ASSESSING GLOBAL RISK

A Tool for Building and Protecting Corporate Reputation Manika Naidoo, Hong Kong, April 2015

ASSESSING GLOBAL RISK: A Tool for Building and

Protecting Corporate Reputation

PRACTICE NOTE

What is this tool?

This is an applied research tool designed to sharpen a company’s identification and management of risk in culturally unfamiliar or diverse environments using strategic communications.

The globalisation of capital and trade has meant today’s companys and corporations are more likely to operate in countries with cultures different in origin and practice to their corporate culture. For example, the exponential growth in the Islamic Economy over the last 10 years has attracted significant Western investment and forced a wary alliance between global capital and Islam in emerging markets, such as Malaysia and Indonesia. Meanwhile, the rise of China and a complex regional geo-political play, has exposed Chinese corporations to cultural obstacles blocking access to aspects of some western markets.

The use of strategic communication to support and bolster technical assessments of risk is accepted practice in business management today. Without doubt, a company’s communication strategy must be constructed to align and support business goals and objectives.

An effective communication strategy should be supported by customised tools that account for, and highlight, factors that influence communication. However, many tools designed to support strategic communications today are constructed on a business ethic, and ignore or provide insufficient weight to key environmental variables to inform a communication imperative.

For example, a thorough analysis of a company’s operational environment is a crucial first step to support a business or communication strategy . A standard business landscape analysis investigates political, economic and social variables within the operating environment but often marginalises culture variables, which should be key considerations for communication professionals.

An understanding of local culture is front and centre of everything a public affairs practitioner does. However, this understanding is often intuitive; there is no guide or formula to incorporate culture within international public relations best practice.

This tool attempts to address this gap by providing a customised tool to guide experienced public affairs practitioners conduct a landscape or situational analysis that incorporates cultural influence.

The aim is to deliver a richer understanding of the complex environment that shapes best practice communication in a global world – and provide a stronger intellectual base upon which to construct a better targeted communication strategy that is more responsive to the local environment and business objectives.

How to you use this tool

This Tool is a simplified four-step rubric. It guides an assessment of the company and its external environment by providing traits and examples of each external variable (Political System, Economic System, Mediascape and Culture) to identify and assess the degree of influence each has on reputational management.

The assessment process must be specific to the client‘s business priorities within its unique operational environment. Therefore the professional impressions, insight and judgements of public affairs practitioners are central to rating the relevant risks and opportunities.

That said, useful quantitative metrics* can contribute to understanding the variables. PR practitioners are encouraged to use their instincts in a subjective and qualitative manner relating to business goals, and consider contributing quantitive metrics to add an objective and measureable certainty to their assessments.

The Tool also includes a ‘Dashboard’; a value scale on which to rate each environmental variable. The Dashboard is designed to provide a visual traffic light of reputational risks and opportunities and support a qualitative analysis of reputational management implications.

The inclusion of a Dashboard percentage rating gives the practitioner the option to include the dashboard as an evaluation tool within the final strategy, to rate the success or failure of communication strategies to minimise reputational risk.

*A list of useful quantitative metric tools is included in each relevant Worksheet

ASSESSING GLOBAL RISK

A Tool for Building and Protecting Corporate Reputation

BACKGROUND

ASSESSING GLOBAL RISK: Building and Protecting

Corporate Reputation

INTRODUCTION

What is Reputation?

Reputation is a Company’s level of public trust and credibility

Reputation Management uses strategic communications to identify and cultivate key relationships with stakeholders and publics to promote trust and respect – as well as identify potential issues or risks likely to provoke public distrust or dislike. A company’s strategic stakeholders, for the purposes of reputation management, may include governments, regulators, media, the public or its employees.

Reputation does not equal Brand

Within mass communications, there are two external environments within which organisations exist:

1. The Task Environment, inhabited by competitors and consumers; and

2. The Social or Institutional Environment, where the public attempt to influence organisations (Grunig 2011).

Marketing, using the tools of market research and advertising, is a cut-through communication approach designed to make a big, but nevertheless short-term, impact in order to win the attention and desire of a consumer. Marketing is all about the image. It is a controlled, external projection of an organisation's appeal to a consumer. The sale is all that matters.

Public relations, is all about the long-term pay-off. It is a trade that invests time in people, using stakeholder engagement strategies to build trusting relationships that deliver long-term public support and respect (Naidoo 2015).

