Issue of Impression Management

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Table of Contents

Introduction
Company background and the Issues it has faced
Etihad Etisalat: Engagement in Impression Management
Impression Management Strategies
Conclusion
Reference List

Introduction

Within the past three decades, organizational theorists and researchers have been focusing on the issue of impression management (IM) and its role in business corporations. The outstanding objective behind the adoption and implementation of this concept is to influence the image of a specific company and meet the needs of both external and internal stakeholders. Brennan and Merkl-Davies (2013) define this concept as a conscious approach aimed at influencing the perceptions and ideas available to other people about a specific event, situation, company, or object.

This means that firms can pursue it to deliver desirable messages and ideas to specific stakeholders who have the potential to influence performance and reshape future activities. A positive brand image becomes a powerful tool for tackling the problem of competition and taking companies to the next level (Highhouse, Brooks &Gregarus 2009). Osma and Guillamón-Saorín (2011) go further to reveal that the concept of IM continues to make it possible for any corporation to establish a positive reputation.

At Etihad Etisalat, the implementation of powerful IM practices has made a significant difference; this initiative is capable of promoting or influencing reputation legitimacy (Corporate Information 2019).

This is defined as the notion people form regarding the procedures and actions a given organization undertakes (Cen &Cai 2014). This paper uses the case of Etihad Etisalat Corporation to analyze this concept and examine how it has made it a competitive player in the Saudi Arabian telecommunication industry. Firstly, the paper provides a brief introduction to the company and the problem it faced. Secondly, it discusses who was affected by the problem and how the company used disclosure vehicles to communicate with its audiences. Finally, the paper presents the IM Strategies that were used by the company.

Company background and the Issues it has faced

Etihad Etisalat currently offers mobile telephony, fixed-line telephony, and Internet services in Saudi Arabia. Its products and offerings are usually identifiable under the brand Mobily (Mobily: overview 2019). This organization has been in operation since the year 2004. It has its headquarters in Saudi Arabia and serves the entire country. In 2016, its total revenues amounted to around 6.7 billion SAR (Mobily: overview 2019). Its website is www.mobiliy.com.sa, and it competes directly with Saudi Telecom.

One of the outstanding facts about this company is that it publishes press releases, corporate social responsibility (CSR), and annual reports on its website (Mobily: overview 2019). This practice has been essential for supporting the ideas or concepts of IM. This means that the company remains a leading competitor and provider of communication, 3G, and 4G Internet services in Saudi Arabia.

However, Mobily has faced two problems, the first of which is strong competition from telecommunications companies, especially the Saudi Telecom Company, which is the oldest telecommunications company with the most profits in this sector. The second problem that the company has faced is a significant decrease in revenues in 2014 and 2015.

Etihad Etisalat: Engagement in Impression Management

Many profitable corporations identify and implement powerful strategies to improve their image, win the trust of different stakeholders and overcome the challenge of competition. These initiatives resonate with the concept of organizational IM (Bolino, Long &Turnley 2016). The original idea behind this kind of practice led to additional views and applications that have become critical for many firms.

This strategy is in accordance with the notion of discretionary corporate disclosure, whereby topmost leaders implement opportunistic behaviors to exploit asymmetries of information between their organizations and targeted external stakeholders (Rahman 2012). The ultimate objective has been for companies to display specific attributes and promote actions that will influence the assessment of the targeted clients or business partners. Etihad Etisalat has considered similar attributes to improve its impression and achieve additional goals.

How the Company Responded

Etihad Etisalat decided to respond accordingly since the emerging issues were problematic and could affect performance. Different theories support this assertion and can explain why there was a need for this corporation to act immediately. For instance, stakeholder theory encourages leaders to establish positive relationships with their partners, employees, and community members to add value to them. Through impression management theory, the company could ensure that different stakeholders were informed about the superior initiatives being undertaken to deliver high-quality services and maximize customer experience (Corporate information 2019).

The concept of reputation is also essential since it guides managers to consider the best images and information that can add value to stakeholders and encourage them to continue supporting the company.

With this kind of knowledge, Etihad Etisalat communicates effectively with different stakeholders to ensure that its corporate image remains acceptable. After the pioneers of Etihad Etisalat launched the corporation successfully, they realized that the monopolistic behavior of Saudi Telecom would affect business performance (Corporate information 2019). This first concern forced the leaders to take the issue of IM seriously in an attempt to remain relevant. This aim would be achieved by carefully selecting the type or quality of information available to the public.

