Strategic Communication Advice by RVD11

STRATEGIC COMMUNICATION ADVICE primark

NAME: ROWAN VAN DORP STUDENTNUMBER: 2179325 LECTURE: FLOORTJE KOOT-PETERS AC DAY: 18 JANUARY 2016 COURSE CODE: 2259XADV14

INHOUDSOPGAVE Defining identity organization

Corporate identity mix

Issues

7 Issue 1: Bad labor conditions

Issue 2: Animal cruelty

Issue 3: Beauty ideal

Issue analysis

Issue lifecycle

Chosen issue

Stakeholder analysis

Stakeholder mapping

Advice

General strategy

Strategic options

Stakeholder approach

Reflection crisis day

Appendix

1.1 DEFINING IDENTITY ORGANIZATION The organization that I have chosen is Primark. Primark is an international organization focused on cheap clothing and products. They offer a diverse range of products, stocking everything from baby and kids, to women, men, home ware, accessories, beauty products and confectionery (Primark, 2015). Primark claims to offer quality products. However, the prices are extremely low. Therefor there are mixed opinions about Primark as a company. With over 250 stores, spread over the Netherlands, Belgium, the rest of Europe and some in America and a turnover of 6.3 billion euro, it is a big international organization.

1.2 CORPORATE IDENTITY MIX With the Birkigt & Stadler corporate identity mix model, it is possible to define the identity of an organization. The Birkigt & Stadler model describes four dimensions: personality, symbolism, communication and behavior of an organization. With this model, you can get an insight in the balance between the identity and the image of an organization (Birkigt & Stadler, 1986). Personality: describes the core values of the organization. The core values are describing what the organization stands for and what makes them unique.

Figure 1: Corporate Identity Mix (Birkigt & Stadler, 1986)

Communication: with communication, an organization can express their messages. It is important that the communication of an organization is similar to their behavior. Behavior: the daily way of trading of an organization in the society. It contains questions like; “How does the organization treat their customers?”, or “Does the organization fulfill their promises?”. This will be judged by the target groups of the organization. Symbolism: contains the visuals of an organization, such as corporate identity, logo, website.

Personality: Primark has set up a several core values as a company, such as: • • • • • • •

To offer the best value for money To improve continuously the range of products To treat customers on a good way To strive continuously for effectiveness To respect each other Ethical approaches to employment and trading Environment, health and safety

The vision statement of Primark is providing quality products and services to their customers through price strategies. The mission statement of Primark is to supply quality clothing at prices perceived to offer real value (Primark, 2015). Primark wants to be a big clothing concern with high quality clothes for low price offers, produced on an ethical way.

Communication: Primark communicates with their clients in different ways: Website Primark has their own website, www.primark.com. On this website, everything of Primark is communicated. You can find the many different articles and products of the store. They also have a part called ‘Primania’ where different customers can upload their look and others can comment on them. On the website you can find all shops in the country you’re looking for. Last you can find the ethics of Primark. Social media Primark uses the following social media channels: Facebook, Twitter, Instagram, Google+, Pinterest, YouTube. Campaigns Primark communicates their campaigns on their own YouTube channel. The different collections are being filmed and promoted in these videos. These campaigns aren’t shown on television. Primark claims that they use no expensive communication campaigns, because of the possibility to offer low prices (Primark, 2015). They trust on word-of-mouth advertising among their customers. Shops The biggest communication mean of Primark are their shops. They have 253 shops across the UK, Ireland and Europe. Behavior: Primark claims to have an ethical structure in their company. On the website, Primark emphasizes their aim to treat the employees, suppliers and communities fairly. They take a lot of measures to trade ethical and responsible, for example CSR entrepreneurship, improve the position of labor (well-being and working condition of the employees) and collaboration with Greenpeace to support the environment (Primark, 2015). Primark extensively describes all their ethical and responsible activities on their website. Although Primark claims that they have ethical core values and good labor conditions (Primark, 2015), Primark recently received a lot of negativity in the news. In 2013, one of the factories of Primark in India called Rana Plaza, collapsed and more than thousand employees died (NRC, 2013). The working conditions under which the employees are working would be very bad. The bad labor conditions led to a different attitude towards Primark among consumers and their purchases. Many consumers do not want to buy anything at Primark, because they don’t want to support the bad labor conditions of Primark. In many opinions of people, Primark is not an ethical organization, which differs from their core values. Symbolism: The corporate identity of Primark: Corporate identity (logo) They use a sans serif font with a light blue color. There is no sign or symbol. Website A sleek, modern website with the clear corporate identity of Primark. Lots of blue and white, images and few text. No webshop, only a look book with outfits and styles. Building The buildings of Primark are all the same: large and modern. The outside of the building is usually made of glass with a lot of black and light blue.

Conclusion The strategy (ethical purposes and improving bad labor conditions), vision, mission and core values of Primark are important for dealing with an issue or crisis. These things have also influence on a companyâ&#x20AC;&#x2122;s reputation. It is necessary for Primark to communicate their policy on a transparent way and take care of good reputation management that is built on their strategy. Reputation management is a process to build and protect the brand and secure its future (Dalton, 2011).

