Relationship To The Company Commerce Essay

Apart from the attempt that I put in this assignment, the success on finishing this assignment depends mostly on encouragement and guidelines of many others. I take this chance to show my gratitude to the great people who have been giving me a enormous support to finish this assignment.

First of all I would wish to thank my instructor. I do n’t cognize how to state thanks for his enormous support and aid. I felt motivated and encouraged when he gave me guidelines.

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Finally I would wish to thank my household and friends who gave me thoughts and contributed to this assignment, I am thankful for everyone who supported me to make this assignment.


‘I confirm that in send oning this appraisal for selling, I understand and have applied the CIM policies associating to word count, Plagiarism and collusion for all undertakings. This assignment/project is the consequence of my ain independent work/investigation except where otherwise stated. Other beginnings are acknowledged in the organic structure of the text and/or a bibliography is appended. The work that I have submitted has non antecedently been accepted in substance for any other award and is non at the same time submitted in campaigning for other award ‘

Relationship to the company

The ground behind taking Ceylon Tobacco Company as the selected company for this assignment is that I work as a Trade Marketing Executive in Ceylon Tobacco Company which helped me to garner accurate and up-to-date information about the company.


Word count

Undertaking 01 – 3,850 words ( Excluding header and in text mentions )

Undertaking 02 – 2,213 words ( Excluding subjects and in text referencing )

Entire – 6,063 words

Executive Summary

Corporate repute is involved with the lucifer between individuality that the administration tries to make among its stakeholders and image that stakeholders perceive about the administration. Many internal and external factors lead to constructing Image and Identity of the administration so hence identifying and pull offing those factors in a governable mode is called pull offing corporate repute. Nowadays more and more companies are concentrating on pull offing corporate repute by mensurating it on a regular footing because corporate repute has been identified as one of the cardinal drivers of fight. With the increasing focal point towards corporate repute, administrations use assorted corporate repute measuring tools known as standardized and customised tools which have been developed by writers and institutes.

Therefore in order to construct CTC ‘s corporate repute among its stakeholders several measurement theoretical accounts were selected which has been identified as appropriate for the administration such as communicating audit, individuality audit and media remarks to mensurate the current repute of CTC. With the consequences of the audit it has been identified that there is a mismatch between individuality and image where Social corporate duty of CTC has non been communicated decently to its stakeholder due to several strategic issues such as deficiency of consciousness about the importance of corporate repute among employees, transparence sing company activities, stakeholders of CTC holding negative perceptual experience about the company and uneffective communicating scheme.

So in order to rectify the strategic issue three recommendations were suggested such as heightening the effectivity of corporate communicating procedure, heightening CTC employee ‘s consciousness degrees on the importance of corporate repute while puting up policies and eventually monitoring & A ; rating of new corporate communicating procedure on its stakeholders and heightening the relationship degrees. Along with the above recommendations fiscal and political execution deductions and how to rectify them has been discussed. These recommendations will better the corporate repute of CTC among its stakeholders and as a consequence fight of the administration may better.

Undertaking 1 – Pull offing Corporate Repute

Concept of corporate repute

Corporate Repute has become an of import subject in the corporate universe due to the value that it creates in each and every organisation for its endurance.

Figure: Corporate Repute Mix

Beginning: adapted from Davies et Al. ( ibid p.76 )

Harmonizing to Davies ( 2003 ) corporate repute or corporate trade name of an organisation is straight linked with its individuality that it has created among its internal stakeholders and image of how the external stakeholders perceive about the organisation. Whereas harmonizing to the Fombrun ( 1996 ) corporate repute is an aggregative perceptual experience of foreigners about the outstanding features of houses. They reflect the general regard in which a house is held by its multiple stakeholders. On the other manus Brady et Al ( 2006 ) has a really different perceptual experience sing corporate repute to Davies whereas he had said that for an organisation trade names are more governable than repute because a repute is created by stakeholders and attributed to an organisation. By contrast a trade name is manufactured by an organisation to sell to one stakeholder group, consumers.

Corporate repute direction has batch of positive effects to the organisation and one of the most of import effects is that it drives fight of the organisation whereas harmonizing to Dowling ( 1994 ) corporate repute has been defined as an intangible plus which could besides move as a competitory advantage by making ballyhoo among stockholders and, media to do determinations in the organisations favour and going the first pick in the consumers and employees mind. On the other manus harmonizing to the Fombrun ( 1996 ) Repute non merely accrues to better executing companies but besides enables their public presentation. Stronger bottom line public presentation comes approximately because better regarded companies achieve ‘First Choice ‘ position with investors, clients, and employees. Therefore mensurating corporate repute is really of import for an organisation as several critical factors for the endurance for the organisation is straight linked to the corporate repute.

Measuring corporate repute

Measuring corporate repute can be described as a meaningful manner of measuring the current strength of the current corporate repute in order to derive an penetration sing where corporate repute of the organisation base with respect to its challengers and industry participants. Similarly harmonizing to Fombrun ( 1996 ) houses seeking to construct its repute should, measure the current province of the company ‘s repute and that of its challengers, analyse the coveted future province of the company ‘s repute, and eventually joint the projections that can travel it from one constellation to the other.

Make companies emphasis on mensurating corporate repute?

