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Corporate Communication

Mindmap Spring 2013

Simon Sjødahl

on 31 January 2015

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Transcript of Corporate Communication

Corporate Communication Public Relations Stakeholders Issues Social Responsibility Integrated Communication Identity Storytelling Branding Auto Communication Heath (2006) Heath, Robert L. (2006). Onward into more fog. Thoughts on public relations research directions. Journal of public relations research, 18(2), 93-114 Cropp & Pincus (2001) Cropp, fritz; & Pincus, J. David (2001). The Mystery of Public Relations. Unraveling its Past, Unraveling its Future. In: Heath, Robert L. (Ed.) Handbook of Public Relations. Thousand Oaks: Sage, pp. 189-203. Cutlip, Scott; Center, Allan H.; & Broom, Glen M. (2006). Effective Public Relations. 9th Edition (International). Upper Saddle River: Pearson, pp. 1-28. Cutlip et. al (2006) Cornelissen, Joep (2008). Corporate Communication: A guide to theory and practice. London: Sage (2nd ed.) Chapters 3 & 5. Cornelissen (2008) Freeman, Robert E. (2004). The Stakeholder Approach revisited. Zeitschrift für Wirtschafts und Unternehmenethik, 5, 228-241. Freeman (2004) Cornelissen, Joep (2008). Corporate Communication: A guide to theory and practice. London: Sage (2nd ed.) Chapters 10 & 8. Cornelissen (2008) Gaunt & Ollenburger (1995) Gaunt, Phillip & Ollenburger, Jeff (1995). Issues management revisited. A tool that deserves another look. In: Public Relations Review, 21 (3), 199-210. Pratt (2001) Pratt, Cornelius (2001). Issues management. The paradox of the 40-year U.S tobacco wars. In: Heath, Robert L. (Ed.) Handbook of Public Relations. Thousand Oaks: Sage, pp.335-346. Bentele & Nothhaft Bentele, Günter; Nothhaft, Howard. The Intereffication Model. Public Relations Research: European and International Perspectives and innovations. Wiesbaden, Germany: VS, pp. 33-48. Albert & Whetten (2004) Albert, Stuart & Whetten, David A. (2004). Organizational Identity. In Organizational Identity: Oxford University Press, (ed.) Mary Jo Hatch & Majken Schultz, pp.89-118. Soenen & Moingeon (2002) Soenen, Guillaume & Moingeon, Bertrand (2002). “The five facets of collective identities: integrating corporate and organizational identity” Kapferer (2002) Kapferer, Jean-Noël (2002), “Corporate Brand and Organizational identity” Christensen (2008) Christensen, Lars Thøger; Morsing, Mette; & Cheney, George (2008), Corporate Communications: Convention, Complexity and Critique. London: Sage: Preface, Prologue and chapter 1. Friedman (1970) Friedman, Milton (1970). The Social Responsibility of Business is to increase its profits. New York Times, September 13, 1970. Carrol (1999) Carrol, Archie B. (1999). In Business & Society, 38 (3), 269-295 L’etang (1997) L’etang, Ravi S. (1997), “Changes in the theory of interorganizational Relations in Marketing: Toward a network paradigm” in Journal of the Academy of Marketing Science, Vol. 25, No. 1, pp. 56-71. Kaye & Jacobson (1999) Kaye, Beverly & Jacobson, Betsy (1999). True tales and tall tales: The power of organizational storytelling. Training & Development, March 1999, pp. 45-50. Brown (1990) Brown, Mary Helen (1990). Defining stories on organizations: Characteristics and functions. Communication Yearbook, 13, pp. 162-190. Gabriel (1995) Gabriel, Yannis (1995). The unmanaged organization: Stories, fantasies and subjectivity. Organization Studies, 16/3, pp. 477-501. Christensen & Cheney (2000) Christensen, Lars Thøger & Cheney, George (2000). "Self-absorption and Self-Seduction in the Corporate Identity Game." Morsing (2006) Morsing, Mette (2006). Corporate Social Responsibility as Strategic Auto-Communication: On the Role of External Stakeholder for Membership Identification. Business Ethics, A European Review. 15(2), pp. 171-182. Duncan & Caywood (1996) Duncan, Tom & Caywood, Clarke (1996), "the concept, process, and evolution of integrated marketing communication." Schultz & Kitchen (2000) Schultz, Don E. & Kitchen, Phillip J. (2000), Communication Globally: An Intergrated marketing Approach. London: Macmillan Press Ltd., Chapter 4, pp. 51-65. Ind (1997) Ind, Nicholas (1997). The Corporate Brand. London: Macmillan Press, pp. 1-13. Hatch & Schultz (2001) Hatch, mary Jo & Schultz, majken. Are the strategic stars aligned for your corporate brand? Harvard Business Review, Vol. 79 (2), pp. 3-8 Chernatony (2002) De Chernatony, Leslie (2002). Would a brand smell any sweeter by a corporate name? Corporate Reputation Review, vol. 5 (2/3), pp. 114-132. Christensen (2008) Christensen, Lars Thøger; Morsing, Mette; & Cheney, George (2008), Corporate Communications: Convention, Complexity and Critique. London: Sage: Preface, Prologue and chapters 3. “Public relations is the management function that establishes and maintains mutually beneficial relationships between an organization and the publics on whom its success or failure depends.”
Satirisk dokumentarisk film hvor man følger en talsmand for den kolosalt store tobaksindustri.
Pointen: "If you argue correctly, you are never wrong"
Det vigtige er ikke hvem der har ret, men derimod hvordan man fremstår overfor ens publikum.
Ud fra tanken om at sandheden er den holdning som deles af flest "Understanding public relations' historical context is vital to the professionalization of today's practice." p. 87 Evolution of the PR Concept
1800-1920: “Public be damned” p. 94-95
"The railroads are not run for the benefit of the 'dear public' — that cry is all nonsense — they are built by men who invest their money and expect to get a fair percentage on the same.“ – William Henry Vanderbilt, October 9, 1882
De store masseproducerende virksomheder havde ingen sjæl, og påtog sig ingen sociale forpligtelser. Der blev produceret til et umætteligt marked og kommunikation var en-vejs da virksomhederne ikke havde nogen interesse i kunders, samfundets eller de ansattes holdninger.

1920-1945: "The rise of the public opinion" p. 106-107
Efter 1. Verdenskrig var der en tid hvor folk gerne samlede sig om fælles overbevisninger.

