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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73 Marketing communication principles and practice Richard J Varey

M A N A G I N G W I T H S T A K E H O L D E R S
107


stakeholders as providing a ‘licence to operate’. Halal (1996) demonstrates
that business is a socio-economic institution in which democracy and enter-
prise can operate harmoniously if there is cooperation between the various
stakeholders who balance their various interests and responsibilities. This
requires cooperation. When business is about dividing the finite ‘pie’, it 
is competitive; when it is concerned with creating the ‘pie’, then business is
cooperative.
Halal (1996) provides considerable evidence of a fundamental shift from
rigid bureaucratic forms of business organization towards organization around
changing clusters of entrepreneurial units working together to form ‘internal
markets’ which are integrated into a ‘corporate community’ that unites the
interests of investors, workers, clients, business partners, and the public.
Managers create the organizational structure, communication channels and
activities, and financial systems that support the internal enterprises and
stakeholders, connect them together, and coordinate their functions (Halal,
1996: 91). Moore (1996) has spoken of ‘total system leadership’ in place of
outmoded competition.
CONCEPTS OF COMMUNICATION AND
COMMUNICATION PURPOSE
When hierarchy and control were the only sensible way to run a business
enterprise, we accepted the frustrations of delayed and distorted
communication, and islands of local coherence set in a wider sea of poor
cooperation, as the inevitable character of big ‘organizations’. We envisioned
our workplace as a huge machine with ourselves as small cogs. The new
engineering and science of electricity and computers gave us a pipeline notion
of ‘communications’ messages that could cascade down reporting lines.
Things, we can readily observe, are changing.
Mulgan sums up the rally call for the new management of the connected
future world:
In a democratic culture . . . people expect some engagement in the
causes they give their life to, even if their engagement comes through
the contract of work. They expect their emotions and motivations to
be engaged. If the work is creative, or uncertain, or if it demands that
they respond quickly to the needs of customers in ways that cannot be
clearly specified, then it is essential that something beyond narrowly
defined function should bind them into the organisation [sic]. If
communication is richer and more ubiquitous, then it is natural that it
does more than pass down commands or pass up results, but rather
communicates emotions and desires too. 
(Mulgan, 1997: 243)
If some of us can achieve this vision, then we will have become good managers
and good at being managed. Such should be the desire of the designers and

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