Communication, University of Amsterdam
The Amsterdam School of Communications Research (ASCoR),
The Netherlands
[email protected]
Knowledge of how communication professionals work, what their main tasks are, how their position is in
the organization and in society will lead to a better understanding of the needs of society on corporate
communication and related areas. Previous studies in the Netherlands has shown that the field is emerging
and that a glass ceiling existed for female professionals in 1995 and in 1999 (Van Ruler, 1995; Van Ruler
& De Lange, 1999). The current study is the first on communication professionals we executed in the new
century and will address the findings of the previous studies. Besides that we will compare the position of
the Dutch communication professionals with international studies
The research was aimed at communication departments of large Dutch organizations and at professionals
working at communication consultancies. With the databases of the Dutch Chamber of Commerce we
selected all Dutch organizations which had at least 50 employees, of which we selected 25% randomly for
our sample. We also took a sample of 25% of all agencies registered as public relations or marketing (as
the way it is listed) from the Chambers of Commerce. Because of the increasing importance of
communication management at municipalities and governments we also included these by listing all of
them and selected 25% of these. The invitations were send to the head of the communication department, or
the head of the agency. Because we had initially low response rates we conducted an non response study
and to enlarge our sample we send out the questionnaire to members of the Dutch professional
Communication Association (Logeion) as well. The results will be presented separately for communication
professionals working in organizations and in agencies, and we will test differences between the way
respondents were selected.
On the basis of our results and the population information we obtained we calculated that the size of
communication management in the Netherlands exceeds 90.000 (on a population of 16 million). This is an
increase in comparison to the 1995 and 1999 studies. Also the total budget for communication management
had a increase, from 5 million guilders (= 2.25 million euros) in 1999 to 5,5 milliard euros in 2006). From
our analysis it shows that the glass ceiling for female communication managers seemed to have
disappeared, since there are more female had of departments in 2006. Furthermore, the encroachment (not
having a training in communication) seem to become less in comparison to previous studies. A remarkable
result was that communication managers who had an professional or university training in communication,
identified themselves significantly stronger with the communication profession than the communication
managers who did not have a professional background training in communication. The main issues for the
upcoming next five years that were listed by the respondents were: the positioning of the profession,
knowledge development and exchange, receivers and context influences, including issue management, new
media as instrument in the profession, and accountability and return on investment
The low response rate we originally had are a bit worrisome, although from our non response study it
showed that there are no main differences between responding and non-responding organizations and
agencies, a response rate of 8% was too low for extensive conclusions. The size of communication
management in the Netherlands lead to a discussion within the association of professionals in the
Netherlands, whether all professionals could be labeled as so, and if there are needs for certifications.
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Wim J L. Elving and Bette van Ruler
Communication is becoming more and more important in Dutch organizations. Not only the size and the
budgets of the communication departments are increasing, but also their position in the organization seems
to be more significant.
(Abstract Only)
114
Corporate Social Responsibility Advertisements in Brazil and
the UK: A Case Study of Banco Real and Chevron
Francisca Farache
Brighton School of Business, University of Brighton, UK
[email protected]
Corporate Social Responsibility (CSR) communication is an emerging field, with research focusing on
corporate social disclosure mainly through websites and corporate reports. However, little is known
regarding CSR advertisements. The present paper evaluates CSR advertisements from Chevron and Banco
Real which were the most publicised in the UK and Brazil, respectively, over a one-year period from May
2006 to April 2007 in The Economist, Time, Veja and Exame, magazine leaders in their categories. The
companies use different strategies for publicizing corporate social responsibility. On the one hand, there
are campaigns that appeal to the consumer rationality and, on the other hand, there are campaigns that
appeal to the emotions. There is also evidence that companies use advertisements as a means to create or
maintain legitimacy through different strategies.
Companies are faced with an increasing expectation on the part of stakeholders to engage
in social responsibility and, consequently, are expected to communicate their corporate social
responsibility (CSR) efforts to a varied, influential, alert audience (Beckman, Morsing and
Reisch, 2006). Despite this, CSR communication is still an emerging field in academia, with
research focusing on corporate social disclosure mainly through websites and corporate reports,
while little is known regarding CSR advertisements (some examples are Zeghal and Ahmed, 1990
and Drumwright, 1996). Even the term CSR advertisement is not widely used. Thus, further
research is needed on this topic in order to determine how advertisements are processed, what
strategies are employed and on what bases they are established.
The present paper evaluates advertisements used by corporations to publicise their CSR
activities through print magazines. It analyses ads from Banco Real and Chevron, which were the
most publicised in Brazil and the UK, respectively, over a one-year period from May 2006 to
April 2007. The ads were gathered from four weekly news/business magazines – two from each
country. The Brazilian magazines analysed were Veja and Exame, and for the UK, The Economist
and Time Magazine (Europe Edition) were chosen. From these analyses, the paper employs
Lindblom’s legitimacy strategies (1994) to explore how the selected companies advertise
corporate social responsibility in two different contexts (Brazil and the UK), investigating
communicational strategies that attempt to legitimise their activity in society through CSR
advertising.
CSR in Brazil and the UK
Brazil is well known as a country with strong economic inequalities and social problems.
The income of the richest one percent of the Brazilian population is nearly equal to that of the
poorest 50 percent, leading a shameful list of the most unequal countries in terms of income
distribution (Young, 2004). The Gini index (a measurement of income inequality) is 59.7 in
Brazil (CIA, 2006), making the country notorious for the concentration of its income and wealth
(The Economist, 17 June 2006). However, what happens in a developing country such as Brazil,
where civil society is poorly organised and the government lacks accountability and social
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Francisca Farache
responsibility? Research suggests that the media in Brazil does not play the role of watchdog. In a
study on CSR coverage in 54 Brazilian newspapers, Vivarta and Canela (2006) found that (1) the
media has a superficial perception of CSR, (2) when detailed coverage is supplied, it lacks critical
analysis and a pluralistic view of the subject, and (3) distinctions between social action and CSR
are unclear. The nature of the coverage demonstrates that, as a rule, the press has yet to assume its
role as a CSR watchdog. The evidence suggests that CSR is in its infancy in Brazil. It first
appeared on the agenda of corporations and academia in the 1990s (Beghin, 2005). The main
organisation responsible for the implementation of the CSR concept in Brazil is the Instituto
Ethos de Empresas e Responsabilidade Social (Ethos Institute for Companies and Social
Responsibility), established in 1998. This is a non-profit, non-governmental organisation with
1,156 members and is comprised of companies from different segments and of different sizes,
accounting for annual revenues of approximately 30% of the Brazilian GDP and employing
roughly 1.2 million people (Ethos, 2006). According to Beghin (2005), corporations in Brazil
tend to act as a charity rather than being socially responsible. Azevedo (2004) reinforces this
belief by arguing that Brazilian corporations, especially those in the south of the country, have
incorporated CSR actions, even though the corporations still act in their traditional manner,
mainly based on philanthropy and paternalism with regard to the community and their employees.
By contrast, the UK is a country with a strong tradition of CSR, where consumers are
aware of the social impact of a corporation. For instance, the UK was the first European country
to have a governmental minister of CSR (Moon, 2004). The GINI index in UK is 36.8, which is
compatible with the European Union figures (CIA, 2006). The main drivers of CSR are believed
to be business, civil society and government (Moon, 2004). The UK, alongside the Netherlands,
is considered one of the most advanced nations in the world with regard to CSR (Aaronson and
Reeves, 2002). One of the reasons the UK is a point of reference in this field is its essential part in
CSR learning through organisations such as AccountAbility and Business in the Community.
Moreover, companies and institutional investors focus on issues of long-term social and
environmental risks in the UK (Aguilera et al, 2006).The government plays a pivotal role in the
development of CSR in the UK, having identified CSR as a potential contributor toward national
advancement (Aaronson, 2003). CSR has grown more in the UK than in any other comparable
country and has been encouraged through ministerial leadership, stimulation of the development
of business associations and CSR organisations, and the adoption of ‘flexible’ regulation by the
Thatcher and Blair governments (Moon, 2004). Beyond governmental interference, Solomon et al
(2004) identify three sociological factors that appear to promote the growth of CSR in the UK: an
increased concern regarding ethics in British society; the growth in media coverage on CSR
issues; and the keen interest in risks and risk management.
Advertisement self-regulation codes
Corporate behaviour is a sensitive subject, as the stakes are raised for those who expect to
protect consumers from improper business practices as well as for businesses that believe good
corporate conduct will have a positive effect on its finances. This represents a very special case of
advertising, for which it is especially important that such marketing is carried out in a responsible
manner, as many practices commonly used in marketing are thoroughly inappropriate for
advertising good corporate conduct (Stoll, 2002). Thus, companies that advertise their ethical
stance and CSR are expected to follow the self-regulation code of advertising. Both Brazil and the
UK have adopted a self-regulatory system in which the industry or the professional body is in
charge of the regulation, with varying levels of contribution from external groups such as
governments and consumer groups. This results in a setting in which the government grants the
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industry the power to regulate, which develops its own standards of behaviour, creating and
maintaining a code of conduct, ethics, standards or principles (Spence and Van Heekeren, 2004).
This results in a type of “private government” made up of industry peers rather than external
control, where the role of regulator is internalised via the delegation of power and authority
(Boddewyn, 1989).
In the UK, the Committee of Advertising Practices (CAP) is the self-regulatory body that
creates, revises and reinforces the British Code of Advertising, Sales Promotion and Direct
Marketing, entitled the Code. This is the rule book for non-broadcast advertisements, sales
promotions and direct marketing communication (marketing communication), the main function
of which is to regulate the content of marketing communication not dealing with the product or
business itself. The Advertising Standards Authority (ASA) endorses and administers the Code,
ensuring that the self-regulatory system works with the public in mind. Its major activities are
investigating and judging complaints as well as doing research. The Brazilian equivalent is the
CONAR (Conselho Nacional de Auto-regulamentação Publicitária – National Council of
Advertising Self-regulation) code, which is based upon the British version and aims to secure
freedom of speech, the interests of the advertising market and the interest of consumers. CONAR
has the functions of both the CAP and the ASA. Although there is no standard set of codes for
advertising self-regulation operating globally, a study by Spence and Van Heekeren on codes in
Australia, the UK, the USA and Canada found a common set of commitments to the following
principles: (a) responsibility towards consumers and society; (b) truth, decency and honesty; (c)
avoidance of misrepresentation and deception; (d) a sense of fair competition; and (e) the
protection and promotion of the reputation of the advertising industry (2004). Even though the
Brazilian code of self-regulation was not included in the former study, the author found the five
principles set above to be the foundations of the CONAR code.
Case #1 -- Banco Real
Banco Real is the third largest private-sector bank in Brazil, behind Banco Itau and
Bradesco, two national banks (Banco Central do Brasil, 2007). Originally a Brazilian bank
founded in 1925, Banco Real was bought by the Dutch ABN Amro Bank in 1998. However, the
merger only occurred in 2000, changing the name to Banco Real ABN Amro. Last October, a
consortium formed by The Royal Bank of Scotland, Fortis and Santander bought 86% of shares
from the Dutch Bank for 71 billion Euros. This was considered the largest deal in the banking
industry worldwide. In the deal, the Spanish bank Santander will be the new owner of the ABN
Brazilian unit. It is expected that the merger will preserve both brands names: Banco Real and
Santander (Istoé Dinheiro, 26 Sept 2007). The market is speculating that after the merger, the new
Banco Real could occupy the second or even the first place in the national ranking, as Santander
Bank occupies the fifth place in the private-sector banking list (Valor Econômico, 8 Oct 2007).
Banco Real has 1,138 branches throughout the country, with 33,004 employees and
4,048,163 account holders. In 2007, its net profits were R$ 2,975 billion, with a 45% growth in
relation to 2006. The excessive growth the occurred in Brazilian bank industry led to a heavy
flow of criticism. In the first semester of 2007, Brazilian banks reported greater profitability than
American banks. In fact, the Brazilian banks had nearly double the profitability of the American
banks in the same period (Estadão, 14 Aug 2007). Although Banco Real is not on this list (the
Brazilians banks listed were Itau, Bradesco, Unibanco and Banco do Brasil), the banking industry
is receiving a lot of criticism for its exorbitant profits in such a controversial economic climate as
Brazil (Folha de São Paulo, 17 Feb 2008). In order to compensate the losses the end of inflation
caused, banks had to increase lending to companies and individuals. They began to charge more
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Francisca Farache
for their services, which had previously been either free of charge or inexpensive. As a result, the
revenues from banking services increased nearly four fold between 2000 to 2006, from R$ 13.4
billion to R$ 52.6 billion. This caused a lot of indignation and also the threat that the government
would have to intervene in the banking sector to control its tariffs, which did not occur (Veja, 3
Oct 2007).
On the other hand, Banco Real has a reputation in CSR, recognised through its practices
and awards received, such as ECO Award from Amcham (American Chamber of Commerce);
Valor Social Award from Valor Social Magazine; and Sustainable Company Award from Exame
Magazine. Furthermore, the Bank is member of the Ethos Institute and (as part of the ABN
AMRO Bank) has adopted the Equator Principles. Banks that have signed the Equator Principles
assume a public commitment to ensure that the projects financed by their institutions are
developed in a socially responsible way, reflecting environmental management practices. The
Equator Principles operate as a basis for the implementation of social and environmental policies
within its member institutions (Wright and Rwabizambuga, 2006).
Case #2 -- Chevron
With U$ 17.14 billion in profits, Chevron is the 19th largest company in the world
according to Forbes list of the World’s 2000 largest public companies in 2007 (2007). Chevron is
an American company, headquartered in California that operates in more than 100 countries.
Chevron is in the oil & gas operation industry and its roots can be traced back to 1879 to the
Pacific Coast Oil Company. In 2001, Chevron merged with Texaco and became Chevron Texaco.
In 2005, the company name was changed to Chevron. Globally, it has more than 59,000
employees and, in 2007, the company produced 2.62 million barrels of oil per day (Chevron,
2007).
Due to the nature of their activities, companies in the oil industry are under close scrutiny
from the public and are pressured to demonstrate social and environmental responsibility
(Coupland, 2005). As an industry, it is strongly linked to environmental and human rights
scandals around the globe. In the last two decades all the largest companies have been linked to
scandals: Shell/Brent Spar, Exxon/Alaskan oil spill, BP/Texas oil refinery explosion and
Total/Burma. It is no different with Chevron. In Ecuador, the company (the former Texaco) is
accused of dumping wastewater in the rainforest. Protesters claim that the company discarded
18.5 billion gallons of highly carcinogenic toxic waste into swamps, streams and rivers between
1970 and 1992 (Amazon Watch, 2008). These activists have embraced a campaign called
ChevronToxico, making an analogy with former name of the company (ChevronToxico, 2007).
The case was referred to Ecuadorian courts (Time Magazine, 1 Aug 2007). Chevron has
acknowledged that bribes were paid for oil the company obtained under the United Nations oilfor-food programme in Iraq (Financial Times, 14 Nov 2007).
These controversies have not prevented Chevron from being recognised for its CSR
practices and performance. The company occupied 9th place in the Accountability Rating 2007
and was the only American company to be in the top 10 (Fortune, 1 Nov 2007). Accountability is
an international non-profit organisation that promotes accountability for sustainable development.
Chevron is also included in the Dow Jones Sustainability Index for North America 2007 (Dow
Jones, 2007).
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Legitimacy Theory
Legitimacy theory states that organisations can only secure their existence if they are
perceived to operate within the values and norms of society (Gray et al, 1996). Legitimacy is
based on the idea that a social contract exists between business and society in which society
allows the company to operate as long as the business behaves according to society expectations.
When the behaviour of company either is not or is perceived as not being in accordance with
society creeds, it runs the risk of losing its legitimacy. In light of this, companies within industries
that may cause greater environmental and social impact are expected to disclose environmental
information in order to secure legitimacy (Branco and Rodrigues, 2006). The authors cited argue
that companies that deal directly with consumers, especially those with greater visibility among
them, will tend to take issues of community involvement into more consideration. Larger
companies are predisposed to receive more attention from the public than smaller companies.
Thus, it is believed that larger companies need to employ greater effort in communicating CSR
actions than their smaller counterparts (Patten, 1991). As companies disclose social responsibility
information to present a socially responsible image, their behaviour can be legitimised to their
constituents. As a result, legitimacy theory has been widely used to explain social and
environmental disclosure by corporations focusing mainly on corporate social reports and
environmental reports (e.g. Gray et al, 1995; Neu et al. 1998, Hooghiemstra, 2000; Branco and
Castelo, 2006). The corporate report is considered by the latter authors as a response from public
pressure and increased media attention. Alternatively, the researcher considers that CSR
advertisements extrapolate corporate reports, as they can reach a higher number of stakeholders
than reports that are mainly directed at shareholders, the government, non-governmental
organisations, the financial community and research institutions. The advertisements analysed in
this paper were published in print media with an average circulation of 1,460,000 issues in Brazil
and the UK alone. Therefore, the author disagrees with the latter authors, as she strongly believes
that CSR advertising is a corporate response to public pressure and media attention.
Thus, the author expects to encounter examples of the legitimisation strategies described
by Lindblom (1994) in the advertisements. She states that (1994) an organisation can make use of
four different strategies to respond to public pressure: (a) inform stakeholders about the
intentions of the organisation to improve its performance; (b) attempt to change the perception of
stakeholders regarding events without changing corporate behaviour; (c) divert attention from the
problem by focusing on a positive activity that is not linked to the problem; and (d) attempt to
change the stakeholders’ expectations regarding the performance of the company. However,
Clarke and Gibson-Sweet (1999) argue that, rather than assuming CSR is a crisis management
tool, it can be better understood as a means of reinforcing both reputation and legitimacy, as it
provides an opportunity to communicate to stakeholders the congruence of the organisation with
societal concerns. This leads to the development of the research proposition:
Research Proposition: CSR advertisements are used by companies as a form to create or
maintain their organisational legitimacy. Through advertisements, it is possible to identify what
strategies organisations use in order to respond to public pressure.
Method
Veja and Exame were the Brazilian magazines analysed. Veja is the leading weekly
news magazine in the country, with an average circulation of more than 1 million (Instituto
Verificador de Circulação - IVC, 2007). Exame is a leading business magazine in the country,
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Francisca Farache
with a circulation of 180,000 (IVC, 2007). For the UK, The Economist was chosen, considered
Britain’s most successful political and business magazine, with a circulation of more than
180,000 per week in the UK (Audit Bureau of Circulation - ABC, 2007); and Time Magazine,
Europe Edition, a leading weekly news magazine with average circulation figures of 550,000 in
Europe and 135,000 in the UK (ABC, 2007).
The magazines used in this research were analysed from May 2006 to April 2007. During
this time period, the researcher identified Chevron to be the company that advertised most in the
UK, with 41 insertions. In Brazil, Banco Real was advertised most, with 27 insertions. The author
chose one campaign from each company; both campaigns were made up of three advertisements
apiece.
The researcher uses a set of semiotic concepts developed by Roland Barthes in his article
Rhetoric of Image, based on work by Ferdinand de Saussure, for the structural analysis of the
advertisements (Barthes, 1977). Therefore, the paper will consider the image system of
connotation and denotation; the text functions of anchorage and relay in relation to the images;
and the question of the reader identification with the advertisement. Within this perspective, the
text facilitates the understanding of the image and has two functions: anchorage and relay.
Anchorage is the most common function when the linguistic message provides an image
explanation restricted to its polysemy. Relay is the explanation from the linguistic message that
the image would hardly obtain on its own accord. With reference to the image, Barthes produces
two types of messages: denoted (visually explicit) and connotated (in which one can find the
symbolic aspects of the advertisements). The denoted message is literal.
Advertisement Analysis
Chevron
The advertisement from Chevron, entitled here “A 5% reduction” (Figure 1), was the
most publicised CSR advertisement in the UK magazines during the data collection period. This
advertisement was publicised in one-page format (12 times) and in a double-page spread (3
times). It is part of an advertising campaign that publicised two advertisements during the
research (Figures 2 and 3). Within the set of its constituent elements (visual and textual), the
advertisement revolves around the worldwide need to conserve energy; simultaneous
demonstrating what Chevron has been in favour of this practice. Although it addressed the
environment, the company does not make use of any image that relates to the environment or
nature; its message is supported by common elements of a work environment. It has a clear
rational appeal, as it lacks elements that could stimulate emotiveness in the reader. At first
observation, the advertisement is divided into clearly defined two parts. At the top of the page,
the hook is written in white letters on a green background; underneath, there is an image with
diverse elements represented, such as a clipboard, notepad, ruler, notebook, paper, automatic
pencil, chart, figure and picture. These elements do not indicate individual peculiarities, thereby
producing an impersonal environment.
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FIGURE. 1 – A 5% reduction
Although the upper part occupies less space in the composition, it provides the reader a
direct linguistic message (the need for energy conservation) without being immediately
associated with the actions developed by Chevron. Thus, the linguistic message assumes the relay
function. Despite this, it is emphatic, using text in a clear, legible typography in a formation that
leads to a continuous assimilation. The lower part of the advertisement offers the idea of a
random puzzle – a set of elements that correspond to diverse levels of interest that could be
stimulated in the reader. The Chevron advertisement is structured following a model in which its
diverse elements (title, subtitle, text, signature, charts, pictures), although connected, have relative
autonomy from one another, permitting both isolated and complementary readings. The reader
can linger on a detailed reading or merely skim the ad as a whole. One may focus on the title, the
chart or even one of the shorter texts presented in the small notebook.
The hook is in the upper part of the advertisement – a text in the form of a newspaper
heading stating that a 5% reduction in global energy use will be enough to power Australia,
Mexico and the UK. This information is followed by a question: “so what are we waiting for?”
There is an evident relationship between this part of the advertisement and the image printed
below, as it is obvious that the answer to this question is among the diverse elements in the
second part of the advertisement. On the denoted level, there are various objects on a desk; on the
connotated level, these same elements suggest the existence of a person who is thinking of a
solution to the energy crises. Who might that person be? It is evidently a Chevron employee,
which is demonstrated by the presence of brands associating the objects to the company. On the
other hand, the advertisement also suggests that the reader can find a solution to the energetic
crisis; in other words, it leads the reader to identification.
There is a long text that develops the premises of the hook. The issue is gone into in
greater detail, addressing the reasons that lead to growing energy usage and the need for usage
control. Furthermore, an image shows mechanics alterations to a automobile, probably aimed at
energy saving; a chart illustrates the level of energy consumption within different sectors, such as
industry, transportation and others; a small picture of a man wearing a helmet, standing on a coal
pile holding a light bulb illustrates the text alongside that exemplifies how simply replacing a
light bulb leads to conserving coal and contributes toward improving the environment. However,
the corporate message of the advertisement seems to be founded in the text contained in the small
notebook located on the right side of the page, where the company emphasises actions that are
being adopted for its own energy reduction. In this brief text, the company basically demonstrates
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what it has been doing internally since 1992 to avoid its own energy waste, resulting a savings of
24%. The company also states that it has helped other people and the government save energy.
The text reads:
Chevron steps taken: Saving our own energy: since 1992, Chevron has reduced its own
energy consumption by 24%; we use cogeneration technology at our refineries to produce
additional electricity from otherwise wasted energy. Saving other people’s energy:
Chevron has a separate, proven business dedicated to energy efficiency. Success stories
include: improvements that will lower a region’s postal service electricity spending by
46%; helping the US government save taxpayers $151 million while reducing greenhouse
gas emissions by an expected 1.5 million tons.
In the way it is laid out, the advertisement produces two simultaneous effects: the first is
to divulge the possibilities of a reduction in energy consumption through diverse alternatives –
ideas that circulate on an individual level as well as on a corporative level, including here its
research and technology branches. The second effect is to address Chevron’s corporate
contribution to this arrangement, highlighting the company’s responsible characteristics, going
back to 1992 and the results reached. The piece therefore suggests the figure of a responsible,
well-informed, well-educated consumer capable of connecting distinct elements in the
perspective of a set of actions that associate individual efforts and corporative action. The ad also
addresses the consumer/reader in such a way that leads one to believe the company is actually
concerned with the global energy challenge.
This communication strategy becomes even more evident when one compares this
advertisement to the others in the same campaign. The visual and textual structure of the
advertisements “Russia, Iran and Qatar” (Figure 2) and “There are 193 countries” (Figure 3)
follows the same structure introduced in the previous advertisement. Here again, elements
commonly used in work and research environments are displayed, such as a pen, glasses,
palmtop, folders, keys and even a small cup of black coffee – in an allusion to such exhausting
work that a stimulant is needed. The text, again, follows the idea of providing the reader with
different reading levels according to his or her interests. Finally, the object that returns and
reaffirms the fundamental corporation character is the little notebook with the
contributions made by Chevron Corporation. It should be stressed that it is in the little notebook
image where the company signs the ad with its logo and slogan Human Energy.
FIGURE. 2 - Russia, Iran and Qatar FIGURE 3 – There are 193
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The advertisement in Figure 2 has the following hook: “Russia, Iran and Qatar have 585
of the world’s natural gas reserves. The U.S. has 3%,” followed by the question: So what does
that mean for us? In order to assist the reader in answering this question, a text is presented with
further information on the subject. Chevron’s contribution in this sense is again demonstrated in
the little notebook, where it is stated that, in the upcoming years, the company will invest more
than $ 10 billion in research and promote the largest LNG project in the world. Its text affirms:
Chevron steps taken: planning to invest more than $10 billion in developing gas projects
over the next five years; developing one of the largest integrated LNG projects in the
world; created a four-country partnership to build West Africa’s first regional gas
pipeline; spending more than $1 billion over the next several years on next generation,
ultra-clean diesel fuel from natural gas.
The last Chevron advertisement to be analysed offers the following hook: “There are 193
countries in the world. None of them are energy independent,” followed by the question: So who's
holding whom over a barrel? The longer text states that even countries like Saudi Arabia – the
biggest oil exporter in the world – imports its refined products, such as gasoline. Chevron once
again states in its little notebook that, since 1992, the company has been reducing its energy
consumption and affirms that it spends more than $15 billion per year getting energy to the
market. Its text announces:
Chevron steps taken: investing over $15 billion a year to bring energy to market;
developing energy through partnerships in 26 countries; committing hundreds of millions
annually to alternative and renewable energies to diversify supply; since 1992, have made
our own energy go further by increasing our efficiency by 24%.
All the three advertisements in Chevron’s energy campaign divulge the corporate social
responsibility, in which consumers can have access to further information on the topic as well as
information related to the industry. All of advertisements were also published in a double-page
spread format, although in a lesser amount (10 times).
Banco Real
Banco Real’s sustainability campaign was propagated with three double-spread
advertisements in the same issue of Veja and published only once. The advertisements were
distributed between the pages 100 to 150, with an average of 20 pages between them. The three
advertisements have very similar structures: a general layout of a landscape photograph (beach or
field), cut in the lower part by a white bar and a superimposed image of the graphic elements of a
cheque from a Banco Real chequebook. In all the advertisements, one or more personages with
common Brazilians names such as "Norberto Ramos Monteiro", "Paulo Jorge Couto de Melo and
his son Matheus", "Diana Tedeschi" (all classified as “Real clients”) are positioned over the
signature field of the check. The value of the cheque is replaced with the hook, a different one for
each advertisement. In the white strip that overlaps the picture, there is the same copy that repeats
in all the ads:
Environmentally friendly chequebooks. When you use it, you are saying what you expect from a
Bank and from your life. And you are contributing in one of the many ways to preserve our natural
resources. Banco Real uses recycled paper or white paper produced in an environmentally friendly
manner in 100% of its materials. Banco Real also gives you the opportunity to choose which type
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of paper you want in your chequebook. For further details, visit
www.bancoreal.com.br/sustentabilidade.
Apart from their hooks, what, in fact, differentiates the three pieces is the landscape
photograph that composes the background. The images present very well-preserved places from
an environmental standpoint. In the first one (Figure 4), there is a steep cliff by a calm sea at
sunset. On the top of the cliff, a young man contemplates the sea and the hills in the background.
Above this image, in the area that evokes the cheque, the hook states: “A world where nobody
loses when somebody wins”. On the connotated level, the connection between the hook and the
photograph is a relay function, constructed around a vague statement, merely indicative of a
supposed bank client’s comfort, who would be capable of enjoying the landscape as much as the
peace of mind of doing business without harming others. This character visits an idealised
landscape as well as idealises business affairs.
FIGURE 4 – A world where nobody loses
In the second advertisement, the photograph depicts a portion of forest at the banks of a
river. On a large rock, a small camping tent shelters a child and an adult, who read a book. The
forest is magnificent and closed, but the scene causes a sensation of great tranquillity. The hook,
handwritten in this case, reads: “A society that thinks about the consequence of everything it
does”. It is clear that the connotation of this advertisement can be summarised by the idea of
security: the son who feels calm and safe next to his father, even on the edge of a closed forest;
the client, who plans the future and preserves the natural world, thereby guaranteeing his son’s
quality of life.
124
FIGURE 5 – A society that thinks
Finally, the third advertisement displays a young woman running along a tree-lined road,
perhaps in a well-treated suburb. The photograph has an early morning atmosphere without any
kind of disturbance such as traffic, noise or pollution. The hook affirms: “A well-lived life today
without harming tomorrow”. Like the previous advertisements, the image is idealised, with a
precise graphic treatment, aiming to give the landscape the appearance of cleanness. In this third
advertisement, what is connotated is the idea of planning associated with the quality of life.
FIGURE 6 - A well-lived life
Therefore, the three pieces generally function from the connotation of an idealised
context (landscape and relationships) and the text accompanying the images performs the relay
function. The campaign general strategy is to address environmental issues by appealing to the
emotions (sensations, including aesthetics), thereby concealing the discrepancy between natural
landscapes and the impact of paper products.
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Francisca Farache
Discussion
The Chevron CSR campaign – composed of 3 different advertisements - was inserted
individually a total 34 times (5% reduction - 15 times, Russia, Iran and Qatar - 4 times and
“There are 193 countries” - 15 times) in both The Economist and Time magazines during the
research period. Conversely, the Banco Real campaign – also made up of three advertisements –
was published just once (all the advertisements in the same issue) in only one magazine (Veja).
Chevron used the repetition strategy that, according to studies, increases consumer awareness of
the message/brand (Schumann, Petty and Clemons, 1990). Moreover, Chevron campaign offers a
large amount of information that is difficult for the reader to assimilate in a single exposure.
Thus, the advertisements in this campaign need to be repeated. In contrast, the Banco Real
advertisements display the same text in all three ads. What changes from ad to ad are the hook
and the image, while all refer to the same topics. In this case, the audience does not need a second
reading to fully understand the ad.
The Chevron advertisements display visual evidence that they are directed to a male
audience, whereas the Banco Real campaign depicts a more heterogenic audience, as it portrays a
woman, a man and a family (formed by father and son). One can infer that the ads are directed at
a broader audience than Chevron's campaign.
While Chevron - one of the biggest oil companies in the world - associates itself with
energy saving, energy security and natural gas reserves, Banco Real is connected to the natural
environment. The images propagated in these two campaigns go beyond the industries of the
companies. At first glance, the Chevron campaign could have been made by a non-governmental
organisation (NGO), whereas the Banco Real campaign appears to be a tourist destination or
made by an environmental NGO.
The biggest threat faced by Banco Real (as for the majority of Brazilian banks) in relation
to its consumers is the fact that it charges high interest rates and, consequently, the banks have
greater profits in comparison to the other financial service companies. In order to legitimize its
performance and justify charges, the bank demonstrated that part of its profits is reverted to CSR
actions. However, despite its awareness towards the preservation of the environment (an attitude
amply associated with CSR), the campaign does not make any direct allusion to investments
applied in its conduct.
Thus, it Banco Real is more heavily using the legitimacy strategy that diverts attention
from the problem by focusing on a positive activity not linked to the problem. All the ads seek to
associate chequebooks made from recycled paper to sustainability, equity and nature. While it is
very respectable for the company to only use recycled and environmentally friendly paper
(whatever that means) in its material, the issue does not link elevated services costs or higher
rates to the banks. Banco Real could, at least, attempt to publish its environmental actions by
providing more substantial data.
Chevron not only faces accusations directed at the oil industry in general, but is also
involved in scandals correlated with judicial courts and probes, as discussed previously. Thus, in
this campaign, Chevron does not fully respond to the more usual critiques from society. The
advertisement “5% reduction” comes closest to the legitimacy strategy of “informing
stakeholders of the intentions of the organization to improve its performance” when divulging its
energy saving. In this case, the company is attempting to show that, despite being in an industry
that is highly associated to environmental problems, Chevron is concerned with making
consumers save energy and also offers viable alternatives. In its advertisement “Iran, Russia and
Qatar,” the company uses the more explicit the strategy of “attempting to change the perception
of stakeholders regarding events without changing corporate behaviour.” This piece addressed the
126
need for diversifying energy sources and introduces natural gas as a solution. It should be stressed
that no attempt is made in the advertisement to explain that, although natural gas is less of a
pollutant than oil, it is not a renewable energy source. A company that wants to invest in gas
natural is only expanding its energy sources in a traditional way. When discussing energy
security, a problem that does not appear as one of the main critiques against the oil industry made
by society, the advertisement “193 countries” gives priority to the strategy of diverting attention
from the problem by focusing on a positive activity not linked to the problem.
The analysis of the Chevron and Banco Real campaigns also allows the establishment of
other two distinct strategies of corporate social responsibility advertising. On one hand, the
Chevron campaign that appeals to the consumer rationality, incorporating complex data to the ad
in order to construct the idea of a responsible company. On the other hand, the Banco Real
campaign that appeals to the emotions, working mainly with visual impact in order to produce
consumer adherence to company policy. This likely occurs due to the socioeconomic differences
between the two countries investigated as well as the relative control exercised by society and the
government regarding the need for companies to publicise their CSR actions in a transparent
manner. As stated above, CSR is in its infancy in Brazil and Brazilian-based corporations tend to
act as a charity rather than being socially responsible. Moreover, the media fails to act as a
watchdog and has only a superficial perception of CSR; the distinction between social action and
CSR is still unclear for a large part of society. In contrast, the UK is considered one of the most
advanced nations in the world with regard to CSR. The government is engaged with its
development and British society is concerned with ethical issues, while the media provides everincreasing coverage.
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130
To Be or Not to Be a Crisis Commander:
An Explorative Investigation of the Crisis Management and
Crisis Communication Consulting of
Danish Public Relations Agencies
Finn Frandsen and Winni Johansen
ASB Centre for Business Communication
Aarhus School of Business, University of Aarhus, Denmark
Public relations agencies play an important role when organizations are in need of crisis consulting. ”Use
crisis management consultants (advice by objectivity of PR consultants is important)”, claims one of the
many web sites promoting the expertise of a public relations agency. However, we are still without
scientific and empirical investigations concerning the form and function of the crisis consulting ”products
and services” delivered by the agencies.
The aim of this paper is to present the results of an explorative investigation of the approaches
and consulting skills of Danish public relations agencies within the field of crisis mangement and
crisis communication. The questions we want to answer are:
•
•
•
•
•
•
•
How do public relations agencies define and typologize organizational crises?
What are the most widespread approaches to crisis management among consultants (within a
prescriptive and/or emergent perspective)?
What are the most widespread approaches to crisis communication among consultants (type
of crisis response strategies, stakeholder relations approach, etc.)?
What is the typical form and function of the crisis consulting ”services and products”
delivered by the agencies (lists of good advices, procedures, models, etc.)?
What is the role of crisis management consultants with regard to the organizations before,
during and after a crisis?
How do the public relations agencies communicate about their crisis consulting skills (using
metaphors like ”crisis experts” and ”crisis commanders”)?
To what degree do public relations agencies make use of scientific research findings in their
crisis consulting? How do consultants view public relations theory within the field of crisis
management and crisis communication?
The research design comprises three elements: 1) a quantitative survey consisting of a questionnaire sent
to 39 Danish public relations agencies, 2) qualitative semi-structured interviews based on the findings of
the survey with representatives of 10 Danish public relations agencies, and 3) archive studies focusing on
how the public relations agencies present their approaches and crisis consulting skills on their corporate
web sites and how the models and methods used and/or created by the agencies are described and
promoted in specially designed documents.
The results of the investigation are of importance to both organizations, public relations agencies and
researchers within the field of crisis management and crisis communication. The organizations acquire a
useful knowledge concerning the nature and quality of the crisis consulting they are asking for, the public
relations agencies can form a general view of differences and similarities in their approaches to crisis
management and crisis communication consulting, and the researchers can observe to what extent public
relations agencies introduce research findings in their consulting practices.
131
Finn Frandsen and Winni Johansen
(Abstract Only)
132
Coaching: Leveraging the Art of Communication
Across Cultures
Christina M. Genest, CEC
Corporate Communication International (C.C.I.)
at Baruch College/CUNY, USA
[email protected]
In January 2007 160 top public relations professionals, through the auspices of the PR Coalition and U.S.
State Department, gathered to explore how the private sector could become more engaged in U.S. public
diplomacy. Why? Given the state of the U.S.’ image abroad, there is growing concern about the ability of
American global companies to do business.
Eleven models of action were adopted. In a group of esteemed communicators, leaders in their profession,
intercultural communication and competency did not head the list. And yet, in this age of globalization,
cultural intelligence is a prerequisite to managing across cultures, whether those borders are national,
ethnic, racial, gender, corporate or professional. Imbedded in each of these cultural environments are
values that inform thinking and behavior – a complex thicket even for the most experienced cultural
navigator. At the core of intercultural competence is personal openness and adaptability – the willingness
to traverse across personal boundaries to gain a new insight, to consider a new paradigm and then, while
maintaining personal authenticity, adopting new behaviors and solutions. Simply put, personal
transformation is hard work, an on-going process and not one achieved by a day long training program or
reading a book about cultural do’s and don’ts.
A new partnership is emerging between the fields of intercultural communication and coaching whether in
the areas of life, corporate, or executive coaching. In my view, it presents exciting possibilities, in
particular for communicators who share a common language with the practice of coaching.
This paper will address communicators and will explore from the current literature and practice:
coaching; the language of coaching; how the language of coaching resonates with that of communication;
the art of coaching across cultures today; practices that have evolved from the influences of intercultural
communication and coaching; coaching’s potential as a leverage for communicating across cultures.
When 160 leading U.S. public relations professionals gathered at the U.S. State
Department in Janaury 2007 to determine models for action that the private sector can use to
support U.S. public diplomacy, their favored responses were tactical and reflected a doing
orientation rather than a being form of activity. American (U.S.) thinking, according to Stewart
and Bennett (1991) is functional and pragmatic, inductive and operational. (p. 28-31) Its emphasis
is on solving problems and accomplishing results. Its orientation is outward – influencing the
environment, rather than inward, transforming our own internal landscape. Among the tactics
adopted were:
1.
2.
3.
4.
Make public diplomacy actions a corporate officer’s responsibility.
Make U.S. business practices consistent with U.S. values.
Become a part of the local community through relationships with organizations,
chambers of commerce, journalists and local business leaders.
Create “circles of influence” through relationships with organizations, chambers of
commerce, journalists and local business leaders.
133
Christina M. Genest
5.
6.
7.
Create local opportunities to win internship opportunities in the U.S.
Provide English language training and oversee studies for disadvantaged students.
Support the creation of a corps of “foreign service officers” made up of academics
and business people with specialized expertise who would work abroad on shortterm assignments.
8. Provide incentives for the non-U.S. work force to visit America and for the U.S.
work force to travel overseas.
9. Sponsor international short-term assignments for U.S. employees.
10. Hold public diplomacy summits in key geographies.
11. Provide financial support for some State Department educational and cultural
exchanges. (PR Coalition, 2007, pp. 12-13)
Note the verbs: make, become (as in join), create, support, provide, sponsor, hold – all
action oriented, implying an agent. As Stewart and Bennett note, for Americans, “decisions have
their makers, problems their solvers, accidents their causes, success and failures their heroes and
villains” (p. 62).
The above are all laudable objectives. Yet they do not respond to how we got ourselves in
this fix in the first place. Participants may have been avoiding the political and diplomatic
decisions and actions that created the concern for “America’s reputation.” In my opinion we
were also avoiding the heart of the matter, those values that influence American cultural patterns
and thus inform American actions at home and abroad. I would submit, that as a culture, we are
unaware of why we behave as we do. And when intercultural communication discussions arise
they are generally about the other guy, not us. The hard work of intercultural intelligence
requires us to journey inward in order to become open to another’s cultural milieu, to create a
context in which relationships can be built, work can get done, mutual goals can be met, joint
meaning can be created. But in order to do this we first need to know where the journey begins.
Yet as communicators, we are well aware that values inform our thoughts, thus
influencing our actions. In order to operate effectively at home and abroad, we must continually
traverse cultural environments, whether national, ethnic, racial, professional, organizational,
community or family. We know that communication always occurs in a cultural context.
In my recent study of national values and their relationship to corporate values, a
significant difference arose. (Genest, 2004, p. 10) From an anthropologist’s viewpoint, those
values that inform human behavior are often hidden from view. This is certainly true when we
discuss the influence of national values on our activities. However, corporate cultures are
influenced by founder/leader values and corporate members are socialized into those values.
(Hofstede, 1991, p. 182-183) They are not inherently held They are visible and imbedded in the
corporate language. This may be the key to understanding why communicators, such as the PR
Coalition members, not versed in the findings of interculturalists but working daily in corporate
environments, didn’t adopt intercultural competence as a key requirement to building U.S.
reputation abroad. Most of us don’t see the cultural context created by cultural patterns,
particularly our own, without being made aware of them.
In addition, we all carry beliefs, also hidden from our view, that inform our decision
making and behavior and that have arisen from our personal histories, interpretations of events,
and assumptions. These beliefs can support or detract from our effectiveness in relationships and
in meeting personal and professional objectives. Enter the field of coaching.
134
What is coaching?
You must be the change you wish to see in the world.
- Mahatma Gandhi
First, let’s explore some definitions:
Professional coaching is an ongoing partnership that helps clients produce fulfilling
results in their personal and professional lives. Through the process of coaching, clients
deepen their learning, improve their performance, and enhance their quality of life.
In each meeting, the client chooses the focus of conversation, while the coach listens and
contributes observations and questions. This interaction creates clarity and moves the
client into action. Coaching accelerates the client’s progress by providing greater focus
and awareness of choice. Coaching concentrates on where clients are today and what
they are willing to do to get where they want to be tomorrow.
– International Coaching Federation (iPEC Coaching Training Manual, 2006, p.9)
Coaching is a healthy, positive, and enabling process that develops the capacity of people
to solve today’s business problems. Touching people’s spirits and rekindling what deeply
matters to them is what [coaching] is all about.
– The Heart of Coaching by Thomas G. Crane (iPEC Coaching Training Manual,
2006, p.9)
…coaching is the art of facilitating the unleashing of people’s potential to reach
meaningful, important objectives. (Rosinski, 2003, p.4)
Coaching is not consulting, therapy or mentoring. Although coaches may also, with the
client’s permission, consult or mentor, the key elements of coaching are that the client sets the
agenda and is the expert. The coach’s role is not to fix problems, heal emotional scars, nor deal
with mental illness. Nor is it the purpose of a coach to be a role model and share ones personal or
professional experiences.
Coaches initially create a foundation to co-create a relationship in an environment of
authenticity and trust. In the coaching session coaches ask open-ended questions. They listen,
acknowledge, and validate. They employ creativity to enable the client to think outside of the
box, to reframe an issue, to design a solution, to vision a future reality, and to stretch the client
beyond their comfort zone. They break through limiting beliefs, assumptions and interpretations
by reframing. They may focus on “doing” to achieve results by goal setting, forwarding the
action, clarifying, and establishing accountability. They are cheerleaders, championing,
celebrating and empathizing with the client. They also manage a learning process in which they
may inquire, negotiate, probe, strategize or summarize. Simply put, coaches facilitate a change
process within the client that results in a new way of thinking or perceiving that alters behavior to
achieve desired outcomes in the client’s work and life.
According to Phillippe Rosinski (2007, p. 4-5) the key elements of coaching are:
1. Objectives: Coaching is oriented toward the achievement of results. It’s orientation
is the present and the future.
2. Meaningful, important: Coaching is an authentic process. It is understood that to
gain a coachees’ commitment, objectives must be meaningful to them, deriving from
their core motives and values. Coaching’s purpose is to enable clients to engage in a
135
Christina M. Genest
3.
4.
5.
6.
life of meaning, serving not only clients’ innermost hopes and desires but also
empowering them to pursue activities in service to other stakeholders, such as family,
friends, employees, colleagues, community and society.
Potential: At the heart of coaching is the belief that We are greater than we appear
to be (iPEC Coaching Manual, 2006, p. 45). The coach’s goal is to help people
“discover, develop, and overcome obstacles to realize that potential” (Rosinski, 2007,
p. 4).
Facilitating: Coaching is interactive and promotes growth. The coach facilitates the
ability of coachees to develop solutions, unearth opportunities, and pursue them
through thoughtful, planned and meaningful action.
People: Coaching can involve individuals or teams. As a team the goal is to create
team synergy, to pursue win-win solutions, while working toward each individual
reaching his or her objectives.
Art: Coaching involves creativity on the coach’s part. It takes skill, know-how and
experience. It also takes innovation and intuition. The coaching process relies on
authenticity to build trust and to champion internal transformation and results.
What is the language of coaching?
The specific words used in coaching are Who, What, Why, Where, When, Which, If and
How? These indirect questions:
1. Determine the client’s agenda.
2. Create and hold a space of inquiry by asking empowering questions that: trigger lines
of inquiry, deepen and explore that inquiry, and bring up issues to pursue as new
trigger questions. The objective is to use intuition to gain new insights and learning.
The need is to move the client from head to heart.
3. Support the client in producing results through action by planning and strategizing or
reframing and removing obstacles. Indirect questions are also used to engage inner
motivation and to shift energy; to produce new choices for different results, and to
attain client commitment and accountability. (C. Leo, personal communication,
2006)
Coaching is a process of communicating authentically. The coach creates an environment
of trust and empathy providing the client a context to explore the inner territory of values and
beliefs, both empowering and limiting, and to fully engage the coachee’s commitment to produce
meaningful results. To be successful the process is developmental and transformative, resulting
in new behaviors in order to achieve desired outcomes.
In a corporate setting, the client remains the center of the process and that process is
confidential. If it is discovered that management objectives and the client’s are at odds, then the
coaching process will support the coachee in pursuing objectives that best meet his/her needs,
which may include, leaving the organization.
How does the language of coaching resonate with that of communication?
My first experience with the field of corporate communication was before the term was
coined, and we spoke of being in “pubic relations.” I was an executive of a major community
nonprofit organization and found myself managing a variety of stakeholder relationships.
Colleagues encouraged me to attend our local chapter of the Public Relations Society of America.
136
There I was introduced to the field by Patrick Jackson, APR, a recognized thought leader in the
profession. Patrick spoke of behavioral public relations. The objective of our work was to
change attitudes and opinions in order to change behavior. We wanted our audience to stop
smoking, not drink and drive, make a donation to our organization or cause, vote for us, or buy
our product.
Jackson would further explain that the foundation for effective public relations is the
effective organization. These organizations possess:
•
•
•
•
strong organizational cultures, nurtured by visionary leadership, and a mission
moored to the heart of the organization; and
a mission, a statement of organizational values and belief that engender trust and are
embedded in organizational culture.
These adopted values and beliefs are articulated to all publics by being consistently
manifested in behavior, practices, relationships, and communications. These
organizations speak with ONE CLEAR VOICE.
Earning reputations for credibility and integrity, these corporations enjoy positive
images.
These are the organizations that we trust with our health, our families, and our consumer
needs. These organizations and their spokespeople could persuade us to change our thinking,
beliefs and attitudes and to adopt new behaviors.
Authenticity is at the core of Jackson’s message. These organizations know who they are
and why they are in business. Their mission and purpose speaks to their values and those values
inform their behavior and practices. Therefore, they communicate with ONE CLEAR VOICE
resulting in reputations of credibility and integrity.
I was recently asked to speak to a group of coaches about public relations. I realized that
through my professional life I had to ask the questions Who, What, Why, Where, When, and How
and for Whom not only to write a press release but also to strategize a public relations plan. I had
to be clear who I was representing, what their purpose was, why was that purpose meaningful
and valuable to whom and for whom. I also had to articulate when, where, and how that
purpose would be executed and who would be the beneficiaries. And finally, how that benefit
changed lives. I had to communicate in a manner that not only created understanding, but also
touched the core of who they are to motivate commitment. (Genest, personal communication,
November 16, 2006)
To be successful when representing nonprofit organizations, I had to encourage affiliation
with our organizational purpose. That purpose had to be meaningful to stakeholders. It had to
speak to their values and motivate them to volunteer, give funds, join a committee, become a
member, or participate in a program or activity. In the end, I was in the business of
communication to build community. Not only organizational community but a sustainable
society. This was at its core a transformative and developmental process not only for the
individual but also for the organization and the community it served.
These questions resonated with my audience of life and corporate coaches. This is their
language as well. They are in the business of authenticity, of unearthing values that inform
beliefs and behaviors. Their job is to help their clients find their core ‘voice’, and speak with
ONE CLEAR VOICE, based on their beliefs and values that inform their purpose, and act upon
them to create a meaningful life that not only serves them, but all their life/work relationships.
In 2007, the Arthur W. Page Society, a U.S. based public relations professional
organization, who counts in its membership the corporate leaders in the profession, published a
137
Christina M. Genest
white paper titled “The Authentic Enterprise.”
message.
Patrick Jackson would have applauded its
Business and institutions today are facing a rapidly changing landscape:
• the emergence of a new digital information commons;
• the reality of a global economy; and
• the appearance and empowerment of myriad new stakeholders
….In such an environment, the corporation that wants to establish a distinctive brand and
achieve long-term success must, more than ever before, be grounded in a sure sense of
what defines it – why it exits, what it stands for and what differentiates it in a
marketplace of customers, investors, and workers. Those definitions – call them values,
principles, beliefs, mission, purpose or value proposition – must dictate consistent
behavior and actions.
…In a word, authenticity will be the coin of the realm for successful corporations and for
those who lead them. (p. 6)
Asking who, what, why explores values, beliefs, mission and purpose which are then
adopted in consistent behavior, practices and relationships in response to when, how and for
whom. This is the language of authentic enterprises and the individuals who lead them and
communicate for them. It is also the language of coaching whose purpose is to unleash individual
potential to create authentic lives.
What is the art of coaching across cultures today?
When the practice of coaching is shared across national boundaries, it will be at its best
only to the extent that it is informed by wisdom from the field of intercultural consulting.
As researchers, theorists, and practitioners since 1960, interculturalists have attained indepth awareness of the differences and similarities among the value systems of various
human groups. They have learned how to transmit to others skills that enable people to
interact effectively when they travel abroad to immerse themselves in a different valuesystem (Hallowell, Molloy, Grove, 2003).
Does coaching reflect American patterns, assumptions and values? Yes, said Eric
Kruger, a European, with an expertise in intercultural communication trained to be a coach in the
United States. (E. Kruger, personal communication, August 31, 2007)
Coaching from an American mind-set:
1. Assumes the individual as an agent of change.
2. Emphasizes solving problems and accomplishing results.
3. Is tasks/goal oriented.
4. Is future oriented.
5. Focuses on obstacles that block action.
6. Promotes measurable objectives.
7. Is abundance based.
8. Takes place in an informal interaction.
9. Assumes relative equality.
10. Relies on explicit versus implicit communication. (Genest, personal
communication, January 5, 2006)
138
Dr. Keith E. Webb suggests “coaches from individualist, egalitarian cultural milieus may
be blind to the complex social contexts, obligations, and politics of their client’s situation. Yet,
because of the client’s respect for the coach, they may assume that the coach is aware of all those
things, trust that the coach knows what he or she is doing, and choose a course of action that is
culturally inappropriate” (Webb, 2007).
Coaching, however, does stress empathy versus sympathy, intuitive listening on the part
of the coach and intuitive reflection on the part of the client. The work of the coach and the client
is to build a co-active relationship, built on the client’s agenda and for the purpose of the client’s
empowerment. The practice reflects an open, nonjudgmental stance. When coaches approach
their work with intercultural knowledge and sensitivity, choosing coaching strategies that honor
the client’s cultural context, coaching can have powerful implications in multi-cultural and
intercultural coach/client interactions.
Willa Hallowell, Kathy Molloy and Cornelius Grove, interculturalists and executive
coaches, who now see the exportation of executive coaching as “Made in America” foresee “a
breakthrough in which the wisdom of intercultural consulting is used to contextualize and
enhance current approaches to executive coaching. The outcome is that the values and
expectations of executives abroad are not ignored, but rather are anticipated and welcomed as
legitimate, indeed necessary, contributions to their own coaching process. Only then can we
speak of a genuinely GLOBAL coaching program. Only then will such programs generate lasting
beneficial impact for all coaches and their companies everywhere” (2003). Their professional
consulting firm , Grovewell, LLC, has married the two disciplines creating “Coaching for Global
Advantage SM”
The following depicts their “Coaching Conversation:”
Building the
Relationship
Across
Mindsets
Understanding
the Coachees’
Structure of
Interpretation
Outcomes of CGA Coaching
•
Consistent on-the-job goal attainment
•
More versatile performance repertoire
•
Self-correcting behavior in new environments
•
Enhanced global leadership competencies
•
Better relationships with diverse colleagues
•
Capacity for intentional leadership anywhere
Presenting
Powerful
Distinctions to
the Coachee
Co-Creating
Appropriate
Practices Based
on Standards
The Development Path:
Putting New Practices into
Action
Assessment Based on
Company Standards; Coach
& Stakeholder Feedback to
Coachee
FIGURE 1. Coaching for Global Advantage. Adapted from James Flaherty, Coaching: Evolving
Excellence in Others, 1999 (Grovewell, LLC)
139
Christina M. Genest
Beyond meeting coachee and client identified needs, Grovewell’s goal is to meet the
following objectives for coached leaders working internationally.
Accurate Interpretation of events and behaviors enacted by counterparts in or from
other backgrounds
Cultural Self-Knowledge so that difference can be recognized as precisely “different
from what?”
Confident Adaptability based on knowing how to learn and how to make subtle
behavioral responses
Appropriate Performance so that executives can fine-tune actions to be acceptable to
local stakeholders
Empathic Collegiality leading to trust with colleagues and counterparts across mindsets
and values
Organization Resonance to align the performance of each and all on the company’s
global objectives. (Grovewell, LLC)
The marriage of intercultural communication and the field of coaching is a new
phenomenon. To date only one book has been written on the subject, Coaching Across Cultures:
New Tools for Leveraging National,Corporate & Professional Differences by Phillippe Rosinski.
What concrete practices have evolved from the influences of
intercultural communication and coaching?
Philippe Rosinski’s pioneering work melds theory with practice. He was the first
European to be designated a Master Certified Coach by the International Coaching Federation.
Previously director of Custom Programs for Creative Leadership Europe, he is now principal of
his own firm, Rosinski & Company.
His seminal work introduces the findings of interculturalists to coaching. For their use,
he has created a Cultural Orientations Framework, COF. (See Appendix I). In it, he presents
cultural dimensions in a usable format. He encourages coaches to adopt a “dialectic” versus
“binary” way of thinking. He explains that Western cultures, since Aristotle, have tended to
choose one cultural orientation over another thus discouraging opportunities to discover new
thinking to create new alternatives. He recommends that in using the COF coaches look at
contrasts, “for opposite poles and viewpoints” with the goal of creating “new ideas, solutions, and
options.”
Rosinski makes a critical point. “When describing a culture, however, it is easy to
confuse orientations (What do you prefer?), abilities (What are you capable of?) and behaviors
(What do you do in reality?)” (Rosinski, 2003, p. 58). When coaching it is critical to assess the
influences of orientation and ability on behavior.
