CORPORATE COMMUNICATION Session 1 By : Liya Djajadisastra

PERSONAL INTRODUCTION Liya Djajadisastra liya.djajadisastra@gmail.com Lives in Jakarta Selatan Graduated from UNPAD Law School (Master of International Law and Master of Business Law), trained in Marketing & PR in Jakarta, UK, Switzerland, US, Singapore. Experience : Managing Director, FORTUNE PR (1991-2005), Sales & Marketing Manager, PR Manager, Hotel Mutiara Panghegar Riau (1989-1991), OTC Marketing Manager, Sandoz Indonesia & Roche Indonesia (1978-1989) Work : Technical Advisor FORTUNE PR (2010-now), Lecturer in Post Graduate Program of London School of PR, Jakarta

NEXT REQUEST Please fill in Students List (name, email address) for contact purposes. Please subscribe to : corporateundersorecommunderscoreUMN2011 @yahoogroups.com Please listen to the KONTRAK PERKULIAHAN sheet and read carefully on the yahoogroups site above. Follow the instruction there. Please introduce yourself orally

CORPORATE COMMUNICATION Until 1970 practitioners used the term ‘Public Relations’ for communication with stakeholders ; this was mainly tactical When other stakeholders demand more information, the new function of corporate communication started to get hold Comprise of wide range of specialized disciplines such as corp. design, corp. advertising, internal comm., investor relations, etc.

CORPORATE COMMUNICATION AN INTEGRATED FRAMEWORK Public Affairs Issues Management Investor Relations Media Relations NGO Relations Corporate Social Responsibility Internal Communication Community Relations Publicity/ Sponsorship Key Opinion Former Relations

CHANGES THAT AFFECT HOW A CORPORATION COMMUNICATES HISTORICAL PERSPECTIVES PUBLICITY SEEKING INFORMATION DISSEMINATION RELATIONSHIP MANAGEMENT ORGANIZATIONAL POSITIONING 21ST CENTURY 1900 1980/1990 1930/1940 1960/1970 2000 - …..

CHANGES THAT AFFECT HOW A CORPORATION COMMUNICATES Growth of big institutions Heightened public awareness and media sophistication Increasing incidence of societal change, conflict and confrontation Globalization and the growing power of global media, public opinion and democratic capitalism Dominance of the Internet and growth of social media

4 models of PR The Press Agentry Model Press agents worked to influence public opinion by creating news. Press agents were liars — at least some of the time — but it got their clients into the headlines, and that’s what mattered.

4 models of PR The Public Information Model One-way communication is the focus of the public information model. Press releases, brochures, even static Web content, are tools used by these information dispensers. They tell the story and hope someone is paying attention

4 models of PR The 2-way asymmetrical model. The post World War II rise in consumer products created a need for targeted, scientific marketing. PR played a role. Under the 2-way asymmetrical model, practitioners used research to get inside the heads of consumers and to help fashion the sell messages. Grunig and Hunt called it “scientific persuasion,”

4 models of PR The 2-way symmetrical model Uses communication to negotiate with publics, resolve conflict, and promote mutual understanding and respect between the organization and its public(s).

Dominance of the internet and growth of social media 8-year-old Harry Winsor (son of John Winsor, CEO of the ad agency Victors & Spoils), decided to send Boeing one of his concept designs for a new plane, done in crayon. Boeing in turn responded as any giant company would, with a standard form letter which basically stated, "thanks for the letter, we liked it so much we put it in the trash”. Harry's father didn't appreciate the response his son received and posted his reaction to Boeing's letter on his blog. His post received a lot of traffic and quite quickly caught the attention of Boeing who realized they were on the verge of a PR nightmare. Boeing acted quickly and the story ended happily for young Harry who was invited to tour Boeings facilities. ‘Future of Flight’ invited Harry to Seattle, and offered to host "Harry Winsor Design Your Own Airplane Show." Museum of Flight also offered Harry a free tour. What should Boeing take away from this incident? Your thoughts?