1946-1965: "PR becomes accepted and developed in academia" p. 108
Folk var ikke længere tilfredse med status quo, og protesterede derfor aktivt for at samfundet og virksomhederne gik med til at ændre diverse kritisable forhold.

1965-1985: “Protecting the environment and securing civil rights became the flagship causes of this era” p. 111
Efter længere tid med uroligheder blev der nu aktivt taget stilling og sat ind fra politisk side for at sikre folks rettigheder.

1985-present: Digital Age and Globalization
Computere, internet og sociale medier sætter nu dagsordenen for hvad der er acceptabelt, idag har medierne en kolosal betydning for den politiske dagsorden. Virksomhederne er nød til at please deres omgivelser for at blive accepteret som en aktør på markedet, som er større end nogenside. Cropp & Pincus review a number of the more popular contemporary definitions of PR, only to conclude that the definitions differ in the aspects of the practice they emphasize and no universal definition of PR can be defined. The “Evolving Role” Continuum. The purpose of the model is to show the range of and the interrelations among a multiplicity of overlapping factors, and hereby paint a general picture of PR. The model show where we have been, where we are now, and what we are hoping to become, so it provide an overall picture of PR, which naturally makes it less concrete and therefore mainly useable as to create an overview. Cropp & Pincus describe PR’s (historical) move from a largely tactical-driven function to one with more strategic responsibilities; PR has changed from being an information-driven and dependent practice to being one increasingly responsible for building and maintaining relationships with vital publics. “It appears unlikely that a single unifying term will emerge on its own, certainly not until we understand and can agree on the primary role of public relations”. The article’s goal is to challenge the currently accepted phenomenon of public relations and by posing its limitations opens up a debate to move the study of PR further. Thank You for Smoking "Public relations is a piece of some whole. The challenge is to continue to search to discover the whole and public relations' place in it." p. 110 The role of public relations change in an organization’s life as it develops over time, the function of PR varies as well. Only medium/bigger companies can afford by capital to substantially contribute to the fully functional society, as the PR power of the smaller enterprises is marginal. It is in the interest of all firms to have favorable image. Being perceived as a good company depends highly on how well you balance the private and public interest, by doing good deeds. Hereby the PR task can be understood as a tool to create shared social meaning, negotiate relationships, influence and yield to influence, create and resolve conflict, distribute resources, manage power relations, exert and yield to control, manage risks, shape and response to references, foster trust, engage in support and opposition, distribute rewards and costs. Public Relations One-way symmetrical Communication - “We tell you what we think you want to hear.”

Two-Way Asymmetric Communication - “We tell you what we think you want to hear and then we wait for your respond.”

Two-Way Symmetrical Communication - “We are in dialogue with you.” A communication strategy is understood as a strategic function that influences the overall corporate strategy. It is an aid in developing strategies for interactions with internal and external stakeholders by analyzing the organizations environment and identifying issues which may have a significant impact for the organization. The communication strategy defines the way to achieve the communication goals. Communication is concerned with sending out messages and publicizing a favorable image for an organization. “Managing corporate communication requires a communication strategy that describes the general image that an organization aims to project through themed messaging to stakeholders.” (p.95) “A stakeholder is any group or individual who can affect or is affected by the achievement of the organization’s purpose and objectives.” This chapter is presenting a way on how a company strategicaly can manage its stakeholders. It presents different ways to define and identify the stakeholders and gives solutions on how they should be managed. The paper follows on from Freeman’s book entitled “Strategic Management: A Stakeholder Approach” and published in 1984. In his article, Freeman first explains us the reasons why he decided to write this book. He then provides us with a brief summary of it; and ends with the steam of research during those last 20 years as well as the new directions that scholars should carry out in order to develop the stakeholder theory. "Stakeholders are about the Business, and Business is about the stakeholders." But despite Freeman’s desire to give a logical argumentation, the book has been subject to misinterpretations and weaknesses, since the main ideas are not well developed. In this article it seems that Freeman spends more time fixing the weaknesses and responding to the misinterpretations. Some elements of his argumentation are sometimes utopian in particular when he suggests stakeholders’ interests should converge in the same direction.

But it seems that Freeman have learned not to be to concluding about thing, as he this time don't come up with any opinion on the main theories of those last 20 years, but just summarize and encurange scholars to carry on their research. Freeman defines the term stakeholders as
“any groups or individual that can affect or is affected by the achievement of a corporation’s purpose”. Since 1984, the number of researches on stakeholders has grown and has allowed us to better understand this concept. Freeman presents 4 sub-fields of this approach:

Normative theories of business
which describes the reasons why firms should take into account their stakeholders. The normative theory try to answer the following question, “above and beyond the consequences of stakeholder management, is there a fundamental moral requirement to adopt this style of management?”

Corporate governance and organizational theory
which focuses on the different kind of duties a corporation can have towards its shareholders and the other stakeholders.

Social responsibility and social performance
which introduced the concept of stakeholder legitimacy. This approach is also concerned about the relationship between social performance and financial performance of a company.

