issue 02/2013 preview

Making a stand at work for what’s rightFinding the courage to give voice to your values

Communication breakdown in the great communicator Public scandals show the private side of organisational culture

Introducing corporatehistorical responsibility The ethical dilemma of confronting dark corporate pasts

COMMUNICATION DIRECTORM a g a z i n e f o r C o r p o r a t e C o m m u n i c a t i o n s a n d P u b l i c R e l a t i o n s

www.communication-director.eu

02/2013

Finding the right pathEthics and values in corporate communications

© Kevin Abosch / w

ww

.kevinabosch.com

PHILIPPE BORREMANSVAN MARCKE GROUP

ANNABELLE ATCHISONMICROSOFT

FAHIMA CHERAFEDDINECOMMITTEE ON THE FOLLOW-UP ON WOMEN’S ISSUES

STEFANIE WETTBERGBASF

MARIE-GABRIELLE CAJOLYADDAX PETROLEUM

MARK ARISDIAGEO

TOM WATSONBOURNEMOUTH UNIVERSITY


MARGARET O’DONNELLBRITISH RED CROSS

KLAUS FRIDORFNORDEA


ANDREA POLOIMMOBILIARE.IT

THOMAS SCHULTZ-JAGOWAMNESTY INTERNATIONAL

MELISSA FLEMINGUNHCR

MELISSA LAMSONLAMSON CONSULTING

MARK PFITZERFSG

LAURENT FREIXENESTLÉ

THIERRY NICOLETSCHNEIDER ELECTRIC FRANCE

ULF SANTJERPUMA

COMMUNICATIONE U R O P E A N

S U M M I T 2 0 1 3� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ��

WWW.COMMUNICATION-SUMMIT.EU

MICHELE GALENNOVARTIS

STACEY MINTONCELGENE

REGINE COQUERAN-GELINALCATEL-LUCENT

SUSAN SHEEHANNOKIA

IAN MCNAIRNIBM

AURELIE VALTATCOUNCIL OF THE EUROPEAN UNION

MARC LANGENDORFSIEMENS

��

��

��

5

02/2013 COMMUNICATION DIRECTOR

EDITORIAL

Phot

o: M

oritz

Ven

nem

ann

T oday’s communication professionals are sometimes called upon to engage in work that , though legally acceptable, can often be less concretely-def ined in terms of ethics. Furthermore, the push towards transparency and compliance rules that has taken place over the past few years means that questions

of ethics are more relevant to communicators than ever before. Ethical issues are regularly encountered by professionals work-ing in the f ields of governmental relations, lobbying and public af fairs, while the increasingly globalised world of business can bring certain practices into direct conf lict with ethical codes. Fur-thermore, digital channels of communication and social media phenomena have further clouded the issue of exactly what the appropriate ethical response should be. So how do today’s com-municators address the practicalit ies of ethics in their day-to-day work? This issue of Communication Director has invited a handful of experts from the professional and academic f ields to contrib -ute their opinions on this subject . The corporate code of conduct is a recurring theme, though there is ambivalence as to their ef-fectiveness. A nuanced take on greenwashing gives us a greater understanding of how such a situation could arise, and a case study of corporate whistleblowing is presented as part of a wider strategy of transparency and trust . We also look at the ethical and public relations challenges presented to today’s communica-tors by dark corporate pasts – a fascinating and relatively recent addition to the business landscape. We also hear about how we ourselves can f ind the courage and conf idence to stand up, give voice to and act on our own set of values, proving that , when it comes to doing the right thing, it is often up to individuals to take the init iative. A subject as rich as ethics can only be partially touched on within these pages : we hope that these articles inspire you towards further contemplation.

Marc-Oliver Voigt

[email protected]

6


Break the chainsHelping employees overcome their workplace frustrations is good for businessMark Royal and Tom Agnew

THE STORY OF PR Looking back at landmark communications

The development of Norwegian PR Scandinavian ideals of egalitarianism and equality have driven public relations in NorwayGillian Warner-Søderholm and Tor Bang

On the evolution of information Aristotle, the Industrial Revolution and our understanding of information ethicsAntonio Marturano

THE BIG INTERVIEW Key communicators under the spotlight

Laurent Freixe Executive Vice President, Zone Director for Europe, Nestlé

6

AGENDA SETTER Communication ideas in the eyes of experts

Opening up the officeWhy Microsoft loves flexible workstyles

LEADERS

CEOs in the eyes of the media

CEO Stockwatch by CARMA International

STRATEGIC THINKER The corporate and academic stand on communication

Do you measure up? Comparing the competences of professional communicators across EuropeRalph Tench and Hasina Juma

Stakeholder success Why companies must engage with non-traditional stakeholders Truus Huisman and Phil Riggins

TEAM PLAYER How to improve personnel management and your career

Adding up the numbers There is real value in getting your employees financially informedAnn-Kathrin Halvorsen

22“The increased importance of engaging with non-traditional stakeholders will require changes from communi-cators.”

