Sunday, November 14, 2010
Chapter 8: Investor Relations
Investor relations affected my summer job extremely, it caused people to quit and/or get fired. Investor's started losing interest with all of the money and downfall of the recession the past year. The enviroment that the business was in wasn't affected a lot but it was enough to have a "ripple" affect on some of the businesses. My job basically recieved it's money from investors and state grants. With the economy in a downfall grants weren't being distributed and investors were pulling their money out of the company. Four supervisors quit and the business was just in a "slump." The business just started getting back on track this past year after the economic recession. The company found new investors and is really doing great.
Thursday, November 11, 2010
Ch.8 Investor Relations (IR)
Investor Relations (IR)has become an essential and indispensible arm for any company that is trying to raise capital in order to sustain its operations and maintain profitability in the extremely competitive website. No longer are the days when investors had to hold on the phone line or wait for a letter in the mail in order to get hold of or obtain a reply from an IR representative to get the information on their stock holding. With the increase in usage and innovation in the communications tools, investors are looking to get instantaneous information from companies in order to maintain their holdings or just spin them off their portfolios at the slightest change in their performance. Moreover, with the current economic crisis firms have to constantly communicate and engage their investors in order to get their attention and get their much needed financial support. Companies are realizing the importance of reaching out to investors and are making every effort to get their attention by using the latest platforms of engagement such as blogs, website, email lists, and other social network sites like Facebook, Twitter etc. which have gained such immense popularity that companies have started maintaining a dedicated team to actually update contents and reply to blogposts within minimum timeframe. This also affirms among the investors; a trust that the company is speaking to them just like a real person.
Another key tool used by companies is the increased use of webcasts, which record the actual meeting between the management, analysts, investors and stockholders and is uploaded on the company’s website so as to provide the latest buzz about the company from the CEO or Chairman (i.e. right from the horse’s mouth.)
One of the examples of corporations making their detailed financial information available to existing and potential investors is Goldman Sachs, a global investment banking and securities firm which engages in investment banking, securities, investment management, and other financial services.
It has a detailed and updated information about its financials including the 10-Ks and the 10-Qs and their filings with the Securities and Exchanges Commission (SEC) from time to time highlighting its transparency of its funds and its operations. This has helped Goldman Sachs immensely in maintaining its stock price steady even when some other firms within the same industry are struggling for much needed funds from the open markets.
Its investor information is accessible at: http://www2.goldmansachs.com/our-firm/investors/index.html
Another key tool used by companies is the increased use of webcasts, which record the actual meeting between the management, analysts, investors and stockholders and is uploaded on the company’s website so as to provide the latest buzz about the company from the CEO or Chairman (i.e. right from the horse’s mouth.)
One of the examples of corporations making their detailed financial information available to existing and potential investors is Goldman Sachs, a global investment banking and securities firm which engages in investment banking, securities, investment management, and other financial services.
It has a detailed and updated information about its financials including the 10-Ks and the 10-Qs and their filings with the Securities and Exchanges Commission (SEC) from time to time highlighting its transparency of its funds and its operations. This has helped Goldman Sachs immensely in maintaining its stock price steady even when some other firms within the same industry are struggling for much needed funds from the open markets.
Its investor information is accessible at: http://www2.goldmansachs.com/our-firm/investors/index.html
Sunday, November 7, 2010
Chapter 8: Investor Relations - Ryan Kirsch
My previous company had corporate personnel responsible for investor relations (IR); however information was rarely, if ever, provided to staff employees. As far as I could tell, there were some employees (i.e. executives, VP’s) who owned shares of the company but essentially the company was owned by a private equity firm. First-hand, I do not know the role our investor relations personnel played in the company, but I would assume their roles were similar in function to those of publicly traded companies.
The following is advice quoted from a blog from Tom “Toronto” Reidt, Title: Potential Roles for PR in a recession, February 1, 2008:
“If your stock is falling, or your business isn’t getting the returns it used to, the investors are going to want some serious reassurance. Investor relations should be a crucial facet of any business in a recession. If your ROI is coming back red, and your company remains silent, investors will be dropping out faster than Rudy Giuliani [referring to the 2008 presidential election]. If you employ some excellent IR, you can maintain their trust and hopefully keep them on board.”
“Productivity and profit are directly linked to how engaged, enabled and happy the employees are. Nothing puts more strain on employee relations than a recession. Potential layoffs, salary increases and bonuses getting the axe, terms like “restructuring” being tossed around, it’s a time of high anxiety for everyone. A good internal communications plan can diffuse the tension, reassure doubts, or at the very least, keep people in the loop about what’s happening.
To read this blog and comments left by others, please use thefollowing link : http://tomtoronto.wordpress.com/2008/02/01/potential-roles-for-pr-in-a-recession/
There are many videos on the web showcasing the global fear and panic investors felt during the recent recession and stock market collapse. If you want to share your experiences or provide a suitable video please leave your comments below. Thank you.
The following is advice quoted from a blog from Tom “Toronto” Reidt, Title: Potential Roles for PR in a recession, February 1, 2008:
“If your stock is falling, or your business isn’t getting the returns it used to, the investors are going to want some serious reassurance. Investor relations should be a crucial facet of any business in a recession. If your ROI is coming back red, and your company remains silent, investors will be dropping out faster than Rudy Giuliani [referring to the 2008 presidential election]. If you employ some excellent IR, you can maintain their trust and hopefully keep them on board.”
“Productivity and profit are directly linked to how engaged, enabled and happy the employees are. Nothing puts more strain on employee relations than a recession. Potential layoffs, salary increases and bonuses getting the axe, terms like “restructuring” being tossed around, it’s a time of high anxiety for everyone. A good internal communications plan can diffuse the tension, reassure doubts, or at the very least, keep people in the loop about what’s happening.
To read this blog and comments left by others, please use thefollowing link : http://tomtoronto.wordpress.com/2008/02/01/potential-roles-for-pr-in-a-recession/
There are many videos on the web showcasing the global fear and panic investors felt during the recent recession and stock market collapse. If you want to share your experiences or provide a suitable video please leave your comments below. Thank you.
