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PERSPEKTIF
Available online http://ojs.uma.ac.id/index.php/perspektif
Analysis of Corporate Communication Strategies in Enhancing Company Image
Feldiansyah
Master of Media and Communication Program, Faculty of Social and Political Sciences, Universitas Airlangga, Indonesia
Submitted: 20, October 2023; Reviewed: 14, January 2024; Accepted: 19, January 2024
Abstract
This research has the main objective to investigate how PT. XYZ utilizes social media as a means to improve its corporate image. This research adopts a descriptive qualitative approach with an in-depth focus on PT XYZ. We analyzed the various communication strategies they implemented, including the application of P.E.N.C.I.L.S and RPAE theories, as well as conducted a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats faced by the company. In addition, we also conducted surveys and interviews with the corporate communication department. The results revealed that PT XYZ succeeded in building a positive image by implementing an effective corporate communication strategy. This strategy includes Corporate Social Responsibility (CSR) activities, quality service, social and environmental responsibility, and attention to safety. In addition, we found that PT XYZ is also active in customer acquisition (CA) strategies on social media platforms, such as Twitter, regardless of the company's reputation. Information strategies are used more often than response and engagement. However, some experts argue that engagement may be more effective in achieving CSR goals. In addition, CSR communication is more focused on the outcomes produced by CSR actions rather than the concrete ways such actions are taken, in line with consumer interests and expectations. In conclusion, this study provides important insights into PT XYZ's successful corporate communication strategies in building its positive image through social media. These discoveries can serve as a helpful roadmap for other companies seeking to enhance their corporate communication strategies in social media. Therefore, this study holds the promise of making a beneficial impact on advancing corporate communication practices in the ever-expanding digital era.
Keywords: Corporate Communication Strategy; Corporate Image; Corporate Social Responsibility.
How to Cite: Feldiansyah. (2024). Analysis of Corporate Communication Strategies in Enhancing Company Image.
PERSPEKTIF, 13 (1): 106-114
*Corresponding author:
E-mail: [email protected]
ISSN 2549-1660 (Print) ISSN 2550-1305 (Online)
INTRODUCTION
Business ethics centers around the way a company makes decisions. Corporate ethics serves as the fundamental basis for effective reputation management. The key to effective communication in any organization lies not only in the message itself but also in the way it is expressed. Keeping a close eye on the CEO's public messages is essential to ensure a positive image is projected to stakeholders. Consumers and stakeholders will take notice of leaders who can adapt their voice, language, and style to match the situation, content, and corporate style. How individuals react to circumstances and portray themselves can exert a substantial influence (Amernic & Craig, 2007). Besides, digital media enables companies to explore different possibilities in narrating their stories.
This media acts as a catalyst to create and influence both external and internal stakeholders (Prasad, 2011).
By engaging in meaningful conversations with stakeholders, the CEO helps build a comprehensive narrative that showcases the company's journey. This acts as a tool to communicate the strategic position within society and the market. The significance of the CEO's role as the representative of the company cannot be emphasized enough, as demonstrated by the Salesforce.com case (Learmonth, 2006). Leaders practice communication as the essence of the corporate communication process, rather than considering it as a mere tool (Saputra, 2021).
Leaders are the ones who set the direction for the corporate culture. They always have their eyes on the future, giving it purpose and meaning. They constantly strive for innovation and never fail to inspire everyone involved.
According to a global study by Weber Shandwick, a positive corporate image is ingrained in consumers' minds (Shandwick, 2017). Two-thirds of the consumers surveyed pay close attention to CEOs and make judgments about the company's trustworthiness and credibility. Studies reveal that the shifting consumer interests and perceptions of CEOs have a direct influence on their buying patterns. Additionally, the standing of leaders plays a crucial role in the eyes of senior management as well as frontline staff (Shandwick, 2017). Top leaders must make decisions that direct the company toward achieving its mission and vision.
Communication by corporate leaders plays a vital role not only globally but also specifically in emerging markets. Consumers in China, India, and Brazil heavily lean on executive communication to gain insights into a company, and there is a notable emphasis on brands and thoughtful purchasing among consumers in emerging markets. Projections suggest that by 2025, more than half of the world's population will be part of emerging markets, with an anticipated expenditure of around 30 trillion (Sheth, 2011).
The brand culture should be in tune with the specific needs and desires of consumers when it comes to their consumption habits.