Harmonizing to Fombrun and Van Reil ( 1997, p5 ) although corporate reputes are rarely omnipresent, they remain comparatively understudied. In portion, it is certainly because reputes are rarely noticed until they are threatened. A good illustration of this could be Shell Company rejuvenating its corporate repute after being accused for nautical sinking of boring works. On the other manus presents due to budget and resource restraints bulk of the companies measure corporate repute as a pattern but at a lower graduated table non covering all the facet of the corporate repute, besides some companies use customize measurement tools to mensurate corporate repute chiefly due to non holding a standardised measurement tool which will non be utile for comparings. Therefore one of the most common barrier that organisations face in mensurating corporate repute is that there is no standardised planetary corporate repute measuring tool that can be used to mensurate and compare with challengers, industries etc. Another barrier could be the deficiency of direction cognition about the importance of corporate repute which will cut down the organisations focus towards corporate repute direction. As mensurating corporate repute is a complex and hard attack which involves audits, researches etc, and big scale organisation may pull off to this with their existing resources but nevertheless little scale organisations may happen it upseting to apportion resources as they will be more focussed on their net income aims and endurance.

Concept of mensurating corporate repute

Concept of mensurating corporate repute has been argued by different writers in footings of its positive every bit good as negative effects to the organisation when practically making it in the existent universe. Fombrun ( 1996 ) has stated that “ Actively mensurating and pull offing repute although a dearly-won activity that requires sufficient investing of clip, energy, money and committedness is nil less than enlightened self-interest ” . Many writers have commented for mensurating corporate repute as it involves with figure of good effects such as It has been linked to purpose to buy a service ( Yoon et al.,1993 ) ; the attitude of purchasers to sales representatives and merchandises in the organisation purchasing state of affairs ( Brown, 1995 ) ; perceived merchandise quality and to discouraging rival entry when a tough stance is adopted ( Weigelt and Camerer, 1988 ) ; lending to public presentation differences between houses ( Rao, 1994 ) ; pulling investors, lower cost of capital and heightening the competitory ability of houses ( Fombrun and Shanley, 1990 ) ; and, to enabling strong organisation designation by employees and “ inter-organizational cooperation or citizenship behavior ” ( Dutton et al.,1994 ) .

But nevertheless Stephen Lloyd ( 2007 ) argues that organisations should non mensurate its repute because repute is a natural component that drives by the manner an organisation act harmonizing its values and norms, hence there is no demand in blowing organisations resources in mensurating it and pull stringsing harmonizing to the manner the organisation requires. On the other manus Annarita ( 2000 ) states that “ If repute is non adequately defined it can non be managed ” because corporate repute has been defined many writers based on different aspects, therefore when there is no peculiar definition to an component there can be a inquiry grade in mensurating it.

Approachs to Corporate repute measuring

Corporate repute measuring is topic that many writers, institutes and researches have actively participated in placing a standardised attack, hence as a consequence several theoretical accounts have developed nevertheless standardized attack has non been developed yet due to corporate repute is an component that is being linked to many internal and external constituents of an administration.

In general following three cardinal theoretical accounts can be taken into consideration ;

Corporate Repute

General Indexs

Identity Audit

Commercial indexs

Figure ; Corporate Reputation Measurement Tools

Beginning: adapted from Pull offing Corporate Reputation Student Hand Book

General indexs are indexs that will give a general indicant about how the company is executing in footings of its financials and remarks from external parties. Identity audit refers to the rating of Identity mix. On the other manus commercial indexs are indexs that are developed by organisations or institutes to mensurate corporate repute while custom-making harmonizing to the organisations specifications. Further information about these theoretical accounts will be discussed in the following chapter

In decision it can be said that corporate repute is one of the most of import factors that organisations should concentrate in such dynamic environment that is disputing twenty-four hours by twenty-four hours. Besides it is of import to cognize that corporate repute is straight linked with facets such as fight which needs to be driven proactively for endurance therefore actively mensurating it could be good in the long tally although it could be hard and complex to mensurate on a periodic footing as it involved with use of batch resources.

Methods of Measuring Corporate Repute

Corporate repute is mensurable plus for organisations but should be measured in a systematic and meaningful mode in order to acquire a clear image of where it stands ( Fombrun, 2003 ) .A assortment of applied measuring tools has been created that intent to mensurate corporate reputes. Most have been found desiring in one manner or another ( Bromley, 2002 ; Fombrun et Al, 2000 ) . In this chapter tools that have been recommended under three cardinal theoretical accounts will be critically evaluated based on standards in order to place the most suited tools for corporate repute measuring.

General Indexs

General Indicators involves with indexs that are non specifically developed to mensurate repute, nevertheless these indexs have the power to measure repute in fiscal footings and remarks from external parties which could give quantitative every bit good as qualitative consequences.

Table: General Indexs

These quantitative indexs step corporate repute based on the public presentation of the organisation disregarding the fact that stakeholders play a cardinal function in interrupting or constructing a corporate repute so hence media remarks can be utile to mensurate the stakeholders perception about the organisation and how media remark will impact on stakeholders perceptual experience alterations. A good reappraisal in the literary subdivision of a Sunday newspaper can do or interrupt a new novel. The reference of a peculiar vino on a cooking programme on the telecasting can see gross revenues rocket the undermentioned twenty-four hours ( Davies et Al, op cit, P. 33 ) . Another disadvantage of quantitative indexs are that such indexs like return on relationship, corporate repute rating and trade name equity will be complex and hard to mensurate as there are no specific guidelines on what facets to be taken into history. Finally it can be said that out of all the indexs media remark will be really utile to mensurate corporate repute efficaciously. However media comment entirely will non be utile to derive a wide image about the corporate repute of the organisation.