08

12

22

26

30

34

38

42

46

“Frustration is most acutely felt by those who care about individual or organisational goals the most.”

34

Phot

o: C

hrisc

row

ley

| Dre

amst

ime.

com

7


52

56

60

64

68

72

Phot

o: D

ream

stim

e.co

m

The spiralling logic of responsibility The pressure put on companies to be socially re-sponsible can lead to accusations of greenwashingHenrik Merkelsen

An unhealthy state A case study of how public scandals can flag up issues of organisational mismanagement Barrie Gunter

Sounding the alarm Establishing a channel for whistleblowers is one way of gaining trust Jan Larsson

ASSOCIATION European Association of Communication Directors

The latest developments in the EACD

QUESTIONS TO... The personal side of Communication Directors

Vanya BabaninHead of PR and Corporate Communications, Balkan Star Automotive

76

80

84

88

90

98

STORY TELLER Looking at the important questions of communication

Between ethics and morality Communicators increasingly face ethical dilemmas, yet there is confusion about to how move forwardDafydd Phillips

When prevention is better than cure A code of conduct can help a company protect itsreputation and businessPeter O’Brien Playing to my strengthsFinding the courage to speak out and act on our values begins with self-assessmentMary C. Gentile

A journey to justiceConfronting a dark corporate past presents an ethical and public relations dilemma to communicatorsClaudia Janssen

Speaking in codes Some corporate codes of conduct are more concerned with control than with ethical behaviourIgnacio Ferrero, Dulce Redin and Reyes Calderón

Multidimensional moral decision making The various ethical theories managers use when faced with an ethical dilemmaJohanna Kujala and Anna-Maija Lämsä

“How can organisations start addressing a dark history after long periods of silence?”

64

COMMUNICATIONS READER Book Reviews

“Norway experienced strong elements of patriotism and prop-aganda in its external communication en-deavours.”

38

22


DO YOU MEASURE UP? A comprehensive new project compares the competences of professional communicators across Europe.

By Ralph Tench and Hasina Juma

C ompetency is a good thing. It means you can do it. Think of sports, play-ing an instrument or being able to fly: if you are competent then you will fit the general view that you can handle the task, issue or challenge in front of

you. So what does competency mean when we talk about our work? Our recent study has highlighted that there are significant gaps in the shared knowledge and under-standing of the issues when it comes to our own profes-sional capabilities, particularly in communications.

Supported by the EU and working in partnership with the European Association of Communication Direc-

tors, the European Communication Professional Skills and Innovation (ECOPSI) programme is the largest European-funded communications project looking into the future skills and competence needs of practition-ers. The aim is to influence both theory and practice and has involved 12 months of fieldwork, which some readers will have been involved in.

We recognise that there is a changing context for communica-tions. For example, the position of the chief communication officer on the board of large organisations is becoming more common as commu-nications is being seen as integral to the financial and commercial success of organisations. The communica-tion officer champions the benefits of effective communications through demonstrated return on investment

STRATEGIC THINKERThe corporate and academic stand on communication

23

STRATEGIC THINKER


I. STRATEGIC SOCIAL MEDIA As organisations seek new ways to drive innovation and build authentic rela-tionships with their various stakeholders, many decide to jump on the social media bandwagon. Some organisa-tions are experts in surfing the social media wave while others struggle or fail. Our study found that practition-ers, especially chief communication officers, feel they need a greater understanding of its strategic application and want to find out more about the return on investment that might be realised from their implementation rather than knowing how to use a specific social media technol-ogy or platform. This finding links with the fact that all regions view social media as a growing area: not all are necessarily viewing this as a threat, but more as another media channel to use. This is particularly the case in Ger-many. In contrast, Spanish communications profession-als possibly need to hone their negotiation and conflict resolution skills as a result of what is happening in their own troubled economy and the subsequent labour market tensions. The top three knowledge, skills and personal at-tributes for social media managers in Europe are listed in the table on the next page.

