Blok 2.1 Flashcards
A corporate personality consist of…
Corporate personality encompasses the capacity of a corporation to have a name of its own, to sue and be sued, and to have the right to purchase, sell, lease, and mortgage its property in its own name. In addition, property cannot be taken away from a corporation without Due Process of Law.
Brand identity
A company’s brand identity or a brand’s brand identity (if a company own more than one brand) is the way in which it is defined through its style both visually and the values it portrays (its brand personality).
There are 3 types of brand identity
Monolitic identity
The whole company presents itself as ONE both visually and in the way it communicates and behaves. BP and Burger King are good examples of that type of corporate brand identity.
Endorsed identity
Subsidiary brands have their own style and identity but pay homage to their parent brand which is clearly presented in the background. Subsidiary brands can have their own personality but are still endorsed by their parent brand. A good example of this is car manufacturers who have a series of sub-brands but are each new brand of car is still heavily associated with its parent brand.
Branded identity
Each division has its own identity and style but product lines do not have anything to do with each other or the parent. This can be as a result of mergers and acquisitions where existing brands with strong identities do not want to be merged with their new owner.
What is a risk society?
There are a lot of issues of social importance, the general public expects a corporate response.
How does an issue turn into a crisis?
- pressure (from stakeholders)
2. do not deal with it until it becomes a thing
What is the life cycle of an issue?
Stage 1: emerge
Stage 2: debate
Stage 3: codification
Stage 4: enforcement
In the life cycle of an issue, what does stage 1 emerge contain/mean?
People start to notice things.
In the life cycle of an issue, what does stage 2 debate contain/mean?
The media picks it up. (Social media)
In the life cycle of an issue, what does stage 3 codification contain/mean?
The government and federal instances get involved.
Businesses lobby action so there won’t come new laws preventing them.
In the life cycle of an issue, what does stage 4 enforcement contain/mean?
The company is forced to act.
What are the 4 issue response strategies?
- Buffering strategy
- Bridging strategy
- Advocacy strategy
- Thought leadership
What is a buffering strategy?
An issue response strategy. This means that the company will deny the existence of the problem. They will remain silent.
What is a bridging strategy?
An issue response strategy. The company recognises the problem and tries to adapt, they also engage w/ stakeholders.
What is an advocacy strategy?
An issue response strategy. The company tries to change the stakeholders’ expectation, through issue campaigns and lobbying.
What is a thought leadership strategy?
An issue response strategy. The company stakes a position and they commit to progressive change.
What are Antagonistic stakeholders?
They are stakeholders who have high importance and low support.
What is the support- importance stakeholder matrix?
It consist of two lines; level of interest and level of support.
When someone has HIGH importance and HIGH support they are: Advocate stakeholders.
When someone has HIGH IMPORTANCE and LOW SUPPORT they are: Antagonistic stakeholders.
When someone has LOW IMPORTANCE and HIGH SUPPORT they are: Low-priority stakeholders.
When someone has LOW IMPORTANCE and LOW SUPPORT they are: Problematic stakeholders.
What are Advocate stakeholders?
They are stakeholders with high importance and high support.
What are Low-priority stakeholders?
They are stakeholders with low importance and high support.
What are Problematic stakeholders?
They are stakeholders with low importance and low support.
Are company vision values shared by all employees?
No. Leaders of the company must clearly define the values of the organization, the vision of leadership and expected behaviors for employees.
How can organisations deal with crisis scenarios?
1st: anticipation: predict and prevent potential crises before the occurred
2nd: resilience: ability to cope with a crisis when it occurs, improvise.
What are the 5 different levels of scenario planning for a crisis?
- Minimal Planning
- More extensive planning
- Extensive plans
- Stage 1-3, organisation-wide
- all previous stages + incorporates environmental scanning and early warning systems.
When scenario planning, what does minimal planning contain?
This is a limited set of plans. (evacuations and first aid)
When scenario planning, what does more extensive planning contain?
This is limited to natural disasters and human errors. It is mostly damage containment.
When scenario planning, what does extensive planning contain?
Crisis procedures.
- probable natural disasters
- human errors
- training employees
When scenario planning, what does extensive planning organisation-wide contain?
Evacuations, first-aid, natural disasters and human errors. There will also be consultation off potential crises and the impact on stakeholders.
How can a crisis also be a financial threat?
Disruption may lead to a loss of income, a damaged image may also lead to a loss of earnings.
What is the agenda-setting theory?
The media reports on an issue, determines that in the public mind.
The press does not tell people what to think, but it tells readers what to think about.
Much repeated issues become lodged in public’s mind.
What is reputational capital?
The quality of the relationship it has established with stakeholders and the regard in which the company and brand is held. It can shield the company from a crisis having a lasting negative impact.
What is the reservoir of goodwill?
An organisation with a favourable reputation suffers less and rebounds more quickly from a crisis.
What is the “Halo-effect?”
The repetitional capital may protect an organisation during a crisis.
What is organisational stigma?
A collective stakeholder group-specific perception that an organisation possesses a fundamental, deep-seated flaw which leads stakeholders to discredit the organisation.
What is a crisis that is unintentional and external?
Faux-pas
What is a crisis that is unintentional and internal?
Accident
What is a crisis that is intentional and external?
Terrorism
What is a crisis that is intentional and internal?
Transgression
What does a “Faux-Pas” mean when talking about a crisis?
It means false step. Here, social responsibility is the focal point. There has been a violation of social rules and expectations.
What is the best strategy to use when a “Faux-Pas” occurred?
Distance or association strategy.
What does “Accident” mean when talking about a crisis?
These are acts of nature or human errors. Stakeholders and publics are less likely to react negatively to acts of nature than human errors.
What is the best strategy to use when an “Accident” was the type of crisis?
Distancing or apology strategy.
What does “Transgression” mean when talking about a crisis?
Here, stakeholders and publics are knowingly placed at risk or harm.
What is the best strategy to use when “Transgression” is the reason for a crisis?
Acceptance strategy.
What does “Terrorism” mean when talking about a crisis?
This was designed to harm the organisation directly or indirectly.
What is the best strategy to use when “Terrorism” is the reason for a crisis?
Suffering strategy.
Why are media relations important?
News media are important as channels for generating publicity and their coverage of business may influence many important stakeholders.
What does “Media Logic” mean?
Media logic = news routines within a media organisation may also reflect a certain ideology or political orientation that is shared by journalists and editors.
What are the two levels of agenda-setting?
- Relates to the objects of news coverage
- political candidates, nation states, organisations.
- focus on: does this organisation come to mind when a particular issue is being discussed. - The media can influence how people think by placing emphasis on certain situations and ignoring others.
- focus on: not only whether people think about this topic, but also how they do so in terms of certain associations or judgements.
How is a corporate reputation formed?
Through multiple interactions of individuals with an organisation, and not only or even primarily through media coverage.
What does “Media-Favourability” mean?
It is the second level of agenda setting, where the media does not only report facts but also neutral observations.
What is “Agenda-Building”?
Discussions and debates amongst multiple groups.
What is the “Framing Theory”?
The theory is used to understand and investigate communication and related behaviours in a wide range of disciplines.
It focusses on how messages are created in such a way that they connect with the underlying psychological processes of how people digest information and make judgements.
This is important because it helps shape the perspectives through which people see the world.
What is the “Corporate frame”?
A corporate decision, issue or event is framed in a way that is promotes the company.
What is news framing?
News is selectively portrayed by the media in an effort to explain news to a broader audience.