Using the deductive/inductive cultural dimension as an example, he recommends
assessing the issues of orientation and ability by asking the following questions.
1. Orientation (What do you prefer?)
Questions:
• Does this individual (or group) prefer to think deductively or inductively?
• What is he (are they) most comfortable with?
140
An orientation is neither good or bad. The individual’s (or group’s) orientation can be
plotted on the continuum for the deductive extreme pole to the inductive extreme pole. It
could be represented by a discrete number from –2 to +2. (p. 59)
Deductive
Inductive
-2
Clear
-1
Mild
0
Neutral
+1
Mild
+2
Clear
FIGURE 2. Orientation (p. 60)
2. Abilities (What are you capable of?)
Questions:
• What is the behavioral flexibility?
• If the individual (or group) prefers inductive thinking, how able is he (are they) to
think deductively?
The behavioral flexibility could be represented by scores for each possible orientation.
The scale could be from –2 to +2. (p. 59)
Excellent
+2
Good
-1
Fair
0
Limited
-1
Poor
-2
FIGURE 3. Ability (p. 60)
Ability
+2
+1
Orientation
0
-2
+1
-1
+2
-1
FIGURE 4. Orientation and
Ability (p. 60)
+2
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Christina M. Genest
3. Behaviors (What do you do in reality?)
Questions:
• What is the actual behavior?
• What appears to be the orientation(s)?
• How does an individual’s orientation translate into his approach to solving a
problem?
…I suggest adding qualitative comments and evidence to describe the styles most often
used and their impact. (p. 61)
As a global executive coach, and a European, Rosinski is familiar with “scorecards”
being adopted in global corporations today. Examples are the U.N. Global Compact, the
Balanced Scorecard, the EFQM Model (European Foundation for Quality Management), SA8000
(Social Accountability) and the ISO14000 (International Organization for Standardization). (p.
213)
These standards may solely examine organizational metrics, may add a societal
component and, in some cases, may adopt global improvement targets. They are responses to
stakeholder concerns and to pressing sustainability issues: ecological, economical, political and
social. In order to meet these standards, corporations must test their internal policies and
procedures and achieve a sophisticated understanding of their behavior and resulting local and
global stakeholder relationships.
In corporate communication parlance these needs relate to corporate culture, employee
and customer relations, public affairs, issues management, media relations, community relations,
corporate social responsibility, and the fundamental work of public relations in bridging corporate
values and goals with community needs and perceptions. Along with executive leadership, it is
the purview of corporate communication to have a deep understanding of corporate mission and
values and articulate these to build common meaning internally and mutually beneficial
relationships externally.
It is the role of global coaching to facilitate a goal-setting process to support individuals
in adopting the global perspective needed for success in this demanding and complex
environment. For global communicators, this personal work should resonate with held
professional values and related objectives.
From a coaching viewpoint a global perspective, refers to what and how questions.
“What are the objectives that could truly indicate that you are achieving global success? How
could you go about determining these objectives?” (p.211). To address the what question
Rosinski has created the Global Scorecard. To address the how question he recommends the
acronym GLOBAL which addresses six goal-setting principles. (p. 211)
The Global Scorecard is a coaching framework to facilitate goal setting. It is designed to
explore two types of objectives: “projected outcomes and drivers of success.’’ “Profit, for
example, can be viewed as the ultimate outcome, and employee satisfaction as an enabler.
Alternatively, profit may be the driver and employee satisfaction the desired outcome” (p.211).
According to Rosinski, The Global Scorecard is ‘global’ in three ways:
1. It seeks to serve a variety of stakeholders, from self to community and world
Life coaching tends to emphasize the self, while executive coaching has as it major focus
the organization. This model offers a global perspective of stakeholders, creating opportunities
for synergistic responses to multiple needs, thus leveraging drivers and outcomes. It presents a
comprehensive methodology that goes beyond other scorecards. It promotes the setting of targets
that encourage high performance and high fulfillment in the service of multiple stakeholders: the
self, family and friends, the organization, the community and the world.
142
2. It seeks integration: internal and external
Returning to cultural orientations, the Global Scorecard navigates internal and external
environments, the being and doing orientations. Fulfillment, happiness, and personal meaning
leverage productivity and visible outcomes and achievements.
3. It seeks to “evoke wholeness and unity” (p. 214)
Rosinski’s ‘global’ describes wholeness and unity on the individual as well as social
levels. Internal and external measures contribute to personal growth and transformation. Talents
and cultural and psychological orientations are leveraged to create alternative perspectives and
solutions resulting in enhanced external performance benefiting multiple stakeholders from
family to the broader society. These new orientations and behaviors then serve social, political,
ecological, economic, scientific and artistic cultures in which differences are not only respected,
but appreciated as opportunities to develop alternative solutions for adding value and creating
mature, sustainable communities. (p. 212-214)
The Global Scorecard
Devising appropriate measures of global success (drivers and outcomes)
Self
Taking great
self- care
Internal measures
Sources of
motivation
Family and
Friends
Organization
Adding value to the
organization’s
stakeholders
Sharing love and
friendship
Community
and World
Improving the
World
External measures
External measures
Life balance
Financial
Ecological
Feelings
Health & Fitness
Customers
Social
Beliefs
Pleasurable/
enriching activities
Employees
Economic
Accomplishments
Internal
processes and
Resources
Political
Partnerships
Scientific &
Artistic
Desires
Values
Psychological
preferences
Preferences
Cultural
orientations
Strengths and
Weaknesses
FIGURE 5. The Global Scorecard (Rosinski, p. 212)
143
Christina M. Genest
Rosinski uses the acronym GLOBAL to represent the principles coaches and coaches
should consider in developing objectives.
G
Genuine: The goals you set have to resonate with your desires so that you genuinely
and passionately want to achieve them.
L
Leverage: To leverage, you have to consider various cultural perspectives and make
the most of them through synthesis (e.g., leveraging economic, social, and ecological
cultures.)
O Outcomes. These outcomes should provide an accurate picture of where you set out
to go.
B
Balance. Achieving balance is your next best tactic when leveraging appears
inaccessible.
A Assessment. The goal-setting process is based on a thorough assessment. Moreover,
once you have determined your indicators of success, you will assess the present
value of these indicators. This will give you a point of reference.
L
Limited. You cannot do it all. Setting priorities and concentrating your efforts
accordingly is a key success factor. Articulating a limited set of objectives will
allow you to focus on and shoot for what really matters. (p. 238-239)
What is coaching’s potential as a leverage for communicating across cultures?
Corporations are being challenged to put corporate values to practice across cultures.
They are responding to the needs of the corporation to be ‘authentic’ as advocated by the Arthur
W. Page Society. To maintain their license to operate, they and the people who represent them
must walk with integrity. To do so they must personify values that engender trust. To achieve
trust, the men and the women of the global corporation must exercise social responsibility. To
behave responsibly, they must acquire cultural intelligence, developing the ability to traverse
cultures: social, political, economic, professional and ecological while articulating the values of
their corporate sponsors. Organizational adaptation across cultures can only occur when global
leaders, managers, and organizational members transform themselves to meet the new global
reality.
Corporate communicators are charged with enabling their organizations to speak with
ONE CLEAR VOICE. Coaches facilitate a process to enable their coaching clients to do the
same. Questions of who, what, why, where, when, for whom, and how relate to purpose, values,
behavior and performance in communication and in coaching. Both endeavors have as their
ultimate goal to build relationships in response to a meaningful purpose.
Today the challenge for individuals and for organizations is to behave authentically and
effectively across layers of culture globally. As coaching develops as a profession it has
significant potential as a lever to enable communicators to improve their personal communication
with themselves and with other stakeholders. The contribution of intercultural communication to
global coaching practice creates opportunities to enhance relationships, to leverage difference into
opportunities for new thinking and new solutions, and to build communities across cultures of
shared meaning and purpose.
144
References
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New York: Author.
Genest, C. M. (2004). Cultures, organizations and philanthropy: The impact of culture on corporate
culture and the practice of corporate philanthropy in a global environment. Unpublished master’s
thesis, Fairleigh Dickinson University, Madison, NJ.
Genest, C. M. (2007, January 5). Coaching between cultures. Presentation conducted at iPEC Coaching
Training, Edison, NJ.
Genest, C.M. (2008, November 16). PR for Coaching Entrepreneurs. Presentation for Northern NJ Master
Mind Coaching Group, Mountain Lakes, NJ.
Grovewell LLC.
Coaching for Global Advantage.
Retrieved October 31, 2007 from
http://www.grovewell.com/CGA-conversation.html.
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professional differences. London, England: Nicholas Brealey Publishing.
Stewart, E. C. and Bennett, M. (1991) American cultural patterns: A cross-cultural perspective.
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Webb, K.E. (2007). Coaching & culture. Creative Results Management. Retrieved October 24, 2007
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Related reading:
Banks, S. P. (1995). Multicultural public relations: A social-interpretative approach. Thousand Oaks, CA:
Sage.
Brake, T., & Sullivan, K. (1992). Doing business internationally: The cross-cultural challenges.
Princeton, NJ: Princeton Training Press.
Catell, T. B. and Moore, K. with Rifkin, G. (2004). The CEO and the monk: One company’s journey to
profit and purpose. Hoboken, NJ: John Wiley & Sons, Inc.
Crane, T.G. (2002). The heart of coaching: Using transformational coaching to create a high-performance
coaching culture. San Diego, CA: FTA Press.
Drobis, D. R., (1998, July). “Borderless believability: Building trust around the globe”. Academy
Monograph. New York: Public Relations Society of America.
Fortgang, L. B. (2004). Now what? 90 days to a new life direction. New York, NY: Penguin Group (USA)
Inc.
Galen, Michele. (2003, March 28). “Global citizenship: A business imperative”. Symposium conducted at a
meeting of the Corporate Communication Institute at Fairleigh Dickinson University.
Genest, C.M. (2005). “Cultures, organizations and philanthropy.” Corporate Communications: An
International Journal, 10 (4), 315-327.
Goodman, M.B. (1998). Corporate communications for executives. Albany, NY: State University of New
York Press.
Goodman, M. B. (2006). Work with anyone anywhere: A guide to global business. Belmont, CA:
Professional Publications, Inc.
Harris, P. R., & Moran, R. T. (1996). Managing cultural differences: Leadership strategies for a new
world of business. Houston, TX: Golf Press.
Hendricks, G. and Ludeman, K. (1997). The corporate mystic. New York, NY: Bantam Books.
Holden, N. J., (2002). Cross-cultural management: A knowledge management perspective. Harlow, Essex:
Pearson Education Limited.
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Christina M. Genest
Morgan, H., Harkins, P, & Goldsmith, M. (2005). The art and practice of leadership coaching. Hoboken,
NJ: John Wiley & Sons, Inc.
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House, Inc.
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CPM Publishing.
146
Appendix I
Cultural Orientations Framework
Categories
Dimensions
Sense of Power
and Responsibility
Control/Harmony/
Humility
Scarce/Plentiful
Time Management
Approaches
Monochronic/
Polychronic
Past/Present/Future
Description
Control: people have a determinant power and responsibility to forge
the life they want.
Harmony: Strive for balance and harmony with nature.
Humility: Accept inevitable natural limitations
Scarce: Time is a scarce resource. Manage it carefully!
Plentiful: Time is abundant. Relax!
Monochronic: Concentrate on one activity and/or relationship at a
time
Polychronic: Concentrate simultaneously on multiple tasks and/or
relationships.
Past: Learn from the past. The present is essentially a continuation or
a repetition of past occurrences.
Present: Focus on the “here and now” and short-term benefits.
Future: Have a bias toward long-term benefits. Promote a farreaching vision.
Being/Doing
Being: Stress living itself and the development of talents and
relationships.
Doing: Focus on accomplishments and visible achievements.
Individualistic/
Collectivistic
Individualistic: Emphasize individual attributes and projects
Collectivistic: Emphasize affiliation with a group
Definitions of
Identity and Purpose
Hierarchy/Equality
Universalist/
Particularist
Organizational
Arrangements
Stability/Change
Competitive/
Collaborative
Hierarchy: Society and organizations must be socially stratified to
function properly.
Equality: People are equals who often happen to play different roles.
Universalist: All cases should be treated in the same universal
manner. Adopt common processes for consistency and
economics of scale.
Particularlist: Emphasize particular circumstances. Favor
decentralization and tailored solutions.
Stability: Value a static and orderly environment. Encourage
efficiency through systematic and disciplined work. Minimize
change and ambiguity, perceived and disruptive.
Change: Value a dynamic and flexible environment. Promote
effectiveness through adaptability and innovation. Avoid routine,
perceived as boring.
Competitive: promote success and progress through competitive
stimulation.
Collaborative: Promote success and progress through mutual
support, sharing of best practices and solidarity
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Christina M. Genest
Categories
Notions of Territory
and Boundaries
Dimensions
Description
Protective/Sharing
Protective: Protect yourself by keeping personal life and feelings
private (mental boundaries), and by minimizing intrusions in
your physical space (physical boundaries).
Sharing: Build closer relationships by sharing our psychological and
physical domains.
High Context/
Low Context
High Context: Rely on implicit communication. Appreciate the
meaning of gestures, posture, voice and context.
Low Context: Rely on explicit communication. Favor clear and
detailed instructions.
Direct/Indirect
Direct: In conflict or with a tough message to deliver, get your point
across clearly at the risk of offending or hurting.
Indirect: In a conflict or with a tough message to deliver, favor
maintaining a cordial relationship at the risk of misunderstanding.
Communication
Patterns
Affective/Neutral
Affective: Display emotions and warmth when communicating.
Establishing and maintaining personal and social connections is
key.
Neutral: Stress conciseness, precision and detachment when
communicating.
Formal/Informal
Formal: Observe strict protocols and rituals.
Informal: Favor familiarity and spontaneity.
Deductive/Inductive
Deductive: Emphasize concepts, theories and general principles.
Then, through logical reasoning, derive practical applications and
solutions.
Inductive: Start with experiences, concrete situations and cases.
Then, using intuition, formulate general models and theories.
Analytical/Systemic
Analytical: Separate a whole into its constituent elements. Dissect a
problem into smaller chunks.
Systemic: Assemble the parts into a cohesive whole. Explore
connections between elements and focus on the whole system.
Modes of Thinking
Cultural Orientations Framework (Rosinski, 2003, p. 54-55)
148
Corporate Greening 2.0:
Five Factors in Play as Executives Zero in on Climate Change
E. Bruce Harrison, APR, Fellow-PRSA
EnviroComm International, USA
[email protected]
This paper explores five factors corporate executives must consider to meet the contemporary challenges of
environmental issues: 1) the war on carbon, 2) a revival of environmental political activism, 3) pressure
from activist investors, 4) green collar executives, 5) corporate communication’s move toward
sustainability.
Green is the comeback kid of American corporate sociopolitical issues. C-suite executives who
thought for a time that dealing with pollution was pretty much under control are now looking at
the deal differently. The many years of deliberate and progressively effective environmental
management at the operations level—call it the era of corporate greening 1.0—now provide the
backdrop for a bigger and broader challenge. Top management must now and in the decades
ahead come to grips with the sociopolitical conditions arising from emphasis on climate change
and carbon emissions. This realization has pushed environment up the ladder of corporate
agendas. More than half of the 2,687 chief executive respondents in a McKinsey survey in 2007
zeroed in on the environment, including climate change, as one of the top three issues grabbing
public and political attention during the next five years. The implication was that top-level
executives worldwide knew that their games were subject to change. They were looking at their
business options in a widely perceived necessity to stop global warming. We are in a period in
the world of business that can be called Corporate Greening 2.0. It involves economic, social
and political factors.
As CEOs and chief communications officers—CCOs—move toward answers within the
specific questions affecting their business, it is useful to review the factors that have made
“green” the comeback kid and, more importantly, will shape conditions for business decisions in
the decade ahead.
Factor 1: Green has enlisted in the war on carbon.
The old-guard green issue, preoccupied with air and water pollution, waste, recycling,
public health and wildlife protection, barged back into the C-suite with new vigor by holding
hands with the issue of climate change. The political and social consensus on global warming has
given rise to the war on carbon, resulting in two major areas of impact on business:
First: operational. Beyond the ongoing accountability for established environmental
matters, companies must get their heads around new linkages of the environment with carbonconnected energy. Power, fuel, products, carbon footprints – a fresh supply of questions is
thereby pushed onto the business strategy table.
Second: economic and financial. Among the multitude of new green-plus-black topics
that apply to virtually every company is risk exposure re-evaluation, moves to bank carbon
credits—cushions against future shocks of emission limits.
Company business communications will need to reflect and reinforce the company’s
social or green accountability in its dialogue with critical stakeholders. CCOs must clearly
149
E. Bruce Harrison
understand that the carbon war has the momentum to keep green issues alive in new contexts,
linked in new ways to essential corporate energy needs, and, at the same time, enlivening some
positive prospects for new technologies, products, processes and markets. Management will
need to stay close to what’s happening in Congress, in the states and in other countries that
impact company strategies. Green activism in the form of politics and public policy are in for the
long term.
Factor 2: Green political activism has been strongly revived.
While corporate executives, including communicators, plan winning moves in the new
green/energy game, they realize that the game has changed in another way. It has brought onto
the political or policy field a refreshed group of players. Like the patient Russian home guard
troops in WWII who waited for the weather to change so they could retake Moscow under
conditions they favored, green activists in 2007 took back Capitol Hill and quickly flexed their
muscles in Washington as well as in key states.
When the Supreme Court subsequently ruled that carbon dioxide could go into the basket
of regulated pollutants, when California rolled up its sleeves to lead the new wave of black-plusgreen controls (a lead that at least 15 states said they will follow), the course was set for
environmental policy making of unprecedented intensity and staying power.
By the time of the 2008 presidential and congressional elections, as in no previous
election period, there was a collaboration of attention on a central environmental issue. Climate
change became an organizing principle in virtually every area of social accountability. Ecoactivism became mainstream. Political hammers began nailing down the future for business and
its green/climate challenges.
Environmental groups, the news media, politicians in and out of office and federal and
state regulatory authorities are now energized and looking to the business community both as part
of the problem and as a substantial part of “the answer to global warming.”
Factor 3: Pressure is mounting from investor activists.
In addition to sociopolitical activists, there are new green socioeconomic activists. Main
stream investors and customers are demanding corporate insights on the potential for global
warming to burn an investment portfolio.
Wall Street, pension fund managers and others invested in corporate well-being have put
their spotlights on companies positioned to capitalize on carbon-war conditions; and they are
probing for vulnerabilities in others, raising questions such as these:
Is the company a winner or a loser as carbon is constrained? Can the company
withstand physical climate change, energy cuts, environmental responsibility, social and
cultural demands? Can this company’s executives beat the competitions’?
Gadflies from the first green wave who stung companies to move on pollution cleanup
are meanwhile reinvigorated by global warming.
As an example, Ceres, the corporate
governance hawk that was born during the time of acid rain and the Valdez oil spill, now
challenges corporate management to disclose climate change risk that investors should factor in.
“It’s no different from litigation risk or hazardous-waste risks or anything else disclosed in
normal financial filings," said a Ceres official, indicating the level of inquiry now on C-suite
desks. Investors filed a record 54 global warming shareholder resolutions with U.S. companies
during the 2008 proxy season—nearly double the number filed two years previous—despite the
fact that the number was held down somewhat by companies agreeing to eco-friendly moves in
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advance of the proxy season. With climate change now rooted, groups such as the Carbon
Disclosure Project, a not-for-profit group with more than 300 institutional investors including
Goldman Sachs and Merrill Lynch (among the several major firms that have set up green
business practices focused on climate change), have pushed companies and their business
partners to reveal carbon footprints in a consistent quantitative way, to enable investors and the
public to evaluate the companies’ sustainability.
Business executives, CEOs and CCOs, must now answer a question posed by a growing
base of old and new stakeholders: What is the exact nature of our new green strategy, now that
climate change is in play? What are the dynamics of Greening 2.0, with its focus on energy and
climate threats, how can we leverage what’s been learned and achieved in managing the large,
common environmental challenges of Greening 1.0?
Factor 4: Green-collar executives can and will make a difference.
Surveys and the media have brought ample evidence of global C-suite awareness of the
challenges. A burst of activism in Washington in 2007 and 2008 established a sociopolitical front
for Corporate Greening 2.0. Across the U.S.—in Sacramento and many other state capitals—
executives, and often chief executives—were engaged in the climate-altered process of public
policy formation. The unusual green collaboration known as the U. S. Climate Action
Partnership put CEOs and green activists into the earliest rounds of congressional negotiations on
energy and climate change legislation. Older line executive conclaves such as the Business
Roundtable, the U.S. Chamber and the National Association of Manufacturers have wrestled with
ways to adapt their business-based focus on public policy to deal with the changing green
dynamics.
While, as McKinsey’s research showed, chief executives have increasingly
incorporated environmental, social, and governance issues into core strategies, many of them are
increasingly involved in climate-change public policy.
What motivates this involvement? McKinsey’s pollsters found a sizable group of
executives personally worried about global warming and presumably motivated to rethink green
policies out of fear. My sense is that for most C-suite executives, the greatest fear is not about
change, climate or otherwise. It’s about uncertainty. That is the motivator that puts corporate
leaders into policy formation, to understand social and political forces, to grasp the prospects of
business accountability, and to negotiate the terms of change. In short, the best outcome will be
one that is effective and achievable.
A significant example of executive acceptance of changed social and political conditions
has occurred in the American auto industry. Long a target of green activism against fossil-fuel
use, company leaders became actively engaged in the federal policy process on climate change
with the benefit of strategic political guidance from the veteran lawmaker John Dingell, Democrat
of Michigan, who came back as chairman of the jurisdictional committee as the result of the 2006
congressional elections. Understanding the realities of politics and markets, sensing the prospect
of customer as well as political support for advancing the required technology, Ford’s top
executives went green-proactive. They agreed to tough future rules on fuel efficiency, assuring
some level of certainty as to what is expected of them, and releasing them now to work with
suppliers, customers, dealers, unions—in short, all the company’s stakeholders—to move toward
compliance. There was a move to mobilize around the idea that policy makers who want autos to
do their part to answer the global-warming challenges will assist business by favoring technology
advancements, tax and trading rules that surround the prospects for clean, green vehicles.
USCAP, led by some of the same companies that wrestled with government policy from
positions of weakness during the early waves of Greening 1.0, started its drive to shape regulatory
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E. Bruce Harrison
expectations by okaying mechanisms like carbon caps. Similarly, before national leaders locked
in on green policies at the United Nations climate conference in December, more than 150 global
companies signed on to a call initiated by England’s Prince Charles for mandatory greenhouse
gas controls. Dozens of industry-specific organizations such as the Edison Electric Institute were
quick to engage in the congressional policy process with positions favoring government action
shaped with them at the table. These and similar moves led by Western, primarily American
corporate executives have led to some sense of common expectations at a time of uncommon
conditions.
To summarize, the green comeback kid is considerably more muscular with energy and
climate change now added to its traditional environment orientation. As McKinsey found, this
newly raging sociopolitical issue has awakened executives not to retreat but to engage.
Especially in North America, where democracy provides a bowl match for this type of policy
game, corporate leaders are in a pragmatic green-collar stance, agreeing to certain mandates to
mitigate the dangers of climate change while working with lawmakers toward achievable,
market-based compliance, reliable long-term carbon price signals, regulatory certainty and
economic safety valves.
Factor 5: Corporate communications move toward sustainability.
Respondents in the McKinsey survey identified environmental concerns as the most
important trend influencing public expectations of business. With stakeholder expectations in the
wheelhouse of corporate communications, this puts CCOs in an important carbon-war role.
Company communication strategies, methods and tools must be tooled to engage with
specific, critical stakeholders to determine exactly what are their concerns and expectations. This
starts with research into make-up and attitudes of specific stakeholder groups, a process necessary
because of the heightened awareness of global warming as an issue of major concern and of the
changes occurring in markets and financial circles. In major large companies, communications
are now being approached with a corporate sustainability mindset.
Corporate sustainability means essentially a workable, synergistic approach in addressing
social expectations while succeeding at the main goal of any enterprise and that is satisfactory
economic or financial performance. The sustainability mindset says that social accountability—
in this case, social impact resulting from climate change putting energy into green contexts—has
taken on full acknowledgement of economic accountability. It acknowledges that companies are
judged first and foremost for their financial performance. In his incisive, pragmatic book on “the
halo effect”, Phil Rosenzweig underscores the fact that good scores (“halos”) chalked up by a
company on social, cultural and other accounts are almost always just an extension of the good
scores on the financial front—profitable products and operations, return on investment and the
like. 1 With sustainability, as I interpret it based on conversations inside companies as well as
studying what experts and major players are saying, social accountability meets the hard road of
economic accountability. Each enables the other, but social good without financial soundness is a
frail foundation for enterprise endurance. This is not to suggest that what we’ve been calling
1
The Halo Effect, by Philip M. Rosenzweig, Simon and Schuster, 2007.
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“corporate social responsibility” is abandoned. 2 In fact, the socioeconomic melding that’s forced
by climate change should mean an elevation of CSR as a substantial C-suite consideration. CCOs
and executive level peers who have found any resistance to bringing up “CSR” as a serious
agenda topic may find it getting more respect when it’s part of the corporate sustainability
agenda. In my view, this can be taken one step farther. I believe it is practical and necessary to
bring politics into the mix for the simple, and simply profound, reason that companies must be set
on the sustainability course as the result of government. If politicians and government officials
did not recognize the necessity for all-out war on carbon, did not declare that carbon dioxide is a
pollutant to be regulated, did not embark aggressively to change current market economic factors
into what I call carbonomics—then C-suite discussions about social good and environmental
protection and energy factors might still be separable. My contention is that the silo days are
done. Greening 1.0—clean it up, manage it, pay the price—is supplanted by a new tripartite
accountability that is social, economic and political: Greening 2.0, driven by climate change and
energy interactions.
This is the sustainable business communications platform that puts chief communications
officers at the C-suite strategy table as well as in the various field positions of identified
stakeholders, ready to address the impact of climate change and to contribute their special
insights, gained from their study of stakeholder instincts and interactions, to the company efforts
in the next levels of corporate greening. I won’t at this point cover the evidence of strategic
moves under way to advance corporate sustainability. These have to do with adjusted
commitments, both economic and social, necessitated by climate change and carbonomics. These
adjustments are bringing about new collaborations, engaging with stakeholders either concerned
about or excited by the initiatives created by climate change and carbonomics, including new
collaborations with environmental organizations. Examples in the U.S. include the remarkable
alliance of environmental leaders, Wall Street financiers, government regulators and corporate
executives to solve the future of the coal-power utility, TXU, in Texas. Internationally, there are
at least a dozen recent economic and social linkups generated by the realities of carbonomics. A
recent example here, announced in May 2008, is the partnership of the giant buyout firm
Kohlberg Kravis Roberts, which owns 46 companies including TXU, with the advocacy group
Environmental Defense. 3 This is aimed at creating measurement tools for environmental
performance in energy efficiency, greenhouse gas emissions and other social issues—in other
words, aiming at future sustainability. There are many more examples, with which I treat in my
book, now at the publisher. Let me just observe now that a great many corporate Web sites
(many now rebranded as “sustainability”), investor relations, executive speeches, interviews at
shows and publications of various kinds are coming into alignment to deliver the company
sustainability pledge, which I would generalize as the following: Our business, adjusted for
climate change, is sustainable. Here is our record, here is our evidence, and this is how we will
move forward with our stakeholders’ interests in mind.
With internal and external evaluators looking at the company through lenses changed by
their perceptions of global warming, communication recalibrations are in order. The chief
communications officer’s role is as always about two things: managing information flow and
managing expectations. Information must get to the right place at the right time. It must be
2
CSR is firmly established as a business function and service practice, backed by scholarly research and
academic studies. This is comprehensively demonstrated in Andrew Crane’s The Oxford Handbook of
Corporate Social Responsibility (Oxford Handbooks in Business & Management), published in April 2008.
3
“Prominent Green Group to Help Buyout Firm,” article by Felicity Barringer and Andrew Ross Sorkin,
New York Times, page C1, May 1, 2008.
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E. Bruce Harrison
transparent and bidirectional. Expectations inside the company and with all stakeholders must be
as close to realistic as possible. Stakeholder approval has to be earned, over and over again,
always starting with what each stakeholder is expected to approve. Senior executives generally
know by now that “PR” can’t fix bad judgment and loose commitments. In the near-term phases
of the war on carbon, the best achievable outcome for corporate communicators—who I consider
to be stewards of stakeholder trust in the company—is to help others in the C-suite rethink green
so when decisions are made the message is true, consistent and understood by the stakeholders.
Greening 2.0—with energy joining and leading environmental factors as the result of climate
change—is the new sociopolitical front. Inside the business organization and along the
company’s external interfaces, strategic business communication will help shape the odds for
success.
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Pioneering Digital Fair Trade:
A New Ethical Brand Licensing Opportunity
Colin Hastings
Majority World CIC, Bangladesh & UK
[email protected]
The concept of Fair Trade has so far been applied mainly to food and handicraft products. Majority World
CIC is the pioneer in applying these principles to photography. Our mission is to help photographers from
the developing world to overcome the many barriers they face competing in the world economy, gaining a
fair share of global markets, and building successful and sustainable businesses.
Our first step has been to establish a unique web based picture library www.majorityworld.com which
specializes solely in selling pictures taken by photographers born in and working in Asia, Africa and Latin
America. Rigorous editing ensures that all stock images meet only the highest international standards of
technical and artistic quality.
Trends in Corporate Social Responsibility
“We aim to achieve the objectives of the European Employment Strategy and, at a global
level, to fight against poverty and for decent employment. These goals are, just to mention a few:
employability, well-being at work, integration of diversity, grass roots work to combat poverty,
the UN millennium goals and social corporate responsibility in the subcontracting chain.” (Spidla,
European Commissioner for Employment, Social Affairs and Equal Opportunities, 2007)
The growth of ethical consumerism, concern about the environment and growing
suspicion about the motives and practices of "big business" flowing from business scandals, have
put increasing pressure on large businesses to demonstrate their corporate social responsibility.
Indeed this has gone further and there is an increasing expectation even that NGO's, charities and
international organisations should do the same.
It is difficult to quantify the growth in the “CSR market”. But the new section of the
website of the Corporate Social Responsibility Forum (http://intranet.csreurope.org/) reveals how
active the sector is. Here are a few extracts to demonstrate this:
- The world’s first Corporate Social responsibility Minister, Steven Timms of the UK
Government, announced that from October 2007, the 2006 Companies Act requires
all directors for the first time to have regard for the interests of their staff, their
suppliers and customers, the community and the environment.
- IBM and the Grameen Foundation have announced a collaborative project to help
microfinance institutions (MFIs) better serve poor communities around the world by
expanding Mifos, Grameen Foundation's open source microfinance software
platform.
- The first ever Corporate Responsibility Week took place in Ireland. Ex Irish
PresidentMary Robinson is acting as a champion of the need for CSR initiatives.
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Trends in the Ehical Consumerism Market
“Ethical consumers play a vital role in the early adoption and development of ethical
products and services, but it will only be through legislation that we will secure the necessary
changes to deliver mass market, low carbon lifestyles.” (Williams, Director of Corporate Affairs
for the Cooperative Group, 2007)
In the UK there is a well established trend towards the growth of ethical consumerism.
The Co-operative Bank (part of the Co-operative Group), is one of the most respected ethical
businesses. Each year they carry out a survey of the ethical business markets. Key findings from
their 2006 survey concluded that ethical consumerism in 2005 was up 11 percent on the previous
year. Over the same period, UK household expenditure increased by only 1,4%.
One other key indicator of the growth of ethical consumerism is the development of the
Fair Trade movement. This is a worldwide movement and provides insights into the growth of
ethical consumerism outside the UK. FLO, the international Fair Trade certification organisation
details the following in its 2006 report:
- In the UK, the estimated fair-trade retail value rose by 48% from 2005 to 2006.
- The number of Fairtrade licensees (companies that sell the final packaged Fairtrade
- products) reached 1954 in 2006, increasing by 29% on 2005.
- In 2006, consumers worldwide bought 1.6 billion Euros worth of Fairtrade certified
products, 42% more than the year before.
- Dr Alex Nicholls, a researcher at the Said Business School at Oxford University
sums up the situation succinctly in a research report: "Consumers clearly like
Fairtrade. Sales of Fairtrade products in Europe, North America, and Japan have
grown exponentially in recent years… global sales of all Fairtrade products amounted
to approximately £500m in 2003 (Vidal, 2004) up from an estimated £335m in 2002
(Leatherhead Food International, 2003) To date, these figures include the initially
small, but rapidly growing, US market. If US market development follows the pattern
of European markets - and there is evidence to believe that it may be moving even
faster - global sales of Fairtrade will increase by a factor of 10-15 in the next few
years.”
Majority World: The Legal Structure
Global marketing, fundraising, advocacy, PR and brand development are services
provided to Majority World photographers at no cost through the London based “Community
Interest Company”, Majority World CIC. The CIC is a new company form created by the UK
government to encourage the development of social enterprises, companies pursuing profit for
social purposes. It is a key requirement of the Majority World concept that there should be
expertise available to developing world photographers to access and benefit from the global
market.
Majority World CIC is co-owned by the Drik Group in Bangladesh, a major innovator
and pioneer in photography and digital services in the region. Its activities will be funded through
donations, membership schemes, grant funding and, most notably, sponsorship and licensing of
the brand. All profits made will be channelled back into supporting and promoting developing
world photographers. This arrangement ensures we meet international and contemporary
standards of quality and creativity, but also ensures that business development will be driven
from, controlled by, and delivered by the developing world, thus challenging Western
assumptions of power and control. It also ensures that the brand is truly owned by and faithful to
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the aspirations of the developing world.
At a later stage, once the CIC generates profits, then some of these too will be channelled
into the social programme. Grant funding and sponsorship for non commercial activities will also
be sought to contribute to achieving the wider social objectives of Majority World which include
the provision of advanced training, provision of high quality digital equipment and opportunities
for travel. As well as benefiting photographers, the maximisation of benefits that can be brought
to target groups in the developing world will also benefit the business. For example, by helping
photographers scan, caption and key word their film archives, more images can then be placed
onto the website.
How the Ethical Brand gives added value to sponsors and licensees
“There was a time when coffee was what you drank for breakfast. Until Fair Trade coffee
came along. There was a time when Nike used child labour to make their trainers until campaign
groups exposed the exploitation. More and more people care about where their products come
from. And more and more organisations are beginning to pay attention to Corporate Social
Responsibility and the commercial and reputational benefits of ethical sourcing.” (Hastings,2006)
Majority World CIC is committed to building a unique ethical brand which clearly
identifies and authenticates creative photographic work carried out by skilled people from the
developing world. Our brand mark
, which has some similarities to a Fair Trade mark or label,
links high quality images with a strong ethical position which ensure that our photographers get a
fair deal both financially and in terms of wider support and promotion, whilst also providing
many opportunities for sponsors and product partners to benefit through the licensing of the
brand.
Over the past three years, the potential of the Majority World brand has been emerging,
attributing it with several unique characteristics. Though further brand definition and
development is undoubtedly required, its added value to sponsors and licensees is already clear.
Key attributes at the strategic level include:
Differentiation
- In an increasingly visually crowded market place
- In an increasingly ethically aware market place
- In a media environment that increasingly puts the spotlight on behaviour of
organisations and institutions
- Association with an artistic and aesthetic product can provide an attractive way to
engage a business audience with the “problems” and opportunities within the
developing world. It will help to ease the communication of social responsibility and
attract the target audiences.
Relevance
- In the rapidly growing ethical sector
- To the increasing demand for corporate social responsibility
Esteem
-
Unique mix of social responsibility, education and art
A new tool for demonstrating Corporate Social Responsibility
Contributing to economic development and job creation in the developing world
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Colin Hastings
-
Visible tool for communicating practical action not words
Stands for the skill, pride, confidence and aspirations of the peoples of the developing
world,
Reduction of carbon footprint by commissioning local photographers not Europeans
or Americans
At the practical level, association with the Majority World brand provides multiple
opportunities for:
Events: exhibitions around the world, brand launches etc. Photographic art as a way of
engaging with issues of development. Great opportunities for engaging with your various key
stakeholder groups
Publications and communications: Featuring the relationship with Majority World,
highlighting the “mark” and telling the story through fine photography by Majority World
photographers
Involvement of staff around the world: raising money for training, equipment and travel,
building personal links with photographers, personally sponsored travel to provide market know
how and other assistance to photographers, secondments to Majority World for development
purposes
PR resulting from the above: acknowledgement in all Majority World communications,
web sites, events etc, unique human stories uncovered by our locally based photographers. The
brand and the related kite mark will be continuously communicated by Majority World CIC in the
UK to European and American markets and by Majority World Ltd in Bangladesh to Asian,
African and Latin American markets.
The brand will be particularly attractive to organisations who want to build relationships
with stakeholders in the developing world or who are committed to stimulating socially
responsible economic development in Africa, Asia and Latin America. Creative and responsible
use of the Majority World brand will be an important tool for enhancing effective corporate
communications and reinforcing the credibility of the company’s intentions. This market place is
also becoming increasingly visually sophisticated, yet at the same time it is suffering from ‘brand
fatigue’ or ‘compassion fatigue’. In a media environment that now puts the spotlight on behaviour
of organisations and institutions to a greater extent than ever before, it is important for product
partners and sponsors to stand out in what has become an ethically aware market place.
Thus, the Majority World brand captures the mood of our times and has genuine global
potential. Further opportunities will be created for marginalised photographers as all profits made
from the licensing of the kite mark will be reinvested in extending market and capacity
development opportunities developing world photographers. In short it provides:
- A visible symbol of commitment to fair trade principles
- A visible symbol of corporate social responsibility
- A visible symbol of ethical credentials and corporate reputation
- A visible symbol of a desire to change perceptions of the majority world
- A visible symbol of carbon footprint reduction through commissioning developing
world photographers
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How the Ethical Brand Gives Added Value and Appeals to Consumers
The consumer base of developing world imagery of course extends far wider than just
developmental organizations and NGO’s. In fact, the Majority World brand will appeal to the
growing number of consumers recognising the value of purchasing products that are sourced and
produced from the developing world itself. The combination of its strong identity and effective
communications will extract a specific rational and emotional response, discriminating Majority
World CIC in the minds of its various stakeholders. It will be available for licensing to selected
product partners and organisations that can benefit from the brand’s added value. Such a unique
mix of social responsibility, education and art provides varied applications, with high potential
for outreach and multiple opportunities for creating recognition. More importantly, it will be a
significant contribution to these organisations’ Corporate Social Responsibility programmes,
providing new tools for such organisations through the use of high quality creative photography
sourced from the developing world and visibly authenticated by the brand and mark. These
products will also serve as an important educational tool to provide a more balanced and
informed view of life in the developing world.
There are many untapped possibilities in the creation of unique products featuring the
work of developing world photographers, both in existing and new markets. These can be paperbased or digital, and their potential is even greater when combined with the branding power of
our kite mark, which serves to authenticate and position the product in the growing ethical
consumer markets. Applications include all forms of paper based and digital communications
products (annual reports, cards, leaflets, posters, calendars, diaries, workplace art, advertising,
press releases CD’s and DVD’s), as well as PR opportunities based round events such as
exhibitions and competitions.
Target customer groups for these products vary, but many will be aimed at picture
editors, corporate communications, marketing and corporate social responsibility roles in travel
businesses, western corporates operating in the developing world, international organisations and
NGO’s, fair trade organisations, media and publishing, advertising, retail co-operative groups,
card publishers and wholesalers, giftware suppliers, ethical retailers, corporate art suppliers and
diaspora organisations.
We see the licensing of the brand to organisations providing them with new tools to
communicate their corporate social responsibility. James Morrison, Brand Identity Manager of
the UK’s Co-operative Group, one of the top ethical brands in the UK, summarized the benefit by
saying “if we could use your photos and your brand in all our relevant products and
communications, it would give us a significant new source of added value”
How the Ethical Brand Helps Developing World Photographers
“By invoking ethical standards in the trading of images, Majority World addresses not
only the distorted and disrespectful depiction of people of the global South, but also the economic
divide.” (Alam, 2007)
The Majority World brand also guarantees fair treatment of photographers in the
following ways:
- Photographers receive international, not local rates for commissions and image sales
which are considerably higher.
- Intellectual property is protected through retention of copyright and non-exclusivity
- The net percentage of image sales received by photographers is at least as good as
average international standards.
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Colin Hastings
-
There will be provision of many other ‘value added services’, for example market
information, technical advice, feedback on submissions, global marketing and
advocacy and website advice provided without charge to the photographers
The brand guarantees the authenticity of the photographers’ work and affords them the
opportunity to tell their own stories through their own eyes. By giving more visibility to the
emerging wealth of real photographic talent in the majority world, those who ultimately use and
view their images will be exposed to a unique and fresh reality. Numerous obstacles exist which
make it difficult for developing world photographers to have a chance to tell their own stories.
Such obstacles include the following:
- Lack of training
- Lack of modern photographic equipment
- Lack of access to high quality scanning equipment to digitise film-based archives
- Language difficulties affect ability to do quality key wording and captioning
- Difficulties faced in accessing global image markets
- Ignorance of market opportunities and trends
- Lack of money to travel to widen image portfolio
It is vital that we are shown a more balanced portrayal of life – one which casts light on
the culture, traditions, society and people in question. The vision of Majority World is to provide
a picture of life that is more positive, balanced, better-informed, accurate and educational – as
told by the peoples of the majority world itself.
“Research proves that British people are not only ready for information more complex
than the usual images of doom and disaster - but also that they will resent both development
agencies and the media if we don't promote a more balanced world view.” (Goldring, Chief
Executive of VSO, 2002)
Developing world photographers are at a clear advantage over their western counterparts
where cultural understanding is concerned. Knowing the local people and speaking the language,
they have an innate understanding of local context. To put this in its opposing context,
predominantly white, European & American photographers commonly visit majority world
countries on rushed assignments and even the best intentioned amongst them are unlikely to have
an in depth understanding of their subject matter. The results of these assignments raise powerful
ethical questions for arguably, such images are sourced by photographers who are up against a
multitude of barriers: time constraints, lack of cultural understanding and local knowledge to
name but a few. The result is often a one sided and frequently negative view of the developing
world, one which distorts the reality of life in those countries.
WEBSITES:
www.majorityworld.org
www.majorityworld.com
References
Alam, S (2007), “The Majority World looks back”, New Internationalist August 2007. p.2
Goldring, M (2002), “The Live Aid Legacy”, VSO Press Release January 2002
Hastings,C. (2006), “Selling the ethical dimension”, Montage November 2006, p.1
Spidla,V. (2007), “European MarketPlace on Corporate Social Responsibility, Opening Speech”, pp.1-2
Vidal, J. (2004), “Fair Trade sales hit £100m a year”, Guardian 28 February 2004
Williams, S. (2007), “Ethical Consumerism Report 2007”
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The National Football League Goes Flat:
American Football’s Oct. 28 Experiment in London
Wesley R. Heinel
Department of Athletics, Fairleigh Dickinson University, USA
[email protected] or [email protected]
On Oct. 28, 2007, the National Football League – a multi-billion dollar entity – invaded London, England,
as the New York Giants played the Miami Dolphins. The contest marked the first regular-season game
played outside of North America. Historic Wembley Stadium served as the venue. With the National
Basketball Association’s emergence on the global level, second-year NFL Commissioner Roger Goodell
pulled the trigger to sell the United States of America’s style of football worldwide. The first shot was
London’s notoriously passionate fan base, and the league succeeded in putting on a show. Of the 22
possible global perspective areas addressed by Corporate Communication International’s “Call for
Papers,” this paper attacks two elements: “image, identity, and reputation management,” as well as
“integrated advertising and marketing.” I will provide thorough analysis of the NFL’s project,
encompassing three areas – events prior to the contest, the game itself, and byproducts of the event
(including hindsight). The paper explores issues that allowed the NFL to bring its sport to a global
platform: The NFL is a brand leader; NFL as a member of the “Tough Guy, Macho Tribe.”; marketing the
event, and the sport, to another culture; Cultural dissonance in marketing; predisposed attitudes and
beliefs exhibited by another culture;how the NFL effectively combats those predisposed attitudes and
beliefs; an overview of the NFL’s two previous failed attempts in Europe; initial push of going global; the
action on game day and performance by the teams; future plans for the NFL globally; recommendations
for future NFL strategy.
The NFL's Oct. 28 game in London, England proved one of global proportion, not limited
to just the United States or the host nation of the contest. The competition marked a test ground
for future, strategic NFL enterprises. “Globalization is one of the drivers of growing workforce
diversity in almost every industry, raising critical questions about ways to coordinate people of
markedly different backgrounds to promote organizational and personal goals.” (Eisenberg &
Riley, 2001) The realm of professional athletics, particularly the US' most popular sport,
football, proves no different than that of the business world.
Basketball’s popularity has been sustained as an Olympic sport, but American football
has yet to establish itself. Despite failed organizations such as NFL Europe and the also departed
World League of American Football (WLAF) – which broke through for two seasons in 1991,
then again in 1995 – the NFL continues its effort to integrate itself globally.
However, soccer stands as the world’s most popular sport, in addition to rugby (shared
principles of football, but without extensive equipment). Despite the NFL’s well-marketed
strategic plan to gain popularity for the sport and the league, the Oct. 28 contest gained a
marginal amount of fans.
“Basketball thrives internationally, because it does not require much equipment and does
not directly compete with already entrenched, similar sports. … Football, on the other hand,
requires a tremendous amount of equipment, special facilities, and isn't much fun for the
schmucks (I speak from experience) who block and tackle. Europe already has football – a type
that allows everyone to play, that requires everyone to run and get fit rather than pork up.”
(Barlow, 2007)
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Wesley R. Heinel
The focus of this paper is the age-old question, “How to sell another culture on something
new?” With obvious negative predisposed attitudes and beliefs, the NFL faced an uphill battle
with its endeavor.
The NFL as a Brand Leader
With the Canadian Football League representing the NFL’s primary competition, the
NFL is defined as a “brand leader.” According to Goodman, there are six characteristics of a
brand leader:
1. It owns or defines the product.
2. It’s the largest.
3. Its quality is the best.
4. It has the greatest longevity.
5. It has the greatest range.
6. It has the highest profile.
“We’ve come a long way since we started bringing our game overseas,” Goodell said
while addressing the media in London before the game. “While we are the No. 1 sport in the
U.S., our future success will depend in large part on our ability to globalize. As the world shrinks,
thanks to emerging technology, we will increasingly become partners with many of you in this
room." (Bloom, 2007)
Since merging with the American Football League in 1970, the NFL embodies all six
brand leader qualities. Goodell’s decision to go abroad was aimed at strengthening the fifth and
sixth characteristics (range and profile).
"The market is not saturated in the UK yet, but it will be at some point in time," said
Alistair Kirkwood, managing director of NFL UK, a creation of the league with a London office
and 14-person staff. (Kelso, 2007)
Added Goodell, "We are doing incredibly well by every consideration, but if in the next
20 years you want to grow the support base from 400 million to four billion, you're going to have
to sacrifice, take some short-term hits and gamble. This is a major statement and a major
commitment.” (Bloom, 2007)
Defining the NFL
Despite the long-term plan documented, courtesy of Goodell, the NFL is a member of the
“tough guy, macho tribe.” The league “regularly takes high risks and gets quick feedback on
whether their actions are right or wrong.” (Deal & Kennedy, 1982) Some examples are:
1. An extremely high player and coach turnover rate.
2. Short careers due to injury.
3. Goodell’s recently established Player Code of Conduct.
4. Fan sentiment and media portrayal.
The NFL desires to protect its system, placing football legends/heroes in high regard.
Every few years, the “poster children” of the NFL change. Today, it is Indianapolis Colts
quarterback Peyton Manning and San Diego Chargers running back LaDanian Tomlinson. Five
years ago, it was Philadelphia Eagles quarterback Donovan McNabb and Kansas City Chiefs
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running back Priest Holmes. Ten years ago, it was Denver Broncos quarterback John Elway and
Dallas Cowboys running back Emmitt Smith.
Within the five elements of culture, the top area of NFL notoriety is heroes, as they
“personify the culture’s values and provide tangible role models for employees to follow …
Smart companies take a direct hand in choosing people to play these heroic roles, knowing full
well that others try to emulate their behavior. Strong culture companies have many heroes.”
(Deal & Kennedy, 1982)
Where else can the average individual purchase the work attire of professionals besides
professional sports? According to the Associated Press, the NFL sells between three and four
million jerseys per season.
The final link to the “tough guy, macho tribe” is that the financial stakes are high. The
rewards may come early, but “the intense pressure and frenetic pace of the culture often burns
people out before they reach middle age. The all or nothing of this environment encourages the
value of risk taking.” (Deal & Kennedy, 1982)
The NFL has enjoyed immense commercial success in recent years, generating close to
$7 billion annually. The value of television contracts in the US over the next eight years is
almost $18 billion. American networks annually pay the NFL $3.75 billion in rights fees.
"Sports is truly a branded consumer product of the utmost value," Texas Rangers, Dallas
Stars and a co-owner of Liverpool’s Premiership ‘football club’ Tom Hicks said in an interview
with the Manchester Guardian. "It's a unique media, and in the US, we have seen media
revenues grow dramatically with the NFL. It's a big business.” (Bloom, 2007)
The NFL is an entity that generates approximately $7 billion in annual income. Yet
according to a 2005 Associated Press report, just one percent of that revenue comes from its
overseas operations. The Oct. 28 contest represented an aggressive effort to export that success
overseas.
Marketing
Corporations, as well as the NFL, have two commonalities: money and a mission. People
depend on corporations for meaning, while NFL fans rely on teams for entertainment, city pride
and social responsibility. Owners dole out more than a quarter billion dollars to acquire a
professional football franchise then build multi-million dollar stadiums that create jobs. The
majority of teams desire to win, but all seek to turn a profit.
When marketing the game, the league pitched the fact that it was a regular-season
contest, whereas in previous years, London had only witnessed preseason action. More so, two
other principles were marketed: the “ideological dream” and an opportunity to “be something.”
(Goodman, 2006) The “ideological dream” enables a customer to belong – an invitation to join
the community of NFL fans. “Being something” creates a link to personal identification – a
chance to find something within the game that parallels one’s personality.
Goodell stated, “The NFL is the ultimate reality TV – three hours of unscripted and
unrehearsed moments. 30 million Americans watched the Dallas Cowboys versus the New
England Patriots a couple of weeks ago. It was the most-watched event in the US for the week by
a margin of ten million viewers. Our goal is to translate America’s obsession into the world’s
passion.” (Szczepanik, 2007)
Until Oct. 28, the NFL had only been willing to give other continents exhibition football.
The league has played international preseason games in North America, Asia and Europe going
back to 1976. Two years ago the San Francisco 49ers and Arizona Cardinals played before an
NFL-record crowd of 103,467 at Mexico City's Azteca Stadium.
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"This step comes in response to the tremendous and growing interest in the NFL around
the world," Goodell said. "The owners believe that hosting regular-season games outside the
United States is in the best interest of the league and will help to increase the fan base, build
awareness of the NFL and grow the sport worldwide." (NFL.com Press Release, 2007)
Team owners, presidents, general managers and head coaches are expected to exhibit the
principle of Level Five Leadership: a paradoxical mix of personal humility and professional will.
While the NFL’s upper brass accomplished such cohesion well, the Giants struggled with this
ideal and the Dolphins embraced the situation.
"From an ownership standpoint, we all realize that as popular as the NFL is, the globe
really is shrinking," Dolphins team president and chief operating officer Brian Wiedmeier said.
"Just look at a franchise like Manchester United in soccer – they’re big all over the world. The
technology is there to do this and the corporate sponsorship community is looking at things more
globally." (Chadiha, 2007)
“Good management rituals provide collective cohesion and solidarity, all the while
conveying a solid image to the outside.” (Deal & Kennedy, 1982) There was plausible
incongruence between management of the two competing franchises – both part of the NFL
family.
New York Giants president John Mara portrayed the image that he was neutral on the
event saying, "Giving up a home game was a big concern for me. Seeing our best product
[overseas] gives me confidence that this is a viable strategy, but the real test for us will be how
people respond once the league has held its third or fourth regular-season game over there. Will
the fans stay passionate, or will they lose interest?" (Chadiha, 2007)
Conversely, Wiedmeier exhibited the principle of Level 5 Leadership. "In a perfect
world nobody would have to give up a home game," Wiedmeier responded. "But the league has
made the commitment to this and we feel like it's an honor to be part of it. Plus, the league has
done a good job of trying to keep the schedule as normal as possible for the players and the
coaches." (Chadiha, 2007)
Cultural Dissonance
When league officials announced on January 16, 2007 the plan to play its first European
regular-season game in London, Goodell said, “We have a great history of NFL football in
London – the British fans have been great fans of NFL football for several years and London is a
tremendous international city. We have a great relationship with the City of London and that was
another important factor.” (NFL.com Press Release, 2007)
The NFL and the city of London united to promote the game. However, some of the
NFL’s marketing schemes were a bit too sensationalized and overbearing. For instance, a 26-foot
robot of Dolphins defensive lineman Jason Taylor, nicknamed "Big JT," was unveiled Monday,
Oct. 22 in London's Trafalgar Square. Engineering took just under ten weeks to construct, with a
team of more than 40 people working around the clock to build the superstructure.
Trafalgar Square is an area in London, commemorating the Battle of Trafalgar (1805), a
British naval victory of the Napoleonic Wars. The Square remains renowned as a symbolic social
and political location for visitors and Londoners.
The area is home to Nelson's Column, fountains, bronze lions, and a statue of a British
Fleet commander. On the north side of the square is the National Gallery where two statues,
James II to the west of the portico entrance and George Washington to the east, stand.
Washington’s statue was a gift from the state of Virginia and stands on soil imported from the
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United States – an action done to honor Washington's declaration that he would never again set
foot on British soil.
The NFL coming to England is an attempt to share a part of US culture. Since The
Square serves as a shared location for visitors and Londoners, it seemed fitting at first glance.
Yet, the robot overshadowed the surrounding historical landmarks and somewhat claimed an area
of British pride as a platform for the US to glamorize its most popular sport.
"The game on Oct. 28 is a world first,” Kirkwood said. “It will be the first time that a
competitive NFL game is being played outside of North America. So it seems only fitting that we
create something that reflects the scale of this event – and it doesn't come much bigger than a 26foot tall American Football player!” (NFLLondon2007.com Press Release 2007)
Predisposed Negative Attitudes
“Will people around the world really want to become consumers of American sport, the
way that they consume American music, electronics and fast food? Big professional team sports
in the US have been almost perfect examples of American exclusivity.” (Baker, 2007)
The task of altering mindsets about American culture, and sport, was and is daunting.
Cuisine and music only take a few seconds to evaluate; however, a football game takes over three
hours. The complexity of the final two minutes versus the entire first-half is one of numerous
deterrents.
"The thing about the NFL is that it's so specific to the States," said Chris Burdon, a 26year-old business analyst from London. "You guys need your own sports over there. Football
and baseball – it is part of your identity. I don't think it needs to be big over here." (Phillips,
2007)
Burdon’s beliefs reflect one of Dick Martin’s five types of anti-Americanism
personalities. The aforementioned quote “rejects American culture as commercial and appealing
to crude popular taste.” (Martin, 2006) Burdon would be labeled a “cultural elitist.”
