Master Thesis November 2012 Postmodern Approaches to Stakeholder Relations Management and Corporate Communication: An Investigation of Pragmatic Feasibility Katrine Friis Østergaard Jensen Julie Rønlev Sørensen Supervisor: René C. Larsen Master of Arts in Corporate Communication Language and Communication School of Business and Social Sciences, Aarhus University
Abstract Purpose and Methodology The purpose of this thesis is to theoretically evaluate the influence of a postmodern crisis context on organisations communication and stakeholder relations management by combining the theoretical framework and the results from a comprehensive multi-level discourse analysis on a case study of Vestas communication with stakeholders in a crisis context. This analysis is based on different communication material from Vestas from the defined crisis period. Subsequently, a set of communicative recommendations for how Vestas and other challenged organisations can best relate to their stakeholders in a postmodern crisis context, is developed. As described, the thesis is largely theoretical, but also, via a case study, seeks to elevate the results from an ideal theoretical assessment to a more pragmatic and business-oriented level. This will be done by assessing the developed recommendations in relation to existing critiques to the theoretical framework employed, and, through this, to ultimately evaluate the level to which the recommendations, and thereby a postmodern consideration in general, can be expected to be realistically applicable to a business context and to Vestas in particular. Finally, the thesis seeks to view the theoretical fields from a broader perspective by providing a reflection on normativity. The approach to normativity, which Vestas seems to have taken, will be discussed and also considered in relation to the implications that postmodernism has on the normative foundation of a large, rather bureaucratic organisation in crisis. Findings Exploring the communication material from Vestas through a multi-level discourse analysis in relation to the theoretical framework reveals that Vestas has employed a prescriptive shareholder focus, an organisation-centric rhetoric, contextual inconsideration and an insufficient accommodation to attributed crisis responsibility. Based on theoretical insights, this led to a set of recommendations for Vestas and organisations in general to adopt an emergent stakeholder focus, to enable stakeholders, to adopt a large consideration of context and, finally, to accept crisis responsibility. In order to reach the before-mentioned pragmatic dimension to the thesis, these recommendations were subsequently assessed in relation to their practical applicability. This showed that the recommendations in their theoretical ideal are largely inapplicable to business contexts. Therefore, it is pivotal for organisations and managers to acknowledge that a theoretical ideal
must be considered in relation to the given organisation s individual context and stakeholders, which will provide important knowledge of stakeholders and the different needs for communication these are expected to have. Finally, the normative reflections provided at the end of the thesis show that Vestas, in terms of decisions, has adopted a normative approach containing elements of utilitarianism. Contrarily, the analysis of communication material from Vestas reveal that in their communication, a rather different normative approach has been taken, characterised by a prioritisation of organisational interests and inconsideration of stakeholder dialogue. On basis of the theoretical framework and the postmodern context, it is argued that an adoption of Kantian ethics as the foundation for stakeholder communication in Vestas would, to a larger degree, have emphasised the importance of showing concern for stakeholders and acknowledging that these have needs for communication when decisions that affect their welfare are made. However, even though the Kantian approach in a postmodern light represents the ideal normative approach, Vestas utilitarian approach to decisions is still acknowledged because this approach, in Vestas given context, ultimately benefits more stakeholders than a Kantian approach would have. The final point made in terms of normativity is, then, that a Kantian approach represents the ideal and should be taken in relation to communication but that, given Vestas specific context, a utilitarian approach to decisionmaking produces the largest benefit for the largest number of stakeholders. Value The value gained from the thesis is reflected in the way its results have provided a more tangible and pragmatic approach to the consideration of postmodernism. From initially being a largely theoretical and idealistic concept, this thesis has shown how the underlying ideas of postmodernism in their ideal shape are largely unrealistic, but that the basic normative premises fundamental to the concept of postmodernism can be used as an underlying basis for communicative decisions that include stakeholders to an adequate degree, resembling the contemporary context. Key words: Postmodernism, stakeholder relations, corporate communication, crisis management, normativity, theoretical critique, discourse analysis (textual, contextual and critical), inclusion, dialogue, Vestas, case study, ideal, pragmatic, emergent strategy