2.1 ISSUES An issue is a condition or event, either internal or external to the organization which, if it continues, will have a significant effect of the functioning or performance of the organization or on its future interests (Jaques, 2007). Below I have described the following three issues that matters Primark and the fashion industry: • Bad labor conditions • Animal cruelty • Beauty ideal

2.1.1 Issue 1: Bad labor conditions Big fashion organizations such as Primark or H&M, are well-known as fashion brands that produces many clothes for extremely low prices. In order to realize this, the factories that produces the clothes of these organizations are dealing with bad labor conditions. Especially, the employees of the factories are underpaid and also child labor was ascertained (Fashion United, 2014). It was already suggested and well-known that big fashion companies such as Primark or H&M would have bad labor conditions, but it was never exposed in the media as a major, emergent issue. In 2012 and 2014, research organizations such as SOMO and Landelijke India Werkgroep discovered exploitation of Indian teenage girls (Schone Kleren, 2014). A disaster that really has led to media exposure of bad labor conditions was the collapse of the Rana Plaza factory. In 2013, the Rana Plaza building in India that produces clothes for Primark collapsed (Van Kampen, 2013). More than thousand employees died and the disaster became a big issue in the media and the society. Because of the Rana Plaza disaster, there was a growing media attention for bad labor conditions related to the fashion industry. Also the exploitation of child labor of Primark and other companies began to stand out in the media (Es, 2012). In addition, in 2014, there was found a cry of distress sewn into a clothing label of Primark (RTL, 2014). These media exposures had big consequences for the fashion organizations that were related to these concerns and sells clothes for low prices. Many people got different attitudes about buying cheap clothes towards big companies such as Primark or H&M (Struik, 2014). Bothersome for Primark, because Primark was about opening more stores in The Netherlands and became more and more popular (Hamer, 2012). After this bad labor condition issue, big fashion companies including Primark promised an improving of the working conditions (Primark, 2015). They began to realize that it is important to have a transparent company with a transparent strategy and communication to keep their consumers. Primark paid a hefty compensation to the victims and survivors of the Rana Plaza disaster (Nu, 2013). After the Rana Plaza disaster, Primark tightening its ethical values and began to communicate transparently. On their website, they made a heading called ‘Our Ethics’ which includes their ethical way of acting. Below that heading, Primark set up five different questions such as: “How can Primark offer the lowest prices on the high street?”, “Are workers making Primark clothing paid a fair wage?”, “How green is Primark?”, “Does Primark use child labor?” and “Where does Primark make its clothes?” (Primark, 2015). When consumers click on one of these questions, they get a page full of clear and transparent information. Also below the heading ‘Our Ethics’, there is a lot of information about the Rana Plaza long-term compensation of Primark. Primark explains to consumers how it is possible to offer the lowest prices. The reason why it is possible is because Primark has no expensive ad campaigns, they place large orders by their suppliers and they design and make their clothes efficiently. Primark also claims that there is no way of child labor and offers great salaries to their workers by 7

keeping their overheads low. In addition, Primark adds that they are an environmental company with green products (Primark, 2015). Although Primark claims that they are a socially responsible ethical company, many people are still not aware of this due the fact that Primark only claims it on their website and not physically in their stores. This can still lead to persistent reputation damage of Primark.

2.1.2. Issue 2: Animal cruelty Animal cruelty is a frequent issue in the fashion industry that exists for a very long time. As long as there exists fashion, fur or leather of animals is being used. Unfortunately, in order to obtain fur or leather (especially fur), a lot of unnecessary suffering of animal is being used. Still many clothing brands are selling fur and disagree with the protesting foundations. Reasons why clothing brands do not want to stop with the sale of fur, is because of competition grounds. Almost all big fashion brands such as Airforce or Nickelson uses real fur or leather from animals. But obtaining fur is mostly accompanied by animal cruelty. The animals that are used for their fur are living in bad conditions and are mistreated. Sometimes the animals are skinned alive. For many years, different anti-fur groups and activists are trying to prevent the animal cruelty. They set up different guerrilla activities in big cities and accuse big brands which uses fur in their clothes. Also different models and celebrities such as Pamela Anderson are anti-fur and protesting against it. Recently, a model took her clothes off at the catwalk for protesting against fur (Veronica, 2015). In 2013, H&M appeared in the media with the fact of selling clothes including real angora fur. The angora fur was obtained from angora rabbits, which were plucked alive. This media exposure caused great fuss for H&M and was disastrous for their reputation as a brand. H&M had to deal with crisis management because of the issue and decided to stop immediately with the production of angora fur clothes (Radar, 2013). They decided to stop immediately with the sale of angora fur. Also other big brands were exposure in the media, mentioned as a fur-scandal. Gaastra, a big Dutch clothing brand used for a long time real fur of raccoons for their coats. Every winter period, Gaastra made a few coats with real fur and imitation fur, and gave the customers an opportunity to choose which coat they prefer. The animal welfare organization ‘Bont voor Dieren’ protested fiercely against the fur coats of Gaastra for a several years. Gaastra did not want to stop the sale of their fur coats, because they were afraid of bringing their competitors position in danger (Nu, 2014). After a few protest actions of Bont voor Dieren, Gaastra decided to stop the produce of the real fur coats. They noticed the decline in demand for fur on the market, and decided to sell only imitation fur. Hugo Boss, another big clothing brand, decided to stop with the sale of real further after an education of Fur Free Alliance (Bont Voor Dieren, 2015), an international coalition of organizations against fur. Hugo Boss will be fur-free at 2016, which means the stop of selling clothes with fur, but also animal unfriendly products with angora fur. Through the popularity of the brand, Hugo Boss will be a role model for other brands to stop with fur. Despite the fact that more and more clothing brands stop selling fur, there are still big protest actions against fur in several cities. Recently at November 2015, the foundation ‘Stop Dierenleed Nederland’ protested against fur in Haarlem (PiepVandaag, 2015). This foundation protests every month in another city against fur, because there are still brands which are selling fur. Also they want to aware the customers of the difference between the so called imitation fur and real fur. A lot of imitation fur contains real hairs of animals that is obtained with cruelty, but many customers can not recognize the difference between real and imitation fur. The protest foundations against fur wants to aware people of the animal cruelty that is necessary for obtaining fur, and wants to stop people from buying fur. They also perform actions against clothing brands which are selling fur. These actions have a lot of impact on the reputation of clothing brands. 8