Identity Audit

Organizations individuality should concentrate on property or properties of a house that involves with intent of the being of the house, its mission and vision ( Albert and Whettem, 1985 ) . Harmonizing to ( Barney, 2001 ) if organisation wants its organisational individuality to be a beginning of competitory advantage, non merely must and organisations individuality be valuable, but it must be rare and dearly-won to copy.

Table: Identity Measurement Indexs

AC2ID tool evaluates the different individualities of the organisation to look into whether all individualities are in line with each other. This tool can be successfully applicable in a state of affairs where consumers and employees go forthing the organisation due to their confusion in individualities. Harmonizing to ( Balmer & A ; Geyser, 2003 ) Advantages of utilizing AC2ID is that it gives brief understanding about the spreads in individualities so that disciplinary actions are taken. Another advantage could be that when utilizing these tools point of views of many stakeholders will be taken into history so the consequence acquiring prejudice will cut down. Information aggregation and analysing will be high clip and budget consuming as several stakeholders demands to be reached to increase the effectivity of the undertaking ( Graham, 2005 ) .

Symbols audit is a construct where the current symbols of the organisation is evaluated based on to what extent consumer acknowledge the trade name, consumer association with the trade name, consumer perceptual experience about how resources are utilised to demo the coveted individuality. This tool can successfully be adopted for the organisations which emphasis more on physical grounds of the organisation due to a prohibition in corporate communicating. Several advantages of symbols audit has been highlighted by ( Bromley, 2002 ) such as the audit will supply a elaborate penetration sing the effectivity of the current symbols used. Another advantage that has been highlighted is that this audit will be easy to carry on and besides will be interesting for respondents as it is involved with symbols. But nevertheless it will be hard to acquire into a decision about what alterations need to be done as each respondent may give different position point in altering symbols because stakeholders different past experiences with symbols may act upon them bring forth thoughts sing altering them ( Fombrun, 1996 ) .

Commercial Indexs

Commercial Indexs are indexs that have been developed by research institutes, publications, writers etc for organisation that seeks to mensurate its repute. Commercial tools can be categorized into two sections viz. standardised tools and customised tools.

Table: Commercial Indexs

Standardized tools are the tools that are conducted by publications on an one-year footing which is published on their magazines or newspapers, for illustration LMD most well-thought-of, America ‘s most admired etc. one of the advantage of these tools are their standards ‘s criterion so organisations will be able to compare the consequences with challengers. But nevertheless many writers have criticized standardised tools due to factors such as these publications conduct their study merely in largest companies in the industry. And besides the study is conducted among the internal stakeholders where the other stakeholders are ignored ( Brown and Perry, 1994 ; Fryxell and Wang, 1994 ) .

On the other manus customized tools are tools that are conducted by specialised houses as a study when a client company gives them a briefing about what countries of corporate reputes should be looked into. One of the advantages of these tools is that these tools can be customized harmonizing to the demand so organisations will be able to carry on the study merely on the country which they think could be a job to their repute. But nevertheless, although these tools can be customized, it has been hard to compare their consequences with challengers, since the graduated tables vary in the Number and content of points every bit good as trying frames and administrations may happen it hard to carry on study on a periodic footing as these tools are extremely expensive ( Fombrun, 2007 ) .

In decision it can be said that each corporate repute measuring theoretical account has of import tools that can be taken into consideration when carry oning a comprehensive and productive measuring of corporate repute. Therefore it has been decided to take media remarks from general indexs and two key tools ( AC2ID and Communications ) from individuality audit to fix a comprehensive mini study and concentrate group treatment for CTC that will cover wide scope of corporate repute properties and will be helpful to supply valuable consequences so that spreads in corporate repute can be identified and minimized.

Review of CTC ‘s Corporate Repute

This chapter takes into history the justification of the selected measuring tools to name CTC ‘s current reputational position and methodological analysis used to derive penetrations from stakeholders about their current perceptual experience about CTC. Besides this chapter includes a critical analysis of the cardinal findings from methodological analysis to place chances for betterment.

Corporate Repute

Corporate Image

Corporate Identity

Corporate Communication

Corporate Behaviors

Ocular Presentation

( Symbolism )

Corporate Mission

Figure: Corporate Repute Grid

Beginning: adopted from Pull offing Corporate Reputation Student Hand Book

Above diagram clearly shows what aspects lead to corporate repute, therefore it can be seen that corporate individuality and Image plays a major function in pull offing the repute of an organisation. Corporate communicating besides plays a bigger function in pass oning the right individuality to several stakeholders. Therefore it has been decided to concentrate on corporate image, individuality and communicating as those a cardinal indispensable elements for pull offing corporate repute.

Justification of selected measuring tools

Figure: Audited account Conceptualization


When mensurating the corporate repute of CTC utilizing the above mentioned tools it is imperative to derive different stakeholder penetrations in order to mensurate corporate repute efficaciously and expeditiously without allowing it go a prejudice survey. Therefore several methodological analysiss have taken into history such as a mini questionnaire and concentrate group treatment for the primary audit.