Foreword Total amount of characters, excl. spaces, Foreword, Table of Contents, Bibliography and Appendix: 247,959 (corresponding to 112.70 standard pages (of 2,200 characters each)). Number of characters of abstract: 4,344 (corresponding to 1.97 standard pages). The thesis has been written in full collaboration between the two authors and the division of sections between the two should therefore only be considered as guiding. JRS: Julie Rønlev Sørensen KØJ: Katrine Friis Østergaard Jensen
Table of Contents 1. Introduction (Both authors)... 1 1.1. Motivation (Both authors)... 1 1.1.1. Problem Statement and Research Questions (Both authors)... 2 1.2. Structure of Thesis (Both authors)... 3 1.3. Theory of Science: Social Constructionism (Both authors)... 5 1.4. Theoretical and Methodological Framework (Both authors)... 7 1.5. Delimitations (Both authors)... 10 2. Theory (Both authors)... 12 2.1. Two Approaches to Strategic Management: Prescriptive and Emergent (JRS)... 12 2.2. Postmodernism (Both auhors)... 13 2.2.1. From Modernism to Postmodernism (Both authors)... 14 2.2.2. Concepts of Postmodernism (Both authors)... 15 2.3. Stakeholder Relations Management (Both authors)... 17 2.3.1. Changing Perspectives: from the Shareholder to the Stakeholder Model (KØJ)... 17 2.3.2. Categorisation of Stakeholder Theory (JRS)... 18 2.3.2.1. Normative Stakeholder Theory (KØJ)... 19 2.3.2.1.1. Postmodern Normative Stakeholder Theory (JRS)... 22 2.3.2.2. Instrumental and Descriptive Stakeholder Theory (KØJ)... 23 2.3.2.2.1. Stakeholder Mapping (JRS)... 23 2.3.2.2.2. Stakeholder Salience (KØJ)... 25 2.4. Corporate Communication (JRS)... 26 2.4.1. Public Relations (JRS)... 27 2.4.1.1. Four Models of Public Relations (JRS)... 28 2.4.1.1.1. Postmodern Implications of Two-Way Communication (JRS)... 30 2.4.2. Considerations for Communication with Specific Stakeholder Groups (JRS)... 31 2.4.2.1. Communicating with Shareholders (JRS)... 32 2.4.2.2. Communicating with Employees (JRS)... 33 2.5. Crisis Management as a Theoretical Context (KØJ)... 34 2.5.1. The Complex Broad Perspective on Crisis Management (KØJ)... 34 2.5.2. Corporate Reputation Management (KØJ)... 36 2.5.2.1. Situational Crisis Communication Theory (KØJ)... 37 2.6. Sum Up on Theoretical Chapter (Both authors)... 38 2.7. Research Question 1: Characteristics of Postmodern Approaches to Business (Both authors)... 40
3. Methodology (KØJ)... 42 3.1. Qualitative Research Strategy (KØJ)... 43 3.2. Method of Textual Discourse Analysis (KØJ)... 44 3.3. Method of Contextual and Critical Discourse Analysis (JRS)... 46 3.3.1. Discourse as Text, Interaction and Context (JRS)... 46 3.3.2. Properties of Critical Discourse Analysis (JRS)... 48 3.3.2.1. The Micro and Macro Level of Discourse (JRS)... 49 3.3.2.2. Power (JRS)... 49 3.3.2.3. Recontextualisation (JRS)... 50 3.4. Justification of Method (KØJ)... 50 3.5. Data Selection (KØJ)... 51 3.6. Data Research and Evaluation (JRS)... 52 3.7. Normativity and Business Ethics (KØJ)... 54 3.7.1. Business Ethics and Models of Management (KØJ)... 55 3.7.2. Normativity (KØJ)... 56 3.7.3. Critiques of Deontology and Utilitarianism (KØJ)... 57 4. Case and Context for Analysis (JRS)... 59 4.1. Case Organisation Introduction: Vestas (JRS)... 59 4.2. Vestas Case Study (KØJ)... 60 4.2.1. The Importance of Context (Both authors)... 60 4.2.2. Contextual Course of Events (KØJ)... 61 5. Analysis (KØJ)... 64 5.1. Stakeholder Analysis (KØJ)... 64 5.1.1. Stakeholder Mapping (JRS)... 65 5.1.1.1. Employees (KØJ)... 66 5.1.1.1.1. Employee Salience (KØJ)... 66 5.1.1.2. Shareholders (JRS)... 67 5.1.1.2.1. Shareholder Salience (JRS)... 68 5.2. Textual and Contextual Discourse Analysis (KØJ)... 68 5.2.1. Material 8-A and 8-B (KØJ)... 70 5.2.2. Material 8-C (KØJ)... 70 5.2.3. Material 8-D and 8-E (KØJ)... 71 5.2.4. Material 8-F (KØJ)... 73 5.2.5. Material 8-G and 8-H (JRS)... 74
5.2.6. Material 8-I (JRS)... 76 5.2.7. Material 8-J (KØJ)... 80 5.2.8. Material 8-K (JRS)... 81 5.3. Part Conclusion of Textual and Contextual Discourse Analysis (Both authors)... 82 5.4. Critical Discourse Analysis (Both authors)... 83 5.5. Research Question 2: Theoretical, Postmodern Recommendations for Vestas Communication (Both authors)... 85 5.5.1. Case Study Finding: Prescriptive Shareholder Focus (Both authors)... 85 5.5.1.1. Recommendation: Emergent Stakeholder Focus (Both authors)... 87 5.5.2. Case Study Finding: Organisation-Centric Rhetoric and Contextual Inconsideration (Both authors)... 88 5.5.2.1. Recommendation: Stakeholder Enabling and Contextual Consideration (Both authors)... 91 5.5.3. Case Study Finding: Insufficient Accommodation to Attributed Crisis Responsibility (Both authors)... 93 5.5.3.1. Recommendation: Accept Crisis Responsibility (Both authors)... 95 6. Discussion (JRS)... 97 6.1. Research Question 3: Pragmatic Critique and Applicability of Postmodernism to Business Contexts (KØJ)... 97 6.1.1. Critique of the Emergent Approach to Strategy (JRS)... 97 6.1.2. Critique of the Complex Broad Approach to Crisis Management (KØJ)... 99 6.1.3. Critique of Postmodern Approaches (KØJ)... 99 6.1.4. Critique of Micro Level Two-Way Communication (JRS)... 101 6.2. Research Question 4: Reflections on Ethics and Normativity in Vestas (Both authors).. 102 6.2.1. Postmodern Normativity (Both authors)... 103 6.2.2. Normativity in Vestas Communication (Both authors)... 104 6.2.3. Implications of a Postmodern Approach to Normativity (Both authors)... 105 7. Conclusion (Both authors)... 110 8. Critique of Method (Both authors)... 113 9. Bibliography... 114 10. Appendices... 118
