FUTURE OF CORPORATE COMMUNICATION MANAGEMENTSocial Forces and Public Relations in the Global Spread of Democracy

NOKE KIROYAN

Enhancing Strategic Stakeholders Engagement to Safeguard Reputation in the Digital EraJakarta, December 14, 2011

Defining Corporate Communication

As the term Public Relations becomes synonymous with notions of ‘spin’, propaganda and corporate lying, some practitioners (and

academics) dissociate themselves from the ‘press agentry’ antics by signifying a more strategic approach to PR.

Thus, strategic practitioners use terms such as reputation and relationship management, stakeholder communications, and corporate

communication to dissociate themselves from spin doctors.

….there is such a clear correlation between Grunig’s concept of ‘excellent’ PR and the concept of corporate communication that the

terms could be used interchangeably.

“Exploring Public Relations” – Ralph Tench & Liz Yeoman, 2nd ed., FT Prentice Hall, Harlow, 2009 2

Issue: ‘corporate’

might be too narrow

– how about non-corporate

organizations?

Seek attention for

their organizations in almost any possible way

Journalists-in- residence

who disseminate accurate, but usually only favorable,

information

Conduct scientific

research to determine

how to persuade publics

Use research and dialogue

to bring about

symbiotic changes in

ideas, attitudes and behaviors of both parties

PRESS AGENTRY/PUBLICITY

PUBLIC INFORM-

ATION

TWO-WAY ASYM-

METRICAL

TWO-WAY SYM-

METRICAL

Grunig’s 4 Models of Public Relations

3“Managing Public Relations” - James Grunig & Todd Hunt, 1984

1

3 3

2

Win-Win Zone

Mixed Motive(Symmetric)

DominantCoalition’sPosition

Public’s Position

Organization’s PositionDominates (Asymmetric)

Public’s PositionDominates (Asymmetric)

4

1 Pure Asymmetry Model

Type of Practice

2 Pure Cooperation Model

3 Two-Way Model

Communication used to dominate public,accept dominant coalition’s positionCommunication used to convince dominantcoalition to cave in to public’s position

Explanation

Communication used to move public, dominant co-alition’s position, or both to acceptable ‘win-win zone

New Model of Symmetry as Two-Way Practices

“Manager’s Guide to Excellence in Public Relations and Communication Management” - David M. Dozier, Larissa Grunig, James E. Grunig, 1995

5

Democratic versus Authoritarian Communication Models

• In a democracy the two-way communication model is dominant

• In authoritarian societies there is less need for engagement, consequently communication tends to be one way

Media Coverage

Opportunity to influence

Potential Emerging

Period of increasing awareness

Mediation/AmplificationOrigin Organization Resolution

Difficult to influence

Current Crisis

Formal constraints

Development

Pres

sure

Dormant

Issue ManagementEarly issue identification

“Risk Issues and Crisis Management in Public Relations: A Casebook of Best Practice” – Michael Regester & Judy Larkin, 2008

Hallmark of Democracy: Issues and Crisis Management

6

7

Hallmark of Democracy: Media Engagement

Media Relations 100.0%* Community Relations 61.5%

Public Relations 98.4%* Mission Statement 56.9%

Communication Strategy 96.9%* Corporate Citizenship 50.8%

Crisis Communication 93.8%* Brand Strategy 50.8%

Communication Policy 92.3%  Marketing Communication 41.5%

Executive Communication 87.7%* Advertising 41.5%

Reputation Management 84.6%* Corporate Culture 40.0%

Employee Communication 81.5%* Investor Relations 32.3%

Social Media 78.0%  Government Relations 15.4%

Internet Communication 76.9%  Technical Communication 13.8%

Intranet Communication 76.6%  Ethics 9.2%

Annual Report 75.4%  Training & Development 7.7%

Corporate Identity 69.2%  Labor Relations 4.6%

Issues Management 67.7%     

* Almost ubiquitous

Key Corporate Communication Functions

“Corporate Communication – Strategic Adaptation for Global Practice” – Michael B. Goodman & Peter B. Hirsch, 2010 8

Global Corporate Communication RoleEmployee Communication

Media Relations

Corporate identity and brand management

Public and community relations

Crisis communication

Public affairs/Government relations

Investor relations

Annual report and other publications

Corporate social responsibility/sustainability/philanthropy

Influencer relations (industry analysts/academia)

Executive positioning

Corporate publishing and production, including Web site

“Reputation Management – The Key to Successful Public relations and Corporate communication” – John Doorley & Felio Fred Garcia, 2nd ed., 2011 9

10

Stakeholder Theory

Any group or individual who can

affect or is affected by the achievement of the

organization objectives

“Strategic Management - A Stakeholder Approach” – R. Edward Freeman, 1984

11

Excellent Public Relations

Public relations increases organizational effectiveness when it

builds long-term relationships of trust and understanding with strategic publics of the

organization – those that affect or are affected by the organization as it identifies and

pursues its mission

“Two-Way Symmetrical Public Relations” - James E. Grunig in “Handbook of Public Relations” – Robert L. Heath (ed.), 2001

PUBLIC RELATIONS is the management of mutually influential relationships

within a web of stakeholder and organizational relationships

By better understanding stakeholders, managers can decide who deserves their

attention and time.

Stakeholders can shape organizational practices through their giving or retracting

of stakes (support)

Public relations should be deliberate and goal-oriented – it is based on strategy

Stakeholder Approach to Public Relations

“PR Strategy and Application: Managing Influence” – Coombs, W.T. & Holladay, S.J., 201012

“The Pyramid of Corporate Social Responsibility – Toward the Moral Management of Organizational Stakeholders ,” - Carroll, A. B., Business Horizons No. 34, 1991

Stakeholder Identification

Who are our stakeholders?