REPUTATION Vs BRAND The public’s opinion of a company’s credibility and trustworthiness. Managed to build public support

Internally produced external projection of a company’s image developed and managed to sell goods and services

A Tool of Public Affairs. Fluid and multi-faceted

A Tool of Marketing. One-dimensional. Fixed image

Can be influenced

Can be controlled

Exists in the Social Environment, where the public attempt to influence organisations

Exist in the Task Environment, inhabited by competitors and consumers

Uses stakeholder identification and cultivation strategies to build public trust

Uses market Research/Advertising to make a sale

REPUTATION is company-centric. Focuses on the company’s credibility and respect among a broad group of stakeholders

BRAND is customer-centric. Focuses on what a product, service or company has promised to its customers

Builds public support to achieve a company’s long-term business goals

Builds short-term consumer appeal to drive an immediate sale

Why Reputation Matters

ASSESSING GLOBAL RISK: Building and Protecting

Corporate Reputation

Marketing efficiency dividend

Trust is a key driver of people’s predisposition to believe, hear and buy products or services. Research shows a strong correlation between reputation (trust) and marketing efficiency (IPSOS 2011). If people respect an organisation, they are more likely to feel good about supporting a business, pay more for their products, and believe marketing communications .

Protection during a crisis

Reputation can provide a company with some protection from issues or crisis emanating from the operating environment. If people respect an organisation, the public are more likely to believe the best of you, rather than the worst.

Builds business opportunities

If people like your business it helps promote strong relationships between your business and stakeholders (IPSOS 2011. For example, a Government is more likely to consider a business more favourably if that business commands high level of public trust and support).

Prevention is always the best cure…

The biggest risk to business reputation is a crisis, therefore the best crisis ‘response’ strategy is to prevent a crisis in the first place, by identifying and managing risks emanating from the operating environment. Proactive identification of risk is the best way to protect a company‘s reputation (Jaques 2010). Reputation management relies on strategic communication strategies to cultivate relations with key stakeholders and publics and manage a company’s interaction with its operating environment (Grunig 2002).

Managing Risk is the Key to Protecting Reputation

How to Build and Protect your Reputation?

ASSESSING GLOBAL RISK: Building and Protecting

Corporate Reputation

Identify, Prevent and Prepare

Good reputation management must not only‘proactively’ identify and manage reputational risks to prevent a crisis , it should also prepare a business to effectively respond to a crisis (Grunig 1992; Jaques 2007).

Reputational Risk communication strategies are both internally and externally focused (Grunig 1992).

Internal reputation risk strategies

Staff professional development, including cultural training and crisis preparation

Internal systems, including a well-resourced and trained public affairs team linked into senior-decision making

Crisis planning processes, including simulations, manuals and training

External reputation risk strategies

Environment scanning - identify and manage issues and risks that might impact on a business,

Research and analysis of the operationational environment - predict reputational risk and opportunities , identification of key stakeholders and publics

(influencers), develop appropriate communication tactics

Stakeholder and media cultivation, within localisation and trust-building strategies.

Understanding the Operational Environment

ASSESSING GLOBAL RISK: Building and Protecting

Corporate Reputation

What is the Operational Environment?

The operational environment is the external environment in which a company operates. Factors within this environment determine how a company can achieve its business goals. A company cannot control the external environment but it can influence it using strategic communications. Why should you understand it?

Understanding the operational environment, and the forces that shape it, is at the core of effective reputation management. The typical environment is dynamic and turbulent, rather than static. It is also a global environment, increasing the complexity. Therefore practitioners must be vigilant to constant and rapidly changing circumstances. The greater the uncertainty, the greater the need for scanning (Grunig et al. 2002). From a public affairs point of view, an analysis of the operational environment delivers insights for gorporate growth and reputational management (Grunig et al. 2002), by identifying;

Emerging issues and risks that can damage a reputation

Opportunities to build relationships to grow and strengthen reputation

Strategic stakeholders and publics ( influencers) to target within communication strategies

Culturally responsive communication tactics and tools for engagement How do you understand it?