When asked what would be the best ways of improving knowledge in these areas there were also some interesting variations according to job role. For social media manag-ers this could take the form of self-study using the inter-net or perhaps attending specialist short courses. Chief communication officers and a number of crisis managers felt that the best way to develop their knowledge was to

talk to peers or (younger) members of their own team already working in this area, as well as by hiring new people (or in one instance a team of people) with this specialist knowledge. Some of the most popular ways to develop skills include on-the-job experience in current and previous roles and self-study using books and online resources.

Opinion varied amongst respondents as to whether personal attributes are something that training and de-velopment can help to improve. Some respondents felt that personal attributes could be improved. There was an understanding that this can take hard work and con-certed effort while others thought it was part of an indi-vidual’s character.

while internal communication man-agers are increasingly being asked to help support, implement and drive organisational change through em-ployee engagement and communica-tion activity. Other communication professionals, such as crisis com-munication managers, face a new reality where a simple mistake can escalate into a crisis in our hyper-connected society. Similarly, social media managers are now responsible for maintaining the integrity, trust and reputation of their companies in the rapidly emerging digital world. These new corporate positions clear-ly demonstrate that communicators now require a complex set of com-petences to be successful in a global workplace which is currently under-going phenomenal change, driven largely by pressure to improve profits and to make cost efficiencies.

A partnership of six leading Euro-pean universities, the ECOPSI pro-gramme is focused on mapping the current competences required for social media roles, internal commu-nication roles, crisis communication roles and communication director roles in Europe as well as under-standing their future development needs. The research team members were professors Ayla Okay, Ansgar Zerfass, Piet Verhoeven, Angeles Moreno, Dejan Vercic and Ralph Tench, and the programme reflects 15 months of desk and empiri-cal work by the team in three core phases: (1) the benchmarking report in each country region; (2) quantita-tive data collection from communi-cation practitioners in 42 countries across Europe; (3) qualitative data from 53 interviews from four senior practitioner roles in the six regions of the study. This article highlights four emerging trends that resulted from the interviews.

These new corporate positions demonstrate that commu-nicators now require a complex set of competences.

30


TEAM PLAYERHow to improve personnel management and your career

ADDING UP THE NUMBERSGetting employees financially engaged not only helps them make informed decisions but also builds better relations at work.

By Ann-Kathrin Halvorsen

F ew managers would argue that em-ployee engagement and involvement are important factors in a company’s per-formance. Numerous studies over the years have shown the link between em-ployee engagement and improvements

in productivity, performance, customer service, retention, and even the financial health of a company. Managers the

world over have taken this to heart and have put engagement on the corporate agenda.

Yet, there is one area that leaves many employees feeling disengaged and downright powerless – under-standing the company’s finances. In the spirit of transparency and

31

TEAM PLAYER


openness – two often cited drivers of employee engagement, we throw difficult financial terms and concepts at employees and expect them to un-derstand and take appropriate action. Instead, employees very often feel in-timidated and ill equipped to make the decisions that can have a positive influence on the bottom line. Invari-ably, employees feel that the only way they can contribute is by cutting costs. Feeling forced to resign to such a Sis-yphean situation and not being able to influence your work conditions can be downright demoralising.

WHY MANAGERS SHOULD CARE The frustration and lack of empowerment that financial com-munication very often causes is un-fortunate, as a company’s financial performance is closely linked to its overall performance and strategy, and serves as an important way to measure progress.

Although, when given the oppor-tunity, employees can do more than merely take part in cost cutting exer-cises, taking a hard look at operating expenses is a reality that many com-panies are facing in these uncertain economic times. American Electric Power in the US decided to invite their employees on their cost reduc-tion journey a few years back. By ex-plaining to their employees the rea-son behind the cost cutting measure in a simple and compelling way and providing them with the tools to con-tribute ideas, the company exceeded the necessary 1.7 million dollar cost cuts by several million dollars.

However, it doesn’t have to be all about costs. As with other parts of the business, when employees feel involved and truly understand the road ahead they will make informed decisions that support the strategy and help reach an organisation’s fi-

nancial goals. For instance, let’s say you put effort into making sure staff in the research and development depart-ment truly understands the impact that delays in product launches can have on sales. This will help them be more motivated and better able to make sound decisions dur-ing the development process in order to maintain speed to market.

Annual budget processes – usually a highly politicised affair in many companies – can also be made far less painful for everyone through improved financial literacy. When creating cost budgets and forecasts employees will be able to run different scenarios by adjusting recruitment and campaign dates, and suggesting which expenses can be capitalised as opposed to classified as operating costs. This will not just reduce the frustration felt by finance managers over the quality of budgeting, but also instil confidence and ownership in the employees who will be responsible for sticking to the budget.