Stakeholder Analysis

What are their stakes?

What opportunities and challenges are presented by our

stakeholders?

Stakeholder Engagement

What corporate social

responsibilities do we have to our stakeholders?

What strategies, actions, or decisions

should we take to best deal with these responsibilities?

Five Major Questions in Stakeholder Management

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Stakeholder IdentificationTo whom does the organization have legal obligations?

Who might be positively or negatively be affected by the organizations activities or decisions?

Who manifested concern about the issues or impacts?

Who has been involved in the past when similar concerns need to be addressed?

Who can help the organization address specific impacts?

Who can adversely affect the organization’s ability to meet its important objectives?

Who would be disadvantaged if they were excluded from the engagement?

Who in the value chain is affected?

Who may have an impact on the reputation of an organization?

Who may influence the policy and regulatory environment in which the organization operates?

Who may impact on the value of the organization?

Adapted from “ISO 26000: Guidance on social responsibility,” International Organization for Standardization, 201014

Stakeholder Analysis

1. Map stakeholder relationships

2. Map stakeholder coalitions

3. Assess nature of each stakeholder’s interest

4. Assess the nature of each stakeholder’s power

5. Construct a matrix of stakeholder moral responsibilities

6. Develop specific strategies and tactics

7. Monitor shifting coalitions

“Business Ethics: A Stakeholder and Issues Management Approach,” Joseph W. Weiss, 4th edition , 2006 15

Example of Stakeholder Analysis

Stakeholder Category Power Legitimacy Urgency Proximity Score(/20)

Bupati/Regent pr 5 5 5 5 20

Regional Planning Bureau pr 4 5 5 5 19

Land Administration Agency pr 4 5 5 5 19

Regional EPA pr 3 5 5 5 18

Pinang Village de 2 4 5 3 14

Sura (Informal Leader) de 5 5 2 3 15

Clan Organization (Jakarta-based) la 1 1 1 2 5

Village Youth Organization de 4 5 1 5 15

Excerpt from Stakeholder Analysis Conducted by Kiroyan Partners in 2009 16

Elements of Issue/Problem Statement

1WHATis the

problem?

2WHEREis this

problem occurring?

3WHENdid this

become a problem?

4HOW

did this become a problem?

5WHO

is the target, for whom

is it a problem?

6WHY

does this threaten the

organization’sability to fulfill its mission?

Adapted from “Strategic Public Relations Management: Planning and Managing Effective Communication Programs ,” Weintraub Austin, E. & Pinkleton, B.E., 2nd ed., 2006 17

LocalCommunities

Village Heads

Local Government

Local NGOs

Clan-based Organizations

3

2

Commun-ication

EconomicBenefits

Land Rights

Environ-ment

CommunityDevelop-

ment

3 3 3

3

13

22

2

Stakeholder Issues Matrix

3 3 3 3 2

21

1

23 3

Excerpt from Stakeholder Analysis and Perception Study Conducted by Kiroyan Partners in 2011 18

Stakeholder Management and Communication

STAKEHOLDER MANAGEMENT

Stakeholder Engagement

Communication Strategy

CommunicationTactics

MANAGEMENT POLICY

StakeholderAnalysis

COMMUNICATION POLICY

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Stakeholder Engagement and Communication Strategy

COMMUNICATIONSTRATEGY

STA

KE

HO

LD

ER

E

NG

AG

EM

EN

T20

Corporate Communication Process

STAKEHOLDER MANAGEMENT

STAKEHOLDER ENGAGEMENT

COMMUNICATION STRATEGY

COMMUNICATION FUNCTIONS

CORPORATE POLICY

PUBLIC RELATIONS

COMMUNITYRELATIONS

INVESTOR RELATIONS

EMPLOYEE RELATIONS

MEDIA RELATIONS

PUBLIC AFFAIRS

Senior Management

Middle Management

Top Management

Junior Management and implementing staff

Event Management/Press Conference/Press Release /Media Monitoring/Interview/FGD, etc.COMMUNICATION TOOLS

STRATEGIC

TACTICAL

TECHNICAL 21

Stakeholder Communication

STAKE-HOLDEREFFECTS Awareness Understanding Involvement Commitment

TACTICS NewslettersReportsMemosFree publicity

DiscussionsMeetingsAdvertising and educational campaigns

ConsultationDebate

Early incorporationCollective problem-solving

TYPE OF STRATEGY

Informational strategy

Informational/persuasive strategy

Dialogue strategy

“Corporate Communication: A Guide to Theory and Practice,” Cornelissen, J., 2nd edition, reprinted, 2009 22

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The precise, research-based Stakeholder Approach (=“Sniper Approach” - every bullet counts) to communication allows more effective and efficient use of resources.

Stakeholder Management + Communication Strategy= Sniper Approach

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Summing UpCorporate

Communication is identical with

Grunig’s Excellent Public Relations

Two-way communication is the most effective form of Corporate Communication/Public Relations

Two-way communication

implies engagement

Stakeholder engagement is the most effective way

to gauge social forces affecting

one’s organization

PT KOMUNIKASI KINERJAMenara Karya, 10th Floor Suite

HJl. HR Rasuna Said Blok X-5 Kav.

1-2Jakarta 12950 – INDONESIA

T: +6221 5794 4694F: +6221 5794 4696

info@kiroyan-partners.comwww.kiroyan-partners.com

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