Chapter 8: Investor Relations - Cynthia Wolfel
At first I thought relating the impact of investor relations (IR) to my current work environment would be difficult; conversely, after a little more contemplation the realization that it was very pertinent occurred. I am presently not working in a business environment, per say. I am attending IUP as fulltime graduate student with an assistantship and work study position that are state and federally funded. Investment has affected school budgets, since there has been a lack of return on funds previously endowed. I personally have watched my 401K take a nose dive, but it was a company contribution plan; so, I was not terribly upset by the loss. There is a renewed sense of fear in investments for many individuals since the ‘recession’.
Additionally, since I am obtaining my K-12 BCIT PA teaching certification, my possible future retirement plan is being changed as you read. See the following site for some background information: http://www.pittsburghlive.com/x/pittsburghtrib/s_623405.html
There are several issues surrounding teacher retirement funding and many teachers that leave positions are not being replaced. Both of these issues will definitely affect my future. These sites also contain relevant information:
http://www.psea.org/general.aspx?id=2626
http://www.caldercenter.org/PDF/1001071_Teacher_Pensions.pdf
There are funding issues for both the University of Pittsburgh and IUP due to the recession and lack of investment revenue. Part of the reason I am at IUP is that companies are not providing workforce development due to budget cuts, which was a good portion of my previous teaching. The recession seems to have sent more people back to post secondary school. Corporations are not the only ones competing for investment dollars. Post secondary education is a business that focuses on enrollment numbers and utilizes advertising to increase those numbers. Many of the same strategies used for corporate investment are used to increase enrollment, such as a clear vision and mission, which have been revised in the past few years by many institutions.
http://www.iup.edu/upper.aspx?id=2065
http://www.ir.pitt.edu/factbook/fbweb05/general/MISSION.PDF
There have been logo, motto and mission statement changes made so post secondary schools can appeal to the current market. Board meetings are held to ensure expectations are appropriate for future expansion plans and monetary funding. Volatility is reduced by trying to predict and appeal to constituencies, such as: investors, alumni, parents and students. Like a business many constituencies must be placated and investors can be grouped to address their particular concerns. Student retention rates are a major center of attention due to continued enrollment dollars. Since there are numerous investors in post secondary education, it requires the use of diverse communication channels due to age, socioeconomic status and local demographics just to name a few.
Furthermore, proactive planning is necessary to quell the negative publicity that can occur. For example Penn State was negatively impacted for several alcohol related incidents and racial issues in the not so distant past. Virginia Tech. is a true crisis example. It is important for post secondary institutions to have more than just a reaction to adverse media attention to ensure future investment and enrollment. Rating agencies are important intermediary constituencies for post secondary institutions, which can be beneficial or not depending on an achieved ranking. Several ranking listings are available and a few are provided here:
http://www.usatoday.com/news/education/best-value-colleges.htm
http://www.usnews.com/sections/rankings
http://www.4icu.org/topNorth-America/
Globalization has helped to expand the market for post secondary revenue adding an international constituency base; however, there was a global recession. IR is a primary center of attention for post secondary institutions that may spread to secondary schools due to budget restraints and the existence of cyber schools and technology centers – personal choice. Competition for investment funds in the form of students, parents and investors is becoming increasingly more important at the secondary level. An example of positive image advertising for cyber schools in Pennsylvania follows. Please view the advertisement before the video.
Advertisement: http://www.pacyber.org/newsroom/article_results.aspx?ArtID=148
http://www.youtube.com/watch?v=RKQJ8oZpykY&feature=player_embedded#!
Additionally, since I am obtaining my K-12 BCIT PA teaching certification, my possible future retirement plan is being changed as you read. See the following site for some background information: http://www.pittsburghlive.com/x/pittsburghtrib/s_623405.html
There are several issues surrounding teacher retirement funding and many teachers that leave positions are not being replaced. Both of these issues will definitely affect my future. These sites also contain relevant information:
http://www.psea.org/general.aspx?id=2626
http://www.caldercenter.org/PDF/1001071_Teacher_Pensions.pdf
There are funding issues for both the University of Pittsburgh and IUP due to the recession and lack of investment revenue. Part of the reason I am at IUP is that companies are not providing workforce development due to budget cuts, which was a good portion of my previous teaching. The recession seems to have sent more people back to post secondary school. Corporations are not the only ones competing for investment dollars. Post secondary education is a business that focuses on enrollment numbers and utilizes advertising to increase those numbers. Many of the same strategies used for corporate investment are used to increase enrollment, such as a clear vision and mission, which have been revised in the past few years by many institutions.
http://www.iup.edu/upper.aspx?id=2065
http://www.ir.pitt.edu/factbook/fbweb05/general/MISSION.PDF
There have been logo, motto and mission statement changes made so post secondary schools can appeal to the current market. Board meetings are held to ensure expectations are appropriate for future expansion plans and monetary funding. Volatility is reduced by trying to predict and appeal to constituencies, such as: investors, alumni, parents and students. Like a business many constituencies must be placated and investors can be grouped to address their particular concerns. Student retention rates are a major center of attention due to continued enrollment dollars. Since there are numerous investors in post secondary education, it requires the use of diverse communication channels due to age, socioeconomic status and local demographics just to name a few.
Furthermore, proactive planning is necessary to quell the negative publicity that can occur. For example Penn State was negatively impacted for several alcohol related incidents and racial issues in the not so distant past. Virginia Tech. is a true crisis example. It is important for post secondary institutions to have more than just a reaction to adverse media attention to ensure future investment and enrollment. Rating agencies are important intermediary constituencies for post secondary institutions, which can be beneficial or not depending on an achieved ranking. Several ranking listings are available and a few are provided here:
http://www.usatoday.com/news/education/best-value-colleges.htm
http://www.usnews.com/sections/rankings
http://www.4icu.org/topNorth-America/
Globalization has helped to expand the market for post secondary revenue adding an international constituency base; however, there was a global recession. IR is a primary center of attention for post secondary institutions that may spread to secondary schools due to budget restraints and the existence of cyber schools and technology centers – personal choice. Competition for investment funds in the form of students, parents and investors is becoming increasingly more important at the secondary level. An example of positive image advertising for cyber schools in Pennsylvania follows. Please view the advertisement before the video.