Sport brings out an unbridled passion for individuals. The passion for a favorite team has
often parlayed into soccer riots in London. Many refuse to watch a franchise other than their
own, let alone give an entirely new sport an opportunity. Below are five quotes from the British,
in anticipation of the Oct. 28 game:
1. "It just doesn't appeal to me," said Simon Aaronson, a 26-year-old physics teacher. "It
seems like a bunch of men in crash helmets running into each other. However, everything in
America eventually catches on in England – American culture infiltrates British society."
(Phillips, 2007)
According to Martin, Aaronson exhibits “radical” anti-Americanism, as he “rejects
America’s dominant role on the world stage and wants to weaken US influence.” (Martin, 2007)
2. “There is only one sport in the UK and that's soccer," insists Stephen McGowan, a
sportswriter for The Daily Mail. "It's almost the US in reverse. We're so entrenched in our own
sports that we don't want to give anything new a chance in the same way soccer struggles over
there." (Woods, 2007)
3. "I'm not going to spend £50 ($102) to see a cheap imitation of rugby," says Rickell
Samon, a 20-year-old street campaigner for British charity Oxfam. (Thompson, 2007)
4. “I know you are trying to broaden the rest of the world to a sport whose market in the
U.S. has pretty much reached its peak, but seriously, sending it to London isn't going to do that ...
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The only passion Europeans, especially the British, possess when it comes to football involves
kicking a round ball into a net.” (Parker, 2007)
Parker certainly stereotyped an entire continent.
5. "I watch it now and again, but it doesn't appeal to me," said Ronald Brown, an 83-yearold retiree from the printing business. "Some of the tackling they do is so bloody cruel."
(Phillips, 2007)
Unfortunately, the game’s criticism was not only a British concern. Many key
contributors towards NFL publicity also created a negative aura before the event even kicked-off.
The major issue was denigrations that came from many of the NFL’s former heroes, who double
as analysts and employees.
"What if the Giants and Dolphins were undefeated," Hall of Fame quarterback and Fox
NFL analyst Terry Bradshaw asked. "What's the point ... Get a team out here in Los Angeles
before you start taking this stuff over the pond." (Hiestand, 2007)
According to Michael Hiestand, two-time Super Bowl Champion Coach and Fox NFL
analyst Jimmy Johnson said he'd be “a basket case” if he had to coach a regular-season game
overseas. Hall of Fame defensive end and Fox NFL analyst Howie Long called the trip “a major
distraction” for players. Hall of Fame tight end and ESPN NFL analyst Tom Jackson referred to
it as simply “a bad idea.”
The greatest issue is the over-commercialization of American sport. “Purists in Britain
and Europe object to what they see as a sport that is a television-driven spectacle. In an NFL
game you are rarely more than a few minutes from a commercial break.” (Bloom, 2007)
Goodell’s response rubbed some the wrong way, as he denied the game is dictated by
television’s demands. He indicated that the long stoppages where commercials are aired occur at
“natural breaks in the action.” Soccer does not have such breaks, utilizing 45-minute halves.
Goodell said, “If we wanted to make a lot more money from a business standpoint we could take
all our games and put them on pay television, as has happened with many European soccer
competitions, including the Premier League.”
Combating Predisposed Negative Attitudes
The NFL needed to distance itself from the US traditional attitude that people will simply
take to a product when introduced.
"Our vision in this market is to be a top five sport," Kirkwood said. "We want to be
behind football [soccer], rugby, cricket and formula one and within five years become the number
five sport, measured in terms of television audiences and revenue. This game is an accelerator to
help us move very quickly." (Staff Reports, 2007)
Kirkwood’s statement yields to England’s favorite past times. Rather than replace
traditional, British sports, Kirkwood indicated the NFL’s intention to provide an initial
complement and someday compete.
In an Oct. 25 Reuters interview, Kirkwood said, "It's important how we position
ourselves – if you're going outside North America, why not play in London and make a big
statement? We've got quite a long way to go before we're seen as an indiginous sport. We've got
to play a lot more games and start developing international players at a much higher rate than
we've been doing." (Mastrini, 2007)
Prior to the game, the British American Football Association (BAFA) and the NFL made
a joint presentation to the British Parliament's Committee on Sport. They contended the imported
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version of football should no longer be seen as 'American,' and thus should receive the same kind
of financial support that soccer does.
"The sport's had a bit of a roller-coaster ride here," Ken Walters of the BAFA said.
“We've got 7,000 players registered. And we're in a position to manage the demand which the
NFL is trying to create." (Woods, 2007)
In an effort to fight pessimistic ideals about the NFL, the league adopted a three-prong,
media formula. They acknowledged native, British sports and praised the city of London, while
remaining humble about their product. Their alliance with the BAFA illustrates the desire to not
solely sell the NFL, but to nurture its development.
A Former Presence
The NFL founded the WLAF – a developmental league – in 1991. Over a 15-year
timeframe, the league lost millions of dollars. More so, very rarely did NFL teams promote their
'minor league’ talent from the system.
In 1991 and 1992, the London Monarchs played their home games at Wembley Stadium
and won the first World Bowl Championship on their home field. Crowds at Wembley averaged
40,483 for five home games during the 1992 season. Despite the introduction of a new local
rival, the Scottish Claymores, the team’s average attendance ultimately dipped to 16,343 when
the league resumed play in 1995. Attendance figures forced a home venue shift to White Hart
Lane, home of Tottenham Hotspur F.C.
By 1997, the team was re-branded the England Monarchs and traveled the country. They
played home games at the Crystal Palace National Sports Centre, Ashton Gate (home of Bristol
City F.C.), and Alexander Stadium, an athletics stadium in Birmingham. Yet attendance still
plummeted to an average of 5,944. At the end of the 1998 season, the WLAF added a new team,
the Berlin Thunder, to replace the Monarchs.
According to staff reports at the London Logue, "The support just fell away because fans
realized they weren’t seeing the best that was on TV every weekend. Fans had never played the
game so that connection wasn’t as strong, and the teams and players were so transient."
The Monarchs attendance woes are illustrated in Figure 1.
FIGURE 1. Deposed Monarchs
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Soon, NFL Europe, began with eight teams and slimmed down to six teams – five in
Germany and one in Holland. While the teams in London and Scotland folded, the Germans
persevered because they do not play rugby as England, Scotland, Ireland, Wales, France, Italy,
Romania, and Spain do.
“I think we've needed to show our regular-season product at the very highest level to
really make this work, and that's what this is all about," said Mark Waller, the NFL's senior vice
president of sales and marketing. "It's been a matter of refocusing the strategy and reallocating
resources away from the NFL Europe league. Sports fans are very sophisticated; the digital age
has allowed people to see the sport at the highest level." (Bloom, Sports Business News)
Following two feeble attempts to bring American football to Europe, let alone the dire
facts about surrounding London’s NFL connection, the league persisted in its quest to etch the
sport into British culture.
“The NFL switched the focus of its international business strategy to present the NFL to
the widest possible global audience, including broader media visibility and the staging of
international regular-season games, and will discontinue NFL Europe,” Waller said. “The time is
right to re-focus the NFL's strategy on initiatives with global impact, including worldwide media
coverage of our sport and the staging of live regular-season NFL games.’” (NFL.com Press
Release, 2007)
Going Global
The NFL said more than 500,000 tickets were requested by about 160,000 fans in the
three days following the Feb. 2, 2007 announcement of the match-up. The ticket request process
ended Feb. 18, two months before tickets went on sale. Original ticket projections were noninclusive of ticket allocation for Dolphins and Giants season ticket holders.
Approximately 90,000 people were forecasted to attend, with 40,000 of those seats sold
within the first 90 minutes of tickets becoming available. According to multiple citations, the
South Florida Sun Sentinel’s Sarah Talalay reported 3,500 Dolphins season ticket holders made
the trip.
Depending on the exchange rate, the NFL sold tickets ranging from about $92 to $183 to
Dolphins season ticket holders. The league also arranged travel packages with tickets, but
without airfare, for $1,699 to $3,749. Most Miami fans said they found airfare for between $600
and $800.
The NFL’s second global outlet was, and is, television. "The crucial aspect of this
strategy is the NFL's understanding that it can't win over a global market with an inferior product.
Although most people point to the Super Bowl as evidence of how wildly popular pro football is
internationally, the reality is that most foreign fans watch that event just as American fans do – on
television." (Chadiha, 2007)
Last year’s Super Bowl recorded one the highest ratings ever. For the Oct. 28 game, not
only were fans in the United States and England able to watch the game on television, but the
game was also broadcast in 214 other countries.
"In the UK, interest in American football rocketed after the launch of Channel 4 in 1982,
only the fourth British TV channel, and one of their staples was Sunday night NFL." (Staff
Reports, 2007)
In the UK, SkySports – who is owned by News Corp, who owns Fox (home to nearly
50% of NFL games) – shows two live NFL games back-to-back on Sunday night from 6:00 p.m.
to 12:00 a.m. (primetime), plus highlight packages through the week. Channel 5 shows the US
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Monday Night Football game live, starting around 1:00 a.m. UK time, in addition to highlight
programs.
The Action
Ultimately, the New York Giants posted a 13-10 victory over the Miami Dolphins. The
contest was played before a crowd of 81,179 – in 55-degree temperatures and a driving rain. The
Giants improved to 6-2 at the time, while the Dolphins dropped to 0-8.
"It was a part-experiment, part-educational experience. And to the relief of officials here,
the only fumbles came on the field ... With no defined ‘home’ support it was hardly surprising
that there was an occasional lack of intensity in the bleachers." (Woods, 2007)
Soon after the opening kick-off, the field’s turf was in dismal condition. The wet weather
limited the ability to throw the ball for both teams. Meanwhile, having a winless Miami franchise
represent the remaining 30 NFL squads didn’t shed a positive light on the sport.
"On hand was a pro-NFL crowd eager for the type of electric passing, crafty running and
unrelenting defense that only a few teams are capable of playing. Instead, London got 67
combined net passing yards in the first half. Instead, London got a winning quarterback who
completed 36 percent of his passes. But don't worry ... What transcended the Atlantic this
weekend is that NFL games are fun, if ugly." (Wickersham, 2007)
In reality, most “fans” attended for the spectacle, more than deep knowledge or passion
for the game.
By season’s conclusion, the Giants went on a hot streak, winning three postseason games
on the road, followed by the Super Bowl on a neutral field versus the previously undefeated New
England Patriots. The Dolphins finished the season 1-15, with their lone win coming by virtue of
a surprise, 80-yard touchdown pass in overtime. To a less than avid fan, the NFL’s parity seems
drastic, as the worst team in the league competed with the future Super Bowl champions. In most
football (soccer) or rugby leagues worldwide, this notion is unheard of and reprehensible.
Future Endeavors
The London game marked the first of two overseas games that will take place in each of
the next five seasons, with Germany, Mexico, Canada and China potential hosts. During the
week prior to the 2008 Super Bowl, the NFL confirmed that London, and Wembley Stadium,
would host a contest each of the next three seasons. The San Diego Chargers (11-5 last season)
will face the New Orleans Saints (7-9 last season) on October 26, 2008. Once again, one team
who made the playoffs the previous season will take on a non-playoff team. In the teams’ most
recent meeting during the 2004 campaign, San Diego dominated New Orleans, 43-17.
The Chargers President Dean Spanos was supportive of the league’s decision saying,
“We’re proud to be chosen. This is another positive step in the effort to globalize our great sport.
It’s an opportunity for the NFL to show off two of its marquee teams and some of its best players
as well as a chance for the Chargers to expand our international fan base.” (NFL.com Press
Release, 2008)
San Diego’s impending trek would mark the longest trip in NFL history at 5,500 miles.
Therefore, the Competition Committee informally stated that they would take that into
consideration when creating the 2008 composite schedule. Spanos has requested the team play an
East Coast opponent in Week No. 7, and if granted, would fly to England and spend the entire
week practicing abroad. Both the Giants and Dolphins only spent a handful of days prior to
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action. The Chargers already know they will have a bye following their Week No. 8 contest in
London.
When New York played Miami, the match-up featured a then-mediocre squad versus a
winless one. There were marquee names, such as Taylor and New York’s Michael Strahan, but
no face of the game or heroes in action. The 2008 enterprise features the aforementioned
Tomlinson – the elite running back in the sport. It also showcases New Orleans’ running back
Reggie Bush, the individual the NFL is currently marketing to take over Tomlinson’s star status.
Said Alistair of the 2008 match-up, “In the build up to the Wembley game last October, I
said that it was an audition for future games. Clearly, the fans – with their passion and
enthusiasm – have convinced the NFL that the UK should be rewarded with another game in
2008.” (NFLUK.com Press Release, 2008)
Aside from action in England, the Buffalo Bills petitioned the league and received
approval to play eight home games over the next five years in Toronto, Canada (100 miles north)
– an effort to generate a new fan base and in turn, increase attendance.
Bills’ Team Owner Ralph Wilson, who called the pitch a “regionalization effort,” said,
“It helps expand our market in Buffalo. It gives us a major metropolitan area to expand our
base.” For the Bills’ plan to pass, 24 of the league’s 32 owners must approve. “Of the Bills’
48,000 season-ticket holders, 11 percent come from Canada. As many as 15,000 Canadians
attend home games.” (Higgins, 2007)
In an effort to avoid alienating fans, in both Buffalo and Canada, the Bills created a
registration system – in which over 100,000 fans have already registered. The random drawing
holds the opportunity to purchase tickets for the series of Bills games in Toronto. However,
individual tickets will not be made immediately available.
Season ticket holders will have first crack at single games, before they reach the open
market. Similar to other big businesses, Buffalo’s franchise seems more concerned with
receiving money up front, rather than catering to the unique fan bases it spoke of in its original
petition.
Conclusion
The Oct. 28 game was the proverbial guinea pig for the NFL’s long-term vision.
Unfortunately, the product failed to reach expectations defined by the league’s intense marketing
efforts. The event of a regular-season football game played outside of North America proved
more important than the action on the field. A celebration of the combination of two cultures
provided a sufficient blueprint for the tandem of games expected to take place in each of the next
five years around the globe.
“We should quit trying to save face. If this game's goal was to take the temperature of
European fans, then the NFL supplied a representative sample. What we saw is what the NFL is
like nowadays. There are a lot of mediocre teams ... If you felt sorry for the fans at Wembley
Stadium, then you have to feel sorry for the fans who pack any NFL stadium not named Gillette
or RCA. After all, nothing changed but the venue and the kickoff time." (Wickersham, 2007)
For the contest to hold more importance, the upper echelon NFL franchises need to be
exported. After all, when introducing a sport to a different culture, one desires to put their best
product on display. 60 minutes of game-planning for an unparalleled blend of strength and speed
is what sells, not just the experience of a new venue.
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Wickersham, S. (2007) “Sorry, Brits, but Giants-Dolphins was typical NFL.” ESPN.com. Retrieved 28
October, 2007 from the World Wide Web:
http://sports.espn.go.com/nfl/columns/story?columnist=wickersham_seth&id=3084276
Woods, M. (2007) “NFL Hopes Historic Game Becomes Brits' Cup of Tea.” ESPN.com. Retrieved 20
October, 2007 from the World Wide Web: http://sports.espn.go.com/nfl/news/story?id=3074255
Woods, M. (2007) “London experiment was learning experience for all involved.” ESPN.com. Retrieved
28 October, 2007 from the World Wide Web:
http://sports.espn.go.com/nfl/news/story?id=3084319
Graphics
Monarchs Attendance (Figure 1)
http://online.wsj.com/article/SB119274900567464131.html?mod=hps_us_editors_picks
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Sarbanes-Oxley and its Effect on Markets:
Investor Relations in an Increasingly
Regulated Global Market
Brian D. Higgins
MA in Corporate Communications, Baruch College CUNY, USA
[email protected]
This paper will look into the effects of Sarbanes-Oxley on U.S. Markets as well as its perceived
contribution to the unprecedented decline of the U.S. dollar against other world currencies. Is the
implementation of Sarbanes-Oxley and the subsequent decline of the dollar merely coincidental, or in
direct correlation? How have European and other world markets benefited from increased regulations in
U.S. markets? From the reaction of the public to rampant corporate scandal, to the response of publicly
traded companies to Sarbanes-Oxley (as well as those considering an IPO), this course of events is an
ideal case study as a years long progression to a crisis situation. What will be the result of similar
legislation underway in the European Union and Japan? Regulation in response to the current crisis
regarding the U.S. housing and banking markets has been proposed and will usher in further corporate
requirements. All corporations are now subject to the laws intended to reign in the few unscrupulous ones.
Investor Relations and Government Relations departments must work in concert to help reform past and
shape future legislation. It is imperative for the Investor Relations professional to understand the effect of
public policy on their companies, and how they should respond.
As corporations continue to abuse the public trust, Investor Relations professionals will
have an increasingly difficult and visible role. Corporations today will be held to higher
standards based on the unethical actions of others, and will certainly be held accountable for any
of its own. No matter what investment sector is under public scrutiny at a certain time, if the
scandal is great enough, the entire market will suffer. Times such as these call for carefully
planned and executed investor communications to ensure the financial sustainability of a
corporation.
Investor Relations professionals must be the public steward of the financial bottom line
for a company. Corporate Social Responsibility (CSR) has been stressed and realized by most,
but the environmental and social responsibility of a corporation cannot be fully realized without a
strong financial record. As that record falls under greater scrutiny and regulation, corporate IR
departments must work in close order with their Public and Governmental counterparts. “The
more than 8,000 public companies listed on Wall Street must consider coordinating, if not
proactively merging their IR and PR programs.” (Silver, 2004) With the increased level of
governmental regulation, companies should look to integrate their government relations program
into a comprehensive communications vehicle. As such, it is imperative that Investor Relations
and Governmental Relations employees maintain coordinated and productive relationships.
Just six years ago, the United States signed into law a piece of legislation touted by
President Bush as “the most far reaching reforms of American business practices since the time of
Franklin D. Roosevelt”. Sarbanes-Oxley resulted in sweeping reforms as well as the creation of a
quasi-governmental body funded by publicly traded corporations to oversee these reforms and the
inherent accounting oversights were being met. Now reforms to the financial industry in
response to the mortgage crisis are being considered, with multiple oversight institutions to be
consolidated into one.
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Brian D. Higgins
IR, PR and GR employees must coordinate their information and efforts to inform and
influence consumers, investors, financial media outlets, and elected officials. The lessons learned
from Sarbanes-Oxley, and its hasty drafting and implementation, will play an important role in
communicating the needs of corporations to Congress in order to remain competitive in an
increasingly competitive environment. In a truly global marketplace, where companies and
countries rely on each other in myriac ways, IR professionals must understand not only the
workings of foreign governments but also how local law affects procedure and practice. When
information can be retrieved in seconds and foreign markets can be accessed from a personal
computer, IR professionals must interact with a more informed and savvy investor population.
Using Sarbanes-Oxley as a case study in regulation, IR professionals must adapt to the new role
that governments will have in shaping the course of business.
Incubator of Scandal
The economic boom of the 1990’s brought with it prosperity not known in the United
States since the end of World War II. Internet start up companies with the prospect of incredible
rates of return spurred massive investment in stock markets with nearly all publicly traded
companies reaping the benefits. The “Clinton Super Bull” market, officially recognized to have
started in November of 1994, resulted in a meteoric 8,000 point Dow Jones rise in six years. On
March 29, 1999 the Dow Jones Industrial Average closed above 10,000 points for the first time in
its history. By February of 2000, the bull market was already in decline, and by March of 2001
the Dow closed lower than the previous year’s low for the first time since 1982. A steady decline
in market value and investments led companies to questionable accounting practices to boost and
artificially inflate revenue and stock values. These practices, while temporarily successful,
resulted in the largest corporate scandals in recent memory, hundreds of convictions and an
overwhelming public distrust of corporate America.
The most infamous of the corporate accounting scandals was Enron, a name now
synonymous with corporate malfeasance. While not the first corporate accounting scandal, Enron
exemplified the worst kind of behavior in corporate America. Employing over 22,000 people at
its demise in 2001, Enron rose from a small regional gas company to one of the world’s leading
companies with reported revenues of over $111 Billion in 2000. Alarms went off when CEO
Jeffrey Skilling retired and the company filed for bankruptcy in October of 2001. As details
emerged, the scope of Enron’s dubious accounting practices came to light with partnerships
created to hide losses, manipulation of energy and power markets, and bribery of multiple public
officials. Shortly after details of how Enron was able to defraud investors, scrutiny was shifted to
their accounting firm Arthur Andersen. Arthur Andersen was hired by Enron to act as auditors of
their accounting practices and only a month after Enron declared bankruptcy it was learned that
Arthur Andersen had been shredding documents. This implicated them of at least turning a blind
eye to Enron’s “creative accounting”, if not being an outright accomplice to Enron’s misdeeds.
Arthur Andersen also provided consulting services to Enron, resulting in a conflict of interest as
criticism of any accounting misdeeds could jeopardize lucrative consulting contracts. These
actions led to the demise of one of America’s most revered accounting firms.
Over the coming months many other scandals came to light, embroiling formerly well
respected corporations often regarded as business leaders. WorldCom overstated cash flows by
reporting $3.8 billion in operating expenses as capital expenses and gave CEO Bernard Ebbers
over $400 million in off the book loans to cover margin calls, resulting in a restatement of $7.2
billion and the conviction of at least six executives. Tyco CEO Dennis Kozlowski was indicted
for tax evasion and embezzlement of hundreds of millions of dollars from the company.
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Investor Relations in an Increasingly Regulated Global Market
Peregrine Systems overstated $100 million in sales by improperly recognizing revenue from third
party resellers. Once a leading enterprise software developer, Peregrine’s accounting scandal of
May 2002 led to the criminal indictments of 11 executives. Other scandals included Qwest
Communications, which inflated revenue to the tune of $1.16 billion in sales. Forced to restate
their results from 2000-2002, Qwest found it necessary to sell off their phone directory unit for
$7.05 billion to cover debts. The founding Rigas family of Adelphia Communications collected
$3.1 billion in off balance sheet loans, forcing the company to overstate results by inflating
capital expenses and hiding debt. Three Rigas family members and two executives were indicted
for fraud, and investors sued the entire Rigas family for $1 billion for breach and dereliction of
duty. Global Crossing inflated revenue and also engaged in a massive document shredding
operation to hide their accounting practices. Global Crossing declared Chapter 11, with two
foreign telecommunications companies paying $250 million for a majority interest in the
company when it emerged from bankruptcy.
Implementation of Sarbanes-Oxley
The magnitude of these scandals, among others, was beyond comparison. In an attempt
to maintain the incredible gains of the Internet bubble years, some corporations went to great and
often illegal lengths to show profit. Due to these actions, thousands of jobs were lost, retirement
accounts were ruined and the stock market lost over $500 billion in value. Public outcry was
deafening. The government needed to step in and take charge of the situation and institute
changes to prevent this from happening again. In order to combat these scandals and institute a
level of accountability as yet unknown to public corporations, Congress passed the SarbanesOxley Act on July 30th 2002.
Sponsored by Senator Paul Sarbanes (D MD.) and Representative Michael G. Oxley (R
OH.), the bill was well received. Passing with near unanimous support 99-0 in the Senate and
423-3 in the House the bill was signed into law by President George W. Bush stating that this was
“the most far reaching reforms of American business practices since the time of Franklin D.
Roosevelt.” Comprised of 11 titles that describe the changes required for financial reporting,
Sarbanes-Oxley (known alternately as SarbOx or SOX) makes provisions for nearly every facet
of corporate financial accounting reporting and practices.
2002 was a terrible year for the U.S. Stock Markets, and the signing of Sarbanes-Oxley
could not have been more auspicious. The Dow Jones Industrial Average (DJAI) plummeted
from a high of 10632.40 in March over 3000 points to 7286.27 in October. The NASDAQ lost
almost half its value, dropping from a January high of 2059.38 to just 1114.11 in October.
Sarbanes-Oxley did not result in drastic market improvements, but by January of 2003, both the
DJIA and NASDAQ had regained some of their value, with the DJIA regaining over 1000 points
to 8332.85 and the NASDAQ back to 1335.51 in the same time. With the market making solid
increases after a period of such decline, the primary goal of Sarbanes-Oxley had been achieved;
investor confidence had been increased, if not entirely restored.
Benefits of Sarbanes-Oxley
Looking back at the implementation of Sarbanes-Oxley, one can see immediate benefits.
In the past five years, investor confidence is back and the DJIA has reached previously unknown
heights. When Sarbanes-Oxley was signed, the index stood at just over 7,000 points. Today, it
routinely registers at over 12,000. The increased executive responsibility laid out in Title III and
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Brian D. Higgins
enhanced white-collar crime penalties of Title IX led to a rash of criminal convictions for
corporate executives. In the past 5 years, 214 CEOs, 128 Vice Presidents, 63 CFOs, 23 Corporate
Counsels or Attorneys and 1 celebrity (Martha Stewart) have been convicted of crimes related to
corporate wrongdoings. Crimes included conspiracy to commit securities fraud and securities
fraud, wire fraud, bank fraud, insider trading, making false statements to investigators and
auditors, obstructing justice, fraudulently inflating earnings, falsifying records and bank reports,
destruction of financial records, embezzlement and money laundering. Most of these executives
(75%) pleaded guilty to the charges leveled against them, while the remainder were convicted in
jury trials.
One other large change was the creation of the Public Corporate Accounting Oversight
Board (PCAOB) as dictated in Title I. The PCAOB is a quasi-governmental organization
established to oversee the “Big Four” auditing firms providing services to publicly traded
companies. This board is funded by publicly traded companies and establishes proper practices
for the auditing firms. To paraphrase, they are tasked with auditing the auditors.
Negative Impact
With these benefits have come certain negative ramifications that can be traced back to
the arguably heavy handed implementation of the law. The cost of compliance has been
criticized as prohibitive, especially for smaller companies. Section 404, which requires
management and an external auditor to report the adequacy of a company’s internal control of
financial reporting, has been seen as the most costly and redundant section of the law. This
section has become a focal point for criticism of the law, especially the disparity of compliance
costs between large and small companies. Larger corporations that report revenues exceeding $5
billion annually have average compliance costs totaling .06% of revenues. When compared to
smaller companies with revenues of less than $100 million annually, the cost skyrockets to 2.55%
of revenues.
In addition, since the inception of Sarbanes-Oxley, many companies have chosen to delist
or “go dark” by removing their listings from major exchanges. By doing so, they avoid
compliance with Sarbanes-Oxley, and instead trade their shares on “pink sheets”, an electronic
quotation medium for companies not listed on stock exchanges. Companies can also opt to go
private by buying back their stocks or reducing the total number of shareholders to 300 or less,
the maximum allowed avoid compliance with SOX provisions. A major study by Christian Leuz,
professor of accounting at the University of Chicago’s Graduate School of Business, reported that
370 companies delisted from a major exchange from 2002-2004. This represents 76% of all
companies that delisted from 1998-2004. In 2002, the year Sarbanes-Oxley was enacted, 65
publicly traded companies delisted, while 61 went private. In 2003, 183 public companies
delisted and 79 went private. In 2004, 122 delisted and 66 went private or were bought out by
other companies.
Many foreign companies are choosing to stay away from American markets due to costs
associated with Sarbanes-Oxley. In 2007 alone, 43 foreign companies delisted from the NYSE,
and 20 have left the NASDAQ. The companies that delisted are some of Europe’s major firms,
including Bayer, Fiat, Ducati, British Airways, BASF and Royal Ahold. In a survey by Russel
Reynolds Associates, a global executive search firm, found that 58% of European companies
listed in the U.S. would consider delisting because of costs associated with SOX. Of the 145
leading European companies interviewed, 70% did not want to obtain a U.S. listing because of
SOX. This side effect of Sarbanes-Oxley has resulted in European companies choosing not to
176
invest in American capital markets, and American companies are choosing to list in countries
with fewer regulations. London’s Alternative Investments Market (a major market for small
companies) saw its listings increase by 60% from 2005-2006. In order to prosper, markets need
the influx of cash that IPOs represent and European markets are now drawing more IPOs than
U.S. Markets. In Europe, IPOs increased from 433 in 2004 to 603 in 2005; an increase of 40%
while U.S. market IPOs decreased 15% from 260 in 2004 to 221 in 2005. Britain has been a
significant beneficiary of IPOs, with $9.1 billion in IPOs hitting their market in the 1st quarter of
2006 compared to only $3 billion in the 1st quarter of 2005. By comparison, in the same time
frame, American market IPOs were down from $11.5 billion to $8.6 billion. The decline in IPOs
as a result of Sarbanes-Oxley deprived American markets of a much-needed influx of capital at a
time when it could ill afford otherwise.
In March of 2007, European markets surpassed U.S. market capitalization for the first
time since World War I. With $15.61 trillion in capitalization, the European markets closed a
44.5% lead the U.S. markets held in 2003, and have seen their market capitalization increase
160% in the same time. European shares are also outperforming U.S. shares and the Euro has
increased more than 26% in value since 2003. With the Euro currently valued at $1.60 and the
British Pound valued at $2.00, foreign currencies in general continue to gain against the dollar.
While other factors such as the War against Terrorism in Afghanistan and Iraq (which require
massive amounts of capital), the rising cost of oil and an uncertain job market have contributed to
destabilize American markets, one cannot ignore the chronological coincidence of the
implementation of Sarbanes-Oxley with the devaluation of the U.S. dollar.
Pressure to Ease Restrictions
In May of 2007, under intense pressure from businesses, investors and Congress, the SEC
decided to make it easier for publicly traded companies to comply with Sarbanes-Oxley.
Realizing that complying with the internal audit control function of SOX was costing companies
an average of $3 million dollars annually, some of the restrictions set in place by section 404 will
be eased. It became apparent that as companies became more able to conduct their own internal
audit functions, external auditors were raising their prices. While the costs incurred by
companies to conduct internal audits fell nearly 23 percent from 2005 to 2006, external auditors
were increasing their fees by anywhere from 6 to 12 percent. These costs were felt most by
smaller companies with a market capitalization of $75 million or less. Roughly 60% of these
companies are not currently compliant with SOX due to the costs. With these companies, it costs
an average of $1.14 in audit fees per $100 in revenues compared to larger companies with over $1
billion in market capitalization who pay an average of $.13 per $100 in revenues. SEC Chairman
Christopher Cox has stated that “Investors will benefit from reduced compliance costs” associated
with these revisions.
Smaller companies feel the effects of SOX more, and the costs associated with SOX
often outweigh the benefits of going public. In an ironic turn, it is the smaller companies which
need the additional capital and revenues associated with going public to improve their businesses.
The capital raised by going public is used to increase productivity, increase efficiency, create jobs
and invest in new technologies. Without going public, the growth of new and smaller companies
slows, and with it the American economy. As mentioned before, it is section 404, which instructs
companies to verify the adequacy of their control over internal auditing that is viewed as the most
prohibitive provision of the law. Section 404 has generated the greatest opposition from
corporations both large and small, and has been widely criticized as redundant and directly
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Brian D. Higgins
responsible for increased corporate delisting as well as a reduction in the number of IPOs offered
in American markets. This reduction in fresh capital has caused significant harm not only to
American stock markets, but to employment markets as well.
Corporations, especially smaller ones, would do well to consider grouping resources with
other businesses in petitioning the government. Whether attempting to relax certain provisions of
existing legislation deemed prohibitive or attempting to counsel on pending legislation, a unified
voice will have greater influence. Such voices will be able to continue the progress made with
the SEC to have compliance with some of the more strenuous provisions of Sarbanes-Oxley
eased. This past December, SEC Chairman Christopher Cox announced that the SEC would
reverse course and extend the deadline by a year for smaller companies ($75 million market cap)
to comply with Section 404. This ranks among the most recent easements, as costs and benefits
of implementation are taken under consideration. Cox stated that “The SEC staff is preparing to
gather and analyze real-world data and … seek to indentify trends and provide comparison to the
old (pre-SOX) auditing standard.” House Small Business Committee Chairwoman Nydia
Velazquez (D-NY) strongly supported the delay, stating that “doing so would allow the
commission the time it needs to gather meaningful data before small firms are forced to comply
with the untested revised rules” of Sarbanes-Oxley. The delay received bipartisan support from
the House Committee with equal support coming from its Senate counterpart. While these
actions were welcome by the small business community, they were regarded as not enough
considering the rigors they must endure.
Corporate Action Items
The scandals of the early part of this decade proved the need for corporate accountability
is necessary. While Sarbanes-Oxley addressed issues sorely in need of attention, the past five
years have shown that reform is needed to keep American companies and markets competitive in
today’s global environment. The ease of which companies can list with foreign markets, and
which traders and investors can access those markets have made them an attractive alternative to
American markets once the costs associated with Sarbanes-Oxley are taken into consideration.
Since 2003, the European Union has been working on a similar set of rules and
regulations set to apply to European markets. Closely following US regulations, EuroSox is
currently in a 24-month adoption period. This legislation takes the best provisions from US
legislation while effectively increasing oversight and accountability. While different methods
will be employed in ensuring compliance, the new European legislation will provide a more
standardized system of financial reporting and disclosure. Hopefully for American markets, this
will increase parity with their European counterparts in terms of regulatory compliance costs.
Japan has also introduced legislation to increase internal controls and financial reporting modeled
on U.S. Legislation. Japan’s Financial Instruments and Exchange Law, or J-SOX aims to
improve transparency and accountability for all Japanese listed companies. J-SOX will also
apply to subsidiaries and affiliates, thus requiring them to engage in disclosure practices in line
with parent companies. With EuroSox as well as J-SOX being enacted to increase corporate
transparency and disclosure, it is imperative that Investor Relations professionals understand the
costs, efforts and procedural ramifications each of these laws will have on investor
communications. With these changes, the role of Investor Relations will undoubtedly grow as
they assume the mantle of responsibility for rebuilding the public trust in corporations.
As legislation on transparency and disclosure mature and become standard across all
forms of business, Investor Relations professionals must be the stewards of the financial health of
178
a company. They must engage in honest communications with not only investors, executives and
the board of directors, but also with their peers in Public and Government Relations. They must
communicate the “existing corporate governance policies, as well as any changes to those
policies” (Sawicki & Hilsen, 2004) to help shape the entirety of a corporation’s communications
efforts. Understanding how current and future legislation will affect a company and how to best
communicate these effects on the financial bottom line will fall to the Investor and Government
Relations employees. IR and GR departments must work in concert to help shape future
legislation, freely sharing information and goals. It is the responsibility of IR to present GR with
analyst, shareholder and financial concerns in order to direct a portion of the GR effort to address
these concerns. To meet these challenges, IR and GR employees must maintain a productive and
coordinated relationship that ignores rivalry, marginalizes ego and works for the betterment of the
entire corporation rather than the individual “fiefdoms” so common in corporate life. Defeating
these often entrenched ideas and attitudes will be one of the challenges corporate communicators
face in the near future.
With governmental oversight and regulation of business undergoing a period of greatly
renewed interest, it becomes incumbent upon Investor Relations professionals to maintain clear
and open communications with all of their constituents. Investor Relations must openly and
frequently communicate the concerns of analysts and shareholders to Government Relations as
they in turn petition the government for redress. Weekly or monthly cross-functional meetings
including members of IR, PR and GR would go a long way towards crafting and adopting a
comprehensive communications platform that meets the needs of all corporate stakeholders.
Responsible corporations must excel in their work with legislative and regulatory bodies to enact
fair, competitive and comprehensive reforms that address the needs of investors, corporations and
the communities they serve.
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Employees’ Perceptions of Company Values and Objectives
and Employer-Employee Relationships.
Lida Holtzhausen and Lynnette Fourie
School of Communication Studies
North-West University (Potchefstroom Campus), South Africa
In literature it is often found that companies are encouraged to manage their corporate identities,
especially the visual elements thereof, in order to manage their reputation. In practice one can easily
identify numerous companies spending large amounts of resources on creating modern and unique visual
corporate identities in order to separate themselves from their competition. However, companies often
neglect those corporate identity aspects which are not visible, but ultimately signify the core of the
company. Although a company’s logo, name, architecture etcetera can be valuable assets to the company,
even more important is what the company represents though its values and company objectives, and how
employees experience these values and objectives.
This study aims to explore the possibility to "test" a theoretical model proposed by the primary author in
her PhD-study. The PhD study found a link between employees' perceptions of non-visual corporate
identity elements and employer-employee relationships. Within the framework of the literature that a
symbolic corporate identity goes much further than the logo or company name, the importance of
managing a symbolic corporate identity in establishing relationships between a company and its employees
as well as the importance thereof in a highly competitive environment has been emphasized in the PhDstudy. As this contradicts to a certain extent previous studies that found a strong link between the
successful management of visual corporate identity elements and stakeholder relationships, further
investigating is necessary.
This is an exploratory study employing mainly a literature review of relevant literature, policy documents
of the North-West University and a Culture and Climate survey of the North-West University. Preliminary
deductions indicate that further investigation of the theoretical model is viable and justified. The
deductions in the paper is primarily based on the findings of the Culture and Climate survey and not on
data specifically designed to test the proposed model.
Corporate identity management and stakeholder and/or relationship management is
without a doubt two of the most important fields within corporate communication, both in
academic circles as well as in practice.
There have been a number of studies linking effective corporate identity management to a
good reputation and ultimately good relationships with stakeholders. This has especially been the
case with visual corporate identity elements and external stakeholder relationships (c.f. Grunig,
1993; Ledingham & Bruning, 1998; Grunig & Hon, 1999; Allesandri, 2001). It is therefore not
surprising that companies spend large amounts of resources on creating modern and unique visual
corporate identities in order to separate themselves from their competition.
The visual corporate identity is often over emphasized, even more when companies face
name changes or mergers. Companies thus often neglect those corporate identity aspects which
are not visible (for example company values and objectives), but ultimately signify the core of the
company. Great care is taken to communicate the identity to external stakeholders, but less
emphasis is placed on communicating the corporate identity to employees as internal
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stakeholders. In the case of a merger, it is just as important to communicate the new corporate
identity to the employees as internal stakeholders as to the external stakeholders.
A PhD study by Holtzhausen (2008) found, in contrast to previous studies, that the visual
corporate identity did not impact employer-employee relationships. However, the non visual
elements, especially the company values and objectives did influence employer-employee
relationships. It is against this background that this paper assumes that it is important to
communicate and reflect through behavior company objectives and values, especially when
facing the task to assert a new corporate identity after a merger.
The North-West University (NWU) is an example of an institution that was “forced” by
legislation to merge. It is the product of the merging of the University of the North West
(UNIBO) and the two campuses of the Potchefstroom University for Christian Higher Education
(PU for CHE). This was not a voluntary process and it could be expected to strain employeremployee relationships as well as relationships between the different campuses.
The paper aims to explore to what extent the findings of Holtzhausen’s (2008) study
bears relevance to the case of the North-West University. This will be done by outlining the
theoretical assumptions and describing the formation and structure of NWU’s new corporate
identity as well as a climate study conducted. Actual research findings regarding the relationship
between employees' perceptions of symbolic corporate identity elements and employer-employee
relationships, will not be presented at this time. Rather, this paper serves as a background and
motivation for such a study.
The theoretical model proposed in this paper has its roots in the theory of corporate
identity management as well as relationship management and consequently the relationship
between employees' perceptions of the corporate identity and the perceptions of their relationship
with their employer. The concepts corporate identity management and relationship management
used in the model, will be outlined briefly.
Corporate identity management
For purposes of the current paper, corporate identity is defined as the self-presentation of
a company. It consists in the cues that a company offers about itself via behaviour,
communication, and symbolism, which are its forms of expression (c.f. Van Riel, 1995:32; Van
Riel & Balmer, 1997:342).
One of the mediums through which corporate identity is created is the company’s
behaviour. Just as individuals are judged by their actions, companies can be judged by the way
they behave (operate). This behaviour could, among other thing, refer to the interactions amongst
employees, between employees and management, and between employees and other external
stakeholders.
Companies also express themselves through their communication processes. These
include all intentional messages sent by the company to different stakeholders. The use of
communication allows the company to send more complex messages to different stakeholders
that might not be so successfully conveyed if it were only transmitted through company
behaviour.
The third element, symbolism, plays a crucial role in representing the company and is
often conveyed to stakeholders through the company’s communication activities. Symbolism is
seen as the binding agent that should mesh with the other elements of corporate identity.
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There are many views within the literature as to which elements should be included in the
symbolic corporate identity of a company as well as how these elements should be characterized
(c.f. Olins, 1991; Dowling, 1994; Olins & Selame, 1995; Le Blanc & Nguyen, 1996:48; Gray &
Balmer, 1998; Allessandri, 2001; Wilson, 2001; Melewar & Navalekar, 2002:99; Bezuidenhout
& Van Heerden, 2003:4; Van Heerden & Badenhorst, 2004:18). Although the focus seems to be
more on the visual elements, the literature is not unanimous in the classification of visual and
non-visual elements. For the purpose of this paper the following classification was made:
• Visual symbolic corporate identity elements: These elements are concrete, tangible
and visible to stakeholders. These include, among others, the name; logo; corporate
colours; corporate signs and billboards; environment, architecture and facilities and
vehicles.
• Non-visual symbolic corporate identity elements: These are not visible, concrete or
tangible; and are often described as the stakeholders’ experience of the company.
They include, among others: company values; company objectives and company
structure. A company’s values represent the commitment the company makes
towards its stakeholders as well as the environment in which it operates all aspects of
its business ventures (Melewar & Wooldridge, 2001:327; Körver & Van Ruler,
2003:201).
Objectives are aims a company aspires to in an attempt to keep the company responsible
in all its activities. The company structure is seen as both the company structure referring to the
communication lines and the reporting responsibilities in the company as well as the virtual
structure of the company which is concerned with how the company appears to its stakeholders
(Melewar & Wooldridge, 2001:327; Körver & Van Ruler, 2003:201). Company structure is an
especially important element in this study, because of the post merger structure of the university.
The three campuses function mostly independently each with its own management structure but
reports to the Institutional office of the North-West University.
The nature of employer-employee relationships
Communication researchers (c.f. Grunig & Hon, 1999; Ledingham & Bruning, 2000; Jo,
Hon & Brunner, 2004) have identified several aspects that describe the type of relationships and
the quality (dimensions) of relationships between companies and their stakeholders. These
include trust, control mutuality, commitment and level of relationship satisfaction. These aspects
provide a good framework for assessing relationships.
Two types of relationships that exist between a company and its stakeholders can be
identified, namely exchange and communal relationships (Grunig & Hon, 1999:20).
Exchange relationships are defined in terms of mutuality of interests and rewards
(Ledingham & Bruning, 2000a13). In an exchange relationship parties involved compare the
outcomes of the relationship, defined as the ratio of perceived rewards to perceived costs, with an
outcome they have experienced in the past (Jo, Hon & Brunner, 2004:17). This means one party
gives benefits to the other only because the other has provided benefits in the past or is expected
to do so in the future (Grunig, 2000:1; Hung, 2005:396). In an exchange relationship, a party is
thus willing to give benefits to the other because it expects to receive benefits of comparable
value. In essence, a party that receives benefits incurs an obligation or debt to return the favour
(Clark & Mills, 1993:684; Grunig & Hon, 1999:20).
Communal relationships are where the company spends extra time and effort promoting
the welfare of stakeholders. In other words, both parties engage in altruistic behaviour (Jo, Hon &
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Brunner, 2004:17). Parties are willing to provide benefits to the other because they are genuinely
concerned about the welfare of the other – even when they believe they might not receive
anything in return (Clark & Mills, 1993:685; Grunig & Hon, 1999:21; Paine, 2003:8; Jo, Hon &
Brunner, 2004:17). In these relationships, friendships with mutually beneficial objectives are
often built with extremely high value placed on fairness and justice between all parties involved.
Communal relationships go hand in hand with commitment amongst all involved, projecting a
positive image of the company as an entity that recognizes its social responsibility function
(Goffee & Jones, 2000:143; Grunig, 2000:2; Paine, 2003:8).
Indicators of the quality of relationships
Several research studies have identified an array of dimensions that define the quality of
relationships, some of which overlap. Those most applicable to this study include the following
(c.f. Grunig & Hon, 1999):
Trust basically exists when one party has confidence in an exchange partner’s reliability
and integrity. Huang (2001) explains it as one party’s level of confidence in and willingness to
open oneself up to the other party. Since trust is built on actual experiences of the relational
exchange over time and may be affected by occasional disagreement or conflict between the
parties involved, a lack of trust could also lead to further conflict as well as feelings of
uncertainty.
Trust has several underlying dimensions, namely integrity, dependability and competence
that together describe confidence and a willingness to participate in the relationship (Grunig &
Hon, 1999: Grunig 2000):
• Integrity is the belief that a company is fair and just in how it treats its stakeholders
and whether or not the company misleads its stakeholders.
• Dependability has to do with consistency between verbal statements and behavioural
actions.
• Competence represents the extent to which the company or the parties involved in a
relationship has the ability to do what it says it will do. It includes stakeholders’
confidence in the company’s skills and abilities.
Control mutuality refers to the company and its stakeholders taking each other into
account. The company believes the opinions of its stakeholders to be legitimate, affording its
stakeholders an opportunity to participate in decision-making processes and giving stakeholders
some level of control over situations in the company.
Commitment entails that the parties involved feel that the relationship is worth spending
energy on. Stakeholders are of the opinion that the company is interested in maintaining a longterm relationship with them. They acknowledge the existence of a special bond between the
parties involved, a sense of loyalty from the stakeholders towards the company and stakeholders
wanting to work with the company.
Level of relationship satisfaction incorporates stakeholders being happy with the
company, both parties reaping benefits from the relationship, stakeholders being happy in their
interactions with the company, and feeling important to the company.
In order to determine the relationship between the perception of corporate identity and
employer-employee relationships correlation coefficients were applied to determine the existence
of possible relationships or similarities between variables whereas t-tests and ANOVA’s were
applied in order to determine any existing differences in variable ratings. The statistical
significance level was set at 0.05. With regard to the correlation coefficient correlations (r) ≥0.3
184
are considered to have a medium effect and ≥0.5 are considered to have a large effect (see
Holtzhausen, 2008).
No correlation was found between the visual corporate identity elements and any of the
relationship dimensions.
In contrast, some of the non-visual corporate identity elements impacted the employeremployee relationships. The mere knowledge of company objectives already had a connection
with employer-employee relationships, especially when employees perceived the company to
effectively achieve its objectives that it could contribute to stronger, positive relationships
between themselves and the company. However, not all company objectives correlated with
employer-employee relationships in the company (refer to Figure 1).
FIGURE 1. Relationship between non-visual corporate identity elements and employer-employee
relationships at Lonmin Platinum
Objectives such as accountability, socio-economic empowerment, safe working
environment and a healthy working environment reported the highest correlation with specific
relationship factors, especially with regard to control mutuality – the company listens to me;
commitment – the company wants to maintain a relationship with me; overall relationship
quality; relationship type – communal; relationship trust and relationship satisfaction. It was
found that when it was perceived that the company achieved the afore-mentioned objectives
effectively, employees had more reason to:
• Trust the company.
185
•
•
•
•
•
Feel the company wanted to maintain a relationship with them.
Be more satisfied in their relationship with the company.
Be happier in their overall relationship.
Experience more of a communal relationship.
Feel that the company actually listened to them.
This study produced clear evidence that objectives such as being accountable,
incorporating socio-economic empowerment and establishing a safe and healthy working
environment in the company establish maximum difference with regard to the relationship
between the company and its employees.
The other non-visual symbolic corporate identity elements, unification and family feeling
indicated high correlations with the relationship factors control mutuality – the company listens to
me and overall relationship quality between the company and its employees. Thus when the
employees felt their business units and the company itself owned up to their values of unifying
the work-force and creating a family feeling it had a positive return on employer-employee
relationships in Lonmin Platinum. With regard to company structure, no specific relationships
could be found regarding structure and any of the relationship variables.
This study thus highlighted that symbolic corporate identity goes much further than the
logo or company name, and emphasized the importance of managing non visual symbolic
corporate identity elements in establishing relationships between a company and its employees.
As this study contradicts previous studies by finding no relationship between the visual identity
elements and employee-employer relationships, further investigation is necessary to substantiate
these assumptions.
The Case of the North-West University
Both the Potchefstroom University for Christian Higher Education (PU for CHE) and the
University of the North-West (UNW) that came together to create the NWU had deep roots,
established traditions, different objectives and values which formed their unique corporate
identities. The former PU for CHE was historically committed to Christian values and had a
predominantly white, Afrikaans culture, while the UNW with a Setswana culture was established
to see to the needs of black students from disadvantages rural backgrounds and communities. The
NWU was faced with the problem to amalgamate these very different institutions into one
institution that reflected unity within as well as establish a unifying corporate identity that
incorporates the essence of the new institution, but still allows each of the entities to operate in
their own right. In order to do so, there were three main challenges for developing this unifying
strategy of the NWU:
According to the final report delivered to the Institution’s Council the entire process was
underlined by the Institutional Plan formulating the vision, mission, values (integrity,
commitment, accountability and respect) and strategic objectives of the new NWU. The first step
in the process was identifying the key stakeholders. The primary stakeholders of the institution
were the students (which included prospective, current as well as post graduate students). The
other important stakeholders were identified as staff (they will form the focus stakeholder group
of this research project), alumni, parents, corporate and government (Report to Council, 2007).
Each of these stakeholder groups were identified as having their own distinct reasons for
choosing the university, and although not all are discussed here, those attributes that surround the
staff’s key driving forces were identified as: for employees of the NWU, the desired outcomes
186
through their employment and association with the university included employment benefits, good
working environment, job satisfaction and acknowledgement.
Visual corporate identity
The corporate identity of the university is explained as a hybrid model which is a
combination of a monolithic and well as a flexible endorsed approach. The monolithic entails a
single identity with a descriptive differentiation for “teaching-learning and research” entities (i.e.
institutional office, and operations, campuses, business school, faculties, schools and institutes
and centers etc.). The flexible endorsed incorporates individual offerings, which mean individual
entities have their own unique identity while leveraging the equity of the parent institution in
varying degrees for non-academic (e.g. sports, entertainment, and facilities) social, institutes (e.g.
Alabama, Soccer Institute, Rugby Institute), institutional products and services. This hybrid
model seeks to bring vibrancy and modernity to holistic identity and to also assist to reconcile
consistency (see Figure 2).
Essence
Everything should
ladder up to the
pinnacle
Empowering
Innovative
Making a
difference
Personality
Caring, vibrant, youthful; innovative;
visionary/progressive; driven and
ambitious; recognised; colourful
Integrity, Commitment, Accountability and Respect
Mafikeng
Multinational
student
community (22)
24h library
Setswana
Potch
Active student community
Sports achievements,
winning culture
Afrikaans
High academic standards; widely recognised qualifications; quality teaching-learning & research; careerorientated learning; world-class, multi-lingualism
Values
Vaal
Multicultural
Multilingual
Physical
environment
Safety, security & stability; sense of belonging; unity in
diversity; socially responsible (citizens); vibrant
student life
Functional Benefits
Emotional Benefits
FIGURE 2. Blueprint of the North-West University
187
Each of the campuses also has certain attributes that differentiate them from each other
and as such is used as part of the particular campus' specific traits. The Mafikeng campus is seen
as access to a multinational student community of 22 other countries, 24 hour library services and
study facilities and a rich Setswana culture. The Potchefstroom campus is depicted as an
Afrikaans campus, with an active and vibrant student community and a winning sports culture.
The Vaal Triangle campus is distinguished as a multi-lingual, multi-cultural and a beautiful
natural environment as the campus is situated on the river banks of the Vaal River.
It is against this background that the logo was designed to signify the unity and diversity
of the University. The logo represents links of a chain symbolising unity, while the three colours
of the links represent the three campuses, blue Mafikeng, red Potchefstroom and green the Vaal
Triangle (see Figure 3)
FIGURE 3. Logo of the North-West University
Non visual identity
The character and tone of the NWU was informed by the values and personality traits of
the university. The four do-values as endorsed by Institutional Management, namely Integrity,
Commitment, Accountability and Respect, have been incorporated into the overall strategy to
form the character of the institution. Overall the character of the university is perceived mainly
as: innovative, progressive, vibrant, ambitious and recognized. Being aligned with the
Institutional Plan the university is now known by the essence of being: “empowering, innovative
and making a difference”.
Employees perceptions of the values of the NWU
From a culture and climate survey commissioned by the University regarding perceptions
of the so called do values it can be deducted that not all employees perceive the values the same
(NWU Culture and Climate survey, 2007).
It is clear that all categories of employees (management academic, management support,
academic staff, and support staff) deemed the do-values as important as the aggregate average
scores of the importance of the do-values indicated (integrity: 85.7%; commitment: 86.3%;
accountability: 85.1% and respect:85.0%). In general, management perceived the do-values as
more important as staff and rated all the values above 90% with the exception of academic
management rating accountability at 88.7%. The academic and support staff rated none of the
values above 90%.
The perceptions of the different campuses and the institutional office were much the
same. All the campuses as well as the institutional office rated the do-values as important
(integrity: 85.6%; commitment: 86.2%; accountability: 84.9% and respect: 84.9%). It is
interesting that commitment, which was generally seen as the most important value, but was
perceived by the Mafikeng Campus as the least important (81.0%). Mafikeng regarded respect as
188
the most important value (82.3%) while the Potchefstroom (84.0%) and Vaal Triangle (88.3%)
campuses regard respect as the least important. This could probably be ascribed to the cultural
differences and different traditions of the campuses and is an indication that the endorsement of
the do-values could not be done in completely the same manner on the different campuses.
The institutional office perceived commitment (91.2%) as the most important value.
Despite the differences in perception mentioned, it could be concluded that the do values were
generally seen as being important and also accepted by all the parties concerned.
When the perceptions whether these values are being upheld are investigated a slightly
different picture emerges. The aggregate average scores indicate that only slightly more than half
of the employees believe that do-values are being upheld: integrity (56.2%), commitment
(59.8%); accountability (55.7%) and respect 55.6%). Interestingly enough it was the support staff
that perceived that values as being upheld the most with 60% or more for all the values.
Regarding the different perceptions of the campuses whether the values are being upheld,
the warning lights start to really flicker. The Mafikeng campus consistently perceived that values
are not being upheld (integrity: 42.4%; commitment: 48.6%; accountability: 47.3% and respect
43.1%). It is especially significant that respect, the value deemed most important, is also the value
they feel is the least upheld. This could indicate a lack of trust from the Mafikeng campus and
could impact negatively on relationships.
All categories of staff also perceived the institutional values as important (commitment to
excellence: 85.1%; human dignity 83.8%, justice 82.5%, scholarly engagement, 82.4%; equity
and equality 79.2%, academic freedom 78.2%, tolerance for other viewpoints and behaviours
77.5% and freedom to adhere to a specific belief system 76.6%.). It would thus seem that
commitment to excellence and human dignity were seen as the most important institutional
values. Justice and scholarly engagement were also seen as important values. Generally speaking
academic management deemed the values as more important than the other categories of
employees.
When looking at the perception of whether these values are upheld, tolerance for other
viewpoints and behaviors (53.3%), equity and equality (54.4%) and justice (56.7%) scored low.
Scholarly engagement (64.0%) and commitment to excellence (63.9%) were seen as the values
best upheld.
It would thus seem that while, all deem the do-values important, they are less optimistic
in their view that they are upheld. This perception is especially strong on the Mafikeng campus.
According to our proposed model, this could impact negatively on employer-employee
relationships.
Employer-employee relationships
The NWU culture and climate survey did not research the different relationship
dimensions and can thus not be applied to the above-mentioned theoretical model. However, the
general climate survey could give an indication of employer-employee relationships.
The majority of the employees of the Potchefstroom campus (69.8%), Vaal Triangle
(76.3%) and the institutional office (70.4%) are happy in their jobs. However, only 50.0%
employees of the Mafikeng campus indicated that they were happy in their jobs. Slightly fewer
employees felt that they could fulfill their career potential: (Mafikeng: 53.2%, Potchefstroom
62.6%, Vaal Triangle 71.0% and institutional office: 59.3%).