1 1. Introduction The following chapter will introduce the master thesis by, firstly, presenting a motivation for writing the thesis, which leads to the formulation of the problem statement and the research questions. In addition, the structure of the thesis as well as the scientific background on which it is based will be outlined. Next, the theoretical and methodological framework is presented, which explains the approach taken to investigating the problem statement, and finally, delimitations are addressed. 1.1. Motivation Many theorists advocate and argue for an acceptance of the concept of postmodernism as a characteristic of the current point in time. In addition, postmodernism is included in many different fields such as arts, literature and music and its acknowledgements have, during the last decades, spread to other fields as well. As a concept, postmodernism can, at its point of departure, be considered very complex and intangible to define and take into consideration. Despite this fact, this thesis argues that if postmodernism can generally be considered as a characteristic of the current point in time, this means that more pragmatic business fields such as corporate communication and stakeholder relations should also consider this important concept as a common denominator for the current context. Based on this, it becomes interesting to research the connections between the comprehensive theoretical conceptual fields of corporate communication and stakeholder relations in a postmodern context. In addition, it is interesting to add an inclusion of crisis management to the work as a further implication of context. This combination can be expected to increase the interest of the postmodern debate in business and, in particular, in the mentioned theoretical and practical fields, but more importantly to lead to some evaluation of the actual relevance of postmodernism for business contexts. In order to discover how these theories can be applied to realistic crisis contexts, a case study is conducted of an organisation experiencing a crisis. In this connection, the authors of the thesis consider the identification of a crisis, which can be regarded as context-dependent, as an important requirement for the choice of case study. The Danish multinational organisation Vestas has for the past years experienced a large range of crisis events, which all, ultimately, can be argued to relate
2 back to the challenges of the global financial crisis. Based on this fact, it becomes interesting to research how Vestas has managed its crisis from a communicative and stakeholder relations management viewpoint, and, accordingly, to evaluate the degree to which a concern for the postmodern context has been acknowledged. Furthermore, it is anticipated that the work with a real organisation experiencing an actual problematic crisis situation can enhance the focus on a more pragmatic outcome of the thesis, as the benchmarking of a comprehensive theoretical framework to a business case increases the usability and the sense of reality related to such theoretical thesis construct. Therefore, the goal of the thesis is, ultimately, to discover whether the ideally theoretical concept of postmodernism, by its application to a business case study, can be realised at a more pragmatic level. Also, the thesis seeks to normatively assess whether the concept of postmodernism and its application to a business context influences the ethical, normative foundations of organisations and if this, in turn, can be expected to influence the communication and relations with important stakeholders. As the thesis at hand is founded on the scientific paradigm of social constructionism, it is important to acknowledge that the solution provided only constitutes one possible solution, which can be argued as a product of the subjective influence of the authors of the thesis and their own context, knowledge and inherent preconditions for conducting such research. 1.1.1. Problem Statement and Research Questions The problem statement of the thesis is: This thesis sets out to explore the connections between stakeholder relations management and corporate communication in a postmodern crisis context. In order to guide the research to be conducted and ultimately answer the problem statement posed above, the following research questions have been constructed: 1. From a theoretical viewpoint, what characterises a postmodern approach to organisations communication and stakeholder relations management in a complex broad crisis context?
