The Community in Business: Strategic Relationship Between Companies and Environment and Marketing
The Community in Business: Strategic Relationship Between Companies and Environment and Marketing. La Comunidad en Los Negocios: Relación. Getting involved in the community is a great way for any organization to build relationships and boost visibility and brand awareness. Whether. Competitive business and social pressures are forcing a redefinition of the relationship between company and community. When a company makes a.
For instance, they give employees a reason to be proud of the company, which increases loyalty and may help to reduce labor and production costs. Furthermore, a company with happy employees and a good reputation in the community is likely to attract highly qualified new employees. A small company also might generate new business through the contacts and leads it generates in its community relations activities.
Such contacts might also make it easier for the company to obtain financing for expansion, find promising new locations, or gain favorable treatment in terms of taxes, ordinances, or utilities.
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Good community relations can also be beneficial in times of crisis, such as a fire or a plant closing, by rallying the community around the affected business. Soderberg in his book Public Relations for the Entrepreneur and the Growing Business, small businesses can become involved in their communities in any number of ways.
Some recommended routes toward increasing community involvement include: Soderberg discusses a number of specific programs designed to increase a small business's visibility and prestige within a community. For example, the company might volunteer to develop a civic program, like a charity drive or auction.
In addition, the small business owner, or another company representative, could give talks before the local chamber of commerce or civic association. The company could also invite community groups to tour its plant or offices, or could make its facilities available to such groups for meetings or events.
The use of this phrase by businesses, the media, and students of business, however, almost always signifies something more than ordinary relationships and includes voluntary actions that either are or can be interpreted as done just for the good of the community. This produces ambiguities and conflicts.
A strictly "free market" view of business defines a company as working for its stockholders under law; any charitable work or contributions are thus shorting what stockholders are due. A more modern view, which arose in the s under the rubric of "social responsibility," defines corporations as involved in, indeed responsible for, achieving social goods over and above profits. Ambiguity also arises from the fact that many businesses are small and, in effect, the extensions of one or two individuals who are viewed as autonomous persons—while large corporations are collectives managed by hired functionaries.
Two definitions of community relations are thus equally correct. One defines community relations as the corporation's unforced contributions to the community.
The other makes community relations a branch of public relations—a form of communications. Thus a company may have acquired a good reputation because it is always ready to help when asked in different ways—through people, money, or providing equipment. Managers at all levels understand in advance that this is sanctioned and approved. It is a corporate tradition, the way that things are done. It is possible, indeed it is done, to carry out social activities to help community, which is a great benefit and contributes to the development of the latter one.
Nevertheless, such activities, because of their unidirectional feature, lacks of a framework that allows involving community, which is still being an aim of the corporative action without being a part of it.
The surroundings of companies can be interpreted as competitive and full of opportunities, but they are also policontexturals see Gunter, Even though the first two interpretation favor aspects related to earnings, innovation, new markets creation and agreements in a model of strategic game with mutual benefits, the second one favor aspects associated with recognition and introduction in diverse contexts, demanding a differentiation from the product under requirements of join progress.
Thus, the development of ones is the development of everybody. Companies are related to different agents such as suppliers, other companies that provide support or credit, customers, corporations used to obtain strategic alliance, business clusters, etc.
With all of them is possible to create durable bonds that involve fidelity, commitment and development. However, it could not happen if there is not a participation in these communities; being another neighbor is required Juarez, to obtain own activities connected to communities.
That is why it is necessary recognition of them a suitable strategy, since communities are sensitive to the interaction ways.
Probably, shared value can be created between companies and community. Cultural aspects, values, beliefs, behaviors, interests, preferences, and others see Etzioni, define communities. However, the life experience is the element that makes them remain as one; they have history Cieza, Thus, experiential knowledge is necessary Ellis, ; without participation in those experiences, how could be possible to interact from a point of view different to an assistance or transaction-based one?
In fact, products development, prices strategies, the financial model, market analysis, companies participation in the solution of social conflicts, crisis or disasters, value chain design, or the very moment of entrepreneurship should be carry out with this sense of belonging to community.
It is necessary that companies have, as a development way, a higher proximity to communities. However, this is not constituted within a natural evolution and reflection of only the mechanism that of competitive advantage, even if they are a strong base, but within a strategic of relation between companies and the environment, or company-community strategy in which both terms are joined in an only one where corporation can be perceived as a member of the community.
Marketing effectiveness and customer retention in the service sector. The Service Industries Journal, 19 3 On building a community of practice: Reflective Practice, 10 4 Journal of the Academy of Marketing Science, 23 4 Journal of International Marketing, 20 3 The Principle of the Neighbor of Choice.
Community coalitions for prevention and health promotion. Customer Loyalty in Clusters: Perceived Value and Satisfaction as Antecedents.