Armed with the right tools and the right knowledge, sales personnel will be able to confidently balance pricing and discounts versus volume increases and take into ac-count the cash flow effects of credit extensions.

KNOWLEDGE IS POWER Improved financial lit-eracy also helps build better relationships between man-agement and labour groups. If you make the economics behind the entire supply and value chains as well as the realities of the financial markets more transparent to em-ployee groups, you will increase the understanding of all the forces that can have an impact on a company’s finan-cial health. Armed with this better understanding, labour

groups are more likely to actively contribute to business growth. Management will of course have to contribute in order to become a trusted business partner, but improved financial literacy will build a solid communication plat-form which beats perpetuating the traditional antagonis-tic relationship between management and labour groups. A good example of this in action is AirAsia X, a low-cost long-haul airline based in Malaysia. Management was able to create true engagement among the pilots by en-suring their understanding of the impact that fuel costs have on their business model. The pilots, a traditionally strong employee group in many airlines, are now actively

ADDING UP THE NUMBERS

Improved financial literacy also helps build better rela-tionships between management and labour groups.


BREAK THE CHAINSIt is important not to let workplace frustration undermine your investments in employee engagement.

By Mark Royal and Tom Agnew

F aced with increasing competitive pres-sures, today’s organisations are chal-lenged to optimise returns on all invest-ments. But when it comes to getting the most from efforts to engage employees, many are not realising desired results.

Worse yet, many aren’t even aware of the problem. Employee engagement has become a major focus for

leaders and managers in many organisations, for a number of good reasons. By drawing out the discretionary efforts of employees, engagement holds out to organisational

leaders the prospect of increasing productivity. Likewise, an engaged workforce that is aligned with goals and objectives is a resource for re-sponding effectively to change and the many unanticipated and am-biguous problem-solving and deci-sion-making situations it brings. Finally, with more and more em-ployees looking for environments where they can be energised at work

TEAM PLAYER

34

35

TEAM PLAYER


and feel that they are contributing in a positive way to something larger than themselves, many organisa-tions view creating high engagement workplaces as key to attracting and retaining needed talent.

Hay Group has partnered with Fortune magazine since 1997 to identify the World’s Most Admired Companies and to identify the busi-ness practices that contribute to their strong reputations and performance. In a recent study of executives in eligible companies, the vast majority indicated that employee engagement is an explicit part of their company strategies (86 per cent), is incorpo-rated into management development programmes (85 per cent), and is a consistent focus beyond employee survey efforts (86 per cent). Clearly, organisations are investing heavily in creating high levels of employee engagement. And many are having success. Hay Group’s global employ-ee opinion norms, comprised of data from over five million employees worldwide, indicate that 66 per cent of employees currently report feeling engaged at work. The problem is that too many engaged employees in to-day’s workplaces are also frustrated employees. From a motivational per-spective, managers have these em-ployees where they want them. But when it comes to ensuring that they are as productive as possible, organi-sations are missing out.

WORKPLACE FRUSTRATION Frustration is a common emotional response to opposition, when the human will seeks a certain fulfil-ment but cannot get what it wants. We all experience frustration on a daily basis, both in our personal lives and at work (the lack of an available parking space, an uncomfortable chair, or a thermostat never set at the

right temperature). But the more important a particular outcome or objective is perceived to be, and the stronger the will to achieve it, the deeper the anxiety when it is not realised. Frustration over the inability to achieve signifi-cant individual or organisational goals is more troubling than the annoyances associated with our daily routines. And when held back by work environments that hinder performance, frustration is most acutely felt by those who care about individual or organisational goals the most: that is, highly engaged and motivated employees.

THE ENEMY OF ENGAGEMENT Based on Hay Group research and experience, there are a lot of engaged but frustrated people in today’s organisations. Indeed, Hay Group data indicate that frustrated employees make up 20 per cent or more of the workforce of a typical com-pany. That may not sound like a lot. But it means that a in a mid-size company of 1,000 employees, fully 200 want to do more than they are able to deliver. At a time when organisations are struggling to get the most out of every available resource, including human capital, that’s a tremendous loss of employee productivity. Yet the prob-lem is commonly overlooked. Insofar as employee opinion surveys and other employee feedback programs have tra-ditionally focused on employee satisfaction, commitment, and engagement, they commonly fail to highlight issues related to the supportiveness of work environments. And frustrated employees are often reluctant to voice their

concerns in other ways. Highly committed to their em-ployers and their jobs, they may be disinclined to make waves by complaining about their situations – and those who do speak up may be unlikely to press the point if work arrangements are seen as unlikely to change. As a result, many suffer in silence.