Once individuals form a psychological bond with a brand and its culture, it's only a matter of time before they become loyal customers. Many experts believe that emotional branding plays a crucial role in establishing a deep connection between a brand and its audience. Feelings of engagement, satisfaction, and delight create attachment and subsequent customer loyalty (Brakus et al., 2009). People in developing economies have readily accepted fresh concepts and adaptations in their cultural surroundings. These customers aim to buy branded items, yet the difficulty lies in establishing a brand culture, fostering brand loyalty, and promoting sustainable consumption (Yang, 2010). Building brand loyalty in today's diverse cultural landscape demands the ability to adapt and segment effectively.
Organizational identity is the unique characteristics, values, and beliefs that define an organization and differentiate it from others.
It motivates and guides stakeholders, including employees, consumers, and investors. It provides employees with a sense of purpose and direction, leading to increased motivation and productivity. It influences consumers by creating a strong brand image and reputation, leading to increased loyalty and positive recommendations. It attracts and guides investors by signaling stability and a clear strategic direction. However, if an organization's identity becomes too rigid, it can hinder market identification and brand loyalty (Amernic & Craig, 2007).
Internal company communication is a function of internal branding aimed at aligning the corporate identity with employee perceptions and identification (Vallaster & De
Chernatony, 2006). As stated by O’Sullivan, effective communication can build emotional relationships with employees (Balmer, 2017).
Emotional responses in connection with employees who communicate the corporate identity are referred to as the corporate image (Kuppelwieser et al., 2011). While Forbes highlights the significance of companies implementing internal communication methods such as newsletters, companies need to acknowledge that they express their identity through different channels apart from tailored corporate communication efforts (Gray &
Balmer, 1998).
The reputation and mental perception of a company, known as the corporate image, also contribute to its corporate identity (Balmer &
Gray, 2003). Hence, pride in a brand can also be affected by the emotional connections that employees have, which are built on the unspoken messages conveyed through the company's identity, as seen through its image and reputation. By recognizing the elements that contribute to brand pride, companies can gain valuable insights into building emotional connections. This understanding enables them to effectively influence changes and nurture stronger relationships with their employees, who hold direct value for the company. The relationship between proud employees and positive employee behavior, satisfaction, creativity, and commitment to customer service has been identified in marketing and organizational research over the past 20 years (Arnett et al., 2002; Gouthier & Rhein, 2011;
Katzenbach, 2003).
The primary focus of this investigation is to assess how effective communication strategies contribute to improving a company's public perception. When it comes to managing corporate reputation, business ethics and effective communication are essential. These elements greatly influence how a company is viewed and regarded by others. Through an understanding and evaluation of corporate communication strategies, including the CEO's public communication, and their impact on stakeholder perceptions, this research aims to detail how leadership communication and brand culture contribute to a company's image.
The research also aims to understand how internal company communication, corporate identity, and company reputation affect employees and their impact on employee
behavior, satisfaction, creativity, and commitment to customer service. Additionally, the research will identify the factors influencing brand pride and the emotional relationships employees have with the company, with a focus on consumers in emerging markets. Thus, the research aims to provide deeper insights into how corporate communication affects a company's image, employees, and consumers, especially in the context of rapidly developing emerging markets.
RESEARCH METHODS
In this study, the researcher will use a qualitative descriptive methodology to deeply understand PT. XYZ. This approach allows for a comprehensive examination of the company through a detailed case study. The researcher aims to provide a rich analysis of PT. XYZ's operations, strategies, and performance.
The study will explore the implementation of P.E.N.C.I.L.S theory, which focuses on elements contributing to a company's success. By examining how PT. XYZ incorporates these elements, the researcher aims to identify strengths and areas for improvement.
The study will also incorporate the RPAE theories, providing a framework for effective decision-making and problem-solving. By applying these theories to PT. XYZ, the researcher aims to assess the company's research, planning, action, and evaluation processes.
A SWOT analysis will be used to identify PT. XYZ's strengths, weaknesses, opportunities, and threats. This analysis will provide insights into internal and external factors impacting the company's performance.
The study will also explore strategies to enhance PT. XYZ's image and reputation, as these factors significantly impact success. By examining how PT. XYZ implements these concepts, the researcher can understand the specific tactics they employ and measure the extent of their success in achieving communication objectives on social media.
Additionally, the researcher will conduct surveys and interviews with corporate communication departments from various companies. This will provide a broader perspective on the approaches and practices commonly used in the social media communication industry. With this
understanding, the researcher can make comparisons between different companies and identify common trends that may exist in the industry. Finally, the researcher will conduct an in-depth literature analysis to provide a stronger theoretical context. Through a comparison of the researcher's findings with prior research on corporate communication strategies on social media and CSR strategies, a deeper understanding can be gained about how PT. XYZ's practices fit into the broader context of academic and corporate communication practices. Through this approach, the researcher seeks to uncover a more comprehensive understanding of how PT. XYZ manages to create a positive image and reputation on various social media platforms.