A ‘standard’ business management situation or landscape analysis assesses social, economic and political systems to isolate factors that may impede or support a company’s freedom of action. However, understanding local culture and the mediascape is equally important for strategic communication practioners (Sriramesh & Vercic 2009; Vercic et. al 1996). Effective communicators must not only understand what the public is likely to do or think, but why they think and act the way they do – in order to isolate the best communication messages and methods. An understanding of local culture and the Mediascape delivers vital insights and input into communication engagement strategies and the selection of communication tools best suited to the local environment. Environmental variables should not be assessed as stand-alone factors. They are interrelated; each will impact and influence the other (Sriramesh & Vercic 2009).

Why culture matters?

ASSESSING GLOBAL RISK: Building and Protecting

Corporate Reputation

Understanding local culture is more significant for companies operating in foreign and culturally unfamiliar countries.

Cultural influence is often hidden, but nevertheless present and influential in all aspects of the operational environment (Arnoldi & Naidoo 2015; Curtin & Gaither 2008; Falkheimer 2008; Falkheimer & Heide 2006; L’Etang & Pieczka (2006); Macnamara 2012; Wakefield 2010; Vujnovic & Kruckeberg 2010).

A cultural scan can sharpen an understanding of the economic, political and media systems. For example, the separation of Church and State is an accepted doctrine in Western democracies based on the Judeo-Christian ethic. But in Islamic countries, the politics of the State are often intertwined with the politics of Islam, where religious beliefs and cultural aspirations of Muslim populations can underpin the political ideologies of government, national economic development priorities, media controls and the rule of law (Al-Hyari 2011; Al-Kandari & Gaither 2011; Arnoldi & Naidoo 2015; Gaither & Curtin 2008).

Local cultural knowledge can:

Deliver sharper insights about a company’s operational environment to identify reputational risks and opportunities; and

Suggest how communication strategies should be adapted or constructed to maximise local impact.

ASSESSING GLOBAL RISK: A Tool for Building and

Protecting Corporate Reputation

REFERENCES

Al-Hyari, K, Alnsour, M, Al-Weshah, G, & Haffar, M 2012. ‘Religious beliefs and consumer

behaviour: from loyalty to boycotts’, Journal of Islamic Marketing, vol. 3, no. 2, pp. 155-

174.

Al-Kandari, A & Gaither, TK 2011. ‘Arabs, the west and public relations: A critical/cultural study of

Arab cultural values’, Public Relations Review, vol. 37, no. 3, pp. 266-273.

Arnoldi, E & Naidoo, M 2015, ‘A Western Corporation in a Non-Western Environment’. Paper

submitted for presentation at The 14th International Conference on Research in

Advertising, ICORA, London, UK.

Falkheimer, J 2008, ‘Glocalising Public Relations and Crisis Communication: Bridging Gaps of Trust

in Multicultural Societies’, in A Zerfass, B van Ruler & K Sriramesh (eds) Public Relations

Research, European and International Perspectives and Innovations, SpringerLink, pp. 293-

304.

Falkheimer, J, & Heide, M 2006, ‘Multicultural crisis communication: Towards a social

constructionist perspective’, Journal of contingencies and crisis management, vol. 14, no. 4,

pp. 180-189.

Gaither, TK, & Curtin, PA 2008, ‘International public relations: Toward an integrated theoretical

base’, in TL Hansen-Horn, Public Relations: From Theory to Practice, Pearson A and B,

Boston pp. 281-299

Grunig, JE 1992, Excellence in public relations and communication management: Contributions to

effective organizations, Lawrence Erlbaum Associates, Hillsdale, NJ.

Grunig, JE, & Repper, FC 1992, ‘Strategic Management, Publics, and Issues’, in JE Grunig, DM

Dozier, WP Ehling & LA Grunig (eds), Excellence in public relations and communication

management. Communication textbook series. Routledge, pp. 117-157.

Grunig, JE 2011, ‘Public relations and strategic management: Institutionalizing organization–

public relationships in contemporary society’, Central European Journal of Communication,

vol. 06, pp. 11-31.

Grunig, LA, Grunig, JE & Dozier, DM 2002. Excellent public relations and effective organizations: A

study of communication management in three countries, Lawrence Erlbaum, Mahwah, New

Jersey.

IPSOS, 2001, ‘BuildingTrust Builds Company Performance’, IPSOS Global Reputation Centre,

http://www.ipsos.com/public-affairs/sites/www.ipsos.com.public-

affairs/files/Building_Trust_Builds_Company_Performance-INTL-POV.pdf

Jaques, T 2007, ‘Issue management and crisis management: An integrated, non-linear, relational

construct.’ Public Relations Review, vol.33, no.2, pp 147-157.