2.1.3. Issue 3: Beauty ideal All over the world, there are lots of campaigns with young, beautiful models with perfect skins and bodies. These models are mostly representing a popular brand of clothing or cosmetics, such as Zara or L’Oréal. They have a long-legged body, pert-breasted, perfect equal skin, thick lips and a thin nose, big voluminous hair and clothing size extra small. This perfectionism and beauty ideal has a lot of influence on women across the whole world. Almost every brand in the clothing or cosmetic industry have campaigns with beautiful, thin models. The models must comply perfection, the so called Western beauty ideals. The Western beauty ideals contains a small confection size, tall length (minimal 1.75m), full breasted and a flawless skin (Zeilinger, 2015). Women across the world, especially young women, feel a social pressure to satisfy these beauty ideals. A lot of brands admire also these beauty ideals, and uses models who meet these requirements. For example, Victoria Secret. Victoria Secret is a big lingerie company with the most beautiful models all over the world. Recently, Victoria Secret brought out a campaign with slender models, containing the text: “The Perfect Body” (BBC, 2014). This campaign caused a lot of criticism because of the suggestion that only very slender women could have a perfect body. A lot of women were angry because the campaign would have a bad influence on the self-assurance of women. Through these criticisms, Victoria Secret adjusted the contentious campaign into “A Body for Everybody” (Nu, 2014). Also the brand Abercrombie & Fitch appeared recently in the media with their size discrimination. The big fashion company doesn’t stock XL or XXL sizes in women’s clothing no longer, because they don’t want overweight women wearing their brand (Lutz, 2013). Also the employees and models of Abercrombie & Fitch must meet strict requirements. In contrast to Victoria Secret and Abercrombie & Fitch, H&M disagrees with these beauty ideals and strict requirements. They launched a plus-size line for women, to make a statement of ‘normal’ sizes and clothes for everyone. Also, H&M added campaigns with plus-size models to launch the plus-size clothing line (AD, 2011). In addition, Dove launched several ‘Real Beauty’ campaigns with ‘normal’ bodies of women, to prevent eating disorders and a low selfassurance among women (Dove, 2015). Although some brands like H&M or Dove are not only dealing the Western beauty ideal but also ‘normal’ human sizes, today, western culture still focuses on perfection. Campaigns of popular brands are mostly including skinny, perfect models. ‘Curvy’ or plus-sized models are rare to see at a clothing or cosmetic campaign. These strict beauty ideals provoke to an unhealthy way of living among young women and models. Women often think wrongly they have overweight, which could have dangerous consequences. Lebanon, due the Western beauty ideal, is the country with the most plastic surgery procedures. About 1 in 3 Lebanese women has had a plastic surgery procedure (Zeilinger, 2015). Because Primark has no clothing campaigns, they are not well-known of using models that meet these requirements. But when looking on the website of Primark, you can notice that the few models they use are tall and skinny. Thus, this is a confirmation that Primark is also influenced by the beauty ideal. There is still a lot of discussion going on about the Western beauty ideal between brands, models and women. Everybody has another perception about this subject. However, when continuing the exhibition of thin, perfect models at clothing or cosmetic campaigns, young women will be keeping influenced about these ideals.

3.1 ISSUE ANALYSIS 3.1.1. Issue lifecycle Issues generally have a lifecycle development that can be represented in a figure, called The Issue Lifecycle (Dalton, 2011). The intensity of issue (vertical) gives an impression of the importance of an issue. Time (horizontal) describes the different stages of the issues.

Figure 2: The Issue Lifecycle (Dalton, 2011)

In which stadium are the issues into the Issue Lifecycle at this moment? Issue 1: Bad labor conditions ď&#x192; BETWEEN ACTIVE AND INTENSE The problem of bad labor conditions of Primark was not recently in the news. The biggest issue of Primark related to bad labor conditions happened in 2013, when the Rana Plaza building collapsed and more than thousands employees died. After this disaster, the bad labor conditions of Primark were revealed to the media and the society. In 2014, another issue was born about Primark. There was a cry of distress sewn into a label of a clothing piece of Primark, which was bought by a consumer. Due these issues, a political and social responsible policy about bad labor conditions in factories has arisen in the society. Many people do not want to buy their clothes anymore at Primark, because they do not want to support the bad labor conditions. The society has become more suspicious about cheap clothing companies, which is not good for the reputation management of such companies. Because the issues are not topic in the media at the moment, although the biggest issue made thousands of victims and the issue is also fanned in the society (which means that if it will happen again, then crisis will emerge), I have chosen for intense. Issue 2: Animal cruelty ď&#x192; ACTIVE Animal cruelty exists for a couple of years and shall probably stay as long as there is fashion. Happily, protest groups perform since the beginning of use of fur actions against animal cruelty. The latest and biggest issue with animal cruelty which exposed a lot of media attention was happened at 2013, when it turned out that H&M used angora fur of rabbits which were plucked 10

alive. Because the latest issue was happened at 2013, although the protest groups are active with protesting against fur until the animal cruelty disappears, I have chosen for active. Issue 3: Beauty ideal  BETWEEN ACTIVE AND INTENSE As long as the world exists, there are different beauty ideals. Although, the Western beauty ideal is upcoming in the world among young women. The beauty ideal is adjusted to a smaller size, which provokes eating disorders and misplaced self-assurances among women. Also the new beauty ideal contains a symmetric face, thin nose, thick lips and full breasts with a tiny waist. Due these beauty ideals, there is an increase in plastic surgery among women. Especially botox, which became completely normal for teenagers to start with. Young women feel pressure to satisfy these beauty ideals. Big brands such as Zara or ASOS exposure thin, perfect models in their clothing campaigns. Other brands are emphasizing the sizes of ‘normal’ and plus-size models, such as H&M or Dove. Because there is an increase in plastic surgery caused by the beauty ideal, although the issue remains forever, I have chosen for between active and intense.