Relatively low percentages of employees indicated that they were confident in the
institutional management, once again Mafikeng campus (50.2%) had the least confidence
189
followed by the Potchefstroom campus (62.5%). It is interesting that the Vaal Triangle (60.9%)
had more confidence in the institutional office than themselves (68.0%).
Another interesting and relevant indicator was a question on employees’ perceptions of
management’s focus area. Staff performance was ranked last with 55.6%, while brand image and
symbols were ranked as the most important with 65.9%. Furthermore only 61.1% of employees
thought that managers were accountable.
The following cannot be seen as indisputable conclusions, as the questionnaire was not
designed to measure the quality of relationships. However, certain indications can be deducted:
• It would seem that employees perceive their relationship to lean more to an exchange
relationship rather than a mutual relationship when it is considered that the
employees feel that the development of the brand is more important than personnel
performance.
• Integrity is seen as one of the corner stones of trust. As only 56.2% of employees
thought that the value of integrity is being upheld, levels of trust in employeremployee relationships would also probably be low. Having said this, it should also
be kept in mind that competence is also a dimension of trust. In this regard
commitment to excellence was seen as the one institutional value that were upheld
the best (63.9%). Employees thus perceived the Institution as being competent to an
extent.
• It would also seem that, except for employees on the Mafikeng campus, there was a
general level of relationship satisfaction.
• It could thus be concluded that also employer-employee relations on average are not
bad, but there are certain indicators that raises concern. It is against this background
that we feel it is necessary to properly investigate the relationship between employeeemployer relationships and the perception of the institutions’ values and objectives
and employer-employee relationships.
More specifically the research aims would be:
• To determine employees’ perceptions of the NWU’s “do-values”.
• To determine employees’ perceptions of their relationship with their employer.
• To determine the relationship between employers perceptions of the NWU’s values
and their perceptions of employer-employee relationships.
Proposed Research Method
A quantitative survey will be conducted with a stratified quota sample of 200 employees
(c.f. Rubin, Rubin & Piele, 2000; Babbie, 2004). The sample will be stratified according to
demographic variables amongst the three campuses, NWU-Potchefstroom, NWU-Mafikeng and
NWU-Vaal Triangle, academic staff, support staff, job level and gender. Questionnaires will be
translated into Afrikaans, English and Setswana.
The quantitative data will be analyzed using the statistica software package. Statistical
significance will be set at p≤0.05 which is described as a small effect, but nevertheless
statistically significant. When p≤0.01 it constitutes a medium and p≤0.001 a large effect (Cohen,
1988).
In addition to the quantitative questionnaires, semi-structured interviews will be
conducted with employees on representative job levels in the institution.
190
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Credibility Discourse of PR Agencies:
A Cross-Cultural Study of Corporate Ethos on the Web
Maria Isaksson
Department of Communication, Culture and Languages
Norwegian School of Management BI, Norway
[email protected]
Poul Erik Flyvholm Jørgensen
[email protected]
This research examines the credibility discourse posted on the corporate websites of 60 British, Danish and
Norwegian public relations agencies. The purpose was to determine the nature and patterns of the
statements of credibility that PR agencies from different cultures have considered instrumental in
establishing dependable and likeable images of their ethos. More specifically, the study seeks to establish
whether there are distinct cross-cultural preferences in PR credibility discourse. Our assumption was that
British and Scandinavian PR agencies assign similar relative importance to giving assurance of their
expertise, trustworthiness and empathy, thus confirming our overall expectation that corporate credibility
discourse is relatively uniform from a European perspective. However, contrary to our assumptions, the
results of our study show that PR credibility discourse demonstrates certain cross-cultural preferences
within the industry.
Historically, companies have always sought to build trust among members of their
customer base by giving illustrations of their competencies, their dependability and their
inherently benign nature. This has been done across all types of business communication from
sales letters to image advertising, newsletters and annual reports. However, corporations now
have many more active audiences wanting to scrutinize their activities and expecting transparency
and accessibility instead of closed doors. This is the new business reality irrespective of type of
industry or type of customers serviced. In the present research project, we specifically wanted to
study the trust-building credibility discourse of public relations agencies because we expected
them to have the strongest professional awareness of current requirements to corporate
communication. By focusing on the PR industry, we restricted our inquiry to the business-tobusiness segment, acknowledging that other segments may be operating to somewhat different
rhetorical standards.
To satisfy stakeholders’ growing demand for information, corporations must seek out the
media and genres best suited for reaching diverse audiences with messages matching different
needs and requirements. The Web, with its facility for constructing home pages, would seem the
obvious solution to this challenge, allowing each company to universally address its stakeholders
with information about a gamut of different themes. The problem with this open approach is that
it becomes harder to reach individual stakeholder groups with messages written specially for
them; unless, of course, a system of restricted website access is introduced to discriminate
between visitors, which is a strategy often employed in the b-to-b segment.
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Maria Isaaksson and Poul Erik Flyvholm Jørgensen
Concurrently with their adoption of the Web, companies have begun extensively to
display their virtues to groups of stakeholders, especially in broad statements of corporate social
responsibility, thus committing themselves to behaviors, values and future plans that must be
perceived both to be credible and attainable by all stakeholders.
However, business ventures must be careful not to lose sight of what types of information
their customers or clients afford highest priority. It would seem important for companies not to
blur their primary tasks and responsibilities as business ventures by entirely losing themselves in
social commitments, philanthropy and justifications of existence. Clearly, stakeholders will
always want detailed knowledge about products and services, the expertise supporting them, the
immediate reliability and dependability of the company, and its concern with customer service
and satisfaction. Therefore, information on the day-to-day business conduct of corporations and
on their immediate relationships with clients will be as essential to the reputation and trust they
enjoy as will information on their commitment to corporate social responsibility and the world at
large. It is this perspective that guides our analysis of credibility discourse in the public relations
industry.
Purpose and Approach
The primary purpose of the study is to determine the nature and patterns of credibility
discourse by PR agencies seeking to present dependable and likeable images of themselves to
their stakeholders. By mapping the agencies’ rhetorical compositions of credibility, we aim to
establish whether their websites take a one-dimensional approach or use more complex rhetorical
designs in order to attain positive forms of self-representation. To do this, we list the frequency
with which each of the three ethos qualities in our model (see below) are used.
While we think it is only natural for PR agencies to try to carefully explain their
professional expertise, we venture to suggest that obtaining reassurances of the quality of
services, resources and staff is not the main reason for visiting a website. Clients will naturally
expect PR agencies to possess the necessary expertise, just as they would take the presence of
know-how for granted in seeking the services of solicitors or accountancy firms. If expertise is
taken for granted, what other benefits might agencies offer their clients? Thus, we are looking to
determine to what extent PR agencies try to build trust and develop bonds with their clients on the
basis of their own character and commitment to clients. In other words, we are testing the
assumption that PR industry members, as communication professionals, will make multidimensional self-representations and thus go beyond merely claiming expertise in order gain
competitive advantage.
A second purpose of the study is to demonstrate whether credibility in PR discourse
shows cross-cultural consistency within the industry, or whether PR agencies demonstrate
possible cross-cultural preferences in their choice of credibility qualities.
The study was originally based on the assumptions that PR agencies, like other
industries, have moved on to communicate credibility through vision and value statements and
that credibility in European PR discourse would not show strong signs of cultural mores and
preferences. However, in an early assessment of our empirical data from three different countries,
we discovered that vision and value statements are surprisingly rare in corporate PR discourse.
This led us to reconsider the scope of our texts and widen the focus to encompass broader
text segments of PR website discourse. The fact that we now include broader text segments from
a rather more extensive database also caused us to redesign our method, accommodating it to
website discourse. However, we still adhere to the original assumption that credibility discourse
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is relatively uniform from a European perspective and, thus, that UK and Scandinavian PR
agencies assign similar relative importance to professional credibility discourse.
Theory and Model
In an article that offers to articulate what public relations is and ought to be, Cheney and
Christensen (2001) provide a useful map of the contested territory of the discipline. The authors
locate four disciplinary agendas intersecting with public relations: (1) marketing and advertising,
(2) organizational and political communication, (3) rhetorical studies and (4) cultural studies and
broad societal trends. The present study is at a crossroad between three of these disciplines. Thus,
we allocate our object of analysis, i.e. the discourse of PR agencies, to organizational
communication, together with the electronic medium of the Web (2), the concepts of ‘ethos’ or
‘credibility’ to rhetorical studies (3), and the three national cultures and the “home” on the Web
to cultural studies (4) (see also Hoff Clausen 2002: 29).
Our own backgrounds are in the fields of discourse analysis and rhetorical studies, and
consequently we take a text-driven approach to the strategic application of ethos in corporate
communication. On the basis of our past research, we see the Web as a preferred, if not an ideal,
conduit for communicating corporate credibility. Hoff-Clausen (2002: 66) observes that
compared to non-electronic documents, the Web has five ethos variables, namely structure,
functionality and management in addition to content and style. This extends ethos beyond pure
language, and offers us a rich and abundant platform for self-representation. It is this complex
relationship between the attractions of the Web as a medium and the pitfalls of corporate sites as
a genre for communicating credibility (see Hoff-Clausen 2002: 9) that serves as backdrop for our
inquiry. Moreover, we think it necessary to also account for the situational and cultural conditions
and preferences guiding PR professionals if we are to obtain a fuller understanding of credibility
discourse in practice.
While we perceive the notion of credibility to be the kernel of corporate identity and, in
turn, of its extension to reputation, we do not pursue these ramifications here. Only, we note that
companies, organizations and agencies are today ascribed with a personality and an ethos and
want to be perceived as social actors with aims, commitments, beliefs and emotions (Hatch &
Schultz 2004: 3-4). To what extent PR agencies see themselves as social actors or corporate
persons or collectives with social commitments similar to those of large manufacturing
companies or multi-nationals we can only speculate.
However, PR agencies are in the business of producing symbols of, by, and for
organizations and, as Cheney (1992:170) writes, “public relations is fundamentally concerned
with representing major organizations and institutions of our society with values, images,
identities, issue-positions, and so forth”. Therefore, he argues, “it is crucial that we probe the
structure and meaning of that process of representation” (1992: 170); a process to which the PR
industry makes a significant contribution and has immediate insights into. Our present study
extends this claim and focuses on self-representation and self-image.
The Ethos Model
To identify expressions of credibility in different corporate genres, including mission
statements and image advertising, we have designed and used an analytical model of selfrepresentation that we call the Ethos model (see Isaksson & Flyvholm Jørgensen, forthcoming,
Flyvholm Jørgensen & Isaksson, forthcoming). The Greek word ethos means ‘character’, ‘place
of origin’, ‘set of acquired norms’, (‘values’), ‘moral disposition’ and ‘the chosen behavior’
195
(Fogh Kirkeby, 2005: 308-309). The model takes departure in Aristotle’s (1991: 141) tripartite
conceptualization of ethos where the communicator must show common sense (logos), good
character (ethos), and goodwill (pathos) towards his/her audience to be persuasive. Echoing
Aristotle, the Ethos model adopts McCroskey’s (2001) representation of credibility, consisting of
the three basic ethos qualities of expertise, trustworthiness, and empathy (referred to as Perceived
caring by McCroskey).
We have then conceptualized a total of eleven different credibility appeals for
communicating corporate ethos: five credibility appeals of self-promotion expressing expertise,
four credibility appeals of self-characterization expressing trustworthiness and two credibility
appeals of self-sacrifice expressing empathy (Figure 1).
ETHOS QUALITIES
Expertise
Trustworthiness
Empathy
------------------------------------------------------------------------------------------------RHETORICAL
STRATEGIES
CREDIBILITY
APPEALS
Self-promotion
Self-characterization
World
knowledge
Entitlements
Enhancements
Presence/
Resources
Attention
Integrity/
Justice
Abilities/
Attributes
Truthfulness
Self-sacrifice
Courage
Enjoyment
Passion
Knowledge/
Skills
FIGURE 1. Ethos model for analysis of credibility in corporate discourse
The eleven credibility appeals (see Isaksson & Flyvholm Jørgensen, forthcoming for
detailed definitions of the eleven credibility appeals) constitute the operational level of the model,
and in our earlier studies, this operationalization allowed us to determine the strategic content of
passages of discourse with a high degree of precision. In this study, we again use the appeal
forms to allow us to perform detailed analyses, but we only distinguish between expertise,
trustworthiness and empathy, i.e. the top-level ethos qualities of our Ethos model in reporting our
findings to make the results more immediately transparent.
Issues of Data and Method
To capture the presence and nature of credibility in PR discourse, we have analyzed PR
website texts collected from 60 PR agencies in the United Kingdom (20), Denmark (20) and
Norway (20). The data were collected between 2007 and 2008 from corporate communication,
advertising and full-service agencies. In selecting the corpus, we aimed for consistency with
196
respect to content at the expense of consistency with respect to length. This criterion required us
to carefully consider our procedure for obtaining a representative cross-section of data.
The task of developing a workable method to identify representative credibility PR
discourse in an erratic website universe turned out to be more than just technical. It was also
thematic, and one of the basic questions that concerned us was whether some web-texts could be
perceived as more credible than others. For instance, are coherent texts running over an entire
page in fact more credible than smart and snappy slogans? Is an honorable history of an agency
more credible than its current network of customers? Does the existence of a philosophy and core
values make an agency more credible than a demonstration of its awards and achievements? And
do pictures of staff members project a stronger ethos than their job record?
In a pilot study on credibility discourse of Norwegian and Danish PR agencies our texts,
in the form of vision and value statements, were selected on the assumption that they were more
credibility loaded than other PR texts. This also turned out to be the case in that 88% of the
Danish and 80% of the Norwegian sentences of the value and vision texts contained credibility
appeals. However, extending the study to include British vision and value statements revealed
that British PR agencies more or less ignore vision and value statements. Therefore, in the present
study we work on the assumption that every PR text is intended to build credibility, and we thus
include data from the entire text world of each PR agency.
As part of the procedure of selecting and analyzing one-hundred and eighty web pages
from the sixty agencies, we developed a taxonomy of web page headings. The purpose was to
detect whether the types of web pages that we were selecting from the websites, by an essentially
mechanical procedure, followed a particular pattern. We thus established two sets of headings
with one set consisting of ethos headings naturally imbued with ethos qualities (culture;
excellence; philosophy; behavior), and another set incorporating web headings that we would
immediately associate with website architecture (about us; home; welcome) and that would
potentially contain credibility discourse. So, we ended up with two batches of pre-selected
headings reflecting credibility content:
1. Headings immediately reflecting the ethos qualities in the Ethos model
(Table 1).
2. Headings not signaling ethos qualities, but potentially offering credibility
discourse. (Table 1)
In selecting three headings for each of the sixty agencies, we took both a quantitative and
a qualitative approach to the data. The quantitative approach included a strict left-right, top-down
selection procedure where we were “scanning” the websites for items listed in our two predetermined batches of ethos and web headings. This was done in preference to a bottom-up
procedure of sampling strings of text from “beneath” the headings. The data we ended up
analyzing thus constituted “fresh” texts that had not undergone any prior screening. This type of
procedure we found to be effective for selecting large amounts of data.
Through their different rationales, our two batches of headings provide interesting
information on how PR agencies choose to build their ethos. The ethos headings correspond to
what Hoff-Clausen (2002: 40) calls textual ethos, and the web headings to what she refers to as
inter-textual ethos, meaning that expressions of ethos build on several texts, not immediately
signaling a consistent connection. 1
1
Hoff-Clausen’s (2002:40) ethos model developed for corporate website texts encompasses four ethos
perspectives: textual ethos, inter-textual ethos, exemplary ethos and ritual ethos. Textual ethos corresponds
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To determine the ethos qualities of each PR agency’s set of three texts, we took a
qualitative approach where the texts were carefully assessed and coded for the three ethos
qualities of expertise, trustworthiness and empathy. This allowed a maximum credibility score of
3 for each text and, thus, a maximum score of 9 for all three texts from a given PR agency. For
the subsequent quantitative analysis, the detailed codings for the entire corpus of PR texts were
compiled to show the distribution of the ethos qualities, the accumulation of credibility scores,
and the relationship between ethos headings and web headings.
TABLE 1. Examples from list of ethos and website headings
BATCH E (ethos)
BATCH W (website)
Accreditation
About us
Advertising/PR/Design
Agency
Awards
Approach
Behavior
[company name]
Clients
Group
Capabilities
History
Collaboration
Home
Creativity
How we do it
Culture
How we work/operate
Disciplines
Our business
Excellence
Purpose
Experience
Strategy
Expertise
Vision
Location
Welcome
Manifesto
What we believe
Our output
What we do
Partners
What we think
People
Where do we fit
Philosophy
Who we are
Principles
Why choose us
Profile
Why us
Promise
Why work with us
We aimed at consistency and reliability by having both coders separately complete all 60
coding tasks and then compare their respective coding results. Discrepancies in coding were then
resolved by carefully discussing the individual item to reach a consensus on the observed ethos
quality. This cooperative coding procedure affords increased consistency and reliability and, in
our case, produced a uniform result from the data. In negotiating each discrepancy, we were
aiming at a fuller comprehension of each text than we would have obtained by simply recording
and accounting for the ratios of discrepancy between the two coders for each appeal.
to the three ethos qualities in our Ethos model. Hoff-Clausen’s inter-textual-ethos, exemplary ethos and
ritual ethos promote specific credibility criteria, consistency, consequentiality, and identification,
respectively.
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Cross-Cultural Results and Discussion
Our empirical analyses of PR agencies’ websites provide strong confirmation that
industry members’ primary concern is with highlighting their expertise. Across the entire text
corpus, 159 (55%) out of 287 instances of ethos were coded for this particular quality. We again
speculate that this is because the websites are primarily addressing business clients whose
principal interest is perceived to be to assess and compare agencies’ resources, abilities or skills.
Our data show that the agencies are moderately concerned to appear trustworthy, using
somewhere between 20 and 30 percent of their credibility appeals to demonstrate qualities of
trustworthiness such as integrity, justice, truthfulness, courage and passion. Since the industry is a
relatively young one, often depicted as wild, unscrupulous and manipulative, there would seem to
be good reason for offering assurances of impartiality, lawfulness, moral constitution and
sincerity to stakeholders. As copy writers are frequently perceived to be talented young people
guided by their artistic ambitions, and account managers to be occupied with budget matters,
there would seem to be sufficient incentive to demonstrate resolution and commitment and to
pledge enthusiasm.
Perhaps more to our surprise, the notion of empathy is given rather little priority in the
agencies’ descriptions of their competencies. With less than 20% of credibility appeals devoted to
the relationship between agency and client, the client’s fortune, or the joy and contentment clients
will experience from associating with the agency, we can clearly demonstrate that the
interpersonal aspect of relationship-building is not accorded particular significance.
TABLE 2. Distributions of ethos qualities
Countries
Expertise
Trustworthiness
Empathy
Totals
Norwegian
53
(53%)
28
(28%)
19
(19%)
100
(100%)
Danish
56
(52.3%)
31
(29%)
20
(18.7%)
107
(100%)
UK
50
(62.5%)
18
(22.5%)
12
(15%)
80
(100%)
159
77
51
287
Totals
In a cross-cultural perspective, the data show persuasively that Norwegian and Danish
public relations agencies take an almost identical approach to demonstrating their credibility. In
actual numbers, each set of twenty agencies were coded for an almost identical variety of
credibility appeals. Moreover, their combination of the dimensions of expertise, trustworthiness
and empathy was practically the same. So, even if there may be preferential differences in style
and semantics between Norway and Denmark, we obtained a very close match in their rhetorical
choice of ethos qualities. This, however, is perhaps only testimony to the general assumption that
Norwegian and Danish values, attitudes and behaviors are closely linked and will be naturally
reflected in corporate discourse.
If we now make the same comparison between the two Scandinavian countries and
Britain, we obtain a somewhat different picture. The first thing we note is that, collectively, the
UK agencies have a less balanced distribution of ethos qualities. This does not mean that they
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speak less of their ethos, only that they do not exploit the three ethos qualities with the same
frequency across the selected cross-section of web pages. In the UK data, we find that the highest
credibility score, obtained by just one agency, is 7 out of a maximum score of 9. In the
Norwegian sample, five agencies obtain a score between 7 and 9; and the Danish data show four
agencies obtaining scores of 7 and 8. Exactly what this UK result is indicative of we cannot yet
say with any certainty. It could be culturally motivated, it could be a professional inclination for
consistency, and it could be an industry obsession with expertise. At any rate, we see that British
agencies are considerably more focused on expertise (62.5%) than are their Scandinavian
counterparts. The British agencies attach more importance to trustworthiness (22.5%) than to
empathy (12%), so on this count they strive for the same balance between these two ethos
qualities as we see for the Norwegian and Danish agencies.
If we dig a bit deeper in to the collective results of the analyses, we see that all 60
agencies describe one aspect or another of their expertise, but as many as ten agencies rely
entirely on expertise to communicate their credibility. Fourteen agencies mix expertise and
trustworthiness, but only one agency from each of the three countries mix expertise with
empathy, leaving out trustworthiness. Significantly, however, fifteen out of the twenty UK
agencies do not incorporate any statements of empathy and thus entirely disregard relational
aspects or the enjoyment clients may experience from engaging with the agency.
Cross-culturally, we see that Norwegian and Danish agencies are practically
indistinguishable in their preferences. However, we also note that the three cultures exhibit
relative differences on some important issues, and that the UK consistently demonstrates lower
credibility with more agencies obtaining a lower credibility score than their Scandinavian
counterparts, with no agency obtaining a maximum credibility score, and by showing the lowest
frequency (7) of agencies referring to all three ethos qualities.
As explained, our study was not designed to account for the visual communication of
credibility. We, of course, acknowledge the importance of visuals and of the mutual effects
between visuals and text in any type of communication. Thus, we find it pertinent to point out
that 3 Norwegian and 2 Danish agencies show portraits of their employees. Clearly, these visuals
contribute towards clients’ impressions of credibility, be it both of expertise and trustworthiness.
We are surprised by this very modest use of visuals in order to show who actually populates
agencies and think that this as an overlooked resource in establishing corporate ethos.
Across the three national corpora we obtained a surprisingly uniform result with an
overwhelming focus on web headings (NOR 67%, DK 80%, and UK 67%, respectively). We here
note that the results for the ethos headings (NOR 33%, DK 20% and UK 33%, respectively) are
significant in that they are used quite sparingly to clearly flag the nature of the content on
websites whose primary purpose, we would argue, is to establish a sense of ethos with agency
clients.
Conclusion
To sum up, we think it fair to say that Norwegian, Danish and British PR agencies take a
somewhat ‘conservative’ approach to the crucial task of building credibility or ethos via their
corporate websites. There is an unmistakable focus on the communication of expertise at the
expense of the other two building blocks of ethos, namely trustworthiness and empathy. This runs
counter to our intuitive expectation that PR agencies, in whom corporate clients vest their
confidence for communication solutions, would in their self-representations attach greater
significance to their good character and devotion to clients’ projects and successes.
200
Cross-culturally, we see that credibility in PR discourse reflect certain cross-cultural
preferences, and to a lesser extent some cross-cultural consistency within the industry. The
Norwegian and Danish PR agencies exhibit almost identical credibility profiles, whereas the UK
agencies demonstrate a slightly different one. Interestingly, we also see some cross-cultural
consistency, for instance in the agencies’ preference for the same balance between the ethos
qualities, and in the marked tendency for all three countries’ agencies to use web headings
signaling typical web rhetoric as opposed to headings triggering notions of ethos.
Finally, the methodology used in this study contributes to bringing into focus the specific
challenges imposed by systematic collections of website data. The quantitative and qualitative
methods were developed to control the selection and coding of broader text segments of website
discourse. These methods could also be accommodated to other types of website data.
We point out that the current study is supposed to give indication of current national
practices of how the public relations industries of three European countries have attempted to
make themselves appear credible. Traditionally, the three countries in the study have enjoyed
strong political and cultural links and still have extensive trade with one another. From that
perspective, it is not entirely surprising that their rhetorical preferences are in some respects
almost identical. Since the rhetorical choices are very much alike, a subsequent study is required
to determine whether the choices are made on the basis of similar cultural, situational or
professional assessments by the three sets of agencies. How do they decide what makes for sound
credibility discourse and do they agree? Therefore, this study is part of a wider research effort by
the authors to also establish what motivates corporate practices of credibility across a variety of
European industries.
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202
Relational Corporate Selves Focus on Multiplicity in Identity Construction
Trine Susanne Johansen
[email protected]
The paper addresses the proposition that corporate identity – often described in corporate communication
research as a coherent, consistent and constant expression of an organisation’s essence - also can be
viewed as constructed, fluid and multifaceted narratives. Drawing on organisational and sociological
identity studies, the theoretical framework frames identity as multiple within a relational perspective. In
addition, a tentative analytical framework for the investigation of relational corporate selves is proposed.
Through an explorative, narrative analysis of the LEGO 2006 Sustainability report, the paper proceeds to
discuss if and how the corporation constructs multiple identities in relation to different stakeholders by
looking at identity roles used when addressing the various groups. Finally, the conceptual implications of
the analysis for the proposed identity framework are briefly discussed along with the usefulness of the
narrative approach in uncovering multiple identities in a relational perspective.
Within corporate communication research, corporate identity is ascribed a boundaryspanning function between an organisation and its surroundings - creating and maintaining
relationships with numerous stakeholder groups (e.g. customers, investors, employees, suppliers,
the media and the general public) who (potentially) influence and/or are influenced by the
organisation (Cornelissen, 2004). One potential implication may be that organisations through
self-narratives construct multiple identities by way of the different roles that emerge through
different stakeholder relationships. Consequently, there may be a potential discrepancy between
corporate communication’s focus on expressing a uniform, constant corporate identity (van Riel,
1995; Balmer & Grey, 2000 and Cornelissen 2004) and the simultaneous demand for stakeholder
adaptation and responsiveness (Friedman & Miles, 2006): a discrepancy that calls for greater
focus on relational, multiple identity perspectives.
Taking a narrative approach to identity, this paper addresses how one organisation
communicatively constructs its corporate identity in relation to multiple stakeholders in asking:
do perceived relations to different stakeholder groups mean that the organisation, through
different identity roles, constructs multiple corporate identities rather than a single identity? In
answering this question, the paper also tentatively addresses the conceptual issue of what
potential implications such multiple constructions may hold for the corporate identity concept;
i.e., if corporate self-representation acknowledges multiple identities, how can the multiplicity be
reflected in the definition of corporate identity? The paper thus has a dual purpose of establishing
a tentative identity framework for further exploration and of experimenting with narrative
analysis within such a framework.
Firstly, a theoretical framework for conceptualising multiple corporate identities within a
narrative, relational understanding is outlined highlighting the connection between identity and
communication. In addition to discussing corporate identity as a multiple construct, a tentative
analytical framework for the investigation of multiple selves in a corporate identity perspective is
established. Through an explorative analysis of selected texts from the LEGO corporate website,
the paper then seeks to investigate whether or not the organisation constructs multiple identities
203
when addressing different stakeholders. In order to highlight potential multiplicity in identity
construction in praxis, a narrative analysis based on Greimas’ actantial model (1966, [1983]) of
the identity roles (i.e. actantial positions) used when speaking to the various stakeholder groups in
the LEGO 2006 Sustainability report is carried out. Finally, the implications of the actantial
analysis for the conceptual identity framework are discussed along with the usefulness of the
actantial model in relation to uncovering multiple identities in a relational perspective.
While discussing corporate identity, organisational and rhetoric researcher George
Cheney asks the compelling question: what does it mean to speak with a collective voice?
(Cheney, 1991:1) The identity understanding applied in this paper, inspired by a relational
approach promoted by e.g. Majken Schultz & Mary Jo Hatch (2000, 2001 and 2002) and Barbara
Czarniawska (1997), suggests that the answer to this question can be sought within the social
relationships between the organisation and its surrounding environment where identities are said
to be narratively constructed. The relational identity approach is founded within interactionist,
constructionist and post-modern identity understandings taken from sociology and social
psychology (i.e. Mead, 1934; Goffman, 1959; Gergen, 1985 and Jenkins, 2004) where multiple
selves are seen as socially emergent. A relationship based approach to identity can furthermore be
considered in accordance with a stakeholder framework where organisations view themselves in
relation to the many different stakes and interests represented by various stakeholders
(Cornelissen, 2004).
Conceptualising identity in a corporate context
Corporate identity is conceptualised in multiple ways (for an overview see e.g. Balmer,
2001 and 2002). Cornelissen & Harris (2001) list three metaphorical perspectives: 1) corporate
identity as an expression of the corporate personality drawing on an inner self 2) corporate
identity as organisational reality and 3) corporate identity as all expressions of a company (55).
The two first perspectives view identity as an organisation’s core, essence or soul; i.e., as a static
or stable entity expressed through communication, behaviour and symbolism (e.g. Balmer &
Grey, 2000; van Riel, 1995 and Cornelissen, 2004). Consequently, identity is to be communicated
as homogenously as possible ensuring that the communication reflects or transmits the true nature
of the organisation. Communication is thus viewed as a process in which meaning is transferred
through encoding and decoding as in Shannon & Weaver’s model of the communication process
(Fiske, 1990:7); i.e., meaning is encoded by the organisation (identity) and decoded by the
stakeholders (image) with correspondence or alignment between the two as a primary goal.
Seemingly, the relationship between identity and communication is one where communication is
used to express an essential identity which is embedded or rooted in the organisation (Cornelissen
& Harris, 2001:55). The third perspective presents a communicative or representational
alternative to the personality or reality driven approaches to corporate identity as “something that
emerges in enactment and social interaction” (op. cit.: 61).
However, the implication held by such a conceptualisation of identity as emerging in
communication is said to be that corporate identity can be “created, transformed and restructured
by management” (op. cit). As such, the wider implications of relational corporate selves as
negotiated through the process of communication are ignored as narrative identity is taken to
mean that anything goes; as long as consistency is maintained. Consequently, whether corporate
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identity is viewed as an expression of a deeper rooted personality or reality or as emerging in
communication or self-presentation, consistency remains a core, defining characteristic.
However, a different approach to identity as narration can be found within organisational
studies where Czarniawska (1997), for example, operates with a constructionist, narrative
approach to identity emphasising autobiographical organisational (self) narration as a continuous
process of articulation involving both organisation and stakeholders (49). Consequently, identity
is articulated by multiple voices making it dynamic, fluid and relational. The relational dimension
of identity is also stressed by Hatch & Schultz (2002) in their dynamic approaches to
organisational as well as brand identity. By incorporating external views on the organisation, that
is image, as an identity constructing factor, Hatch & Schultz emphasise the importance of
stakeholder voices in articulating identity similar to the way that a person’s self is said to rise out
of interaction with the surrounding society. This is especially apparent in connection with their
organisational identity dynamics model (Hatch & Schultz, 2002) which references George H.
Mead’s approach to the self as arising in interaction between the I and the me (see below). In this
view, identity is constructed through “a set of processes that continuously cycle within and
between cultural self-understandings and images formed by organizational ‘others’” (Hatch &
Schultz, 2002:1004). The frameworks established by Czarniawska and Hatch & Schultz build on
some of the main contributors to identity research within sociology and social psychology (e.g.
Mead, 1934; Goffman, 1959; Jenkins, 2004 and Gergen, 1985). The relationship between identity
and communication is one where communication is seen as negotiation of meaning in a social
setting rather than as transference of meaning from sender to receiver as it can be said to be the
case within the above mentioned perspectives on corporate identity. Narration becomes the arena
for identity construction as self-narratives or autobiographies become the narratives that
constitute identities (Czarniawska, 1997:142).
Relational notions of self
The idea that self arises out of interaction with the surrounding society is often traced to
the work of social psychologist Mead (e.g. Cerulo, 1997; Holstein & Gubrium, 2000 and Jenkins,
2004). Mead (and fellow pragmatists William James and Charles H. Cooley) reacted to notions of
an abstract, enlightened and transcendental self and in response constructed a different view on
identity as founded in everyday social interaction (Holstein & Gubrium, 2000). Self is understood
as a process of ongoing and simultaneous synthesis of “(internal) self-definition”, understood as a
dialogue between I and me, and “(external) definitions of oneself offered by others” in interaction
(Jenkins, 2004).Thus, it is possible to talk of selves rather than self as we enter into series of
different relationships with different people and thus become “one thing to one man and another
thing to another” (Mead, 1934:142) stressing the social or relational dimension of identity as well
as the existence of multiple selves. Later identity work within sociology carried out by Peter
Berger, Erving Goffman and Howard Becker, among others, has amplified the relational ideas of
self expressed by Mead rejecting any essential or core features as the unique property of self
(Cerulo, 1997:386). Goffman thus views the self as a social product of the performances put on
by individuals in social interactions; i.e.”the presentation of self” and the public validation of
such performances. Thus, a central theme in Goffman’s view on social self is that identities are
performed in conversations where the views of others determine how individuals present
themselves (Goffman, 1959). Both Mead and Goffman view self as socially constituted or
performatively enacted in place of an essential, true or pre-social self. Sociologist Richard
Jenkins (2004) recognises both Mead and Goffman as being among his primary inspirations and
places emphasis on that “we can be different things to different people and in different
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circumstances”(3). The multiplicity of identity as framed by social relations is thus continuously
stressed.
With emerging thoughts on postmodernity, the notion of a reality distinguishable from its
representation is brought in to question and even rejected. Consequently, to some (e.g.
Baudrillard, 1983), the self is a mere image among many for conveying identity – while to others
it is still possible to talk of a socially constructed self. In such a view, the postmodern multiplies
and hybridises, but preserves, identities (Holstein & Gubrium, 2000). Belonging to the latter
category is psychologist and social constructionist Kenneth Gergen who maintains the reality or
existence of self albeit as a self that becomes saturated with meanings. Gergen’s thesis is that
social saturation, fuelled by technological developments, leads to a “fragmentation of selfconceptions” brought on by multiple, incoherent and disconnected relationships (2000:139). In
Gergen’s relational view on identity the notion of an individual core or essence to which the self
remains true is dispelled. Instead, identity is emergent, re-formed and redirected and the notion of
self is replaced by the notion of relatedness meaning that it makes more sense to speak of us,
rather than of you and I (op. cit.:156).
Multiplicity in relational corporate identity
The relational identity perspective presented above - inspired by interactionist, social
constructionist and post-modern understandings - has been conceptualised primarily through the
works of Mead, Goffman, Jenkins and Gergen stressing the multiple nature of self. However, the
question becomes what implications such an understanding has for the conceptual development of
the corporate identity construct. The main argument is that relational identity has much to offer
by way of stressing the interdependent nature of organisation and environment already
incorporated into organisational and brand identity studies and as a key element when discussing
stakeholder relations and management.
With reference to the relational identity framework, it is argued that multiplicity is an
overlooked aspect of corporate identity. However, Balmer & Greyser (2002) have suggested that
corporate identity indeed can and should be viewed within a multiple identity framework
(expressed in the ACI2D model) consisting of five different identities: actual identity,
communicated identity, conceived identity, ideal identity and desired identity. Balmer & Greyser
thus recognise that several identities can be located in relation to any given organisation.
Nevertheless, the notions of unity, coherence and consistency underlie this multiple identities
perspective as the different identities must be in alignment since a gap between identities “causes
dissonance that can potentially weaken a company”. (Balmer & Greyser, 2002:75) The ACI2D
framework can therefore be said to support or sustain, rather than challenge, the corporate identity
conceptualisation that characterise the research field as exemplified by the work of e.g. John M.T.
Balmer where multiplicity should be management through processes of harmonisation or
integration (Moingeon & Soenen, 2002 and van Riel, 1995) Within a narrative identity
perspective, multiplicity is found within the concept of polyphony where corporations are said to
speak with multiple voices (Christensen et.al., 2008). However, it may be said that polyphony
frames multiplicity within a sender-oriented (or inside-out) perspective where the multiplicity
stems from within the organisation. The relational approach, on the other hand, frames
multiplicity in a receiver-oriented (outside-in) perspective in recognising identity articulations
stemming from outside the corporation (Czarniawska, 1997).
The underlying theoretical framework suggests that corporate identity can be
conceptualised based on the concept of relatedness proposed by Gergen which in turn references
earlier works on socially constructed identity. A relational identity understanding suggests that
206
identity is emergent, context-embedded, discursive and multiple (e.g. Wheterell & Maybin,
1996). In this context, focus will be placed on how relational identity gives way to multiple
identity constructions or narratives. It is hypothesised that an organisation which recognises the
importance of multiple stakeholders attempts to create and maintain relations through multiple
identities which position the organisation according to varying stakeholder interests or stakes.
The hypothesis will be explored by analysing the different positions taken by the LEGO
Company addressing different stakeholders on its corporate website (www.lego.com).
Data Selection and Analytical Approach
The LEGO Company is chosen as the analytical focal point due to its active relationships
with multiple stakeholder groups. The company continuously seeks to involve its stakeholders
both on- and offline by inviting them to participate in dialogues with the organisation: adult
LEGO fans are encouraged to share product inventions and constructions, parents are encouraged
to share thoughts on LEGO play, children (of all ages) are invited to post their inventions and
chat online on the LEGO message boards and educators are involved in using LEGO blocks to
further creativity, learning and innovation.
In order to analytically approach corporate identity in a multiplicity perspective from a
narrative point of view, examples of corporate self-expression or self-narration addressing
multiple stakeholder groups is needed given the hypothesis; namely, that organisations qua their
relationships with different groups construct different identities to address different stakeholders.
Consequently, the LEGO website is chosen as the analytic focal point since websites are assigned
a central position within communication between corporation and multiple stakeholders (Nielsen,
2002). As such, they are condensed fora for corporate communication assumingly providing a
good basis for analysing how the organisation in question constructs identity roles in relation to a
variety of stakeholder groups. The LEGO corporate website addresses multiple stakeholder
groups in multiple ways including the dialogues mentioned above. However, the online version of
the 2006 LEGO Sustainability report is chosen as the analytical basis. This selection is grounded
in the many different stakeholders addressed in the report which provides a condensed, welldefined arena for self-narration directed at different identified stakeholder groups including:
consumers, retail trade partners, employees, business partners and suppliers, and society.
The actantial model
As suggested by Czarniawska (1997), corporate websites, as one form of organisational
self-presentation, can be analysed as autobiographic narratives. By selecting texts where the
organisation is the narrator, focus is placed on how the organisation narratively constructs its own
identity. Analysing self-narratives in order to highlight identity construction by way of Greimas’
actantial model (1966, [1983]) has previously been conducted in relation to individual, personal
narratives (Wang & Roberts, 2005). Wang & Roberts draw attention to how this approach to
narrative analysis focuses research on the narrator’s ”understandings of character relations” (op.
cit. 51) by depicting “characters’ narrative positions” as well as the “links among these
positions” (op. cit. 53). It is possible to argue that the actantial model’s focus on identity
positions within relationships links to a relational identity understanding which emphasises that
identities are socially constructed. Moreover, as shown by Nielsen et al. (2007) the actantial
model can be considered a useful approach in uncovering relations between actants and as such
the model highlights how identity construction is a relational endeavour. Furthermore, the model
forms the basis or framework for contemporary approaches to corporate storytelling frequently
207
applied in the construction or narration of organisational autobiographies (e.g. Fog, Budtz &
Yakaboylu, 2002).
Developed within a structuralist frame of reference, the actantial model is an analytical
tool which in theory can be used to analyse any action whether real or thematised. However, the
model has in particular been applied to action within literary texts and images. Any action can be
broken down into the following six actants:
Sender →
Object →
Receiver
↑
Helper →
Subject
← Opponent
FIGURE 1: Greimas’ actantial model (Greimas, 1966 [1983]: 207)
The six actants can be described in relation to three oppositions or axes indicating the
relationships between the different actants: the subject seeks or does not seek to be joined to an
object (axis of desire or project). The sender instigates action while the receiver benefits from it
(axis of transmission or communication). And finally, the helper helps to accomplish the action
while the opponent hinders it (axis of power or conflict). An actant does not always respond to a
character in the traditional sense of the term. Actants may be anthropomorphic beings, an
inanimate element or a concept. An actant may be individual or collective. A single element can
be identified in one, several or all actantial positions. Consequently, a given character or actor
(e.g. the company or stakeholder groups) may potentially contain several actants from different
actantial positions or several actants from the same position have separate actions. The
implications in relation to the multiple identity concept are discussed below.
Actantial analysis consists in assigning each of the different components or elements of
an action to different actantial positions. Consequently, the LEGO identity constructions framed
by different stakeholder relations are analysed with reference to the actantial model focusing on
the actantial positions assigned to the characters (organisation and stakeholder groups i.e.
consumers, retail trade partners, employees, business partners and suppliers and society) in
combination with the embedded relations among the actants. It is thus possible to show which
subject relations as well as subject positions (Foucault, 2002) are assigned to and by the
organisation when addressing different stakeholders.
Analysing Relations and Positions
The actantial analysis of the LEGO 2006 Sustainability report is structured according to
the five main stakeholder groups explicitly addressed in the report: consumers and customers,
retail trade partners or customers, employees, business partners and suppliers and society. The
questions asked are: which actantial positions are assigned to the organisation and the
stakeholders respectively? Does the organisation assign itself different positions when addressing
different stakeholder groups? And does the organisation construct multiple, different relations to
each of the identified stakeholder groups by assigning different positions?
In order to elucidate which actantial positions are assigned by the LEGO organisation to
itself and the various stakeholders in the sustainability self-narrative, the actantial model is
applied to the communicative constructed relationships between the actors. The results of the
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analyses are shown below. For some stakeholder groups one model is constructed (retail trade
customers, society) whereas for others (consumers, suppliers and employees) several models are
constructed to show how different object-subject relations lead to multiple actantial positions of
the identified actors i.e. organisation and stakeholders.
Consumers (and customers) are positioned simultaneously as subject and receiver, and as
sender and helper dependent upon the object stated in the text. When the object is learning
through play the consumers or customers are those who benefit from the expertise of LEGO as
seen in the following quote which references the LEGO slogan Joy of building. Pride of creation:
“Those words are the essence of the play and building experience we want to give the consumer
through our products.”
LEGO→
Learning through play →
Develop your imagination
Creative problem solving
Children whose parents buy
LEGO
Adult LEGO users
↑
Playing with LEGO→
Unique building system and focus
on quality and service
Customers
(Children of all ages)
← Poor quality (LEGO)
Safety (LEGO)
Customer complaints
FIGURE 2: Consumer relationship – LEGO as sender and helper
However, LEGO also constructs a reverse relationship where the customers are the ones
who act to the company’s benefit when helping with product development positioning LEGO as
subject and receiver: “The LEGO Group has increasingly wanted to involve our most enthusiastic
consumers in the development of our products, in order to use the tremendous knowledge and
creativity these fans possesses.”
Customers →
Product development→
LEGO
(and the customers)
↑
Customers →
Customer dialogue
LEGO
FIGURE 3: Consumer relationship – LEGO as subject and receiver
LEGO’s retail trade partners or customers, on the other hand, are positioned solely as the
receiver while the organisation is assigned multiple positions as sender, helper, subject, receiver
and opponent in relation to the object of financial sustainable development.
209
LEGO→
Financial sustainable
development →
Retail trade partners
LEGO
↑
LEGO →
Development of key account
management (improved
cooperation and dialogue)
LEGO
← unsatisfactory delivery service
(LEGO)
FIGURE 4: Retail trade partner relationship – LEGO as sender, helper, subject, receiver and
opponent
The employees at the LEGO company are assigned two different sets of positions in that
they are subject and receiver when the object is to create and maintain an exiting, challenging and
rewarding workplace and helper when the object is to secure a sustainable, successful company as
shown in the extract: “The LEGO Group aims to be an exciting and challenging workplace,
where good results are rewarded. Our employees are instrumental in the work of creating a
sustainable, successful company, where creativity and a stimulating environment provide
opportunities to learn every day.” Correspondingly, the organisation is both constructed as sender
and helper and subject and receiver in the relationship with the employees.
LEGO→
Exiting, challenging and
rewarding workplace→
Employees
↑
LEGO →
(Employees)
Employees
← Changes/outsourcing
Financial situation
Insufficient employee
development
FIGURE 5: Employee relationship - LEGO as sender and helper
Our employees →
A sustainable, successful
company→
LEGO
↑
Dialogue and training →
Renewed culture
LEGO
← Low employee satisfaction
and commitment (outsourcing)
FIGURE 6: Employee relationship - LEGO as subject and receiver
Business partners and suppliers are also assigned multiple positions depending upon the
stated object. When the survival of the company is in focus, the suppliers are assigned the
position of the opponent since their inability to live up to quality and ethical standards may place
210
the company at risk. On the other hand, when the object is to meet the standards that are said to
secure survival, the suppliers are also assigned the position of sender.
LEGO →
Survival →
Competitiveness and profitability
LEGO
↑
Outsourcing →
← Suppliers (not meeting the
standards)
FIGURE 7: Partner and supplier relationship: LEGO as sender, subject and receiver
Suppliers →
LEGO
Meeting standards →
LEGO
↑
Ethical supplier management →
Code of conduct
LEGO
← Suppliers
FIGURE 8: Partner and supplier relationship: LEGO as helper, subject and receiver
The final stakeholder which is explicitly addressed is society per se as an embodiment of
the organisation’s larger societal responsibility. Society is positioned as the receiver who benefits
from the responsibility as an object for the LEGO company: “The LEGO Group has always had
the core value of showing consideration for its surroundings and causing as little impact on the
local environment as possible.” The extract relates to LEGO’s environmental policy and is
followed by statements relating to recycling, selecting chemical substances, energy consumption
and LEGO education centres.
LEGO →
Responsibility →
Society
↑
Credibility, honest and timely
LEGO
communication →
Environmental policy
FIGURE 9: Societal relationship – LEGO as sender and subject
← Crisis
Based on the analyses of the actantial positions assigned in relation to the five
stakeholder groups in the 2006 Sustainability report, it is possible to address whether or not the
organisation assigns itself different actantial positions when addressing the different groups. The
actantial analyses indicate that LEGO to some extent assigns itself different positions in the
different stakeholder relationships it constructs in the self-narrative. However, some positions are
more frequently assigned than others including sender and helper which the organisation assigns
itself in relation to all stakeholders. In addition, the analyses show that LEGO positions itself in
all actantial positions expect that of object.
211
In the relationships with both consumers/customers and employees, two different
relationships and positions emerge related to stakeholder and organisational objects. When the
stakeholders’ objects are in focus (learning through play and an exiting, challenging and
rewarding workplace), LEGO assigns itself the position of sender and helper whereas when
LEGO’s object is in focus (product development and a sustainable, successful company), the
actantial positions are reversed and the organisation is assigned positions as subject and receiver.
Another finding is that LEGO also positions itself as opponent in relation to a number of
stakeholder groups including consumers, partners and employees where elements such as poor
product quality, delivery, ethics, safety and satisfaction are key issues. Thereby LEGO is not
positioned explicitly as opponent but responsibility for the issues are assigned to LEGO and thus
the organisation implicitly takes on this position.
The analyses not only indicate that the organisation constructs multiple, different
relations to the identified stakeholder groups by assigning itself and them different actantial
positions – but also that the organisation simultaneously through the assigned positions also
constructs a partly coherent positioning for LEGO. The question becomes whether or not there is
any identifiable pattern or structure in the different positions that leads to coherence? One
apparent pattern relates to the position of object as it appears that the object is determining for the
relationships and the assigned positions i.e. whether the object is sought after by the organisation
or said to be sought after by the stakeholder groups. Despite the identified pattern, there are
differences in the positions assigned to the organisation when positioned within different
stakeholder relations. The next question that needs to be answered is which implications such
multiplicity and unity of actantial relationships and positions hold for the multiplicity said to
characterise identity within the relational corporate identity framework?
Discussion, Conclusion and Research Implications
This paper seeks to tentatively adopt a relational identity approach into a corporate
identity framework and argues that this perspective leads to a multiplicity of identities. Through
focusing on multiplicity in corporate self-presentation and adopting an organisation-as-narrator
approach, the notion of multiple selves as discussed in relation to the corporate identity concept
gains some momentum as the narrative analysis highlights how LEGO assigns itself different
actantial positions when addressing different stakeholder groups albeit certain positions, notably
those of sender and helper, reoccur. The reoccurrence of the sender/helper positions also implies
some consistency and unity in the LEGO sustainability narrative. Thus, the analysis shows how
both unity and multiplicity can be said to characterise identity construction in the selfpresentation in question.
What has been highlighted is the multiplicity perspective; i.e., how the organisation
positions itself differently in relation to different stakeholder groups thus assuming different
identities in relation to these groups. However, what the analysis does not address is whether the
organisation in question has chosen such multiple identities as a deliberate, strategic move in
response to different stakeholder interests or whether the different positions and relations emerge
unconsciously. Moreover, the tentative, explorative analysis is carried out on the basis of a single
set of texts accessible online meaning that more in depth analyses of other texts from the LEGO
website may emphasise or de-emphasise the argument supported by this analysis. It is possible
that by extending the analysis to all website postings, the outcome may favour either the
multiplicity or unity approach. Another possible source of influence on the findings is the scope
of the texts analysed which is centred on sustainability. Once again including a wider range of
texts from the website or other company materials might change the outcome.
212
A further cautionary note may be raised in relation to the proposed link between multiple
actantial positions and multiple identities. Within the actantial framework, an actor may hold
multiple (and sometimes simultaneous and/or conflicting) actantial positions in the same
narrative. Thus, it is possible to argue that an organisation may use different positions in its selfpresentation, but still remain the same actor in possession of a single identity which is in line with
the three identity perspectives introduced in the theoretical framework. However, given the
central argument that identities are constructed or constituted in narration, it is possible to argue
in favour of viewing the multiple positions as expressions of multiple identities – with reference
to Mead (1934) we might say that the organisation becomes one thing to one stakeholder group
and another to another. A conclusion which in part is supported by differences in the assigned
positions identified through the analysis. A tentative implication for corporate identity
conceptualisation is thus that multiplicity is inherent to identity narration as organisations may be
constructing multiple identities when addressing different stakeholder groups.
In light of the outcome of the analysis, an argument can be made in favour of further
research into the multiplicity of corporate identities. Analysing corporate self-narrative is just one
approach to viewing multiple identity construction in praxis placing focus on the organisation’s
(un)deliberate construction of different selves. The implication of the relational framework may
also call for a dialogue oriented approach which focuses explicitly on the relation taking into
account the voices of both the organisation and the stakeholders in identity narration, as proposed
by e.g. Czarniawska (1997). The identity perspective constructed in this paper holds that when
identity is viewed as relational, the voices or articulations of an organisation’s others i.e. its
stakeholders must be included in identity understanding as a basis for the multiplicity of identity.
Consequently, there is a need for analysing the conversations in which corporate self-narrations
take place if identity is to be viewed in a relational perspective as suggested by the constructed
theoretical framework.
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Managing Projects with CSR in Mind:
CSR Knowledge Communication in
Project Management
Constance E. Kampf
Department of Language and Business Communication
Christa Thomsen
Centre for Corporate Communication
Aarhus School of Business, University of Aarhus, Denmark
This paper examines project management as a place where CSR can be operationalized, focusing
particularly on project conception processes and co-constructing CSR knowledge with emergent tertiary
stakeholders. Two projects which dealt with emergent tertiary stakeholders differently are examined. First,
the Finnish company Metsa-Botnia’s paper pulp plant in Uruguay is examined as a project in which a
tertiary stakeholder, Argentina, emerged during the early stages of the project. Argentina requested
dialogue about the project conception and Metsa Botnia did not include them. In contrast, the Danish
emergency services company Falck A/S’s project on redefining CSR is offered as an example of a project
transformed through dialogue with the emergent tertiary stakeholder, the county of Aarhus. To analyze
the cases, the paper combines Morsing & Schultz’s (2006) dialectic CSR strategy based on sensemaking
and sensegiving with Kampf’s (2007) stakeholder model which situates the firm and its stakeholders in a
dynamic system. The resulting model can be used to understand diversity in sensemaking and sensegiving
knowledge communication processes about corporate projects. The paper applies this model to both cases,
demonstrating a negative outcome for Metsa-Botnia and a positive outcome for Falck A/S. The results
suggest that corporations need to take CSR into account in the way they deal with tertiary emergent
stakeholders during project conception and that project conception which is open to transformation
through dialogue with emergent tertiary stakeholders can be advantageous.
Metsa-Botnia, a Finnish paper pulp company, initiated a project to build a pulp mill in
Uruguay. From the company’s perspective, the project was on-time, within budget, and the
factory met international quality and environment standards. (Janhonen, 2008). Although this
sounds like a project which has successfully fulfilled the triple constraint in project management
methodology, Metsa-Botnia’s perfectly executed project has been at the center of an international
controversy initiated by Argentina. Headlines describing the project include: “Pulp friction: the
Argentina-Uruguay conflict”, “Solution to paper factory dispute between Argentina and Uruguay
more remote than ever: Spain's King tries to help ease tension ” and “Double Interim Relief
Denial in Argentina-Uruguay Pulp Mill Dispute before the World Court .” How can this happen
in a situation where the Finnish Metsa-Botnia took care to involve the stakeholders from
Uruguay? The answer lies in the context—a context which Metsa-Botnia tried to understand and
approach from a socially responsible angle. However, this was not enough, and as Lauring and
Thomsen (forthcoming) observed, “access to the context is one of the main challenges” for
companies trying to engage in socially responsible practices because values and ethics are tacit.
As project management increasingly becomes a common strategy for organizing work in
corporations, the project itself becomes a site of interaction with stakeholders, and as such, a site
where Corporate Social Responsibility (CSR) comes into play. Lauring & Thomsen
(forthcoming) claim “CSR should be considered a continuously negotiated process between
217
Constance E. Kampf and Christa Thomsen
companies and stakeholders.” If CSR is understood as a continuously negotiated process between
companies and stakeholders, then it follows that CSR can be negotiated from the bottom-up
through all stakeholder interactions, including stakeholder interactions via projects. In project
conception, stakeholder interactions are part of the communication processes through which the
project is defined and via which both companies and stakeholders make sense of the project.
Morsing & Schultz (2008) call for a dialectic CSR strategy in dealing with stakeholders by
engaging with them in both sensemaking (Weick 1979) and sensegiving (Giora & Chittipeddi
1991), using the corporate annual report as an example of an effective site for interaction with the
stakeholder. Sensemaking & sensegiving are processes through which corporations can be
understood to engage in knowledge communication about their organization and their CSR
(corporate social responsibility) efforts. This paper extends these notions of dialectical
sensemaking and sensegiving to the project as a site for interaction and knowledge
communication with the stakeholders, and suggests that emergent stakeholders in the early stages
of projects offer companies the opportunity to operationalize CSR through engaging in dialogue
supporting sensemaking/sensegiving knowledge communication processes in project conception.
To examine projects as places where CSR knowledge is negotiated with stakeholders, we
need to take the context of the project into account. The major difference between our approach
and previous studies is that Morsing and Shultz assume a corporate-centered model of the
stakeholder based on Freeman (1984) and Donaldson & Preston (1995), while we assume a
situated open systems model of the corporation (Kampf 2007) where the corporation is situated in
an open cultural system framed not by geography per se, but by interacting with the institutions,
power structures, and norms present within nation states, which, in turn, are open systems
affected by the larger context of globalization. This assumption of both corporations and
stakeholders as emerging from a shared, external system opens the door for understanding
stakeholders with whom the company may not have direct interactions, and who may emerge
during processes inherent in project planning and implementation. We use the term “emergent
tertiary stakeholders” based on the concept of tertiary stakeholders from Project Management
(Warren 2001) to describe these central or local governmental stakeholders who emerge by
asking to be directly involved in the project 1.