Jaques, T 2010, ‘Embedding issue management as a strategic element of crisis prevention.’

v Disaster Prevention and Management: An International Journal, vol.19, no.4, pp 469-

482.

L'Etang, J, & Pieczka, M 2006, Public relations: Critical debates and contemporary practice.

Psychology Press.

Macnamara, J 2012, ‘Challenging the disciplinary borders of PR to foster communication across

borders.’ In World Public Relations Forum 2012, Melbourne, Australia, November 2012,

pp. 73-77.

Naidoo, M 2015, ‘Political messages for sale but we're not buying,’ The Age Newspaper 13

February, at http://www.theage.com.au/comment/political-messages-for-sale-but-were-

not-buying-20150212-13dmo0.html

Sriramesh, K, & Vercic, D 2009, The Global Public Relations Handbook: Theory, Research, and

Practice, 2nd edn, Routledge, New York, Oxon.

Vercic, D, Grunig, LA, & Grunig, JE 1996, ‘Global and specific principles of public relations:

Evidence from Slovenia’, in HM Culbertson & N Chen (eds) International public relations: A

comparative analysis, Routledge, pp. 31-65.

Vujnovic, M, & Kruckeberg, D, 2010, ‘The Local, National, and Global Challenges of Public

Relations: A Call for an Anthropological Approach to Practicing Public Relations’ in RL

Heath (ed) The Sage Handbook of Public Relations, Sage, USA, pp. 671-678.

Wakefield, RI 2010, “Why Culture is Still Essential in Discussions about Global Public

Relations’, in RL Heath (ed) The Sage Handbook of Public Relations, Sage, USA pp 659-670.

ASSESSING GLOBAL RISK

A Tool for Building and Protecting Corporate Reputation

TOOL

Insight 2 Insight 1

Insight 3 Insight 4

How does the Client’s current reputation support or hinder the achievement of its business objectives?

What external factors influence management of the Client’s current and future reputation?

What are the barriers and drivers to manage the Client’s reputational risk?

How does culture feature as a communication consideration in managing the Client’s reputation?

What will you achieve by building and protecting a Client’s reputation and what are the opportunities and risks?

AMBITION WORKSHEET 1 Business Scan Worksheet

WORKSHEET 3 Cultural Overlay Worksheet

WORKSHEET Series 4 Reputation Dashboard Worksheet

WORKSHEET 2 Environment Scan Worksheet

ASSESSING GLOBAL RISK: Building and Protecting

Corporate Reputation

TOOL OVERVIEW

STEP 1 BUSINESS SCAN Understanding a Company’s current business goals, challenges and opportunities will ensure a strong alignment between client business needs and communication strategies required to manage and identify reputational risk

The Company

The Market and Industry

The Competitors

The Corporate Values

The Corporate Public Profile

The Political System

The Mediascape

The Economic System

World View

Social mobility and social stratification

Social values and attitudes

Religion, Race and Ethnicity

Other unique cultural features

Opportunities and Risks

Drivers and Barriers

ASSESSING GLOBAL RISK: Building and Protecting

Corporate Reputation

TOOL ELEMENTS

STEP 4 REPUTATION DASHBOARD The Dashboard will illustrate

1. The level of Risk and Opportunity for building and protecting the company’s reputation .

2. The degree to which local culture is a driver or barrier to reputation management

STEP 3 CULTURAL SCAN A Cultural scan will identify cultural features within the local environment to highlight communication practices best suited to local culture

STEP 2 ENVIRONMENT SCAN A situation analysis will identify external factors within a company’s operating environment that influence reputation management.

These questions should be considered first to better understanding a Company’s current business goals, challenges and opportunities to ensure a strong alignment between client business needs and communication strategies required to manage and identify reputational risk.

TOOL WORKSHEET 1 Business Scan

The

Co

mp

an

y

What is the corporate structure? Are they a subsidiary of a multinational corporation? If, so, is public affairs strategic direction centralised at head office, or determined locally? Are they a public or private company? Are they a family-run company? Do they have a board?

Do they have active shareholders? Who are the main institutional shareholders?

What is the local experience of the management team? Do they employ a large local workforce?