Advertisement: http://www.pacyber.org/newsroom/article_results.aspx?ArtID=148
http://www.youtube.com/watch?v=RKQJ8oZpykY&feature=player_embedded#!
Sunday, October 10, 2010
Chapter 6: Media Relations – Ryan Kirsch
I would like to briefly discuss the media blackout associated with the Deepwater Horizon oil spill and the resentment BP and the U.S. Government have faced during this event. The spill occurred on April 20, 2010 and was eventually capped on July 15, 2010. During this time news reports suggest the media was restricted in covering certain aspects of the cleanup effort. The video below is from CCN’s Anderson Cooper explaining some of the restrictions the government and BP had imposed on the media.
The following video from CNN shows some of the wildlife cleanup work in the Gulf and how the National Guard and BP security personnel have refused media access to these efforts. One volunteer explained to CNN (off camera) that he signed a document stating he would not talk to the media. Another rescuer told CNN he would be fired if he spoke up about their activities. A BP contract that was initially used to hire rescue and cleanup workers appears to ban any comments to the media. The contract states “Vessel owners and employees will not make news releases, marketing presentations or any other statements…” A BP spokesman told CNN that the company has not enforced this provision in the agreement. However, CNN reports that the workers they talked to have failed to receive that message.
Certainly the lack of information and restriction has drawn much attention from various BP and government constituents. Some of the questions I have concerning the media blackout are: Why the lack of transparency from BP and the government? How is this going to affect future BP relations with its constituencies? Will there be more or less transparency of information and restriction in future incidents of this type? How will this incident affect potential regulations concerning the disseminating of information and media access?
The following video from CNN shows some of the wildlife cleanup work in the Gulf and how the National Guard and BP security personnel have refused media access to these efforts. One volunteer explained to CNN (off camera) that he signed a document stating he would not talk to the media. Another rescuer told CNN he would be fired if he spoke up about their activities. A BP contract that was initially used to hire rescue and cleanup workers appears to ban any comments to the media. The contract states “Vessel owners and employees will not make news releases, marketing presentations or any other statements…” A BP spokesman told CNN that the company has not enforced this provision in the agreement. However, CNN reports that the workers they talked to have failed to receive that message.
Certainly the lack of information and restriction has drawn much attention from various BP and government constituents. Some of the questions I have concerning the media blackout are: Why the lack of transparency from BP and the government? How is this going to affect future BP relations with its constituencies? Will there be more or less transparency of information and restriction in future incidents of this type? How will this incident affect potential regulations concerning the disseminating of information and media access?
Chapter 6: Media Relations - Cynthia Wolfel
This is a difficult question for me, since most of the companies I have worked for have not had communications departments. I also have never been directly involved in any form of media relations. The closest experience to this, which I have personally witnessed, is with the gas and oil drilling company for whom I previously worked. The company had a pair of people that were supposed to address general issues with the public. They regularly attended meetings, conventions, dinners etc… to represent the company in a positive light. There was not any negative publicity at the time to cause a great deal of concern or to make the company focus more attention on establishing an actual media relations / communications department. Random interviews were done without any real input from a communications professional. This particular company assumed the old view of trying to avoid publicity.
The inner workings of the company were very hush-hush. Employees were told not to divulge information about the company to anyone. The gas and oil industry is a very cut throat business, so employees did not question the do not tell policy. In retrospect the company should have invested in some media research that could have established a connection with a reporter that would spin things in their favor. Shortly before I left the company a television reporter used only certain parts of a conversation with an employee and portrayed the company in a very negative light.
The company then established a very generic website that included a link for constituents to email the company. Unfortunately, this link did not send email to a trained media relations or even a communications professional. A better done website could have provided this company with a sounding board against various media attacks. Other media venues should also have been identified, so appropriate positive contacts would be in place, when and if needed, during media crisis interventions. The company never considered which communications venues might have posed the most benefit or how they compared to others in the industry from a communication’s perspective. In the end the corporate reputation suffered.
The inner workings of the company were very hush-hush. Employees were told not to divulge information about the company to anyone. The gas and oil industry is a very cut throat business, so employees did not question the do not tell policy. In retrospect the company should have invested in some media research that could have established a connection with a reporter that would spin things in their favor. Shortly before I left the company a television reporter used only certain parts of a conversation with an employee and portrayed the company in a very negative light.
The company then established a very generic website that included a link for constituents to email the company. Unfortunately, this link did not send email to a trained media relations or even a communications professional. A better done website could have provided this company with a sounding board against various media attacks. Other media venues should also have been identified, so appropriate positive contacts would be in place, when and if needed, during media crisis interventions. The company never considered which communications venues might have posed the most benefit or how they compared to others in the industry from a communication’s perspective. In the end the corporate reputation suffered.
Ch.6: Media Relations
With the increased scrutiny in the internal workings of corporations among the general public primarily due to their being an intrinsic part of virtually every aspect of an individual's life, it has become essential for the top management to communicate frequently and effectively to its constituents through the existing and emerging media channels of communication.
No longer are the days when companies used to provide goods and services with little or no answerability or accountability about their operations to its customers or the public. The changes have been influenced by various corporate scandals, bankruptcies etc. causing severe financial and emotional losses forcing governments to enforce stringent regulations on companies about publishing the details of their workings from time to time. Also, a key factor in increased public awareness is the increased levels of exposure to various print and electronic media providing a plethora of information. People are beginning to realize the importance of being educated about a company's products or services in order to make informed choices about using them and differentiating them from those offered by competitors.