Secondary audit involves with garnering media remarks sing CTC, company internal records and carry oning a SWOT analysis in footings of the repute. More information about methodological analysiss and execution and restriction of survey can be found on appendix 7

Key findings of the audit

The audit resulted in placing cardinal issues with respect to the corporate repute of CTC. Findingss of the audit have been included in the measuring tools to acquire an apprehension about the current state of affairs of the corporate repute.

AC2ID tool

Figure: Identity Audit Findingss

The construct of individuality refers to how an organisation expresses and distinguish itself in relation to its stakeholders ( Van Reil and Balmer, 1997 ) . Harmonizing to CTC individuality audit it can be seen that CTC has many existent individualities that could be communicated in order to fulfill the stakeholders outlooks but nevertheless through its communicating channels CTC is continuously seeking to pass on fiscal strength, merchandise quality and employer trade name ( mention Appendix 6 point 4 ) which could fulfill the outlooks of stockholders, consumer and employees, nevertheless it is imperative to observe that there are several other stakeholders such as authorities governments, force per unit area groups, distributers and husbandmans who has a higher involvement and power on the organisation whose outlooks should besides be catered through communicating ( mention Appendix 4 ) .

Finally harmonizing to individuality audit it can be said that CTC is presently confronting a mismatch in their existent, ideal and communicated individualities which has impacted on its corporate repute where different stakeholders has developed different conceived individualities about the organisation which is clearly shown in the below spread analysis.

Current Image

One of the best topographic point to work for in Sri Lanka, Unethical & A ; Irresponsible Organization, Consumer Centric, subscriber to authorities gross

Desired Identity

A financially healthy corporate responsible administration with environmental friendly working environment and consumer centric civilization

Gap Analysis

Corporate Social Responsibility



Figure ; Gap Analysis

Communicationss Audit

Table: Communication Audit Findingss

Harmonizing to the communicating audit it can be seen that CTC corporate communicating scheme is non at a satisfactory degree with respects to carry throughing outlooks of its cardinal stakeholders ( Refer Appendix 6 point 6 ) because CTC being an organisation that operates in a extremely controversial industry which is perceived as an unethical industry, communicating plays a major function in constructing corporate repute, However when looking at the above tabular array and audit findings it can be seen that CTC is involved in batch of activities to carry through its stakeholders demands, nevertheless due to miss of consciousness among its stakeholders sing the CSR enterprises stakeholder perceive administration as an unethical administration ( Refer Appendix 6 point 7 ) . On the other when it comes to the expressiveness of CTC in footings of its individuality communicating many stakeholders have suggested that CTC is missing in footings of transparence and duty ( Refer Appendix 6 point 5 ) which besides points out that CTC is weak in its communicating as it does n’t carry through the information demands of its stakeholders.

Media remarks


Awards & A ; Recognition


Employer Brand

ProductCTC is a celebrated company among the Sri Lankan media channels due to its presence in the controversial industry with many legal barriers and negative perceptual experiences. Harmonizing to Appendix 3 it can be seen that CTC is good known company who ‘s positive and negative articles are acquiring published more frequently in different media channels. Following analysis shows the weight of positive and negative media remarks on the administration.

Bing able to stay at the fourth topographic point in concern today exceed 20 companies

Bing among the top 5 employer trade names in Sri Lanka.

Overall portion of voice

-9 %

( Negative remarks overweigh Positives )

Strong fiscal strength and public presentation is reviewed by Colombo Stock Exchange.


Employees wining the HR awards and SLIM Awards.


Net incomes and gross growing.



Income of Cigarette merchandising goes to England

Public wellness concern due to smoking

Danger of inactive smoke

CTC got caught giving payoff to authorities governments


Fiscal Impact of smoking to the authorities

Brand launch run into protest

Smoking – a possible wellness jeopardy

Irresponsible selling


Becoming a portion Killing civilization

Youth smoke bar


Figure: Media Comment Map

Strategic Issues

Harmonizing to the audit findings it has been identified that CTC ‘s image and Identity is non in line with each other which had impacted on its repute.

Figure ; Corporate Reputation of CTC

An analysis has been done to place the root causes of the spread so that disciplinary actions can be taken consequently ; root causes are as follows ;

Lack of consciousness about the importance of corporate repute among employees.

One of the issues for mismatch in image and individuality has been identified as deficiency of consciousness about the importance of corporate repute among employees where employees of CTC has stated in the focal point group session that corporate repute is non an influential factor for endurance and fight.

Figure: Influential Factors for Survival and fight

Beginning: Focus Group Findings

Lack of transparence sing company activities

Another issue that was identified through the audit is that bulk of the stakeholders are non holding equal consciousness on company activities. Besides harmonizing to the audit happening bulk of stakeholders have commented that CTC does non affect in CSR enterprises, whereas in world CTC is the highest contributing companies towards CSR Initiatives Island broad. Following chart clearly shows that many stakeholders have rated a lower mark to Transparency of the company.

Figure: Expressiveness of CTC

Beginning: Questionnaire Findingss

Ineffective communicating scheme

Harmonizing to the communicating audit it can be identified that there is a loophole in CTC communicating scheme where it merely satisfy internal stakeholders such as stockholders, employees, distributers etc through its communicating methods where as they have ignored the outlooks of external stakeholders.

