Hirst AcademyBrand Strategy & Communication
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Module 5

Corporate Communication and Stakeholders

Estimated time: 6–7 hours · Extends branding beyond customers to everyone whose trust the organisation needs.

Brands are judged by far more people than the ones who buy them. By the end of this module you'll be able to distinguish corporate identity, image and reputation and take a reputation snapshot; prioritise stakeholders with the salience model and the power–interest grid; plan internal and employer-brand communication; and check sustainability claims against UK, EU and US rules. The running case is Fellwise Outdoor Co., the course's fictional UK outdoor-clothing brand, which sells through its own website to customers in the UK and the EU as well as through specialist retailers.

Interactive Tool

Stakeholder Prioritisation Map

Score your stakeholder groups on power, legitimacy and urgency (Mitchell, Agle and Wood, 1997) and get a ranked list of who needs communication first.

Open the tool →
5.1

Corporate Brand and Reputation: Identity, Image and Reputation

Module 1 treated a brand as a set of memories held by customers. A corporate brand widens the audience: the organisation itself is branded, and it is judged by employees, suppliers, investors, regulators, journalists and campaigners as well as by buyers. Fellwise's name appears on every product, so its corporate and product brands are effectively the same, a branded house in the architecture terms you met earlier. Anything that damages trust in the company therefore touches every jacket.

Three terms are often used interchangeably, a confusion Balmer (2001) likened to a fog. Corporate identity is what the organisation actually is: its strategy, culture, structure and behaviour as well as its name and visual identity. Corporate image is the set of perceptions a person holds at a given moment, shaped by the latest advert, news story or service encounter. Corporate reputation is slower and cumulative. Fombrun (1996) treated it as reputational capital, built by consistent behaviour over time. Reviewing 54 well-cited articles, Walker (2010) defined reputation as a relatively stable, issue-specific, aggregate perception of an organisation's past actions and future prospects, compared against some standard, and argued that different stakeholder groups may therefore hold different reputations of the same firm. An organisation can be admired by customers for product quality and distrusted as an employer.

That finding shapes measurement. Published rankings and commercial reputation trackers survey the public or business audiences on dimensions such as products, workplace, governance and citizenship, and they are useful for benchmarking. They also have known weaknesses: Brown and Perry (1994) showed that ratings in Fortune's "Most Admired Companies" survey were heavily coloured by firms' previous financial results, a financial halo that has to be removed before the ratings say much about anything else. For most organisations a more useful tool is a reputation snapshot built from several sources, such as a short survey of each key group, media and social analysis, employer review sites, complaint data and the brand tracker, and reported group by group rather than as a single score.

Learning ObjectiveDistinguish corporate identity, image and reputation, and assemble a reputation snapshot that reports each stakeholder group separately.
Key ConceptsCorporate brand; corporate identity, image and reputation (Balmer, 2001); reputational capital (Fombrun, 1996); reputation as stable, aggregate, issue-specific and group-specific (Walker, 2010); rankings, trackers and the financial halo (Brown and Perry, 1994); multi-source reputation snapshots.
Practical ExampleFellwise's snapshot shows a strong reputation with customers for waterproofing and repairs, but employer review sites describe pressured peak-season shifts in its warehouse and a campaign group's blog questions its "eco-friendly" range: three reputations, not one.
ExerciseBuild a reputation snapshot for your organisation (or Fellwise, starting from the three reputations in this lesson's example and adding a fourth group labelled as an assumption): for four stakeholder groups, record one evidence source, the issue each group cares about most and a rating from 1 to 5, then write two sentences on where the reputations diverge.
5.2

Stakeholder Mapping: Salience and the Power–Interest Grid

Freeman (1984) defined a stakeholder as any group or individual who can affect or is affected by the achievement of an organisation's objectives. The definition is deliberately broad. That is its strength and its practical problem: almost everyone qualifies, and no communications team can talk to everyone at once. Stakeholder mapping is the discipline of deciding who needs attention, of what kind and when.

