CORPORATE REPUTATION MANAGEMENT, STAKEHOLDERS IN FOCUS
LAGOS BUSINESS SCHOOL EMBA 23
TABLE OF CONTENT
General introduction about Falcon Corporation Limited.
Origin and development of Falcon.
Identification of stakeholders within Falcon.
The Host Communities
The 3C’s Approach.
Falcon’s corporate social responsibility (CSR) activities.
Some selected CSR projects that Falcon have organized
Analysis of research findings.
Analysis of joint questions
This report highlights how Falcon Corporation Limited currently manages its corporate reputation and the recommendations to strengthen its current reputation.
The study evaluates the advantage and disadvantages of managing corporate reputation, drivers of corporate reputation, reputation management process and recommendations of a formal process that Falcon can use to manage and maintain the company reputation.
The reputation of oil and gas companies is at stake as they are increasingly faced with a diverse range of natural, engineering, management, economic, social and environmental accountability issues.
However, Falcon has over the years been involved in several corporate social responsibility (CSR) initiatives as a major factor and plan to management its reputation among its stakeholder.
However, the question is how Falcon can strengthen the existing reputation. How can we serve our stakeholder better and provide services that our completions are not currently offering? These are the issues that this report seeks to solve.
To address this issue, this report presents the 3Cs strategy which helps to articulate who are our stakeholders, how we can serve them better and what the stakeholders want that competition does not have but is an opportunity for us to deploy.
The methodology used is based on an experimental study through the development of a questionnaire distributed to the different identified stakeholders.
This research shows the present Falcon’s brand perception among its stakeholders, and specific recommendations for strengthening and improving its reputation to continue surviving and be profitable.
12735341041179General Introduction about Falcon Corporation Limited
00General Introduction about Falcon Corporation Limited
556592051437Origin and Development of Falcon
00Origin and Development of Falcon
Falcon Corporation Limited commenced operations in 1994 under the trade name of Falcon Petroleum Limited, as an oil servicing company in Port Harcourt Nigeria, and later changed its name to Falcon Corporation Limited in 2014.
Falcon has contributed significantly to the development of Nigerian gas industry over the years, The Company has been responsible for the internal pipeline construction, and conversion ; commissioning of equipment for a wide array of clients within the Ikorodu catchment area, Greater Lagos industrial area (comprising Ikeja, Ogba, Iganmu, Apapa, Amuwo Odofin, Isolo), Agbara, Otta, and Aba.
right429030800Since 2005, Falcon corporation has been the licensed Local Distribution Company (LDC) for the Ikorodu Natural Gas Franchise Zone under a 20-year BOT arrangement with the Nigerian Gas Company Limited.
1359673946205Identification of Stakeholders within Falcon
00Identification of Stakeholders within Falcon
7951391382000The most quoted definition of a stakeholder in business literature is that given by Freeman, who says a stakeholder is “any group or individual who is affected by or can affect the achievement of an organization’s objectives.” In other words, stakeholders to Falcon are groups who can affect or is affected by Falcon’s operational decisions, and policies. Because Falcon committed to continuous improvement of her systems and processes in line with all relevant regulatory and statutory requirement, also seeks to maintaining a healthy relationship with her identified stakeholders.
At Falcon, the following are major stakeholders of the organization and business;
3808675357002500-174625372872000In the oil and gas sector, the governmental legislators and regulators play key stakeholders’ roles, their oversight functions enable organizations to have resources and autonomy to operate. When enabling relationships weakens, the resources can be withdrawn, and the autonomy of the organization restricted. Some of the governing statutory and regulatory agencies relevant to Falcon’s operations are; Department of petroleum resources (DPR), Lagos state environmental protection agency (LASEPA): environmental pollution protection law, Lagos state infrastructure maintenance & regulatory agency (LASIMRA), and Nigerian Gas Company (NGC). The government can contribute to organizations by creating an enabling environment and standardized operating rules.
86995224155000As a corporate organization, Falcon recognizes customers as major stakeholders who can affect and are affected by the corporation’s policies and actions. The money paid for Falcon’s product is a customer’s contribution to the organization. Unless they get value, customers may withdraw monetary support, and the company loses a stakeholder.
The host community within the operational area (catchment area) of Falcon are of utmost importance to the existence of Falcon business. Falcon have actively pursued corporate social responsibility (CSR) projects within her host community. Depending on the nature of organizational business, it is required that it is operated in a way that meet, or exceeds, the ethical, legal, commercial and public expectation that the host community has of the business.
3108960223431700Organization must place emphasis on recognizing achievements of staff by paying utmost attention to its rewards system towards performance and good behavior. As stakeholder’s, employee management is of great important to organizational productivity, profitability and continuity.
1399430946205The 3C’s Approach
00The 3C’s Approach
The 3C’s business model is used in determining effective and competitiveness any organization in relation to own competitions and customers. This helps to direct the organization in the strategic directions to focus.
The customer analysis relates to finding out how customer rates and perceived Falcon’s value proposition.
The studies will delve into factors such as;
From the existing customers, how they can be served better.
Finding out what Falcon can provide that other service provides are not currently providing.
Techniques such as questionnaires was to gain insight into the consumer’s perception and unearth their needs. This insight gotten can then be used to develop concept that will maintain and strengthen the company’s reputation.
