sprp wilson siahaan

7/25/2019 SPRP Wilson Siahaan

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Stakeholder Relations andCorporate Social Responsibili

Wilson T.P. Siahaan

Corporate Communication

Strategic Public Relations Planning

e-Learning Program Batch 4

2016


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Key Concepts

Stakeholders Stakeholder Analysis

Communication Techniques

Stakeholder Relations

Corporate Reputation

Organizational Trust

Corporate Social Responsibility

CSR Reporting


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What is takeholder?

Edward Freeman in his a book Strategic Management: AStakeholder Approach (1984): Stakeholder is any group orindividual who can affect or is affected by the achievementsof the organizations objectives.

Stakeholders can influence the environment of anorganization and then financial and operating performance.Thus, effective management of stakeholder relations isgrowing as a key focus of PR and organization activity.

Stakeholders may change overtime and their importancecan vary from issue to issue and from time to time (Mitchell,Agle & Wood, 1997).

Stakeholder PUBLIC, but sometime the distinctions areblurred and can be used interchangeably.


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Typical Stakeholders

Employees, prospective employees and retired employees

Chairman, directors, CEO and various management levels

Local, provincial and national government institutions

Global, national, local news media & social media

Shareholders, investors, stockbrokers

Education institutions, experts, opinion-makers

Community members and leaders

Customers

Competitors

NGOs, interest groups, activists

Unions and related labor groups

Each stak

have diff

Requi

Commu

Segm

M

PR C

Op


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Stakeholder Analysis Strategies

Some criteria to assess strategic value ofstakeholders (Scholes & James, 1997): (1)Influence; (2) Impacts; (3) Alignment.

Mahon, 1997: Matrix to assess strategic value ofstakeholders a tool to evaluate the importanceof individual or groups of stakeholders to acertain issue:

Develop list of criteria, critical to solve theissue

Assign weights to the criteria to define thestrength of the stakeholder on that issue

Determine if the stakeholder is in favor of,opposed to, or neutral towards, theorganizations position and act accordingly

Strategies to deal with different stakeh

High

High

Stakeholder T

Mixed Stra teg

COLLABORAT

Low

Stakeholder T

Unsupportive

DEFEND

Stakeholder's

Potential for

Cooperation

Potent


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Communication Techniques

Face-to-face meetings or briefings

Newsletters and background information in brochures, reports, etc. targespecific stakeholder groups

Invitations to attend events such as product launches, sponsored events, activities, etc.

Site visits and open days

Discount offers to members or shareholders

Website pages containing relevant information ie. online newsroom for m

Email information updates

Social media ie. blogs, twitter, wikis, etc.


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Stakeholder Relations Management Process

1. Identify all relevant

internal, interface andexternal stakeholders

2. Identify key stakeholders- Control over resources

- Ability to form coalitions

- Have relative market power ie.

potential threat or cooperation

3. Diagnose key- Supportive

- Non-Supportiv

- Mixed blessing

- Marginal

6. Evaluate the success orfailure of stakeholder

management strategies

and tactics- Use a stakeholder management

report card

5. Implement generic

strategies- Develop specific implementation

tactics

- Assume responsibility for

managing key stakeholders

4. Formulate ge

stakeholder m- Involve support

- Defend against

- Collaborate wit

- Monitor margin

Feedback


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Corporate Reputation: Definition

Fombrun (1995): Overall estimation in which an organization is held by itsexternal stakeholders based on the organizations past actions and proba

future behavior. Collective representation of images and perceptions.

Watson (2007):

A reputation involves relationships with all stakeholders and is gainedand enhanced or detracted from over time.

Reputation is the sum of predictable behaviors, relationships and twocommunication undertaken by an organization, as judged affectively aby its stakeholders over a period of time.

A good reputation can help business achieve its objectives sell more probetter credit arrangements, receive fiscal incentives, etc.


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Corporate Reputation is an Outcome of Pr

Reputation is an outcome of processes.

Grunig (2006): Company can only influence the outcomes by mprocesses.

Murray & White (2005): Driver of reputation is the day-to-day eof the company by any stakeholders.

Stakeholder attitudes can be influenced by relationship manag

activities incl. providing positive publicity.

