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Author:Lotila, P.
Title:Corporate responsiveness to social pressure: An interaction-based model
Journal:Journal of Business Ethics
2010 : JUL I, VOL. 94:3, p. 395-409
Index terms:business ethics
business communication
management
stakeholders
public relations
strategy
organizational behaviour
case studies
companies
paper and pulp industry
Freeterms:Finland
Nordic countries
South America
models
Language:eng
Abstract:An interaction-based model illustrating the iterative process of corporate responsiveness to social pressure is presented. The model is applied to a recent case of international relevance, Oy Metsä-Botnia Ab, Finland. It is implied that three types of management approaches can be applied in managing relations with society, depending on their perception of social pressure: i. tactic, ii. strategic, and iii. no action. This is reflected in the public relations' (PR) practice. Ethical leadership is considered to be presented by the proactive practice of PR, aiming at mutual understanding btw. the organization and the stakeholders. The firm's interaction with the stakeholders does not guarantee that social pressure would actually be relieved. Rather, if PR does not meet stakeholders' expectations, it fails in its task of establishing and maintaining favourable relationships. Identifying emerging issues, relevant publics and preferable communication methods is the precondition for strategic, proactive management of stakeholder relations.
SCIMA record nr: 271036
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