Sheri L. Erickson

Using Communication Theory to Analyze Corporate Reporting Strategies

Regulatory reforms in the United States, such as Sarbanes-Oxley and Regulation Fair Disclosure, emphasize the significance of timely and transparent corporate reporting. Analysis of corporate financial disclosures using communication theory can provide useful information to stakeholders. Communication is a goal-directed activity that involves a purpose, and one of the central goals of communication for the corporation is to maintain a positive image. Benoit’s theory of image restoration says that management presents the messages (responses) that are instrumental in obtaining the firm’s goals. This article’s objectives are to summarize Benoit’s image restoration typology and to propose its potential use in analyzing management’s communication strategies in financial reporting. The authors provide examples from corporate U.S. Securities and Exchange Commission (SEC) and annual reports of computer companies to illustrate the use of various communication strategies based on Benoit’s typology.

The Personal Response System as a Teaching Aid

Objective: To examine the classroom use and implications of a Personal Response System, a technological tool to provide immediate feedback from the students to the instructor Courses: Any communication course, particularly those presented in large lecture halls

Crisis Communication in the Banking Industry: Countrywide's Use of Image Restoration Strategies

Abstract This case study analyzes Countrywide Financial’s responses to its recent financial crisis and illustrates the use of communication theory and image restoration strategies by utilizing several crisis response frameworks. The study uses a critical analysis methodology to examine the communication strategies employed by Countrywide, a large mortgage lending company in order to attempt to restore its image. The authors look at excerpts from media stories, carefully examine the language used by company representatives in response to the banking crisis, and categorize the corporate communications into various strategies as defined in the crisis communication literature. Countrywide faced several crisis situations during the period of this study, including the subprime mortgage crisis, public criticism of its CEO’s executive compensation package, allegations of insider trading, and financial difficulties. Corporate responses are critical in determining what amount of damage is done to the firm’s image during a crisis. Countrywide responded to these situations most often using the strategies of image bolstering, reducing the credibility of its accuser, and minimizing the crisis (Benoit, 1995). Through these communications, the company attempted to appear well established and untarnished. It also criticized the media, the courts, and the regulators in an attempt to reduce their credibility. Countrywide made no deliberate attempt to admit fault or to take measures to prevent the problem from reoccurring.

Bridging Student Leadership Assessment across a Three-Institution Consortium.

Throughout the nation, training students for leadership roles is a primary cross-disciplinary bridge from coursework to career or from service learning to community service. Student leadership training has been linked to communication traits of goal setting, decision making, conflict resolution, concern for community, and increased understanding of diversity. Researchers interviewed student leadership training group representatives across a three-institution consortium and found limited assessment procedures. To illustrate relevance, a content analysis was conducted on three pertinent journals. Assessment offers the communicative ammunition needed to build programs in tough economic times and the necessary knowledge to assist students in becoming strong employee-leaders.