3.1.2. Issue risk matrix The threat posed by an issue must be considered into the Risk Threat Assessment Matrix (Dalton, 2011). The vertical axis describes the probability that an issue will influence your company. The horizontal axis describes the impact if the issue manifests.

Figure 3: The Risk Threat Assessment Matrix (Dalton, 2011)

The issues into the Risk Matrix for Primark: Issue 1: Bad labor conditions The likelihood that Primark will be faced again with the issue of bad labor conditions is in the middle. Despite the fact that Primark claims ethical trading such as improved labor conditions, no child labor and supporting charities, many customers are not aware of these facts. Moreover, Primark can claim their ethical trading, the question remains if this is real. The big 11

clothing concern still offers clothes for extremely low prices, thus many people doubt the authenticity of the promises of Primark. The impact if Primark will be faced again with bad labor conditions would be very high. This will lead to major damage on the reputation of Primark, which will be hard to recover. All the mentioned ethical values and promises will be distrust and Primark will fail as an ethical organization. Customers who attach values to ethics policy will not buy their clothes at Primark anymore. There will be remain a group of customers who do not attach values to ethics policy, that do not bother to still buy their clothes at Primark. Issue 2: Animal Cruelty The likelihood that Primark will be faced with animal cruelty is low. Primark offers clothes for extremely low prices, and clothes or pieces that are made of fur or leather are expensive. Thus, this will probably not occur for Primark. The impact if Primark will be faced with animal cruelty would be high. If Primark uses animal cruelty, this will lead to the confirmation of the bad labor conditions of Primark among customers. It will be more difficult for Primark to prove their ethical behavior and their credibility will disappear. Issue 3: Beauty Ideal The likelihood that Primark will be faced with beauty ideal is very high. The Western beauty ideal is an active issue in the society and almost all popular fashion brands are having models who meet the requirements. Also, the main target group of Primark are young women and men, a group that is easily influenced by the beauty ideal. The impact if Primark will be faced with beauty ideal would be low. This already happens at almost all big fashion brands, and will not suddenly lead to a discussion or problems.

3.1 CHOSEN ISSUE The most important issue for Primark at the moment is bad labor conditions. This because the issue was directly related to Primark and other cheap clothing companies in the past. Also, this issue is located between the Active and Intense phase in the Issue Lifecycle and the likelihood and magnitude in the Risk Matrix are the highest. After the Rana Plaza disaster and the cry of distress sewn into a clothing label, Primark claims their ethical way of trading on their website, such as improved labor conditions, no child labor, supporting charities and environmentally friendly policy (Primark, 2015). The bad labor conditions caused a damaged reputation of Primark for a while (N1, 2014). To recover their damaged image, they set up ethical values on their website. Because Primark has no ad campaigns on television or other media channels, a lot of customers are not aware of their ethical trading. It is important for Primark to recover their damaged reputation, and to communicate their improved ethical values on multiple media channels to reach a larger target group. Perhaps they achieve a new target group who wasnâ&#x20AC;&#x2122;t interested in Primark because of their bad labor conditions in the past, if they decide to communicate their ethical values on multiple media channels.

4.1 STAKEHOLDER ANALYSIS Stakeholders are any group that can affect or be affected by the behavior of an organization (Coombs, 2007). In the stakeholder analysis are summed up the six most important stakeholders for Primark related to the issue ‘bad labor conditions’ (see figure 4). From every stakeholder there is a description from the identity and the position in the issue, what their influence and interest in the issue is and how the stakeholder must be approached by Primark by using a stakeholder mapping tool. Below are described the six most important stakeholders of Primark related to the issue: • The Ethical Trading Initiative (ETI) • Better Work partnership • Employees and communities • Customers • Shareholders • Media

Figure 4: Primark stakeholders (Primark, 2015)

1: The Ethical Trading Initiative (ETI) Primark works with a variety of civil society groups and trade unions around the world. These organizations share a common goal of protecting the right of workers. The Ethical Trading Initiative is an example of it. Primark is a member of the ETI since 2006 (Primark, 2015). This alliance works to improve the life of poor and weak workers in supply chains across the world. The ETI defend human rights of workers and find it very important to pursue these rights. They 13

