Chapter 13

Question 1

Describe the importance of good communication for organizational success

Answer 1

Communication forms the basis of relationships, especially in terms of trust. If there is no communication a relationship cannot transfer meaning and cannot create benefits. When the costs become greater than the benefits the relationship will not be pursued by the parties involved

Question 2

Explain what strategic integrated communication is

Answer 2

It is aimed at assisting in organization to achieve its goals and purpose effectively through the use of a two-way symmetrical communication between the organization and it’s stakeholders. It is the way in which relationships are established and maintained.

The strategy takes into consideration who the target audiences are and where to best communicate with them to drive business growth

Question 3

What are the two principles underlying the SIC model

Answer 3

• The strategic intent of the organization drives the SIC
• Organisational learning principles (dynamic, not static) continuously reposition organization

Question 4

What are the characteristics of the two-way symmetrical communication

Answer 4

Openness, feedback, listening, as well as participation in decision-making processes without constraint.

The two-way communication has been identified as a mechanism for bridging publics, generating communication channels and initiating relationships between organizations and their different publics

Question 5

Describe and explain the three areas of integration and how they relate to a successful SIC model

Answer 5

1) organisational integration
CEO/ top management integration (the Renaissance Communicator)

2) stakeholder integration
Interactivity integration (brand contact point integration)

3) environmental integration
Open system (learning integration)

Question 6

What are the three components of the conceptual model for the implementation of SIC

Answer 6

The strategic intent of the organization: drives all its communication which in turn ensures unity of effort in terms of organizational functioning based on what is land from stakeholders and the environment

The arrows: which signify the organizational learning principles that continually reposition the company

The renaissance communicator: the renaissance communicator (the integration of the marketing, public relations and communication functions) is the central point of communication and secures alignment between communication and objectives, to ensure unity if the actions and messages of the organization

Question 7

Describe and explain how the two principles of the IC support stakeholder relationships

Answer 7

Principal 1- the strategic intent of the organization drives IC. This creates unity and provides a consistent purpose for employees

Principle 2 - the organization is constantly repositioned within its greater context. If an organization strives for communication integration, it will have to follow the principles of a learning organization in order to position the organization according to environmental needs

Question 8

Describe the difference between horizontal and vertical integration (organizational integration)

Answer 8

Horizontal integration involves integration and alignment across business units, functions and regions related to systems, processes, procedures and communication

Vertical integration integrates communication between people working in different business units departments and countries. This encourages frequent, effective and open communication with managers. The focus of vertical integration is to align ‘top-down communicators’ to a clear vision which evolves through a process of ‘bottom up communication’.

Question 9

Describe the role of the CEO and top management regarding integrated reporting (organizational integration)

Answer 9

This area is closely related to vertical integration. The CEO/top management should be the initiator of the organizational integration and should serve as a constant example of integration

Question 10

Describe the role of the renaissance communicator regarding integrated reporting (organizational integration)

Answer 10

• implies communication solutions for key organizational problems (this person is part of top management)
• is updated with strategic and operational issues of the business and has constant contact with the CEO
• realises various fields/areas of communication (e.g. PR, marketing, internal communication, branding etc)
• create synergy (harmony) in the communication plan.

Question 11

What are the five pre-requisites for the renaissance communicator (organizational integration)

Answer 11

1) Sufficient budget: communication is of strategic importance

2) Knowledge and understanding: should know and understand the core functioning of the business

3) Strategic consistency: single brand message

4) Cross-functioning: harmonising different departments and levels

5) Zero-based communication and marketing budget: constant environmental change means you can’t use last year’s budget

Question 12

Discuss the importance of SIC for managing stakeholder relationships (stakeholder integration)

Answer 12

It’s important because of the overlap interdependence and interaction between stakeholders in the value field. The organization should manage the increased levels of engagement from stakeholders by providing structures for managing them

Question 13

Name the two levels of stakeholder integration

Answer 13

1) two-way symmetrical: the reciprocal and interdependent relationship between the organisation and the stakeholders (listening, sympathy, humility)

2) Purposeful personalized interaction: accessibility, recognition, responsiveness, and accountability. Personal relationship, messaging, and understanding.