Mitchell, Agle and Wood (1997) proposed that managers give priority to stakeholders according to three attributes. Power is the ability to impose one's will on the organisation through coercive, financial or normative means, including media and public pressure. Legitimacy is a claim that is socially accepted as proper, such as a contract, a legal right or a moral stake. Urgency is the degree to which a claim is time-sensitive and critical to the stakeholder. Salience rises with the number of attributes held. Groups with one attribute are latent (dormant, discretionary or demanding); those with two are expectant (dominant, dangerous or dependent); those with all three are definitive. The model is dynamic, and its authors stress that the attributes are socially constructed rather than fixed facts. A dormant group acquires urgency when an issue breaks, and a campaign group with a well-timed report can move from demanding to dangerous within a week.

The older power–interest grid, adapted from Mendelow (1981) and popularised in strategy textbooks, is simpler and widely used in practice. It plots stakeholders by power and interest, giving four strategies: manage closely (high power, high interest), keep satisfied (high power, low interest), keep informed (low power, high interest) and monitor (low on both). It is quick to draw, but it misses legitimacy and timing, which is exactly where corporate communication problems tend to start.

Both tools need critical handling. Salience describes whom managers do attend to, not whom they should: groups with little power, such as local communities or the natural environment, may have strong moral claims and a weak voice. Twenty years on, the model's authors traced how widely it has been extended and contested (Wood et al., 2021). A map is a judgement, so record the evidence behind each score and revisit it whenever an issue moves.

Learning ObjectivePrioritise an organisation's stakeholders using the salience model and the power–interest grid, and justify each priority with evidence.
Key ConceptsStakeholder definition (Freeman, 1984); power, legitimacy and urgency (Mitchell, Agle and Wood, 1997); latent, expectant and definitive stakeholders; the dynamics of salience; the power–interest grid and its four strategies (adapted from Mendelow, 1981); salience as managerial perception and its ethical limits (Wood et al., 2021).
Practical ExampleA walking charity that Fellwise sponsors has legitimacy and interest but little power over the business, so it sits in "keep informed" until it considers withdrawing its endorsement over the green-claims row, which gives it urgency and media influence.
ExerciseAfter reading how Fellwise weights and scores its six groups in the worked example at the end of this module, draw a stakeholder map for your organisation: list six groups, score each on power, legitimacy and urgency in the Stakeholder Prioritisation Map (Stakeholder Prioritisation Map), place the same groups on a power–interest grid, and note where the two tools disagree and why. If you don't have an organisation, use Fellwise: start from the worked example's six groups, swap suppliers for the walking charity in this lesson's example, score it at the point it considers withdrawing its endorsement, and explain how the ranking moves.
5.3

Internal Communication and Employer Branding

Employees are the stakeholders most often forgotten in corporate communication plans, and the ones customers meet most. They deliver the brand promise in shops, on the phone and in the warehouse, and they carry the organisation's reputation to friends, recruiters and social media. Welch and Jackson (2007) argue that internal communication has too often treated employees as a single public. Their internal communication matrix separates four dimensions: line-manager communication about each person's role; team peer communication; project peer communication; and internal corporate communication, from senior leaders to all employees, about the organisation's direction and goals. The last dimension is the one a corporate communications team owns most directly, and its aims, such as commitment, a sense of belonging and an understanding of why things are changing, differ from those of a team briefing.

Employer branding applies brand thinking to the employment relationship. Ambler and Barrow (1996) defined the employer brand as the package of functional, economic and psychological benefits provided by employment and identified with the employing company. Backhaus and Tikoo (2004) developed the idea into a framework: employer brand associations shape an employer image that attracts potential recruits, while the same brand, working through organisational identity and culture, builds the loyalty of current staff. Many organisations summarise the offer as an employee value proposition.