Strategic management
which uses conceptual frameworks of mainstream strategy theory to explain what kind of strategy companies should implement to interact efficiently with their stakeholders. An explanation of ethical behavior and corporate value is also provided. Critique
But a problem with seeing stakeholders in this light (Cornelissen, Joep; Corporate Communication, 2008) is that the organization may be motivated to treat in a very not respectful way because of their current importance.
Stakeholder’s change just like organizations, and the ones that are not important at the moment might develop into really important in the future.
At the same time it is no possible to include everything in a model. And in the case with this model stakeholders are only evaluated on the three factors Power, Legitimacy, Urgency.
But there are clearly multiple other factors that needs to be taken in to account in way to build up a total overview on witch stakeholders that are important.
The Book is from right before the global economic crisis, meaning that it is possible to question what they solutions that are presented. The Salience Model This model invites companies to identify all the stakeholders and group them regarding how they are important to the organization on the three important factors: Power, Legitimacy, Urgency. Following the model the individual Stakeholder can be put in to boxes, and motivates the organization to take action towards the stakeholder depending on their individual importance. Friedman was a Neo-liberalistic opionionmaker that clearly argued that business does not have any “Social Responsibilies” "The Business of Business, is Business" The only aim for companies is to maximize the profit.
The corporate executive also has other responsibilities that may be called ‘social responsibilities’, but these are on an individual note and not in the matter of business. Secondly, Friedman asserts that the aim of a corporation is to fulfill the shareholders’ interests and that social responsibility reduces returns to stockholders. For him, spending money for ‘social responsibility’ is spending someone else’s money (shareholders, customers or employees). Finally, Friedman does not take into account the public opinion about the company, nor the negative effects that it may cause if the firm is seen as focused on ‘making profit’ without any ethics: one could mention the boycott of Nike due to the working conditions in some factories in Asia (child labour).
When companies don’t “Walk the talk”
Companies have found out that when behaving responsible they are being perceived in a more legitimate way, giving them good publicity and in the end a increased sales.
So as communication agents this knowledge means that when companies reach out to their stakeholders and actually make different initiatives to meet their expectations and wishes, it have to be held up against the question if it is in the interest of satisfying the stakeholder, or actually gaining great publicity.
The question is a bit complex, because it is always two sides of the same coin, meaning that the one action leads to the other. But what is interesting to try and understand is if the responsible action from the beginning was intended as a profit-oriented act (See the figure below).This is always very difficult to determine, and if asking the company directly they would of cause always claim that they have no economic interest in the actions, what so ever. Because the opposite would make the whole social responsible action deeply calculation and unethical, and the stakeholders would really become disappointed with the treatment. Because they would hereby realize that the what the company actually did was kind of paying them to be friendly and motivate them to conduct good press, WOM about the company, and contribute on putting the brand in a good light. On the other side, are companies like Apple not expressing any CSR initiatives.
Apple have never communicated that they are social responsible, meaning that the stakeholders and customers have nothing to criticize. So until the day, society and institutions target them saying that they are not acting morally and ethically, Apple will be perceived as a legitimate firm.
If looking at WalMart they are a major acthour with great stores, profit and thousands of employees, but on the other hand are they not having a good reputation. In the eyes of the marked are companies seen more like a person, that have moral and ethical obligations. Companies should therefore accept this and act and behave according to this, in way to avoid corporate disasters. CSR are seen as a important element every company should stake in to consideration, because it helps companies to gain the legitimacy they need in way to be a accepted operator. Is rather problematic, to define since there are about 40 different definitions only in our syllabus. So in other words it is not possible to conduct a all including definition.
So CSR is a very confusing phenomenon, because there are no paramount explorations. Therefore it is problematic to come up with judgments, on how companies behave and act, and if this is correct in a ethical and moral way.
But it is possible to reflect over the historiy, that tells us that institutions are they tending to becoming more natural over time, meaning that being socially responsible may be a nice thing for companies to do at the moment, while it in the future might be something that the must to have license to act in the industry. Corporate Social Responsibility (CSR) The article presents the evolution of the concepts and definitions of corporate social responsibility between 1950’s and 1990’s. Different types of CSR are detected:
Economical Responsibility: Society expect companies to be profitable
Legal Responsibility: Companies should operate as the law proscribes
Ethical Responsibility: Companies must behave accordingly to the institution and the norms of the society
Philantrophical Responsibility: Companies are expected to sometimes do something unexpected deeds, e.g. donating money 1950s: Howard Bowen's (1953) book "Social Responsibilities og the businessman", was the first book on this topic and are therefore called the Father of Corporate Social Responsibility.
1960s: The literature expands and authors like Davis formalizing and developing the more specific definitions on CSR
1970s: More research were conducted and even more precise definitions came front
1980s: Alternative concepts and a rising interest in finding out how CSR could be profital
1990s: Focus was pointed towards ethics and further measuring models was presented. Historical Critical Positive The chapter explores draws lines between CSR and the themes crisis and issues management and are in that manner presenting CSR as a way for companies to strategically manage their Public Relations and Stakeholders. Movie where the company throgh their CSR Efforts are presented very socially responsible:
Only working with stakeholder that are supporting this responsible goal
Drawing on multiple experts as they are telling that they constantly reduce their use of environmentally harming elements.

The movie have only got around 54725 views on YouTube in 4 years, telling that MC Donald’s haven't promoted the film. But why?
Maybe they know that people are very skeptical towards them, and this would only start a PR scandal
People that have seen the film don't agree on the message, saying that the company are responsible, so they are not willing to share it
It is essential to communicate the nutrition message ?
Nutrition strategy as a marketing strategy to make the product seem more healthy. But they are just as not healthy as always. The nutrition tables are not places where the customers can see them.

Auto-Communication: To make their employees and stakeholders more happy about their job
A desperate attempt of gaining legitimacy, to hold on to their “license to operate”.
The litterateur at the moment are focused on not communicating what we wish to do, and instead performing CSR, and let the customers and external stakeholder communicate the CSR communication. MC Donald’s – Response to their CSR Case Christensen (2008) Christensen, Lars Thøger; Morsing, Mette; & Cheney, George (2008), Corporate Communications: Convention, Complexity and Critique. London: Sage: Preface, Prologue and chapters 1 "Auto-communication takes place whenever a sender acts as a reciever of his or her own messages." p. 25 "Auto-communication is vital for the existence and the identity of any social collectivity" p. 26 Today we live in a world where external audiences increasingly take interest in matters of internal relevance. Therefore it have become important for companies to present the organizations from a inside perspective when communication to its customers. This means that the communication originally designed for an external audience can be transformed into ideal self-enhancing and self-confirming images. "All living systems communicate with their environment primarily in order to confirm and maintain themselves as autonomous entities." Doing business in a responsible and sustainable way, with a focus on improving public health, benefits patients, society and shareholders. By providing better treatment, raising awareness and advocating for earlier diagnosis and improved health outcomes, we enable people with chronic conditions to live healthier, longer and more productive lives. By promoting responsible and ethical business practices throughout our global value chain and continuously reducing the negative environmental impacts generated by our activities, we stimulate economic growth that is socially just and environmentally sustainable. Finally, TBL makes good business. It delivers long-term growth for our business by building trust, protecting and enhancing our licence to operate and attracting and retaining the best people. The Triple Bottom Line Porter and Kramer (2011) CSR has nothing to do with ethics and moral. Companies should only 'act' responsible within elements that they as a firm affects. Historical The chapter talks about two kinds of legitimacy:

Strategic legitimacy: legitimacy that serves a function, which is designed and controlled by the managers of the corporation. This is done to achieve a favorable perception among stakeholders.