Dominance of the internet and growth of social media

KEY CONCEPTS IN CORPORATE COMMUNICATION Mission = Overriding purpose in line with the value of expectations of shareholders = Maksud utama (keberadaan korporasi) yang sejalan dengan harapan para pemangku kepentingan Vision = External future state; the aspiration of the organization = Suatu keadaan di masa depan (yang akan dicapai), aspirasi dari organisasi tersebut. Corporate objectives and goals = Precise statement of aims and purposes = Pernyataan tegas tentang tujuan dan sasaran korporasi Strategies : The ways or means of which the corporate objectives are to be achieved and put into effect = Cara atau sarana untuk mencapai tujuan dan pelaksanaannya

KEY CONCEPTS IN CORPORATE COMMUNICATION Corporate Identity = The profile and values communicated by an organization = Profil dan nilai2 yang dikomunikasikan oleh sebuah organisasi Corporate image = The immediate set of associations of an individual in response to one or more signals or messages from or about an organization at a single point in time = Anggapan langsung yang dirasakan sesorang ketika merespon satu atau beberapa sinyal tentang sebuah citra organisasi Corporate reputation = An individual’s collective representation of past images of an organization (induced through either communication or past experience) established over time = Gambaran citra sebuah organisasi di masa lalu yang dirasakan sesorang ketika terpicu oleh komunikasi ataupun pengalaman yang terbentuk bersama waktu

KEY CONCEPTS IN CORPORATE COMMUNICATION Stakeholders = Any group or individual who can affect or is affected by the achievement of the organization’s objectives = Orang atau sekumpulan orang yang dapat memberi dampak ataupun terdampak oleh aksi sebuah organisasi Public = People who mobilize themselves against the organization on the basis of some common issue or concern to them = Orang-orang yang memobilisasi dirinya menentang sebuah organisasi dengan berbasis kepentingan atau hal yang sama Market = A defined group for whom a product is or may be in demand (and for whom an organization creates and maintains products and service offerings) = Sekumpulan orang yang mempunyai suatu kebutuhan akan produk tertentu dan menjadi sasaran organisasi tersebut ketika menciptakan produk atau jasanya.

KEY CONCEPTS IN CORPORATE COMMUNICATION Issue = An unsettled matter (which is ready for a decision) or a point of conflict between an organization and one or more publics = Sebuah masalah yang belum tuntas digarap atau sebuah konflik antara organisasi dengan publiknya Communication = The tactics and media that are used to communicate with internal and external groups = Taktik dan media yang digunakan untuk berkomunikasi dengan sasaran internal ataupun eksternal Integration = The act of coordinating all communication so that the corporate identity is effectively and consistently communicated to internal and external groups = Upaya mengkoordinasikan semua komunikasi sehingga identitas korporasi dapat dengan efektif dan konsisten dikomnikasikan ke sasaran internal dan eksternal

SCOPE OF CORPORATE COMMUNICATION Stakeholders management Corporate Identity Corporate Reputation

INPUT OUTPUT MODEL SUPPLIERS INVESTORS CUSTOMERS ORGANIZATION EMPLOYEES SUPPLIERS INVESTORS

STRATEGIC MANAGEMENT OF STAKEHOLDERS ORGANIZATION CUSTOMERS EMPLOYEES SUPPLIERS INVESTORS GOVERNMENT POLITICAL GROUPS TRADE ASSOCIATIONS COMMUNITIES

STAKEHOLDERS Customers Employees Distributors Suppliers Shareholders CONTRACTUAL COMMUNITY Customers Employees Distributors Suppliers Shareholders Lenders Consumers Regulators Government Media Local communities Pressure groups

STAKEHOLDER SALIENCE MODEL Definitive Definitive

CORPORATION- STAKEHOLDER COMMUNICATION MODELS ONE-WAY SYMMETRICAL MODEL TWO-WAY ASYMMETRICAL TWO-WAY SYMMETRICAL Informational Strategy Persuasive Dialogue

STAKEHOLDER COMMUNICATION Stakeholders effect Awareness ---- Understanding - Involvement -- Commitment Tactics Newsletters Reports Memos Free Publicity Discussions Meetings Advertising and Educational Campaign Consultation Debate Early incorporation Collective problem solving Type of Strategy Informational Strategy Informational/ Persuasive Strategy Dialogue strategy

EXERCISE Please identify this company’s : Publics Objective of Corporate communications The outcome of its Corporate Communications

CONCLUSION Corporate Communication Why Corporate Communication Stakeholders Stakeholders Management

HOMEWORK : CORPORATE FUNCTION Argenti, Paul A. Corporate Communication, McGraw Hill, Singapore 2009 Cornelissen, Joep Corporate Communication, SAGE Publications, Singapore 2008

THANK YOU