In this paper, we will discuss the two cases in which tertiary stakeholders emerged—
Finnish Metsa Botnia’s Paper pulp plant in Uruguay and Falck A/S’s project for defining CSR in
Aarhus, Denmark. Although the scope of the projects in these two cases differs, each offers an
example of a project in which a tertiary stakeholder emerged early in the project process. In the
case of Metsa-Botnia’s Paper pulp plant, the tertiary stakeholder was left out of the dialogue
when the World Bank and other global institutions supported the project. The result is negative—
on-going protests and tension between Uruguay and Argentina over the plant. In the second case
of Danish emergency services company Falck A/S’s CSR definition project, the county of Aarhus
saw the project in the news and requested to be involved—and was welcomed by the company,
resulting in a productive stakeholder interaction in which the county and Falck A/S worked
together to make sense of the project.
1
We define emergent tertiary stakeholders as stakeholders who governmental in nature and are not directly
involved with the project. Project Management uses this classification for governmental bodies because
tertiary stakeholders are, as governmental bodies, inherently socially responsible. We add the modifier
emergent because we are referring to tertiary stakeholder who request to be part of the stakeholder dialogue
inherent in project conception.
218
CSR Knowledge Communication in Project Management
Through these examples, we argue for project conception as a place where Morsing &
Schultz’s dialectical sensemaking /sensegiving stakeholder involvement strategy for CSR can be
deployed and extend their strategy to include an understanding of stakeholders and corporations
as dynamic elements in a shared context. To further de-center the corporation from stakeholder
models, we offer the concept of emergent tertiary stakeholders to demonstrate how governmental
stakeholders which emerge early in the project sensegiving can influence the long term success of
the project through shared sensemaking dialogue which may transform the nature of the project.
Although one might argue that the projects are difficult to compare due to their difference in scale
and the fact that the Falck A/S project worked so closely with the public sector, we suggest that
larger scale private projects can learn from a successful example of integrating a tertiary emergent
stakeholder in the project early in the project conception process. Projects involving direct
interaction with the public sector are useful examples because, as public projects, they are
implicitly socially responsible.
Our discussion of project management as a location for operationalizing CSR begins with
a discussion of Morsing & Schultz’s (2006) bidirectional iterative stakeholder involvement
strategy, extending the strategy by grounding it in a systems model of the corporation (Kampf
2007). Then we examine project conception as a dialectical sensemaking/sensegiving process,
discussing emergent tertiary stakeholders during the project management process. Finally, we
conclude with a discussion of the implications of understanding projects as sites for CSR
knowledge communication and as such, the implications for understanding emergent tertiary
stakeholders and their potential for sensemaking and sensegiving processes inherent in project
conception. To support our arguments, we juxtapose the aforementioned two projects—Finnish
Metsa-Botnia’s paper pulp plant in Uruguay as a problematic example of tertiary stakeholder
interaction concerning Argentina, and Danish Falck A/S’s CSR definition project in Aarhus
Denmark as a successful example of tertiary stakeholder interaction concerning the county of
Aarhus.
A Project Conception Model for Project Management: grounded in
iterative stakeholder involvement and a situated systems model of the corporation
The iterative stakeholder involvement model defined by Morsing & Schultz (2006)
relates to corporate CSR large scale policy initiatives in their discussion of public dialogue and
expectations emerging from results of national corporate reputation surveys in Denmark, Sweden
and Norway. They call for ongoing, systematic long term stakeholder dialogue which is both
iterative and transformative for the company and the stakeholders. (p.328) However, this
dialogue is general to the company strategy for reputation building and focuses on recognized
stakeholders available to be polled or consulted on a regular basis. This notion of iterative
stakeholder involvement can also be extended to specific projects where the company is not
engaging in conversations about general reputation or strategy with stakeholders, but rather,
making choices in conceiving, planning and implementing projects which affect stakeholders.
We argue that it is in projects where iterative stakeholder involvement is possible. Thus, we
argue that extending Morsing and Schultz’s iterative dynamic CSR model (2006) beyond the poll
to the project opens up possibilities for corporations to operationalize CSR in their project
conception practices.
In project management processes, companies make sense of their environment and
analyze stakeholders in the conception and planning of the project. Some of this sensemaking is
inherent in the way in which companies conceive of projects based on their business strategy and
predefined risks which are analyzed regarding stakeholders the company is able to identify. As
219
the company makes sense of the project, in turn, it works at giving sense to the public and
identifiable stakeholders. However, the complete identification of stakeholders in a project is
difficult because, as people are affected by the development of the project, unexpected
stakeholders can emerge. Examples of this are the protests from Argentina to the Finnish
company Metsa-Botnia’s plan to build a paper pulp plant in Uruguay and the county of Aarhus’
request to participate actively in – and benefit from - Falck A/S’s announced plan to define its
CSR strategy.
In Morsing and Schultz’s dynamic sensegiving/sensemaking CSR model (2006), the
basis for their bidirectional iterative process of CSR communication is based on Donaldson &
Preston’s stakeholder model of the corporation. However, this understanding of stakeholders is
problematic for stakeholder interactions on projects because it reduces the ability of the
corporation to see unexpected and diverse understandings of the project. When the corporation
understands itself as the center of stakeholder interactions as in Donaldson & Preston’s (1995)
stakeholder model of the corporation, Morsing & Schultz’s dialogic sensegiving/sensemaking
processes of CSR appear to be initiated by the corporation as part of CSR policy development.
This leaves a gap for understanding emergent tertiary stakeholders in projects who, from the
internal corporate sensemaking of the project goals and the external corporate sensegiving
explaining the project, seem to be “out in left field” or not directly relevant to the corporation’s
defined project goals and objectives.
To address these emergent tertiary stakeholders in projects, who, according to corporate
sensemaking and sensegiving practices inherent in project management goals, seem to be
irrelevant, there is a need for basing a dynamic iterative sensemaking/sensegiving CSR model
such as Morsing & Schultz’s 2006 model on a stakeholder model which enables understanding
diversity in sensemaking and distributes the power of sensegiving among the participants in the
context. Diversity in sensemaking can be understood through demonstrating the complexity of
the context in which the project is situated. De-centering the corporation in stakeholder analysis
allows for understanding diverse sensemaking and sensegiving practices affecting both project
conception and project reception by the corporation and stakeholder groups.
In basing a dynamic iterative sensemaking/sensegiving CSR model on a decentered
stakeholder model, we combine Morsing & Schultz (2006) with Kampf’s (2007) situated model
of the corporation. The result is an extension of both models. We begin with Kampf’s model of
the stakeholder situated in cultural systems and extend it to include Morsing & Schultz’s dynamic
sensemaking/sensegiving CSR processes. The result is a model which incorporates a focused
analysis of the context in which both emergent tertiary stakeholders and corporations are
engaging in sensemaking and sensegiving processes. Through this focused analysis, diversity in
sensemaking and sensegiving practices for different stakeholders can be seen in the interaction
between system elements.
To de-center the corporation, Figure 1 (Kampf 2007) depicts a stakeholder model which
demonstrates corporations (firms) as institutional consequences of dynamic open cultural
systems defined through the continuous interaction of origins, norms and the corporations ( along
with other institutions). In projects at the national level, the firm can be understood in terms of
the legal and social systems in which it is situated. In international and global level projects, the
model can be used for each of the national systems involved as a tool of analysis for
understanding diversity in sensemaking and sensegiving practices with respect to the project.
220
FIGURE 1. The Firm and its Stakeholders Situated in a Cultural System
The model in Figure 1 focuses not on definition, but rather interaction. Thus, the level of
detail at which the categories are focused can be shifted in order to analyze the context in which
projects are situated, rather than the context in which corporations are situated. An example of
the model applied at a more detailed level of context within projects to understand the consequent
sensegiving and sensemaking practices is shown in Figure 2.
FIGURE 2. Sensemaking and Sensegiving practices as consequences of contextual systems.
In Figure 2, the focus for consequences in the right box is shifted to sense-making and
sense-giving processes inherent in project conception and the norms are shifted to norms and
attitudes defining expectations for stakeholder dialogue practices from both the corporation and
the stakeholders. Looking at both corporate and stakeholder sense-giving and sense-making
practices as consequence of the interaction between norms & attitudes and origins or ecological
factors affected by globalization allows for diversity in making sense of the project and offers
corporations a tool for analyzing some possible causes of cognitive dissonance between project
conception on the part of the corporation and project reception on the part of emergent
stakeholders.
With a systems model of the corporation from Figure 1, (Kampf 2007), the context for
understanding divergence in sensemaking around projects and their impact on society can be
clarified through an understanding of stakeholders as part of the social systems and sensemaking
221
systems in which the corporation is embedded. This model offers a way of recognizing
stakeholders as “anyone who has the potential to affect the success of the project.” (Eiler 2005).
To understand the context of sensemaking and sensegiving processes at the intersection
of the project and CSR, Figure 2 offers a way of mapping historical, geographical, cultural, and
institutional contexts to expand the possibilities for recognizing stakeholders and understanding
interactions between primary stakeholders identified by the company (such as Uruguay in MetsaBotnia case) and tertiary stakeholders campaigning to enter the sensemaking and sensegiving
processes—such as Argentina.
Project conception as a dialectical sensemaking/sensegiving process
with emergent tertiary stakeholders
Project conception, the first stage in project management (Smith & Umbrie 2007), is the
place where thinking through project options and making changes to a project is least costly and
most effective. During project conception, stakeholder needs can be examined and the project
can be understood as solving a problem for the organization. The understanding of the project is
a manner of corporate sensemaking, and as such affects corporate sensegiving strategies. These
sensemaking and sensegiving practices underlie knowledge communication about the project.
To operationalize sensemaking and sensegiving practices as consequences of contextual
systems in order to examine emergent tertiary stakeholders, we will apply the model to two cases
of project conception—Finnish Metsa-Botnia’s paper pulp plant in Uruguay as a negative
example in which tertiary stakeholders were not engaged in the project conception process and
Danish Falck A/S Emergency Services company as a positive example in which tertiary
stakeholders were included and allowed to engage in a dialogue which transformed the project.
The latter example is an example of CSR in action at the level of project conception.
Choosing not to engage with a tertiary, emergent stakeholder: The case of Finnish MetsaBotnia’s Paper Pulp Factory in Uruguay
Metsa-Botnia, in beginning their paper pulp project in Uruguay, did the best they could to
identify stakeholders and took time to meet with Uruguayans affected by the project. According
to Janhonen (2008), the project is a paper pulp factory in Uruguay, and from that perspective, the
protests of the Argentineans across the border are difficult to understand, as the Argentineans
were not identified as primary stakeholders in the project conception. In other words, MetsaBotnia made sense of the project as a paper pulp plant in Uruguay.
In contrast, there were protests from Argentina even as Metsa Botnia sought support from
the World Bank for the project. (Mitchell, 2006) These protests indicated an Argentinean
sensemaking frame in which the project was understood differently from that in Uruguay, and as
a result of this frame not being included in project conception by Metsa-Botnia, charges were
filed against Uruguay by Argentina in the International court of Justice at the Hague in
connection with the factory (Avila 2007) and protests blocking traffic near the factory have been
ongoing (Adams 2008). The Metsa-Botnia case is an example of the potential results when a
stakeholder is not recognized and their sensemaking of the project is not acknowledged in a
dialectical sensemaking/sensegiving process. But as Janhonen suggested in his description of the
case (2008), how can a company building a paper pulp plant in Uruguay understand Argentinean
protests to shut it down? From this sensemaking description of the project, the impact of
Argentina’s request seems inappropriate and unfathomable because for Metsa Botnia, the context
222
is defined as Uruguay, and the World Bank and Uruguay gave legitimacy to this sensemaking
frame through support for the project.
To look at the divergent sensemaking processes of Metsa-Botnia, Uruguay & Argentina
inherent in the Metsa Botnia Paper pulp plant context, the model from Figure 2 in the previous
section, depicting divergent sensemaking practices, is applied to the Metsa-Botnia paper pulp
plant in Figure 3.
Figure 3 demonstrates the divergent sensemaking and sensegiving practices regarding
Metsa Botnia’s paper pulp plant project from the perspectives of Metsa-Botnia and Argentina.
Metsa Botnia derives it sense of the paper pulp plant as environmentally friendly from the fact
that the plant uses fast growing trees which are a renewable resource in the process of making
paper pulp, as well as the support from the World Monetary fund and international standards
regarding water and air pollution for paper pulp mills (Adams 2008). However, Argentina makes
sense of the project differently based on historical experiences with Europe, the border treaty with
Uruguay regarding the river next to the plant, and the stakeholder dialogue which omitted not
only the Argentinean government, but also the citizens of the border city across the river from the
plant. The lack of stakeholder dialogue in project conception lead to an escalation of the
situation until Argentina filed claims against Uruguay in the world court. Currently, there is talk
about an agreement between Uruguay and Argentina (Talliant 2007) to resolve the dispute which
includes considering the removal of Metsa-Botnia’s paper pulp factory—implying that ignoring
an emergent tertiary stakeholder might, in extreme cases, lead to project failure.
FIGURE 3: Sensemaking and Sensegiving consequences for Metsa-Botnia’s Paper Pulp Plant Project
223
Including a tertiary, emergent stakeholder:
The case of a Danish emergency services company—Falck A/S
The Danish Falck A/S case offers an example of how projects can successfully
demonstrate CSR in action by being open to a reconceptualization of the project with emergent
tertiary stakeholders. In contrast to Metsa Botnia, the Danish emergency services company Falck
A/S made the choice of including an emergent tertiary stakeholder in their dialogue at the early
stages of project conception in a project about defining its CSR policy and practice 2. The
cooperation was initiated as a project beginning on 1st of January 2000. The project was financed
partially by public money distributed by the Coordination Committee for the preventive labour
market effort in the municipality of Aarhus. The target group was employees in Falck, nonemployees in Falck and society, here understood as stakeholders in general. The cooperation
models developed in the project period have been implemented and disseminated to other parts of
Falck A/S’s organization. Today the cooperation is regulated by the law on active employment
measures of 10th of June 2003 and the law on the responsibility for and the administration of the
active labour market effort of 10th of June 2003.
At the beginning of the project, Falck A/S made a public announcement that it would
undertake a project to redefine its CSR practice and policy. The head of Jobcenter Aarhus Nord,
part of the Aarhus county public administration, read a statement made by Falck A/S’s managing
director in a national newspaper, saying that Falck A/S had decided to take a more formalized
social responsibility, a decision taken after subtle governmental pressures on major Danish
companies. As a result, the head of Jobcenter Aarhus Nord telephoned Falck A/S and asked to be
included in the project. Falck A/S chose to include this emergent tertiary stakeholder in the
project conception process and as a result, the initially internal project of redefining CSR in Falck
A/S was expanded to include a 2 year social partnership development project which was funded
by public means.
The public partner, Jobcenter Aarhus Nord, was the initiator of the collaboration and
assumed the role of project coordinator. From the beginning, the partners agreed upon a crosssector project organization. In this manner, the partnership gave high priority to relationshipbuilding and mutuality. Furthermore, there was a mutual understanding in the partnership that, in
order to succeed, it was necessary to take the profitability approach into account in the
development of the strategy. Thus, Jobcenter Aarhus Nord and Falck A/S employees were
invited to participate in strategy development for the project. The ambition expressed was that
the internal practice should come to follow the ideal, and the strategy was negotiated and
developed through a participative/dialogical process, a process which was open to adjustments of
mutual expectations. This dialogue approach to CSR in the project conception itself made it
possible for Falck A/S to express its ideals on CSR externally—not only to Jobcenter Aarhus
Nord, but also to other stakeholders.
2
In the Falck A/S case, the primary tools for data collection were observation (e.g. seminars and meetings)
and informal conversations using broad questions. The observations were conducted over a two-year period
from 2000 to 2002. In this period four seminars, 25 steering group meetings, 11 background meetings, six
sparring group meetings, six evaluation meetings, and three to four meetings in the different working
groups were held. The researcher also participated in the negotiation process by providing advice and
opinions during the seminars and meetings. Observation notes and interview transcripts were collected into
a case file (approx. 100 pages) as material for the final analysis.
224
The social partnership between Falck A/S and Jobcenter Aarhus Nord worked hard to
develop and implement a model for social responsibility for Falck A/S. Some of the most
significant efforts in this model were:
•
•
•
Job creation/job development for Falck employees with reduced working capabilities
Development of vocational rehabilitation activities in the form of job testing, job
development or job clarification activities
Implementation of a partnership with the municipality of Aarhus to initiate follow-up
sessions with employees on extended sick leave
These initiatives both satisfied the emergent tertiary stakeholder and demonstrate how the
project was redefined through interaction. Not only did Falck gain from dialogue, but also from
resources for the project and cooperation and good will from Jobcenter Aarhus Nord and the
county of Aarhus. This project expanded from a policy and image project by the top management
to one which included the employees and other stakeholders. Employees wanted to know how to
work together with people in special consideration jobs (i.e. visual or hearing disabled coworkers), while other stakeholders wanted to know how top management will act in order to
ensure agreement between CSR and profitability through this CSR redefinition project. Falck
A/S found that it can be an advantage to answer some of these questions in cooperation with a
public partner. The county of Aarhus is, for example, better equipped to tell employees why
society needs inclusive workplaces. In addition, the public ethos of the county is useful in
communicating these initiatives to shareholders because it diminishes questioning of company
motives.
To demonstrate the sensegiving and sensemaking processes inherent in the Falck A/S
case in Denmark, Figure 4 describes contextual factors in which both Falck A/S and Jobcenter
Aarhus Nord are situated, leading to opportunities for joint sensemaking.
FIGURE 4. Sensemaking and Sensegiving consequences for Falck A/S’s CSR redefinition project
225
Figure 4 demonstrates the convergent sensemaking and sensegiving practices in Falck
A/S’s CSR redefinition project which emerged when Falck A/S opened the project conception to
a request from Jobcenter Aarhus Nord. Through listening to an emergent tertiary stakeholder and
being willing to share sensegiving and project conception with a public partner, Falck A/S gained
not only the input from the public partner, but also financial support and expertise to complete the
project. Although the project was a different one from the original conception, the effects of
transformed project achieved the original project goal, to enhance Falck A/S’s reputation as a
socially responsibly company.
In summary, both Metsa-Botnia and Falck A/S begin with projects defined by internal
sensemaking, and encountered emergent tertiary stakeholders during their sensegiving efforts.
However, their different reactions led to CSR publicity problems when Metsa-Botnia chose not to
include a tertiary emergent stakeholder in sensemaking dialogue about the paper pulp plant
project, versus an enhanced CSR image and public funding and expertise offered to help
complete the project when a tertiary emergent stakeholder was included by Falck A/S and
allowed to engage in transformative dialogue about the project conception.
Conclusion: Implications of understanding projects as
sites for CSR knowledge communication
Projects are locations of interaction between corporations and their stakeholders. As
locations of interaction, they function as a “litmus test” for operationalizing CSR. Given that
post-hoc analysis is often much easier than making decisions in a situation, we suggest that
corporations need to take CSR into account in the way they deal with stakeholders during project
conception, and offer a model which synthesizes Morsing & Schultz’s (2006) dynamic iterative
sensemaking/sensegiving CSR model with Kampf’s (2007) situated model of the corporation and
its stakeholders in a shared context. This synthesis integrates the knowledge communication
processes of sensemaking and sensegiving from Morsing & Schultz into a focused analysis of
shared context between the corporation and stakeholders. The model for sensemaking &
sensegiving in cultural contexts allows detailed analysis of diverse sensemaking/sensgiving
practices emerging from the same context. It offers a tool for project managers to extend their
understanding of emergent tertiary stakeholders who express interest in engaging in dialogue
regarding project conception with the goal of transforming the project.
Because the experiences of stakeholders regarding dialogue about the project and the sensemaking sense-giving interactions in projects are more concrete than stakeholder interactions
through surveys on corporate reputation, project conception is also a place where CSR principles
matter. When corporations consistently make sense of their projects in a way that is aligned with
primary, secondary and emergent tertiary stakeholders, they are able to present a dynamic model
of CSR in action.
Possible directions for further investigations include examining questions correlating
sensemaking/sensegiving practices in project conception with project success and resulting
publicity. The implications for management include the possibility of acknowledging CSR as not
only a policy, but also a part of knowledge communication practices in project conception.
When CSR is seen as core to sensemaking/sensegiving interactions around projects, project
managers may, at least, prevent tertiary stakeholders from creating crisis situations, and at best,
offer examples of CSR in action and fulfil Morsing and Schultz’s call for ongoing stakeholder
dialogue through consistent stakeholder acknowledgement in project conception over time.
226
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Communication Structure of the Public Sector in India:
An Empirical Analysis
Saroj Koul
Fred C. Manning School of Business Administration
Acadia University, Canada
[email protected]
The organization structures of the Central Public Sector Enterprises (CPSEs) in India reveal that initially
there was no regular department for corporate communication(/public relations) (CC(/PR)) and that the
Marketing & Sales division, the Human Resources department, or the Company Secretariat, took charge of
the public relation (PR) activities. Globalization and opening of the Indian economy in early 1990’s
heralded the arrival of major multinationals and fortune 500 companies with a strong PR base. This along
with the global communication revolution during the same period emphasized an evolutionary transition
rather than rapid internal restructuring of the CPSEs.
This study aims to measure the efficiency of CC(/PR) department of the 34 operating CPSEs concerned
with the development of the engineering industry and administratively overseen by the Department of
Heavy Industries (DHI) in India. More precisely, this study presents the chronological development of the
organization structure, functions (functional groups), budget allocations, staffing and competencies of the
CC(/PR) department in these 34 CPSEs from FY 1990-91. This study also attempts to identify the specific
organizational goals that influence CC(/PR) department structure and its effectiveness.
A review of relevant literature reveals that there is not much recorded on the history of
Indian Public Relations (PR). PR began in India over 2000 years ago when the Indian Emperor
Asoka institutionalized public information through rock edicts and official reporters (Reddi,
1997:24). Reddi maintains that India’s history in public communication spans centuries and could
be explained in three component parts and phases: propaganda, publicity and public information,
and public relations as it is known today (Reddi, cited in Singh 2000). In tracing the history of PR
in India, the struggle for independence can be considered as the starting point of modern PR in
India. The scope and applicability of public relations in its present form is a new concept though
its practice in India has been in vogue for decades (Kaul, 1988).
The 1950s witnessed the growth in export business dominated by foreign companies such
as Dunlop, Unilever (Hindustan Lever) and Philips and the family-run Indian business houses
such as the House of Tata that controlled and directed domestic trade and commerce. More and
new industrial activity developed, together with a booming print media industry. “PR by its
present nomenclature was not commonly known but practiced through in-house peripheral
activities such as government liaison, sundry assignments, publicity and support to corporate and
product advertising work”(Kaul, 1988: 20). Managing political relationships and “manipulation
was invariably a top management function with PR generally in tow” was the practice of the time
(Kaul, 1988: 20).
The 1960s witnessed rapid industrial development with much diversification. The private
sector proliferated and the public sector managed the core industry. With the Government of
India (GOI) as the sole investor in public sector enterprises (PSEs), they were answerable to the
parliament through bureaucracy. Accountability and transparency became imperative in PSE
management and PR became a necessary concomitant to public sector ethos from the very start
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(Kaul, 1988:20). Because PSEs were funded by taxpayers, they had to be accountable to the
public, which necessitated the need for having big public relations departments (Mehta 1997).
During this period, as with many other countries, most PR practitioners were recruited from the
press, which supported the main PR activity of media exposure through newspapers and radio.
Other supporting functions that contributed to organizational communication were house
journals, exhibitions, and trade fairs (Kaul, 1988: 34). Most of the early practitioners started their
careers as public relations officers (PROs) in such PSEs. PR developed in a style that may be
called the public sector style of public relations (Sriramesh 2003; Bardhan and Sriramesh, 2006);
the image and status of the profession today bears the mark of public sector philosophies. The
private sector on the other hand generally felt no such pressure because it faced negligible
competition from multinational companies in a protectionist post-independence economic
environment. Therefore, it did not feel the need to engage in dialogue and build relationships with
significant publics through the use of strategic public relations management (Sriramesh, 1996).
The 1970s saw the “economic development & infra-structural growth as part of the
expansion of the public sector industry” (Kaul 1988: 20). This impacted on the activity and
development of the private sector and primary industry, which simultaneously saw a growth in
PR. In the public sector, in-house PR developed together with the strong support by state of the
PR Society of India (Kaul, 1988: 36). Then Prime Minister, Indira Gandhi, hailed public relations
as a crucial function within management (Ghosh 1999: 67). This endorsement from one of the
most powerful leaders of modern India provided a boost to the image of PR as a communication
profession. Because of the rapid development of PR, both in-house and consultancy PR were born
and this decade also saw the development of in-house and consultancy PR working together.
Advertising agencies were developing at the same time and offered an opportunity for direct
interaction between in-house PR and private advertising agencies. Some of the finest corporate
advertising campaigns; printed material and exhibition pavilions marked this decade (Kaul, 1988:
20). At the same time, from a study on 66 PSEs, Narain (1975) found that the importance the
chief executive officer of the PSEs attached to public relations was critical to the status and
functioning of the public relations department.
The 1980s also saw a new development among the media and the journalists.
Investigative reporting became the order of the day. New and tighter regulations were imposed,
and strategic communication management was required in handling the crisis and in managing
the public image of the organization (Kaul, 1988: 38). A further significant development of this
decade was the growth of PR agencies, either as independent agencies or as extensions of global
advertising agencies. Mel-Cole, and Ogilvy and Mather were among the first multi-national
agencies in India. This was followed by Hindustan Thompsons’s IPAN and the Taj Hotel’s Good
Relations (Kaul, 1988: 21). From this point forward, the aggressive development of PR as a new
model for the service industry was well on its way. The arrival of multi-national agencies also
established compatibility between in-house PR and external expertise in the areas of finance,
legal, human resource development, and other disciplines generally retained by corporations to
augment their resources for efficiency, productivity, competitive edge, and image management.
The use of PR agencies was also viewed as an objective measure in handling sensitive issues.
While business was adjusting to the new mind-set, the professionalism and usefulness of PR as a
management tool was finally gaining ground (Kaul, 1998: 21).
The 1990s is generally referred to, in most literature, as the “watershed in the annals of
the Indian economy” (Kaul, 1988: 21). With the announcement in 1991, of its new economic
policy, the once closed economy was now open to the world, providing a competitive
environment, and accelerating movement and development on many fronts in India. Fortune
Magazine described India as “one of the five hot markets around the globe” (Fortune, June 1997
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& Oct.’1997). In the last decade, India has undergone audits on its economy, policies, operations,
style of governance, the impact of globalization, and its economic reform policies of 1991;
moreover, Vision 2020 pressurizes and creates an imposition on public relations as part of
strategic communication management (Kalam & Rajan, 1998). An accelerated need in
communication management is now evident as India emerges as a world power in economics,
trade, and manufacturing, all areas where India seeks to make its contribution to the world.
Status of the Corporate Communication profession in the Public Sector
From the above developments, it is clear that in its evolution in India, PR is gaining
acceptance and recognition. The liberalization of the market provided a fillip to the public
relations industry as well as to related fields such as advertising and marketing. According to
R.K. Baratan (1999: 44), director of the National Institute for Management Studies, Chennai, the
time has come for public relations to ‘claim its rightful place in management and administration’.
According to Subir Ghosh (1999: 63), deputy general manager for public relations for Hindustan
Paper Corporation, public relations ‘is one of the many methods by which the society can adjust
to the process of change and resolve clashes between conflicting attitudes’. It is not difficult to
understand the improvement in the status of the PR profession. What is difficult to grasp is the
chasm that this process has opened between the new generation of practitioners who follow the
philosophy of market globalization and the more traditional public sector PROs who had operated
under the socialist paradigm (Sriramesh, 2006). In the CPSEs, PR is not an appendage. In fact,
PR policies are stable, the negative stereotype of the ‘fixer’ has receded somewhat, and the
relationship between the PROs and management is continuously improving.
In this following section, we will examine the public aspect of PR and arrive at the
sample CPSEs that are being considered for this study.
A brief on the sample set used in the present study
Before independence, there was almost no 'Public Sector' in the Indian economy [1]. The
only instances worthy of mention were the Railways, the Posts and Telegraphs, the Port Trust, the
Ordnance, the Aircraft factories and few Government managed undertakings like the Government
salt factories, quinine factories, etc. After political independence, and with the advent of planning,
the Government of India (GOI) opted for the dominance of the Public Sector, firmly believing
that political independence without economic self-reliance was not in the public interest [1]. It
was believed that a dominant public sector would reduce the inequality of income and wealth, and
advance the general prosperity of the nation. The planners also seemed to believe that by placing
the management and workers in public enterprises in a position of responsibility and trust, they
would be so imbued with a sense of the public good that their actions and aspirations would
naturally reflect what was best for the country.
The Central Public Sector Enterprises (CPSEs) comprise companies wherein the equity
holding of the GOI is more than 50 per cent. As of March 31, 2007, there were 247 [2, 3] CPSEs
in its sectoral / cognate groups / navratna and mini-ratna categories of the economy, which
contributed around 11.12 percent to the GDP at market price in 2006-07 [2, 3]. The cumulative
investment in all CPSEs has grown from Rupees 29 crores [4] as on 1.4.1951 (5 PSEs) to Rupees
4, 21,089 crores as on 31.3.2007 [2, 3].
At end-March, 2007, all the CPSEs employed over 16.14 lakh [5] people excluding
casual workers [2: Economic Survey 2007-08]; nearly one fourth of the employed persons were
in the managerial and supervisory cadres. As many as 44 CPSEs are listed on the stock exchanges
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of India. Market capitalization of all listed CPSEs as a percentage of market capitalization of BSE
was 18.35 per cent as on March 31, 2007 [2, 6].
The Ministry of Heavy Industries & Public Enterprises focuses on promoting the
development and growth of capital goods and engineering industry in the country, the framing of
policy guidelines for CPSEs, and administratively dealing with 48 CPSEs [7]. Under the
Department of Heavy Industries (DHI), the CPSEs are engaged in manufacturing, consultancy
and contracting services. The enterprises produce a wide range of products ranging from machine
tools, industrial machinery, electrical equipment, railway traction equipment, oil field equipment,
textile machinery, and consumer products like watches, tea, sugar, etc. [7].
Out of these 48 CPSEs, 8 CPSEs were incorporated during 1951-1960; 9 CPSEs each
during 1960-1970 and 1971-1980; 5 CPSEs during 1981-1990; and 3 CPSEs were incorporated
during 1991-2000 [2, 3 & 7]. Thus most of these 48 CPSEs have developed along with the
economy as the country progressed. Out of 48 CPSEs, 14 CPSEs have either been closed or are
not in operation, thus leaving the DHI to oversee 34 operating CPSEs [2]. Apart from 34
operating CPSEs, there are two non-manufacturing holding companies. The total number of
employees in all the 34 CPSEs stands at 94,612 of which there are 16,998 executives. Each
enterprise structure is a multi-product, multi-location set up. About 25% of the enterprises have
set up small offices in different countries. During the year 2006-07, 15 CPSEs have made profits
and remaining 19 have made losses. The total investment in the 34 CPSEs under DHI was about
Rupees 9,589 crores as on 31st March, 2007. Out of these 34 CPSEs, 50% enterprises have been
exporting their products to different countries [2, 3].
There are four Miniratnas and one Navratna company among these 34 operating CPSEs.
The Navratna or the Miniratna status is conferred to a profit making CPSE wherein the GOI
delegates enhanced powers to CPSEs having the potential to become a global player. Under the
powers delegated to the Navratna enterprise, it can enter into technology joint ventures and effect
organizational restructuring [2]. With a view to giving greater autonomy to the public sector
enterprises, and making them accountable for the achievement of their objectives, all the 34
CPSEs signed the Memorandum of Understanding (MoU) with the GOI for the year 2007-2008.
The MoU is aimed at providing greater autonomy to PSEs vis-à-vis the control of the government
with the performance evaluation at the end of the year indicates the extent to which the mutually
agreed targets and objectives were achieved [2]. Five CPSEs out of these 34 CPSEs received
“Excellent” rating for the year 2007-08 [2].
Also, the 247 CPSEs are categorized into four schedules, namely ‘A’, ‘B’, ‘C’ & ‘D’;
categorization being based on norms/criteria such as quantitative factors like investment, capital
invested, net sales, profit, number of employees and qualitative factors like national importance,
complexity of problems, level of technology, prospects for expansion and diversification of
activities and competition from other sectors, etc. At present there are 57 enterprises in the
Schedule ‘A’; 75 in Schedule ‘B’; 50 in Schedule ‘C’; 6 in Schedule ‘D’ and the rest 60 are
uncategorized PSEs. Of these, 34 CPSEs were examined for this study in this breakdown: 3
CPSEs under A; 10 under “B”; 9 under “C”; and the rest under the “D” category of schedules.
Thus the sample taken for purposes of our study is quite broad and reflects most of the
salient features of the Public Sector in India. This study was undertaken in the third quarter of
2007-08 using the convenience sample of 34 select CPSEs described above. Key personnel (or
designates) in the corporate communication (/public relation) (CC(/PR)) departments were
contacted to take the survey. The nomenclature of CC(/PR) is used to coordinate with the CPSEs’
existing department under study. In most of the CPSE’s, this department is identified as PR
Department, Publicity Group, Public Relations Group or Government Relations, while in two
CPSEs it is called as CC&PR and in only one company it is identified as corporate
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communication department. The questionnaire developed in English was mailed online
requesting participation. After 21 days the questionnaire was sent again to those in the list who
had not responded. Follow-up was done via telephone and email. Usable responses were received
from 24 respondents yielding an effective response rate of 70%. As part of the data collection and
analysis procedure, the names and affiliations of the respondents were held in strict confidence,
and were not associated with individual responses.
Profile of the respondents
Of the 24 professionals participating in the survey, 21% (N= 5) of the respondents were
in the age group 20–30, 62% (N= 15) were aged 30-45 and 17% (N= 4) were in the oldest age
group 45–60, and most of them were males (83%).
Nearly 75% (N= 18) of the respondents had post-graduate degrees; about 17% (N= 4)
were graduates and 8% (N= 2) had doctoral degrees. Their undergraduate majors range across
management, engineering, computer science, language studies and mass communication.
One third of the respondents (N= 8) had work experience of less than 5 years; 42% (N=
10) had experience of 5–10 years; 17% (N= 4) had experience of 11–20 years; and 8% (N= 2)
had experience of 20–40 years.
Two thirds (N= 72) of the respondents described the nature of their job as managerial and
about one third (N= 33) as technical. Half (N= 12) of the respondents were transferred to the
communication department and did not have a background in language studies or mass
communication.
Method and Results
Instrument
Cameron, Sallot, and Weaver-Lariscy (1996, 1997, and 1998) developed and tested a
series of 45 items that operationalized the PR professional behaviour. Forman and Argenti (2002)
report a tight connection between strategy and communication in “Corporate Communication: At
the Center of the Global Organization” and present best practices impacting the bottom line in six
global diverse industries. Also, the questions sought in the ‘China Benchmark Study – 2005,
2006, 2007’ by Wang and Goodman — Indian CPSEs moving fast away from the socialistic
paradigm and establishing themselves in the global dynamic market place — were found topical
for this study. Specifically, 25 items that were found appropriate in the Indian public sector
context were selected from the above mentioned studies and categorized into broad areas.
Results
The data collected was analyzed using SPSS 10.0. For each of the performance standard
variables, mean scores (general mean of GM) were computed for the entire sample in aggregate
as well as for individual participating CPSEs separately.
Present Name of the Department – clarity between PR and CC and preferences
Respondents (GM= 4.23) indicated that the name of their department has not changed
since its inception and nearly half (GM= 3.04) agreed that there has been at least one instance of
change in the reporting of the division during 1990-2005. The term “corporate communication”
was new to most of them (GM= 4.21). Only a handful had a clarity between the terms “public
relations” and “corporate communication” (GM= 2.19). Most (GM= 4.58) shared a willingness
by their department to change its name to Corporate Communication from the present (named as
PR Department, Publicity Group, Public Relations Group or Government Relations); however,
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the respondents (GM= 2.54) were not sure of their management’s keenness to rechristen the
department. Half of the respondents were clear (GM= 4.53) on the internal reporting lines within
the department. Executives strongly agreed that the designations (GM= 4.83) of the personnel
employed at the senior management cadre were in line with the company designations like
manager CC(/PR), general manager CC (/PR). Within a multi-location, multi-product enterprise,
respondents (GM= 3.32) supported a common department name and similar reporting structure.
Role and Responsibility
Respondents strongly agreed (GM= 4.55) that the CC(/PR) practitioner should help an
organization respond to its constituents. He/she had a responsibility to serve as a liaison between
an organization and its stakeholders (GM= 4.35); but did not agree to the same extent that
CC(/PR) practitioners have a strong influence over constituent satisfaction (GM= 3.27).
On the subject of ethics in CC(/PR), although the practitioners realize that professional
ethics codes lead to more socially responsible actions by practitioners (GM= 3.81), they only
marginally agree that the professional organizations’ codes of ethics are appropriate (GM= 3.19).
Respondents disagree that ethics committees of the organizations properly enforce the ethics code
(GM= 2.79). Respondents marginally disagreed that in some instances their organization had
found it necessary to deceive their stakeholders (GM= 1.27).
How strategic is the field?
Respondents strongly believed that CC(/PR) department should strategically set goals and
objectives prior to implementing a campaign (GM= 4.68); they should have direct contact with
the CMD/CEO [9] (GM= 4.31) and their activities are instrumental to the success of their
enterprise (GM= 4.13). Respondents (GM= 4.88) indicated presently no direct reporting to the
CMD/CEO of the company and less than one-third (GM= 4.33) never met their functional
director. Executives disagreed that management perceives the CC(/PR) role as more technical
than managerial (GM = 2.63) and that CC(/PR) is a part of the decision making team (GM =
2.92). Hence, CC(/PR) is still considered an operational function by most organizations and
majority feeling is that the CC(/PR) planning has top management support (GM= 3.88) at the
time of budget approvals. Also, the CC(/PR) function is indispensable, with the executives
strongly believing (GM= 4.39) that it would continue to receive support in the likely event of a
budget decrease. Respondents strongly agreed (GM= 4.19) that the existing measurement systems
adopted by their company for individual executives, and the departments’ aggregate performance
level within the organization, are affecting the bottom line of the company, and the MoU
performance evaluation at the Ministry level. The result is one that provides greater autonomy
and enhanced powers to CPSEs, spurring them on to become a global players. This shows that
the CC(/PR) function is an essential part of the management set up.
Functions of CC(/PR)
Published material including annual reports, news clippings, website information,
presentations and other public documents on the 34 CPSEs was studied. Vital statistics for two
companies during the period 1971-1990 was not available. A list of 30 activities being carried out
by the CC/PR departments within the public sector realm, were identified. They also included
activities like reception, ticketing and transportation for VIPs [10], employee welfare, community
development, telecommunication and courier, etc. These activities of the 1970’s and 1980’s are
still being carried out today by their CC/PR departments.
Respondents were asked to prioritize from this list of 30 activities, ten important
functions that they would like to have as part of their organizational structure at the divisional
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level. Findings collectively reveal brand strategy, media relations, internet communications,
corporate identity, government relations, investor relations, corporate philanthropy/citizenship,
internal communication, crisis communication, and executive communiqué viewed as the key
functions 75% (N= 18) of CC(/PR) department. Functions typically associated with public
relations, such as internal, executive, and crisis communication and corporate social responsibility
were lower down the list. Five functions viz. issue management, ethics code, labor relations,
hospitality, and employee welfare received less that 42% (N= 10) response.
However, while prioritizing (GM= 4.13) Internet communications as one of the major
activities instrumental to the success of their enterprise, nearly half of the respondents indicated a
willingness (GM= 2.48) to take care of the associated IT infrastructure (Newman, 2001; Rator,
2001) provided that a specialized training in website management and Intranet communication
(Reeves et al., 1996; Kent et al. 1998, Balmer et al., 1999) is given to them. 17% (N= 4) of the
enterprises do not have a website as yet or the employees an official company e-mail.
Most of the companies (GM= 4.00) had a strong corporate identity system in place and
this was accomplished in the last 10 years. The invariable use of approved slogans in all
advertisements was identified as a unique feature of these CPSEs. This is consistent with the
drive towards branding by the CPSEs.
Two thirds of the respondents (GM=3.79) agreed to have a dedicated function for crisis
management. Respondents strongly agreed (GM= 4.23) that with the support of the other location
groups they have been able to successfully thwart crises faced by the company.
Nearly 75% respondents strongly agreed (G= 4.04) utilizing services of third party
vendors for select CC(/PR) functions like brand strategy, public relations, internet
communications, corporate identity, corporate philanthropy/citizenship and crisis communication.
Respondents strongly believed (G= 4.58) that they should continue to enhance their skills
through training and approved (G= 3.58) of evaluating training-effectiveness. Nearly 50%
respondents strongly agreed (G= 4.45) undergoing self-identified training, while the rest do not
favour leaving it up to the individual to seek training on updates on new technology in the field
(G= 2.95).
Organization structure of CC(/PR)
The last three questions were directly related to the prospective organizational structure
of the CPSEs, and the specific organizational goals that might influence CC(/PR) department
structure.
What is the preferred reporting structure of the department with the CMD/CEO?
The preferred organizational structure of the CC(/PR) department in the public sector, it
being mostly multi-unit, multi-product, was found to be both centralized as well as decentralized.
This helps the organizations to speak with one voice (GM= 4.35).
What should be the right mix of sub-groups in a CC(/PR) department?
With ten functions identified as part of their organizational structure at the divisional
level, respondents strongly agreed (GM= 4.00) to have 5-6 sub-groups, each with a minimum of
two members. For example, brand strategy, corporate identity and corporate philanthropy/
citizenship to be put in one sub-group; internet communications, internal communication and
executive communiqué as one sub-group. A quarter of the respondents preferred a matrix style of
organization.
How much involvement should third party vendors be permitted in CC/PR functions?
Seventy-five percent of respondents agreed to utilizing services of third party vendors for
select functions. There is strong belief to continue to enhance their skills, especially employees
getting transferred from non-CC functions. Respondents strongly preferred (G= 4.34) supervisory
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roles to themselves once the job is delegated to third party vendors, and would be critically
monitoring major mile stones.
Discussion
Some of the findings of the present study:
Today the term “public relations” is in the public domain and anyone without training,
education or ethical behavior, is welcome to use it to describe what he or she professes to do
(Bernays, 1993).
The term “corporate communication” is strategically aligned with the organization’s
vision and mission statement. Hence it is tightly connected to strategy implementation and also to
strategy formulation and development; thus, helping the organizations to rise above the role of the
‘image maker/enhancer’. It focuses on areas crucial to the growth of the organization through its
support to marketing and commercial functions; enhances the company image, and provides
correction of negative perception. The public sector, considered the ‘engine of growth’ with its
management-assigned responsibility and trust, would reflect what is best for the country. In some
of the public sectors, the CC(/PR) executives with highest credibility are sought for advice about
all aspects of a company's business model and not just communication issues. Their advice and
views were solicited by the CMD/CEO while considering issues of corporate reputation, the
impact of the broader social and political environment on the company's future, and
organizational re-design. Five companies held a top-management workshop addressing the needs
for an internal reorganization of the company.
The present study identifies the key acceptable PR roles of the public sector as ‘to
communicate for the desired perception amongst target audience’ and ‘to sustain brand’.
This renewed emphasis on strategy has major implications for agencies wishing to work
for companies as well as the kinds of people who will be involved in running such departments in
the future. If CC(/PR) have to become strategic and be integrated with top management functions,
then the professionals need to have grounding in general management. The educational
background of the prospective executives being recruited to the CPSEs will become the order of
the day. Agencies willing to get associated as third party vendors will have to have proper
accreditation.
With accountability from the CPSEs well established, corporate communication (/public
relations) should also have measurable objectives and the CPSEs willing to invest resources to
assess the return on investment in the field.
The best reporting structure for the CC(/PR) function is directly to the CMD/CEO in a
centralized and a decentralized layout. It symbolically sends a signal to the rest of the
organization that communications is important. This helps the organizations to speak with one
voice. Also, to hire the best executives, the reporting structure is an important consideration for
recruitment to the CPSEs.
A very positive revelation for the field is that professional standards have been found
high regarding understanding of the roles and responsibilities of CC(/PR) professionals, and
continue high throughout development and training. These positives will go a long way in
enhancing professionalism in the field in times to come.
The organizations studied here are concerned with the development of the engineering
industry in India. The industry is booming and the contribution to the national exchequer is
substantial. A robust CC(/PR) department has led to several advantages — constant
communication, global audience, audience feedback, two-way communication, cost-effectiveness
and efficiency. In short, corporate communication departments have speeded up the globalization
process beyond imagination.
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Conclusions
In the last decade, India has undergone audits on its economy, policies, operations, style
of governance, impact of globalization, and its economic reform policies of 1991; moreover,
Vision 2020 pressurizes and creates an imposition on public relations as part of strategic
communication management (Kalam & Rajan, 1998). An accelerated need in communication
management is now evident as India emerges as a world power in economics, trade, and
manufacturing, all areas where India seeks to make its contribution to the world.
Public relations in organizations is gaining acceptance and recognition. In the public
sector enterprises that contributed around 11.12 percent to the GDP at market price in 2006-07,
PR initially operated under a socialist paradigm. During the mid-70’s, PR activity was hailed as a
crucial function within management (Ghosh, 1999: 67). At the same time, it was found that the
importance with which the chief executive officer of the PSEs attached to public relations was
critical to the status and functioning of the public relations department (Narain, 1975). The arrival
of multi-national agencies also established compatibility between in-house PR and external
expertise in the areas of finance, legal, human resource development, and other disciplines
generally retained by corporations to augment their resources for efficiency, productivity,
competitive edge, and image management. As a discipline, CC in India is new but is taking root
quickly. As opposed to the old ‘PR’ in the regulated economy, which was little more than a
cover-up, CC is coming into its own as a corporate marketing function. In its new avatar, the
function combines media relations, investor relations, and corporate branding and works closely
with the CEO/CMD to articulate and communicate the organizational vision to external and
internal stakeholders.
In many PSUs, the development of full-fledged corporate communication Departments is
still at a nascent stage while in others this activity is streamlined with the company’s vision and is
well ahead in its maturity as a division. In this study, it has been found that in CC(/PR)
departments there are 5-6 major subgroups, the strength is approximately 10-15 executives, with
a mix of educational background and the budgets assigned to the department varies between 1-3%
of the annual budget. CC promotes the company as a product. It defines the key messages, sets up
processes for dialogue, frames disclosure policies, and uses the media, the Internet, meetings,
conferences and other channels to convey the message.
As such, corporate communication is critical for any organization. It is a strategic
management tool, which synchronizes all intentional forms of internal and external
communications, thus projecting a favourable image towards its major target groups. It is thus the
framework in which the various communication specialists in an organization integrate the
organizational message — the integration that will eventually help to define the corporate image
and improve corporate performance.
With the streamlining of activities during the past decade, the corporate communication
function integrated with the organizations’ Strategic Plan, thereby continuously improving its
communication to the stakeholders. Some future research questions worth exploring, with respect
to the Public Sector Enterprises (PSEs) in India, include:
a) Is a stakeholder orientation necessary for a PSE in other sectors?
b) What are the attributes associated with high-performing CC departments within the PSEs?.
Acknowledgements
The author is thankful to Acadia University for the Faculty of Professional Studies grant to
present this paper at the CCI 2008 Conference. Mr. Shivrup Tiwari, Vice President, Public
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Relations Society of India, helped in providing valuable insights for this study. The author
also acknowledges company officials in the CC(/PR) departments who participated in surveys
and answered the questionnaires.
End Notes
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Evolution of the Public Sector in India available at
http://www.divest.nic.in/manual/chap3.htm (accessed January 15, 2008)
Indian Economic Surveys: 2005-06, 2006-07 and 2007-08.
Annual Reports of the 34 CPSEs: available published organization charts for 1970-71, 198081, 1990-91 & 1991-92; 2000-01 to 2006-07.
Indian Rupees 4.4 Crores = One Million US Dollars
One Lakh = 1,00,000
Union Budget 2008-08: available at http://indiabudget.nic.in/ (accessed march 15, 2008)
Annual Reports of the Department of Heavy Industries: 1998-99 to 2007-08 available at
http://dhi.nic.in/annual.html (accessed January 25, 2008)
Indian Economic Survey 2006-07: mid year review http://dpe.nic.in/midyear0607.pdf
CMD/CEO = Chairman & Managing Director / Chief Executive Officer. Most of the CPSEs
studied have the head of the organization named as Chairman & Managing Director.
VIP = very important person can be a member of the top management team of the CPSE or
from the Ministry or the Government of India.
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Saroj Koul
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The Campaign to Save Children's Television:
Strategies and Impact
Rachel Kovacs
Department of Media Culture, College of Staten Island, CUNY, USA
[email protected]
Carole Tongue
Sovereign Strategy, UK
This study examines activism, by both individuals and groups, on behalf of quality, indigenous children's
programming in the U.K. British children's television is currently in the throes of an unprecedented major
funding crisis, which has severe repercussions for the production of such programming. In addition, the
withdrawal from production and broadcast of children's programs by ITV, the major national commercial
channel, has exacerbated an already diminishing showcase for reflection on British life and culture, in all
its diversity. Across Britain, individuals and local and national groups have called for a reevaluation of
children's TV needs, the program output currently available to them, and that which is ideally suited to
those needs. Ofcom, the national communications regulator, and the House of Commons have both
weighed in on the issue. The former's nation-wide study, report, and consultation was at least, in part, a
result of concerted efforts by individuals and NGOs across nations (Scotland, Wales, Northern Ireland),
sectors (voluntary, industry, and academic), and economic and educational strata. The paper's central
focus is the relationships, alliances, and other public relations strategies these NGO and other activists
use. Their efforts pave the way for policy change in an area of immense social consequence for the
cultural identity and engagement of children and youth in the U.K. and for the future of that society itself.
If children are the key to the future, then we must safeguard their welfare by providing
audiovisual content that will nurture their minds and spirits and prepare them to take their places
as responsible citizens in society. So argue non-governmental organization (NGO) activists and
interested others throughout the U.K. They are responding to the current, acute crisis in British
children's television, where production is largely revenue-driven and most broadcasters have
backed away from their historic public service obligations. In general, activists’ expect
broadcasters to fulfill these obligations, which Kovacs (2006, 2007) has associated with corporate
social responsibility (CSR). As per the 1991 Broadcasting Act, companies bidding for a
commercial broadcasting franchise had to demonstrate that their programs met a "quality
threshold" (Parliament, 1990).
As the advertising revenue of ITV, the commercial network has declined over the years,
and as Childs (2008, of Save Kids' TV [SKTV]) noted, lighter-touch regulations have been the
norm. Broadcasters have sought to pull back from public service obligations. Consequently,
SKTV's position, said Childs, is that there needs to be a source of public funding for producing
quality, indigenous, children's broadcasting across the U.K. Not all British broadcasters agree
with this position, nor are they equally willing to finance such productions themselves. Although
Childs maintained that commercial broadcasters' obligations have been more specifically terms
under which they are licensed to broadcast. The fact that provisions of the 2003 Broadcasting
Act, as it concerns children, are voluntary, rather than obligatory, and therefore, Childs has not
characterized them as CSR. Nevertheless, Kovacs (2006), in an exploration of frameworks and
exemplars for CSR, posited that voluntary benchmarks are pushes from within an organization,
241
Rachel Kovacs and Carole Tongue
rather than from outside it, and thus are at a higher level. As such, Kovacs would argue that
broadcasters' compliance with norms for quality children's broadcasting constitutes CSR.
This paper documents the public relations efforts in the U.K. of a handful of individuals,
various industry groups, grassroots activists, and broadcasting-centered groups to elicit policy
changes and subsidies from broadcasters and ultimately, government, for ongoing, indigenous
children's television production. It will identify the main policy issues, the players who bring
them into the public sphere for debate, and those empowered to make change. It will explore the
relationships built around shared goals of quality, indigenous British programming, including the
alliances and tactics stakeholders use to draw attention to their agendas and achieve their goals.
The study tracked a public relations response to a crisis in British children's television,
which, unlike toxic waste, natural disasters, pandemics, and terrorist attacks, would not rank on
most people's top ten crises list. Few citizens, even parents, would prioritize kids' TV over lifethreatening phenomena. Fewer would contemplate that a "short-term" dearth of appropriate
programming might result in the long-term impact of foreign content and lack of indigenous,
quality drama and other genres that reflect a multicultural British experience. Thus, the failure to
perceive such a crisis poses a formidable barrier to an effective public relations campaign and
transcends quantity, genres, placement, or audiences of children's programs. The broader concern
is the issue's link to the fundamental value placed on public service broadcasting, its role in
shaping future participants in civil society, and its provision of the skills needed to deal with a
complex, evolving, and highly diverse country. The historic mandate of the BBC, as per its
founder, Lord Reith, has been "to inform, to educate, and to entertain," (BBC, 1992). That public
service ethos was never limited to the BBC (although the lion's share of the burden for sustaining
children's broadcasting has fallen to it) but its implementation across all channels is now at risk.
Recent Background
Less than one year ago, Britain's independent, commercial television company (ITV)
announced it would stop producing and broadcasting kids' TV shows to preempt children's
programming for more commercially viable adult shows. Not coincidentally, this news also
piggybacked on a new regulation that prohibited advertisements of junk/snack foods during hours
designated for kids' programming. A number of activist groups, including Voice of the Listener
and Viewer (VLV-see below) and the European Alliance of Viewer and Listener organizations
(EURALVA) had lobbied for food-centered restrictions in the U.K. and Brussels.
The
commercial broadcasters were already competing for a shrinking pool of advertising pounds and
the new ban exacerbated an already difficult situation. Some saw ITV's move as justification for
eliminating a less-profitable genre and a "way out" from its public service obligations.
Thus, these changes go beyond just revenues lost and programs slashed; they undercut
broadcasting's role in serving the public interest and meeting the informational, educational, and
entertainment needs of citizens (Crawford Commission, 1926) to keep them civically engaged,
provide social cohesion, and sustain democracy. Its obligations to children should be to assist
them, as future citizens, in developing an ethos and perspectives that will have a positive impact
on British society for generations to come. But the means to fulfill these obligations seem to have
been pulled out from under the broadcasters. According to Voice of the Listener & Viewer
(VLV), this situation has been exacerbated by the BBC’s recent statement that it would cut 5% of
its children's programming budget for six years. To activists, this is insult after injury, given
ITV's decision, above.
These developments in children's television follow on the heels of Palmer’s (2006)
widely acclaimed book. Toxic Childhood underscores the effects of today's culture and new
242
The Campaign to Save Children’s Television:
technologies on children and their learning. Its documentation of negative impact makes these
NGOs’ case for purposeful, quality, indigenous programming all the more compelling.
Pressure groups and advocacy
British groups have a strong record of advocacy around broadcasting issues, going back
to at least the Television Act itself. ITV's beginnings in 1956 were preceded by a vigorous
industry campaign (Wilson, 1954) but the first broad-based activist push was led by Mary
Whitehouse in the late '60s. Her following of church groups, outraged mothers, and concerned
others rallied as National Listeners and Viewers Association (NVALA, later Mediawatch UK) a
conservative watchdog for taste and dignity (Kovacs, 2004). Since then, activists of many
persuasions have continued to push for policy and programming change.