This has tremendously increased the role of media relations in the overall corporate strategy framework. Companies are beginning to realize the importance of having a robust media relations team equipped with seasoned and outgoing personnel empowered with the latest communication technologies to ensure clear, prompt and speedy flow of communication to the right target constituencies. Also, at the same time encouraging constituencies with user-friendly means to provide feedback and respond positively or negatively to company's decisions and fostering innovation and improvisation in their product and service offerings.
However, due to the immense size of the various constituencies, corporations have to work continuously and communicate seamlessly and effectively with various electronic and print media that provide content for mass consumption in the form of newspapers, documentaries, advertisements, blogs, forums, websites, television shows, videos etc. They also have to rely heavily on these media networks to communicate any important events within the organization or perform damage control in the event of any operational or service failure/s as these networks have immense power to sway public opinion based on their methods and styles of presenting information to various constituencies. This can only be successful if corporations and media networks build long term relationships and work towards understanding each others' roles within the communities and how their interactions with each other decide on the quality of the content being provided to the constituencies served by the corporations. These changing times also require the senior leadership of the companies to take on a more proactive role in communication to the various constituencies rather than a defensive or passive one. It also mandates the need for awareness and adaptability of the latest forms of communication media tools among the top management.
One of the examples that comes to mind for making an effective use of the latest media communications technology is Pepsi. The company's website http://www.pepsi.com/ has been designed to cater to its key constituents, mostly consumers who are in their teens, young adults and adults. It has a very user-friendly interface and makes an effective use of the latest media platforms like Facebook, Twitter, YouTube etc. Pepsi not only provides the updated corporate information through these platforms but also build loyalty and repeat site visits among its constituents. It also allows website users to volunteer and participate in its community activities and interacts with constituencies beyond its immediate customer base. With a youthful feel to its website, it launches and funds various projects in the communities through "Pepsi Refresh Project" (http://www.refresheverything.com/) it serves by letting its website users vote for specific projects which Pepsi can fund to make a meaningful difference. It also encourages user participation by means of website blogs and facilitates discussions over a new product launch, its quality or any corporate news. It also collects data from customers through these channels which helps in providing inputs in the form of market research data at a fractional cost than those of traditional market research sources.
No longer are the days when companies used to provide goods and services with little or no answerability or accountability about their operations to its customers or the public. The changes have been influenced by various corporate scandals, bankruptcies etc. causing severe financial and emotional losses forcing governments to enforce stringent regulations on companies about publishing the details of their workings from time to time. Also, a key factor in increased public awareness is the increased levels of exposure to various print and electronic media providing a plethora of information. People are beginning to realize the importance of being educated about a company's products or services in order to make informed choices about using them and differentiating them from those offered by competitors.
This has tremendously increased the role of media relations in the overall corporate strategy framework. Companies are beginning to realize the importance of having a robust media relations team equipped with seasoned and outgoing personnel empowered with the latest communication technologies to ensure clear, prompt and speedy flow of communication to the right target constituencies. Also, at the same time encouraging constituencies with user-friendly means to provide feedback and respond positively or negatively to company's decisions and fostering innovation and improvisation in their product and service offerings.
However, due to the immense size of the various constituencies, corporations have to work continuously and communicate seamlessly and effectively with various electronic and print media that provide content for mass consumption in the form of newspapers, documentaries, advertisements, blogs, forums, websites, television shows, videos etc. They also have to rely heavily on these media networks to communicate any important events within the organization or perform damage control in the event of any operational or service failure/s as these networks have immense power to sway public opinion based on their methods and styles of presenting information to various constituencies. This can only be successful if corporations and media networks build long term relationships and work towards understanding each others' roles within the communities and how their interactions with each other decide on the quality of the content being provided to the constituencies served by the corporations. These changing times also require the senior leadership of the companies to take on a more proactive role in communication to the various constituencies rather than a defensive or passive one. It also mandates the need for awareness and adaptability of the latest forms of communication media tools among the top management.
One of the examples that comes to mind for making an effective use of the latest media communications technology is Pepsi. The company's website http://www.pepsi.com/ has been designed to cater to its key constituents, mostly consumers who are in their teens, young adults and adults. It has a very user-friendly interface and makes an effective use of the latest media platforms like Facebook, Twitter, YouTube etc. Pepsi not only provides the updated corporate information through these platforms but also build loyalty and repeat site visits among its constituents. It also allows website users to volunteer and participate in its community activities and interacts with constituencies beyond its immediate customer base. With a youthful feel to its website, it launches and funds various projects in the communities through "Pepsi Refresh Project" (http://www.refresheverything.com/) it serves by letting its website users vote for specific projects which Pepsi can fund to make a meaningful difference. It also encourages user participation by means of website blogs and facilitates discussions over a new product launch, its quality or any corporate news. It also collects data from customers through these channels which helps in providing inputs in the form of market research data at a fractional cost than those of traditional market research sources.
Chapter 6 Media Relations- Terry Smith
One of the most critical areas within any corporate communication function is the media relations department. The media are both a constituency and a conduit through which investors, employees, and consumers receive information about and form images of a company. (Argenti pg, 155)
Reading this chapter dealing with media relations gave me some more insight towards the topic. In my work place it is kind of difficult for me to relate to because I only had two jobs. These two jobs weren't that large and they rarely dealt with the media. The media relations department just consisted of the head supervisor and the department board directors. As stated in the last couple blogs I work for a small but community size learning center. (daycare) The group that took care of media relations dealt with articles, commercials, public speaking, interviews, and etc. The group was very small, it only consisted of five to six members. They handled everything that dealt with the public and media. The group made sure they maintained the image of the business.
Reading this chapter dealing with media relations gave me some more insight towards the topic. In my work place it is kind of difficult for me to relate to because I only had two jobs. These two jobs weren't that large and they rarely dealt with the media. The media relations department just consisted of the head supervisor and the department board directors. As stated in the last couple blogs I work for a small but community size learning center. (daycare) The group that took care of media relations dealt with articles, commercials, public speaking, interviews, and etc. The group was very small, it only consisted of five to six members. They handled everything that dealt with the public and media. The group made sure they maintained the image of the business.