make sure to improve bad labor conditions. The ETI has reported that Primark has achieved ongoing improvements in working conditions and respect for worker rights by engagement with suppliers, trade unions, governments and customers. Primark is now one of the highest scoring members (Business Case Studies, 2015). The ETI has authority and influence in the issue, because of their high position in improving the life of workers related to bad labor conditions. They also have an ideological/ethical interest in the issue, because they are a big alliance of over 60 companies, trade unions and nongovernment organizations which defends human rights. Moreover, the ETI is actively and visibility engaged with the issue, they are constantly striving to improve the life of workers in supply chains. 2: Better Work partnership Better Work is an initiative that aims to improve working conditions through the provision of factory level assessments, advisory services and training. They work together with employers, governments, factories, unions and buyers. Primark joined the Better Work partnership in 2010 (Primark, 2015). As a foundation that focuses on working conditions, Better Work is directly involved with the bad labor condition issue. This is because they want to ensure that there is adherence to international standards, such as no child labor, limits on the number of hours in the working week and proper leave entitlements (Primark, 2015). Better Work says about the issue that it is good for Primark to engage with them, because they can ensure that Primark has no longer bad labor conditions. Better Work has authority and influence in the issue, because their aim is to improve working conditions by controlling several measures and their high position by Primark. They are directly involved with the issue bad labor conditions. In addition, Better Work has an ideological/ethical interest in the issue because of their proceedings. They are also very active and visible in the issue, because they directly engage with Primark and together they are taking care of the working conditions. 3: Employees and communities Primark sources its products from countries like China and India, which are world leaders in garment manufacturers (Primark, 2015). The employees and communities, related to the bad labor conditions issue, want good working conditions and wages (wage that is high enough to meet all of the basic needs of an adult). Employees who work in these garment manufactures are very vulnerable. Therefor it is a crucial part of Primarkâ&#x20AC;&#x2122;s ethical practice to engage with these employees and communities. The employees and communities have a low power and influence in the issue. Employees want improved labor conditions, good wage and education on a wide range of topics such as the rights of women or safety at work. Primark is listening to the needs of the employees and together with the communities, they are trying to face these needs. The employees and communities have a personal and ideological interest in the issue. Personal because the employees want good labor conditions for themselves, ideological because of the ethical values. They are active in this issue, because they want to plead for good working conditions and wages. 4: Customers Customers are important, because without customers the retail business cannot exist. It is important for Primark to understand the needs and values of their customers. The customers of Primark find ethical trading important. They do not want bad labor conditions for making their clothes. Because of this, Primarkâ&#x20AC;&#x2122;s reputation is an important business asset, so Primark must respond to its customersâ&#x20AC;&#x2122; concerns as well as their needs (Primark, 2015).

Customers have a low/middle power and influence in this issue. This depends on if they are regular customers or one-off customers (see figure 5). Because of customers’ concerns and values, Primark actively seeks to meet their concerns about ethical trading. Primark sets up a website where they demonstrated their ethical practices. This is a key channel of communication to its customers. In addition, customers have a personal interest in this issue, because they find ethical trading and good labor conditions important. Furthermore, customers are not very active and visible in the issue itself, but when a new problem will take place, they will be active and visible in the issue. 5: Shareholders Shareholders are very important for Primark. They are a risk of reputation and therefore business value in relation to their investment in the company. Shareholders expect Primark to foster ethical business relationships with all its stakeholders to uphold the core values of the company (Primark, 2015). For them it is important that Primark not uses bad labor conditions, otherwise, their core values would be unbelievable. Shareholders have a very strong power and influence in this issue, because they own shares in the company. They have also a strong interest in this issue, because their reputation and business value is related to Primark (see figure 5). In addition, shareholders are active in this issue, because they find it important for Primark to trade ethically. 6. Media If another issue will occur, Primark shall not immediately inform the media about the issue because of fear for heavy reputation damage, so the media will discover information about the issue by other press and the issue itself. This is damaging for the reputation of Primark, because the media will exposure Primark as a really bad, unethical company. But when Primark wants to prevent this issue in the future and takes good measures for it, the media will be a good medium for making this well-known to the society. Media has a high interest and high power in this issue, because they are a powerful, strong medium with a wide reach. The media is connecting to everybody at the world, so everything that happen will be exposed at the media.

Figure 5: Power/Influence and Interest matrix stakeholders Primark (Primark, 2015)

These stakeholders are also important, but not the most important ones to communicate immediately within this issue: • • •

Non-government-organizations Government Suppliers

5.1 STAKEHOLDER MAPPING The power/interest matrix designed by Gardner et al. (1986) is a useful tool to outline how a company can handle the different interests of the different stakeholder groups. Approach for each stakeholder of Primark: 1: The Ethical Trading Initiative (ETI) Manage closely  high power, high interest Primark collaborates together with the ETI for a better life of the workers and ethical human rights. It is important for Primark to keep the ETI satisfied, because of their high power and interest. 2: Better Work Manage closely  high power, high interest Same explanation as ETI. Better Work collaborates with Primark to improve the labor conditions and to ensure no child labor or too many working hours. It is important for Primark to keep Better Work satisfied, because of their high power and interest. Figure 6: Power/interest matrix (Gardner et al, 1986)

3: Employees and communities Keep informed  low power, high interest Employees and communities are a dependent variable, because they cannot influence the labor conditions or human rights such as child labor. On the other hand, they have a strong interest in the issue, because they want the best possible working conditions. 4: Customers Keep informed  low power, high interest Customers have several needs and values that Primark must meet. One of that need among customers is ethical trading of Primark. Customers have not much power, because they are also a dependent variable. But due their needs, values and concern about ethical trading, they have a high interest. The quantity of power depends on which level the customer is in. If it is a regular customer, then the power is in the middle. If it is a one-off customer, then the power is low (see figure 5). 5: Shareholders Manage closely  high power, high interest Shareholders own shares in the company, therefor reputation is very important and their power is very high. It is very important for shareholders that Primark has an ethical structure to uphold their core values. This leads to a high interest. It is important for Primark to manage the shareholders closely, because the shareholders are a major part of the company. 6. Media Manage closely  high power, high interest The media has a high interest and high power in this issue, because the media is an informing medium that reaches a large group of people. When an issue occurs, the media will be the first medium that announce this issue to the society. It is important for Primark to use the media as a strategic tool to show their strategy how they prevent this issue in the future and what their taken measures are.