The

Ma

rket

An

d

Ind

ustry

Is the company established in this market? Is it an emerging market?

What product do they sell and where? Do their products target a particular group (gender, age, cultural, ethnic, and religious)?

What is their current market share/target growth?

What industry is the market within? Is there public support for the industry? What are the key drivers/barriers of industry development? Is there government or institutional support for the industry? What is the level of industry cooperation on sector issues?

Who are the regulatory agencies? What are the regulatory hurdles?

The

Co

rpo

rate

Valu

es

What are the core corporate values projected by the company’s external brand? Does the Brand have a local and international profile? Is there public goodwill or ill-will associated with the brand?

How are key elements of the marketing strategy aligned to business objectives? How does the current marketing strategy build public trust?

How are the company’s internal values/corporate culture supportive of public credibility and trust? Does the company have a good relationship with its workforce? How does it promote good work practices i.e. support unions, family friendly?

The

Co

mp

etito

rs

Who are the company’s main competitors?

What is the market penetration and projections for growth of the main competitors?

Do competitors have high levels of public trust and credibility?

What are the strategic features of the competition’s current marketing and communication campaigns?

The

Co

rpo

rate

Pu

blic P

rofile

What is the level of the company’s current public profile? Is there strong public interest/awareness of the company or the industry/sector?

Does the company/its leadership team have an honest and trusting relationship with the public/ government and its authorities/ the mainstream media? Has the company been involved in recent public controversies attracting negative comments? Are they publically acknowledged for corporate social or environmental responsibility? Is the company generally viewed as a good corporate citizen? Does the company have a good relationship with its own workforce?

Quantitative References Company Annual Reports

Balance sheet

Cash flow statement

Contents: non-audited information

Profit and loss account

Notes to the financial statements

Chairperson’s statement

Director's Report

Operating and financial review

Auditors report

Consideration of these questions will identify aspects of the company’s external operating environment that pose a risk or an opportunity for reputation management. The environment scan should be set against the business ambition/goals to isolate or predict external factors that may impact on a company’s reputation.

TOOL WORKSHEET 2 Environment Scan

The

Po

litical System

The way political power is attained and expended within countries is a key influence on best practice public affairs. There are marked differences in the degree of openness and fairness within countries – and even within democracies. Understanding the political system and the relationship between the government and the public, will help an organisation predict government actions and public responses that may impact on their freedom of action and reputation.

What is the country’s political and political party system? Is public opinion valued?

How stable is the country politically and socially? How easy is it to predict Government action?

What is the relationship between the government and bureaucracy and the Corporate sector? Does business have avenues for influencing public policy? What are they

How independent/ free of political influence and corruption are regulatory, legal and administrative systems?

What are the restraints, if any, on local activism?

The

Econ

om

ic System

An understanding of a country’s economic system, development and philosophy will support public affairs strategies that better identify risks to a company achieving its commercial goals and highlight opportunities to promote and build reputation.

What is the country’s level of economic development, its economic system and philosophy?

What is the country’s general economic health – both at a macro and micro level?

Does the country’s infrastructure and resources (innovation, labor force skills and unemployment, demography) support continued market growth for the business or industry?

How does the economic regulatory environment constrain or support the company or industry?

Is economic decision making centralised or diffused?

The

Me

diascap

e

Strategic communication acknowledges the power of media and communication industries to shape public opinion. An understanding of how local media industries operate will sharpen the practitioner’s sense of local communication barriers or opportunities to reputational management.

What is the level of media control, diffusion and access?

Are there political or legislative constraints on freedom of speech?

What is the level of media bias, diversity and plurality? Is broad media bias evident in relation to the company or industry?

How independent is media editorial from government or vested interests?

What are the country’s literacy rates, mobile/smart phone use?

What is the capacity of the media industry to diffuse communication, including telecommunication infrastructure?