RESULTS AND DISCUSSION
Corporate Communication Strategies in Social Media
Contingency planning, or the situational approach, is a leadership model that is contingent on the situation and conditions. This effective leadership model was developed by Fiedler. According to Fiedler, contingency planning is influenced by a leader within the group. If a group aligns with the leader's style, communication within that group can proceed according to the leader's plan or effectively (Chemers & Fiedler, 1974).
From the data presentation explanation, it can be observed that the corporate communication department of PT. XYZ, through its public relations division, has implemented the P.E.N.C.I.L.S strategy theory developed by Thomas L. Harris and Patricia T. Whalen (Publications, Event, News, Community Involvement, Inform or Image, Lobbying and Negotiation, Social Responsibility). The P.E.N.C.I.L.S theory has been elucidated by the researcher in the theoretical perspective section (Harris & Whalen, 2006).
According to Cutlip and Center, RPAE (Research-listening, Planning-decision, Action- Communication, Evaluation) are the fundamental steps in public relations to execute their work programs (Cutlip, 1962). The stages are as follows:
a. Research-listening: In the initial stage, efforts are made to identify the problems within the organization, "what is our problem."
b. Planning-decision: After identifying the problems, this stage involves conveying attitudes, opinions, ideas, and reactions related to policy decisions, "Here is what we can do."
c. Action-communication: In this stage, efforts are made to explain information about the steps that will be taken, making it effective in influencing the intended audience, "Here is what we did and why."
d. Evaluation: In this stage, the public relations division assesses the results of the work program, "How did we do?"
In the data presentation, Mr. Panuju mentioned SWOT analysis in designing activities. This is done to review the strengths (S), weaknesses (W), opportunities (O), and threats (T) of the company. According to Pearce and Robinson, SWOT (Strength, Weakness, Opportunity, and Threat) is aimed at analyzing and identifying the objects to be studied.
Strength and weakness are grouped as internal factors, while opportunity and threat are categorized as external factors (Pearce &
Robinson, 2008).
After analyzing the research findings presented above, and based on the researcher's observations, it is evident that the corporate communication department has implemented strategies to foster a positive company image.
This is achieved through two key indicators:
a. Personality: Public trust in PT. XYZ stems from its strong reputation. In this context, PT. XYZ consistently engages in social and environmental responsibility activities to maintain a positive company image.
b. Identity: The goal is to make the public easily recognize the company. PT. XYZ implements corporate image building through various means, including organizing events, documenting them, publishing, and evaluating them.
In addition to achieving a positive image, PT. XYZ has also earned a positive reputation.
This conclusion is drawn from three specific indicators:
a. Service Quality: PT. XYZ garners satisfaction from both customers and the public. This is attributed to the warm welcome and informative engagement provided by the corporate communication department whenever someone visits the company, be it a customer or a member of the public.
b. Social and Environmental Responsibility:
PT. XYZ has succeeded in gaining the trust of the community. This is substantiated by the numerous collaborations maintained by the corporate communication department with various parties and communities through social and environmental responsibility programs.
c. Safety: A reputable company prioritizes and maintains a high level of safety.
PT. XYZ has been honored with several awards, including the "Zero Accident Award"
from the Minister of Manpower of the Republic of Indonesia in 2020, the "Best Safety Induction Award" from the Minister of Manpower of the Republic of Indonesia in 2021, and others.
Following the identification of the strategies employed by PT. XYZ's corporate communication department to build the company's image and reputation, the researcher has reached several research findings.
From the model that has been discovered, it is evident that the communication strategy of PT. XYZ's corporate communication department revolves around the use of contingency or situational planning to anticipate and respond to circumstances as instructed by the VP of corporate communication. To plan activities related to public relations, the department employs the P.E.N.C.I.L.S (Publications, Events, News, Community Involvement, Inform or Image, Lobbying and negotiation, Social Responsibility) and RPAE (Research-listening, Planning-decision, Action-communication, Evaluation) theories. An in-depth SWOT (Strength, Weakness, Opportunity, and Threat) analysis is required for activities planned by the Social and Environmental Responsibility division. These strategies aim to build the company's image, with the long-term goal of PT.
XYZ gaining a positive reputation in society, among customers, and stakeholders.