Building CTC ‘s Corporate Repute

This chapter involves with supplying recommendations to rectify identified issues through reputational audit. Suitability, Acceptability and Feasibility of the recommendation is taken into consideration while particular attending has been provided for fiscal and political deductions in implementing the recommendations. Each recommendation will be equipped with an execution programs so that each recommendation will be implemented efficaciously and expeditiously. Finally how these recommendations will impact on the competitory place of the administration will be critically evaluated.

Recommendations & A ; Justification

Recommendation 1

Enhancing the effectivity of corporate communicating procedure to carry through stakeholder outlooks

Justification & A ; Importance of recommendation

CTC ‘s current corporate communicating procedure has been identified as an uneffective procedure as it has created a spread between the perceived image and coveted individuality. Therefore heightening the effectivity of corporate communicating procedure may understate the spreads between image and individuality taking to CTC going extremely reputed company because CTC is presently involved in many CSR activities ( Refer Appendix 5 point 1.9 ) .For illustration Dialog Sri Lanka late conducted a corporate communicating revamp to understate its spreads in image and individuality, consequences of this activity made duologue one of the extremely respected and reputed company in Sri Lanka

How it is done

Corporate communicating procedure of CTC will be segmented into 3 classs such as direction, selling and organizational where each class stakeholders will be identified to choose the most suited manner of communicating while apportioning a responsible individual for each communicating platform

Table: Corporate Communication Procedure


This procedure betterment will ensue in CTC using every available communicating platforms to pass on what is expected by its stakeholders.

Awareness and transparence degrees sing CTC may better among its stakeholders.

CTC will be able to understate its spread between image and individuality.

Resource Assessment

Table: Recommendation 1 Resource Assessment

Execution deductions

Fiscal Deductions

Adopting the extra communicating methodological analysiss may affect an extra cost of about Rs. 5 million per annum.

Enrolling add-on human resources to pull off the communicating procedure may affect an extra cost.

Tax return on investing of the undertaking will be indirect as it may better the public presentation of the administration.

Payback period of the undertaking will take at least 1 twelvemonth to demo consequences but it will be long-run investing.

Political Deductions

Communication section will non be able to concentrate on particular undertakings until they are used to the new system so directors may utilize their political influence to derive focal point for their undertaking.

Frequent communicating through internal communicating methods may thwart employees during busy times so they may utilize their political powers to halt it.

Recommendation 2

Enhancing CTC employee ‘s consciousness degrees on the importance of corporate repute and puting up policies harmonizing to the desired individuality.

Justification & A ; Importance of recommendation

Employee ‘s actions and behaviors have larger part towards the repute of an administration. Therefore it is of import that employees of CTC are cognizant about the importance of corporate repute for the concern so that direction set up policies to alter employee ‘s thought, actions and behaviors harmonizing to the coveted corporate repute of CTC. Therefore enlisting of a adviser to underscore the importance of corporate repute has become successful to alter company ‘s behavior, actions and believing harmonizing to its desired individuality by puting up cardinal policies. An external adviser has been chosen for this undertaking is because an external adviser may hold a wider cognition and experience sing the topic instead than an internal individual.

How it is done

This will be done through enlisting of a adviser for a period of one hebdomad to carry on meetings to direction in order to underscore on the importance of corporate repute direction and its impact on the endurance and fight, and how the company should alter its thought, actions and behaviors harmonizing to its desired individuality which will ensue in understating an of import failing of deficiency of consciousness towards corporate repute ( Refer appendix 5 point 2.3 ) and puting up cardinal policies harmonizing to the coveted repute.


Awareness degrees of employees sing the importance of corporate repute may better.

Employees may alter their actions, behavior and thought in line with the desires individuality.

Immune to alter may cut down to a greater extent.

Administration will be able to put up cardinal policies for employees to construct up its repute.

Resource Assessment

Table: Recommendation 2 Resource Assessment

Execution deductions

Fiscal Deductions

CTC will hold to bear an extra investing of Rs.1million on adviser fee and locale agreements which will non hold a direct return on investing and low payback period.

Political Deductions

Choosing the right adviser who is recognised as a function profile in among many employees of the administration so that resistant to alter will be reduced to a greater extent.

Credence of the importance of corporate repute for CTC will be a inquiry as employees could reason that CTC has been lasting in the industry for a long clip without concentrating on corporate repute.

When practising the policies senior employees may demo deficiency of support and resistant to alter to their traditional thought, actions and behaviors harmonizing to the desired individuality

Recommendation 3

Monitoring & A ; rating of new corporate communicating procedure on its stakeholders and heightening the relationship degrees.

Justification & A ; Importance of the recommendation

In this recommendation new corporate communicating procedure will be evaluated and monitored whether it fulfils each stakeholder outlooks while constructing relationship degrees and bettering interaction degrees. Carry throughing stakeholder outlooks and bettering interaction degrees will take to stakeholders holding positive attitude towards the administration ‘s repute.

How it is done

Separate corporate repute squad will be appointed where a squad member from each section will be allocated to this map who will be working on CR project apart from carry oning their nucleus undertakings and caput of communicating will be given the duty to head the squad. CR squad will be responsible to supervise satisfaction degrees of stakeholders with the communications scheme while maintain a good relationship and interaction degrees with specific departmental stakeholders and update them on what ‘s go oning in the company.