Given the tension involved for employees, frustration is an inherently unstable state. Where strong motivation to succeed is not paired with similar levels of support in the work environment, employees can be expected to respond in one of three ways – most often within a time span of 12 to 24 months. It is true that some employees may, through force of effort, find ways to break through the barriers presented by low levels of support and upgrade their work arrangements to match their motivational levels. But oth-

Frustration is most acutely felt by those who care about individual or organisational goals the most.

Phot

o: C

hrisc

row

ley

| Dre

amst

ime.

com

46


THE BIG INTERVIEWKey communicators under the spotlight

Executive Vice President, Zone Director for Europe, Nestlé

Interview: Dafydd Phillips

LAURENT FREIXE

Proficient in several languages, you have worked for Nestlé in several dif-ferent locations in Europe: France, Hungary and Spain. What do you enjoy most about this kind of interna-tional career?The unique chance to discover very different geographies, cultures and the diversity of our European herit-age, whilst developing the presence of our company for the benefit of our

You joined Nestlé in 1986. What is it about this particular company that has kept your interest for this amount of time?Nestlé offers the unique opportunity to work for a truly global company with very strong roots in most countries and with a respect for different cultures. Nestlé is a com-pany focussed on the long-term, a company where people are more important than processes, a leader in nutrition, health and wellness, offering the possibility of multiple functional and geographical experiences, a company with very strong values to which I fully identify and I can easily embrace.

47

THE BIG INTERVIEW


local people, consumers and suppli-ers. One should not underestimate the efforts and investments done by Nestlé to promote a strong business ethic and train and develop our em-ployees in the long term. Working in all these countries has been a new adventure every time.

In your present position, you have pan-European responsibility. What kind of

challenges do you face in your work when faced with the many different cultures and mentalities present in such a diverse region?The strength of Nestlé in Europe is our alignment be-hind a common agenda, with priorities defined centrally every year. At the same time it is critical to stay locally relevant, and to embrace every country’s own reality. The local markets are in charge of the adaptation to the local environment and they are in charge of the local execu-tion. A strong central vision helps our markets make the right choices and leverage our strength and footprint as a global player while being intimately connected to the local environment.

Today’s European context is not an easy one. How should Europe face the current financial and economic crisis? It is true that the financial and economic crisis has presented Europe with existential questions. Also, our ageing society, growing unemployment and the increasingly limited avail-ability of natural resources challenge existing paradigms. But every crisis is an invitation to fundamentally rethink our ways of working. As a priority, we need to agree on the concrete long term targets, objectives and the reforms necessary to encourage economic and social development. In that sense, I strongly defend the Commission’s EU 2020 vision of smart, sustainable and inclusive growth as a start-ing point. This is a vision which I am convinced the rest of the world will embrace sooner or later. I am also convinced that the answer to the crisis should not come from policy makers alone. We need an approach that involves all of so-ciety, including business, and the competitiveness of our in-dustries should be at the forefront, as there is no sustainable development without competitiveness.

How can large companies find a way of growing in this cli-mate?First and foremost you must have the conviction that you can generate growth in Europe. At Nestlé, we have not written off Europe. The best sign of it is our historically high level of investments in production capacities, but also research and development and in building the capabilities of our people. Last but not least, by investing behind our brands, which we roll out first in Europe then across the globe. One of the best recent examples of this is Nescafé Dolce Gusto, first launched in Europe, now present in every single European market and going global.

And what messages should they be communicating at this dif-ficult time from your point of view? Ph

oto:

Nes

tlé

50


STORY TELLERLooking at the important questions of communication

51

STORY TELLER


“Between ethics and morality” by Dafydd Phillipspage 52 – 55

“When prevention is better than cure” by Peter O’Brienpage 56 – 59

“Playing to my strength” by Mary C. Gentilepage 60 – 63

“Journey to justice” by Claudia Janssenpage 64 – 67

“Speaking in codes” by Ignacio Ferrero, Dulce Redin and Reyes Calderónpage 68 – 71

“Multidimensional moral decision-making” by Johanna Kujala and Anna-Maija Lämsäpage 72 – 75

“The spiralling logic of responsibility” by Henrik Merkelsenpage 76 – 79

“An unhealthy state” by Barrie Gunterpage 80 – 83

“Sounding the alarm” by Jan Larssonpage 84 – 87

FINDING THE RIGHT PATHEthics and values in corporate communication

issue 02/2013 preview

Documents

t e c o

z i n e f o r c o r

t i o n s

i c r e

u n i c

ethical dilemma

ethical codes

ethical issues