6.1 ADVICE In the last part the advice will be presented. The advices contain a strategy for Primark how to handle with this issue. In the stakeholder approach will be explained how to deal with every stakeholder from the stakeholder analysis. The reason why issue management is the best strategy, is because there is no crisis yet, but Primark has to respond on the issue of bad labor conditions to the outside world that they are preventing this to recover their incurred reputation damage. Issue management is lessening the negative impact or creating a positive effect from an issue (Coombs, 2012).

6.1.1. General strategy Primark is trying to recover its damaged reputation of the issue bad labor conditions. They have to prove themselves that they changed into an ethical, social responsible company. According to their damaged reputation, currently it is important for Primark to prevent this issue from happening again. Thus they must communicate transparently their improved labor conditions and ethical policy to the outside world. Primark have to manage this issue for a positive outcome of the company. Primark is already realizing this preventive ethical policy. This policy is communicated under a heading on their website. For example, they communicate about the compensation and damages they give to the victims of Rana Plaza, they claim good working conditions and no child labor, good wages, fair trade clothing and so on. Primark should communicate this to a larger group of people by using more mediums than only their heading on the website. When they will communicate this by more mediums to a larger target group, Primark shows that they want to prevent this issue from happening again and that they are managing this issue. Also, they might attract a group of customers who werenâ&#x20AC;&#x2122;t first interested in Primark, but probably after seeing the ethical policy they might change their thoughts. Audience Introducing their ethical policy, Primark should take account into their audience. The target group where Primark must focus their message on are shoppers, including current customers and possible new customers. The second target group for the message of Primark are adults in the age of 18-65 that doesnâ&#x20AC;&#x2122;t have to be clients of Primark. The last target group is the media for generating attention. This because it is important to prevent miscommunication about the new ethical policy of Primark among as many people as they can reach, so that it is easier for Primark to recover their damaged reputation. They have to communicate transparently that they are preventing this issue towards these audiences. Message The message that Primark has to say contains how they are going to prevent this issue from happening again in the future. They are already taking preventive measures, but this is not obvious for a lot of people because Primark only communicates it on their website under a heading. This is not enough and has to reach a larger target group of people. Thus, Primark must communicate their actions and measures they have taken and also explain their ethical policy. The actions, measures and policy must be substantiated with explanation and evidence. It is important that Primark must show to the audience what they already doing for preventing this issue from happening again and what their strategy is for the future. For example: how they are taking the issue of wages and labor conditions seriously, what they are doing for the victims and relatives of the Rana Plaza disaster, why they can offer the lowest prices on the highest street or why they find their policy about child labor important. Herewith they can build a new reputation, recover as a company and give people their trust back. 17

Tone of voice and framing Preventing bad labor conditions is a serious matter, so Primark has to bring over the message seriously and sincerely. Being sincere is important for Primark. They have to admit their mistakes in the past and prove that they really are reformed as a company. In other words, it must be clear for everybody that Primark sees this issue as a serious matter and that they are taking actions and responsibility. Besides that, Primark can frame their issue into a CSR (MVO) or an ideological framework. For example, concerns in human rights. Long-term and short-term The general strategy is set for long-term, because the message is a lasting process. The message and strategy are the overall principles from where Primark can operate. The strategic options are short-term, but it is the intention that the outcomes of the message will last forever. The Howard Chase Model (Dalton, 2011) give insights in how to manage an issue. Because the issue did already happen, Primark must be alert and anticipate on new developments around the issue, so that they can respond to that. According to this model, Primark starts with environmental scanning due looking at the market, trade journals, activists on the field of human rights, government releases and so on. They have to identify the issue and for example look in which frame it is presented or what the reactions of stakeholders are. They have to monitor the issue, like what is going on? After that they analyze the issue how they can use it in their advantage. Strategic options will follow, as well as implementation and evaluation. A strategic campaign and messages via corporate communications will start. In this phase, the general strategy and message are formed of Primark.

6.1.2. Strategic options To make the strategy and message more operational, two strategic options will be presented how to carry out the strategy and message. Working conditions campaign As mentioned in the analysis (see 2.1.1.) Primark wants to recover their incurred damaged reputation from the bad labor conditions issue. To bring out their message and strategy, Primark has to influence the public opinion about their renewed ethical identity related to the issue bad labor conditions. They have to create a campaign with the goal to generate as much publicity as possible for the preventive taken measures of Primark for the issue. Their target group must be aware of their ethical policy. Good means of communication could be the press and media. The first thing Primark must do is to develop a strategy how to handle with the issue and to come up with a message. This is at internal level. Primark must look at the impact of the issue and decide what kind of medium they going to use to bring out the message and who is be responsible for this. They must involve all their employees intensely, so that everybody is informed and agrees with the message and strategy. Primark claims that they have an ethical identity with care for labor conditions, good wages and no child labor. So, their message must 18