This is an internal analysis where the company will need to ask question within the employee to gain insight to know better ways to serve our stakeholders and overall strengthening our reputation.
The company need to critically consider the following
What are our competencies? (What the company is undoubtedly good at)
What are our goals? (what the company wants to achieve)
What resources do we have (What are the things that produces and support our competencies)?
Questions around to what extent do we meet all necessary statutory and regulatory obligations.
How well do we meet all approved standard specification requirements?
It is important to know the competition very well. How they operate, and their marketing tactics. Competitor based strategies can be constructed by looking at possible sources of differentiation in functions such as: stakeholders’ engagement, design, engineering, sales, corporate social responsivities (CSR) and servicing.
In trying to understand the competition, the following strategic factors must be considered.
What the competitors offer or do not offer but the customer needs
What are the competitors struggling to offer that you have capability to offer?
Benefits of 3Cs
It helps a company to define what it offers to the market.
It defines how the product/service is being offered to the market.
Aids the identification of a firm’s unique value proposition and market positioning
Gives clear channel to developing a message that will connect with the target market
1280159970059Falcon’s Corporate Social Responsibility Activities
00Falcon’s Corporate Social Responsibility Activities
Falcon has carried out several corporate social responsibility (CSR) initiatives as a way of giving back to the society. To demonstrate how effective our performance is in the areas of corporate social responsibility (CSR), the following question was asked; Falcon is a socially responsible organization which gives back to the community.
Insight to the responses indicates that stakeholders knows and appreciates this. Below is the response chart on this question.
Out of the 45respondents, 46.7% which is the highest are in strong agreement to the activities and performance towards positive contribution to the community and the society at large. At Falcon, we recognized that stakeholder management, transparency and corporate social responsibility (CSR) initiatives are major factors that we enhance and strengthen our overall corporate reputation.
Name of Organization Year Details
First Class Vocational 2017 Vocational Skills acquisition in Catering services, Bead making and Event planning and decorations for 58 women in Ikorodu
Presentations of starter packs to beneficiaries
Basic Financial Management training by FATE Foundation
Inyang Sami Orungbe 2017 Donation toward a child’s Surgery
Little Sister’s of the Poor, Enugu 2017 Donation to the Little Sister of the Poor: Home of the elderly
Feet of Grace Foundation 2017 Donation made toward the procurement of a Prosthetic Limb for a child
JAKIN NGO 2017 Donation made toward a one-year special daily intensive coaching, school fees and Junior WAEC and retail business for a teenager.
Return of the Helper 2017 Sponsorship for the 2017 Return of the Helper Conference
St. Luke Anglican Church Patigi2017 CSR and Goodwill donation toward the St. Lukes Anglican Church building.
JAKIN NGO 2017 Donation toward Dress a child for school project
LOTS Charity Foundation 2017 Support toward the Feeding of 150 families and children of “Dustbin Village” in AjegunleLagos Business School (LBS) Hosting of students from Ghana at Falcon Custody Gas Metering Station in Ikorodu, Lagos Sate.
55659938254Some selected CSR projects that Falcon have organized.
00Some selected CSR projects that Falcon have organized.
1296063938254Hosting of Ghana LBS Students Pictures
00Hosting of Ghana LBS Students Pictures
1272209985962Analysis of Research Findings
00Analysis of Research Findings
The questionnaire survey was sent via email to a selected stakeholder as was identified previously. The research focused clearly on identifying stakeholder’s perception on the brand Falcon with respect to current position and nature of operations, “How can we serve our stakeholders better and what opportunities exist that Falcon can leverage to provide what other service providers are not currently providing.
397573888188Analysis of Joint Questions
00Analysis of Joint Questions
A total 45 comments were received in relation to this question.
28.9% of respondents were Female,
while 71.1% were Male.
WHAT CATEGORY OF STAKEHOLDER ARE YOU TO FALCON?
A total of 45 comments were received in relation to this question.
26.7% of respondents were Host Community,
33.3% of respondents were Employee
20% of respondents were Government/Regulator
20% of respondents were Customers
TO WHAT EXTENT DO YOU TRUST OUR SERVICES.
A total of 45 comments were received in relation to this question.
33.3% of respondents agreed that they trusted our services to certain extent.
64.4% of respondents agreed that they trusted our services to large extent
However, most of the respondents believes and trusted our services which is a good indication that our stakeholders agree to our services. This is an indication of goodwill among our stakeholders. Falcon needs to ensure that this is sustained, improved on to strengthen Falcon’s reputation.
02568271TO WHAT EXTENT DO FALCON MEET STATUTORY AND REGULATORY OBLIGATIONS.
A total of 45 comments were received in relation to this question. This question particularly was targeted for the Government category of stakeholders who largely are the regulators of the oil and gas sector that we operate.
64.4% of respondents agreed that Falcon meets her statutory and regulatory obligations to large extent.
22.2% of respondents agreed that Falcon meets her statutory and regulatory obligations to certain extent.
11.1% of respondents where not sure if Falcon meets her statutory and regulatory obligations.
However, most of the Government stakeholders’ respondents believes that Falcon is a law-abiding organization that meets all her statutory and regulatory obligations. This is good and should be sustained, improved on to strengthen Falcon’s reputation.