3 2. Based on discourse analysis, to what degree has Vestas taken into consideration its postmodern reality and crisis context and which recommendations can, on basis of this and the theoretical framework, be given to organisations for managing their stakeholder relations and communications? 3. Does the assessment of the proposed recommendations practical applicability in business contexts alter when re-evaluated on basis of existent critique of the theories on which the thesis is based? 4. With point of departure in the analysis, which normative and ethical approach seems to dominate Vestas communication and how is this challenged by postmodernism? 1.2. Structure of Thesis The thesis has been structured so as to answer the above presented research questions. With this, the theoretical chapter (Chapter 2) will provide an answer to research question 1, the analysis (Chapter 5) will provide an answer to research question 2, the first part of the discussion (Chapter 6.1) will provide an answer to research question 3, the second part of the discussion (Chapter 6.2) will provide an answer to research question 4, and finally, the conclusion will sum up on the findings from all four research questions by providing an answer to the problem statement. A more detailed structure of each of the chapters is provided below. Firstly, the theoretical chapter will go through a presentation and discussion of the theoretical fields on which the thesis is founded. The first section of the theoretical chapter concerns strategy and looks at emergent and prescriptive approaches, respectively. The chapter then progresses to a section on postmodernism and the concepts within this term. From the account of postmodernism, which will largely be used as a contextual influencer in terms of how contemporary organisations manage their stakeholder relations management and corporate communication, the theoretical chapter proceeds to a longer section about one of the thesis two main theoretical topics, stakeholder relations management. In this section, focus is on contemporary approaches to management of stakeholders as well as levels from which to approach this. Following this, the second main theoretical field, corporate communication, is then turned to. In this section, the development of models of public relations is discovered and specific considerations for communicating with employees and shareholders, respectively, are presented. Lastly, some
4 postmodern implications of two-way communication are presented, which draw in some postmodern aspects that challenge the ideal of two-way symmetrical communication. Finally, crisis management will be presented as the last theoretical area, which is also largely contextual. In this section, a contemporary understanding of the field is presented and the implications this has for corporate reputation management. The final section of the theoretical chapter provides an answer to research question 1, namely what, from a theoretical viewpoint, characterises a postmodern approach to organisations stakeholder relations and corporate communication in a complex broad crisis context. After the theoretical chapter, a chapter on the methodology used to explore the case study at a later point is presented. This chapter presents the underlying basis of and justification for the qualitative research strategy employed in the analysis of the communication material from Vestas as well as the methodological basis for conducting textual, contextual and critical discourse analysis of the communication material. This methodology of discourse analysis has a rather theoretical character but is presented in the methodology chapter, and not the theoretical chapter, because it represents the methodological approach to qualitatively researching and analysing the data. Apart from the mentioned sections on method of discourse analysis, the methodological chapter also contains a justification of the methodological approach taken (largely on basis of the scientific stance of social constructionism) and sections relating to the selection, research and evaluation of data. Lastly, the chapter includes a section on business ethics and normativity, which is to be applied in the answer to research question 4. Before initiating an analysis of whether Vestas, as the organisation chosen for the case study, has taken its postmodern crisis context into consideration, it is relevant to first present the case organisation as well as the contextual factors which serve as the foundation for the application of the case study. This is, hence, the primary function of chapter 4. In addition, this chapter serves the function of presenting the communication material, which will be analysed. The thesis then proceeds to the analysis, which is initiated by a stakeholder analysis that maps Vestas general stakeholder environment and then narrows down to focus on employees and shareholders specifically and what their salience can be assumed to be. This analysis is conducted by the use of the analytical tools presented in the methodological chapter.
5 Having done this, the analysis moves on to the actual discourse analysis in which the communication material from Vestas will be analysed according to the relevant dimensions of textual, contextual and critical discourse analysis, respectively. Not all analytical tools from each of the analytical frameworks are equally relevant for the material at hand, and therefore, their inclusion differs. After having conducted the actual analysis of the communication material, the analysis chapter will present an answer to research question 2, namely the recommendations which, from a purely theoretical viewpoint but based on the analysis, can be given to Vestas for managing its stakeholder relations management and corporate communication. After having provided an answer to research question 2, the thesis moves on to the discussion in which the first section seeks to provide an answer to research question 3 by critically assessing the recommendations given in the previous chapter. Because of the largely theoretical and exploratory nature of the thesis as well as the (for a business context) rather untraditional use of the concept of postmodernism, it is useful to further consider the recommendations created at the end of the analysis in relation to criticism of the applied theoretical framework. This will enable an answer to research question 3 and provide the thesis with a more realistic and pragmatic conclusion, which specifically addresses the expected challenges that an adherence to a largely theoretical topic like postmodernism have for the practical applicability of the communicative recommendations. Finally, the last section serves to provide an answer to research question 4, which will re-evaluate the relevance of postmodernism in business decisions and communication on a normative level. With point of departure in the analytical findings, the thesis seeks to reach a more normative than instrumental level by assessing which normative stance Vestas seems to has worked from. The basis for such assessment will, as mentioned, take point of departure in the analytical findings, i.e. the communicative approaches. The findings from this normative assessment will also be seen in the light of postmodernism in order to understand how this concept may influence or challenge the normative core of a given organisation. 1.3. Theory of Science: Social Constructionism The social constructionist paradigm has been chosen as the foundation of this thesis due to its large applicability and relevance for the field of communication and due to the fact that it is originated in postmodernism (Burr, 2001), on which the thesis is based. The social constructionist