The literature of advocacy suggests that effective rhetoric used in a public interest
campaign contextualizes and frames that campaign's agenda and strongly contributes to its
success (Wallach, Dorfman, Jernigan, & Themba; 1993, Toth & Heath, 1992). Such public
interest campaigns frame the problem, whether AIDS, underage drinking, drug abuse, or other
public health issues, as stemming from flawed social policies, rather than from individuals'
behaviors.
Setting the Stage for Broadcasting Activism
Broadcasting has an incontrovertible influence, as a public good/interest, on public
opinion and cultural norms. Public service broadcasting (PSB) advocates continue to use rhetoric
appeals to the reader, viewer, or listener that identify potentially threatening program or policy
changes--either to the moral fiber, civic participation, cultural integrity or other "sacred cow" of
British citizens. Mary Whitehouse (National Viewers and Listeners Association, now
MediawatchUK) suggested the former; Jocelyn Hay (VLV) focused on the latter. Rhetoric used
by children's television activists in their campaign will appear below.
Coalitions were another strategy historically employed by many British pressure groups.
More often than not, these alliances of groups or individuals and groups were ad hoc and issuebased. Nevertheless, a few permanent coalitions existed. Notable among them was the Deaf
Broadcasting Council, which represented deaf groups throughout the U.K. Public Voice (2008), a
coalition of voluntary groups unrelated to broadcasting, Campaign for Quality Television, a
producers' group, VLV, and other activists, rallied about the future of the BBC, the Royal Charter
Review of the BBC, and the license fee that funds it. Kids TV alliances are cited below.
Activist NGOs were also adroit at navigating the political system. They employed
celebrities, frequented party conferences and invited key politicians and civil servants to public
media-centered forums, The "good and the great," in turn, provided a voice for the activists by
means of questions posed in Parliament, motions, and other legislative maneuvers. This is what
Mills (1998) referred to as a “virtuous circle.” These NGOs also cultivated relationships with key
journalists of the broadsheet media pages. A comprehensive list of strategies/tactics is listed in
Results, below. What follows is an overview of content, methods, and an historical retrospective.
Methods
This study builds on 12 years of research into British broadcasting activism. The initial
focus was on six activist groups that sought greater accountability from broadcasters (Kovacs,
1998) and grew to encompass their regional and global influence, the future of public service
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broadcasting, access to digital services, cultural representation in England, Scotland, and the
North, and similar issues. Heavy reliance by activist groups on relationship building and
relationship management was one of the most significant findings in the early research (Kovacs,
1998). Public relations research has increasingly emphasized relationships (e.g., Ledingham and
Bruning, 2000). Subsequent studies of British activism corroborated the value of relationship
outcomes for NGOs’ agendas. The campaigns of VLV, a major participant in the children's
television campaign, earned it visibility, credibility, and high marks for good relationships.
Subsequent follow-up studies tracked the NGO literatures and characteristics that these British
NGO activists had in common with others (Kovacs, 2006, Kovacs, 2007). They confirmed what
Castells (1999) had suggested: When the nation-state fails to or is incapable of addressing certain
issues, NGOs step in to fill the vacuum. Doh (2001) had observed that the rising power of NGOs
in a triangle with business and government meant that they could not longer be brushed aside.
This was clearly the case with broadcasting NGOs, which like all such organizations, sought to
increase targets' corporate social responsibility (CSR). The research then expanded to rubrics and
frameworks for CSR and what NG0s could learn from them. Recently, the focus broadened to
cultural considerations in the U.K., where the nations’ (Scotland, Wales, and N. Ireland) and the
English North’s traditions set them apart and warrant preservation and government subsidy.
The current focus on children's TV
This paper’s focus is drawn from in-depth interviews with broadcasting executives and
advocates, first-hand accounts of campaigns, consultations, and tactics, articles from the
broadsheet press, and other sources. Compiled over a six-month period, the data were provided,
in large part, by the actors themselves. Among these NGOs are Voice of the Listener and Viewer
(VLV), Save Kids’ TV, a host of industry and voluntary groups, and concerned individuals. In
addition, the authors consulted online, including government, documents, coalition members'
Web sites, campaign coordination meeting notes, emails circulated among campaign members,
Ofcom's (the communications regulator) review of issues and survey data, and Parliamentary
records. Although Ofcom's data collection transpired within a six-month period in 2007, its
grounding was in public service performance norms originating with the BBC, above.
Results
The NGO activist groups cited above, together with prominent, concerned individuals,
positioned this issue as a crisis of national proportion. Their goal: to preserve endangered, quality
indigenous children’s television. They have sought to foster programs that bolster children's selfesteem, pride in diverse British cultures, and provide a foundation for good citizenship. The
BBC, the world's most highly-regarded public broadcaster, may be pushing beyond its capacity in
producing such programs. The authoritative 2007 report on U.K. children's television by Ofcom,
the national communication regulator, describes the state of U.K. children's television, changes in
the production marketplace, and if and how output meets the expectations of parents and children
and the CSR obligations of broadcasters.
Results of the Ofcom Report
The Ofcom report disclosed that only 1% of 113,000 hours of children's television
programs is British in origin. Although there is more children's television than ever available on
the digital channels, the proportion of U.K.-generated programs continues to shrink. Of the 17%
244
shown that is British in origin, much is reruns (Childs, 2008). Some in the advertising industry
have blamed Ofcom for precipitating the children's television crisis but the fact remains that
without funding provisions, new children's programs will be all but stymied. Ofcom refuted this
charge, pointing to a reduced pool of investment in children's TV since 2002 and a relatively
small impact of advertising revenues on that genre. The Ofcom report (2007) was followed with a
seminar on the future of children's programming sponsored by and featuring panels of children's
TV producers, broadcasting executives, activists, a media analyst, a journalist and a House of
Lords member.
Reaction to the Ofcom Report
Author Philip Pullman commented that the crisis was "…the result of dogmatic insistence
that the market knows best." "The problem can only be cured by telling the market who is boss,"
he said. "I hope the government will…safeguard…imaginative, witty, and beautiful television for
children. Why should they have…anything less?
Public relations has been instrumental in generating a nationwide dialogue about the
future of U.K. children's television at a time when revenues for production are at an all-time low
and where commercial broadcasters, dependent on advertising, have lost all incentive to produce
what NGOs and many parent think children should be able to watch.. Notably, in promoting
children’s needs, activists have aimed well beyond the press blitz surrounding the Ofcom's report.
The campaign says much about the ability of credible NGOs, coalitions, a well-coordinated series
of forums, political lobbying, Web-based petitions to Whitehall, and other key players and tactics
to catalyze a major government review and public consultation on this issue. In this case, it
heralds an incontrovertible link between public affairs, public relations, CSR from broadcasters,
and democratic processes that sustain civil society as reflected below.
House of Commons Select Committee Report
The involvement of Parliament in the debate attests to the significance of this policy issue
in the national consciousness, although the average British citizen is far from fully engaged in the
debate. The report (Nov. 6, 2007), which was submitted by the Department of Culture, Media,
and Sport (DCMS) Select Committee, stems from members' reactions to oral and written
testimony from NGO groups. It covered five key areas of public service content, of which
children's television was but one. Its message was:
We believe that a mix of imported and UK-produced content is beneficial for UK
children…we believe that U.K.-produced content plays an important role in maintaining
children's cultural identity. We note the commitment to children's programming of the
BBC, ITV, Five and some digital multichannels and we encourage these broadcasters to
continue to contribute to the production of U.K. originated output…we believe that the
financial
pressure
likely
to
face
the
main
current
commercial
commissioners…interventions which will restrict advertising revenue…uncertainty about
the level of UK produced children's content…We believe that it…is important that there
remains a significant amount of UK-produced children's programming on commercial
channels as well as the BBC… We therefore recommend that the Government and
Ofcom…identify how much UK children's production…is necessary and…If …a
shortfall is envisaged, we believe that children's programming should be eligible for
assistance
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ITV and public service obligations by commercial broadcasters
Magnus Brooke (2007), head of public affairs at ITV, discussed the above concerns about
commercial TV's children's output. He confirmed ITV’s dilemma in competing for shrinking
advertising funds in a multichannel environment. ITV's revenues had declined so much that it
could no longer afford children’s programming on terrestrial channels, he said, but he hoped that
children’s CITV channel would continue to expand. Nevertheless, as a commercial institution,
ITV’s primary responsibility was to its shareholders, he maintained. Despite outside pressure, this
seemed to be ITV’s bottom line.
Public Relations Strategies
Strategies used by groups and individuals on behalf of quality, indigenous children’s TV
reflected those cited in the original study (Kovacs, 1998). They included rhetorical framing, as it
related to media advocacy (Wallack, et al, 1993), lobbying, letter/petition writing, working,
consultation, and written/oral public testimony. The most noticeable difference with the 1998 data
was the extent of Internet/Web based activity, which was used for mobilization, exchanging ideas
and documents, and correspondence among group members. Most activists used face-to-face or
voice-to-voice-based communication. This reinforced the notion that in the U.K., the NGO
agenda is still largely interpersonally advanced and its progress still heavily dependent on
relationships and networking. The first step to success in this area is identifying key players.
Relationship building and strategic targeting of Government and civil servants
At a Jan. 31, 2008 meeting of SKTV and other group members and individuals, Tongue
suggested three particular foci for targeting key individuals: 1) the Department of Media, Culture,
and Sport (DCMS) Convergence Think Tank (a review of digital services and domestic
programs); 2) the House of Lords; and 3) senior civil servants regarding the pending Review of
Childhood. Activists' ancillary efforts might include, respectively, a SKTV paper to the review
body, a SKTV message to Lords, and a note on the centrality and influence of television for kids.
Coalitions, their constituent members, and their strategies
A number of coalition members strengthened ties with the press and those empowered to
make changes. They also organized conferences and forums to which politicians, civil servants,
journalists, and other opinion makers were invited. Coalitions used all tactics at the disposal of
individual groups. Hutt (2007) pointed out how, in May 2007, VLV was "creating a coalition of
concerned individuals, opinion formers and representative organizations, to act as a catalyst for
ideas and actions." Among the opinion formers was Lord David Puttnam, renowned producer.
Save Kids' TV. This coalition of producer-and broadcasting-based pressure groups and
notables, coordinated by Childs (2008), mentioned above and formerly a kids' TV producer and
now a consultant, and chaired by Anna Home (2008), former head of BBC Children's Television,
draws support from distinguished individuals like author Philip Pullman, author of His Dark
Materials trilogy (Guardian, 2007), like-minded broadcasting groups like VLV, the International
Broadcasting Trust (IBT), the U.K. Coalition for Cultural Diversity of Expression, those in other
areas of the arts and literature (e.g., Society of Authors [SA]), the Writers' Guild of Great Britain)
Authors' Licensing and Collecting Society (ALCS), industry groups like Equity (Actors), The
British Academy of Film and Television Arts (BAFTA), Producers' Alliance for Cinema and
246
Television (PACT), and Broadcasting Entertainment Cinematograph and Theatre Union (BECTU
), the Directors' and Producers' Rights Society (DPRS), The Association for Children's Arts
("dedicated to the promotion, development and celebration of all the creative and performing arts
for and with children…" [ACA, 200) and the Musicians' Union (MU).
A Sampling of Save Kids TV Campaign Coordination and Outreach
Campaign coordination meeting notes document the plurality of voices involved in the
campaign (see above), the careful attention paid to their suggestions, and the multiplicity of
tactics suggested and used at any given time. These included lobbying the Parliamentary
Performers and Writers All Party Group. At a recent annual lobby/social event, performing artists
had "buttonholed politicians" In the previous Parliament there had been an Early Day Motion
(EDM #1375)) on children's television (below).
VLV. A broad-based, all-issue membership-based group founded by Jocelyn Hay in 1983
to save BBC Radio 4, it rapidly expanded to television using a range of tactics in defense of
public service broadcasting. In 1994, it created the VLV Forum for Children's Television to deal
with the attendant issues. It holds conferences and lobbies broadcasters, government, and Ofcom
regarding the vital role of children's programming in kids' lives. According to Hutt (2007), VLV
deserves much of the credit for getting the Ofcom review in motion. VLV’s Hay (2008) herself
added that the combination of overtures she made to key civil servants and the conference and
other events VLV organized "put the issue on the public agenda" for Save Kids' TV to promote.
Her main regret in this realm is that producers did not heed VLV's warning about the dangers to
children's programming earlier, when it would have been less difficult to remedy. Her concern
underscores the need for proactive rather than reactive public relations and issue management.
Rhetorical framing of issues
Activists have feared that budget cuts will deprive U.K. children of the pluralistic, quality
domestic productions at which the British have distinguished themselves. VLV (2007) framed its
agenda as follows: “It is vitally important therefore that we not only alert all those with an interest
in the welfare of children to the dangers that these cuts pose but also encourage them to engage in
debate at this time." Similar rhetoric was used Hay (2007b) at VLV's November Children’s
Television Conference in London. "Our children are our future…We must persuade the
politicians that a viable means must be found to provide programs that nurture them mentally,
emotionally, and culturally," a position explicated in earlier remarks (2007a):
Our children need to be able to enjoy a wide range of programming which reflects their
own rich heritage of language, literature, speech, history, and values. But traditional,
high-quality UK-originated children's television as we have known it is under serious
threat from changing economics of the digital era. With the right mix of culture, quality,
and diversity, good television stimulates mental and social development, and plays a
critical role in inspiring the children of tomorrow…
Tongue's (2007) letter to the Guardian, written with regard to the suspension of the kids’
program BBC Jam (which was a government-contracted delivery by the BBC of a digital
broadband curriculum [Childs, 2008]), argued that "At a time when government education
priorities focus heavily on disadvantaged young people, there has been a failure to defend an
individual public space and resource that would give access to those, particularly on low incomes,
to …curriculum support."
247
Lobbying
Hutt (2007) noted that, "As a result of its lobbying, VLV can claim much credit for
Ofcom's decision to launch its current review of the state of children's television in the U.K.
VLV strategies heavily involved working with government ministers and civil servants to open
the issue for debate in Parliament, government-based conferences, and in dialogue with
Department of Media, Culture, and Sport (DCMS), responsible for broadcasting.
EDMs
Early day motions (EDMs) are formally submitted for debate (but rarely debated) in the
House of Commons and meant to publicize the views of individual MPs, an event or campaign,
and/or garner parliamentary support for an issue (An MP may add his or her signature to an EDM
or submit amendments to an existing one [U.K. Parliament, 2008]). Below, #1375:
That this House recognises that children's television production provides significant
public value; appreciates… high quality British television programmes… believes that
plurality of provision …is essential in ensuring quality…supports the requirements in the
Communications Act 2003 for broadcasters to show an appropriate range of home-grown
children's programmes; and calls upon Ofcom to ensure that this obligation is met.
(Gerrard, 2007)
Ultimately, said Childs (2008), this motion was tabled after pressure by professional lobbyists
Adjournment Debate
The debate, in Westminster Hall, was opened by MP Gerrard on December 4, 2007,
initiated by the Performers’ Alliance Parliamentary Group, with support from by PACT. Across
political parties, consensus on the need to protect children’s TV in the UK prevailed. Sutcliffe,
Parliamentary Under-Secretary for Culture Media and Sport, responding to the debate,
acknowledged the presence of “respected industry figures" as indicative of the need to "take the
issue seriously,” even if it was delayed by its absorption into larger public service broadcasting
concerns. (SKTV, 2007).This reinforced the public relations value of credible spokespersons.
Research
In addition to the initial offer to undertake comprehensive research on children's
television, which eventually was conducted by Ofcom (Hay, 2008), the International
Broadcasting Trust (IBT) had commissioned research into the extent (hours) of broader content
on children's TV. Study results will be available in April 2008. IBT intends to approach MPs with
the research results, which are likely to suggest U.S. market dominance.
Petitions
On its Web site, Save Kids' TV publicized a petition posted by the Producers Alliance for
Cinema and Television (PACT) and encouraged visitors to sign it (linked to a government epetition Web site). The brief text is explicit in its request: "We the undersigned petition the Prime
Minister to ensure that UK children have access to a wider range of high quality, UK-made public
service kids' television programmes that reflect the rich diversity of UK culture." Submitted by
Adam Minns of Pact, it already 3,873 signatures before its 2008 deadline. Only 500 signatures
were displayed on the Web site, which stressed the following:
UK parents place a high value on the role that children's television plays in society…it is
particularly important that public service broadcasting for kids reflects their own lives
248
and cultures, and helps them learn more about the world around them. But new
programming made in the UK accounts for just 1% of the total…kids TV on offer to UK
audiences. The situation is rapidly getting worse: .. There are more kids channels than
before… but they are unable to plug the gap left by the main channels…The BBC
remains… parents do not want their children to have one perspective - the BBC's. We
ask the Government to act now to ensure… a rich variety of UK kids' shows with
different voices and views.
Its destination was 10 Downing Street, the seat of the Labour Government headed by
Prime Minister Gordon Brown. Save Kids’ TV hoped to gather enough signatures to move the
government towards policy change but the response was slow and relatively poor. The Mothers'
Union was not interested in the issue. According to Childs (2008), the Women's Institute was "too
cumbersome to respond in a timely manner." This is problematic inasmuch as parental support
was key to winning politicians' backup for the initiative. Aside from seeking the support of
parenting groups, activists focus more on press activity, celebrity support to generate press
interest, and reaching young people themselves thorough outreach to schools and large
organizations such as the Scouts. VLV engaged in all these activities but specifically sought to
involve university students, given the group's aging membership and leadership (Hay, 2006)
Letter Writing
Viewers, including parents, were encouraged to write to the Member of Parliament (MP)
to voice their concerns and/or complaints about the programming changes. PACT provided
access to an automated system through which campaign supporters could find their local MP and
send a pre-generated letter to an email address (Childs, 2008).
Conferences and Forums
Above, we mentioned the Ofcom seminar, which followed on the regulator's report
(2007) and the VLV conference on children's TV. VLV also organized an event last May at the
London Zoo on "The Role of the Media in Contemporary Childhood (Hutt, 2007). In addition,
groups unaffiliated with the Save Kids' TV coalition hosted issue-related events. These included
the Westminster Media Forum--which brings together activists, interest groups, and politicians
(although, according to Childs (2008) few politicians actually attended the children's TV events)
and a co-sponsored event by the Social Market Foundation and PACT.
Testimony before Select Committee
Last month, Hay (2008) gave evidence to the House of Lords Select Committee regarding
media ownership and referred to children's TV. This is a recent example of oral and written
testimony that comes before Select Committees of both Houses of Parliament, which then report
of such testimonies and makes policy recommendations.
European Connections and Comparative Policies
At a recent SKTV campaign committee meeting, Tongue (2007) suggested invoking to
the Government the Television without Frontiers Directive, which dictates the percentage of
member nations' programs that must be of European origin. Currently, the official quota for
original, indigenous programs is 51%, although that figure may be qualified where not
practicable. Perhaps, she felt, such a reminder might move the Government to enforce the statute.
249
Policy Proposals to Ofcom
At a recent meeting, Childs (2007) discussed SKTV's response to Ofcom's call for
consultation following Ofcom's (2007) report proposal to Ofcom for a Funded Online
Destination, which would be funded to commission new programs "but would also feature
interactive and participatory enhancements." SKTV had raised money, through donations, to
engage a digital communications consultancy company to pull together experts from among
SKTV activists "to generate a completely new approach to children’s broadcasting" (Childs,
2008). Channel 4 had already been approached, with positive feedback, An IBT-BBC meeting, in
the works, would raise this issue.
Web Use
On its Web site, SKTV created a compilation video of some of the best children's
programs. It was a cooperative effort of these programs' producers and distributors. The goal of
the video was to show what would be lost if children’s TV would be permitted to deteriorate.
Cultivating journalists and engaging them in advocacy
This activist tactic is among the most important. Broadsheet media journalists set the
agenda for public discourse on compelling issues, including kids' TV. Thus, VLV goes to great
lengths to invite them to their events. Raymond Snoddy (2007) and Maggie Brown a re perhaps
the most renowned journalists.
Although the campaign for children's television is relatively recent and has been
exacerbated by the recent loss of advertising revenues for commercial TV, the crisis itself has
been brewing for far longer. Channel proliferation, and the fragmentation of broadcasting through
cable, satellite, and now digital services, has overtaken terrestrial television and the race for
audiences. The commoditization of childhood, from advertising to market-based synergies rooted
in Harry Potter, Disney, and other commercially-exploitable product spin-offs, has left a
culturally-stilted taste in the mouths of industry pundits, parents, activists, and observers alike.
There is no magic bullet to ameliorate the effects of an exponential growth of available cheap,
exported, largely-U.S.-based programming on British minds. Yet British NGOs do not see the
situation as irreversible. They see their quest for a funding source and distributor for children’s
production as both critical and within reach. The need for some source of funding to sustain
culturally-specific, diverse, indigenous, British children’s programming is incontrovertible:
Whether there will be a public service publisher, top slicing of the BBC’s revenues (an approach
rejected by many), or some other solution, a vehicle for its preservation must be found. U.K.
children’s television cannot survive without British financial and artistic support. British
children’s values, perspectives, and future are profoundly bound up with their media. U.K.
democracy cannot survive without engaged, informed, and inherently British children, the adults
of tomorrow.
Public relations’ role has been to call attention to and rally resources toward the
recognition and protection of the media/citizen connections. NGO activists have been the
proactive link among relevant actors and empowered bodies in the children’s TV crisis. They
should be acknowledged for their effectiveness in positioning this crisis in the public eye, their
relentlessness in advancing the public interest, and concern for the citizens of tomorrow.
250
References
Please note that in-text references not listed below are interviews or email correspondence. A
complete list of interviews is available from the author on request.
BBC. (1992). Annual report and accounts and guide to the BBC. London: BBC.
Crawford Commission. (1926). Report of the broadcasting committee (cmd 2599). London: HMSO.
Gerrard, Neil (2007). Retrieved on 2/10/08 from
http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=33156&SESSION=885
Hay, J. (2007a). Letter regarding children's television crisis.
Hay, J. (2007b, Winter). November conference on children's television. VLV Newsletter.
Hutt, R. (2007, May 15). Children's TV under spotlight. PA Regional Newswire for English Regions.
Kovacs, R. (1998). Pressure group strategies and accountability in British public service broadcasting.
Unpublished doctoral dissertation. University of Maryland, College Park, MD.
Kovacs, R. (2004). British activism and the viewer and listener community. Corporate Communications:
An International Journal, 9, 340-362.
Kovacs, R. (Winter 2006). An Interdisciplinary Bar for the Public Interest: What CSR and NGO
Frameworks Contribute to the Public Relations of British and European Activists. Public
Relations Review
Kovacs, R. (2007, March). Communication, Culture, and CSR: Public Relations in a Devolving Britain.
Proceedings of the 10th Annual International, Interdisciplinary Conference of the Institute for
Public Relations Research, Miami, FL
Ledingham, J. A., & Bruning, S. D. (Eds.) (2000) Public relations as relationship management: A
relational approach to the study and practice of public relations. Hillsdale, NJ. Lawrence
Erlbaum Associates.
Palmer, S. (2006). Toxic childhood. London: Orion.
Ofcom. (2007, October 3). The future of children's television programming. London: Office of
Communications.
Public Voice (2008). Retrieved on 5/6/08 from http://www.public-voice.org.uk/
Snoddy, R. (2007, April 2). Children's TV needs rescuing--but where are the people who can do. The
Independent.
Tongue, C. (2007, Mar. 27.). Letter to the Editor re: suspension of BBC Jam. The Guardian.
Toth, E. L., &.Heath, R.L. (1992). Rhetorical and critical approaches to public relations. Hillsdale, NJ:
Lawrence Erlbaum.
U.K. Parliament. (2007, Nov. 6). Report of the House of Commons Select Committee. London: HMSO.
U.K. Parliament. (2001). Broadcasting Act. London: HMSO.
U.K. Parliament. (2008) EDMs. Retrieved on 2/10/08 from
http://www.parliament.uk/about_commons/early_day_motions.cfm
Wallack, L., Dorfman, L., Jernigan, D., and Themba, M. (1993). Media advocacy and public health: Power
for prevention. Newbury Park: Sage.
Wilson, H.H. (1954). Pressure groups: The campaign for commercial television in England. New
Brunswick, NJ: Rutgers University Press.
251
252
Cross-Cultural and Translingual Communication Strategies of
Official Sponsoring Corporations in Beijing Olympics
Miranda Y.P. Lee and Patrick P.K. Ng
Department of Chinese and Bilingual Studies
The Hong Kong Polytechnic University, Hong Kong SAR
In this era of glocalization [mg 1], some of the global corporations tend toward preserving strong national
culture while others may uphold strong local culture. Eminent works by Hofstede (1980, 2001) have
investigated cultural diversity across nations and identified the distinct cultural values of the Chinese as
compared with the West. While national cultural differences have been extensively analyzed, inter-cultural
and translingual studies involving corporate communication artifacts between Greater China and the
Western countries seem limited. This paper identifies orientations toward national and corporate cultures
in Greater China, and probes into correlations between cultural styles and translingual strategies found in
corporate communication artifacts. Special foci is placed on official sponsoring corporations of the Beijing
Olympics in 2008, whose headquarters are located in Mainland China, Hong Kong, America, Canada and
England. Implications of this study pave way for systemic investigations into cross-cultural and
translingual norms and practices in corporate communication, especially in Greater China contexts.
With the mounting influence of globalization, global corporations often seek to localize
their practices by adapting to diverse cultural values of target customers in local markets.
Meanwhile, many local corporations attempt to globalize themselves through adopting a Western
style of communication. In the push and pull of globalization and localization, corporations may
face challenges in deciding their orientations toward national and corporate cultures. Some global
corporations may tend toward preserving strong national culture while others may incorporate
themselves into local culture. Empirical studies from cross-cultural communication and social
psychology disciplines, notably Hofstede (2001), conducted extensive investigations of cultural
differences across nations by comparing their values, behaviors, etc. He contends the cultural
stereotypes about the Chinese (implicit) versus Western (explicit) styles of communication, and
postulates Chinese cultural values as high Power Distance and Long Term Orientation, lower
Individualism and Uncertainty Avoidance when compared with the Western countries. While
Hofstede’s research is related to national cultures, Johnson and Scholes’ (1997) model of Cultural
Web consisting of six interrelated elements viz. stories, rituals and routines, symbols, power
structures, organizational structures, and control systems concentrates on corporate culture.
Cross-cultural differences have been extensively analyzed, but intra-cultural studies
within Greater China and inter-cultural analyses of corporate communication artifacts between
China and the West are still limited. This paper aims to identify orientations toward national and
corporate cultures in corporate Greater China, and to probe into correlations between cultural
styles and translingual strategies deployed in the corporate communication artifacts. Special foci
is placed on the official sponsoring corporations of the Beijing 2008 Olympics, including those
whose headquarters are in Mainland China, Hong Kong, America, Canada, and/or England. The
selection of these corporations aids an inquiry into the extent that local Chinese corporations
promote themselves to the world, and the extent that global corporations conform to the
stereotypical Chinese style of communication.
The study adopts a content-analysis approach and aims to:
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(1) identify corporate cultural values of the sampled artifacts with particular reference to
Hofstede’s (2001) Cultural Dimensions
(2) investigate inter-lingual and intra-lingual strategies adopted in the artifacts, and
(3) address the correlations between (1) and (2)
The study may serve as a basis for further investigation of intercultural and translingual
norms and practices in corporate communication, especially in Greater China contexts. Findings
are expected to yield insights into cultural values and rhetorical strategies adopted in corporate
communication in Greater China, and provide corporate communicators with a better
understanding of cultural differences between China and the West, as well as between the
Mainland and Hong Kong.
Methodology
The sampled artifacts consist of both written and spoken communication means which
promote respective corporate images via sponsoring the Olympic Games. A bilingual corpus was
formed by the print and web ads and promotional articles in Chinese and English, as well as TV
commercials presented in Putonghua (Mandarin), Cantonese and English targeting the Mainland
and Hong Kong Chinese, and English readers.
The promotion artifacts of the 22 major official sponsoring corporations serve as the
samples for analysis (see Table 1 in the Appendix). The collected samples were analysed based
on Hofstede’s five Cultural Dimensions, namely Power Distance, Individualism, Masculinity,
Uncertainty Avoidance, and Long Term Orientation. Comparisons were established across
languages and across cultures. First, the Chinese versions of the samples were compared with
their English counterparts in order to identify the inter-lingual differences between English and
Chinese. Second, the Chinese brands were compared with the Western (i.e. Anglo-American)
ones to identify distinctive features between Chinese and the Western cultures. Findings from the
analysis were compared with those from Hofstede to investigate if cultural particularities are
shared between the two analyses.
Hofstede’s Cultural Dimensions Model and related China Indices
Admittedly, Hofstede is one of the most influential scholars on differences in cultural
groups’ behaviours in terms of value systems. His studies (1980, 2001) focus on the differences
of 64 national cultures in a multinational corporation (i.e. IBM) in terms of four independent
cultural dimensions, or indices, namely, Power Distance, Individualism, Masculinity, Uncertainty
Avoidance, and later supplanted a fifth dimension, Long Term Orientation (Confucian
Dynamism) (see also Hofstede & Bond’s study, 1988). Each index essentially serves as both a
psychometric testing mechanism and a cultural scale (values of 0 to 100) to measure or rank order
the extent to which a certain national culture tends to attach importance to a particular sociocultural value or norm, notated by a score for cross-scale comparisons.
Holistically speaking, Power Distance Index refers to the extent of power distribution
among members of organizational groups. It is found that Asian nations tend to have a higher
score value than Western counterparts in this dimension. It has implications for national cultures’
attitudes toward power relations in context of inequitable wealth distribution. Individualism, as
opposed to collectivism, pertains to the extent to which individuals bond with groups in an
organizational group or society. In-group versus out-group memberships, personal attainments
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Official Sponsoring Corporations in the Beijing Olympics
and rights, versus group loyalty and pride are significant bi-polar constructs on such an
individualism-collectivism continuum. It is found that Western cultures tend to be higher in score
value than Eastern cultures in this dimension. Masculinity Index as opposed to femininity refers
to gender role distribution and implied stereotypical socio-psychological behaviors such as
assertiveness/competitiveness associated with masculinity, versus modesty/cooperativeness
associated with femininity. It is found that masculine values tend to vary more greatly across
cultures than do feminine values among societies. Uncertainty Avoidance Index is concerned
with the extent to which national cultures exhibit tolerance for uncertainty. That is to say, the
higher the score value in the index implies strong intolerance for uncertainty with a certain
culture. Conceivably, an uncertainty avoidance score value impacts upon a national culture’s risk
management approach in terms of stronger laws and stipulations, or vice versa. Long-Term
Orientation Index is fifth and a lastly added dimension arising from a subsequent Chinese value
survey involving student subjects across 23 countries. Specifically, this index presents two
dichotomous sets of characteristics pertaining to virtue, long-term orientation versus short-term
orientation, whereby national cultures gear toward frugality and perseverance on the one end, and
reverence for tradition, social obligations and face protection on the other end. It is found that the
two polarized orientations find parallel in tendencies in East-West cultures. The case of corporate
Greater China (China and Hong Kong) in Hofstede’s Cultural Dimension Analysis is summarized
in Fig. 1 and 2 in the Appendix for rank order similarities and differences in dimensional values.
On Power Distance, Hofstede’s findings indicate that Chinese societies score relatively
high in power distance, suggesting a tendency of the Chinese to accept a hierarchy of corporate
relations. On Individualism, China scores lower than Hong Kong, suggesting that the former is
still a collectivistic society where group loyalty is of paramount importance and strong in-group
member bonding is a norm expectation, whereas the latter apparently belongs to a more
individualistic culture where in-group membership is not as tight-knit and individual interests
seem to prevail. On Masculinity, Chinese societies score fairly high, suggesting an orientation for
members in the groups to pursue material success, recognition and career advancement
competitively rather than seeking to cooperate for the sake of group rapport. It may be attributed
to China’s high-growth, open-door policy in economic realms over the last three decades and
Hong Kong’s long standing status as a Western-style, capitalistic financial hub. On Uncertainty
Avoidance, China score slightly higher than Hong Kong, revealing a tendency of the sovereign
state to prefer tighter regulatory controls and less risk-taking corporate practices than her special
administrative polity’s acceptance of more entrepreneurial spirit with lesser regard for regulatory
controls and greater risk pursuit. On Long-Term Orientation, Chinese societies score very high,
albeit slightly higher score with China than with Hong Kong, thus implicating the lingering
influence of Confucian virtues being upheld by the Chinese.
Notwithstanding Hofstede’s critically acclaimed and well-grounded theory of global
cultural differences on the basis of an American or Western-based multicultural company’s
world-wide employees and the fact that there is only one dominant national culture in each
country, our study attempts to investigate cultural values as reflected by famous brands of global
corporations based in China as well as in the West for a more balanced inter-cultural value
comparison. By the same token, whereas Hofstede’s framework of cultural dimensions may
seem primarily geared toward an analysis of national cultures, it does opens up an avenue for
explicating the selection of various corporate cultural elements within a particular national culture
as postulated in Johnson & Scholes’ Culture Web Model (1993), or even makes inroads for such
cross-cultural comparisons of corporate cultural practices.
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Johnson & Scholes’ Cultrual Web model
The Culture Web Model, developed by Johnson and Scholes (1993, 1997), is thought to
be capable of analyzing corporate culture and its impact on organizational personnel’s sociocultural behaviours (see Fig. 3 in the Appendix). It was contended that corporate ethos are bound
up in seven integral elements among which the organizational paradigm forms the core and
together with the peripheral components, organizational structure, power structures, control
systems, routines and rituals, symbols, and stories intricately constitute a culture web. A
paradigm transcends the written value statements and encompasses the underlying assumptions
constituting the mundane interactions in the center stage for understanding the interplays between
organizational thinking and behaviours in a systemic and global perspective (1993: 73).
Organizational structures cover both formal and informal structures, playing a significant role in
driving the core value of an organization. Power structures refer to a group of senior executives
leveraging enormous power in context of organizational change or stagnancy. Control systems
establish a series of protocols, be they measurements or reward schemes, bearing impact on
worker performance and customer satisfaction. Symbols consist of corporate logos, language,
status symbols, all of which cater to engender a visible representation of an organization’s culture
to both internal and external stakeholders. Stories are narratives of organizational history to be
shared by employees and the public, serving to convey key messages of the organization’s
culture. Rituals and routines including ceremonies, work rituals, training programmes, etc.,
through which an organization aligns day-to-day procedures and normative behaviors with
corporate style.
Studies on cross-cultural values and translingual communication strategies using advertising
data in Greater China contexts
Among empirical studies on cultural values in East-West and Greater China contexts
along the line of Hofstede’s quantitative approach toward exploring cultural value stereotypes,
Cheng & Schweitzer’s (1996) was another milestone investigation in which large samples
(n=1105) of television commercials from US and China sources were content analysed in order to
identify salient cultural values (out of 8) vis-à-vis such variables as product categories and
product origins prevalent in both nations. One key finding from their study is that ‘family’,
‘technology’, and ‘tradition’ ranked dominant cultural values in Chinese commercials as opposed
to ‘enjoyment’, ‘individualism’, and ‘economy’ in US commercials, with ‘modernity’ and ‘youth’
common to both cultures. Their study also reveals that Chinese commercials tend to exhibit more
Eastern cultural values than their American counterparts and such values are closely related to
product origins and categories; namely, ‘individualism’ and ‘modernity’ are associated with
imported products, and ‘tradition’ is intricately linked to ‘food & beverage’ and ‘medicine’.
Interestingly, it appeared to reject their hypothesis that Chinese advertising would tend to use
more utilitarian values than US advertising. In a follow-up study using Cheng & Schweitzer’s
framework of cultural values, Chan & Cheng (2002) content analyzed 1387 samples occurring in
1993 and 1998 for saliency of intra-cultural values between China and Hong Kong in television
commercials. Their findings indicate five distinct sets of dominant cultural values with Chinese
and Hong Kong commercials; respectively, ‘modernity’, ‘family’, ‘tradition’, ‘technology’ and
‘collectivism’ for China and ‘quality’, ‘effectiveness’, ‘economy’, ‘enjoyment’ and ‘modernity’
for Hong Kong. They also found that Chinese commercials employed more symbolic values in
stark contrast to the tendency of utilitarian ones used by Hong Kong commercials. Holistically,
both findings of Cheng & Schweitzer’s (1996) and Chan & Cheng (2002) appear to be in keeping
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with the cultural value stereotype profiles for China and Hong Kong in Hofstede’s (2001)
Cultural Dimension Analysis.
Lock (2003) examined how visual and linguistic resources of advertisements reflect
multiple identities of Hong Kong people. His sample of study is formed by a corpus of 75 ads
collected on the Hong Kong Mass Transit Railway (MTR). Lock argues that the visual and
linguistic resources in the ads can be considered as “multiply coded” (p. 195). Different readings
depend on interaction between the potential meanings in the texts and the meanings available to
the readers from their own cultural contexts. The images and language resources in the bilingual
context of Hong Kong are much richer than those in a relatively monolingual and monocultural
context. This rich semiotic potential of the ads demonstrates Hong Kong’s multiple identities –
“drawing on international, Chinese, Cantonese and local linguistic varieties and visual images”
(p. 212).
Aside from large-sample, quantitative content analyses, one retrospective qualitative
investigation undertaken by Wong (2000) joined forces to attest to evolution of Hong Kong
Chinese’s traditional ‘Confucian’ consumer cultural values into Western utilitarian values via
scrutiny of two case studies involving television banking advertising for Hang Seng Bank and
HSBC in 1970s and early 1980s. In particular, Wong examined from the two banks’ commercial
archives and affirmed a value shift from “a focus on savings to encouraging borrowing … from
hard work to easy spending … and from harmony with nature to focus on material good” (p. 398)
of traditional, collectivistic Confucian virtues to Western-style, individualistic, capitalistic
consumerism. In sum, empirical data on cultural value comparisons in the pre-millennium eras
seem to be underpinned by the predominant position that while the US is characterized as an
individualistic culture, China largely fits into a more collectivistic-oriented national culture
(partly attributed to her Marxist-Maoist ideology, see Cheng & Schweitzer, 1996) whereas Hong
Kong is considered slightly more individualistic-oriented in terms of national culture.In a similar
vein of the aforementioned cross-cultural value studies, scholars have increasingly become
interested in examining the cultural change impact of interlocking globalization and localization,
or coined as ‘glocalization’ and ‘hybridization’ (see definitions by Robertson (1995) and Wang
(2000a)), on advertising communication vis-à-vis translingual practices in Greater China
contexts. Alongside several Anglo-Chinese inter-lingual studies of Chinese advertising (Ha,
1998; Lee, 2000; Ye & Qin, 2004), most recent studies (Feng & Wu, 2007; Wu et. al., 2007)
largely drew their data from either print advertisements such as newspapers and magazines or
commercial web advertisement sources rather than broadcast media such as television
commercials. One such study examining 119 web advertisements from top Chinese websites in
2004 by Feng & Wu (2007) paints a highly robust and volatile picture of unconventional
language usage (in the form of pervasive Anglo-Chinese mixing) in Chinese web advertisements,
which is well underscored by the predominance of Western value and utilitarian appeals. They
further contend that such deliberate hybridized language mixing and preferred popular phrases by
the youths are indicative of young Chinese’s active construction of their individual identities.
Henceforth, the implication of this study inevitably makes one ponder if, only in matter of a
decade since the nineties, China is already going down the same path as Hong Kong (back in the
last three decades) of transforming from a traditionally collectivistic culture to a more
individualistic consumer culture.
Another recent quantitative analysis of translingual communication strategies in Greater
China is Chen’s (2006) study of Taiwanese advertisements. Chen investigated the mixing of
English in magazine advertisements in Taiwan. A total of 226 code-mixed sentences were
collected from 43 different magazines published in Taiwan. Chen identified the top ten frequently
used English expressions, such as ‘Spa’, ‘easy’, ‘No.1’, and found that noun phrases account for
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nearly half of all the English expressions used. Her study reveals that the mixing of English
enhances attraction of an ad and readers adopt a positive view towards the use of English in ads.
While a number of studies adopted a quantitative content-analysis approach, some other
studies, such as Li (2000) and Wang (2000b), attempt to analyze the reasons for adopting those
translingual communication strategies. Li (2000) provides four major reasons or motivations for
adopting code-mixing in Hong Kong, namely euphemism, specificity, bilingual punning, and
principle of economy. First, the mixing of English in advertisement can avoid making explicit
mention of potentially embarrassing notions. Second, an English expression may be preferable
due to its specific meaning comparing with its Chinese counterparts. Third, bilingual punning is
common in advertisements in Hong Kong, and its effectiveness depends on similarity in
pronunciation between the Cantonese and English components to create double meaning. Fourth,
the use of mixed-codes may also be because an English expression is more economical compared
to Chinese or Cantonese in terms of linguistic effort. Rather similar to Li’s analysis, Wang
(2000b) studied the code-mixing phenomenon in the Hong Kong media and concludes three
major reasons for code-mixing, namely, making the theme outstanding, clarity and brevity, and
specificity.
Findings and Discussions
Among our cross-cultural and translingual findings using Hofstede’s Cultural Dimension
framework, the dimension of uncertainty avoidance clearly stands prominent in total agreement
with the three-tier comparisons between: (1) Hofstede’s cross-cultural study and the two language
sets of samples of this study, (2) Hofstede’s study and our Chinese and Anglo-American brands,
and (3) the two language sets and the two major types of brands in our study (see Table 2 in the
Appendix for the summary of findings).
Similar to Hofstede’s Chinese findings, the Chinese data of the Chinese brands in our study
score significantly low in uncertainty avoidance. For instance:
對於中國人保財險的客户来说，亲临奥运赛场的梦想似乎并不算难 (PICC – web)
(UAI-)
For the customers of PICC, their dream of visiting the Olympic Stadium seems not
difficult to be realized. 1
期待更多 (Lenovo – TV) (UAI-)
expecting more
Besides, the Chinese brands score low in uncertainty avoidance in their English promotional
artifacts, in contrast with the American brands, such as McDonald’s. Compare:
Accuracy and truth-seeking: We manage our business and make decisions based on
carefully understood facts. (Lenovo – web) (UAI-)
The ‘Champion kids’ initiative which is part of a wider global program involving 300
children in total, will see hopefully youngsters of through three rounds of testing …, with
a view to selecting 100 well-rounded children to represent China s part of McDonald’s
Olympics Hospitality Program in Beijing. (McDonald’s – web) (UAI+)
1
Direct English translation of the Chinese example
258
The above example of McDonald’s lucidly depicts the “rituals and routines” of the organizational
paradigm proposed by Johnson & Scholes (1997). The procedures and normative behaviours are
presented in a rather specific manner. Even for the Chinese version of McDonald’s TV
commercial, the uncertainty avoidance score is still high, as illustrated by the example below:
早晨,比d新鮮感呢,精選美國A級大雞蛋,爽口洋蔥,回味無窮既頂級煙肉, 攪住mix。
全新煙蔥蛋全餐, 24小時麥當勞零晨4點有售啦 (McDonald’s – TV) (UAI+)
Good morning. Give (you) some fresh feelings. Select large Grade-A American eggs,
crispy onions, tasty top-class bacon. Mix them all.
The brand new whole meal with scrambled eggs with bacon and onion is available from
4 am at 24-hour McDonald’s restaurants.
Apparently, this TV commercial in Cantonese is blended or code-mixed with English
expressions. Code-mixing, a translingual communication practice, is one of the typical rhetorical
strategies adopted in promotion in Greater China contexts, especially in Hong Kong. The
adoption of “A級大雞蛋” (large Grade-A eggs) serves the function of specificity (Li, 2000),
while the use of the English word “mix” succeeds in rendering the theme more outstanding
(Wang, 2000b).
The finding of significantly low in uncertainty avoidance score in all three counts
of comparison of the Chinese data turns out to be perfectly consistent with Hofstede’s
Chinese findings two decades ago. This may be attributed to the ever-growing influence
of the Chinese state in economic affairs in both Hong Kong and China. Since Hong
Kong’s return to China in 1997, there has been greater economic integration involving
the two polities and inevitably Hong Kong’s increased dependence on the motherland’s
trade alliances, like CEPA (Closer Economic Partnership Arrangement) in force since
2004 and a new initiative called QDII (Qualified Domestic Institutional Investor) Scheme
under way which proposes free flow of professional talents across borders, to sustain the
special administrative zone’s powerhouse financial growth in recent years. A probable
interpretation of this stereotypic value finding is that the Chinese and Hong Kong
authorities are tending toward a more conservative approach in the area of regulatory
controls in economic spheres, if not others.
On the performance of individualism dimension, our second salient finding of agreement
between Chinese language use and Chinese brands is quite indicative of a paradigmatic pursuit of
Western style capitalism in contemporary Chinese and Hong Kong economic sectors. For
example:
飲飲食食係我既天職 (CocoCola – TV) (IDV+)
Eating and drinking is my divine responsibility.
您的最佳選擇 (BoC – TV) (IDV+)
Your best choice
The above examples adopt an individualistic approach, rather similar to the English versions
adopted by corporations from the West, such as:
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Employee Benefits presents the official Beijing 2008 Olympic Games Mascots
Exclusively for YOU! (Manulife – print ad) (IDV+)
Indeed language, per se, may serve well as a reflective tool to mirror predominant social identities
in changing times despite over-arching ideologies in political realms. As this finding indicates,
the Chinese are appearing to be more individualistic in orientation as embodied in the symbolic
value of entrepreneurish advertising language favoring a more reward and incentive inclined
ethos, which is characteristic of members of capitalistic societies, and jointly embraced by
Chinese and Hong Kong governments. As opined by Feng & Wu (2007), the prevailing Chinese
cultural value has undergone fundamental change in commercial contexts, where coming-of-age
consumers are ready to abandon traditional, group-sacrificing cultural value in favor of a more
self-serving and incentive-driven consumer culture. The same has been true for Hong Kong
consumers ever since her capitalistic colonial heydays.
In keeping with Hofstede’s Chinese findings regarding the performance of masculinity
dimension, our third results pertaining to comparison between Anglo-Chinese language
orientations and Hofstede’s findings are largely consonant. For instance:
To win (Manulife – TV) (MAS+)
真正了解你的心意 (BoC – TV) (MAS-)
really understand what you think
我地助你實現 (Manulife – TV) (MAS-)
we help you to achieve
The above examples associated with the femininity value adopt several rhetorical and
communication strategies including rapport and intra-lingual code-mixing. The Cantonese
expression “我地” (we) mixed with the Standard Chinese one “助你實現” (help you achieve)
helps forge a closer tie with the customers.
The implications of our masculinity dimension findings are two-fold in view of their
significance in cross-cultural and translingual communication inclinations. On the one hand,
Hofstede’s Chinese findings indicate a more masculine cultural orientation with USA than China
and Hong Kong in respect of scoring slightly higher positive value score in masculinity, whereas
his Chinese findings scores more or less the same as the USA finding in respect of low negative
score value in this dimension. On the other hand, a congruent picture can be painted when
English language use is positively correlated with the positive value score of masculinity
dimension and likewise Chinese language use for the negative value score of the same dimension.
Such overtly bilingual and bicultural value alignments in advertisements may be explained in
terms of the vastly prevalent East-West cultural stereotyping which is said to be associated with
certain attitudinal traits such as aggression versus passivity, competition versus cooperation, and
so on.
A fourth significant finding displays ambivalence in agreements in the performance of long
term dimension between Hofstede’s Chinese findings and the two types of brands as well as two
types of languages and two types of brands. On the one hand, the Chinese brands show a dually
high positive and negative score of long term orientation. For example:
260
讓您更快換取飛行里數或「簽帳得fun禮品集」內的精美禮品 (BoC – print ad)
(LTO-)
Let you redeem your mileage or gifts from the ‘Bonus-reward Gift Collection’ within a
shorter time.
滙奧運文化之精神，讓北京2008年奧運會成為您永久的珍藏 (BoC – print ad)
(LTO+)
Blend in the spirits of the Olympic culture. Let Beijing Olympics 2008 be your valuable
collection.
Evidently, the above first example illustrates the “control systems”, reward schemes for customer
satisfaction, of the corporation (Johnson & Scholes, 1997). The bilingual punning “fun” is rather
common in Hong Kong advertisements. It creates double meaning of “fun” in English and “分”
(bonus) in Cantonese. As for the above second example, the application of an idiomatic Chinese
expression of “滙奧運文化之精神” (blend in the spirits of Olympic culture) supports Johnson
and Scholes’ contention that language is one of the symbols representing corporate culture. As
shown, BoC (Bank of China) can be seen as seeking to project itself as a culturally dignified
corporation. The dual value can also be found in the English versions of Chinese brands.
Compare:
These and other market-leading personal computing products catapulted Lenovo to be a
leadership position in China for with consecutive years with over 25% market share in
2004. (Lenovo – web) (LTO+)
In 2003, Legend changed its brand name to Lenovo, talking the ‘Le’ from Legend, a nod
to its heritage, and adding ‘novo’, the Latin word for ‘new’, to reflect the spirit of
innovation at the core of the company. (Lenovo – web) (LTO-)
As portrayed, the “story” in the above second example which narrates corporate history to be
shared by the public serves to convey key messages of the corporate culture (Johnson & Scholes,
1997).
The dually high positive and negative score of long term orientation of the Chinese
brands can be construed in terms of the insurmountable trend of business globalization and
glocalization facing the Chinese advertisers and brand owners alike these days, wherein the
sizeably affluent Chinese consumer classes are vastly becoming Westernized in consumer tastes
as a result of frequent exposure to Anglo-American new media and advertisements both
domestically and internationally. As pointed out by Wu et al. (2007) glocalization and linguistic
hybridity are part and parcel in understanding patterns of the Chinese’s consumption of web
advertisements. Notwithstanding this, the other sub-finding points to an agreement between the
two languages and two types of brands over significantly high negative score of long term
orientation dimension. On a national policy front, the Chinese government has of late relaxed
Communistic taboo against traditional Chinese festive celebrations in reinstating the Qing Ming
Festival as a national public holiday in 2008. This practice shift is undeniably a strong indicator
of the Chinese officials’ tolerance of traditional Chinese cultural heritage.
261
Conclusion
In sum, some of our findings are in total alignment with Hofstede’s Chinese data, for
example, the apparent low scores of Chinese brands in uncertainty avoidance on both national
cultural value and English and code-mixed language uses in promotional artifacts, as opposed to
Western brands. This is also supported by strong regulatory control, “ritual and routines”
corporate cultural element in Johnson and Scholes’ Model. Yet, there are instances where two of
our findings appear to differ from those of Hofstede’s, namely, on the performances of
individualism and masculinity. In particular, one could comfortably surmise that owing to the
surging tides of globalization forces, at least in economic realms, our Chinese findings take a
Western individualistic turn and do not conform to stereotypical cultural value of collectivism as
found in Hofstede’s Chinese data. And in the case of masculinity, our Chinese findings turn out
to be lower in value score than our Anglo-American counterparts compared with Hofstede’s
Chinese finding in this dimension. This interesting outcome may probably seem understandable
in light of differential economic developmental stages experienced by China (i.e. highly
developing) and Hong Kong (i.e. more advanced) within our Chinese data, which likely discounts
to a certain extent expectedly high performance in masculinity dimension for a purely capitalistic
economy typified by strong aggression and competitiveness.
Furthermore, our findings in regard to bilingual language use and two major brand types
also correspond well to culturally stereotypic conventions of a language adopted in our promotion
artifacts, which serve to manifest corporate cultures projected by global brands. In this light, the
national cultural origin of a global brand is inextricably consistent with respective language
strategies in advertising. In other words, Chinese brands are found to be aligned with Chinese
linguistic style as opposed to Western brands being congruent with Anglo-American English
styles, respectively.
While language devices are purportedly one of the symbols or elements representing
corporate culture, an appropriate selection of communication and rhetorical strategies, such as
rapport-building, identity building, bilingual punning, idiomatic expressions, code-mixing, etc., is
shown to be instrumental to ensuring communicative efficacy and for projecting a positive
corporate image to stakeholders.
Significance
Given that a main focus of this paper is on cultural value perceptions toward global
brands of Chinese and Western corporations from different industries, our data is perhaps more
representative than many other studies on cultural values and applied language studies in their
own right, e.g. Hofstede (1980, 2001), Hofstede & Bond (1988), Lock (2003), etc. Moreover, our
study has adopted quantitative cum qualitative approaches. A holistic methodology also serves
well to address the relationship between translingual (Anglo-Chinese) communication strategies
and corporate culture, in addition to ascertaining correlations in national culture similarities and
differences across nations. As a cross-fertilizing, inter-disciplinary study involving both
intercultural business communication and bilingual communication, it yields some insights into
differences across national cultures in corporate communication context. Above all, such a brand
perception study is firmly anchored upon the Greater China contexts characterized by demands
for messages coded in linguistic and cultural hybridity.
Linguistic glocalization, as exemplified by our bicultural and translingual data in global
brand advertising contexts, can be viewed as an essential tool for corporate brands with strong
national cultural heritage and corporate cultural affiliations to reflect and perpetuate certain
262
desirable dominant national and corporate cultures in the wake of an increasingly bilingual and
bicultural pan-Chinese audience or readership. In that sense, cultural hybridity and linguistic
glocalization are increasingly intertwined in practice, if not integrated, for such strong global
brands reaching out to a new generation of consumerism immersed in multilingualism and
multiculturalism.
Limitations
Since this study is primarily concerned with Chinese and global corporations on the
sponsoring list of Beijing Olympics, there is room for enlarging the current data samples. The
inclusion of a Taiwanese sub-set in the Greater China sample would be appropriate in view of
gradually ameliorating cross-strait relations resulting from the recent Chinese Nationalist Party’s
(Kuo Min Tang) victory in Taiwanese presidential election, and hence optimistic prospects of
direct trades in near future. For example, famous global Taiwanese brands like 旺旺集团 (Want
Want Group) could be included in future Chinese samples. Thus, this study is considered, at best,
a prelude for further investigations into systemic differences in national and corporate cultural
values vis-à-vis bilingual strategies in corporate contexts. In a way, our tentative conclusions
may require further examination and validation, as our corpus sample size, though significant, is
not very large. Nonetheless, it purports to create a useful platform upon which deployment of the
dual framework incorporating Cultural Dimension Analysis and Culture Web Model can be
applied toward more such comparative analyses on intercultural and translingual communication
studies.
Future work
It is hoped that within the intercultural communication arena, further work can be
extended from merely content analysis of brand perceptions toward national and corporate
cultural values, to more end-user centered audience and readership analysis. In addition, on a
sociolinguistic front, it should be expanded to cover more global corporate brands so as to form a
large corpus for in-depth cross-genre analyses, say, beyond advertising, in other corporate
communication contexts. In time, more detailed, intra-lingual and intra-cultural analysis in the
Greater China region should also be conducted and consolidated to inform the academia and
practitioners alike.
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Hofstede, G., & Bond, M. H. (1988). “Confucius & economic growth: New trends in culture’s
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Johnson, G. & Scholes, K. (1993, 1997). Exploring corporate strategy: Text and cases. London: Prentice
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Lee, M. (2000). “Codeswitching in media texts: Its implications on society and culture in postcolonial
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Li, D.C.S. (2000). Cantonese-English code-switching research in Hong Kong: A Y2K review. World
Englishes 19(3), pp.305-322.
Li D.C.S. et al (2000). (eds.). Language and Education in Post-Colonial Hong Kong. Hong Kong:
Linguistic Society of Hong Kong.
Lock, G. (2003) “Being International, local and Chinese-advertisements on the Hong Kong Mass Transit
Railway” Visual Communication 2, pp.195-214.
Robertson, R. (1995), “Globcalization: time-space and homogeneity-heterogenity”. In M. Featherstone et
al. (ed.), Global Modernities, pp.25-44. CA: Sage Publications.