In prior research on corporate communication strategies on Facebook (Kim &
Rader, 2010), customer acquisition (CA) strategies emerged as the dominant corporate communication strategy used on Twitter, regardless of whether a company had a positive or negative reputation. Based on the statistics, it appears that a company's reputation doesn't play a major role in determining how they employ corporate communication strategies.
Regardless of whether a company has a good or bad reputation, they typically lean towards using more CA strategies on Twitter.
Furthermore, when examining distinct indicators for each strategy in both company groups, the primary factors determining a company's competitive advantage strategy on Twitter were its specialization in delivering excellent products or services and its strong market orientation. These findings align with the research of Kim & and Rader (2010) regarding Facebook.
With numerous media channels available to companies today for message delivery, it is logical to employ different approaches tailored to the unique characteristics of each channel to ensure effective message conveyance (Kim &
Rader, 2010). Companies should strive to maintain a "consistent corporate-level strategy" across various platforms to shape public perceptions of their CA and CSR associations. Although Biehal & and Sheinin (2007) found that Fortune companies did not consistently employ corporate-level communication strategies on websites and social networking sites, this research indicates that these companies at least maintain consistency on social networking sites.
In a broader sense, the dominance of CA strategies on Twitter can be connected to how people perceive a company's online presence and the special attributes of this social media platform. Most people who follow a company's social media account seek deals or recommendations related to products or services (Beauchamp, 2013). Additionally, due to Twitter's 140-character limit, companies can easily use hyperlinks to direct people to specific product or service landing pages. As a result, it is expected that the public will have access to a plethora of information concerning CA through social media platforms. This information will include details about customer service, promotions for their products or services, and insights into the company's market orientation.
Companies that have a bad reputation get more attention and shares on Twitter than companies with a good reputation. This means that tweets from companies with a negative reputation get more likes and retweets per post compared to tweets from companies with a positive reputation. These findings indicate that the level of engagement from stakeholders is not always linked to a company's reputation.
Simply looking at likes, replies, and retweets is not enough to understand how the public feels about a company.
CSR Communication Strategies
Morsing & and Schultz (2006) formulated their corporate social responsibility (CSR) communication tactics by drawing upon four distinct public relations frameworks. They defined three distinct CSR communication strategies to illustrate the variations in company-stakeholder relationships (Grunig &
Hunt, 1984). After operationalizing these three CSR communication strategies, this research found that both corporate groups primarily use the informational strategy. Despite expert opinions suggesting that employing responsive engagement strategies can lead to higher stakeholder engagement, organizations often fail to utilize these strategies effectively in nurturing their CSR messages.
Previous research on dialogic communication on social networking sites discussed the underutilization of two-way communication on these platforms (Bortree &
Seltzer, 2009). Scholars found that, unless the public is engaged through dialogic functions on social media, practitioners generally use Twitter as a one-way communication tool (Waters & Jamal, 2011). A similar pattern is observed in CSR message delivery.
This research also discovered that organizations tend to employ the informational approach to communicate their engagement in corporate social responsibility (CSR) initiatives.
For instance, a tweet could simply provide the public with information regarding the company's efforts in disaster relief, even though their corporate social responsibility initiatives for disaster relief encompass both employees and the community. These posts utilize the informative approach to convey their accomplishments to the general public.
Nevertheless, the communication might garner increased public interest due to the participation of numerous stakeholders in these offline endeavors.
Furthermore, the reason experts suggest that companies use more responsive engagement strategies is that they believe these communication strategies can lead to higher stakeholder engagement, helping companies establish mutually beneficial relationships with their stakeholders (Morsing & Schultz, 2006).
CSR communication on social media is becoming increasingly important (Du et al., 2010). This fact becomes apparent when considering that CSR accounts for twenty percent of all Facebook communication among the energy companies participating in this study. Nevertheless, one of the companies has released a considerably lower number of CSR communications in comparison to the other two, thereby ensuring that the entirety of CSR communication from energy companies can be attributed. As mentioned in the previous chapter, Eneco and Nuon both emphasize sustainability as a key aspect of their core strategy, which can be found on their respective websites. In contrast, Essent does not prioritize sustainability as part of its core strategy, which may explain why they have less CSR communication compared to the other two companies. However, Essent does provide extensive information about CSR and sustainability on its website. They offer even more information about CSR compared to Eneco and Nuon. This may seem contradictory considering that Essent only publishes a small amount of CSR communication on Facebook. It is possible that Essent has not integrated Facebook into its CSR communication strategy and instead views its website as a more suitable platform for CSR communication. However, this is just one possible explanation among many.