fit the identity of Primark. When there is an internal agreement about the message, Primark can communicate the message and strategy to the outside world. Their strategy will be focused on public relations, because PR stands for transparency, building strong relationships between organization and public, image improving, fostering mutual understanding and involving the outer world with the organization. The main purpose for Primark with PR is to clarify their organizational policy to their target group. The message will be told by an employee who is represented for Primark, for example the director. The director is ‘the face’ of Primark and has a high degree of commitment and responsibility by the issue. If the director will tell the message and strategy, it will give the most impact on people. The message must contain information about actions, measures and charities Primark takes for improving the working conditions and inform people about their ethical policy to clarify things up. Primark must also ensure that the message includes a lot of footage as evidence what they already do for preventing the issue from happening again (not only blarney). This will fit the identity of Primark, because Primark claims to be a transparent organization and this is a transparent, sincere manner of communicating which will show that they actually care about human rights. Primark will introduce their campaign at television programs such as ‘RTL Late Night’ or ‘Pauw & Witteman’, because these programs broadcast actual and important news subjects with different guests at the table. Also a lot of people watch these programs and they have around a million views (Televizier, 2015). Furthermore, when introducing the campaign at those programs, the press and social media will pick up the message and spread it among the society. This will lead to extra visitors to the website of Primark to gather more information, so it is important for Primark to set the homepage in attention of the issue. At the homepage, they can redirect people to a separate page of the website that contains more information. It is advisable to make the page light because of the high numbers of visitors, so that the website won’t crash. In addition, Primark can create an extra social media account at for example Facebook, where they post information about different actions and charities they take for the working conditions, to keep their target group up to date. Besides that, social media is a twoway communication, so Primark can expect some responses which will lead to higher involvement of people. Charity gala Another way of creating publicity for the intercourse of Primark with the issue is to organize a charity gala. The charity gala will be a public event for stakeholders, customers and all other people. There will be raised money for the victims and relatives of Rana Plaza and for further improving the working conditions. At the charity gala, Primark will introduce the issue and show their compassion. This could also be introduced by the director of Primark. After that, the director can inform the public about the ethical policy of Primark and what they already do for preventing the issue from happening again. Primark can tell about their large compensation they already pay for the victims of Rana Plaza and show their ethical actions for improving the working conditions. They can create for example a PowerPoint or a Prezi to show several footages. This will lead to higher involvement and awareness. In addition, at the charity gala, Primark can stimulate their stakeholders and customers to co-invest in their charities with the purpose to create a better world. Primark can set up different nice auctions to raise money for the charities, such as designer clothes. The charity gala will lead to more commitment what Primark altogether does for preventing the issue and it will lead to reputation improving. The charity gala will be recorded and broadcasted live on television, to range a larger group of people and to create more publicity and awareness for the issue.

The reason why both strategies would fit the identity of Primark is because spreading the message via these mediums is an open, transparent and sincere way to show their ethical identity. This ethical transparency is also what they want to emit to the outside world. Due the fact that a lot of people arenâ&#x20AC;&#x2122;t aware of their ethical policy which lead to a lasting reputation damage, these are good opportunities to approach their target group and to change the way people think about Primark. That is what they want to reach.

7.1 Stakeholder approach The Ethical Trading Initiative (ETI) The ETI is an important stakeholder of Primark and it is important to keep collaborating with them, because they prevent bad labor conditions. Primark also has to monitor this stakeholder for developments within labor conditions. Besides monitoring and collaborating with the ETI, keeping them up to date is an important thing as well. Primark can keep the ETI up to date of their strategy, improvements and actions around the issue to make the collaboration interactive. Better Work partnership Besides the ETI, it is also important for Primark to keep collaborating with this stakeholder. Better Work has a large interest in the issue as well as the ETI because they strive for good working conditions, wages and no child labor. This means that Primark has to monitor this stakeholder too for developments within labor conditions and a good collaboration. Employees and communities Because Primark wants to treat their employees and communities as well as they can, it is very important to monitor them in regards to foster collaboration and interactivity. If Primark will do this on the right way, they stick to their ethical policy and promises. This will have a positive outcome for Primark and Primark will be seen as a good company to work in. Customers Customers are the most important stakeholder. They are the ones that Primark wants to reach, convince and change their mind. That is why it is critical to monitor the effects of the strategy and message (and the strategic options) on the customers to see the results. Primark has to check if the message is understood correctly and if customers have a changed mind after hearing the message and new strategy. Involvement of customers is very important, because the strategy is mostly focused on them. Shareholders Shareholders are very important stakeholders of Primark, because the reputation of Primark is also meaningful for them. Therefor they must monitor this stakeholder. The communication between Primark and the shareholders must be transparently and clear, so that the shareholders know what they can expect. Media The media has a high power and different functions. Sometimes it is interactive (social media) and sometimes it is a one-way traffic (television; the media decides what people get to see). Primark must use the media as a smart tool to reach a quit large target group with their message. They must also be aware of the fact that the media could be used against them. Therefor Primark must monitor the media and provide for only good news of the organization according to prevent the issue. This will recover their reputation.