6 paradigm encourages a critical stance towards what we believe to be the truth i.e. how the world and everything in it is perceived (Burr, 2001). More specifically, social constructionism invites us to be critical of the idea that our observations of the world unproblematically yield its nature to us, to challenge the view that conventional knowledge is based upon objective, unbiased observation of the world (ibid:3). This paradigm is relevant since both the thesis at hand as well as social constructionism revolve around communication. In the social constructionist worldview, communication as the idea of no one singular truth contradicts the traditional ways of communicating set messages to a specific audience. Instead, communication would require the communicator to gain a larger understanding of the receivers, since these cannot be expected to perceive the communicated message in the way intended. In a social constructionist world, communication is receiver-oriented rather than sender-oriented: The meaning and understanding of the world including communication is not generated by the sender, but in the social interaction among the participants of a communication process: Language and all other forms of representation gain their meaning from the ways in which they are used within relationships (...) The individual mind (thought, experience) does not thus originate meaning, create language or discover the nature of the world. Meanings are born of coordinations among persons agreements, negotiations, affirmations. (...) This suggests that any words, phrases or sentences that are perfectly sensible to us now could, under certain conditions of relationship, be reduced to nonsense (Gergen, 1999). Hence, from a social constructionist view, language is what constitutes the world and the relations among people: this is specifically relevant for this thesis as it sets out to explore how organisations can communicate with its stakeholders in the best way possible in relation to the challenges of postmodernism i.e. how does the world we live in today suit the approaches and strategies to communication and stakeholder management that organisations adopt? How do the individual realities of the multiple stakeholders an organisation has require different approaches to communication? Etc. As can be concluded from the above definition of social constructionism and its influence on communication and meaning generation, there is a need for organisations to adapt their communication in order to suit the context, as not doing so could mean that the messages are less likely to be received and perceived in the intended way by receivers and thereby creating a gap between the organisation and its stakeholders. Gergen argues that social constructionism celebrates reflexitivity, i.e. the attempt to place one s premises into question, to suspend the
7 obvious, to listen to alternative framings of reality, and to grapple with the comparative outcomes of multiple standpoints (ibid:50). This emphasises the relevance of including stakeholder analysis at a more comprehensive level in organisations, as doing so will enable the organisation to listen to these alternative framings. As will also be presented more thoroughly at a later point, social constructionism suits the qualitative research approach of discourse analysis well. The use of detailed textual discourse analysis as well as contextual and critical discourse analysis is expected to enable a deconstruction of the messages communicated by an organisation and an exploration of how these, in turn, can be expected to influence stakeholders and their image of an organisation in crisis, in a way that is in accordance with the social constructionist paradigm. Finally, it is relevant to comment on the thesis choice of the term social constructionism over social constructivism. This has been made according to an argument by Gergen, stating that it is the understanding of what is real that differentiates the two: for constructivists the process of world construction is psychological; it takes place in the head. In contrast, for social constructionists what we take to be real is an outcome of social relationships (Gergen, 1999:237) Hence, the latter definition of constructionist, suits the topics of the thesis, including its acknowledgement of the postmodern reality, as well as the explorative nature of the thesis problem statement and research questions presented in section 1.1.1. 1.4. Theoretical and Methodological Framework The following section serves to establish an overview of the different theoretical fields applied in the thesis in order to establish each theoretical contribution s relevance for the thesis at hand and the problem statement as well as to clarify the connections between the theoretical fields. Also, the section will prepare the reader for the methodological chapter to come. Four main theoretical fields will be drawn on in this thesis: postmodernism, crisis management, corporate communication and stakeholder relations management. Based on their purpose for the thesis, these four main theoretical fields can be argued to represent two different functions, and hence, be divided into two main theoretical sub-groups, namely a contextual and a conceptual framework. As will be further explained in the following, postmodernism and crisis management theory are positioned within the contextual framework whereas corporate communication and stakeholder relations management are positioned within the more conceptual framework.
8 To start out with a description of the theories within the more contextual framework, namely postmodernism and crisis management, these are classified as contextual because they, rather than being specific conceptual theories to be applied in specific analytical connections, represent the outlook from which the conceptual fields are considered. The theories for the contextual and conceptual framework, in combination, aid the answer to the problem statement, namely to make an exploration of the connections between stakeholder relations management and corporate communication in a postmodern crisis context. In terms of the first theory positioned within the contextual framework, namely postmodernism, the definition of this field as well as its move from a modern to a postmodern era, is primarily based on contributions from Firat and Venkatesh (1995) and Cova (1996). When presenting the main concepts of postmodernism to be included in the thesis, several other scholars contributions are drawn upon, namely Parker (1992), HIR Editors (2010), Yazdani, Murad, & Abbas (2011), Macdonnell (2002) and Hazen (1993). The section on postmodernism is substantial for every part of the thesis since this, along with (and to a large degree in accordance with) the scientific stance of social constructionism is determinant for the application and understanding of all other theoretical fields employed as well as for the analysis and recommendations that will be developed. In this way, the concepts that will be represented