Quantitative References Political System Corruption perception Index http://www.transparency.org/country Global Democracy Ranking http://democracyranking.org/ Democracy Index http://www.eiu.com/home.aspx Freedom House: Freedom in the World Assessment https://freedomhouse.org/report-types/freedom-world#.VRI4T_mUeSo

The Mediascape Freedom House: Freedom on the Net https://freedomhouse.org/report-types/freedom-net#.VRI5HvmUeSo Freedom House: Freedom of the Press https://freedomhouse.org/report-types/freedom-press#.VRI5i_mUeSo Reporters Without Borders: World Press Freedom Index http://en.rsf.org/

The Economic System World Economic Forum: Global Competitiveness Report http://www.weforum.org/reports GDP growth GDP per capita Foreign Direct Investment flows Inflation, Public Debt Unemployment

These questions aim to provide additional insights about a company’s operational environment as well as possible communication approaches for more effective reputation management strategies. A suggested analytical framework to focus alignment with the company’s business goals is to look for potential conflict or concurrence between local culture and the company’s corporate culture and values. Also, the analysis should start shaping ideas about culturally-responsive communication methods and approaches that will work locally.

TOOL WORKSHEET 3 Cultural Scan

Re

ligion

, Race

and

Eth

nicity

How do race, ethnicity and religion feature in the country’s economic, political and legal development and practice?

How do they feature in social attitudes, customs and practices?

If religion is a culturally dominant factor, how is local religious practice and beliefs distinct or similar to practice in other countries?

Social

mo

bility/

stratification

What is the level of social stratification and social mobility?

Does existing social stratification reflect cultural aspirations? Is there a conflict and tension?

Oth

er lo

cal insigh

ts

Are there idiosyncratic cultural features unique to this country? eg Is there a particular cultural identification with the Arts or a Sport?

How is language used to develop and maintain connections? for example, does the culture have a unique sense of humor?

Is cultural social or political history relevant to public perceptions about the company? Does the society have cultural antipathy/prejudice for another culture?

Social valu

es

and

attitu

de

s

How are local cultural beliefs and morals aligned to the company’s managerialism and business cultural ethic?

What are local attitudes to gender, family?

How tolerant is society of change, uncertainty and ambiguity?

Is there a strong deference to authority?

To what degree does the culture support ideals of consumerism/materialism/individual freedom?

Wo

rld V

iew

Does a religious affiliation/identification exist with a wider diaspora of global religious believers?

How do people view themselves culturally in relation to the world?

How is the culture viewed globally?

Quantitative References Pew Research Centre Cultural Diversity in the world http://www.pewresearch.org/files/2013/07/FT_Diversity_Map.png Religion and public life http://www.pewforum.org/2014/04/04/global-religious-diversity/ Global Religious Futures http://www.globalreligiousfutures.org/ Global Indicators Database http://www.pewglobal.org/database/

Management structure has strong local knowledge and supports a skilled internal comms team and practice

The company has a dominant market presence in a key industry with wide-spread public support and is a leading player promoting broader industry interests

Competitors have low levels of public respect and trust and are new entrants to an established market dominated by the client company.

Corporate brand and corporate culture have strong levels of public understanding and appeal.

The company and its leadership command high levels of public respect and affection. The company is admired for its philanthropy, social/environmental ethics and fair work practices.

Management structure does not support or value in-house comms expertise and has little local experience

The company is a new entrant to an emerging market, within an industry with low public levels of support. Industry cooperatin on policy or regulatory matters are weak.

Competitors dominate an established market, are highly influential industry leaders and have strong public appeal supported by a comprehensive integrated marketing and coms strategy

Corporate brand and corporate culture have low levels of public understanding appeal or support.

The company and its managers have a high but negative public profile associated with an ongoing and damaging controversy.

Company Structure

Market and Industry

Competitors Corporate values

Public Profile

High

Low

De

gre

e o

f re

pu

tati

on

al r

isk

75%

50%

25%

TOOL WORKSHEET SERIES 4 (1) Business Scan

Reputational Management Implications

Analysis here… what industry, business, market and internal organisational features of the company are current barriers and drivers to the company strengthening its public trust, respect and credibility.

>75% 25% - 50% 50% - 75% <25%

Stable political and social order and fair and unbiased regulatory, legal and administration systems, enable you to precisely predict and analyse government actions to prepare a communications response.

Trade or geopolitical alliances promote public trust and support for the company or industry.

Media industries are diverse and unconstrained by narrow business interests or legislative limits on freedom of speech, facilitating unbiased and accurate reporting.

Low levels of political or business censorship and influence on media companies reflect robust media editorial independence.

Robust telecommunication infrastructure and high rates of smart phone ownership and literacy rates support road and efficient diffusion of public information using digital media.

The company’s business objectives align with national development goals to support public expectations of improvements in standards of living and well- being from economic growth.