Shi, X. (2007) (ed.). Discourse as Cultural Struggle. Hong Kong: Hong Kong University Press.
Wang, J. (2000a). “Global Advertising, Chinese Style”. Foreign Advertising in China: Becoming global,
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Wang, J. (王靜) (2000b) <香港媒體語言中的語碼夾雜現像>。<<常熟高專學報>> (“The code-mixing
phenomena of media language in Hong Kong”, Journal of Changshu College), Vol. 5, September,
2000, pp.92-119.
Wong, W. S. (2000). "The Rise of Consumer Culture in a Chinese society: A Reading of Banking
Television Commercials in Hong Kong During the 1970s". Mass Communication & Society,
2000, 3(4), pp.393-413.
Wu, D. et al. (2007). “Glocalization and Hybridization of Languages in Chinese Web Advertising”, China
Media Research, 3 (2), pp.1-8.
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Website references
Adidas
Air China Limited
Atos Origin
Bank of China (BoC)
China Mobile
China National Petroleum Corporation
China Netcom
Coca-Cola Company
GE
Johnson & Johnson
Lenovo
Kodak
McDonald’s
Manulife Financial
Omega
Panasonic
PICC Property and Casualty Co. Ltd.
Samsung
Sinopec Corp.
264
http://www.adidas.com/cn/shared/home.asp
http://www.airchina.com.cn/
http://www.atosorigin.com/en-us/
http://www.bank-of-china.com/
http://www.chinamobile.com/
http://www.cnpc.com.cn/cnpc/
http://www.chinanetcom.com.cn/
http://www.coca-cola.com/glp/d/index.html
http://www.ge.com/index.html
http://www.jnj.com.cn/
http://www.lenovo.com/
http://www.kodak.com/
http://www.mcdonalds.com/
http://www.manulife.com/
http://www.omegawatches.com/
http://panasonic.net/index.html
http://www.piccnet.com.cn/
http://www.samsung.com/hk/index_main.html
http://www.sinopec.com.cn/
State Grid Corporation of China
Visa Inc.
Volkswagenwerk
http://www.sgcc.com.cn/default.asp
http://www.corporate.visa.com/main.jsp
http://www.volkswagen.com.cn/
Appendix
Table 1. Major official sponsoring corporations in Beijing Olympics 2008 (N=22)
Olympics global partners:
Atos Origin
The Coca-Cola Company
GE
Johnson & Johnson
Kodak
Lenovo
McDonald’s
Manulife Financial
Omega
Panasonic
Samsung
Visa Inc.
Beijing Olympics 2008 global partners:
Adidas
Air China Limited
Bank of China (BoC)
China Mobile
China National Petroleum Corporation (CNPC)
China Netcom
PICC Property and Casualty Company Limited
State Grid Corporation of China
Sinopec Corp.
Volkswagenwerk
TABLE 2. Comparing Hofstede’s Chinese cum Hong Kong Indices
Chinese languages and Chinese & Western brands
Hofstede’s
Hofstede’s study
Languages
Cultural
China &
Canada,
Dimensions
Hong Kong UK & USA Chinese
English
UAI+
X
X
X
UAIX
X
PDI+
X
X
X
PDIX
X
IDV+
X (~)
IDVX
MAS+
X (~)
X
MASX (~)
X
X
LTO+
X
X
X
LTOX : more dominant
~ : highly similar (≤ 5% difference)
with our findings on AngloBrands
Chinese
Western
X
X
X
X
X
X (~)
X
X
X
X
265
FIGURE. 1 China’s Indices
Source: http://www.geert-hofstede.com/hofstede_china.shtml
FIGURE. 2 Hong Kong’s Indices
Source: http://www.geert-hofstede.com/hofstede_hong_kong.shtml
266
FIGURE. 3 Johnson & Scholes’ Cultural Web Model (1997)
Source: http://www.solutions4training.com/30
267
268
The State of Leadership in the States:
What Businesspeople Say They Value
John S. Leipzig
Center for Responsible Leadership, Alma College, U.S.A.
[email protected]
What is going on with leadership in the United States of America? The country is in the grip of a divisive
national election, its economy is teetering toward recession, its soldiers languish in multiple conflicts and
its reputation in the world community is less than stellar. Perhaps it is once again time to turn to American
businesspersons to address the current leadership crisis. In 2007, a national survey of 1000 American
business owners, officers, and operators was conducted by Alma College in partnership with EPIC-MRA.
In addition to identifying individual superior leaders, the survey identified attributes associated with
leaders who were judged to be superior. As anticipated, honesty and integrity headed the list of desired
attributes followed by intelligence, vision, communication, compassion and listening. The attributes were
submitted for further analysis to ascertain the relative strength of emergent factors. A factor analysis
identified five factors which explained 52.2% of the variance in the concept of superior leadership. The top
factor included items such as “results orientation”, “work ethic” and “action orientation” which indicated
a strong preference for focused action in superior leaders. The second factor was a caring for others
factor and included items such as “empathy”, “selflessness” and “generosity”. The third factor included
“passion”, “vision” and “creativity”; while the fourth factor highlighted “intelligence” and “superior
judgment”. A final factor included “charisma” and “physical attractiveness” which added a small but
significant 6% to the overall predictive model. An additional analysis of ten leadership domains indicated
that leadership in science and technology, in the military and in volunteer and community service were the
most highly rated while leadership in K-12 education, health care and politics/public affairs fared the
worst. After detailing the state of business leadership in the States, this paper will detail the full results of
the 2007 National Survey on Leadership. The paper will discuss the importance of superior leaders being
associated with focused action, having a follower-oriented mindset and possessing the ability to
communicate visionary calls for change. The analyses and follow-up discussion will provide insights into
the current state of desired leadership qualities by those in American businesses. The final section will
detail how higher education can assist in educating future generations of individuals committed to an
enhanced conception of leadership directed toward the common good.
What is going on with leadership in the United States of America? The country is in the
grip of a divisive national election, its economy is teetering toward recession, its soldiers languish
in multiple conflicts and its reputation in the world community is less than stellar. Perhaps it is
once again time to turn to American businesspersons to see what insights they may provide as to
the state of leadership in the States. Cliffe (2008) in a recent Harvard Business Review Editor’s
Blog noted “business leaders of a couple generations ago were more engaged with public life –
that when the United States needed to go to war in Europe, to build a national highway system, to
radically improve math and science education – business executives helped lead the charge” (p.
1).
The Current State of Leadership and Business
In discussing the current state of executive leadership in the States, Cliffe (2008) offered
two fundamental truths: “True thing one: The United States faces big problems. A health care
system in disarray; public education that’s dangerously uneven in quality; climate change;
muddled foreign economic policy; spiraling energy costs and true thing two: Business leaders are
269
John S. Leipzig
not a serious part of the national conversation on these issues” (p. 1). A 2006 McKinsey Survey
on CEO’s as public leaders indicated that US executives also believe “they should play a much
greater role in shaping the debate about socio-political issues and in leading efforts to effect
change” (p. 1). When asked about the role of US business executives in addressing public issues,
only six percent of the respondents felt that these executives were playing a leadership role versus
forty-four percent who believed that they should” (pp. 2-3). This gap is not only noteworthy but
representative of the issue at hand. Our business leaders are not engaged in the public dialogue
during the time when their expertise may be most needed. Cliffe (2008) noted that “surely it must
be clear that business leaders are world-class problem solvers, and that they could help shape our
national conversation in constructive ways” (p. 1). As an aside, she noted that “it wouldn’t be a
bad thing if U.S. business leaders as a class were perceived as less greedy, and more focused on
doing some good things in this world” (p. 1). That aside harbors the root to the problem with
leadership in the States today. As a country we have become arrogantly capitalistic and
associated with certain business leaders whose annual compensation packages are more than the
GNP of some developing countries. Many would agree with Hill (2008) that “it’s worth
reexamining our image of the ideal business leader and how and where a person will acquire the
attributes needed to become one” (p. 124).
While leadership trait research has been around for decades, the criticisms of that
research concerns situational generalizability, abstractness of the attributes, inability to link
attributes with leadership effectiveness and the omission of behaviors and motivations as
mediating variables (Komives, Lucas and McMahon, 2007, p. 48). An interesting side question is
whether or not attribute strengths and weaknesses are viewed by raters on a continuum in terms of
leadership. As it turns out the answer is “not necessarily” according to a Science Daily (2007)
report targeted at looking at what makes a good organizational leader. While “conventional
attributes like intelligence, self-discipline, and charisma were seen as common strengths … the
common weaknesses reported revealed a surprising picture that was not just the reverse of the
strengths” (Ames, p. 1). In terms of weaknesses, assertiveness led the pack with “focused,”,
“able,” and “sure” (deficiencies in each case) following (Ames, p. 1). A deficiency in
assertiveness was characterized as possessing too little or too much and the conclusion was that
“most effective leaders push hard enough to get their way but not so hard that they cannot get
along . . . leaders stuck at the extremes of assertiveness may have a narrower repertoire of
behavior” (Ames p. 1-2).
Lipman-Blumen (2005) took a different tack to discussing weaknesses of toxic leaders.
Examples of behaviors and attributes of toxic leaders are:
•
•
•
•
•
•
•
270
Leaving their followers worse off than they found them
Violating the basic standards of human rights of their own supporters, as well as
those of other individuals and groups they do not count among their followers
Consciously feeding their followers illusions that enhance the leader’s power and
impair the followers’ capacity to act independently
Playing to the basest fears and needs of the followers
Misleading followers through deliberate untruths and misdiagnoses of issues and
problems
Insatiable ambition that prompts leaders to put their own sustained power, glory, and
fortunes above their followers’ well-being
Enormous egos that blind leaders to the shortcomings of their own character and thus
limit their capacity for self-renewal
What Business People Say They Value
•
•
Reckless disregard for the costs of their actions to others as well as to themselves
Cowardice that leads them to shrink from the difficult choices (pp. 19-22).
With all of these attempts to describe or define effective or ineffective (even toxic) leaders, one
has to agree with Iwan (2006) when he said “leadership is a theme that has and will continue to
fascinate businesspeople due to its imprecise, changing, ephemeral and elusive definition” (p. 1).
To be able to offer suggestions for how to positively impact the current state of leadership in the
States, one first needs to assess what businesspeople themselves believe to be the current state of
leadership in a variety of domains relevant to the lives of those being surveyed.
An assessment of those attributes currently seen as important as well as perceptions of
superior leaders in the States might provide further insights into the current state of leadership in
the USA. In 2007, the Center for Responsible Leadership at Alma College and EPIC-MRA based
in Lansing, Michigan conducted a national survey to answer these questions. EPIC-MRA
conducted interviews with 1,000 randomly selected American business owners, officers,
operators or managers. The sampling error for the businessperson sample is plus or minus three
percent. The complete survey results are available at http://www.alma.edu/academics/leadership/
leadership_survey. The author worked with EPIC-MRA to develop the survey instrument and
EPIC-MRA completed both the interviews and the follow-up statistical follow-up analyses that
are presented in this document which are available in detail on the website noted before in this
section. The obtained statistical results will form the basis of the next section of the paper.
Results of the Alma College Survey of Leadership
Rating the quality of leadership in ten domains
Businesspeople were asked to rate the quality of leadership that they felt currently existed
in ten areas of American life. A five-point rating scale was used to assess respondent perceptions.
A rating of 1 corresponds to excellent, 2 corresponds to very good, 3 corresponds to good, 4
corresponds to fair, and 5 corresponds to poor. The following chart indicates the mean ratings.
•
•
•
•
•
•
•
•
•
•
Science and technology
Military
Volunteer and community service
Higher Education
Business and commerce
Local communities
Religion and spirituality
K-12 education
Health care
Politics and public affairs
2.63
2.89
3.00
3.10
3.22
3.37
3.59
3.72
3.97
4.11
Leadership in science and technology and in the military were the only domains that
businesspeople rated higher than good, and politics and public affairs was the only domain below
fair. All other categories were in the fair to good range. While it is heartening that the majority
of the categories are in the fair to good range, Americans have every right to expect better
leadership across domains. Especially troubling is the finding that the three lowest rated domains
are K-12 education, health care and politics and public affairs. Educating youth, caring for the
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John S. Leipzig
citizens’ health and governing deserve to be associated with the very best leadership in a country.
There appears to be a general feeling of dissatisfaction with the quality of American leadership on
the part of businesspeople.
Who do businesspeople rate as superior leaders?
The respondents in the survey were asked by interviewers to list up to three living
individuals that they considered to be superior leaders. In all, five hundred and five distinct
individuals were mentioned, as well as the category of none-of-the-above. Having none of the
top mentions coming from outside of the United States was due to the slant of the question itself
which suggested that the person could come from any area of life and could be a local leader or a
national leader which would preclude naming international leaders. Since the paper is most
concerned with the perceptions of businesspeople concerning leadership or its lack thereof in the
United States, this slant was entirely appropriate. Following is the list of those receiving two
percent or more mentions:
•
•
•
•
•
•
•
•
•
•
•
None of the above
President George W. Bush
President Bill Clinton
Reverend Billy Graham
General Colin Powell
Respondent’s father
Microsoft CEO Bill Gates
President Jimmy Carter
Senator Barack Obama
Senator Hillary Clinton
Mayor Rudy Giuliani
19.5%
11.0%
5.0%
4.0%
4.0%
3.0%
3.0%
2.0%
2.0%
2.0%
2.0%
Most telling was the fact that one hundred and ninety-five respondents did not mention anyone
locally or nationally as coming to mind as a living superior leader. The preponderance of current
or former political figures is most likely reflective of a combination of recognition and party
support. One religious figure, one business philanthropist, and one family member were included
in the top six mentions. Especially troubling was the fact that the few superior leaders that were
mentioned were in the political and public affairs category that was also evaluated as the domain
rated as less than fair in terms of leadership.
Attributes of superior leaders
Of the twenty-three attributes presented to respondents in terms of importance for
superior leadership, all but two were rated between three and four on a five point importance
scale which ranged from least to greatest. This compressed range indicates the possibility of a
response set bias or survey fatigue. Another part of the survey asked respondents to mention up
to ten attributes that they attributed to superior leaders. Sixty percent of the sample mentioned
between one to three attributes. Two attributes, honesty and integrity, emerged both in this
exercise and as a combined item on the list of twenty-three attributes as being the most
characteristic of superior leaders. Following is a list of the percentage of mentions that were
volunteered by at least two percent of businesspeople in the sample.
272
•
•
•
•
•
•
•
•
•
•
Honesty
Integrity
Intelligence
Vision
Compassion
Good listening skills
Good communication skills
Morality
Education
Faith/Christianity
11.0%
9.0%
4.0%
3.0%
3.0%
3.0%
3.0%
3.0%
2.0%
2.0%
Clearly, honesty and integrity are mentioned more than twice as much as any other attribute by
respondents to the survey while communication and other relational skills were mentioned in a
number of contexts in the survey as well. When separating out the number of respondents that
mentioned a particular attribute, the survey discovered that thirty-two percent mentioned honesty
and twenty-four percent mentioned integrity. Vision was mentioned by 9% of the respondents and
good listening skills, intelligence and morality by 7%. The mean ratings of the importance of
twenty-three attributes scored (5 being of the greatest importance to 1 being the least importance)
follow:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Honesty/integrity
Work ethic
Communication skill
Commitment
Vision
Self-discipline
Optimism
People skills
Intelligence
Open-mindedness
Judgment
Team orientation
Results orientation
Ability to inspire/motivate
Empathy
Selflessness
Action orientation
Passion
Generosity
Ability to take risks
Creativity
Charisma
Physical attractiveness
3.88
3.68
3.63
3.61
3.57
3.56
3.52
3.50
3.48
3.46
3.44
3.38
3.31
3.28
3.27
3.18
3.14
3.13
3.13
3.09
3.06
2.79
1.49
Once again, honesty/integrity (combined in this survey) was clearly more highly valued than
other attributes and charisma and physical attractiveness were the least important attributes.
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John S. Leipzig
What the data appears to say is that there are a number of attributes that are seen as quite
important for superior leaders. To ascertain how these attributes might group together to better
explain superior leadership in the minds of US businesspeople was the next part of the analysis.
The survey data was submitted to a factor analysis using principal component analysis with a
Varimax rotation. The analysis yielded five factors with Eigenvalues greater than 1.0 which
together explained 52.2% of the variance in superior leadership.
A factor by factor explanation of superior leadership attributes
The strongest grouping of attributes was named Character. Character accounted for
13.4% of the variance and had five primary items which loaded at .5 or above and two secondary
items which loaded between .4 and .5. Optimistic attitude; Results orientation; Team orientation;
Work ethic; Self-discipline; and Honest/integrity loaded in Factor I. Respondents felt superior
leaders possessed a constellation of attributes that spoke to strength and morality of character
associated with positive qualities that were related to being able to work with others or
independently to get things accomplished.
The second factor explained 13.3% of the variance and was named Compassion.
Compassion had four primary items load at .5 or above and two secondary items load between .4
and .5. Empathy; Selflessness; Generosity, People skills; Communication skills; and Openmindedness were the attributes associated with compassion. American businesspeople value
compassionate, caring leadership almost as strongly as strength of character in their leaders.
The third factor explained 10.3% of the variance and was named Creativity. Creativity
had four primary items load at .5 or above and two secondary items load between .4 and .5.
Passion; Takes risks; Creativity; Vision; Action orientation; Inspirational/motivational were the
items which groups in this factor. Respondents want their leaders to actively demonstrate passion
and visions and find these attributes to be motivational.
The fourth factor explained 9.2% of the variance and was named Competence.
Competence had two primary items load at .5 or above and two secondary items load between .4
and .5. Intelligence; Superior judgment; Self-discipline and Open-mindedness were the attributes
which were associated with competence.
The fifth factor explained 6.0% of the variance and was named Charm. Charm had two
primary items load at .5 or above and one secondary item load between .4 and .5. Physical
Attractiveness; Charisma; and Inspirational/motivational were the attributes associated with
charm. One could note that Physical Attractiveness and Charisma were the items seen as least
important in the list of twenty-three attributes and Inspirational/motivational was a secondary
loading on the two lowest factors.
Putting together the five C’s of superior leadership
American businesspeople are looking for leaders that demonstrate or are associated with
superior levels of character, compassion, creativity, competence and who at times can be
charming. These same businesspeople are hard pressed to name living American leaders who
possess these attributes. Businesspeople have the most confidence in the leadership in science
and technology and in the military but the least in politics and in public affairs (where the highest
individuals above none-of-the-above were mentioned). These findings generally parallel the
positive attributes associated across the world as shared global leadership dimensions. The
GLOBE Study of 62 Societies (House, Hanges, Javidan, Dorfman and Gupta, 2004) noted six
global leadership dimensions:
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•
•
•
•
•
•
Charismatic/Value-Based Leadership is generally reported to contribute to
outstanding leadership. The range-of mean societal scores among GLOBE countries
is 4.5 to 6.5 on a 7-point scale. (Character and Creativity in the present study).
Team Oriented leadership is generally reported to contribute to outstanding
leadership. The range of mean societal scores among GLOBE countries is 4.7 to 6.2
on a 7-point scale. (Character and Compassion in the present study).
Participative leadership is generally reported to contribute to outstanding leadership,
although there are meaningful differences among countries and clusters. The range
of mean societal scores among GLOBE counties is 4.5-6.1 on a 7-point scale.
(Compassion in the present study).
Human-Oriented leadership is reported to be neutral in some societies to moderately
contribute to outstanding leadership in others. The range of mean societal scores is
3.8 to 5.6 on a 7-point scale. (Compassion in the present study).
Autonomous leadership is reported to range from impeding outstanding leadership to
slightly facilitating outstanding leadership. The range of mean societal scores is 2.34.7 on a 7-point scale. (Competence in the present study).
Self-Protective leadership is generally reported to impede outstanding leadership.
The range of mean societal scores among GLOBE countries is 2.5 to 4.6 on a 7-point
scale (pp. 41-42).
The importance of this factor/dimension correspondence is highlighted by Link and Gerzon
(2006) when they note that “there is too little discussion about what a global leader is” (p. 5).
American businesspeople want in their superior leaders much of the same attributes as do other
respondents from around the world. The real key now is how do discover and prepare superior
leaders?
Preparing a new generation of superior leaders
The Carnegie Foundation for the Advancement of Teaching (2008) recently announced a
new book authored by William Sullivan and Matthew Rosin published by Jossey-Bass entitled A
New Agenda for Higher Education: Shaping a Life of the Mind for Practice. In their highlights
to the book, the authors began with the question “What is higher education for?”(p. 3).
Insightfully, the introduction continued, “Today’s students will be called upon to meet the
practical and professional challenges that await them with insight, technical know-how and
discerning moral commitment. Their success will be directly determined by how effectively they
have learned to respond to the world in which they live and make informed and responsible
judgments about the role they will play within it” (p. 3). Their new model “focused on the
interdependence of liberal education and professional training . . . which sets out ways of
integrating practices from professional education that engage students in practice and reflections,
with teaching practices from the liberal arts which provide sources for the formation of competent
and responsible persons” (p. 3). The framers finish with “by reconnecting analytic insight with
practical judgment and action, students learn how best to enter situations, how to sustain aims
amid changing circumstances, and how to frame and reframe purposes while seeking with others
a common good” (p. 3).
Warren Bennis and Noel Tichy (2008), when talking about the selection of future leaders,
claimed that “the leader’s most important role is making good judgment calls in three domains:
key people, strategy and crisis. Great leaders have a high percentage of good judgment calls—
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John S. Leipzig
and they are only good if the execution succeeds. The leader’s second most important role is to
develop other leaders who make good judgment calls” (p. 5). Hill in Hemp (2008) believes that
“the kind of leaders we increasingly need: someone who understands how to create a context or
culture in which other people are willing and able to lead” (p. 126).
Hill talks about the type of programs that will create future leaders and notes that “people
will benefit from programs that require them to deal with challenging situations – say, struggling
to accomplish tasks in unfamiliar cultures” (p. 128). Heifetz (2008), in an interview with Brianna
Riggio, summed up leadership education for undergraduates by forwarding a strong belief that
“leaders are not born but made. Talent needs to be harnessed properly. People can be taught how
to practice leadership . . . school is a time for students to practice effective leadership skills both
in the classroom and out on campus simply experiencing their everyday lives” (p. 34). Heifetz
continues, “At school, personal capacities strengthen and develop, giving students a variety of
experiences both in and out of the classroom. Students learn to reflect in the midst of crisis, to
orchestrate conflict among multiple parties, to tolerate ambiguity” (p. 34). Later when talking
about the field of leadership he “admitted that the field itself is still in developing stages . . . we
need to acknowledge that this is a frontier” (p. 34).
When asked to define leadership from his perspective, Heifetz (2008) says he believes
that “leadership is an activity rather than a set of personality characteristics. It is an activity in
relationship to certain problems. It’s not an influence process or set of power dynamics, although
those are tools to be applied with skill . . . people are not always consistent leaders nor are they
always considered followers. There is no such thing as a leader for all seasons” (p. 33).
The present study is informed by Heifetz’s comments. Businesspeople see leadership in
reference to particular activities and they see activity in the military and science and technology
as being better than good and politics and public affairs as less than fair. When asked to rate
individuals as superior leaders, no person rose above the non-mentions further supporting
Heifetz's concept that there are not leaders for all seasons. Character is informed by a tolerance
for ambiguity; being able to navigate through crises; understanding cultural dynamics and
possessing a genuine regard for others and are the key characteristics of superior leaders. Instead
of being attributes, these are leadership actions desired by American businesspeople.
Placing students in challenging situations where they can reflect on their lived experience
is the key to leadership development and for leadership theory building. Our next leaders will be
informed by broad cultural experiences and will be able to understand when their skills match the
leadership demands of the situation while understanding equally when it does not. Superior
leaders develop other superior leaders. These individuals provide others with the opportunities to
grow and to learn through their own lived leadership experiences.
Superior leaders provide others with the necessary resources to succeed, actively support
the decisions of others and silently enjoy the accomplishments of those they mentor more than
they do their own personal successes. Businesspeople in America desire a new generation of
leaders who act with character, compassion, creativity, competence and charm. As new leaders
emerge, America will join the world community as a fully functioning partner dedicated to
working with others to solve issues that are will positively impact the common good.
276
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Bonini, S., McKillop, K., & Whitehouse, A. (2006), “CEOs as public leaders: A McKinsey survey”, The
McKinsey Quarterly, December 2006.
Cliffe, S. (2008), “Have American business leaders disappeared from the public stage?” retrieved April 15,
2008 from http://www.discussion leader.hbsp.com/hbeditors/2008/03/have_american_leaders_
1.html.
EPIC-MRA and Alma College (2007), “Survey on Leadership: Executive Summary”, April 2007.
Hemp. P. (2008), “Where will we find tomorrow’s leaders? A conversation with Linda A. Hill”, Harvard
Business Review), January 2008.
House, R., Hanges, P., Javidan, M., Dorfman, P. & Gupta, V. (2004), Culture, Leadership and
Organizations: The Globe Study of 62 Societies, Sage, Thousand Oaks CA.
Komives, S., Lucas, N. & McMahon, T. (2007), Exploring Leadership for College Students Who Want to
Make a Difference (2nd Ed.), Jossey-Bass, San Francisco CA.
Link, W., Corral, T. & Gerzon, M. (2006), Leadership is Global: Co-Creating a More Humane and
Sustainable World, Independently published by the authors and the Global Leadership Network,
http://www.mediatorsfoundation.org/projects_gln.html.
Riggio, B. (2008), “An interview with Ronald Heifetz”, Leadership Review, Vol. 8, pp. 32-35.
Sullivan, W., & Rosin, M. (2008), A New Agenda for Higher Education: Shaping a Lie of the Mind for
Practice, highlights retrieved April 14, 2008 from http://www.carnegiefoundation.org/dynamic/
publications/elibrary_pdf_715pdf.
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278
Effective Leadership in Crisis:
When Should the CEO Step Up to Be the
Organization’s Spokesperson?
Marela Lucero, Alywin Tan and Augustine Pang
Wee Kim Wee School of Communication and Information
Nanyang Technological University, Singapore
[email protected] / [email protected] /
[email protected]
Implicit in the crisis literature is the role of the CEO in helping the organizations overcome crisis. One
explicit role the CEO can play is to assert leadership by assuming the role of the organization’s
spokesperson. But what remains unclear is under what circumstances should the CEO assume this role,
and at what point of the crisis. Findings showed that for crises that fall under the “organizational
transgressions” category, the CEO played a crucial role in placating publics through assumption of
responsibility of the situation. For crises under the “organizational events” category, as these were largely
internal affairs, the CEO need not necessarily address an external public, unless the crisis spilsl over to the
public realm and the organization’s reputation was on the line. For crises in the “events and actions
beyond the organization locus of control” category, the CEO needs to address the public as the magnitude
of the damage increased. Findings also showed the CEO needs to step up to revise earlier statements made
by organizational representatives and in any situation where the integrity of the organization is called into
question. Findings also suggest that the CEO should step up at the beginning of the crisis if the crisis
pertains to organizational transgression or when the crisis becomes unbearable to organizational
reputation. As counter-intuitive as it may, CEOs should refrain from stepping up at the height of the crisis.
It is hoped that this exploratory study provides a basic template that would illuminate practical insights for
corporate communications practitioners on when to advise the CEO to front a crisis as spokesperson. To
use military parlance, the CEO does not need to appear in every battle as long as the CEO knows how to
win the war. The question this study seeks to answer is how does the CEO know in which battle to appear
to get the optimal mileage?
If there was a cardinal rule in crisis communication, it must certainly be the criticality and
centrality of crisis leadership. Implicit in the leadership literature is the role of the CEO in helping
the organization overcome crisis. Besides setting the direction for the organization, the CEO reestablishes confidence among stakeholders. Boin, Hart, Stern and Sundelius (2005) enumerated
five critical tasks the leadership, which includes the CEO, performs: Sense-making of the crisis,
making decisions to deal with the crisis, framing and making meaning of the crisis to
stakeholders, terminating the crisis to restore normalcy to the organization, as well as steering the
organization to learn from the crisis.
Additionally, one explicit role the CEO should play is to assert leadership by assuming
the role of the organization’s spokesperson (Englehardt, Sallot, & Springston, 2004; Littlefield &
Quenette, 2007; Mintzberg, 1998; Nadler, 2006; Petersen & Martin, 1996). A visible CEO would
demonstrate the importance the organization places on the crisis and dispel any notion that the
organization might renege its responsibility to stakeholders (Ulmer, Sellnow, & Seeger, 2007).
Though the organization spokesman has often been conceived as the organization’s
public face and the media contact person, beyond the media glitz would be someone who plays a
critical role in shaping organizational message, ensuring the consistency of message, and enabling
279
that the organization is seen as a responsible entity, and thereby enhancing image repair
(Englehardt, Sallot, & Springston, 2004; Troester, 1991). Wilson and Patterson (1987) argued
that organizations should identify one key spokesperson to ensure that the organization speaks
with one voice. The spokesperson should preferably not be from the public relations department,
but rather, a corporate executive that is trained by public relations professionals (Wilson &
Patterson, 1987). Assigning multiple spokespersons would make image repair more defused and
ambiguous, as illustrated by the Center for Disease Control’s loss of credibility during the
Anthrax crisis (Barrett, 2005).
One of the most credible spokespersons an organization can put forward is the head of
the organization. This can be the CEO, President or Managing Director if it was a corporate entity
or non-profit organization, heads of government if it was a government institution. For easier
referencing in this paper, we shall use the term, CEO, to refer to such persons of authority and
power. The CEO, by the very nature of the job, must be thoroughly aware of the organization’s
objectives, structures and working mechanisms (Mintzberg, 1998), making the person the most
credible, if not most qualified. In crisis, a CEO who is at the forefront often becomes the Chief
Crisis Manager (Nadler, 2006).
While the credibility of the CEO as an organization’s spokesperson is unquestioned, what
remains unclear is at what point of the crisis should the CEO assume this role and how does this
impact crisis communication. Central to these questions is that, given that the CEO has myriad
portfolios to oversee, should the CEO step up to be the organization spokesperson at the hint of a
crisis, in every crisis? To do so would arguably be an unwise use of the CEO’s time. Or, are there
certain crises where the responsibility can be delegated to corporate communications while the
CEO leads from within?
With these questions in mind, this study sets out to explore the conditions in which the
CEO should assume the spokesperson’s role through meta-analysis of more than 30 cases that
have been empirically tested in studies. These cases are in turn empirically tested using image
repair strategies. Seeger (2002; 2006) argued that understanding the crisis situation is an
important step to assess organizational response. Drawing on this insight, this study aims to
explore the conditions in which the CEO should step up to be the organization’s spokesperson by
examining crisis types, using Diers’ (2007) taxonomy of 18 crisis types categorized into three
broad crisis categories. Framing this study is image repair theory. The key research questions
examined are what crisis types were the case studies categorized into? Under what circumstances
did the CEO become the organization spokesperson? What were the image repair strategies used
by the CEO? How successful were the strategies used? At what point should the CEO become the
organization spokesperson? What impact does this have on the crisis?
The significance of this study is threefold. First, by studying the circumstances in which
the CEO should step up as organization spokesman, it is hoped that this exploratory study can
provide the initial operational framework for CEOs on when they should step up. Second, this
framework is concomitantly instructive for corporate communications practitioners in
organizations as a secondary objective of the study is to understand the circumstances in which it
would be sufficient for practitioners can step up instead of activating the CEO. Last but not least,
this study clarifies the roles of CEOs in crisis. For instance, Pang (2006) argued in his conflict
positioning conceptualization that the dominant coalition, including the CEO, needed to be
involved in crisis. That is one of the five critical factors (i.e., condition) in determining the stance
(i.e., position) and strategies (i.e., action) the organization would subsequently take. This study
sheds light on the degree of involvement and the specific roles and impact the CEO would have
in crisis.
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When Should the CEO Step Up to Be the Organization’s Spokesperson
The CEO’s Role in Crisis Communication
Critical Role of the Spokesperson and Central Role of the CEO in Crisis
In any crisis, the spokesperson plays a critical role in crisis management (Ruff & Aziz,
2003). Troester (1991) argued that the spokesperson is the primary source of information for
stakeholders and establishes a “positive, long-term, ongoing relationship with the media” (p.
529), which in turn disseminate the actions taken by the organization to these stakeholders. The
spokesperson is expected to be the information broker, facilitating speedy transfer of information
across the organization internally, as well as packaging necessary information for the external
audiences (Ruff & Aziz, 2003). By designating a spokesperson, the organization is empowering
and directing the media and stakeholders to the organization’s ordained authoritative source.
Mintzberg (1998) carried out a study through observation of the CEOs of five middle-tolarge American corporations, and he identified ten roles of the CEO in three groups. The first
group identified the CEO in interpersonal roles. To the organization, the CEO plays a figurehead
role. By virtue of the office, the CEO is expected to carry out many social, legal and ceremonial
duties, such as attending or presiding over formal dinners, signing important agreements, meeting
important officials and meeting important clients (Mintzberg, 1998). The CEO must also serve a
leader role and bring direction and training to the organization that the CEO is serving
(Mintzberg, 1998). The third interpersonal role is that of a liaison, which means, the CEO must
interact with people outside of the organization and developing a network of influential partners
for the benefit of the organization (Mintzberg, 1998).
The second group, as identified by Mintzberg (1998), is that of an information broker.
The CEO is expected to monitor information in and around the organization continually. The
CEO then shares this information with the relevant publics, thus serving as a disseminator. The
third role identified by Mintzberg (1998) needs special mention as the CEO is also expected to
play the role of the spokesman, to inform external publics about the organization progress. Pincus
and DeBonis (1994) found that CEOs want to be the external spokesperson of the organization
and are moving toward getting more involved in the communication process with key publics.
The third group is that of the CEO as a decision-maker. The CEO as an entrepreneur is
the responsible agent for change in the organization (Mintzberg, 1998). Another role identified in
the decision-maker group is that of a resource allocator, as the CEO is expected to make the key
decisions in deciding who is in charge of what, and is the authority for all important decisions in
the organization, as the CEO is ultimately responsible for the outcomes (Mintzberg, 1998). The
CEO leads the dominant coalition, which determines the function of public relations, among
others (Petersen & Martin, 1996). The CEO is a negotiator by virtue of the unique position that
allows the CEO to make difficult decisions during the negotiation stages (Mintzberg, 1998).
Finally, Mintzberg (1998) also identified the CEO as a disturbance handler, who will take on the
role of a crisis manager when the organization is faced with a crisis. The CEO is responsible for
risk management, identifying and addressing the full range of risks/crises that could threaten the
organization (Nadler, 2006).
It is apparent that the CEO plays a critical, and central, role in any crisis, as the CEO will
need to deal with managing the situation, communicating with relevant (whether internal or
external) stakeholders, and reporting on the progress of the crisis situation. The CEO has the
primary responsibility of “leading the institution, marshaling the organization’s internal
resources, maintaining continuity and morale, and communicating both inside and outside the
organization” (Nadler, 2006, p. 37).
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Crisis Typologies
Ulmer, Sellnow, and Seegar (2007) defined crisis as a “specific, unexpected, and nonroutine event or series of events that create high levels of uncertainty and threaten or are
perceived to threaten an organization’s high-priority goals” (p. 7, italics in text). A crisis can
range from a fire that destroys operations, to financial uncertainty, and at the extreme, death of
personnel.
Scholars have attempted to categorize the different types of crises using different
measures. Pearson and Mitroff (1993), for instance, classified crisis typologies according to the
crises’ shared characteristics. They created six clusters of crisis types: megadamage, external
economic attacks, external information attacks, breaks, perceptual crises and psycho. They map
the clusters on a perceptual map with two dimensions: the vertical axis referring to nature to a
crisis and the horizontal axis referring to how the crisis is initiated. They defined the nature of a
crisis as ranging from human/social to technical or economic. The horizontal axis, how a crisis
was initiated, ranged from crisis emanating from a normal occurrence that escalated to a crisis, to
crisis caused by an extreme/deviant occurrence. In each of the quadrants are crises types, for
instance, megadamage, characterized by environmental accidents and catastrophes, as initiated by
a severe source, lies on the upper quadrants while in the lower quadrant lie perceptual crises,
characterized by damage to reputation as emanating from normal occurrences.
Coombs and Holladay (2002) classified crisis typologies such that they can be organized
and integrated into crisis response strategies. They identified three distinct clusters under which
these 13 crisis types are categorized: the victim cluster, whereby the organization is a victim of
the crisis and bears minimal responsibility for it, such as in cases of natural disasters, workplace
violence, rumors and product tampering; the accidental cluster, whereby the organization did not
intend to create the crisis and bears some responsibility for it, such as in cases of challenges,
megadamage, and technical breakdowns- accidents and recalls; and the preventable cluster,
whereby the organization purposely put the stakeholders at risk, or took inappropriate/ minimal
action to prevent the crisis from occurring, such as in cases of human breakdown and
organizational misdeeds. In the last cluster the organization bears strong responsibility for the
crisis.
Diers’ (2007) study consolidated the existing literature and classified them into three
broad categories, namely: 1) Organizational Transgressions; 2) Organizational Events; and 3)
Events / Actions outside of the Organization Locus and Control. Drawing from past literature,
Diers (2007) also identified 18 “types” of crisis that can be broadly categorized into the three
overarching classifications.
The first broad classification is that of organizational transgressions, or crises which can
be attributable to the organization, be it through intentional or unintentional actions (Diers, 2007).
Diers (2007) classified eight types of crises under this category: 1) illegal corporate behavior ; 2)
technical breakdown accident; 3) technical breakdown leading to product recall; 4) megadamage;
5) human breakdown leading to an industrial accident; 6) human breakdown leading to a product
recall; 7) organizational misdeed; and 8) organizational misdeed resulting in injury/death.
The second classification is that of organizational events, or crises which can be possibly
(but not necessarily) be in the organization’s locus on control, and may or may not have a
negative impact on the organization target audience but nonetheless is a crisis to the organization.
Diers (2007) listed four types of crises under this category: 1) mergers and failed mergers; 2)
strikes; 3) economic downturns resulting in organizational actions; and 4) workplace violence.
282
The last classification is that of events /actions outside of the organization locus of
control, which refers to an event that the organization has no control over, but the resultant
impact still brings about crises which the organization has to address. Diers (2007) listed six types
of crises under this category: 1) rumors; 2) malevolence / product tampering; 3) challenge; 4)
shifting political attitude; 5) natural disasters; and 6) terrorist attacks.
In this study, Diers’ (2007) typology is used because it is arguably the most
comprehensive classification since it consolidates existing literature. Examining crisis though
typologies affords researchers the context so as to determine organizational response (Coombs &
Holladay, 1996, 2002; Diers, 2007; Hearit, 1999; Pearson & Mitroff, 1993). In this study, the
context would enable the authors to examine the conditions and circumstances for the CEO to
step up.
Image Repair Theory
Understanding what communication strategies the CEO as the organization’s
spokesperson uses during crisis is the theoretical lens in which this study was carried out, against
the backdrop of crisis typologies. In Benoit’s (1995) image repair theory, he has developed five
general image repair strategies, denial, evasion of responsibility, reducing offensiveness of event,
corrective action, and mortification. Embedded in each of the general strategies are sub-strategies.
Denial
There are two ways by which an organization can issue a denial: simple denial, which
entails denying the action for which the rhetor (individual speaker or organization) is being
accused of (Taylor & Caldiero, 2005), and shift the blame, which entails arguing that another
organization is responsible for the act (Benoit, 1997).
Evasion of Responsibility
There are four ways by which an organization can evade responsibility: provocation,
defeasibility, accident and good intentions. In provocation, the rhetor claims that the
issue/offensive action is merely a reaction to a previous offensive action by another organization
(Brinson & Benoit, 1996). In defeasibility, the organization claims that there was a lack of
information about the situation or lack of control over certain elements thereof (Benoit, 1997;
Brinson & Benoit, 1996), resulting in the offensive event. In accident, the organization claims
that the situation was brought about by an accident (Benoit, 1997). If the public believes that the
offensive action was caused by an accident, they are more likely not to blame the organization for
it, reducing the impact on the organization’s image (Benoit, 1997). Lastly, in good intentions, an
organization claims that the offensive action was initially performed with good intentions
(Brinson & Benoit, 1996).
Reducing Offensiveness of Event
There are six ways by which organizations can attempt to reduce the offensiveness of an
event. Bolstering, whereby the organization attempts to restore positive feelings towards them by
reminding the public of their positive attributes and by expressing sympathy (Benoit, 1997).
Minimization, whereby an organization attempts to downplay the event and make the audience
perceive the event to be not as severe as it seems to be (Benoit, 1997). Differentiation, whereby
an organization attempts to distinguish the event from other similar, but more offensive situations
(Brinson & Benoit, 1996). Transcendence, whereby the organization attempts to place the
283
situation in a more positive light (Benoit, 1997; Brinson & Benoit, 1996). Attack the accuser,
whereby the organization attempts to reduce the credibility of the accuser and to make their initial
accusations less impactful (Benoit, 1997). Lastly, compensation, whereby the organization
attempts to provide some sort of remuneration (whether financially or some other form) to the
affected publics (Taylor & Caldiero, 2005).
Corrective Action
When an organization is facing a crisis, they can pledge to correct the situation by
restoring the state of conditions to the status quo, and committing to prevent the crisis from
reoccurring (Benoit, 1997).
Mortification
The last strategy entails accepting responsibility for the offensive act, apologizing and
asking for forgiveness (Benoit, 1997; Brinson & Benoit, 1996; Taylor & Caldiero, 2005).
Against this backdrop, this study examines,
RQ 1: What crisis types were the case studies categorized into?
RQ 2: (a) Under what circumstances did the CEO become the organization
spokesperson? (b) What were the image repair strategies used by the CEO? (c) How
successful were the strategies used?
RQ 3: (a) At what point should the CEO become the organization spokesperson? (b)
What impact does this have on the crisis?
Method
This study begins with a meta-analysis and review of literature on crisis communication.
The meta-analysis method is useful to combine different data in various studies of one topic into
one comprehensive study (Dahlel, 2003; Neill, 2006; Wimmer & Dominick, 2006). While it may
be useful to survey organizations affected by crisis, the authors argue that as an exploratory study,
it would begin by exploring existing case studies and identify the various element in each crisis.
Pompper (2007) argued that a review of literature specific to a field, in this case, crisis, would
yield a further understanding of its development and identify future areas of research. It is
through further detailed examination of these cases that this study seeks to understand the
importance of the CEO in crisis communication.
Data Collection
Literature review
As each crisis was unique in its own way, it was important to study as many case studies
as possible to understand the various circumstances in which the organization is plunged into a
crisis. The first order search criterion centered on the crisis literature. These cases were
categorized into the different crisis typologies using Dier’s (2007) framework. In all, 4 books, 33
journal articles and 16 news articles from the newspapers and the Internet were chosen to further
understanding of crisis leadership and image repair. Whilst the literature search was not restricted
to any particular time frame, attention was paid to ensure that all relevant crises types in the
typology had at least one case. While most of the cases occurred before 1995, most of the cases
(save one) were published after 1995; after Benoit’s (1995) image repair theory became a useful
tool in analyzing crisis situations. In all, 33 cases were identified.
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News articles
Wimmer and Dominick (1997) asserted that case studies were time-tested means of
evaluating business practices. Stake (1995) argued that case study enabled researchers to
understand the embeddedness and interactions these processes had with their larger contexts.
Case studies, in the context of organizational studies, are in-depth studies of people, processes,
and protocol (Stacks, 2002). The essence of case study is, thus, to “illuminate a set of decisions,
why they were taken and how they were implemented, and to what result,” argued Yin (2003, p.
12).
The second order search centered on news articles. Further information about the cases
was explored by diving into the news articles relating to them. Attention was paid to whether the
CEO stepped up during the crisis, or if someone else did.
Data Analysis
Analyzing context
The purpose of case studies is to empirically investigate a “contemporary phenomenon
within its real-life context” and address a “situation in which the boundaries between
phenomenon and context are not clearly evident” (Yin, 1993, p. 59). Each case was analyzed for
their intrinsic value (Stake, 1998), in detail and the unique contexts. Themes and patterns were
identified from each case, from the literature as well as news articles, with the aim of
understanding the context and circumstance of the crisis, and if the CEO had played a crucial role
in communicating to the external publics.
Analyzing strategies
Some of the studies examined were empirical tests using image repair strategies. For the
others that were not, the authors examined them by applying the image repair theory on them to
identify the strategies used; this was especially so for news articles selected. A two-level
approach was thus used to study the cases. The first level entailed re-visiting well-documented
journal articles that used prominent crisis situations in recent times as case studies for application
of image repair strategies. The second level used news articles that either furthered the
understanding of the studied cases; or in the case of Dier’s (2007) typologies of rumours;
organizational misdeeds without injury; and product recalls (due to human or technical errors)
served as the primary research resource as no other relevant journal article was identified.
Journal articles with image repair strategies used as a framework provided ready resource
into the insights of the thinking and strategies of the organizations at that time. From the
literature, it was then inferred as to when the CEO stepped up (if he did at all), and whether image
repair was ultimately successful. For the news articles chosen, Benoit’s (1995) image repair
theory was used as a framework in first identifying the strategies used; followed by inferring the
timing at which the CEO appeared and to what effect.
Findings and Discussion
This section is distilled into four categories. First, situations which require the CEO to
step up; second, situations when the CEO did not step up; third, situations where the CEO should
have stepped up; and four, situations where there is no need for the CEO to step up.
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When the CEO needs to step up
Accidents (Technical or Human Error)
Organizations may find themselves in a situation when a technical or human error by the
organization results in an accident. An excellent example is an airline crash where the accident
may have been caused by technical faults on the aircraft, or by pilot error. In May 1996, Valujet
found itself in this position when its plane crashed shortly after takeoff, an accident which
resulted in the deaths of 110 passengers and crew members. Englehardt, Sallot and Springston
(2004) analyzed the case to understand Valujet’s crisis communication during this crisis. It was
found that mislabeled oxygen canisters, which resulted in a leak and a fire, led to the accident.
Civil aviation authorities (like the NSTB) and Sabretech, a contractor with Valujet, alongside
family victims were all embroiled in the crisis. Valujet engaged in shifting responsibility to
Sabretech for the canister but this was met with little success (Englehardt, Sallot & Springston,
2004).
The President of Valujet, Lewis Jordon, stepped out immediately, serving as the
organization’s primary spokesperson at the press conference on May 11, 1996 (on the day of the
crash), (Englehardt, Sallot & Springston, 2004). He utilized bolstering strategies by empathizing
with the families of the victims, and corrective action strategies by announcing the measures they
will be undertaking to ensure the safety of their passengers. Valujet’s crisis communication
efforts in this situation were largely lauded by PR experts (Englehardt, Sallot & Sprinston, 2004).
It can be inferred that the CEO’s appearance to make a statement can be seen as a good
move by the organization. Accidents resulting in death or injury with which the organization has
great locus of control or at least perceived to have a great locus of control (Coombs, 1995) will
undoubtedly cause public perception to be against the organization’s favor. The CEO’s
appearance and his statements will be able to set the stage for how the organization is prepared to
tackle the crisis, and his presence will provide the public a credible source in which to understand
the organization stance.
Organizational Misdeed with No Injuries
Car manufacturer Chrysler, in 1987, was accused of disconnecting the odometers of
brand new cars, allowing executives to use the car and then eventually selling these off as brand
new (Holusha, 1987). Chrysler CEO Lee Iacocca admitted to this practice but contended that it
was not illegal to do so. He maintained that this was a case of bad judgment on their part, and that
is was a mistake (Hearit, 1994). Intel, on the contrary, was found to have released the Pentium
chip, despite knowing that it may cause calculation errors. CEO Andrew Grove, initially issued a
statement in an online IT community, trying to minimize the claim, saying that the error can only
occur once in 27,000 years of use (Hearit, 1999). He even issued what seemed like a challenge,
saying that if the user has to perform sophisticated enough calculations for the error to be
significant, Intel will replace his chip. Subsequently, the error was found to occur more frequently
than Intel had claimed, and IBM engineers said it can occur once every 24 days (Hearit, 1999).
Soon after, Grove, along with the other executives, appeared in an advertisement announcing that
consumers can exchange their current Pentium chip with a new one that doesn’t carry the flaw
(Hearit, 1999).
Because the transgression was clearly intentionally committed by the organization, even
with the argument that it will cause no harm, because it was found out by the public, the CEO had
to come out to let their publics know that the organization is sincerely remorseful of their actions.
However, by initially appearing somewhat defensive, Intel CEO received a lot of criticism. He
was publicly proven wrong and that added to the severity of the situation.
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Mortification, corrective action and bolstering often characterized the strategies
employed when the organization got its hand “caught in the cookie jar,” to use layman language.
Bolstering statements that remind people of the organization’s longstanding good track record
and relationship with their consumers deflect the impact of their outright apology.
Organizational Misdeed with Injuries
In July 1991, Dow Corning Corporation saw the beginning of a public relations
nightmare that would ultimately took three years to recover from (Brinson & Benoit, 1996). The
crisis arose from the sale of silicon-breast implants, and involved a large number of stakeholders:
the organization itself, the Food and Drug Administration, breast implant recipients and their
lawyers, and the news media. Brinson and Benoit (1996) analyzed the case as going through
three phases in its image repair discourse, with all three phases having a consistent line of
messaging – that the silicon-breast implants were safe (Brinson & Benoit, 1996).
The first phase was classified as the “simple denial” phase (Brinson & Benoit, 1996). At
the behest of a Congressional sub-committee hearing and public complaints, the FDA demanded
Corning to show proof of the safety of the silicon-breast implants. The organization responded
by releasing documents stating that the breast implants do not increase the risk of breast cancer.
The spokesperson quoted was J. Kermit Campbell, one of the group’s vice-presidents. However,
the FDA rejected Corning’s explanations, which led to the second phase of the crisis wherein, the
FDA continued to question the safety of silicon-breast implants, the misleading information on
the “hotline” established by Corning to inform breast implant recipients, and the revelation of
internal documents that implied Corning were aware of the potential risks of the product but
proceeded to manufacture them anyway (Brinson & Benoit, 1996). The challenge about the
safety of silicon-breast implants undermined Dow Corning’s public image, and were met with
denials, minimization, attacking the accuser, and bolstering strategies by the organization
(Brinson & Benoit, 1996). They continued to deny that the implants were unsafe, asserted that
women who have had implants were completely satisfied, attacked the FDA for not reviewing
earlier documents released by the organization in detail, and expressed that the organization was
willing to do more research on the matter.
Subsequently, after damages were awarded to a “victim” of the implants, Dow Corning
faced even greater pressure. Internal documents that showed Dow Corning was aware of the
potential risk came to public scrutiny. Top executives Robert LeVier and Robert Rylee continued
to front the organization, utilizing the earlier strategies, as well as employing transcendence, by
saying that the need of the women for breast implants outweigh the perceived risk (Brinson &
Benoit, 1996). In the final phase, Dow Corning replaced two senior executives, and designated
Keith McKennon to the post of CEO. McKennon immediately went to the forefront, and used
mortification and corrective action strategies to soothe public sentiments. He first promised that
documents requested for would be released, and set about to assure the public that the
organization’s first priority is to its clients, promising help for women who wish to have their
implants removed. The apologetic and conciliatory tone used reduced the attention by the FDA
and the media considerably (Brinson & Benoit, 1996).
In the Dow Corning case, the CEO only stepped up at the peak of the crisis. The initial
two phases were met with denials from the organization, utilizing senior executives, but this was
not sufficient to placate the key audiences (FDA and the media). It was only with the
replacement of the CEO, and with the new CEO stepping out to change image repair strategies
(shift to mortification and corrective action strategies) that allowed Dow Corning to gain some
measure of success in image repair (Brinson & Benoit, 1996).
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Workplace Violence
Pomerenke’s study (1998) looked into the class action sexual harassment lawsuit filed
against Mitsubishi Motors (MMMA) in 1996. When the crisis erupted on April 9, with the filing
of the lawsuit, MMMA put forward a corporate spokesperson, Gary Shultz, to handle all the
public statements by the organization. At this point, the organization’s stand was a firm denial of
all the allegations. The employees were divided, with some groups supporting the women who
filed the class action, and some supporting the organization. When the MMMA supported a
“march” for the organization, the CEO, Tsuneo Ohinouye, came out with a statement in the
organization newsletter, thanking the employees who participated (Pomerenke, 1998).
Throughout the development of the case, Shultz remained the public spokesperson. Fifteen days
later, the organization decided to change its stance with an announcement made by the CEO in
his first public statement during the crisis. Ohinouye announced that MMMA would be settling
the case and admitted that sexual harassment cases had been filed since the plant opened in 1986
(Pomerenke, 1998). After this, Ohinouye continued to address the public, and later announced
changes in MMMA’s corporate policies.
Because the organization first had a corporate spokesperson who vehemently denied all
the charges, the situation spiraled out of control because all the employees were rallying behind
the statements issued on their behalf. Pomerenke (1998) asserted that this denial and
defensiveness might have distorted the messages sent to the employees and the public. The
CEO’s mortification strategies and promises of corrective action alleviated the tension and
allowed MMMA to settle the case and move forward.
Challenges
In November 1996, Texaco was accused of racism and their hard-won customers started
organizing a boycott (Eichenwald, 1996). This happened when a secret tape of a conversation
between four top executives was released to the media. In it, the four executives made racist
remarks, and soon there was a public outcry over the statements made. The accusations made
were widely, negatively, covered in the media and even chairman, Peter I. Bijur, received hostile
mails from the organization’s customers (Brinson & Benoit, 1999). Bijur became involved in the
management of the crisis right from the start. On the day the article detailing the tape was
published, he immediately sent out a news release, and sent letters and a video message to all
employees (Brinson & Benoit, 1999). The following day, he appeared on ABC’s Nightline to
address the issue. Bijur’s initial press release contained bolstering and corrective action
strategies, first reiterating that Texaco did not condone racist behavior, and secondly, the promise
that an investigation was underway and that appropriate action would be taken if the allegations
were confirmed. During the interview on Nightline, Bijur employed similar strategies, reiterating
the same message, and included mortification as well, by apologizing to all African Americans,
employees and citizens of the country alike. Finally, he laid the foundation to appropriately shift
the blame to the few executives involved and isolate them from the rest of the organization
(Brinson & Benoit, 1999). His subsequent press releases and statements, as well as during
meetings with African American leaders, all used similar strategies. The end result was telling:
Stock prices rebounded and boycotts were called off and in a short span of time, and negative
press and criticisms died down (Brinson & Benoit, 1999). Bijur’s image repair effort was
evaluated to be successful (Brinson & Benoit, 1999).
When the CEO did not step up
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Strikes
During the 1967- 1977 Los Angeles Herald Examiner labor strike, publisher George
Hearst Jr., grandson of Hearst founder William Randolph Hearst, never publicly addressed the
crisis (Brennen, 2005). He worked aggressively to break the union and the strike, and to win the
labor case brought up against the organization, but he never issued public statements regarding
the matter (Brennen, 2005; Time, 1968). Dan Goodgame (1987, as cited in Brennen, 2005) wrote
that the Hearsts were not predisposed to talking about their businesses to anyone. Only
negotiators and organization spokespersons handled the media coverage the event generated.
Similarly, in the 1997 UPS strike, the CEO was not designated as the spokesperson. UPS
initially designated its chief negotiator to be the spokesperson, but when the strike started
attracting a lot of media attention, the organization started considering CEO James Kelly to be the
spokesperson (Miller, 1999). However, Kelly had only joined the organization 7 months prior to
the strike, and the organization deemed him unprepared for the media spotlight. The organization
designated its national spokespersons to handle the media onslaught.