Sunday, October 3, 2010
Ch.5: Corporate Responsibility
In today's competitive environment and with a mature customer base, organizations need to go beyond providing high quality products and efficient services in order to sustain customer loyalty and retain their reputation in the market. A key differentiator today among organizations worldwide is what are their efforts towards improvement of the very community it operates in, rather than simply coming out with a new and innovative product and/ or a useful service. Customers and more importantly non-customers (people and institutions other than the organization's target market) are today more educated and have access to multiple information sources and expect profitable organizations to make sustainable contributions towards the general well-being of the community. They also take a very keen interest in the functioning of the organizations than what they did a few years ago. Hence, organizations today have a much greater accountability and responsibility towards their actions other than those related to its operations alone. Corporate actions today go a long way in conveying a strong message that the organizations do not simply serve or support a community but are essentially a very part of the community itself.
One of the examples of Corporate Responsibility that comes to my mind is about an Indian business powerhouse, ITC which is active in multiple business streams. It being a very profitable and well-known company realized early that its operations are beyond products and services, and hence as a part of its corporate responsibility and leveraging the power of information technology launched a social initiative, e-Choupal. “e-Choupal, is a knowledge portal providing farmers with a range of information and services. Designed to enable them to bargain collectively and enhance their transitive power. Today, it is a vibrant and rapidly growing zone of business and interaction for over 4 million farmers." (Source: ITC website- http://www.itcportal.com/sustainability/lets-put-india-first/home.aspx) It is similar to a social networking interface in rural India empowering Indian farmers to interact with other farmers and share better farming tools and technology to grow improved crops that can be used as inputs to organizations to generate sustainable value benefitting customers, farmers and the entire community. They can also discuss trends in the markets for their crops and price them accordingly and also sell directly rather than taking help of middlemen to help reach their produce to the markets.
One of the examples of Corporate Responsibility that comes to my mind is about an Indian business powerhouse, ITC which is active in multiple business streams. It being a very profitable and well-known company realized early that its operations are beyond products and services, and hence as a part of its corporate responsibility and leveraging the power of information technology launched a social initiative, e-Choupal. “e-Choupal, is a knowledge portal providing farmers with a range of information and services. Designed to enable them to bargain collectively and enhance their transitive power. Today, it is a vibrant and rapidly growing zone of business and interaction for over 4 million farmers." (Source: ITC website- http://www.itcportal.com/sustainability/lets-put-india-first/home.aspx) It is similar to a social networking interface in rural India empowering Indian farmers to interact with other farmers and share better farming tools and technology to grow improved crops that can be used as inputs to organizations to generate sustainable value benefitting customers, farmers and the entire community. They can also discuss trends in the markets for their crops and price them accordingly and also sell directly rather than taking help of middlemen to help reach their produce to the markets.
Chapter 5: Corporate Responsibility - Ryan Kirsch
Before I left my previous employer, there was a huge push for corporate sustainability efforts across all offices. The company showcases their corporate sustainability program to the public on their website. The company “recognizes its obligations to encourage sustainability and to exemplify sustainable practices, both within the organization and through service to clients. This includes active processes for environmental preservation, community outreach, employee wellness, and business improvement.”
The program had clear internal visibility during office meetings where staff and managers would brainstorm ideas on how to improve the program locally. Offices would post their sustainability accomplishments on the company’s internal website for other employees to see and to give advice. The idea was to get the entire company involved with program communication and each office had a “Green Ambassador” which administered the program.
According to company statistics, during 2009, more than 90% of their offices were engaged in recycling campaigns, including nationwide participation with electronics suppliers. Styrofoam use has been discontinued or dramatically curtailed in 75% of offices. More than half of company offices were involved in community outreach, both locally and globally. And key offices are addressing sustainability through “green” national vendor contracts and electronic procurement and AP/AR. The company plans to issue its first annual sustainability report in 2011, to include objective review of efforts in 2010, applicable quantitative analysis, and goals for future improvement.
I believe the impact of “going green” will be the future business norm for organizations. I believe to be competitive, companies must initiate these programs; not only because of the added benefits, but because clients, customers, and constituencies will demand it.
The program had clear internal visibility during office meetings where staff and managers would brainstorm ideas on how to improve the program locally. Offices would post their sustainability accomplishments on the company’s internal website for other employees to see and to give advice. The idea was to get the entire company involved with program communication and each office had a “Green Ambassador” which administered the program.
According to company statistics, during 2009, more than 90% of their offices were engaged in recycling campaigns, including nationwide participation with electronics suppliers. Styrofoam use has been discontinued or dramatically curtailed in 75% of offices. More than half of company offices were involved in community outreach, both locally and globally. And key offices are addressing sustainability through “green” national vendor contracts and electronic procurement and AP/AR. The company plans to issue its first annual sustainability report in 2011, to include objective review of efforts in 2010, applicable quantitative analysis, and goals for future improvement.
I believe the impact of “going green” will be the future business norm for organizations. I believe to be competitive, companies must initiate these programs; not only because of the added benefits, but because clients, customers, and constituencies will demand it.
Chapter 5 Corporate Responsibility- Terry Smith
Corporate responsibility constitutes an organization's respect for society's interests, demonstrated by taking ownership of the effect its activities have on key constituencies including customers, employees, shareholders, communities, and the environment, in all parts of their operations.
In my opinion I am going to try and discuss my answer for this question the best I can. In Pittsburgh I work for a local learning center with children from ages infant through pre-kindergarten. Our job as an organization is to maintain and ensure the safety, healthy, and positive experiences for each child. We are to teach and interact with the different ages of children. The corporate responsibility is to create the best experiences for these different age groups of children. Making sure children are safe, having fun, and learning are the main goals for this organization. Creating a positive effect for the community will attract more parents, more children, and more money. If this is damaged it will hurt the organization in many ways.
