E-Knjižnica FET "Dr. Mijo Mirković"

Corporate Governance: Using CSR as Communication Tool

Golja, Tea and Paulišić, Morena (2011) Corporate Governance: Using CSR as Communication Tool. Global Journal of Strategies and Governance (4). pp. 50-78.

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With the occurrence of the corporate failures more attention in corporate governance is given to corporate communication- internally and externally. All failures began because of unethical communication - corporate reporting (false reports, false managers’ statement, etc.). Corporate reporting, as visible part of corporate communication, must lay on ethics because its primary means is to provide details of corporate performance to their various stakeholders, not least the investment community (Everingham, Kana, 2008). Communication is a vital ingredient in their ability to motivate ongoing stakeholder support for and commitment to the organization. Corporate communication is also one-way process and has great influence on decision-making process, so huge attention must be given on filtering – distort information ; corporate status ; time ; value judgments - which is made by receiver ; source credibility which should be developed through years and refers to the trust and ethics. A study of The European Communication Monitor (2010) showed that in 2011 the main expected field of development will be corporate communication (for 88 % of companies) because past can not be repeated, and in the future corporate communication should give a credible, realistic and coherent picture of company’s performance (Zerfass et al., 2010). Nowadays, corporate communication should encourage shatter trust and provide greater understanding of reality. Business ethics, which is evolving over time, has a special task in corporate communication. Good communication becomes the “central mean by which individual activity is coordinated to devise, disseminate, and pursue organizational goals” (Gardner et al., 2001, 561). Organizational communication presents a number of challenges ranging from the regularity of communication to the medium used for effective communication. According to European Communication monitor (2008) open communication and dialog facilitate trust (90, 6%) and that statement can be used as main point of communication importance for any corporation (Zerfass et al., 2008, 29). Trust is also a leader in corporate governance and corporate communication and it is necessary for arising competitiveness (Ognjenović, 2007, 3).Trust is a positive expectation that another will not –through words, actions or decisions – act opportunistically (Robbins et al., 2010, 349). Today’s growing globalization requires the need for increased communication between internal and external resources so that organizations can remain competitive (Gregory-Mina, 2010, 63). But, corporate communication importance has grown especially within new business alignments multinational corporations, strategic alliances, networks, virtual organizations and enterprise clusters, etc. Except stated, corporate communication is not valuable only for internal audience, but it is very important for external audience as it gives direct input for stakeholders’ decisions – to buy or not to buy products? ; to invest or not? ; to give positive comment on social network or not? Etc. Without open, transparent and proactive communication corporation can not assure good corporate governance. For effective governance ethical norms must be embedded in the culture and processes of corporation (Golja, Paulišić, 2010). According to the stakeholder theory, the manager’s job is to carefully balance the interests of all stakeholders. With implementation of CSR in the ordinary business practice the whole spectrum of activities towards different stakeholders will be performed. So CSR can be / should be used as communication tool. The research problem was to investigate the CSR approach in Croatian context and underline main expectation of wider community regarding CSR. In particular to enhance joint-stock limited liability corporations in Croatia to use CSR as communication tool. In considering the fact that Croatia has only started to use CSR in business, these results will suggest a bright future for companies which will use CSR in their business and appropriate communicate CSR activities with all stakeholders. The research goal of this paper is to present the relationship between corporate social responsibility and corporate communication which is important for enhancing corporate governance to use CSR as strategic method of raising trust in company. The review on CSR communication is provided as well as the key research results.

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Tip objekta: Članak
Ključni pojmovi: corporate governance, corporate social responsibility ;, communication tool
Teme: 6 Tehnologija (primijenjene znanosti) > 65 Menadžment i organizacija industrije, trgovine i komunikacija > 65.01 Metode i metodologija. Teorija i praksa organizacije > 65.012.4 Menadžment. Uprava. Ravnateljstvo Tehnike i metode upravljanja
Odjeli: Fakultet ekonomije i turizma "Dr. Mijo Mirković"
Datum pohrane: 24 Feb 2014 12:55
Zadnja promjena: 24 Feb 2014 12:55
URI: http://eknjiznica.unipu.hr/id/eprint/3618

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