Information technology




Human resource

Research and development

Undertaking director

Team member

Team member

Team member

Team member

Team member

Team member

Figure: CR Team


Relationship degrees may better to the optimal degree with stakeholders so the impact on the concern from stakeholder will be minimised.

Monitoring and rating of new corporate communicating procedure can be implemented.

New thoughts on how administration can show itself to its stakeholder may come up.

Resource Assessment

Table: Recommendation 3 Resource Assessment

Execution deductions

Fiscal Deductions

CTC will hold to apportion a budget of Rs.0.5 million for consistent communications and battles with stakeholders

Company may hold to give a wages to the selected employees due to the extra work load that is carried by each squad member.

Political Deductions

When employees are pulled out from sections it will impact on work programmes of each section so departmental caputs may defy let go ofing their employees for the undertaking.

Even though employees are pulled into the undertaking squad employees will be de-motivated as an extra work load will be allocated to them in add-on to their twenty-four hours to twenty-four hours work

capableness spreads may originate as different employees from different section will transport different capablenesss and accomplishments


In decision it can be said that CTC ‘s current corporate repute is a inquiry grade as there is a spread between the individuality which the administration is seeking to make among its stakeholders and image that stakeholders perceive sing the administration. CTC will non be able to better its corporate repute among its stakeholders if they continue with the current individuality and image. The audit that was conducted utilizing Identity, communicating and media remark measuring tools resulted in designation of four path causes for the mismatch between the image and individuality for which three of import recommendations have been suggested to better the image so that image and individuality will be in line with each other ensuing in corporate repute of CTC to better. Execution of the above recommendations will take to hold a direct impact on fight in many ways such as acquiring higher portion of billfold as many consumers are willing to put more money on extremely reputed and trusty administration instead than low reputed company. Repute could besides move as signal of quality and an entry barrier to the competition. So when the fight of the administration improves it automatically improves the stockholder value as bulk of the stakeholders are holding credibleness about the public presentation so positive word of oral cavity about the public presentation and repute of CTC will increase the figure of possible investors willing to put on the company. When a company is holding a strong competitory place and better entree to capital it will be helpful for the company pull the right endowment to the administration as many possible employees may expose to positive word of oral cavity through communicating methodological analysiss which will ensue in trust being built among the possible employees. CSR enterprises and the above factors in head CTC will be known as a corporate societal responsible company due to its respectable activities.


Web Mentions

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hypertext transfer protocol: // ( Accessed on 11th August 2012 )

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hypertext transfer protocol: // uid=1415 ( Accessed on 15th August 2012 )

Information about CTC winning “ Life Time Achievement Award ” , Daily News ( Online ) ,

hypertext transfer protocol: // ( Accessed on 18th August 2012 )

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hypertext transfer protocol: // nid=430989155 ( Accessed on 20th August 2012 )

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hypertext transfer protocol: // ( Accessed on 22nd August 2012 )

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hypertext transfer protocol: // ( Accessed on 20th August 2012 )

Book & A ; Journal mentions

Argeni, P. ( 1998 ) Corporate Communication, 2nd Edition, New York, McGraw-Hill

Abratt, R, ( 1989 ) , ‘A new attack to the corporate image direction processes, Journal of Marketing Management, 5: 63 – 76.

Albert, S. and Whetten, D. A. ( 1985 ) , ‘Organisational Identity ‘ , Research in Organisational Behaviour, Volume 7 ( Greenwich ) , 263 – 95.

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Internal Reports

CTC Annual Report ( 2010 )

CTC Annual Report ( 2011 )

CTC Social Report ( 2011 )


Fonseka, S. D. CSR Manager, Ceylon Tobacco Company ( Interview conducted on 18th September 2012 )

Jayakody, S. Head of Trade, Ceylon Tobacco Company ( Interview conducted on 18th September 2012 )

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Undertaking 2 – The relationship between corporate civilization and corporate repute

Choice of mark diary

The selected mark diary can be named as Corporate Reputation Review. One of grounds behind taking this diary is due to the fact that this article is based how corporate civilization could impact on corporate repute. Another grounds behind taking this article is that the mark audience who reads this article are chiefly man of affairs who are interested about the ways in which they could heighten their concern repute so hence this article will be utile for the mark audience. The articles that get published in this diary are more focussed on corporate repute direction. Frequency of publication of this diary is monthly footing. The range of this diary is high due to handiness of the diary in more than 20 states. The readership of the diary could be high due to high circulation in administrations.



This papers has been materialized to make an apprehension on the relationship between corporate civilization and corporate repute.


The relationship between corporate civilization and corporate repute was identified by measuring the extent to which corporate civilization impacts on corporate communications and its significance in act uponing corporate repute. In order to critically evaluate and justify on the subject old surveies, journal articles, company and industry illustrations will be taken into history.


The determination of the survey reveals that there is a strong relationship between corporate civilization and corporate repute due to communicating of current civilization to the possible stakeholders through corporate communications. Harmonizing to the rating of CTC civilization and its impact of on corporate repute due to corporate communicating it has been identified that there are several cultural every bit good as communicating issues, the identified cultural issues are as follows ;

Lack of honestness at work

Lack of Freedom through duty

Lack of Open mindedness

The identified communicating issues are as follows ;

Autocratic determination devising

Lack of trust, assurance and credibleness in communicating


This paper will heighten the apprehension of the reader in footings of act uponing power of corporate communicating to pass on the current corporate civilization of the organisation and how will it impact of the overall corporate repute of the organisation. Besides this paper will supply an rating on the current corporate civilization and communications of CTC in order to place possible spreads and to rectify them consequently.