There was a huge incident that occurred at the learning facility last year. An incident with a 1 year old created an ugly experience for the organization. Allegations that there were clues of the neglect almost tarnished the reputation of the learning center. A mother accused the facility and staff of neglect claiming her child got injured at the center. I feel as though the situation was handled poorly between the two parties. The mother was kicked out of the program; she created posters, had community speeches, meetings, newspaper articles, anything in her power was used to tarnish the early learning center. This was hurting the program and organization because parents started to doubt the organization. Kids were being pulled from the learning center rapidly week in and week out.
The organization created a week dedicated to the parents, children, and community to impose that they still were legit and cared about the families. This week consisted of fun days, carnivals, pizza parties, movie nights, raffles, and free food. The families who participated found out that the organization never injured any child. They re-stated why they existed which was to ensure the positive health of each child. It was the organization's job to re-create a positive image towards the parents and community. This week showed that they cared what went on throughout the community.
In my opinion I feel as though corporate responsibility can impact reputation from many things. In my situation the responsibility of the organization was to carry out their jobs and ensure safety and knowledge towards each and every child. Problems happen and the reputation of the organization was damaged. The responsibility was damaged and the reputation was tarnished, but the organization created positive experiences to help fix those problems.
In my opinion I am going to try and discuss my answer for this question the best I can. In Pittsburgh I work for a local learning center with children from ages infant through pre-kindergarten. Our job as an organization is to maintain and ensure the safety, healthy, and positive experiences for each child. We are to teach and interact with the different ages of children. The corporate responsibility is to create the best experiences for these different age groups of children. Making sure children are safe, having fun, and learning are the main goals for this organization. Creating a positive effect for the community will attract more parents, more children, and more money. If this is damaged it will hurt the organization in many ways.
There was a huge incident that occurred at the learning facility last year. An incident with a 1 year old created an ugly experience for the organization. Allegations that there were clues of the neglect almost tarnished the reputation of the learning center. A mother accused the facility and staff of neglect claiming her child got injured at the center. I feel as though the situation was handled poorly between the two parties. The mother was kicked out of the program; she created posters, had community speeches, meetings, newspaper articles, anything in her power was used to tarnish the early learning center. This was hurting the program and organization because parents started to doubt the organization. Kids were being pulled from the learning center rapidly week in and week out.
The organization created a week dedicated to the parents, children, and community to impose that they still were legit and cared about the families. This week consisted of fun days, carnivals, pizza parties, movie nights, raffles, and free food. The families who participated found out that the organization never injured any child. They re-stated why they existed which was to ensure the positive health of each child. It was the organization's job to re-create a positive image towards the parents and community. This week showed that they cared what went on throughout the community.
In my opinion I feel as though corporate responsibility can impact reputation from many things. In my situation the responsibility of the organization was to carry out their jobs and ensure safety and knowledge towards each and every child. Problems happen and the reputation of the organization was damaged. The responsibility was damaged and the reputation was tarnished, but the organization created positive experiences to help fix those problems.
Chapter 5: Corporate Responsibility - Cynthia Wolfel
For this question I am going to reference a gas and oil company that I used to work for, which had been started by private owners. Outside appearances or reputation were completely different than image in some cases for a brief time period. This was primarily due to the owners stepping back and relinquishing management to their upper management employees that did not adhere to their prior ethical stance. However, this was starting to catch up with the company when I said farewell. The company was roughly deemed an industry standard for their proper and ethical environmental practices before this was even publicly seen as an issue. When they drilled an oil or gas well the surrounding land was left in pristine condition - almost as though the company had never been there with the exception of a well and storage tank. The company, when I was hired, portrayed itself as a company that cared about its employees. Additionally, the company hosted events at future drilling locations to promote a good relationship with land owners, since in this business they are a very important constituency for leasing. Employees would actually volunteer to man these events without pay due to their loyalty to the company.
The company identity was still very much intact as far as management was concerned; however the owners and various other constituents were starting to receive hints that all was not as it seemed. Scrimping and making a site appear pristine was becoming standard practice in the field and any employees involved in that part of the process new this. They were also more than willing to pass the information on to the coworkers at the office that they deemed ‘trustworthy’. Several court cases ensued concerning run off from wells and improper land management of sites. ‘Shmoozing’ with government officials become standard policy to try to remedy this situation with the DEP as well as address the old adage of taxes. Also, internally there was employee unrest in several departments. Most employees were not happy and complained to each other whenever possible. Management now was actually autocratic and was not truly interested in the welfare of their employees. Many good employees were lost do to the crass treatment they received. I personally opted not to sue this particular company for personal reasons, although the state wanted me to pursue litigation. A final blow to company reputation was the selling off of well sites to other companies, which left the previously loyal land owners in an uproar. This is far from all that I could describe, but the company managed to take a great reputation that had been established by the owners and turn it into a negative image for all constituencies and in the end gain a negative reputation in the industry. Had management continued on the same track as the owners had done, the company would have built upon a great reputation by utilizing several factors of corporate responsibility.
The company identity was still very much intact as far as management was concerned; however the owners and various other constituents were starting to receive hints that all was not as it seemed. Scrimping and making a site appear pristine was becoming standard practice in the field and any employees involved in that part of the process new this. They were also more than willing to pass the information on to the coworkers at the office that they deemed ‘trustworthy’. Several court cases ensued concerning run off from wells and improper land management of sites. ‘Shmoozing’ with government officials become standard policy to try to remedy this situation with the DEP as well as address the old adage of taxes. Also, internally there was employee unrest in several departments. Most employees were not happy and complained to each other whenever possible. Management now was actually autocratic and was not truly interested in the welfare of their employees. Many good employees were lost do to the crass treatment they received. I personally opted not to sue this particular company for personal reasons, although the state wanted me to pursue litigation. A final blow to company reputation was the selling off of well sites to other companies, which left the previously loyal land owners in an uproar. This is far from all that I could describe, but the company managed to take a great reputation that had been established by the owners and turn it into a negative image for all constituencies and in the end gain a negative reputation in the industry. Had management continued on the same track as the owners had done, the company would have built upon a great reputation by utilizing several factors of corporate responsibility.
