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Communication in the business world
Challenges in strategy in communication
Communication in the business world
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A good corporate image and strategic communication are essentials for the organization’s reputation management in the 21st Century. Reputation becomes a potential mean that can affect the market value of the company and “an intangible asset of the firm” (Helm, 2007, p. 238; Gaultier-Gaillard & Louisot, 2006; Thiessen & Ingenhoff, 2011 p. 8). Good understanding of joint operations and use of different channels of media can help an organization that in crisis to retrieve confidence and market values (Gamage, 2016). To signify and increase the reputation, organizational values, vision, goals, and mission are required to be sent out to all groups of stakeholder accurately and effectively. This is because communication plays an indispensable role …show more content…
164). Corporate reputation management is a primary tool for managing a relationship with stakeholders by an organization (Cornelissen, 2014). This statement confirms the relationship between and the significant role of communication and reputation management in operational activities. Helm (2007) points out that the aim of reputation management should be at balancing disparities in reputation that occurred among groups of stakeholder. He furthered state that reputation should be built among the groups that hold less satisfaction of the …show more content…
Coombs (2007); Ulmer, Sellnow, & Seeger (2011) Šontaitė-Petkevičienė (2014) share a common agreement that crisis is a sudden, unexpected and uncertain event, and a threat and harm to stakeholders or public saftety, financial losses, and reputation damage. The cause of a crisis is oftentimes because of unethical actions are often the cause of a crisis and the organization’s ethical values was revealed when there is a crisis occurred (Ulmer, Sellnow, & Seeger, 2011). Crisis communication aims to address a crisis situation by collecting, processing and disseminating information (Coombs & Holladay, 2010). Conversely, (Benoit, 1995; Coombs, 1999) argue that crisis communication is basically a part of public relations (PR) and it is a requirement for organizations to repair damaged images after a crisis or disaster (as cited in Seeger,
If effectiveness and productivity is the main goal, ultimately it is vital for organizations and corporations to collectively employ both marketing and public relations initiatives. Sells and relationships go hand and hand.
In an audit conducted with the global athletic apparel brand, Lululemon, it was found that multiple public relations theories could be applied to its communications with both internal and external publics. Two prominent theories found through analysis of the crises dealt with by the company were the agenda setting theory and the semiotics theory. As Lululemon has faced crisis in the media on multiple occasions, these theories suggest which public relations techniques worked, and alternatively which didn’t.
In order to understand the thought process of leadership during a crisis, the authors state that we must first understand a conceptual model that is theoretically grounded, (Combe & Carrington, 2015). The conceptual model is divided into two elements, the descriptive and prescriptive mental models, (Combe & Carrington, 2015). The descriptive mental model focuses the external changes that occur during a crisis. The prescriptive mental model concentrates on future actions that need to be implemented to derail the cognitive overload due to continuous external changes as the situation unfolds. The prescriptive model aligns objectives, providing clarity to future implications related to the crisis, (Combe & Carrington, 2015). The authors, Combe & Carrington, (2015) have noted the importance of longitudal research perspective to capture the thought processes of interaction, communication and problem solving in a crisis. This type of research method is instrumental in depicting the challenges to incorporate better solutions to evolving situations. Sense making in a crisis defines these issues to ascertain the complexity and provide meaning to the event, (Combe & Carrington, 2015). Sense making entails the filtering of excessive data to identify the areas of importance. This perspective provides a means of taking a negative, that being disruptive and changing it to a positive or opportunity for
Crisis is defined as a major, unpredictable event that has potentially negative results. The event and its aftermath may significantly damage an organization and its employees, products, services, financial condition, and reputation. There are many types of crises, for example, economic crises, physical crises, personnel crises, criminal crises, information crises, reputation crises and natural crises. This incident has been grouped into physical crises, natural crises and economic crises. In order to prevent crises from adversely affecting the firm, organizations need effective plans and procedures in place to prevent crises if possible, or to mitigate their effects when they do occur.
Indeed, crises occur, inevitably, throughout society; emerging due to some form of accident, miscalculation, or possibly just random chance. One such example is that of the Deepwater Horizon Oil Spill, also known as the BP oil spill, occurring on April 20th, 2010. To clarify, the event is known as the largest marine oil spill in history, killing eleven people, and discharging nearly 5 million barrels of oil into the Gulf of Mexico. Certainly, the crisis spawned a substantial amount of outrage, backlash, and controversy due to the calamitous effects of the incident. Through unambiguous efforts, BP (British Petroleum) attempted to calm the public’s reaction to the situation by using strategically sophisticated skills in public relations. Through my analysis, I will assess the ways in which BP attempted to manage the crisis with regards to the ethical values portrayed, as well as the overall effectiveness of the responses. Therefore, I will commence by providing background through a brief
Forman, J., & Argenti, P. A. (2005). How Corporate Communication Influences Strategy Implementation, Reputation and the Corporate Brand: An Exploratory Qualitative Study. Corporate Reputation Review, 8(3), 245-264.
