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Introduction to Corporate Communications Peggy Simcic Brønn Assistant Professor Handelshøyskolen BI The roles of communications Informing Advocating Dialoguing Types of communication One-way Two-way (Symmetrical/Asymmetrical) 2 Four Purposes of Communication Sharing the Compelling Vision Integrating the Effort Making Intelligent Decisions Sustaining a Healthy Community Francis, D., Unblocking Organizational Communication, Gower, 1987. Stakeholders ”...a group or individual who can have an effect on or be affected by the organization.” - Freeman (1984) Stockholders Government Regulators Boards of Directors Community leaders Organization’s external linkages Enabling Normative linkages Associations Political groups Professional societies Organization Diffused Environmentalists Media Community residents Voters Minorities Women Other publics Suppliers Unions Employees Input Functional linkages Output Consumers Industrial purchasers Service users Corporate identity and reputation Corporate Identity Names, Self-Representations Customer Image Community Image Investor Image Employee Image Corporate Reputation Fombrun, C. J., Reputation, Harvard Business School Press Reputational risk management cycle Opportunity Platform Corporate Citizenship Reputational Capital Corporate Performance Safety Net Fombrun, C. J. et al., “Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk,” Business and Society Review, 105:1, 85-106. 6 What stakeholders want… Visibility information Virtue good organizational behavior Verifiability access to information 7 Mess management: Multiple perspectives Yields choices of... Influenced by individuals’ mental models A real-world situation of concern Actions to improve the situation Descriptions of perceived relevant activity Comparison of descriptions with the perceived reality The co-orientation model Issue Organization’s definition and evaluation of an issue UNDERSTANDING AGREEMENT CONGRUENCY Organization’s perception of Stakeholder A’s views Stakeholder A’s definition and evaluation of an issue CONGRUENCY ACCURACY McLeod, J. M. and Chaffee, S. H., Interpersonal Approaches to Communications Research, American Behavioral Scientist (1973) Stakeholder A’s perception of organization’s views Co-orientation states True consensus The parties know they share an agreement on their evaluation of an issue. Dissensus The parties hold conflicting views and are aware of their differences. False consensus The organization believes that the stakeholder agrees with them on a particular issue, or The stakeholder group mistakenly believes that the organization holds the same view that they do. False conflict The parties believe that they disagree on an issue when in fact they agree. 10 Mental models The ladder of inference Applying the Ladder of Inference The ladder provides a means to ask questions... What is the observable data behind that statement? Does everyone agree on what the data is? Can you run through your reasoning? How did we get from that data to these abstract assumptions? When you said “[your inference],” did you mean ”[my interpretation of it]”? Essential skills for working with mental models Reflection Becoming more aware of your own thinking and reasoning. Inquiry Inquiring into others’ thinking and reasoning. Advocacy Making your own thinking and reasoning more visible to others. Reveal where you are least clear in your thinking, invite improvement. Listen, stay open, encourage others to provide different views. 13 Dialogue as the basis for communications Models of communication Shannon and Weaver (1949) – focus on the medium Cognition-based models – focus on the message Dialogue “...a sustained collective inquiry into everyday experience and what we take for granted.” Senge, et.al. (1994). The Fifth Discipline Fieldbook 14 Gaps Model of Behavior Expected Behavior Stakeholders Perceived Behavior Behavior Delivery GAP 1 Company GAP 3 GAP 4 Stakeholder-driven designs and standards GAP 2 Company perceptions of stakeholder expectations External Communications to Stakeholders Key Factors Leading to Stakeholder Gap Stakeholder Gap Stakeholder Expectations • Gap 1: Not knowing what stakeholders expect • Gap 2: Not selecting the right behavior • Gap 3: Not delivering to behavior standards • Gap 4: Not matching performance to promise Stakeholder Perceptions 16 Strategy Identity Image Common Starting Points Management Communication Organizational Communication van Riel, C., Principles of Corporate Communications Marketing Communication Management Communication Role of managers within organizations: Developing a shared vision Establishing and maintaining trust in leadership Initiating and managing change process Empowering and motivating employees 18 Marketing Communication Those activities supporting sales of particular goods and services Advertising Sponsorship Direct Marketing Personal Sales Product PR Others 19 Organizational Communication Public Relations Public Affairs Environmental Communications Investor Relations Internal Communication Corporate Advertising 20