Corporate repute, corporate communicating and corporate civilization

What is corporate civilization

Corporate civilization can be defined as a aggregation of traditions, values, policies, beliefs and attitudes that constitute a permeant context for everything we do and believe in an administration ( Mullins, 1999 ) on the other manus harmonizing to Schein ( 1985 ) ‘corporate civilization is the manner we do things round here ‘ .

Environmental ForcesCorporate civilization is one of the internal factors that influence corporate repute of an administration hence corporate civilization and corporate repute has a direct nexus between them. Following model developed by Nelson & A ; Kanso clearly shows the nexus between corporate repute and corporate civilization

Corporate Culture

Corporate Identity

Corporate Scheme

Corporate Personality

Corporate Repute

Corporate Image

Identity Image Interface


Leadership vision

Merchandises / Servicess

Administration Structure

Corporate Identity Structure


Management Employees



Corporate doctrine

Core Value

Corporate Mission

Figure ; Internal Influences of Corporate Repute

Beginning: – Nelson & A ; Kanso ( op cit, p 145 )

Harmonizing to the above model it can be seen that corporate civilization plays a major function in constructing the individuality of the administration harmonizing to the image that their stockholders would wish to see. On the other manus corporate communicating plays a back uping function in pass oning the individuality to its stakeholders which will make a positive image among the stakeholders which will finally ensue in constructing corporate repute among its stakeholders. For illustration MAS Sri Lanka successfully utilized many corporate communicating methodological analysiss such word of oral cavity, Business articles, websites etc to advance their bing adult females sceptered civilization to construct a repute among possible employees to pull them towards MAS. On the other manus late Sony Company felt victim to a major security breach on its drama station web which leaked the confidential personal inside informations of 1000000s of consumers which has resulted the company in a major reputational catastrophe chiefly due to employees of Sony moving against company values and policies of consumer privateness.

Figure ; Link between corporate civilization, communicating and repute

Therefore harmonizing to the above diagram corporate civilization of an administration can move both positively every bit good as negatively towards the corporate repute of an administration so pull offing corporate civilization and pass oning it utilizing effectual corporate communicating methods is really of import for an administration to construct its repute among stakeholders.

Corporate Culture @ CTC

Corporate Culture at CTC will be analysed and evaluated utilizing cultural ‘iceberg ‘ as follows ;

Table ; corporate civilization rating

Cultural elements

Declared elements

practised by CTC ( Yes/No )






CTC has gained batch of repute by being a friendly and trusty and punctual administration

Honesty and Integrity is missing at CTC as no acknowledgment or wagess are allocated for employees with high unity and honestness





Hard working





Environmental friendly working environment


In footings of the artifacts, CTC has provided with the best installations to give their employees an attractive and better working environment

High dependence on engineering may take to danger if there is a system failure

High technological ambiance


Corporate societal Responsible


Friday insouciant wear



First name civilization


First name civilization clearly emphasises the equality among the employees.

CTC is known for holding the best structured concern processors due to its transnational experience.

Employee motive has improved with the honoring strategy.

The usage of first name civilization may reflect no regard for seniors and seniors. High dependence on concern processors may take to low velocity to market and reaction degrees.

Hard working and committed employees may acquire de-motivated due to errors in strategy.

Structured concern processors and processs


Wage for public presentation


Values & A ; Beliefs

Freedom Through Responsibility


Strength through diverseness has been practised at CTC when multi spiritual and transnational employees sharing their experiences to work towards common end. Enterprising liquors are practised at the maximal degree with batch of inventions and thoughts coming up to better public presentation.

Employee ‘s freedom to make work the manner they want is non practised at CTC as higher-ups are asked to micro pull off their subsidiaries. Open mindedness is non practised at CTC as some advanced thoughts of employees are rejected due to traditional thought by employees

Strength through Diversity


Open Mindedness


Enterprising Spirit



Survival of the fittest


When it comes to assumptions it is assumed to be a administration with batch of squad spirit and employees at CTC assumes that it ‘s a topographic point where merely fit people survive and seniors at CTC are given particular attending and regard by junior employees which improves the image of the administration

Inventions at CTC is merely an premise because in world inventions are banned by the traditional minds

Team work


Respect for seniors




Harmonizing to the above tabular array it can be seen that CTC is populating the most of its declared cultural elements but nevertheless there are several cultural elements that CTC is presently non rehearsing which could ensue in higher impact on CTC ‘s corporate repute.

Corporate Communication @ CTC

How CTC ‘s corporate civilization is being build ( Internal Communication )

Gibb ( 19610 Suggested that the communicating clime of an administration may be unfastened ( back uping collaborative working and the multi directional flow of information ) or closed ( detering it ) .

CTC is presently utilizing closed communicating clime where information is used for competition and political advantage ( unfavorable judgment, Judging, Scoring points ) . Besides there is a inclination towards secretiveness, falseness and use of information. Employees have a small willingness to discourse or oppugn the position quo, or to volunteer new thoughts because of the hazard judgement or reprisals. In this clime inputs from lower degree employees are non taken into consideration so hence communicating, acquisition, and creativeness are inhibited.