Question 14

Describe interactivity integration (stakeholder integration)

Answer 14

Interactivity integration is based on the idea that communication should be 1) a two-way symmetrical process and 2) it should be purposeful and personalized

Question 15

Describe brand contact point integration (stakeholder integration)

Answer 15

These are situations in which stakeholders have the opportunity to be exposed in some way to a brand message. This requires identifying and prioritizing brand contact points based on their potential impact

Question 16

Brand contact point intervention is based on what three ideas (organizational integration)

Answer 16

1) appropriate message and incentive delivery system: customized messages, and an appropriate delivery system

2) Continuing dialogue: learning more about stakeholders (interests, needs and priorities)

3) The timing of the message and incentives are built on stakeholder preferences: businesses should be able to adapt

Question 17

What are the environmental factors that will influence the SIC development (environmental integration)

Answer 17

This includes the political, social and economic environment

Question 18

What are the following international integrated reporting council (IIRC) abbreviations: IR, IIRF SASB VRF ESG?

Answer 18

IR - integrated reporting

IIRF - International integrated reporting framework

SASB - sustainability accounting standards board

VRF - value reporting foundation

ESG -

Question 19

How do all these councils and report processes relate to each other

Question 20

Differentiate between integrated reporting and integrated thinking

Answer 20

Integrated reporting represents a natural evolution of the corporate reporting process, aimed at encouraging the implementation of sustainable strategy through the use of strategic thinking

Integrated thinking is about connecting performance with purpose. It is the active consideration by an organization of the relationships between its various operating and functional units, and the ‘multiple capitals’ that the organization uses or effects integrated thinking leads to integrated decision-making

Question 21

How does IR relate to corporate governance in South Africa

Question 22

How does IR relate to an organizations identity and character

Answer 22

The integrated report should clearly communicate an organisation’s character or identity, since it is the stake-
holders’ assessment about an organisation’s character
that has the biggest influence on how they will act towards the company.

Question 23

Name and describe the three shifts that organizations should move away from

Answer 23

• financial capitalism to inclusive (or stakeholder)
  capitalism (from a largely financial focus to a focus on
  the six capitals)
• short-term (financial) capital markets to long-term,
  sustainable capital markets
• siloed reporting to integrated reporting.

The above mentioned shifts have had a direct influence on the way in which organisations report on factors such as value creation and sustainability. They are also an indication of the necessity for integrated reporting in contemporary organisational contexts.

Question 24

What are the foundational concepts that should be addressed in an integrated report

Answer 24

• Value creation for the organisation and others
• The six capitals
• The value creation process itself

Question 25

Name and describe the six capitals and their categories in the IR framework

Answer 25

1) financial capital 2) manufactured capital 3) intellectual capital 4) human capital 5) social and relationship capital 6) natural capital

Question 26

Name and describe the seven guiding principles in the IIRC

Answer 26

Strategic focus and future orientation: Should provide insight into the organisation’s strategy & value creation in the short, medium, and long-term. Connectivity of information: Interconnectedness of business and how it affects the value of the organisation over time. Stakeholder relationships: gives insight into the nature and quality of the organizations relationships with its key stakeholders, including how and to what extent the organization understands, takes into account and responds to their legitimate needs and interests Materiality: Takes into account the needs, values, and interests of stakeholders. Conciseness: Concise and to the point (no irrelevant information) Reliability and completeness: Accurate and correct information (both good and bad) Consistency and comparability: Consistent over time and ability to create value over time

Question 27

Name and describe the eight content elements of an IR

Answer 27

1. Organisational overview and external environment: What does the organisation do and what are the circumstances under which it operates? An integrated report should answer question such as: What is the organisation's purpose? What does the organisation do? What are the organisation's values? What does the organisation stand for? What are the circumstances under which it operates? An integrated report also identifies the organisation's purpose (mission) and vision and provides context for its performance by identifying natters such as the organisation's culture, ethics and values; ownership and operating structure; principal activities and markets; competitive landscape and marketing positioning, and the position within the value chain. Key quantitative information and significant factors that affect the or- ganisation's external environment and its response. 2. Governance: How does the organisation's governance structure support its ability to create value in the short, medium and long term? 3. Business model: What is the organisation's business model? 4. Risks and opportunities: What are the specific risks and opportunities that affect the organisation's ability to create value over the short, medium and long term, and how is the organisation dealing with them? 5. Strategy and resource allocation: Where does the organisation want to go and how does it intend to get there? 6. Performance: To what extent has the organisation achieved its strategic objectives for the period and what are its outcomes in terms of the effects on the capitals? 7. Outlook: What challenges and uncertainties is the organisation likely to encounter in pursuing its strategy, and what are the potential implications for its business model and future performance? 8. Basis of presentation: How does the organisation determine what matters to include in the integrated report and how are such matters quantified or evaluated