Institutional legitimacy: is beliefs constructed by social institutions, which is out of the corporations’ managerial control. The corporation often has to live up to these beliefs if they want to be perceived as being social legitimate. Corporations feel the need to prove them to be social responsible.
In the 19th century many corporations expanded which fostered the feeling that the corporation became detached from the local community that used to support it.
It became common to perceive the large corporations as a body with no soul.
Today's organizational do not wait until others ask them about their ethical commitments; they are actively and explicitly stating their ethics through various channels and media. Ethics, thus, have become part of the corporate portfolio and profile. " p. 437 “The aim of corporate communication is to speak to many audiences with a consistent set of messages” p. vi Christensen, Lars Thøger; Morsing, Mette; & Cheney, George (2008), Corporate Communications: Convention, Complexity and Critique. London: Sage: Preface, Prologue and chapter 2. Historical This chapter is the introduction to integrated communications and how it has developed over time from a narrow definition and only integrating the 4 P’s to a broader definition today involving the whole corporation. Christensen 2008 Integrated communication refers to the practice of aligning symbols, messages and procedure and behaviors in order for an organization to communicate with clarity, consistency and continuity within and across formal organizational boundaries (Christensen et al., in press).
In other words it’s all the efforts to coordinate and align all communications, so that the organization speaks with one voice to all audiences and media. “IMC is the process of strategically controlling or influencing all messages and encouraging purposeful dialogue to create and nourish profitable relationships with customers and other stakeholders”
(Duncan and Caywood, 1996:18) Today we find a growing number of organizations seek to integrate their communications with other organizations, incl. suppliers, distributors and advertising agencies. These collaborators are found both upstream and downstream in their value chain (Gronstedt, 1996). The primary reason is to secure legitimacy and maintain a positive image across the organization’s many different constituencies. IMC Advantages
- Corporate messages become mutually aligned -> easier to claim consistency across different audiences.
- Makes it easier to brief a communication agency to keep media budgets and spend the money more efficiently.
- Obtain a higher degree of precision in campaigns and assure that economic resources are employed optimally. - IMC Disadvantages
Can require increased management time seeking agreement from all involved parties
- Global brands restricted in terms of local adaptation.
- IMC is hard to fulfill to perfection
- Can cause difficulties to have a global communication to different cultures. The article present IMC, as a new way for marketers to stay in control of their corporate communication. IMC is seen as a tool to provide brands with great consistency in marketing communication programs, reduces media waste and it give a company a competitive edge “[IMC] is the strategic coordination of all messages and media used by an organization to collectively influence its perceived brand value” (Keegan, Moriarty & Duncan, 1992, p.631). IMC model presents seven stages and each stage contains the elements of the previous stage and adds some dimension. The stages are not fixed and their conceptualization could include more or less stages.

1.Awareness Stage: change in the business environment will reinforce the opportunity and need for developing IMC

2.Image Stage: implementing consistent message, look and feel of an organization

3.Functional Stage: functional integration of IMC throughout traditionally separated areas of communication

4.Coordinated Stage: all communicated functions are equal and the integration might be directed by the corporate client than a full service agency

5.Consumer Based Stage: consumers are included in the marketing formula

6.Stakeholder Based Stage: communication is expanded to other stakeholders e.g. employees, government, press, community, suppliers etc.

7.Relationship Management Stage: the communications are a strong element in the total management process The article dates back to 1996 and I find many theories obsolete. The (integrated) marketing communication has undergone massive changes with upraise of the Internet and social networks and none of these are mentioned or taken into consideration in the article. Moreover, the article dealt with the model that has not been researched profoundly and provided only the base for the further research. On the other hand, many of suggested concepts have become a common practice in many companies today. Critique Consumers want to know more of the corporation behind the brand and what values it personifies. Meaning that communication needs to be coherent and integrated not just at the tactical level but also at the financial and strategic level.
Consequently communication activities should not be integrated at product brand level only but also at the level of the business. In the end corporate communication is aimed to support and underline image and identity. Firms have to manage a cross-border network and find their individual balance between globalization, localization and learning experience which depends on their economic scope and products produced.
In the last decade of the 20th century the concept of integrated marketing communication (IMC) was the major communication development
All forms of communication activities which can enhance the companies influence and control can be integrated. The field of integrated marketing communication developed intensely in the past decade. Most successful companies realized that working with an integrated approach of marketing communication is essential to work successfully and to stay competitive. Since product gets more and more exchangeable, consumers have more possibilities to question companies work and methods of production and life cycles get shorter companies are aware of the fact that it is important to create a unified message in terms of corporate communication and marketing communication. Today the importance of communicating values and to get in dialogue with the customers even increased and will potentially be focused to a greater extend for communication activities in the future. Integrated Communication This chapter suggests that it is a matter of “developing and managing cross-border network of separate but interrelated activities.” (p. 51) in order to gain success in today’s global environment. Through the use of integrated communication communication is being integrated into the brand, and consumers thereby not only choose products of specific function or symbolic representation. They also choose whether or not to support and carry positive or negative images towards the companies. IMC “is a strategy business process used to plan, develop, execute, and evaluated coordinated measurable, persuasive brand communication programs over time with consumer, customers, prospects, and other targeted relevant external and internal audiences.” (p.65) Storytelling is a very simple and common way to pass on experiences and/or knowledge from one person to another. The authors Kaye and Jacobson are focusing in their article on the use of storytelling within an organization. They consider storytelling as an effective communication tool especially for leaders to inspire and motivate other employees. One goal is to share knowledge and to enrich the listeners in their learning and feelings. In the author’s opinion the best stories in organizations are made of previous personal experiences, failures and challenges because these teach, inspire and motivate. Key Concepts:
Storytelling has a three-party sequence which is the key to the power of storytelling:
1.) The Story (someone tells somebody else as a story)
2.) The Understanding (superficially knowledge is becoming clear, teller and listeners start to understand)
3.) The Shared Meaning (groups share their understandings which leads to a wider understanding)

Stories can be communicated in several ways:
• Verbally
• Through embodying
• By revealing something to ourselves through reflection and imagination

Storytelling can happen at any time in any place. Within an organization the main channels in which storytelling is happening are
• Spontaneous (casual, managers will be confronted with stories in everyday life, one-on-one interactions etc.)
• Existing (regular, part of ongoing work, e.g. “orientation programs” where senior employees share viewpoints or e.g. “exit interviews” to reveal the reasons for leaving company)
• Deliberate (planned and specifically created opportunities for enhancing organizational learning through storytelling, “learning forums” where people exchange stories about organizational life, building communities)

Critical View Points:
• Some people have difficulties in coming up with topics for stories right away. In companies there should be a so-called “topic assistance”/”Storyteller Coaching” to support e.g. with important business presentations.
• The audience, the story is told to, is the third important party in the process of sharing a story. The audience needs to understand why they should listen and why they should want to be there to listen.
• The story needs to be appropriated for the audience otherwise it will not be passed on or even remembered Funktionalistic Method Companies have great interest in tools that can help then controlling their image. This have made tools for integrated marketing a bill$ industry.