Current communicating clime will farther be evaluated and analysed utilizing five dimensions of an ideal communicating clime recommended by Redding ( 1972 ) ,

Table ; Elementss of Ideal communicating clime


Practised by CTC




In footings of supportiveness CTC is holding a really high evaluation because communicating section is extremely supportive with any type of information demands and they update the employees of what ‘s go oning in the company on a regular basis.

Participative determination devising


As CTC is rehearsing a closed communicating clime determination are taken from the top direction and cascaded down to low degree staff so lower degree employees view is non taken into history

Trust, Confidence and Credibility


Trust, assurance and credibleness of the information is questionable as in some state of affairss company hides the existent state of affairs from the internal stakeholders and demo a wholly different image.



New advanced thoughts are non welcome to CTC as it practises closed communicating clime.

High public presentation ends


CTC sets high public presentation ends because CTC is a public presentation oriented administration and public presentation is in the Black Marias of every employee.

The cardinal acquisition ‘s from the above tabular array is that CTC is presently rehearsing some elements of ideal communicating clime which has shown great concern consequences, However there are some countries such as participative determination devising, openness and edifice credibleness that CTC needs to concentrate and rehearse in order to do the communicating clime an ideal one.

How CTC ‘s corporate civilization is being heard ( External Communication )

CTC ‘s civilization is the most popular civilization in the corporate universe because of the fact that it uses several extremely effectual tools to pass on its civilization to possible employees. Most influential and effectual tool that they use is the positive word of oral cavity which has a greater degree of act uponing power over the possible employees. CTC practise this expeditiously and efficaciously through taking attention of its employees and carry throughing their demands so that when they go out to their communities they speak positive about the company ‘s civilization. Another tool could be printing the awards and acknowledgments gained by the administration on concern magazines and newspapers so that corporate community is cognizant about the civilization at CTC.

Designation of Root causes

With mention to the above ratings of corporate communications and corporate civilization several issue can be identified that could hold an impact on the overall repute of the administration. The issues and the root causes are as follows ;

Cultural issues

Lack of honestness at work – Lack of wagess and acknowledgments for honest and integrate employees.

Lack of Freedom through duty – Micro Managing subsidiaries

Lack of Open mindedness – Senior and direction employees being traditional minds

Communication Issues

Autocratic determination doing – Closed communicating clime

Lack of trust, assurance and credibleness in communication- Closed communicating climes


Figure ; Conceptual Framework

Justification & A ; Importance of recommendation

The ground behind urging Open communicating clime is because unfastened communicating clime is an unfastened and honest clime. In this communicating clime everyone ‘s input is valued, irrespective of function and position. Multi directional exchange of information and positions can be seen in such communicating climes. Therefore following unfastened communicating clime will heighten the trust and credibleness of the information that is shared with its stakeholders and promote the participative determination devising construct.

Decrease in micro managing subsidiaries is recommended to heighten the practise of “ Freedom through Responsibility ” value because the employees of CTC are rehearsing the above value, higher-ups should cut down the practising of micro direction construct as it will cut down the freedom of the employees.

Harmonizing to the rating it can be seen that presently CTC is holding a traditional thought where bulk of the employees are still think from traditional point of position which has resulted in value of “ Open Mindedness ” non being practised by the company where there is no acknowledgment new and advanced thoughts. Therefore altering the thought from traditional to innovative will ensue in higher acknowledgment for inventions which will finally ensue in CTC going a company rehearsing all the values they declare.

Presently Honesty and unity is non practised at CTC chiefly due to deficiency of wagess and acknowledgment for honest employees, therefore it is recommended to apportion wagess and acknowledgment for employees who have been honest to the company work so that company will be able to better the behavior of the corporate civilization.

How the recommendations will be implemented

The transition of communicating clime from closed to open involves communicating processs change such as one manner communicating has to be converted to a two communicating where every employee can take part in determination devising. This could be efficaciously done with the aid of a communicating adviser who will assist puting new communicating processors and processs to run into the demands of unfastened communicating clime.

Decrease in micro pull offing subsidiaries can be done through carry oning a meeting with direction employees and pass oning them about the impact of micromanagement on the value of “ Freedom Through Responsibility ” and employees motive degrees and bespeaking them to cut down it to the maximal degree while acquiring their penetrations about the recommendation. This could be monitored by carry oning a study among the employees sing the “ Freedom through duty ” .

Changing the thought of traditional employees is non an easy undertaking as it involves with altering the manner people work and think, hence top direction may hold to carry on a meeting for all the employees and underscore the importance of accommodating advanced thought with the addition in competition and the negatives that the company will hold to confront if the traditional thought prevails. Finally company can bespeak employees to acquire off from the traditional thought and get down edifice advanced point of position as it is required by the company

Allocating wagess and acknowledgment for Honesty and unity of the employees will be done by including honestness and unity to employee ‘s rating standards and choosing the most honorable employees of the twelvemonth yearly so that employees may concentrate on rehearsing honestness and unity as practise so the behavior of the corporate civilization may better.


Honesty, trust and credibleness of the information will better due to the execution unfastened communicating clime which will finally ensue in betterment in intern


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