The critical test is consistency between promise and experience. An employer brand that advertises purpose and flexibility while staff experience the opposite is quickly exposed on employer review sites and social media, and it damages the corporate brand along with it. Internal audiences also need to hear significant news before, or at the same time as, the outside world; staff who learn about a restructuring or a controversy from the press are unlikely to defend the organisation. How employees behave and speak when things go wrong will matter again in Module 6. A good internal plan therefore sets objectives for each employee segment, chooses channels that reach deskless as well as office staff, and builds in two-way listening rather than broadcasting alone.

Learning ObjectiveDesign an internal communication and employer-brand plan that segments employees and keeps the employment promise consistent with the corporate brand.
Key ConceptsEmployees as a multidimensional stakeholder; the internal communication matrix (Welch and Jackson, 2007); internal corporate communication; functional, economic and psychological benefits (Ambler and Barrow, 1996); employer image, attraction and loyalty (Backhaus and Tikoo, 2004); employee value proposition; promise–experience gaps; inside-first sequencing and two-way listening.
Practical ExampleFellwise's recruitment adverts promise "people who love the outdoors, working for a brand that cares", yet warehouse staff have no company email and hear news second-hand, so the plan adds shift briefings, a monthly printed update and a quarterly staff forum with the operations director.
ExerciseWrite an internal comms plan for your organisation (or Fellwise, starting from the warehouse staff in this lesson's example): three employee segments, the objective and key message for each, the channels that actually reach them, a feedback mechanism, and one employer-brand promise you will test against current employees' experience.
5.4

Purpose and Sustainability Communication: Greenwashing and the Law

Purpose and sustainability now sit at the centre of many corporate brands, and they are where corporate communication meets the law most directly. Delmas and Burbano (2011) define greenwashing as the intersection of poor environmental performance with positive communication about it, and trace its drivers to lax regulation, market pressure, organisational incentives and individual biases. Vague green claims expose the brand to regulators, campaigners and journalists at once.

In the UK, the Competition and Markets Authority's Green Claims Code (CMA, 2021) explains how existing consumer law applies to environmental claims through six principles: claims must be truthful and accurate; clear and unambiguous; must not omit or hide important relevant information; comparisons must be fair and meaningful; claims must consider the full life cycle of the product or service; and claims must be substantiated. The CMA warns that terms such as "green", "sustainable" or "eco-friendly", especially without explanation, are likely to be read as promising a positive environmental impact. In March 2024 it secured undertakings from ASOS, Boohoo and George at Asda to replace vague terms with specific ones. The stakes rose with the Digital Markets, Competition and Consumers Act 2024: since 6 April 2025 the CMA can itself decide that consumer law has been broken and fine a business up to 10% of global turnover, without going to court. Advertising claims are also policed by the ASA under the CAP Code.

In the EU, Directive (EU) 2024/825 on empowering consumers for the green transition amends the Unfair Commercial Practices Directive. Member States had to transpose it by 27 March 2026, and its rules apply from 27 September 2026. It bans generic claims such as "eco-friendly" unless the trader can demonstrate recognised excellent environmental performance relevant to the claim (a narrow test met, for example, by the EU Ecolabel). It also bans sustainability labels not based on a certification scheme or set by public authorities, claims about a whole product that are true of only one part, and claims, based on offsetting greenhouse gas emissions, that a product has a neutral, reduced or positive impact on the environment (such as 'climate neutral' or 'carbon positive'). National wording varies, so check the transposing law in each market. In the US, the FTC's Green Guides, last revised in 2012, likewise advise against unqualified general environmental benefit claims, but they are guidance rather than binding rules, and a review opened in December 2022 had not produced final revised guides by September 2026; some US states, notably California, write the Guides into state law, so they can have binding effect there. This lesson is educational, not legal advice.