Based on the analysis of the messages, it is evident that Dutch energy companies have incorporated CSR into their online communication strategy.
CSR communication is typically conveyed through occasional press releases (Du et al., 2010). It is not surprising that the primary message type in CSR communication on Facebook is PR messages. This suggests that companies are still sticking to the traditional communication format even though CSR communication has shifted to social media. The fact that news is the second most commonly used form of CSR communication on Facebook is also not too surprising, as it aligns with the traditional corporate communication format.
However, due to Facebook's focus on short, concise messaging, it makes sense that these more traditional corporate communication formats are redirected to social media, where links to other websites can provide more detailed information. This pattern is observed for both types of messages. Based on these
findings, it can tentatively be concluded that despite the move of CSR communication to online platforms like social media, the essence of CSR communication remains unchanged, as reflected in the most frequently communicated message types.
The fact mentioned by (Du et al., 2010) that most companies now prioritize CSR communication, compared to the occasional release of CSR strategy reports, is unsurprising.
CSR communication is now released more frequently, with eighty-one messages containing CSR communication from energy companies within ten months. According to (McWilliams & Siegel, 2001), engagement in CSR provides companies with a competitive advantage, as it helps build consumer trust.
However, with the widespread adoption of CSR strategies and the routine publication of CSR communication by all energy companies, this competitive edge seems to have lost its impact.
The fact that all three companies have embraced CSR and consistently share CSR updates indicates the immense importance of CSR in corporate communication. It becomes imperative to consistently inform consumers about CSR initiatives. Nevertheless, the lower consumer response rate to CSR communication seems to challenge this notion, which will be explored in more detail later on.
The reason behind this phenomenon is that CSR strategies and communication are primarily tailored to serve the interests of the company, rather than fostering genuine societal transformation. This elucidates the prevalence of sustainability and environmental concerns as the most commonly addressed CSR themes in my research findings. To ensure sufficient energy reserves for the future, it becomes imperative to adopt sustainable strategies.
Additionally, consumers increasingly value sustainability nowadays (Haanpää, 2007).
Hence, it is advantageous for energy corporations to enhance their sustainability and embrace sustainable corporate social responsibility (CSR) approaches. This also provides a rational basis for energy companies to participate in CSR initiatives. A comparable scenario arises with eco-friendly marketing;
hence, it will not be addressed individually within this discourse.
Consumers are often very skeptical of CSR communication when the benefits of CSR efforts to the company are unclear (Du et al.,
2010; Pomering et al., 2013). It is evident why energy corporations allocate resources towards sustainability initiatives, aiming to diminish the probability of consumers harboring skepticism towards their corporate social responsibility endeavors. Reducing skepticism leads to more successful CSR communication. Du et al. (2010) argue that most consumers are interested in the results of CSR actions and not particularly interested in how those results are achieved. The results of CSR efforts are the only things consumers can check; checking which steps were taken to achieve these results is much more difficult (Pomering et al., 2013). Based on the findings presented in the preceding chapter, it is evident that companies tend to provide explicit details about the outcomes of their corporate social responsibility (CSR) initiatives in only 50% of their CSR communications. Consumers perceive the societal influence of CSR endeavors as an effective means to comprehend a company's underlying intentions, thereby accounting for their significant interest in CSR outcomes.
CONCLUSION
PT. XYZ demonstrates a comprehensive approach to its corporate communication strategies on social media. They incorporate a situational approach, considering the alignment of leadership styles with group characteristics in their communications.
Additionally, they effectively implement the P.E.N.C.I.L.S and RPAE models for program planning and execution, encompassing research, planning, execution, and evaluation stages. The use of SWOT analysis aids in identifying internal and external factors that impact their communication strategies. Their primary focus lies in cultivating a positive company image through social and environmental responsibility, as well as a robust corporate identity. Furthermore, PT.
XYZ has successfully built a positive reputation through its commitment to service quality, social and environmental responsibility, and a commitment to high-security standards.
Moreover, in their social media communications, PT. XYZ strategically employs customer acquisition (CA) strategies, a practice common among companies with either positive or negative reputations on Twitter. They also have a CSR communication strategy with a
strong emphasis on sustainability and environmental concerns, actively striving to enhance stakeholder engagement. Their recognition of social change as a significant factor in CSR communications is evident, emphasizing the outcomes and social impact of CSR initiatives as indicators of their corporate motives. In summary, PT. XYZ has undertaken robust and effective measures to create a positive company image, reputation, and CSR communications on social media platforms.
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