Sunday, September 26, 2010
Chapter 4: Identity, Image, Reputation and Corporate Advertising - Cynthia Wolfel
I have seen new logo contests in multiple work environments over the years. There is a flurry of activity and enthusiasm surrounding the creation and the choosing of the new logo. After the new logo is chosen there is an official release and ‘unveiling’. Everyone seems excited to produce and use the new logo and for awhile it is effectively plastered all over everything with great pride and emphasis. The new logos I have personally witnessed seemed to be viewed as band aids that would cure all ills. Unfortunately, they slowly become a standard addition to letterhead and websites that are ignored by everyone just like their predecessors.
Not as much planning and consideration seem to go into the new logo’s long term use or its potential influence on future branding as was concentrated on its development and current representation of management’s perception of the organization, i.e. corporate identity. Possibly, the continued promotion of the logo’s rationale for being chosen would help it not become just another meaningless symbol. Organizational (corporate) advertising depicting a positive image reflecting the new logo should continue as long as the logo is utilized. The scenario reminds me of a parent’s reaction to a newly acquired activity of their child’s. At first a huge fuss is made, whether the child is actually good or not, and then eventually it is just another activity to be fit into the to do list.
Having personally observed the above scenario more than once, I would definitely agree with the book that an organization’s vision should be represented by all aspects such as logos, mottos and employee behavior. Employees can have a negative or positive effect on branding and reputation. If employees continue to remember the logo’s positive message; the meaning will be passed on to other existing constituencies as well as future ones. Identity, image and reputation must all be considered for successful advertising outcomes to occur – singling out one will not be productive in the long run.
Not as much planning and consideration seem to go into the new logo’s long term use or its potential influence on future branding as was concentrated on its development and current representation of management’s perception of the organization, i.e. corporate identity. Possibly, the continued promotion of the logo’s rationale for being chosen would help it not become just another meaningless symbol. Organizational (corporate) advertising depicting a positive image reflecting the new logo should continue as long as the logo is utilized. The scenario reminds me of a parent’s reaction to a newly acquired activity of their child’s. At first a huge fuss is made, whether the child is actually good or not, and then eventually it is just another activity to be fit into the to do list.
Having personally observed the above scenario more than once, I would definitely agree with the book that an organization’s vision should be represented by all aspects such as logos, mottos and employee behavior. Employees can have a negative or positive effect on branding and reputation. If employees continue to remember the logo’s positive message; the meaning will be passed on to other existing constituencies as well as future ones. Identity, image and reputation must all be considered for successful advertising outcomes to occur – singling out one will not be productive in the long run.
Chapter 4: Identity, Image, and Reputation
In my personal experience of working with a small but highly profitable Indian outsourcing firm, I had the opportunity to witness its merger with IBM. Being a global behemoth in terms of its diverse businesses across the world and being a well-known corporate brand, IBM was not new to managing mergers and acquisitions; and transcending its universal corporate culture and philosophy across its various entities.
Prior to the deal being announced in the media, all employees were informed about the merger through an elaborate e-mail from our CEO highlighting the reasons and logic behind the move to merge with IBM. He also provided the specific Human Resources contact information to address any concerns or questions that we may have and encouraged us to personally write to him if our concerns were not fully addressed.
The next few days saw a flurry of activities at our workplace with our senior managers meeting their respective production teams and formally announcing the merger in person in presence of HR executives and senior IBM officers. The CEO intricately explained to all the employees by video-conference as to how our existing mission, vision and values were in sync with the IBM values and that there would not be a monumental change in our day to day operations. There would be no job losses, transfers or role changes within the next six months.
I witnessed regular communications from our Corporate Human Resources team that kept us abreast with the changes in terms of the new aesthetics of the facility, our identities and attire in line with IBM corporate culture. Also, a new logo and a new name were announced. This gave us a very professional outlook that boosted our self-confidence and made us feel proud to be a part of a global corporation. The employee turnover was very low post the merger as the identity of IBM as a corporation was well-known. Also, all employees had a very high regard for IBM being a leader in our industry and were well aware of its reputation in the corporate world. Hence, IBM's image and identity played an important role in reinforcing its reputation and corporate values among our staff.
IBM and our top management worked tirelessly to interact with our suppliers and customers in updating them about our new corporate identity and our brand. The existing communication media vehicles were used to the maximum (courtesy of IBM) to communicate the merger and reinforce the IBM brand and our new identity in the marketplace.
In my opinion, IBM and our senior management handled the merger in a very smooth and efficient manner.
Prior to the deal being announced in the media, all employees were informed about the merger through an elaborate e-mail from our CEO highlighting the reasons and logic behind the move to merge with IBM. He also provided the specific Human Resources contact information to address any concerns or questions that we may have and encouraged us to personally write to him if our concerns were not fully addressed.
The next few days saw a flurry of activities at our workplace with our senior managers meeting their respective production teams and formally announcing the merger in person in presence of HR executives and senior IBM officers. The CEO intricately explained to all the employees by video-conference as to how our existing mission, vision and values were in sync with the IBM values and that there would not be a monumental change in our day to day operations. There would be no job losses, transfers or role changes within the next six months.
I witnessed regular communications from our Corporate Human Resources team that kept us abreast with the changes in terms of the new aesthetics of the facility, our identities and attire in line with IBM corporate culture. Also, a new logo and a new name were announced. This gave us a very professional outlook that boosted our self-confidence and made us feel proud to be a part of a global corporation. The employee turnover was very low post the merger as the identity of IBM as a corporation was well-known. Also, all employees had a very high regard for IBM being a leader in our industry and were well aware of its reputation in the corporate world. Hence, IBM's image and identity played an important role in reinforcing its reputation and corporate values among our staff.