Facebook is the greatest media for Word-of-Mouth and are therefore a source that have great impact on many companies reputation in a good/bad direction.

Facebook saw a great potential in this and invented 'Facebook Sponsored Stories', which basically are a way for companies to pay, to make it appear that their 'fans' forward and like every single post they decide to send out.

This worked out great for the marketers as it make them look like a more cohirent brand, that was supported by a force of engaged customers who all shared the same idea and image of the brand.

But apparently many Facebook-users found i abusing that Facebook have made it possible for companies to buy their opinion and voice without any acceptance needed.

The problem is that the fans probably 'liked' the Brand for some other reason.

Most of the time, users couldn't really tell whether they were being used for sponsored stories or not. And your friends had no idea why you'd suddenly become a champion of certain brands you'd previously displayed little interest in. Facebook - Sponsored Stories
A "Sponsored Story" is an advertisement that appears on a member's Facebook page and generally consists of another friend's name, profile picture and an assertion that the person "likes" the advertiser.
Affecting that if you are a 'Fan' of a Brand its page posts are eligible to show up in your News Feed. In a way so it seems like it was you posting.
And if your friend is a fan of a Brand but you are not, its page posts are also eligible to show up in your News Feed. How it works
Five Facebook members filed a lawsuit
Facebook members will be able to control which content can be used for Sponsored Stories. Facebook agreed to maintain these changes and other new disclosures for at least two years
The changes to "Sponsored Stories" are worth $103.2 million
Facebook agreed to pay $10 million to charity as part of the settlement deal. The social networking company will also pay an additional $10 million for plaintiff attorneys' fees Lawsuit Read more: http://www.businessinsider.com/facebook-kills-sponsored-stories-2013-6#ixzz2Vbxgt6YC
http://www.huffingtonpost.com/2012/06/21/facebook-will-change-ad-s_n_1616063.html Odense Fødevarefællesskab A food community that are existing because of the unique products from its suppliers
And the great interest the stakeholders have in these products The paper bases its opinion on a large study conducted in 5 different organizations including 126 employee conversations and 250 written stories.

Is pro the argument that every organization has a terrain that cannot be managed or controlled, but where people rather can engage in spontaneous activity. This terrain is referred to as the unmanaged organization (p. 478).

The article is called 'The unmanaged organization', namely because it seeks to resist the idea that the management can be en full control of the stories that exist within the organization.

It acknowledge that individuals within organizations not only submits the managerial control, but they do also resist it by developing own subcultures and countercultures. "When the narratives are turned into stories, the storytellers neither reject nor accept ‘reality’ but rather they shape reality with meaning in their own individual way." Stakeholders can be divided into the following groups:
Equity Stakeholder: Those who have direct ownership of the organization. Such as: Shareholders, directors or owners.
Economic Stakeholder: Those who have an economic interest, but not an ownership interest. Such as employees, customers, suppliers and competitors.
Influence Stakeholder: Those who have interest as consumer advocates, environmental groups, trade organizations and government agencies.

Furthermore can stakeholders be divided in to two groups, the primary group, and the secondary group:
Primary Stakeholder: Those who are important for finical transactions and necessary for an organization to survive.
Secondary Stakeholder: Those who generally influence or affect, or are influenced or affected by, the organization, but they are not engaged in financial transactions. Stakeholder Management Today organizations are approached in a Socio-Economic light, which are a part of the Post-Modern way of understanding business interactions. Organizations have realized that they need to be very focus on how they treat and communication to both the market-stakeholders and the non-market-stakeholders in order to avoid certain groups from raising issues that are potentially damaging to their reputations. Besides form using stakeholder management as a proactive way of avoiding issues with external public relations, organizations know that good reputation in certain stakeholder groups may impact other groupings perception of the organization, in the same way. But it is important to understand that different stakeholders evaluate organizations attempts to gain legitimacy differently, so what may be highly valued by one stakeholder might harm other stakeholders. This put pressure on the organization leaders who have to balance the fulfillment of different stakeholders interests. “A stakeholder is any group or individual who can affect or is affected by the achievement of the organization’s purpose and objectives.” Functionalistic / A Consultancy Firm / Non- Academic article Deloitte. - Defined by its people The management-team uses Storytelling to make the employees with a great ambitions and a great personal to tell a bigger part of the brand.
The purpose is to make the internal and external stakeholders believe that this image is the general picture you will experience when entering Deloitte.
It the same ting are this sending out the signal that the company listen to the stories of its employees.
But everyone has a story to share, and naturally are all the stories presenting the company in a perfect light, and in this case as a well-shaped tri-athlete, but are this really the picture you have of Deloitte, as a employee or external stakeholder? Storytelling is view as a top-down driven tool that can be managed. Here are Storytelling presented as a tool the management team can use to create a set of shared meanings. Brown argue that Storytelling can be beneficial i several ways:
Shape the organizational reality
used as a survival strategy
used as discursive closeiurs, that shape and fit the institution and mindset within the organization
Ep. 1: the state where be estimate the outcome of the storytelling.
Ep. 2: The state where the storytelling is spread out.
Ep. 3: The state where we monitor if the storytelling have formed the organization the way we intended it to. “In its most basic form, a story is a multiutterance, descriptive form of talk that presents a sequence of events that have occurred in the past” The RAF Model – The reconstruction after feedback Functionalistic Method The importance of different Stakeholders Communicating to Stakeholders The topic Corporate Storytelling basiclly work with the notion of wether companies can or should try to manage the creation of stories in the organization or not. The reason why it's such a important topic is because Storytelling have become a giant part of the way we approach brands and the corporations behind them.
As consumers are we having interest in knowing what believes and stories there are behind the brand and corporations we buy into, and at the sameting are all of us having interpretation and ideas about the truth about many different things. All of these idea because of the new tecnologies be made into stories on social medias in seconds that can have devestading effects on corporations.
Companies are therefore interestend in setting up ideas and believes that both internal and external audiences can share and believe to be truth. And Storytelling can basically be seen as a attempt from marketers to manage these meanings. Corporate Storytelling The author present Issue and crisis management as a way for managers to deal with issues before they turn into crises. It is explained that in a even small issues can turn into damaging crisis if the company are not approaching the issue properly. If it turns in to a crisis it not only demands immediate action from the organization.