in the section on postmodernism permeate the authors view on all other sections in the thesis. The second theoretical field, which is also considered as being within the contextual framework, is crisis management. This is considered as being within the contextual framework because it deals with major contemporary tendencies within the theoretical field of crisis management rather than dealing with actual communication strategies from the field of crisis communication. In this way, this section deals to a higher degree with different theoretical propositions for how different perceptions of and approaches to crisis management are likely to influence the given organisation s reputation post crisis than with actual approaches to respond to crises. As one of the most widely cited scholars within the field of crisis management, Timothy Coombs (2007) serves as the primary contributor for the definitional and developmental understanding of crises. However, when the section turns towards the presentation of a contemporary view on crisis; that they are complex processes rather than static events, this is primarily based on the contributions from Frandsen and Johansen (2007) and Ulmer (2007). Finally, Coombs contributions are drawn
9 upon again when the last section of the crisis chapter touches upon corporate reputation management, and, in particular, Coombs SCCT framework. In contrast to postmodernism and crisis management theories, which, for the purposes of this thesis, serve as contextual theories that provide guidance for the approach taken to the additional elements of the thesis, the conceptual theories, namely stakeholder relations management and corporate communication, provide some more specific tools to be applied in the analysis. To start out with stakeholder relations management, this constitutes an important part of the theoretical background of the thesis and is included due to its absolute relevance seen in the light of the postmodern and social constructionist background of the thesis. In short, this relevance consists of the fact that one of the most prevailing and continuously accentuated aspects of postmodernism in a corporate communication context is stakeholder consideration and inclusion. Hence, postmodernism s strong focus on stakeholders naturally gives rise to the inclusion of a section on stakeholder relations management. In this section, focus is first put on the development within the field and what the contemporary insights into the field advocate. In these sections, theoretical contributions are provided by Goodpaster (1991), Freeman (1984), Friedman and Miles (2006) and Donaldson and Preston (1995). Donaldson and Preston also provide the main insights into the categorisation of stakeholder theory, which divides stakeholder theory into three main groups: normative, descriptive and instrumental. Within normative theorising, the main contributors are Kantian ethics as presented by Friedman and Miles (2006), whereas the main theoretical contribution in the section on postmodern normative theorising is provided by Calton and Kurland (1995). Finally, within the section on instrumental and descriptive stakeholder theory, Freeman s (1984) and Friedman and Miles (2006) contributions are used interchangeably. When the section moves on to a presentation of theoretical suggestions for how organisations can manage stakeholder salience, a contribution is provided by Mitchell, Agle & Wood (1997). The other conceptual theoretical field that will be included in the thesis is corporate communication. This theoretical field is included because it, as was also the case with stakeholder relations management, proves relevant for the thesis at hand based on the social constructionist and postmodern stance on which it is based. Just as stakeholder consideration and inclusion were accentuated as important features from postmodernism (especially in relation to stakeholder relations management), so are concepts such as dialogue, two-way symmetrical communication
10 and contextually adapted rhetoric also key terms from the postmodern worldview concepts, which emphasise the importance of a theoretical section on corporate communication. This section includes a general introduction to the field of corporate communication and its importance, which primarily draws upon contributions from Cornelissen (2008) and Burr (1995). However, contributions from Calton and Curland, (1995) and Donaldson and Preston (1995) are also included. The section then continues to a presentation of public relations and, the development within this field and what the most contemporary contributions from the field suggest as being most appropriate. The development of PR has primarily been based on contributions from Grunig and Hunt (1984 & 1992), and concludes that two-way symmetrical communication is the contemporary ideal that organisations should pursue in their communication. However, several scholars within the field of postmodernism pose points of criticism towards two-way symmetrical communication, which will, hence, follow. This section is primarily based on contributions from Curtin and Gaither (2005) and Holtzhausen (2009). As the final parts of this chapter, two sections are presented that revolve around communication specifically with employees and shareholders since these stakeholder groups, as will be explained at a later point, are of primary focus throughout the thesis. The section on communication with shareholders is primarily based on contributions from Ryan & Jacobs (2005), but also draws upon notions from Kelly, Laskin, & Rosenstein (2010), Brown (1994), Argenti (2006) and Guimard (2008). The section on communication with employees is based on an ASB cast with Helle Aggerholm (2009). The methodological approach that will be taken in order to apply the theoretical framework presented above to the case study is, as will also be elaborated on in chapter 3, textual, contextual and critical discourse analysis. These methodological approaches are deemed appropriate for answering the problem statement because qualitative assessments of communicative events are primary for the exploration of the connections between stakeholder relations management and corporate communication in a postmodern crisis context and on basis of a social constructionist scientific foundation. The specific relevance and application of each methodological approach will be further explained in chapter 3. 1.5. Delimitations Throughout the thesis, different delimitations exist both in relation to theory, method and analysis; e.g. delimitations in relation to selection of stakeholder groups, methodological approaches to
11 research as well as analytical evaluations. However, these delimitations will not be further explained in this section since each delimitation will be addressed in the respective sections. However, an overall delimitation that pervades throughout the thesis, and which is closely related to social constructionism as the thesis scientific paradigm, consists of the fact that the theoretical nature of the thesis entails a subjective research approach to e.g. selection of theories, understanding of their correlation, as well as the interpretation of analytical findings. Hence, it is emphasised that any results reached or conclusions drawn throughout the thesis are a result of the authors subjective understanding and context.