As discussed earlier, public opinion can make or break an organization. To grow, companies either need to sell enough products and services to realize a profit or get investors. Both requires a positive public image. A company builds their image by acting in accordance with their values, and from demonstrating appropriate values. Documenting, implementing and publicizing the company's values and/or mission statement allows the public, clients, investors, and employees to understand what the company stands for, that it takes business ethics seriously. Companies with strong reputations are also companies that tend to attract more investments.
Just as we as a class have examined the case studies of Johnson and Johnson (Tylenol) which took place in 1982 and the British Petroleum (BP) students gulf oil spill from 2010, students will look to this case study in terms of investigative journalism, moral ethics, religious perspective, public relations and the use of crisis communications skills. Scholars will have several other notable cases to reference where the lesson will cover the belief that the “cover up is always worse than the crime”. Penn State University’s handling of the Jerry Sandusky child abuse scandal, in addition to the Fraternity hazing rituals that have plagued universities nationwide, are all examples of crisis situations that were allowed to continue due to institutions not confronting the crisis head on with a clear transparency and acceptance of fault. This week revelations surfaced of a prominent Hollywood director who for years has been secretly accused of sexual harassment. These allegations were covered up with monetary settlements and confidentiality agreements.
The discipline of public relations is a modern profession which has been in existence for only close to a century; however, it has already taken an important role in the fields of business, government, entertainment and non-profit organizations including educational institutions and healthcare organizations. Public relations professionals are required to have excellent organizational, interpersonal and communication skills and have the ability to persuade the public. It is imperative for PR professionals to effectively communicate with its public in order to establish and maintain a positive relationship. Furthermore, public relations professionals must have the ability to work under pressure and effectively manage crisis which may have detrimental effect on the company and the public it serves. State purpose of paper and an overview of what will be covered in the introduction
Public relations, is an activity aimed at increasing communications and understanding between an organization and individual and one more groups called public. The terms are also applied to the professions responsibility for handling such assignment. Companies, education institutions, religions groups, government agencies, trades union, politicians, and entertain is among those who used public relations. Their public from employees and share holders to an entire communities or members of the new media. The communications between organizations and its public, range from the simple news releases to a sophisticated campaign featuring film, advertisements, speech and televisions appearances. Such communications is aimed at gaining the goodwill of the public (Public Relations, 1994).
The communication process is not something that begins when a crisis rears its ugly head rather it is a process that takes place in preparing for a crisis before it happens. While the term crisis represents a blanket term used to describe many situations, each situation is unique, thus presenting different obstacles to overcome. However, with a well-established advanced plan in place an organization places itself in a position to overcome and work around obstacles. The development of a comprehensive crisis management plan is one achieved through effective communication where each member of the crisis management team has an advanced shared understanding of his or her role and responsibility during a time of crisis (du Pr'e, 2005).
2) Limit the damage, and 3) restore credibility. Following these goals ensure a successful public relations plan for any organization. Crisis management definitely needs to be addressed in any organization. ? Although it is usually not a fun role for public relations manager. The.
Today, public relations is a complex profession by thousands of thousands of people all the world to practice. Almost all large and small organizations have their own public relations department or they need to outsource their public relations to a company. Public relations practitioners work for schools and universities, companies, governments, professional and trade associations, hospitals, hotels, non-profit charities, and other else more (Grunig, 2001). Therefore, PR is an important department for organizations.
Public relations is everywhere today. It is a practice that has become an important aspect of any business venture. Whether an organization is not for profit, for profit, or governmental, they still need and desire to communicate their purpose within the community and public relations allows this to happen. There are several publics in which the PR practitioner must correspond with and each requires a different means of communication. Internal publics are inside the organizations such as clerks, managers, and stockholders. "External publics are those not directly connected to the organization: the press, government, educators, customers, suppliers, and the community" (Seitel, 2004). Each public plays a key role in the PR of the organization. The many functions of PR can also be categorized based on what purpose they serve the organization.
... as a buffer and allow the organization to remain in business during economic shocks. A good reputation leads to more of a competitive advantage when selling products and services. Also, it increases shareholder value and attracts top talent. Good communication is essential in order to protect and repair a company’s reputation. If stakeholders hear bad news and the company does not communicate to them about the issue, they will believe what they hear; and this, in turn, will cause damage to the reputation of the company. In addition, all consumer complaints should be answered in a timely and appropriate manner. This will show the consumers that the company values them and their input. Corporate social responsibility (CSR) and ethical actions advance reputation. Transparency is extremely important if the organization wants to maintain its good reputation.