Learning ObjectiveEvaluate sustainability claims against the CMA Green Claims Code, the DMCC Act enforcement regime, Directive (EU) 2024/825 and the FTC Green Guides, and rewrite claims that fail.
Key ConceptsGreenwashing and its drivers (Delmas and Burbano, 2011); the Green Claims Code's six principles (CMA, 2021); substantiation; CMA direct enforcement and fines under the DMCC Act 2024; generic claims, certification-based labels and offsetting claims under Directive (EU) 2024/825; the FTC Green Guides as a US comparison.
Practical ExampleFellwise's product pages call a range "eco-friendly jackets", but its only evidence is that one model's lining uses recycled polyester, a claim that fails the UK principles on clarity and life cycle and would be a banned generic claim on its EU pages from 27 September 2026; it is the same whole-product error as the AI caption that called a jacket "fully recycled" in Module 3.
ExerciseRun a claims check: collect five environmental or purpose claims from your organisation's website and packaging (if you don't have one, use a brand you buy from, and first rewrite Fellwise's "Eco-friendly jackets, better for the planet" line yourself before comparing it with the worked example's Ridgeline rewrite), test each against the six Green Claims Code principles and the EU bans, record the evidence held for each, and rewrite any that fail.
Worked Example

Fellwise Maps Its Stakeholders and Rewrites a Claim

Fellwise's corporate affairs lead scores six stakeholder groups from 1 to 5 on the salience attributes from Lesson 5.2, using the Stakeholder Prioritisation Map. Power and legitimacy are weighted 3 and urgency 2, because urgency is volatile and the loudest voice should not set the agenda alone. The total weight is 8, so the maximum weighted score is 40. The scores are illustrative.

  • Regulators (CMA, ASA and EU national enforcers): 5, 5, 4 = 15 + 15 + 8 = 38 of 40 (95%).
  • Customers: 5, 5, 3 = 15 + 15 + 6 = 36 (90%).
  • Employees: 3, 5, 3 = 9 + 15 + 6 = 30 (75%).
  • Campaign groups: 3, 3, 5 = 9 + 9 + 10 = 28 (70%).
  • Investors: 4, 4, 1 = 12 + 12 + 2 = 26 (65%).
  • Suppliers: 2, 4, 2 = 6 + 12 + 4 = 22 (55%).

Regulators come first because the "eco-friendly" wording is live on EU-facing pages and the EU rules apply from 27 September 2026. But the total hides something: campaign groups rank fourth overall yet score highest on urgency. If managers discount the group's legitimacy, Mitchell, Agle and Wood (1997) would class it as dangerous; if its complaint is accepted as fair, it is close to definitive. Either way the team reads each attribute, not just the total, and engages the campaign group directly.

The claim rewrite. Before: "Eco-friendly jackets, better for the planet." The only evidence is a recycled lining in the Ridgeline jacket. After: "Ridgeline jacket: the lining is made from 100% recycled polyester, backed by our fabric supplier's third-party recycled-content certificate. The outer fabric is not recycled. Made to be mended: free repairs for the life of the jacket at our Kendal workshop."

The rewrite names the part and the material, and discloses what is not recycled. It rests on third-party verification rather than a Fellwise-made badge, with the evidence held before publication, and carries no certification logo, because labelling schemes set their own thresholds for on-product claims. It makes no generic or whole-product claim, avoiding both the EU ban and the CMA's concern about vague terms. The repair promise is stated as a service Fellwise can evidence from workshop records, not as an unmeasured environmental benefit. "Eco-friendly" is removed from every UK and EU page, and staff are briefed before the change goes live.