Economic policy and regulation is decentralised and accessible to business engagement strategies.

Political System Mediascape The Economic System

Political and social disorder is rife while regulatory, legal and administration systems are corrupt and biased, making it dificult to precisely predict and analyse government actions to prepare a communications response.

Trade or geopolitical alliances create public, uncertainty, fear and distrust about the company or industry.

Concentrated media ownership reflects limited editorial independence and biased views reflecting narrow business interests.

Political and legal constraints on freedom of speech control the diffusion of information.

Telecommunication infrastructure and low rates of smart phone ownership constrain digital communication while poor literacy rates restrain effective mass communication.

Company business objectives conflict with national economic goals and public expectation of potential rewards from economic growth, creating a conflict between the company’s commercial ambition and public expectations of improvements in standards of living and well-being.

Economic policy and regulation is highly centralised and controlled with little capacity to influence using engagement strategies.

High

Low

De

gre

e o

f re

pu

tati

on

al r

isk

75%

50%

25%

WORKSHEET SERIES 4 (2) Environment Scan

Reputational Management Implications

Analysis here… what variables in the political and economic system, and media industries are barriers or drivers to the company strengthening its public trust, respect and credibility.

>75% 25% - 50% 50% - 75% <25%

A country’s religion, race or ethnic mix has little local cultural influence. They provide no barrier and present minimal insights on the best way to maintain and manage strategic relationships.

Local societal values and attitudes align with a company’s corporate culture, management attitudes and CSR agenda, creating mutual admiration and respect.

The Company’s business objectives and internal employment practices meet social expectations of improvements in standards of living and social aspirations.

The company’s corporate culture and external brand aligns with the public’s world view facilitating understanding and communication.

Unique or idiosyncratic local cultural features (name them here) align with the company’s culture, work practices and goals providing opportunities to strengthen a company’s public trust and respect.

Religion, Race and Ethnicity

Social Values and Attitudes

Social mobility and stratification

World View Other features

Religion, race or ethnicity is a dominate and volatile cultural influence, and conflicts with the company’s commerical goals, corporate culture and/or brand leading to public distrust.

Local societal values and attitudes clash with the company’s culture, internal practices/policies and/or goals creating a misalignment between the company’s CSR agenda, goals and public expectations of good corporate citizenship.

The Company’s business objectives and internal employment practices work against social expectations of improvements in standards of living and social aspirations creating public distrust and dislike.

The company’s corporate culture and external brand conflicts with the public’s cultural world view, creating mutual misunderstanding and mistrust – and inhibiting communication.

Unique or idiosyncratic local cultural features (name them here) conflict with the company’s culture, internal practices, external brand and/or goals impeding communication.

High

Low

De

gre

e o

f re

pu

tati

on

al r

isk

75%

50%

25%

TOOL WORKSHEET SERIES 4 (3) Cultural Scan

Reputational Management Implications

Analysis here…what cultural features of a country are barriers or drivers to the company strengthening its public trust, respect and credibility.

>75% 25% - 50% 50% - 75% <25%

Manika is an Australian-based creative and strategic public affairs practitioner with almost 20 years of experience working at senior levels in communication and public affairs. She is a reputational management specialist, with a keen interest in the application and modification of mainstream practice within Asia. Manika was awarded a 2015 Australian Government Executive Fellowship to develop an applied research tool to assess Global Risk, based at Ogilvy & Mather (Asia Pacific), Hong Kong. The Australian Federal Government awards Endeavour Executive Fellowships to high achievers in business, industry, education or government to undertake professional development overseas. The tool was informed by Manika’s Masters Research that investigated best-practice public affairs in Muslim countries. The research will be presented at an international advertising research conference in the UK in July 2015. Manika’s academic interest in improving global practice is supported by her extensive practical experience working at a high-level for Australian Governments. Her specialised communication, policy writing, strategic stakeholder management skills, and ability to prevent and manage crises, were valued as a Senior Adviser to the Victorian Premier and his Ministers (2004-2010). More recently, she was a trusted Senior Adviser to the current Victorian Premier Daniel Andrews in Opposition (2011-2012), and the former Shadow Minister for Infrastructure, Major

Projects, Planning and Sustainable Growth, Brian Tee (2012-2014).

MANIKA NAIDOO

2015 Australian Government Endeavour Executive Fellow Ogilvy & Mather, Hong Kong