12 2. Theory The theoretical chapter, which follows, will present four main theoretical fields that have been selected because they, in combination, are deemed appropriate for answering the problem statement, namely to explore the connections between stakeholder relations management and corporate communication in a postmodern crisis context. As mentioned in the theoretical framework (cf. section 1.4), the functions of postmodernism and crisis management as theoretical fields are mainly contextual, whereas corporate communication and stakeholder relations management serve mainly as conceptual contributions to the analysis. However, in spite of this, the structure of the theoretical chapter presents firstly postmodernism, then stakeholder relations management, then corporate communication and, finally, crisis management; with this, postmodernism represents a broad foundation for the more specific and conceptual fields of stakeholder relations management and corporate communication, and finally, crisis management broadens the view again and provides a second contextual framework to consider the matter from. 2.1. Two Approaches to Strategic Management: Prescriptive and Emergent The following section will, albeit rather briefly, introduce the emergent and the prescriptive approaches to strategic management and the implications that each of the approaches poses to organisations. This section on strategic management is not included so as to provide an actual theory for the analysis but rather serves to illuminate the lens through which strategic management will be considered in this thesis. According to Richard Lynch (2009), a main contributor within the field of strategic management, the prescriptive approach is characterised as a strategy where the objective(s) and steps for achieving these are defined in advance. Hence, this strategic process assumes largely that organisations can see ahead often for several years, which is in fact also the main disadvantage with the prescriptive approach: it largely ignores innovation and puts the organisation in a challenging position if the environment is turbulent or if unforeseen matters occur (ibid.). On the contrary, within the emergent approach the final objective(s) is unclear, and hence, this approach advocates more flexible strategising that can quickly adapt to environmental changes or unforeseen occurrences. However, this is also the disadvantage of the emergent approach: almost all organisations need to set some objectives, and for many stakeholders, the clearer the objectives are, the easier it is for them to pursue them (and thereby for the organisation to reach goals and
13 thereby growth) (ibid.). Hence, according to Lynch, organisations should strive for strategic planning that take on both prescriptive and emergent processes, which, ideally, would provide ground for a situation in which all stakeholders have clear objectives to pursue and know how to do so, while at the same time devoting resources to the development of new ideas, innovation, and proper actions to take in times of turbulence. As will become evident throughout the thesis, the emergent and prescriptive approaches described within strategic management are representative for other business areas, only under a variety of labels ; within crisis management, the processes range from the narrow perspective, representing a more prescriptive approach in which crises are considered as single events, to the complex broad perspective, representing the more emergent approach in which crises are considered processes. Within stakeholder theory, the more prescriptive approach to management is defined as the neoclassical theory, which centres on profits via planning (i.e. a more prescriptive approach) versus the socio-economic theory, which, by focusing more on the process (and its participants) rather than the end result, represents the more emergent approach. Similarly to the above-presented examples, parallels can be drawn from strategic management to most fields of organisational theories. Common for all, regardless of how they term the different approaches, is that the vast majority of contemporary scholars and practitioners advocate the emergent approach over the prescriptive approach on an ideal level, but also acknowledge that in reality, a combination of the two approaches proves more realisable, profitable and sustainable. Hence, with these insights, the purpose of this section is to establish the fact that throughout the entire thesis, the emergent approach is considered ideal because of the postmodern society to which organisations must respond, however, it is also acknowledged that prescriptive strategising is necessary to some degree. 2.2. Postmodernism The following section of the theoretical chapter serves to provide an overview of postmodernism as a paradigm, which will be used throughout the thesis as a method of reflection and a main contextual theoretical field. The presentation of the different aspects of postmodernism in this section has not been structured according to the relative importance or the general acceptance of each aspect within the postmodern research society, but rather, according to their relevance for the thesis at hand. Furthermore, it should be noted that even though (Post)modernity refers to a time period and (post)modernism refers to the cultural conditions associated with (post)modernity
14 (Firat & Venkatesh, 1995:240), the two terms will, for the sake of simplicity, be used interchangeably for the remaining part of this chapter and thesis in general. To define postmodernism would, according to scholars within the field, contradict the very foundation of the concept itself. However, there is a widespread agreement on certain topics that can be argued as central to the postmodernist way of thinking, e.g. the rejection of metanarratives and the rejection of a single logic to history (HIR Editors, 2010). In an attempt to provide a more clear explanation of the topic, Firat & Venkatesh argue that postmodernism has emerged not only as a critique of modernism and its foundational domination over established constructs in consumer culture, but, in its own right, it also has emerged as a new philosophical and cultural movement (1995:239). With this, postmodernism is not only some points of view but is, according to Firat and Venkatesh in fact a holistic field of thought. Cova further argues that Fragmentation, indeterminacy and intense distrust of all universal or totalizing discourses are the hallmark of postmodernist thought (1996:16). As will become evident throughout the thesis, these concepts are primary for postmodernism s influence on businesses. A final contribution by Parker, which seems especially relevant for the communication thesis at hand is relevant to include as he states that: ( ) we are advised to stop attempting to systematize, define or impose a logic on events and instead to recognize the limitations of all our projects. The role of language in constituting reality is therefore central, and all our attempts to discover truth should be seen for what they are forms of discourse (1992:3). Parker s emphasis on language and how this constructs reality is appropriate for the purposes of this thesis and hence, his understanding is acknowledged throughout the thesis. 