Marketing communication: principles and practice

M A N A G I N G W I T H S T A K E H O L D E R S
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1 The term ‘corporate’ here is taken to mean the total social collectivity, as distinct
from the minority dominant coalition or shareholder groups. Thus this is premised
on a total system model of organizing.

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The RSA study advocates inclusion, and values the interest of stakeholder
groups. Where important internal stakeholder groups are involved, other
studies have shown that they are more willing to come forward with ideas,
feel able to express ideas, and trust the corporation to use rather than criticize
the ideas that are put forward. Drawing in, and including stakeholders, means
identifying them, and then using communication to establish a dialogue with
them which allows for:
• the expression of interests
• clarification of interests
• conciliation of what may be conflicting interests
Communication is central to the approach of the RSA’s study, and
communication between people is the core of business activity.
Interdependence is not the same as unity
Communication enhances group effectiveness, partly by limiting the
destructive effects of social dilemmas – situations in which members are faced
with a conflict between maximizing personal interests and maximizing
collective interests. Communication enhances cooperation. Increasing
diversity and uncertainty increases the likelihood that people will concentrate
on serving their own interests. Intelligent communication can offset this
tendency for the benefit of all contributors. Carter (1999) is clear that
management in the ‘renaissance organisation’ will be concerned to accom-
plish the ‘alignment and co-ordination of individuals in such a way to enable
them to make a high-value energy contribution to an organisation, both to
sustain that organisation and to meet their own needs’ (Carter 1999: 211).
The pursuit of economies of scale, which may lower prices but cost us in
terms of remoteness and lost understanding, is being abandoned in favour
of intimacy and understanding. Smaller units can be more symmetrical and
exhibit reciprocity, embodying emotional range beyond mere abstract rules.
The profusion of smaller units demands greater connectivity and thus more
communication between as well as within groups. Paradoxically, as more
connexity (interconnectedness) arises, people want membership of small cells
(Mulgan, 1997). Thus society and its corporations are becoming cellular
structures held together by communication.