The second issue that prompted Etihad Etisalat to consider the role of IM was the desire to attract more customers and establish its market niche. As a new organization operating in a competitive industry, its leaders chose to embrace this model in an attempt to build the best corporate story and eventually establish a reputable brand. This practice encouraged more stakeholders to identify this company as a favorable business partner (Malafronte, Porzio & Starita 2016). Through effective and continuous communication efforts, Etihad Etisalat’s managers identified the most appropriate message that would improve its reputation. This initiative explains why the company was able to record a positive growth trajectory within a period of three years.

The third contributing factor towards the adoption and use of IM was the evidence gained from past literature. The cases of different companies revealed that the practice was capable of transforming the image of many corporations around the world (Moreno & Casasola 2016).

Such organizations were focusing on the ideas of CSR and green reporting to ensure that more stakeholders were informed about the measures they were undertaking to promote sustainability and make the surrounding environment appropriate for every person (Merkl-Davies & Brennan 2011). Although they were operating in a totally different industry, the pioneers of Etihad Etisalat appreciated the fact that presentable graphs and timely corporate messages could reshape customers’ debates and improve performance (Etihad Etisalat 2015).

Finally, the company realized that there was a need to focus on future trends in different sectors. Its managers acknowledged that companies that communicated effectively with their stakeholders and pursued sustainability practices had higher chances of achieving their potential. With this kind of information, Etihad Etisalat decided to engage in IM and make it part of its business model (Etihad Etisalat 2015, p22). These aspects explain why it remains competitive and successful in the Saudi Arabian telecommunication industry.

As described above, Etihad Etisalat has been focusing on IM for a number of reasons. Firstly, the model was selected to inform more stakeholders about its actions and initiatives aimed at improving performance and adding value to them (Corporate Information 2019). For example, the speedy introduction of 4G services is currently making this organization competitive (Corporate Information 2019). Secondly, the practice has continued to make it possible for this organization to create and sustain a positive relationship with its employees and customers (Corporate Information 2019).

Such initiatives will continue to make this corporation competitive (Corporate information 2019). Thirdly, the entire approach has been pursued as a powerful strategy for establishing the most appropriate corporate image. This means that many people appreciate that Etihad Etisalat is a company that focuses on the changing demands of both internal and external stakeholders; it is therefore in a position to augment the existing legitimacy of its reputation (Etihad Etisalat 2015).

Audience and Disclosure Vehicles Used to Communicate

Etihad Etisalat considered the demands and expectations of different stakeholders before implementing the most appropriate IM model. The targeted individuals included the organizations, shareholders, and prospective investors because they are the most affected by the problems of losses that Mobily faced in 2014 and 2015; thus, those problems lead to change the decision of prospective investors. This was achieved through the use of various disclosure vehicles.

For instance, the company utilized its annual reports and press releases to outline existing services and its mission, vision, CSR, and future objectives. The items and services available to current and future clients are usually captured in such documents (Mobily: overview 2019). The president of the company is always keen to deliver timely messages and information to these stakeholders regarding the actions being undertaken to streamline services and improve user experiences.

The next audience group is that of environmentalists, customers, and the wider public, who have a significant impact on the competitive market in the telecommunication sector. This organization captures the major initiatives and practices being undertaken to promote the idea of sustainability (The National Staff 2014). The outstanding tool or disclosure vehicle for this objective is the corporation’s CSR report (Etihad Etisalat 2015). This movie explains why the organization is partnering with Masdar to continue improving its sustainability efforts and practices (The National Staff 2014). Such efforts will eventually make Etihad Etisalat successful.

Press releases are crucial vehicles for informing different stockholders and potential investors about the actions being undertaken to maximize performance and profitability (Henry, 2008). Etihad Etisalat’s Annual Report of 2014 revealed that the company’s profits had declined significantly to around 1.7 billion riyals (Etihad Etisalat 2014). However, the Chairman of the Board presented convincing information regarding the initiatives that were being pursued to improve the situation and increase revenues (Etihad Etisalat 2015). During the same period, the organization continued to support a number of social responsibility programs.

Some of them included the App Developer Community and a campaign focusing on the problem of smoking. It distributed gifts to the Disabled Children’s Association ((GAATES, 2015). It went further and supported and empowered pilgrims traveling to the Holy City of Makkah. Despite the turbulence recorded in 2004, the company managed to engage in evidence-based practices and eventfully seized this new opportunity to improve its future operations (Etihad Etisalat 2015). These measures explain why Etihad Etisalat remains a competitive leader in its industry.