2.2.1. From Modernism to Postmodernism In order to better understand postmodernism, it is useful to view it in relation to modernism, which is the paradigm preceding it (Cova, 1996). Firat and Venkatesh have put up six points of critique towards modernism with related arguments for how postmodernism comes to terms with these points of critique, some of which will be presented in the following. Firstly, Firat and Venkatesh present the fact that whereas modernism was guided, to a large degree, by science, rationalism and technology, postmodernists point out that what we see around us are not just the product of science and technology, but the processes of cultural presence that include aesthetics, language, discourses and practices (1995:240). The point of criticism towards modernism, then, consists of the fact that it is unable to grasp the complexity of the reality and of social beings. The postmodern quest becomes to liberate the consumer from this, according to Firat and Venkatesh,
15 too rational scheme (ibid:240). Firat and Venkatesh also emphasise the fact that modernism tended to reduce the world into (too) simple categorizations, such as subject/object, male/female, producer/consumer, signified/signifier, and so on (ibid:240). Such dichotomies are, in the postmodern philosophy, unsuccessful, based on the fact that according to postmodernism, the world can never be this black and white (ibid:242). Firat and Venkatesh also stress the fact that in modernism, consumption was focused on the end product, which is criticised by the postmodern line of thought, arguing that consumption is a process of value producing activity rather than one, static point of consumption (ibid.). With this it becomes evident that the modernist idea of one single reality is rejected by postmodernists, just like postmodernism rejects epistemological assumptions, refutes methodological conventions, resists knowledge claims, and overall contrasts the modernist idea of one single reality (Cova, 1996:16). 2.2.2. Concepts of Postmodernism The next section of this chapter seeks to identify some of the main characteristics and concepts of postmodernism. One of the most central aspects of postmodernism consists of the fact that the individual is perceived on its own rather than as a small part of a larger whole, with collective ideals of how to live (Cova, 1996). This change in perception has also entailed an actual empowerment of the individual: (...) it has been said that we have now entered the time of the ordinary individual, an age in which anyone can and must take personal action so as to produce and show one s own existence, one s own difference (ibid.:18). Individualisation is closely related to the concept of fragmentation, which deals with the ways in which individuals understand reality. In relation to this, no one reality is more correct or appropriate for a given context than another; fragmentation means literally, the breaking up into parts and erasing of the whole, single reality into multiple realities, all claiming legitimacy, and all decoupling any link to the presumed whole (Firat & Venkatesh, 1995:253). Since communication is a central part of the thesis, it is relevant to connect this to the concept of fragmentation; in this respect, fragmentation implies that any subject to which one communicates has its own reality and own claims, and hence, no one communicative event s legitimacy can be anticipated. Discourse is another relevant aspect to focus on in relation to this section on postmodernism because of its close connection to communication, which is a central topic of this thesis. As was the case with the preceding notions, when it comes to discourse and communication, there are also clear differences in the modern and postmodern viewpoints; the discourse of modernity rests on the transcendent criteria such as progress and reason. Postmodern discourse on the other
16 hand, analyzes social life in terms of paradox and indeterminacy and rejects all metanarratives and overarching guiding principles, religion, science, objectivity, rationality and the notion of truth (Yazdani, Murad, & Abbas, 2011:249). Furthermore, according to Yazdani et al., postmodern discourse ( ) rejects the human agent as the center of rational control and understanding (ibid.:252). This emphasises the link between postmodernism and social constructionism as it stresses the fact that communication is largely contextual and objective rather than a subjective narrative. This viewpoint is supported by Macdonnell, arguing that discourses differ with the kind of institutions and social practices in which they took shape, and with the positions of those who speak and those whom they address (Macdonnell in Holtzhausen, 2002:253). With this, the postmodern understanding of discourse becomes evident, establishing that any communicative event or discourse depends on the context in which it is produced and consumed and, hence, the interpretation of it differs accordingly. When Hazen states that postmodern existence calls us to listen to one another in all our multiplicity and uniqueness (Hazen, 1993:15), this stresses the importance of organisations and managers as producers of discourse to acknowledge that due to the fact that a high degree of multiplicity and uniqueness exist among their various stakeholders the different stakeholder groups interpretation of organisational discourse is, likewise, likely to be diverse. This postmodern understanding of discourse is closely related to the thesis social constructionist foundation, which, as mentioned in section 1.3, implies a receiver-oriented approach to communication. As was pointed out in the beginning of this section, postmodernism is acknowledged as constituting the contemporary reality and hence, it will be used throughout the thesis as a method of reflection. Based on this argument, organisations success can, to a large degree, be assumed to depend on their ability to acknowledge and manage the implications that this paradigm upholds, and therefore, the concepts of postmodernism will, continuously throughout the thesis, serve as tools of evaluation for whether the current reality has been considered or not. This thesis adopts the basic principles of postmodernism and the challenges it poses to many aspects of corporate communication in the current context. However, criticism has also been raised towards postmodernism, some of which is presented in the following, which question the practical applicability of postmodernism in organisational settings. A major point of critique towards postmodernism is its rejection of truth because it, as Parker states, is a dangerous, and potentially disabling set of ideas for critical organization theorists to adopt. This is because I believe that any emancipatory project is not well served by giving up entirely on notions of truth