Reputation is a soft, intangible and abstract concept.

The benefits of good reputation can be as increased financial vprofitability.


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Main Components of Corporate Reputatio

According to Jeffries-Fox Associates (2000):1. Ethical

2. Employees/Workplace

3. Financial Performance

4. Leadership

5. Management

6. Social Responsibility

7. Customer Focus

8. Quality

9. Reliability

10. Emotional Appeal

CEO can play a crucial role to corporate reputation


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Building and Shifts of Corporate Reputatio

(McCoy, 2000): Six steps to build corporate reputation through stakeholdeprogram:

1. Conduct a research of your stakeholders.2. Assess their strength and weaknesses, focus on the gap between internal realit

perceptions.

3. Define main factors of corporate reputation aligned with internal policies, syste

4. Set plans to exceed stakeholder expectations.

5. Involve the CEO as a champion.

6. Measure regularly against targets and act to improve the results.

Several ways to shift a reputation under pressure:

(1) Discard; (2) Conceal; (3) Redefine; (4) Transfer; (5) Create.

Online Reputation: increasing importance nowadays

Loss of corporate reputation: issue management and risk analysis relating


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Organizational Trust

Trust depends on history of interactions between a company a

stakeholders, and it is developed when behavior matches expeTrust is related to reputation and ethics.

Being trustworthy generates positive benefits for company.

What is TRUST? Trust is willingness to accept vulnerability basepositive expectations about anothers behavior.

Rawlin (2007): For organizations, trust is necessary for cooperacommunication, and the foundation for productive relationship

Trust is essential for stakeholder relations; fostering good relatthe key function of PR. So then, trust is central to effective PR.


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How can companies rebuild trust?

Rawlins (2007): How can companies rebuild trust?

1. Be open and honest in business practices2. Communicate more clearly, effectively and straightforward

3. Visibly demonstrate concern and consideration for employ

4. Be involved with community

Communicate the whole truth vs substantial completeness

reasonable[persons requirements for information are satisf(Klaidman & Beacuchamp, cited in Martinson, 1996].


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Corporate Social Responsibility: Concept

Companies are increasingly demanded by stakeholders to be more social

There is no single widely accepted definition of CSR.

European Union (2001): CSR is a concept whereby companies integrate senvironmental concerns in their business operations and in their interactstakeholders on a voluntary basis.

Business for Social Responsibility: CSR as business decision making linkevalues, compliance with legal requirements, and respect for people, commthe environment around the world.

Herman (2004): Specific value which can emerge from companies embrac

Managing risks

Protecting and enhancing reputation and brand equity

Building trust and license to operate

Responding to or pre-empting regulations

Building future market opportunities.


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CSR Public Relations

Heath & Ni (2008): CSR and Public Relations are not identical, but must beinterdependent to be effective: being a good organization is a prerequisit

communication. Devin & Bartlett (2009): Main elements in communicating CSR activities:

1. The vehicle (communication devise used to communicate legitimac

2. Claim (what was actually said)

3. Justification (how claim was justified in order to demonstrate legitim

4. Intent (what the organization intended to say through the claim)

Greenwash behavior: inaccurate, unqualified, or overstated justificatioan organizations ability to create a legitimate environmental claim.

CSR activities & communication messages need to be perceived as genuin

Sustainability is a concept of development in a way that integrate social, environmental factors to meet the needs of present without compromisin

meet the need of the future.


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CSR Reporting

Formal reporting:

CSR as part of Annual Report

Sustainability Report, Corporate Responsibility Report and Environmental Overview Mostly consist of combination of texts and plenty of visual element

Website Reporting

Triple Bottom Line Reporting: (1) Economic measures; (2) Social measures; (3) Environm

Global Reporting Initiative (GRI): (1) Economic indicators; (2) Social indicators; (3) Envirindicators

CSR Evaluation: Hard to measure.

Most common measures: feedback from projects, employee attitudes, community attitudes, internal customer satisfaction, 3rd party advocacy support, government acustomer attitudes and benchmarking (Center for Corporate Public Affairs, 2007).

None of these are hard measures that enable companies to directly relate CSR outor profitability.


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Thank You

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