IBM and our top management worked tirelessly to interact with our suppliers and customers in updating them about our new corporate identity and our brand. The existing communication media vehicles were used to the maximum (courtesy of IBM) to communicate the merger and reinforce the IBM brand and our new identity in the marketplace.
In my opinion, IBM and our senior management handled the merger in a very smooth and efficient manner.
Chapter 4: Identity, Image, and Reputation – Ryan Kirsch
I worked for an engineering and consulting firm for 5 years prior to starting my MBA. The company is consistently ranked high among other engineering/design, and environmental firms (Engineering News Record – 2010). On the outside the company’s image and reputation is very appealing to customers, clients, etc. However, from my experience the company’s internal reputation (i.e. employee perspective) is the opposite.
The firm had gone through many mergers and acquisitions over the years prior to my arrival; and it has been struggling with an internal identity ever since. The firm has approximately 100 offices with 3,000+ employees across the U.S., and each office has “battled” to keep their own identity and reputation. I have to give credit to the new CEO who has been trying to fix this problem since taking over in the past couple years. She has been realigning the firm’s divisions, offices, and personnel to better suit their client/customer’s needs, and requiring offices to comply with corporate policies.
Another area the firm is struggling with is employee retention. I don’t know the statistics, but it seems to me that the offices I’ve worked for had a relatively high employee turnover rate. Management has consistently failed to retain highly qualified individuals. Part of this is due to economic factors (furloughs, layoffs, etc.), but the majority of employees often see working for the company as just a stepping stone onto something else. There never appeared to be any loyalty among management and employees. Unless the firm changes its internal reputation, I do see some office divisions suffering. In many cases, I’ve seen projects sitting at a standstill because of employee turnover, and failed recruitment attempts at hiring new employees. “Word gets around and travels fast…”
The firm had gone through many mergers and acquisitions over the years prior to my arrival; and it has been struggling with an internal identity ever since. The firm has approximately 100 offices with 3,000+ employees across the U.S., and each office has “battled” to keep their own identity and reputation. I have to give credit to the new CEO who has been trying to fix this problem since taking over in the past couple years. She has been realigning the firm’s divisions, offices, and personnel to better suit their client/customer’s needs, and requiring offices to comply with corporate policies.
Another area the firm is struggling with is employee retention. I don’t know the statistics, but it seems to me that the offices I’ve worked for had a relatively high employee turnover rate. Management has consistently failed to retain highly qualified individuals. Part of this is due to economic factors (furloughs, layoffs, etc.), but the majority of employees often see working for the company as just a stepping stone onto something else. There never appeared to be any loyalty among management and employees. Unless the firm changes its internal reputation, I do see some office divisions suffering. In many cases, I’ve seen projects sitting at a standstill because of employee turnover, and failed recruitment attempts at hiring new employees. “Word gets around and travels fast…”
Friday, September 24, 2010
Chapter 4 Identity Image & Reputation- Terry Smith
Identity, image, and reputation are what defines firms and how people portray them. I work for IUP's Intramurals program. It basically defines student recreation within the university. I will use this workplace to discuss how I see these three terms.
Identity defined is: the actual manifestation of the company's reality as conveyed through many things. In my workplace people just think it's about refereeing games and organizing schedules. It is way larger than that, my colleagues and I have to set an example. We must prove to the university that we are the best at what we do. Our staff is great but we must show it in many ways. We have to create an identity for Intramurals, this means presentation (demeanor, uniforms, actions, performance). The most important piece is our logo which represents the university and organization.
Image defined is: a reflection of an organization's identity. In my workplace as an intramural worker our image is what our boss stresses to us the most. Before I started working intramurals I heard the program was sloppy and almost got removed from the university completely. People felt as though it was a waste and needed to be cut. In my opinion this could only be because the previous boss and staff didn't take the job seriously. There were many problems with the last boss and staff. This is why our boss stressed to us now that this is the most important key to our jobs. We must prove to the university that we are a great program and the students need us. Since I have been working with intramurals our boss has praised us because of our great jobs. Now he cannot hear enough good things that people talk about our program. Our image is restored and we can only hope it stays that way. We got this way from our presentation and performance towards the students.
Reputation defined: differs from image because it is built up over time and is not simply a perception at a given point in time. It differs from identity because it is a product of both internal and external constituencies. Reputation is how other people and companies look at your company. Our reputation at IUP intramurals is that we provide the students with fun, exciting, and wonderful sporting experiences. Our staff works at our best to provide these great experiences for anybody participating in our different sporting events. My staff and I have created this reputation by our image and identity and our overall performance to please the students.
Identity defined is: the actual manifestation of the company's reality as conveyed through many things. In my workplace people just think it's about refereeing games and organizing schedules. It is way larger than that, my colleagues and I have to set an example. We must prove to the university that we are the best at what we do. Our staff is great but we must show it in many ways. We have to create an identity for Intramurals, this means presentation (demeanor, uniforms, actions, performance). The most important piece is our logo which represents the university and organization.
Image defined is: a reflection of an organization's identity. In my workplace as an intramural worker our image is what our boss stresses to us the most. Before I started working intramurals I heard the program was sloppy and almost got removed from the university completely. People felt as though it was a waste and needed to be cut. In my opinion this could only be because the previous boss and staff didn't take the job seriously. There were many problems with the last boss and staff. This is why our boss stressed to us now that this is the most important key to our jobs. We must prove to the university that we are a great program and the students need us. Since I have been working with intramurals our boss has praised us because of our great jobs. Now he cannot hear enough good things that people talk about our program. Our image is restored and we can only hope it stays that way. We got this way from our presentation and performance towards the students.
Reputation defined: differs from image because it is built up over time and is not simply a perception at a given point in time. It differs from identity because it is a product of both internal and external constituencies. Reputation is how other people and companies look at your company. Our reputation at IUP intramurals is that we provide the students with fun, exciting, and wonderful sporting experiences. Our staff works at our best to provide these great experiences for anybody participating in our different sporting events. My staff and I have created this reputation by our image and identity and our overall performance to please the students.
Subscribe to:
Posts (Atom)