REFLECTION CRISIS DAY On Monday November 23 we had crisis day during the lesson. The case of the crisis day was the movie ‘The Interview’. A few days before the crisis day, I prepared myself to read articles and information on the Fontys Portal and also on the internet about ‘The Interview’, so I had knowledge about the case. Our company within the case was the ‘International Film Festival Berlin’. The Berlin film festival was wrongly accused of terrorism for agreeing to show The Interview at their event. There was a bomb explosion which made a lot of victims. From this case we had to make a press conference. My role in this case was to be the moderator. I had to welcome the press and introduce the issue and participants. We decided that Kim Corstjens had the role of the spokesman, as a director of the Film Festival Berlin. In addition, we decided that it was also important to have a minister of Culture and Arts according to the Film Festival and the cinema, and that was Kylie van Hamond. My message as a moderator contained the following: “Good afternoon everybody, First of all, it regrets us intensely about what happened in Berlin. International Film Festival Berlin has announced and confirmed that there is perpetrated a bomb attack on one of the biggest cinema’s in Berlin and the International Film Festival Berlin. This horrible event occurred through showing the premiere of ‘The Interview’. The explosion took the lives of 10 people and at least 100 people got injured. I will introduce the participants who are able to answer all your questions. On the left side of me is Kim Corstjens, director of the Film Festival Berlin. On the right side of me is Kylie van Hamond, the minister of Culture & Arts.” This message was inspired by the press conference of flight MH17, where the director of Malaysia Airlines Netherlands was spoking and introducing about the crisis. After this, the director of the Film Festival Berlin (Kim) started to tell her key message. As a moderator, I tried to address some questions from the press to the appropriate participant. I find this hard to do, because the spokesman answered almost all the questions by herself. We did not prepare a Q&A for our press conference, because we did not have enough time. We tried to understand the situation first before we wrote our statement, which took a lot of time. In addition, I was journalist for the two other companies so I prepared two questions for the cases (1. Why not screening? 2. How are you going to deal with another threat?) Unfortunately, these questions were already answered in their key message, so I did not ask the questions in the press conference. I liked the crisis day very much, because it was an informing and interesting day with a lot of practicing. You had to place the theory that you have learned over the past four years to practical, that was very hard but also fun to do. I never made or did a crisis conference before, so I have learned a lot thigs during the preparation and by watching the other conferences. Especially the Q&A after the conferences were very heavy and looked so real, that everybody tried to defend and justified their message as good as they can. In the role of a moderator, I have learned that your attitude, self-awareness and assurance are very important things to bring your message correctly to the press. You have to think well about your message and questions on forehand. As a journalist, I have learned to prepare good, deep questions and listen carefully to the case to notice important things.

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Retrieved November 10, 2015, from: http://www.nu.nl/economie/3610192/primarkcompenseert-slachtoffers-fabrieksramp-weer.html Nu (2014). Kledingmerk Gaastra stopt met bont na actie Bont voor Dieren, Retrieved November 16, 2015, from: http://www.nu.nl/overig/3871972/kledingmerk-gaastra-stopt-metbont-actie-bont-dieren.html Nu (2014). Victoria's Secret past omstreden campagne aan, Retrieved November 16, 2015, from: http://www.nu.nl/lifestyle/3922449/victorias-secret-past-omstreden-campagne.html PiepVandaag (2015, November 10). Actie tegen bont in Haarlem, Retrieved November 16, 2015, from: http://www.piepvandaag.nl/actie-tegen-bont-in-haarlem/ Primark (2015). About us, Retrieved November 10, 2015, from: http://www.primark.com/en/about-us/about-primark Primark (2015). Engaging with stakeholders, Retrieved November 17, 2015, from: http://www.primark.com/~/media/ourethics/unpacked/primark-edition-16-full.ashx Primark (2015). Our ethics, Retrieved November 10, 2015, from: http://www.primark.com/en/our-ethics Primark (2015). Values & Diversity, Retrieved November 10, 2015, from: https://www.primark.com/en/careers/values-and-diversity Radar (2013). H&M stopt met productie angorakleding, Retrieved November 10, 2015, from http://www.radartv.nl/nieuws/archief/detail/article/hm-stopt-met-productie-kleding-metangora/ RTL (2014, June 25). Noodkreet op kledinglabel Primark, Retrieved November 16, 2015, from: http://www.rtlnieuws.nl/nieuws/opmerkelijk/noodkreet-op-kledinglabel-primark Schone Kleren (2015). Primark: wegwerpkleren voor bodemprijzen, Retrieved November 9, 2015, from: http://www.schonekleren.nl/nieuws/2015/01/primark-wegwerpkleren-voorbodemprijzen Struik, S. (2014, April 30). Primark, de plofkip in winkelland, Retrieved November 9, 2015, from: http://vrij-zinnig.nl/wp/2014/04/30/primark-de-plofkip-in-winkelland/ Televizier (2015, September 23). Kijkcijfers: Pauw en RTL Late Night, Retrieved December 15, 2015, from: http://www.televizier.nl/nieuws/kijk-en-praatcijfers/kijkcijfers-pauw-en-rtl-latenight-in-nek-aan-nek.7411751.lynkx Van Es, A. (2012). Kinderarbeid in bedrijf dat levert aan C&A en Primark, Retrieved November 10, 2015, from: http://www.volkskrant.nl/economie/kinderarbeid-in-bedrijf-datlevert-aan-cena-en-primark~a3246038/ Van Kampen, A. (2013, May 10). Dodental ingestorte fabriek Bangladesh over de duizend, Retrieved November 10, 2015, from: http://www.nrc.nl/nieuws/2013/05/10/dodentalingestorte-fabriek-bangladesh-over-de-duizend Veronica (2015). Next Top-Model deelneemster uit de kleren op de catwalk, Retrieved November 10, 2015, from: https://www.veronicamagazine.nl/nieuws/8543-next-top-modeldeelneemster-uit-de-kleren-op-catwalk 23

Hamer, H. (2012). Winkelen bij Primark, Retrieved November 10, 2015, from: http://www.trouw.nl/tr/nl/5009/Archief/article/detail/3296503/2012/08/04/Winkelen-bijPrimark.dhtml Zeilinger, J. (2015). The disturbing effect our beauty standards have on women across the world, Retrieved November 16, 2015, from: http://mic.com/articles/111228/how-westernbeauty-ideals-are-hurting-women-across-the-globe#.ufoHLq3OI