An issue can be defined as both
a concern about the organizations decisions and operations
a conflict in opinions and judgments’ regarding a company’s decisions and operations.

In this chapter companies are told to deal with issues by following a four stages approach, that bases it's arguements on different authors on the topic.

1. environmental scanning
2. issue identification
3. issue-specific response strategy
4. evaluation

Within each step are different methods presented that are suppose to help the manager target and react correctly on the situation, mainly by evaluating if the issue are high or low priority. Functionalistic The intereffication model (IE-Model) focuses on the relationship between Public Relations (PR) and Journalism. Unlike the determination hypothesis, the IE-Model stresses the interconnectedness of PR and journalism (Determination Theory in Public Relations). Intereffication means that neither PR nor journalism would be able to function properly without the existence of the other .

Adaptation can be defined as “communicative and organizational processes of adjustment”.

Inductions are defined as intended and directed communicative offers and stimuli, which results in resonances in the respective other system (two systems; the PR-system and the Journalism-system, (see fig. 1 page 36)).

Key points

The Aim of this article is to present and explain the IE-Model and to demonstrate that it constitutes a useful theoretical framework for research investigating the journalism-PR-relationship.
• The IE-Model offers a complex and dynamic description of PR´s relation with journalism.
• Neither PR nor journalism would be able to function properly without the existence of the other.

Looking at current research the model has been used often as theoretical background, but in the actually empirical research there has been a tendency of only using parts of the model and only focusing on a few selected variables.
The model is very complex and the authors are aware, that a complex multi-layered model such as the IE-model, with its double-ended and dual structure, cannot be operationalized easily, because of this complex relationship between journalism and PR. Method This book chapter describe the case of the US tobacco industry and their communication strategy (their lack of issues management) while going through a huge crisis.

The plan should formulate goals, strategies, and tactics that will result in an optimal “fit” between the deployment of an organization’s resources and the opportunities for responding effectively to its environment. This way is it argued that companies by adapting to the environment can learn to approach issues perfectly, and most times avoid them.

The chapter identifies four functions which are commonly identified in issues management:

1. Anticipate and analyze issues
2. Develop organizational positions on issues
3. Identify key publics whose support is vital to the public policy issue
4. Identify desired behaviors of key publics
"The purpose of issues management is not really to influence public but more to change the organizational practices, by making them more responsive to the public interest." Shortly after the introduction of tobacco in the early 16th century, public health agencies started questioning the health of tobacco. This developed and during the 1950s studies showed a connection between tobacco smoking and lung cancer. The tobacco industry reacted by making advertisements and answers denying the connection. They became quite desperate, and were considered unethical because of their advertising targeted against young and adults wanting to quit smoking. The conclusion which Pratt makes is that the failure of the tobacco industry to use issues management deprived it of its changes to contribute more meaningfully to the US public policy on smoking and health, that is, to influence the policy agenda. Mad Men
Lucky Strike Advertisement Case Study and Method Back in the days there were a old adage saying that "There is no such thing as bad publicity". But back then things were different, and the main reason for this may have been that people forgot the bad publicity sooner or later. But today things are a lot different, the internet make every single comment last forever, and it is possible for everyone to leave a everlasting footprint on brands just by type in a review or make direct complains about their experiences with a brand. The response and way the company behind the brand can then be followed by millions online.

There are many different ways a company can choose to approach a issue, but the condictions are most serdantly changed and marketers should deffently pay attention to the instidution, codex, tradition, speed, etc. that are caracteristic for the industry they are working within. The article by Gaunt and Ollenburger describes issue management, the definition, how it occurs, and how to deal with it. The authors like specifically in to the articles within the issues management discipline that seeks to give come up with general answers to how to manage issues. The two authors like to see issues as simple lifecycles, that can be divided into stages. Five basic levels of issues status (p. 205):
by Crable and Vibbert (1985)
1. Potential: Someone demonstrate an interest in an issue
2. Imminent: Others start supporting the issue
3. Current: The issue are becoming a topic of conversation
4. Critical: The majority of people are aware of the issue and the action is demanded
5. Dormant: After the company have taken action and the issue appears to be resolved or sleeping Functionalistic The Authors suggestions:
1. Make the chief executive officer responsible of taking care of the issues
2. Have annual staff meeting, and examine the employees in classic issues
3. Let the staff rank the issues that the believe are the most important to take care of
4. Set down a task-group to work on a set of prioities for the CEO
5. Ask What is' questions
Scanning media sources for issue trends Issues Management We experience a world where consumers and stakeholder can unify emideatly on uncounttable online medias, and before companies know about it they can be found in a deep crisis.
This have made i paramount for marketers to keep them self informed about rising issues, so they can take action before it cost to much damage on the brand.
There is a tradition within most of the letteratur we have been presentet to in this course about issues as a simple slow developing thing easyly can be taken care of and managede and in most cases just ignored as some authors then believe that the problems then might diserpere.
Yet today most of the news we hear about in the news media are directly cut out from the social medias, and ditto the politics, meaning that companies simply no longer have the favorble opertunity til just look away until the storm disarpere, they have to take instant action to both the governental demands but also simple customer issues. Domino's Response Yelp makes it reinvented reviewing Domino's hardly damaged by
Employee's media Stunt A Strong corporate brand is made up of three “Brand Stars”

• Vision: How the manager vision the future, the goal
• Image: How the rest of the world sees the Corporate Brand
• Culture: How the organization works

Each of the ‘Brand Stars’ affect the others, more or less than planed. Which eventually will cause gaps between the different Stars.
Possible Gaps (Challenges corporations should be aware of):

• Vision - Culture Gap: If the CEO are not in contact with what happens in the organization, or the are not part of the culture themselves.
• Image - Culture Gap: The gab between how the rest of the world see the corporate brand and what they actually do.
• Image - Vision Gap: When the Top-Management communicate and launch a corporate brand strategy that not fits with what the rest of the world think is best or correct behavior of the Corporate Brand. "Corporate branding is a procedure where the company try to move towards aligning culture and brand, and focusing on all stakeholders – not just consumers."

“A corporate brand is more than just the outward manifestation of an organization – its name, logo, visual presentation. Rather it is the core of values that define it. The communication of those values is of course and important part of what an organization is... … The company that can communicate effectively helps to ensure that its various audiences knows what it does and what it stands for.”