Strikes are inherently internal organizational crises that devolve into the public sphere
because of the clamor by the strikers. Because of the nature of the conflict, the CEO does not
need to address the general public, unless the reputation of the organization is put on the line
because of smear campaigns and increased media attention. Kumar (2001) argued that media
coverage of strikes is generally favorable to the organization, so the organization do not
necessarily have to generate more attention to themselves by “washing their dirty laundry” in
public.
Rumor
In 1998, Pepsi accused Coke of using intimidation to restrict competition (CNN Money,
1998), and filed an anti-trust lawsuit against them for it. Coke responded by using simple denial.
The case was dismissed two years later (Winter, 2000). At the forefront was Coke’s
spokesperson Bill Hensel.
In cases of rumor, and assuming that the rumor was baseless, it can be posited that the
CEO does not need to step up to address the issue. The truth of the matter will eventually come
to light, and rigorous defending on the part of a credible spokesperson would suffice. Rumors
imply that what is circulated may be false. The real issue stems from an organization’s failure to
address it early on. Letting baseless rumors fester allows it to become entrenched in the public’s
perceived reality. As Benoit (1997) stated, perception is more important than reality, and
managing public perception is key in handling rumors.
When the CEO should have stepped up
Illegal Corporate Behavior
In 2001, investment banking giant Merrill Lynch was accused, and subsequently
investigated, of banking fraud by the New York State Attorney General, Eliot Spitzer (Hearit &
Brown, 2004). Nearly a year later, on April 9, 2002, the crisis reached its peak when Spitzer
announced his findings and accused Merrill Lynch of giving “tainted” advice to clients
(McGeehan, 2002b), purposely misleading brokerage clients to invest in “junk” stocks, in the
process helping them retain these poorly performing companies as investment banking clients to
boost their bottom line (Hearit & Brown, 2004). Soon after, the organization issued statements
denying the accusations and attacked Spitzer by minimizing the evidence he presented
(McGeehan, 2002c). Official statements were released, and unnamed executives and Vice
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Presidents for various departments also gave out statements (McGeehan, 2002c; Morgenson,
2002).
On April 26, over two weeks after Spitzer’s announcement, the CEO, David Komansky,
made his first statement regarding the issue in the organization’s annual meeting (McGeehan,
2002a). He spoke to shareholders and apologized for the behavior of some of Merrill’s analysts.
He also defended the organization, emphasizing that the action was only done by some of
Merrill’s analysts, should not be generalized to the entire organization, and that these actions
were not in accordance to their standard practices (McGeehan, 2002a). His statement could be
seen as an act of mortification, and, by promising to change policies involving analysts,
corrective action.
In a similar case, trading organization Putnam also took a while to address the issue to
their key publics. The accusations of wrongdoing by some of their analysts started in late 2000,
and only when they were legally charged did CEO, Larry Lasser, officially addressed their
clients. Lasser released a letter to apologizing to the organization’s clients (Caffrey, Healy, &
Kerber, 2003).
In both cases, the CEO stepped up at the height of the crisis, issued the corporate
apology, and subsequently left the organization. However, it is noticeable that their appearance
was directed towards clients and shareholders, two key publics directly affected by the crisis.
Shareholders and clients will experience the direct impact of the transgression via a drop in share
prices and impediments in business operations. Secondary publics received information on a
second-hand basis, through media reports, and were not directly addressed by the CEOs.
Legal implications aside, where possible, it is argued that the CEO has to step up when
the organization is under fire to assuage the doubts and concerns of stakeholders, and to reestablish faith in the organization. The perception of fraud hits at the very integrity of an
organization, it is the core of its survival, and any threats to this, can potentially be fatal to an
organization.
Megadamage
On March 24, 1989, the Exxon-Valdez ran aground in the Prince William Sound in
Alaska, spilling millions of gallons of crude oil into the ocean and causing an ecological disaster
of enormous magnitude, affecting marine life, as well as the livelihood of many fishermen
operating in the area (Pauly & Hutchinson, 2005). Seitel (1994) stated that Exxon did little, said
little and lost much in their public relations effort in this situation. Using Benoit’s (1997) image
repair theory, Exxon engaged heavily in shifting the blame, trying to pinpoint slow recovery
efforts on the Coast Guard for their slow approval processes. They also tried to shift the blame to
the captain of the ship, who was purportedly drunk at the time of the incident (Brinson & Benoit,
1999). This ultimately failed and Exxon’s reputation still suffers from the fallout from that
incident until today. Although ultimately Exxon did engage in corrective action (spent over two
billion dollars to clean up the oil spill), they did not actively publicize their efforts (Seitel, 1994).
Throughout the episode, their CEO Lawrence Rawl was not actively involved in the public
relations effort and in fact, tried to stay clear of public scrutiny (Pauly & Hutchinson, 2005).
When he did appear, he merely explained what the cleanup efforts entailed and appeared aloof
and uncaring (Pauly & Hutchinson, 2005). It took Exxon’s chairman a full week to issue a public
statement and ten days before it apologised for its role in the crisis (Seitel, 2004).
It can be inferred that a megadamage situation, it is imperative that the CEO needs to step
up to deliver a public statement to calm the situation by virtue of the authority of the office in
portraying the organization to be in control of the situation. Had Lawrence Rawl appeared earlier
to take responsibility, Exxon might not have faced such a damning public relations nightmare.
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When the CEO need not step up
Product Recall (Technical or Human Error)
When Sony’s laptop batteries were short-circuiting, causing fires, they issued a global
recall of all the battery units, both those sold with laptops and those sold separately (CPSC,
2006). Sony claimed that the recall was done only to alleviate the growing public concern, and
maintained that their products remain safe. The day after, Sony’s CEO, Yutaka Nakagawa, issued
a statement in a press conference, apologizing for the worries caused by the global recall
(Kageyama, 2006). This statement can be seen as a bolstering strategy, instead of mortification,
as the apology was offered for the “worries” caused by the recall and not for the faulty products.
Likewise, in August 2007, Mattel CEO Robert Eckert, immediately issued a statement
following the announced recall of Mattel toys when they were found to have been made with lead
paint. In an interview, he admitted that something went wrong when Mattel’s long-time supplier
was found to have supplied them with toys made with lead paint (Story, 2007). The CEO also
issued a message to its consumers through a written letter and video clip on their website,
www.mattel.com. In his video, Eckert outlined the new procedures they have put in place and
stressed that he sincerely “apologize for the situation” (Mattel, 2007), further bolstering Mattel’s
position as an ‘ally’ to their consumers.
Product recalls due to technical breakdowns do not necessarily incriminate organizations,
so the appearance of the CEO is merely to “hold their stakeholders’ hand”, to create and/or
strengthen a bond with their consumers and key publics. In this case, it is not necessary for CEOs
to undertake the task of addressing the public, as long as the thrust of the image repair strategy
remains directed towards bolstering their image to consumers, and appropriate corrective actions
are implemented.
Malevolence/ Product Tampering
The case of the Tylenol tampering in 1982 has become a landmark in crisis
communication study (Falconi, 2007; Pauly & Hutchison, 2005; Trujillo & Toth, 1987). In
September 1982, Johnson & Johnson received word that several deaths have occurred resulting
from their Tylenol capsules (Pauly & Hutchison, 2005). It was found that the deaths were caused
by Tylenol capsules laced with cyanide. J&J received a lot of media attention because of this
crisis, but no single event was organized for journalists to report (Carrocci, 1985). J&J did not
organize a press conference for journalists but instead talked to the media on an individual basis
(Falconi, 2007). However, the involvement of CEO James Burke during the crisis has been
largely lauded. He immediately took charge in handling the crisis, forming a crisis management
team and developing strategies in containing the crisis. Most importantly, he was immediately
available to the media for any questions they may have regarding the situation (Pauly &
Hutchison, 2005). He protected the image of Tylenol by successfully employing simple denial
and shifting the blame strategies, ensuring that the media, and the public, are aware that the
incidents were caused by tampering, and not an inherent flaw in Tylenol’s manufacturing (Pauly
& Hutchison, 2005). Despite this finding though, he issued a massive recall of all Tylenol
capsules and introduced a new tamper proof container when they released the product back to the
shelves (Pauly & Hutchison, 2005).
Because the case of the Tylenol tampering has been found to be an act of malevolence by
a third party, the messages crafted for the public emphasized this fact. The CEO had an active
role in managing the crisis, but his appearance in the media and the public was only as a reliable
source. He did not speak in a press conference, nor did the organization provide public
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communication or apologies for the deaths (Trujillo & Toth, 1987). This was perhaps deliberately
done so as not to generate media frenzy.
In this case where the organization was linked to a heinous act, and yet the locus of
control was largely outside of the organization’s scope, the position of the organization became of
paramount importance. Because the CEO was PR savvy, his availability for comment was lauded
and much appreciated by the media. However, this appearance can only be attributed to his PR
savvy qualities and not on the significance of his presence. In this case, had the CEO not been a
good public communicator, a more fitting spokesperson can also be elected to do the job.
Hostile Takeovers / Mergers and Failed Mergers
Another crisis that organizations could be susceptible to is that of hostile takeovers,
mergers and failed mergers. Reber, Cropp and Cameron (2003) analyzed the hostile takeover of
Conrail by Norfolk Southern Corporation in 1996. This event started in 1996 when Conrail
snubbed Norfolk Southern Corporation offer and decided to work with CSX. Norfolk then
mounted a legal and financial challenge to take over Conrail (Reber, Cropp & Cameron, 2003).
David R. Goode, CEO of Norfolk led the campaign to win the takeover bid. He served as the
primary organization spokesperson to argue in the media for Norfolk (Reber, Cropps & Cameron,
2003). The end result was that Norfolk successfully concluded its takeover of Conrail in 1997.
Careful analysis of the case however, indicated that while Goode’s rhetoric in the media
certainly supported his cause, the main factor in the success was most likely due to legislative
victories in court, as well as the ability of Norfolk to put together a better financial offer to
Conrail shareholders. Takeovers, mergers and acquisitions and failed mergers are in the domain
of the business world, and while the CEO definitely must address the internal audience because
they are directly affected by the crisis, it is posited that a competent spokesperson with enough
credibility and seniority would suffice to address the general public.
Economic Downturns
In his study, Christen (1995) looked into the AT&T crisis. AT&T announced its intention
for a corporate break-up in view of competition, new technologies and concerns over shareholder
value. Chairman and CEO Robert Allen announced the corporate restructuring plans and hinted at
potential job-layoffs. The whole affair became a public relations nightmare as financial
journalists started speculating at the magnitude of the job-cuts. This was met with simple denial
from the organization, which refused to confirm estimated job-cut figures. AT&T finally
announced in early 1996 of their plans to dismiss 40,000 workers, and financial journalists
immediately wrote negatively about the situation. This was further compounded by the revelation
of Robert Allen’s pay package, which was in excess of $2.5 million dollars. Christen (2005)
noted that Newsweek described Robert Allen as a CEO who did not know what was going on,
which implied that Robert Allen did make public statements using Benoit’s (1997) image repair
strategy of bolstering by stating his empathy to the people getting fired. AT&T also engaged in
corrective actions, revising their lay-off targets and offering voluntary buy-outs. Their strategy
failed however, especially in light of Robert Allen’s pay package (Christen, 2005).
In an economic downturn resulting in organization action such as layoffs, the
organization can ease public sentiment through the use of sound policies that helped the transition
for affected workers (Christen, 2005). Because this matter is largely an internal crisis, a
spokesperson can address the public, informing them of the events occurring within the
organization. A CEO can choose to appear, and act in his role as a leader to direct the
organization through the difficult period (Mintzberg, 1998).
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After analyzing the circumstances in which the CEO need or need not step up, the crucial
question remains: When should the CEO step up? This is distilled into 3 categories, at the
beginning of the crisis; at the height of the crisis, and when the crisis becomes unbearable.
When should the CEO step up?
At the beginning of the crisis
When the organization has been perceived to have caused or have the potential of causing
widespread harm to society in general (as in the case of Exxon-Valdez) or to individual members
of the public through transgressions committed by its staff or machinery, it is recommended that
the CEO steps up immediately as the crisis begins to hit. The CEO’s appearance will set the tone
of engagement towards the organization’s internal and external publics; lay down the
organization’s stance on the matter and assuage public concerns that such incidents are viewed
seriously, and that the organization was doing everything it could to rectify it. Having the
organization’s top man fronting public displays shows the severity at which the organization
views the crisis, and the resolve it has to return the situation to normalcy.
Stepping up early also applies to transgressions caused by the organization that leads to a
severe loss in reputation (as in the case of Merrill Lynch and Putnam). Again, although there may
not be loss of life or injury, the CEO’s appearance portrays to the public the organization’s
recognition of its fault, and paves the way for further image repair.
At the height of the crisis
In instances where there is no clear accountability when the crisis presented itself, it is
recommended that the CEO does not appear at the onset of the crisis. This is especially true when
there is a chance that the organization is liable for causing the crisis. Aside from the legal
implications of their involvement, the uncertainty surrounding the issue can polarize the public
even without sufficient information. Having the CEO step up and take a stand puts the
organization at a greater risk of worsening the situation.
Another instance when it is recommended the CEO appears is when the organization is
forced to take a negative/unpopular stance. Even if the position is justified, warranted, and backed
up by facts, it is a bitter pill best served by other authoritative spokespersons lower in rank than
the CEO. Only when the negative stance has been articulated and justified does the CEO need to
appear to assuage the public and soften the impact of their otherwise harsh position.
When the crisis becomes unbearable
In the event that an organization’s reputation is threatened, the CEO must appear,
regardless of the kind of crisis it is facing. This is because the threat to the reputation becomes of
paramount importance, and the underlying circumstances that brought it up become secondary.
Whatever remedies the organization will present to correct the situation will be undermined by
the fact that trust in the organization is diminishing.
As the most authoritative figure in the organization, it is up to the CEO to arrest that
downward spiral. He will be the most credible person to diffuse the tension brought about by the
threat, and relieve pressure from the organization to prove itself, thereby allowing them to
continue on with the strategies that are meant to remedy the original crisis.
Conclusion
This study has examined when the CEO should step up to be the organization
spokesperson, should the CEO step up and at what point can the CEO step up.
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There appears to be two recurring trends in the meta-analysis. First, in instances where
organizations have to reverse their initial stance, such as when they have to go back on their word
or overturn initial claims, often made by an organization spokesperson, the CEO has to step up to
give more credence to the new statement/ stance. Second, when a crisis involves the integrity of
an organization, the CEO has to step up in order to give the organization a strong, responsible
face.
As an exploratory study, this study examines and reviews crises that have happened.
Even though attention has been paid to examine every crisis type in Dier’s (2007) typology,
admittedly, some crises have more prominence, hence more information (even in news coverage),
than others. In carrying out a meta-analysis, there are limitations the authors have to accept. First,
the authors have not been able to examine other contributing factors in a crisis like the CEO’s
personality (i.e., whether he is media savvy, introverted, or stern) on crisis communication.
Schoenberg (2005) argued for a crisis leadership model that encompasses personal attributes like
integrity, intelligence, vision, courage, amongst others, that measure a leader’s authenticity and
in turn enables the leader to assert influence during crisis. Second, it is also not able to capture
the effects of the organization’s prior reputation with its publics before the crisis. Lyon and
Cameron (2004), for instance, examined the organization’s prior relationship with its publics and
found the “halo effect” in organizations with firm reputations as “shining stars of social
responsibility” (p. 231) to be usually afforded the benefit of the doubt in times of crises. In that
regard, a public apology during or after the crisis would reinforce the publics’ affection for the
organization. Last but not least, it is not able to examine the level of enlightenment of the CEO
because that would impact on whether the CEO would want to step up in the first place. The level
of enlightenment is one of the key measurements of the characteristics of the dominant coalition
in the contingency theory (Cancel, Cameron, Sallot, & Mitrook, 1997), which has emerged to be
a dominant theory in crisis and conflict management (Pang, 2006). Further research can be
carried out in the future examining these gaps.
Nonetheless, the authors have taken the critical first step to set the research in this area in
motion. This is, at best, an initial template or guide for CEOs or for corporate communications
practitioners to advise their CEOs. Further tests need to be carried out to examine how viable this
template is.
The task has just begun.
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Internal Communication and Storytelling –
Management by Stories
Marianne Wolff Lundholt
University of Southern Denmark
[email protected]
This paper is about communicating change and inspiring others to follow:
"Storytelling is the single most powerful tool in a leader’s toolkit.”
Dr. Howard Gardner
In order to understand why traditional rational communication is not going to change the minds of the
listeners, I will briefly point to the complexity of the human psyche by introducing concepts such as
`confirmation bias´, `the Asch-effect´ and `group thinking´. This will explain why some employers are
hostile to change by nature. I will then turn to alternative ways of communicating change. By changing the
outset of communication from logos to pathos through storytelling, we will see a much more effective way
of not only getting a message across but also stimulating desire. The former World Bank leader Stephen
Denning has pointed out that leaders need to appeal to both heart and mind in order to spark change.
However, most leaders only focus on the mind.
(Abstract Only)
299
Marianne Wolff Lundholt
300
Internal Communication to Enact Active
Communication Behaviour
Alessandra Mazzei
Institute of Economics and Marketing
IULM University of Milan, Italy
[email protected]
This paper draws on the resource-based view of the firm, which highlights the central role of trust
relationships and communication as interaction in the knowledge creation process. This approach calls for
a concept of communication as constructivism and enactment that, in turn, relay on the active
communicational behaviours of all organizational members. Based on this background, the paper suggests
a definition of internal communication as the interactive process aimed at creating the two catalyst
resources for organizing: knowledge and allegiance.
The findings of a qualitative and explorative research based on 10 semi-structured interviews to internal
communication managers and professionals support the resource-based model of internal communication.
The companies studied show a great awareness of first, the relevance of intangible resources such as
knowledge and employees’ attitude to contribute to the company’s success; and second, the necessity of
active communication behaviours at all levels in organization.
Internal communication is conceived as communication flows that take place inside the
organizational boundaries between individuals belonging to the organization itself and that is
targeted to employees. Many scholars point out the relevance of effective internal communication
to improve the external one and to reinforce the organizational cohesion and internal relations
(Argenti, Forman, 2002; Grunig, Grunig, Dozier, 2002; Kitchen, 1997; Sholes, 1997; Grunig,
Hunt, 1984). They, implicitly or explicitly, adopt a system perspective considering the
organization as a system made of many sub-systems interacting among them and with the
external environment. For example: “Organizational communication is the process of creating
and exchanging messages within a network of interdependent relationships to cope with
environmental uncertainty” (Goldhaber, 1993: 15).
Others point out the relevance of internal communication as a relationship management
and commitment building function (Cutlip, Center, Broom, 2006; Jo, Shim, 2005; Argenti, 2003;
Ledinghan, Bruning, 2000; Grunig, 1992), paying greater attention to the linkages among systems
and sub-systems that constitute one organization.
Pre-systemic and systemic views distinguish internal communication from the external
one referring to the concept of organizational boundaries. This is a weak criterion due to two
reasons. First, employees could also be part of external publics, for example an activist group.
Second, mass media can reach an internal audience before the internal communication
instruments. Thus it is very difficult to isolate internal communication flows.
This paper suggests a definition of internal communication that tries to overcome the
concept of organizational boundaries as the main criterion for isolating internal communication.
Based on the Resource Based Theory and the Dynamic Capabilities Approach, the constructive
view of the communication and the Situational Theory of the Publics, the paper proposes
a model of internal communication and a qualitative exploratory research aimed at verifying if the
model could be suitable to describe the current practices spread among companies.
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Alessandra Mazzei
The paper begins with the presentation of the literature review which lies at the
foundation of the theoretical model. It moves on to the presentation of the research design, the
main findings and finally the discussion and some concluding considerations.
The definitions and models of internal communication ever present today in international
literature are rooted to the systemic vision of a company which leads to define internal
communication with reference to a company’s organisational boundaries. In order to overcome
this approach, it was useful to draw on the resource-based and knowledge-based view of the firm,
the prevalent views of the firm in strategic management studies today. This analysis highlighted
the crucial role of communication as interaction, interpretation and enactment. These concepts
underline in turn the relevance of communicational behaviours enacted by all those involved in
the processes that generate value in an organisation. To understand and be able to make
hypotheses on the importance of communicational behaviours, the Situational Theory of Publics
proved useful.
This paragraph delves into three concepts found in international literature: the Resource
Based Theory and the Dynamic Capabilities Approach; the concept of communication as
constructivism and enactment; the Situational Theory of Publics. This conceptual framework
allows us first, to forward a proposal for a new definition of internal communication together with
its aims and processes. Second, to put forward some research hypotheses for a field analysis.
The Resource Based Theory and the Dynamic Capabilities Approach
A company can be seen as a pool of resources whose aim is to transform those resources
into other more valuable resources (Penrose, 1959) or even into distinctive competences
(Selznick, 1957). Such conceptions are at the roots of the Resource Based Theory, which states
that the competitive advantage stems from the firm-specific resources that a company owns and
that assure its uniqueness in its industrial sector (Rumelt, 1984; Barney, 1991). The concept of
company resources has been very much broadened by these authors up to the point of including
financial, physical, human and organisational resources (Barney, 1995).
Companies which are able to choose, guard over and accumulate firm-specific resources
are able to acquire a sustainable competitive advantage. The resources at the basis of the
competitive advantage should be:
- Valuable: that is, apt to support the competitive strategies to seize opportunities and
overcome threats coming from the competitive environment;
- Rare: that is, not common to other companies and thus allowing exclusive
competitive manoeuvres. Common resources to all companies of a given sector are
key to success, but only rare resources guarantee a company long-lasting advantage;
- In-imitable: that is, obtainable by competitors but only with high investments and, in
any case, not perfectly imitable. The most difficult resources to imitate are
characterized by causal ambiguity and high social complexity;
- Non-substitutable: that is, so unique as to exclude alternative resources that can have
the same function and can be easily developed by competitors.
The Resource Based Theory is considered as a static paradigm, focused on the
appropriation processes of the value created through resources. The Dynamic Capabilities
Approach on the contrary is a procedural paradigm centred on the creation of value (Dagnino,
2005; Siano, 2001; Eisenhardt, Martin, 2000; Teece, Pisano, Shuen 1997). According to the
Dynamic Capabilities Approach, the competitive advantage does not come from the owning of
resources but from the ability of a company to access, use, exchange and combine them (Teece,
302
Pisano, Shuen, 1997; Teece, Pisano, 1994). This approach points out that it is not the stock of
resources that is important but the process through which a company uses existing resources, and
generates new resources and capabilities. At the centre of the Dynamic Capabilities Approach lie
the abilities, the routines, the organisational learning, and the co-ordination processes among the
individuals that foster the company’s competitive capabilities.
Some authors have pointed out that the most in-imitable resources are the knowledge
based ones and highlighted the importance of the processes through which individuals integrate
their tacit and specialised knowledge with that of groups (Grant, 1996). Others made claim to the
social nature of the knowledge generation processes in organisations (Nonaka, 1991 & 1994).
Underlying the processes of organizational learning and knowledge generation is a weave
of trust relationships which fosters the exchange and sharing of resources both within the
organisational community and among organisations and sets up the social capital of a company
(Coleman, 1990). Skills, behaviours and interactions of human resources are at the foundation of
intangible resources for competitive advantage (Colbert, 2004). And the question regarding how
can the resources be obtained is central (Priem, Butler, 2001). This paper tries to explore a
communication and behavioural based view of the resources generating process. Effective
knowledge creating and sharing process calls for the inclusion of all organizational members and
then it is a function of integrated internal communication (Kalla, 2005b). The value of
communication could be seen in its contribution to increase the resources of the company
(Fiocca, 2002).
As most in-imitable and non-substitutable knowledge tends to be implicit and embedded
in workers competencies and abilities, companies cannot own their knowledge capital, usually
termed also as human capital. Employees own companies’ human capital (Snell, Shadur, Wright,
2001). Furthermore, the process of knowledge creation and sharing depends upon the social
interactions and relations among employees and among them and external communities. “These
relational elements of learning and competitive advantage extend beyond human capital and
highlight the importance of social capital” (Snell, Shadur, Wright, 2001: 653).
Together, these concepts highlight two aspects:
- intangible resources, and in particular knowledge and trust relationships, are
fundamental elements to the competitive capabilities of a company;
- communication and relationship processes support co-ordination between individuals
and groups, the integration and re-combination of resources.
Knowledge creation is enabled by frequent communications that usually take place
among close colleagues; by trust among people who reciprocally expect that the information will
be delivered on time and will not be disclosed to others; by shared values that guarantee a
common background and avoid or limit misunderstanding; by common objectives because the
exchange of advice and insights is more pertinent if those who offer them know the context and
how they will be used (Kalla, 2005a).
All communication channels, one-way and interactive, face-to-face and mediated, are
used during socialisation, externalisation, combination and internalisation of knowledge
processes (Nonaka, 1994). These are high relational intensity processes and use the highest
number of verbal and non verbal, hot and cold, synchronous and non synchronous signs.
Communication as constructivism and enactment
Over the last decades, communication theory has evolved from the prevailing rational
model to a communication and process-oriented view (McPhee, Scott Poole, 2001). The “rational
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Alessandra Mazzei
model” is based on a fallacy reification of communication that is wrapped within a pre-existing
organisation that determines it (McPhee, Scott Poole, 2001). Research topics such as the
transmission process of information, the formal and informal channels, the information overload,
capacity and adequacy, the message distortion and ambiguity, could be related to the rational
model (Putnam, Philips, Chapman, 1996).
The rational model of communication comprises the dimensional and the configurational
approaches (McPhee, Scott Poole, 2001). The dimensional approach identifies the organization
variables that in turn determine the communication system. For example, vertical hierarchical
levels influence the use of face-to-face communication (MacLeod, Scriven, Wayne, 1992) and the
time dedicated to communication (Yammarino, Naughton, 1988). In this view, organization is a
container and exists before communication occurs (McPhee, Scott Poole, 2001).
The configurational approach considers communication as a variable to take into account
when designing the organization structural features. For example organizational structures serve
as information transfer functions, and also serve other communication-related functions such as
trust building, that are increasingly relevant for new organizational forms such as dynamic
networks (Miles, Snow, 1986), shamrock model (Handy, 1989), virtual organizations (Davidow,
Malone, 1992), and learning organizations (Nonaka, 1994). Configuration of organizational
structures becomes very important in order to foster trust or to enable knowledge creation.
The communication and process-oriented view interprets the concept of organizational
structure in communication terms. Communication is the foundation of organizational structures
and processes. In other words, “structures are constituted by and operate through communication”
(McPhee, Scott Poole, 2001: 537). For example when a manager presents a project through oral
or written communication he is defining the project structure and the actions to be taken.
Tompkins (1984) highlights how many recent studies point out that communication
constitutes organization. “Organizations might be viewed as ‘a system of interacting individuals’,
who through communication are actively involved in the process of creating and recreating their
unique social order” (Tompkins, Wanca-Thibault, 2001: xxi). In this theoretical framework,
communication is both figure and ground, it is equivalent to organization, does not mirror reality,
rather, it creates the social context of organization (Tompkins, Wanca-Thibault, 2001; Putnam,
Philips, Chapman, 1996). Communication is constructive (Miller, 2006) or constitutive (Penman,
2000; Craig, 1999).
James R. Taylor (1993 e 2006) attempts to build a communication-based theory of
organization. He asserts that conversations are the substance of organisations and organisations
are communication systems. In his view, organization is a text produced by means of
conversations among many authors.
Text is the medium of organizational structure and it stabilizes and grounds the
conversation. Conversation, in turn, is the medium of organizational communicative action and it
enacts and transforms the text (McPhee, Zaug, 2000). For Weick (1979) organization is the
process of organizing through the three processes of enactment, selection and retention of sensemaking action.
Based on Giddens studies on constituting communication, McPhee and Zaug (2000) give
the following definition of constitution: “a pattern or array of interaction constitute organizations
insofar as they make organizations what they are, and insofar as basic features of the organization
are implicated in the system interaction” (2000: 4). The authors also bring to the forefront what
communicative constitution of organizations specifically is:
- all communication has constitutive force, the one of the speaker and the one of the
listener, so the locus of constitutive process is the whole process of communication;
304
-
-
in order to constitute a complex organization, a complex relation among
organizational communication processes is required;
not all communication is organizational, as for example a conversation between
friends;
each episode of constitutive communication is interactive, involves multiple
participants, the results of communication episodes are not physically conveyed;
organizations are constituted in four different communicative relations with
members, themselves, internal-subgroups, other institutions. These communicative
flows are membership negotiation, self-structuring, activity coordination, institutional
positioning and are all needed;
the process of constituting organization is not in the hands of powerful members in
the organization. On the contrary, communication even by members with low power
is relevant in the constitutive process.
To our aim, it is extremely worthy to notice that all people are forceful to constitutive process and
that the latter is made by a chain of interactive episodes.
Using a constitutive approach, organizational communication has been defined as the
processes of creation, exchange and sharing of meanings within the internal and external
networks that constitute the organization its-self and its positioning into environment (Invernizzi,
1996).
A new generation of scholars grounds organisational studies in communication theory
and considers organization as communicational in nature. Organisation does not have physical
appearances, but on the contrary, it is a social reality constructed and transformed by social
interaction. At the same time, organisational structures act as a set of rules that shape
communication processes (McPhee, Scott Poole, 2001).
Organisation could be also seen as a symbolic milieu in which organising is
accomplished. Communication is the process of interpreting in order to create, share, and change
meanings of events, actions, conversations (Shockely-Zalabak, Morley, Cesaria, 2002; Jablin et
al. 1987).
Along with overcoming the rational model of communications, scholars are now
considering communication as an enactment process. Enactment theory asserts that social reality
is enacted by members of organizations through communication. Individuals enact organizations
using protocol of interaction coherent with the expectations they share about reciprocal roles
(Heath, 1994).
Companies exist because their members share meaning and coordinate actions based on
the expectations these meanings contain. The meanings that arise in a company are the
products of statements and actions by management along with other personnel; meaning
is not something managers can predictably use to control employees. It is negotiated by
the dialectic of what people do and say (Heath, 1994: 38).
This view of organising focuses on communication and relationship processes which allow a
company, its members, and its external stakeholders to become mutual meaningful and influential
(Heath, 2001).
The considerations made so far, show that the constructive approach to communication
underlines its crucial role to give shape to social reality, organisational action, the meaning of
events, organisational roles and processes. Under this viewpoint, communication is no longer a
mix of information and knowledge flows contained in the organisational system or a messages
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creating and sending function. Communication is a social process of interaction and/or
interpretation to give sense and meaning to events. This is the concept of communication most
coherent with the Resource-Based Theory and the Dynamic Capabilities Approach analysed
earlier.
Furthermore, the theory of enactment highlights that the responsibility of effective
communication does not lie only in the hands of managers. On the contrary, everyone related and
constituting the organisation continuously put enactment processes in place to negotiate meanings
and to make the organisation operating through their acts of communication.
The Situational Theory of Publics
Why and how do people engage in communication? Employees of one company could
contribute in very different ways to organizational life, also from the communication point of
view. Usually internal targets are considered diverse from their communication needs and
expectations viewpoints. Actually, they also engage in different communication actions as
senders and users.
We can find high-lightening insights from the Situational Theory of Publics in order to
understand the different attitudes of interlocutors towards communication (Grunig, Hunt, 1984;
Grunig, 1979). Publics are very different and they can passively process information that they
receive randomly or otherwise they can actively seek information, make an effort to understand it,
spread the information and engage in action. Information found in a pull way are more effective
that the ones received in a push way.
Active or passive communication behaviours stem from three causes:
- problem recognition: is the extend to which people are aware about a situation, think
about it, detect it in order to do something to change it. In case of high problem
recognition, publics probably seek and process information;
- constraints recognition: is the perception of obstacles that reduce the chance to
modify the situation. High constraint recognition implies a low likelihood of
information seeking;
- level of involvement: shows the extent to which people feel affected by a situation.
Usually a high level of involvement is tied to a high level of problem recognition and
a low constraint recognition. People who are very involved are probably very active
in information seeking.
Applying this theory to internal publics in many field research studies, Grunig (Grunig,
Hunt, 1984) found that more involved employees usually behave more actively. The most spread
active communication behaviours differ from the passive ones from many points of view:
- communication channel: involved employees engage actively in interpersonal,
horizontal and crisscross communication; they spend little time in process
information available from formal company media;
- scope of action: involved employees search information from sources specialized in
their field and from other specialists;
- content of communication: involved employees search for management, job and task
related information from multiple sources and also from the environment; less
involved people search for information concerning the employees’ situation such as
pay, benefits, sports, social activities, personal stories from official company media.
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Other scholars point out further behaviours that can be considered active communication
behaviours. Ritter (1999) considers the networking competence as the degree of networking
management task execution and qualification held by people running inter-organisational
relationships. To build and maintain relationship networks with suppliers, clients, competitors,
research institutions, and stakeholders represent a competitive advantage because these
relationships give contact to knowledge. The network competence of a company is measured by
the intensity of interaction with other companies, the position in the communication net, and the
corporate success. We can argue that also relationships with colleagues are very important.
MacMillan, Money, Downing (2000) state that, among others relationship outcomes, one
can add active allegiance, that for example include a person, client or employee, “referring others
to the firm or speaking well of it; contradicting others who seem to be falsely critical of the
business; informing the management of the business if they believe something they observe is
wrong and may harm the business in some way: and, themselves deliberately doing things to
preserve or enhance the good name of the business” (MacMillan, Money, Downing, 2000: 11).
Trust and willingness and ability to interact positively affect relational action such as cooperation
and knowledge sharing (Snell, Shadur, Wright, 2001).
People who put active communication behaviours into effect are key for the intangible
resources generation. Who are supposed to be the more active publics in an organization? Snell,
Shadur and Wright (2001) noticed that some categories of employees, usually core workers and
long term partners, tend to have a relational connection with their employer that is, they have a
commitment-based or collaborative psychological contract. Other categories of employees,
usually job-based employees and contractors, tend to have a transactional connection with their
company, that is they have a productivity-based or a compliance-based psychological contract.
Psychological contract can assume an increasing motivational investment through many
steps: membership, involvement, commitment, engagement, empowerment (Quaglino, 1999).
Membership concerns the aptitude to be part of an organization; involvement refers to the
availability to be implicated into organizational life; commitment implies to see one’s own
advantage into company’s advantage; engagement entails a wider loyalty towards company’s
stakeholders; empowerment brings the search for one’s own potentials and the availability to
support others’ development and implies the intention of interlocutors to keep the relationship
alive thanks to personal contribution.
These increasing levels of motivational investment could describe very well the different
level of involvement that employees are inclined to have and consequently their attitude to
behave in an active manner.
The ones who have a high relational psychological contract with their organization are
the ones contributing the most to company’s success (Snell, Shadur, Wright, 2001) and one can
argue the most active in terms of communicational behaviours.
It is worth highlighting one important implication from Grunig’s situational theory. In
order to enhance the active communication behaviours of employees, the possible strategy is to
raise the commitment of human resources, to eradicate the limits to action, to give evidence to the
issue informing a company’s agenda.
Research Design and Method
From what has been analysed so far, communication is a process of interpretation,
interaction, and enactment which helps to generate the intangible resources of an organisation.
According to these theoretical suppositions, internal communication can be defined as a
set of interactive processes aimed at generating the catalyst resources that make a company
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work. These resources are knowledge, that fuels working processes, and allegiance of employees
with the organization, that brings them to put their knowledge into company processes (Mazzei,
2004 & 2007).
Knowledge is an indispensable element for realising the value generating processes of a
company, above all in a knowledge based productive setting. And as argued before, knowledge
put into working processes lies in employees’ cognitive schemes.
What does drive employees to apply their knowledge in favour of the company they
belong to or work for? It is the willingness of pursue their own and the company’s advantages
and the commitment to keep such a relation alive. Active allegiance is therefore what triggers
people to employ knowledge in favour of the organisation. Knowledge and allegiance are thus
catalist resources that activate and fuel company productive processes and mutually strengthen
each other (Exhibit 1).
Knowledge
Allegiance
EXHIBIT 1: Internal communication to generate knowledge and allegiance
Research hypotheses
The first hypothesis of this research is that internal communication is no longer a
message targeting function, such as to print the house organ, to implement the intranet or manage
the annual convention.
Internal communication is a network of interactive processes aimed at generating the catalyst
resources for organizing, namely knowledge and identification.
Most literature asserts that internal communication goals are (Argenti, 2003):
- to improve moral;
- to foster goodwill between employees and mangers;
- to inform;
- to explain compensation and benefit plans;
- to increase employees understanding of the company (products, organization, ethics,
culture, external environment);
- to change employees behaviour toward becoming more productive, quality oriented,
and entrepreneurial;
- to increase employees understanding of health and social issues or trends;
- to encourage employees participation in community activities.
These are goals related to the sense of belonging to a company and the organizational
climate, the sharing of information about the company for a greater awareness of organizational
directions and needs, the spreading of information about employees self interest such as
rewarding and career setting. Only one of the listed goals is related to employee’s behaviour, and,
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in any case, not related to communication behaviour. Most of the literature is far from
highlighting the employees’ role as active communicators.
The second hypothesis concerns the characters acting communication processes.
Knowledge and allegiance are generated through social interaction in formal and informal
contexts such as teamwork, relationships with constituencies, and so forth. Thus, they rely upon
the active communication behaviour of each person contributing to the organizational processes:
for example employees, co-makers, and suppliers.
The main objective of internal communication is to enact active communication behaviours
throughout organizational levels.
Merging all insights deriving from theory regarding publics and their communication
behaviours, we can formulate a proposal for an enlarged list of active communication behaviours:
- to search, use, spread, and share information and knowledge purposefully;
- to search for informal, horizontal, cross-functional communication;
- to engage in adjustment for mutual understanding;
- to search information about corporate strategies and values;
- to inform managers about potential or already occurred problems;
- to spread one’s own company reputation;
- to defend one’s own company against attacks;
- to keep relations with colleagues, clients, partners alive.
In order to test the two hypotheses, a resource-based model (RBM) for internal
communication has been drawn in contrast with a system-centred model (SCM) of internal
communication, delineating the following features: a) internal communication definition criteria,
b) aims, c) interlocutors segmentation variables, d) channels, e) use of internal communication to
improve co-workers’ relations, f) internal communication plan frame, g) valued and expected
results (Table 1).
a) Internal communication definition criteria in SCM are mainly organizational
boundaries and distinction between the internal and external environment, while in
RBM are intangible resources such as motivation, involvement, trust, loyalty, and
knowledge.
b) Internal communication aims in SCM are: targeting message, spreading information,
delivering communication outputs, bringing people toward company’s objectives,
and standards, creating the willingness to be a member of the company. On the
contrary, in RBM, the main goal is to enact communication and relational effective
behaviours.
c) Interlocutors’ segmentation criteria in SCM are: hierarchy, organizational function,
age and level of education. In RBM main segmentation criteria are competencies and
different relational connection to the company such as, job-based, compliance-based,
commitment-based and collaborative (Snell, Shadur, Wright, 2001). In RBM internal
communication targets include employees, co-makers, consultants, contractors and
partners.
d) Channels and instruments in SCM push information and content, while in RBM they
offer content in a pull manner and are open to interlocutors generated content and
activities.
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Internal
communication
definition criteria
Internal
communication aims
Interlocutors
segmentation criteria
System-centred model
Organizational boundaries and
distinction between internal and
external memberships
Message targeting, diffusion of
information, communication output
To bring people towards company
objectives and standards
To create the willingness to stay and to
be part of the organization
(membership)
Employees
Hierarchical level
Organizational function
Age
Education
Channels and
instruments
Information and content push activities
Internal
communication for coworkers relations
Linkages to the human resources
management practices; any for human
resource development
Content: job related information
(contracts, benefits, career paths,
reward system)
Resource-based model
Key intangible resources
(knowledge, psychological
contract and its relational intensity)
Enact communication effective
behaviours
To make people protagonists
To stimulate commitment, loyalty,
empowerment
Employees, co-makers,
consultants, contractors, partners
Competence: ex. professional
community
Relational intensity and
psychological contract: job-based,
compliance-based, commitmentbased, collaborative
Information and content pull
activities
Interlocutor generated content and
activities
Collaboration with the HR
Department and with managers
Organizational wellbeing
Diversity Management programs
Professional development
Informal and virtual community
Collaborative organizational values
Content: strategies and task related
Aims and processes
Internal communication networks
Internal
Targets and instruments
communication plan
structure
Valued and expected
Out-puts
Out-comes
results
Out-takes
Out-growths
TABLE 1: System-centred model and Resource-based model of internal communication
e) Internal communication for co-workers relations in SCM is centred on spreading job
related information such as contracts, benefits, career paths, rewarding system.
Whereas, in RBM internal communication is related to human resources management
process and practices such as organizational wellbeing, diversity management
programmes, professional development, informal and virtual community.
Furthermore, conveyed contents are strategy and task related.
f) Internal communication plan structure in SCM is centred around targets and
instruments, while in RBM it carries out aims and processes, uses internal
communication networks, involves non communication specialists, has measurable
goals.
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g) Valued and expected results on internal communication in SCM are limited to
communication out-puts (for example, number of news items published on the
intranet) and out-takes (for example, clicks on the intranet news), while in RBM
valued results are out-comes (for example, survey on opinions) and out-growths (for
example, quality of employees-employer relationships).
Research method
The hypotheses here presented have been tested through a qualitative analysis, coherent
with the explorative nature of the study (Yin, 1994). The collected data could be used in order to
formulate new hypotheses and for future qualitative and quantitative investigation.
The study was based firstly, on semi-structured interviews conducted by telephone or by
e-mail to internal communication managers and professionals of 10 organizations operating in
Italy: GlaxoSmithKline, Honda, IBM, Ikea, illycaffè, Indesit Company, Intesa Sanpaolo, KPMG,
WWF, TenarisDalmine. The interviews were carried out in 2008 and were focused on internal
communication definition and goals, interlocutors, channels and instruments, linkages to the
human resources management, communication planning, auditing and monitoring.
Secondly, when available, official documents were collected and analysed: official
internal communication presentations, internal communication plans, company brochures,
brochures and publications on CSR and diversity management programs, corporate web site
sections related to HR issues.
Interview transcripts were analysed and a qualitative summary was drawn up, grouping
topics, and quoting the respondents’ declarations in an anonymous way. Numerical data was not
produced due to the qualitative orientation of the research (Morgan, 1988). The following
presents the main findings from the data collection according to the items of the internal
communication model.
The present study has some limits. First, the companies studied do not represent the
universe of companies and non profit organizations in Italy because of the qualitative nature of
the research. Future quantitative and statistically consistent research is needed. Second, even
though case studies represent many different industries, they were not chosen systematically.
Third, the paper presents a preliminary synthesis of findings and the early concluding
considerations. Further analysis will be useful in order to draw implications for research and for
practice.
Findings
Information gathered by means of interviews where analysed and in the following are
presented the main findings regarding: internal communication definition criteria, goals,
interlocutors segmentation criteria, channels and instruments, use of internal communication for
co-workers’ relations, internal communication plan frame, valued and expected results.
Internal communication definition criteria
Many of the companies considered include in their definition of internal communication
the concept of information transmission, spreading, and sharing towards co-workers. In certain
cases it is explained by the distribution of physical working sites. The level of efficiency of
information flows in terms of pertinence to the issues, continuity, timeliness, coherence,
diffusion, adequacy for avoiding lack or overload of information is very important.
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Many definitions track a rational metaphor, such as engine, flow transmission, exchange,
and contain an implicit or explicit allusion to organizational boundaries. Information sharing is
considered an antecedent of the decision to be a member of the organization and for better
external communication. These kinds of definitions refer, in the interpretative model of this study,
to the SCM.
Most of the companies studied give a definition that present both systemic and resource
based features. For example: “engine to transmit information and change”, “information and
knowledge sharing”, “to reach most people (spread information) in order to create a better day by
day working life quality”, “to increase the sense of belonging (membership) and dialogue among
organizational units”, “to share information in order to improve working life quality and above all
to feel part of the same group”. Information sharing is viewed as an antecedent of commitment
and engagement.
Some organizations provide a definition centred completely on intangible resources,
using expressions as: “to create one single company” (the sense is to use internal communication
to create a new internal branding), “knowledge spreading and sharing”, “values and culture
sharing”, “internal communication as 360° communication, non characterized by internal
reference”, “to create a common language”.
Internal communication is also linked to the human resources management process, as for
example for a company that considers internal communication as “a human resource management
lever and a managerial day by day function”.
To sum up, internal communication is defined in many cases completely or partially in
systemic terms. At the same time, the relevance of human resource management, of knowledge
creation and of allegiance building functions of internal communication emerges.
Internal communication goals
Many declared that internal communication goals refer to the system model as they
express the companies’ willingness of bringing people towards corporate positions, views, and
standards. These kinds of goals can be grouped in three main areas: a) information spreading and
tools delivering; b) building of membership to the organization; c) values, mission, and goals
alignment.
a) Information spreading and tools delivering:
- to carry out targeted internal communication tools;
- to spread institutional and corporate information;
- to listen to internal communication needs and interpret organizational climate in
order to deliver communications coherent with organizational goals;
- to support internal communication activities launched by the Head Quarter;
- to spread and share information at all levels.
b) Membership building:
- to build awareness, sense of belonging, distinctive identity;
- to improve organizational climate which is directly influenced by the availability of
information.
c) Values, mission, goals alignment:
- to improve the comprehension of company programs and features;
- to share organizational vision;
- to share corporate mission and aims.
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The communication source has an advocate orientation: to give information relevant for
the company (they fit co-workers needs in order to be more effective); to convince people to be
part of the organization (a passive decision); to align people with organization’s self
representation. Companies aim at a messages target and communication outputs delivery
function.
Internal communication goals in most cases overlap the two models. Organizations
attempt both to spread messages to internal publics by means of suitable tools and to enact
communication behaviours by means of a supportive role towards managers and co-workers.
Others declared goals are, on the contrary, related to a behaviours enactment function. For
example:
- to enable employees to exercise their independence, judgment and creativity - while
strengthening a sense of belonging and consistent company brand;
- do not communicate internally, but just support managers;
- to facilitate task accomplishment;
- to support an attitude towards active collaboration, projects building and common
results
- to spread safety culture and behaviours;
- to build internal relations;
- to get closer to the organizational units on the field;
- to give co-workers the opportunity to easily find the information they are expected to
search.
To sum up, collected data show that the most spread internal communication aims are
devoted to create membership, to align culture and values, to exchange information, and to
produce out-puts. It is important to notice that many of those interviewed mentioned aims related
to the enabling attitudes and behaviours function. A statement explains the sense of
communication behaviours enactment very well: “to encourage active participation avoiding
anarchy thanks to a strong identification with the company. As if to say: a thousand flowers
bloom but the garden is still recognisable”.
The intention to create the conditions to give autonomy with a strong centre of gravity
clearly emerges.
Interlocutors segmentation criteria
The analysis regarding segmentation criteria shows the use of long-established criteria
based on:
a) organizational variables: hierarchy, that brings the distinction between employees
and managers, or otherwise, in flat organizations, brings to communicate to all coworkers; function, for example white and blue collar, quality circles teams;
b) socio-demographic variables: such as the age of co-workers; or their professional life
phase as for example new-comers;
c) geographic and spatial distance: fields, productive sites and consumer services
business units, colleagues abroad. The greater the distance the more internal
communication is required to move people closer to each other;
d) position related to the organization: staff inside the organization, institutional boards,
part of the organizational network, external committee relations.
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Organizational, demographic, and spatial differences are used in order to capture different
communication needs and expectations.
The companies studied use also segmentation criteria that underline physiological
contract differences between publics such as:
- value chain key roles: key suppliers, partners;
- relevance for business strategy: segments that are very important for the current
company strategy;
- competence and professional areas: professional or practices communities, partners,
management, staff.
As pointed out before, publics who are supposed to be more aware and more oriented to
take actions, are the ones who have commitment and a collaborative psychological contract with
the organization, namely partners, professionals, and core workers. Every segmentation criterion
that relies upon variables that can make it possible to suppose orientation to action could be
useful for the internal communication enactment role.
Channels and instruments
The channels devoted to information convey in a push manner quoted by the companies
studied, are:
- information sharing tools;
- meetings with managers, among colleagues;
- cascading meeting programs;
- internal events;
- events for client and other stakeholders open to employees which are invited and
some;
- times transported on company charge;
- internal advertising and posters campaigns;
- house organ, newsletter;
- brochures;
- notice board with accurate visual identity, content management, useful to reach store
or factory workers;
- e-mailing to staff;
- external campaigns directed also to staff;
- info-points on social, environmental, public interest issues.
These kinds of channels and instruments are intensively used but not one of the companies
considered use them exclusively. Most organizations use push channels integrated to the pull
ones, interactive instruments, and user generated and managed instruments.
The inventory resulting from analysis is very long. below some selected examples:
events with external testimonials to discuss relevant topics with all co-workers;
- online interactive meetings;
- online forum or special sessions for brain storming and open discussions;
- user generated intranets that contain, for example, sit-coms played by employees, or
interviews to co-workers;
- call for ideas open to all employees for special projects such as a new communication
format;
- communication networks with pivot, facilitator, and gatekeeper roles;
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internal communication committees formed by co-workers;
company radio, web TV in streaming, TV on demand. They are innovative tools and
have high impact;
programs coherent with the corporate mission, such as for example a project for
office sustainability in a non profit organization;
relax areas with restaurant, library, internet and intranet points;
emotional and experience based events for team building such as business theatre,
non conventional events such as harvest in a vinery or a workshop to create a
company perfume;
work outings and spending spare time with colleagues;
informal meetings with top managers as monthly welcome lunch with newcomers;
knowledge sharing opportunities as presentation of strategic projects, best practices
awards, publishing of practices on the company’s intranet, development of methods
based on shared best practices;
billboards that publish works written or suggested by employees;
interactive and open discussion channels such as focus groups, form on line, e-mail,
to give voice to co-workers and make them protagonists;
corporate responsibility programs carried out by employees such as voluntary work
and fundraising for social causes.
The main trend is increasingly towards user generated communication, not user oriented
communication: “employees are at the same time actors and users of communication services”.
Traditional pull internal communication instruments are developed and continuously improved in
a creative manner. Those interviewed expect to increase the experience based and user generated
tools that enable “people who have an idea feel to have an opportunity to communicate and share
it”.
Internal communication for co-workers relations
All the companies considered care about employees relations and apply internal
communication as a human resource management lever because communication with employees
affect, in the opinions of those interviewed, organizational climate, motivation, performance,
integration. The use of internal communication for co-workers relations has many facets such as
job related functions, and human resources development functions.
Job related functions are essentially focused on the explanation of performance
management system and information on working life.
Internal communication is also considered as a human resources management and
development lever:
- internal communication supports every people management phase from recruitment
to selection, to competencies development, to training, and to evaluation;
- intranet used to give visibility to individuals through tools for competencies
evaluation, and curricula updating.
One company declares that communication professionals’ mission is to make it easier to
find information, while managers’ roles are to accompany and interpret communication
meanings. They are the first communicators.
One other company tells that during merger processes internal communication was
strategic to build organizational integration.
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In most of the companies studied diversity management programs do not exist or have
very little importance from the point of view of internal communication manager. Very few and
marginal applications of diversity management such as the representation of a multiracial
workforce in internal posters or the foreigner languages version of some internal communication
instruments (house organ or intranet) were gathered. Some companies underline that national,
racial and cultural diversity is a natural condition. For example in an R&D centre in Italy there
are 15 nationalities and the shared language is English. In such circumstances, companies do not
care about specific diversity management programs.
Gathered data show that internal communication is strongly related to a co-workers relationship
management function and hence near to the RBM of internal communication.
Internal communication plan frame
Some companies have an internal communication plan based on targets or publics,
instruments, and channels. This model of communication plan undervalues the potential of
internal communication in terms of activating function. It runs the risk of becoming out puts and
short term oriented.
Other companies have an internal communication plan based on:
- indications from internal clients, as human resources managers and other managers
- aims and processes;
- stable internal networks that carry out the activities;
- business strategy.
Some examples are particularly relevant. One company has an annual internal communication
plan that moves from aims and organizational values and identifies instruments and activities that
match the following communication qualities: interactive, dynamic, trans-national, planned.
Another company chooses instruments based on languages and function of media:
timeliness information and interaction (intranet), go into depth (house organ), get closer to
colleagues and organizational life (TV).
Another plans its activities aiming at contents such as tasks and roles, company
strategies, markets, industry, training and competences development.
A further makes decentralized programs inspired by the strategic business plan and to
communication priority that is simplicity, clearness, connections, efficiency.
Many companies have internal and external communication programs at large based on
global guide lines and business goals. Many declare they have a very flexible plan suitable for
continuous adaptation, and all workers are sources of information and contents.
Valued and expected results
The aims of auditing and monitoring could be centred on out-puts, out-takes, out-comes
or otherwise on out-growths. On the other hand methods of auditing and monitoring could be
based on qualitative and open or on quantitative and structured techniques.
Most accepted valued and expected results of internal communication are proper of the
system model:
- house organ and other publications readership;
- TV clips;
- clicks on intranet;
- published news on intranet;
- level of knowledge of organizational values;
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- how co-workers perceive and evaluate internal communication (level of satisfaction).
One interviewee pointed out that too many surveys were usually carried out so they could become
less useful because people do not have the time to answer.
Other valued results, near to the resource based model, are:
- shared values and culture;
- work and climate satisfaction;
- safety behaviours.
The companies studied use a wide range of auditing and monitoring methods and
techniques:
- quantitative analysis also through intranet;
- qualitative research such as focus group;
- informal and non structured listening for each event to monitor the degree of
participation and appreciation.
Methods based on open listening are quite spread:
- lunch with executives;
- informal contacts;
- periodic meetings with internal clients;
- interviews to people who resign;
- continuous relationships between tutors and pupils;
- performance evaluation interview;
- informal every day working life;
- interviews to top managers: employees send questions and observation, and the
management answer through an intranet forum and TV on demand.
Discussion and Conclusions
Data gathering is very recent and this paper contains the early elaboration on findings.
Further examination of evidence is required and additional considerations will emerge. For a first
preliminary exam, Exhibit 2 shows a visual representation of the findings presented earlier based
on a quantification of grouped answers. It appears that the definition of internal communication
given by the respondents contains, in most cases, elements from the two models. In other words,
companies represent internal communication partially rooted into a systemic view and to some
extend projected toward a resource-based view. Reviewing literature, on the contrary, it emerges
that a concept of internal communication that does not abandon the systemic view of the
company prevails. It is worth noticing that the concept of internal communication referring or
completely centred on both models is quite diffused. The theoretical frame of the resource-based
model of internal communication is coherent with the explicit ground knowledge about internal
communication that internal communication professional posses.
Goals, compared to the definition, appear to be more rooted in a system conception view.
They are closely linked to the functions of information spreading and tools delivering; building of
sense of belonging to the organization; corporate values, mission, and goals alignment. Despite
internal communication definition tends to refer to the activation of high relational attitudes of
employees, goals are more rooted to information transparency and soft elements of organization.
Probably because of organizational resilience that makes past successful practices difficult to be
abandoned.
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Segmentation criteria refer mostly to socio-demographic and organizational structure
items. They do not overcome the established way of analysing publics in terms of information
needs. The idea of segmentation criteria based on psychological contract is spread in a limited
number of cases. Some companies extended their interlocutors also to external or hinge
interlocutors.
Definition
Goals
Segmentation
Channels
Co-workers relations
Plan frame
Valued results
System Centred Model
Resource Based Model
Both
Answer missing
EXHIBIT 2: System and Resource Based internal communication models diffusion
This strong evidence is probably due to the lack of awareness of the different relational
connections between a