Benchmarking Impact of Online CSR Conversations on Corporate Reputation

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Benchmarking Impact of Online CSR Conversations on Corporate Reputation Nikkie Vinke - Tilburg University

description

Corporate social responsibility (CSR), or a company‟s commitment to improve societal well-being through discretionary business practices and contributions of corporate resources (Kotler & Lee, 2005), is becoming more integrated into business by growing numbers of organizations. However, allowing an organization to truly leverage its CSR potentials via communication on the topic of CSR, remains a difficult subject for many companies. With the emergence of social media, new possibilities for reaching out to stakeholders have presented themselves. This study explores these possibilities through a benchmarking study of three European telecom providers. Throughout the thesis, the motivations of individuals to engage with a brand on the social networks Facebook and Twitter are taken into account. This study further investigates the consequences for the evaluations of these brands by the „fans and followers‟. Content analysis of the posted messages revealed that of the three companies, not a single one designates substantial amounts of attention to CSR-topics in their communication through social networks. Interaction with stakeholders on the topic was also scarce. Results of a survey among social media users showed that motivations for engaging with a brand differ per network. Facebook-users generally are driven more intensely by a need for information, remuneration, entertainment, identity, and interaction than Twitter-users. Additionally, it appeared that brand interaction through Facebook has the most positive influence on the perception of the brand by the individual. Nevertheless, respondents preferred Twitter as a channel for information about network disturbances and for webcare purposes, in which the channel can contribute to protecting the corporate reputation. Key words: corporate communication, corporate social responsibility, CSR communication, reputation management, social media, social network sites, uses and gratifications. This study was presented at the Social Media for Social Purposes Conference, Copenhagen, Denmark, October 31, 2011.

Transcript of Benchmarking Impact of Online CSR Conversations on Corporate Reputation

Page 1: Benchmarking Impact of Online CSR Conversations on Corporate Reputation

Benchmarking Impact of Online CSR Conversations on Corporate

Reputation

Nikkie Vinke - Tilburg University

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In the age of social media, stakeholders are in charge

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Overview

Introduction

Method

Results

Conclusion & discussion

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Overview

Introduction

Method

Results

Conclusion & discussion

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Introduction • Corporate Social Responsibility (CSR) contributes to a

strong corporate reputation, which offers a company many benefits (Fombrun, 1996; Fombrun & Shanley, 1990).

• Social media offers businesses new opportunities to communicate with stakeholders.

• Research on CSR communication through social media is scarce, but growing.

• Current study explores characteristics and possibilities of employing social media as a platform to communicate about CSR and its impact on corporate reputation.

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Overview

Introduction

Method

Results

Conclusion & discussion

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Method (1)

• Research case: European telecom. Company A (Ireland), Company B (Netherlands), Company C (Belgium)

• All companies have established CSR-strategies. • Actively using social media to communicate

with stakeholders.

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Method (2)

• Study 1: Content analysis Coding of messages posted by the companies on

Twitter and Facebook. Categorized by topic of content.

• Study 2: Online survey Questionnaire examining: user motivations (Muntinga et al., 2011) appreciation of social media activities (results Study 1) corporate reputation (Walsh et al., 2009)

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Overview

Introduction

Method

Results

Conclusion & discussion

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Results Study 1: Content Analysis Topic A

Facebook A

Twitter B

Facebook B

Twitter C

Facebook C

Twitter

Products and services

6.8% 5.7% 10.3% 10.4% 24.5% 35.4%

Entertainment

16.7% 3.9% 44.4% 44.0% 12.0% 2.0%

Promotions and competitions

41.7% 22.7% 33.3% 24.6% 22.4% 5.2%

Internet safety

1.0% 0.1% 0.0% 1.1% 0.3% 0.9%

CSR

2.6% 0.3% 2.6% 4.1% 11.3% 3.5%

Network disturbances

0.0% 0.0% 0.0% 0.0% 5.5% 16.1%

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Results Study 1: Content Analysis Topic A

Facebook A

Twitter B

Facebook B

Twitter C

Facebook C

Twitter

Products and services

6.8% 5.7% 10.3% 10.4% 24.5% 35.4%

Entertainment

16.7% 3.9% 44.4% 44.0% 12.0% 2.0%

Promotions and competitions

41.7% 22.7% 33.3% 24.6% 22.4% 5.2%

Internet safety

1.0% 0.1% 0.0% 1.1% 0.3% 0.9%

CSR

2.6% 0.3% 2.6% 4.1% 11.3% 3.5%

Network disturbances

0.0% 0.0% 0.0% 0.0% 5.5% 16.1%

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Results Study 1: Content Analysis Topic A

Facebook A

Twitter B

Facebook B

Twitter C

Facebook C

Twitter

Products and services

6.8% 5.7% 10.3% 10.4% 24.5% 35.4%

Entertainment

16.7% 3.9% 44.4% 44.0% 12.0% 2.0%

Promotions and competitions

41.7% 22.7% 33.3% 24.6% 22.4% 5.2%

Internet safety

1.0% 0.1% 0.0% 1.1% 0.3% 0.9%

CSR

2.6% 0.3% 2.6% 4.1% 11.3% 3.5%

Network disturbances

0.0% 0.0% 0.0% 0.0% 5.5% 16.1%

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Results Study 2: Online Survey (1)

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3

4

5

User Motivations

Twitter (n = 186)

Facebook (n = 164)

Twitter+Facebook (n = 105)

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Results Study 2: Online Survey (2)

Twitter Facebook

1. Customer service (2.15)* 1. Products and services (3.33)

2. Network disturbances (2.73)* 2. Competitions (3.78)*

3. Products & services (3.45) 3. Customer service (4.07)*

4. Competitions (4.62)* 4. Network disturbances (4.26)*

5. Polls & questions (5.40) 5. Entertainment (4.84)*

6. Entertainment (5.86)* 6. Polls & questions (5.32)

7. Internet safety (6.44)** 7. Internet safety (5.84)**

8. Vacancies (7.15) 8. CSR (6.75)**

9. CSR (7.22)** 9. Vacancies (6.82) * p < .001 **p < .05

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Results Study 2: Online Survey (3)

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Corporate Reputation

Twitter

Facebook

Twitter + Facebook

None

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Overview

Introduction

Method

Results

Conclusion & discussion

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Conclusion

• Study showed that social media users have clear preferences for content for each medium.

• Regarding specific social networks, Facebook appears to be more appropriate for CSR communication than Twitter.

• Use of Facebook also shows to have more positive influence on respondent’s perception of the company (corporate reputation)

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Discussion

• Higher levels of activeness in brand-related social network interaction (Muntinga et al., 2011) do not necessarily lead to more positive brand evaluation. Information and entertainment motivations show highest correlation factors with reputation scores.

• Companies should investigate and determine which channels are suitable for which messages.

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Questions?

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Literature • Fombrun, C. (1996). Reputation: Realising value from the

corporate image. Boston, MA: Harvard Business Press Books.

• Fombrun, C. & Shanley, M. (1990). What's in a name? Reputation building and corporate strategy. The Academy of Management Journal, 33(2), 233-258

• Muntinga, D.G., Moorman, M., & Smit, E.G. (2011). Introducing COBRAs: Exploring motivations for brand-related social media use. International Journal of Advertising, 30(1), 30-46.

• Walsh, G., Beatty, S.E. & Shiu, E.M.K. (2009). The customer-based corporate reputation scale: Replication and short form. Journal of Business Research, 62, 924-930.