“Communications must be based on substance. If they are not, inconsistency creeps in and confusion follows shortly thereafter” The article initially describes the case of Proctor and Gamble`s try of constructing a corporate brand and talks about how P&G have done it wrong.
Hatch and Schultz have done research among 100 companies around the world, over ten years. And it shows that, to have successful corporate brand 3 things, vision, culture and image have to be aligned within your brand. These three things Hatch and Schultz call “the strategic stars”. Based on their research they present a model which they call “The Corporate Branding Tool Kit”, a name which very much embodies it`s normative nature. They state that, in a corporate brand there can be three different “gaps”, the Vision-Culture gap, the Image-Culture gap and the Image-Vision gap. There are three core attributes that define the corporate brand as a distinct area; intangibility, complexity and responsibility.
Tangiblility: is described it with a fair certainty although we don’t know it in detail. From company on the other hand we only get information and because of their communication, its people and products, but we don’t know the history, strategy and values. We make our assumptions and judgements about the company based on this communication, but we interpret it from our own perspective, which might clash with what the company wanted to communicate. In general, familiarity equates to favourability. To make the corporate brand more tangible, it should try to build a consensual image and interactive relationships with all their stakeholders (e.g. customization, loyalty cards).
In contrast to a physical brand, a corporate brand is very complex, which makes control very difficult. There can be for example different cultures in the company that play a role in the contact with buyers and suppliers and not the end customer. There are also companies that have seemingly unrelated brands that all come from the same stable and those like Unilever who put its corporate name in the package. This achieves economies of communication, because all the products support each other and shows also the company’s brand portfolio to investors. But all forms of communication have to work cohesively together to create a common image which is hart to achieve due to fragmentation.
The corporate brand also has a broad social resposibility because customers not only buy a product but also a set of values. Ethics is an issue that confronts every company because apart from the society within which it operates it also relies e.g. on the goodwill of people, the local community and the government. This support is not given automatically, it requires approval of the company ́s activities. Especially now ethics are not a short-term option but a long-term necessity. This paper is an introduction to the concept of corporate branding. It argues that the concept of corporate branding is similar to service or product branding, as branding is a group of functional and emotional values which gives stakeholders a specific promise or experience. "Good brands have clear visions, strong cultures and staff aligned values. When people choose a brand they are initially concerned with rationally assessed functional values then emotional values"
(Ind, 2000; Goodyear, 1996) Corporate branding is defined as the action of managing the organization as one unified brand, prompted by the claim that consumers “buy” the companies behind the product. The role of the employees is also taken into consideration: the act of identifying with and dedicating to the corporate values contributes to the construction of a more believable and, therefore - successful brand. "Corporate branding affects the entire company and it is crucial that every department work together to ensure that the company speaks with one voice. The authors go through the importance of auto-communication when corporate branding companies need to address both internal and external stakeholders." Describing and supporting Hatch & Schultz Product branding:In the present competitive market conditions, branding assists with the differentiation of products through added meanings that lead to building an identity. As a consequence, consumers become dependent on the branded products` identity, sometimes expressing themselves through avoiding specific brands.
Corporate branding is used to ensure that companies or organizations are perceived as one unified brand. It is also closely bind to the collision of being unique with being legitimate. From a practical point of view, a clear distinction between a product brand and a corporate brand is challenging.
Incorporating the employee. They are embodiments of the company`s brand, identifying themselves though the corporation`s products, mission and values.

The quest for the true organization Building corporate values through internal marketing that are perceived as “true” and “authentic”. Corporate Branding Innocent Smoothie A brand that make a good effort in being coherent in its appearance and developing in the right tray The Five facets of organization’s identities (p.20):
The professed identity: How an organization processes’ themselves and which statements and or claims they use to define their identities.
The projected identity: How an organization manages how they are being projected to a specific audience, and how they adapt to different circumstances.
The experienced identity: Is how the organization’s members come together in having the same shared cognitive beliefs. The experienced identity can also be seen as a collective representation.
The manifested identity: How an organization has developed throughout time
The attributed identity: How different audience sees and describes an organization. The article is about different identities of an organization. In the article they discuss identity and how identity is linked to an organization.
The author’s discuss that an organization can have more than one identity, and it is argued that if they are all managed correctly the organization will have a great advantage over other organizations.
But the paper never talk about how these multiple identities can complement each other, and how these different identities can work together in creating a stronger organization – they only talk about how to distinguishing between different identities.
The article draws on articles written in the 1990’s, meaning that a lot could have happened within the field of organizational identity throughout the years. Corporations have realized that they are brands, and with that came the necessity of management of this reputation and the corporate brand that sustains it (Kapferer, 1991).

Authors can be split up in the one's who argues that identity can be managed, and those who argue the opposite.

It is also possible to group the authors in three catagories depending on how they argue:
Functionalists. who sees identity as being individual constructed
Interpretivists who sees is at being socially constructed
Postmodernist who sees identity as being produced through the use of language. "What to look out for when dealing with multiple identities in an organization" Method The objective of the paper is to define and develop the concept of organizational identity.
The first part of the paper focus on the meaning, significance and meaning of the term identity and the second part deal with the application of that knowledge. Part I: How a Identity is build up
Identity as a statement of central character: Organizations has to be based on something important and essential.
Identity as a classification that identifies: Here are the ultimate goal to find a formulation that will distinguish the organization from others, by having single, dual and multiple identities.
Identity over time: How have the organization developed over time, and how different identity-creating elements shaped the Identity. Part II: A strategy for discovering the dimensions of identity.
Extended Metaphor Analysis (EMA):

EMA is a way of asking in what ways a given organization is like a church (representing a normative organization) or a business (representing an utilitarian organization).
The ability to sustain two alternative metaphoric descriptions of the organization is the primary test of duality. When each metaphor can be applied, duality is established. Functionalistic / Method "The brand is the loudspeaker to herald what the company wants to stand for." Old school function/image-based brand management seem to be about managing impressions on the surface, and hereby trying to convince a wide audience that there are significant performance differences between two brands
Today corporations instead build identities for brands, by communicating what identity behind the brand believes in. This are engaging by audiences and a source of long-term relationships. Corporate Identity The brand Identity prism. Kapferer (1991, 1998) recognizes six facets of a brand - six leverages of added value.
(i) physical facet
(ii) personality facet
(iii) relationship facet
(iv) cultural facet
(v) customer reflection
(vi) customers' self-concept Kapferer (2002) argue that these facet defied brand identity. And the long-term meaning of the brand, depends on its coherence through time, its reason for being, its own personal truth, the key values it wants to fight for.
experiences, images and feelings, a brand-extended meaning slowly accrues in costumers collective memory of a brand.
Over time, brands becomes locked-in as the audiences attached to specific meanings to it. Meaning that brand will meet a conflict if they change its appearance away from its emerging attributed identity. Storytelling can be used as a way to get the point out by communicating the content by telling a story, instead of citing a multitude of facts, figures and details.
The key is in capturing the essence of any event and turning it into a story.