Knowledge Check

  1. A campaign group has an urgent claim and growing media influence, but managers doubt its legitimacy. How does the salience model classify it, and why shouldn't they ignore it?
    With power and urgency but no accepted legitimacy it is a "dangerous" stakeholder (Mitchell, Agle and Wood, 1997); it can impose costs quickly through media and public pressure, and salience is dynamic, so it needs monitoring and engagement even while its claim is disputed.
  2. What does the power–interest grid miss that the salience model captures?
    The grid plots only power and interest, so it ignores whether a claim is legitimate and whether it is time-critical, the very attributes that explain why a low-power group with an urgent, credible issue can suddenly dominate a communications agenda.
  3. Why is an employer brand that differs from employees' actual experience a corporate reputation risk rather than only an HR problem?
    Employer brand associations shape both recruits' image of the firm and current staff's loyalty (Backhaus and Tikoo, 2004); when promise and experience diverge, staff and review sites publicise the gap, and because employees deliver the customer brand, the damage spreads to the corporate brand.
  4. Fellwise suggests keeping "eco-friendly" on its UK site and dropping it only for EU customers. What is wrong with that plan?
    The CMA Green Claims Code already treats unexplained terms like "eco-friendly" as likely to mislead unless a positive whole-life impact can be substantiated, and since April 2025 the CMA can fine directly under the DMCC Act, so the UK is not a safe harbour; one specific, substantiated claim works in both markets.
  5. Why does it matter that the FTC Green Guides are guidance rather than binding rules?
    They set out how the FTC is likely to judge whether a claim is deceptive under US law rather than creating obligations themselves, so a brand selling in the US should still follow them while recognising that the EU directive now sets the stricter, explicit bans on generic claims.
  6. Module 1 defined a brand as a network of associations in customers' memory. How does this module's view of reputation extend that idea, and what does it mean for Fellwise's "repairs for life" association?
    A corporate brand is held in memory by employees, suppliers, regulators and campaigners as well as customers, and each group forms its own issue-specific reputation (Walker, 2010); "repairs for life" is Fellwise's most unique association but one of its weakest, and it becomes credible and stronger only when the organisation's behaviour backs it with every group, so the snapshot reports each group separately and the repair promise is stated as a service Fellwise can evidence from workshop records.

Resources & Further Practice

  • Stakeholder salience: Mitchell, R.K., Agle, B.R. and Wood, D.J. (1997) 'Toward a theory of stakeholder identification and salience: defining the principle of who and what really counts', Academy of Management Review, 22(4), pp. 853–886; read with Wood, D.J., Mitchell, R.K., Agle, B.R. and Bryan, L.M. (2021) 'Stakeholder identification and salience after 20 years: progress, problems, and prospects', Business & Society, 60(1), pp. 196–245.
  • Corporate reputation: Walker, K. (2010) 'A systematic review of the corporate reputation literature: definition, measurement, and theory', Corporate Reputation Review, 12(4), pp. 357–387 — the review behind the definition used in this module.
  • Internal communication and employer branding: Welch, M. and Jackson, P.R. (2007) 'Rethinking internal communication: a stakeholder approach', Corporate Communications: An International Journal, 12(2), pp. 177–198; and Backhaus, K. and Tikoo, S. (2004) 'Conceptualizing and researching employer branding', Career Development International, 9(5), pp. 501–517.
  • Greenwashing: Delmas, M.A. and Burbano, V.C. (2011) 'The drivers of greenwashing', California Management Review, 54(1), pp. 64–87.
  • UK green claims: the CMA's Green Claims Code and its guide for fashion businesses (greenclaims.campaign.gov.uk), with the full guidance "Making environmental claims on goods and services" on gov.uk.
  • UK enforcement: the CMA's "Direct consumer enforcement guidance" (CMA200) on gov.uk, which explains how the CMA uses its powers under the Digital Markets, Competition and Consumers Act 2024.
  • EU law: Directive (EU) 2024/825 on empowering consumers for the green transition, on EUR-Lex (eur-lex.europa.eu); check each Member State's transposing law for the national wording.
  • US comparison: the FTC's Green Guides (16 CFR Part 260) at ftc.gov/legal-library/browse/rules/green-guides.
  • Further practice: score your own organisation's stakeholders in the Stakeholder Prioritisation Map, rewrite its weakest environmental claim, and carry the top three groups into the stakeholder plan in Module 8.
Checkpoint

Reflect on Your Stakeholder Map

  • What I did: name the organisation you mapped, the stakeholder group you ranked first and the claim you rewrote.
  • What I learned: note one place where the salience model and the power–interest grid disagreed, and which one you trusted and why.
  • What I'll change: write one way you will plan communication differently at work, for example briefing employees before or at the same time as the outside world.