Three Easy Steps of Storytelling:
1.Describe the situation - set the stage by identifying the issue at hand
2.Actions taken - outline the specific actions you took to address the issue
3.Results - explain the ultimate impact and outcomes achieved

We all want to make a difference and not only communicate more effectively but to be able to influence others in a way that yields results. Practicing the art of storytelling builds leadership capabilities by emphasizing your value-add while engaging others to follow your lead.

Articulating your vision, strategy and actions by way of stories is memorable and allows your listeners to be able to truly relate to you more effectively and intimately.

Crafting your story is half the equation and the other half is delivering your story.

Do you deliver with passion, enthusiasm and expression? We've all been told the following phrase at one point or another, "it wasn't what you said but how you said it" that made all the difference and can have either negative or positive consequences.

In precsis: http://www.boston.com/business/blogs/global-business-hub/2013/05/communicating_t.html?goback=%2Eanb_113570_*2_*1_*1_*1_*1_*1 How to craft a good story Identity is one of the most discussed topic in the theory of social science.
Corporate Identities tend to focus on kind of general thing, while the things that actually make them unique are left out.

Reasons to establish a identity:creates the opportunity to say this is who we are, this is what makes us different from the others.the need for a coherent strategy Benefits of multiple identities:

Multiple identities allows a organization to meet a wider range of demands from external stakeholdersMultiple identities allows the organization to meet the expectations of multiple internal stakeholdersCorporations may be interested in showing many different personas, because by doing so the brand might attract a bigger audience. When the company grow it will need more stakeholders, and they will start question what is going on and why. NB when talking about Corporate Identity The concept of describing a identity is very complicated, one person or organization can have one core identity but different sub identities that in different ways differ from the core. Forms of duality

Holographic: When a company do exatly what they say

Ideographic: When a company started existing because they were rebelling against the market.

Compartmentalization: Multiple identities are maintained but are separated from each other

Deletion: When manager actually rid the organization of one or more of its multiple identities

Integration: When manager attempt to fuse multiple identities into a distinct new whole

Aggregation: When an organization attempts to retain all of its identities while forging links between them, and hereby collection an unorganizaed whole Innocent Smoothies Innocent Commercial Innocent as a consistent brand This paper by Christensen & Cheney was printed in the book “The Expressive Organization”, that challenges general assumptions about organizational identity, reputation, and branding.
The purpose of the paper is to confront the widespread idea that circulate within the field of organizational theory, where customers and external stakeholders are seen as the target audiences for organizations corporate identity campaigns.
In the paper are Christensen & Cheney acknowledging that well-crafted corporate identities are important when organizations pursuit visibility and legitimacy in the marketplace, but they refuse to believe that corporate identity campaigns is conducted to please the external audiences.
They argue that it is highly unlikely that external audiences have any interested in the self-absorbed messages that organizations communicate when they mass-advertise corporate symbols, values, and catchwords.
Instead are Christensen & Cheney presenting the idea that this type of communication could be seen as one of many tools that top-management uses to (re-)construct the self-image and culture that exist internally in the organization.
So the authors claim that much of the self-absorbed market communication can be described as auto-communication –that is understood as, communication where the sender is the receiver, and through which organizations establish and affirm themselves. Critique:
Since Christensen & Cheney wrote the article back in 2000, have the communication industry gone through dramatically changes. Social media like Facebook, Twitter and LinkedIn have turned the branding- and communication-industry upside-down.
Christensen & Cheney might be right when saying that some of the corporate communication are targeted towards the organization itself, but saying that the external audience have no interest in the symbolic meaning of corporate brands are questionable. Main Points:
The external audience have very little interest in how organizations see themselves, and are therefore not seduced by the continuous corporate identity campaigns. And top-management must be seduced by their own self-absorbed communication for thinking so.
The demand for corporate identities is primarily generated by organizations themselves.
Much of the corporate communication should be understood as auto-communication instead of external advertisement. In this paper it highlights strategic CSR communication with external stakeholders as a forceful way of understanding and analyzing processes of member identification in contemporary organizations.

The main point is that while auto-communication is something that will happen, whether a company wishes for it or not, many companies actually uses (or misuses) the phenomena via CSR communication.
Many companies proactively use their external stakeholders to get organizational member identification. In many cases, their CSR communication messages to external stakeholder are send back as positive messages to the “Corporate We”
Managers in companies proactively use external stakeholders for their status and legitimacy, whether or not the external stakeholders have a negative or positive attitude towards the company.
Company emphasizing its CSR efforts to gain organizational member identification. It adds the question of whether or not it is ethically and thereby should not be accepted or legitimate. SDU
This is what it's all about - our student's From the Airline who's key is 'has nothing to hide',
Have a great flight Working Together to Make Your Day Better Auto-Communication Among the various tools management can use when trying to integrate the internal audience to follow the overall vision, Auto-Communication may be an option.

Auto-Communication can be understood as the process where the company send out communication, explaining what their staff are doing to make the experence better.

Most of the timers are the Auto-Communication looking just like any other commercial or add from the company, but here are the intire focus on the employees and their commitment in service the customers regarding the values and princips of the company.

So to an large extent can Auto-Communication be seen as a way for managment to get the message out to the employees, and make them committet to follow in a surdan direction.

In other cases are the commercials not about the employees but about the companies suppiers, but this are not that different, because this can also be seen as a way for the company to push the internal stakeholders to perform to their best and live up to the demands from the company at all times. Hemphill 2004 Corporate citizenship can be considered an extension of Friedman’s stockholder theory, that a corporation’s sole objective is to make a profit, as long as it obeys the law and ethical customs, in the sense that the fourth face, strategic philanthropy, can be beneficial to a firm’s bottom line and help it gain a competitive advantage.
Strategic philanthropy, or doing good in the society, can increase a firm’s reputational capital, thereby having a stronger social image to customers and employees, which would lead to higher profits. Strategical CSR Corporate Citizenship: “The extent to which businesses meet the economic, legal, ethical, and discretionary responsibilities imposed on them by their stakeholders.” “Profit-making is not antithetical to good corporate citizenship. Indeed, it is required of good citizenship.” (Carroll, 1998)
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