Impression Management Strategies

The concept of IM is broad and applicable depending on the anticipated business aims and the stage of an organization’s lifecycle. Cen and Cai (2014) explain why it is appropriate for business managers to be aware of evidence-based approaches that can improve the existing image and take the targeted company to the next level. At Etihad Etisalat, various strategies and procedures have been considered to attract potential customers and make the organization profitable. The first outstanding practice for driving the IM agenda revolves around the use of structural and visual tools (Stratulat 2019).

For example, the company’s annual reports are characterized by convincing pictorials, graphs, and charts that are informative and attractive to the reader (Etihad Etisalat 2014). This means that the targeted person will eventually develop a positive mental picture of this organization (Ashforth& Gibbs 1990).

The concept of repetition is also evident in the reports as the authors consider that they magnify the intended message. This means that the use of visual emphasis is essential for any IM model or strategy. Rahman (2012) indicates that IM can occur through the use of font style and size, bolding, attractive colors, and bullet points. Pictorials are also added to make the text more informative and readable (Etihad Etisalat 2015). The use of these strategies has made it possible for Etihad Etisalat to achieve most of its objectives.

The company’s leaders embrace the power of CSR and annual reports as appropriate strategies for delivering IM aims. The outstanding observation is that the managers discourage the adoption of vague procedures in the manner in which financial documents and sustainability efforts are communicated to the targeted readers. This kind of strategy is capable of improving the level of representation in any firm (Yan &Aerts 2014). The end result is that the intended goals are achieved within the shortest time possible. The company’s website is also attractive and useful for presenting the achievements, offerings, and services associated with this corporation. Readers and visitors are guided and encouraged to seek assistance when necessary.

Conclusion

The above discussion has identified IM as a powerful tool for organizations that want to communicate their missions, visions, and corporate images to members of the public. At Etihad Etisalat, the decision to pursue this practice was informed by the dominance of Saudi Telecom and the increased chances of future competition. It currently utilizes different vehicles to inform more clients, customers, and stakeholders about the initiatives undertaken to improve business performance, including annual reports, CSR documents, and press releases. The company’s website is also a powerful tool for pursuing the intended IM goals.

The use of pictorials, fonts, and images is a powerful strategy that reshapes this organization’s IM model. CSR reports outline the major activities and initiatives undertaken to improve the lives and experiences of different customers. The ultimate purpose of IM at Etihad Etisalat is to ensure that most of the targeted stakeholders are aware of the available services and products, how they are delivered to different clients, and the sustainable initiatives pursued to improve the integrity of the natural environment.

With this model in place, Etihad Etisalat has managed to attract more people to Saudi Arabia. It has also addressed the challenge of competition, thereby remaining one of the leading competitors in this country’s telecommunications industry. Companies that want to emerge profitably and attract more customers should, therefore, consider every strategy that Etihad Etisalat has implemented to achieve positive results.

Reference List

Ashforth, B.E. and Gibbs, B.W., 1990. The double-edge of organizational legitimation.Organization science, 1(2), pp.177-194.

Bolino, M., Long, D. and Turnley, W., 2016. Impression management in organizations: Critical questions, answers, and areas for future research. Annual Review of Organizational Psychology and Organizational Behavior, 3, pp.377-406.

Brennan, N.M. and Merkl-Davies, D.M., 2013.Accounting narratives and impression management.In The Routledge companion to accounting communication (pp. 123-146).Routledge.

Cen, Z. and Cai, R., 2014. Preference in presentation or impression management: A comparison study between chairmen’s statements of the most and least profitable Australian companies. Australasian Accounting, Business and Finance Journal, 8(3), pp.3-22.

Corporate information 2019. Web.

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Etihad Etisalat 2015, Annual report. Web.

Henry, E., 2008. Are investors influenced by how earnings press releases are written?.The Journal of Business Communication (1973), 45(4), pp.363-407.

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Malafronte, I., Porzio, C. and Starita, M.G., 2016. The nature and determinants of disclosure practices in the insurance industry: Evidence from European insurers. International Review of Financial Analysis, 45, pp.367-382.

Merkl-Davies, D.M. and Brennan, N.M., 2011. A conceptual framework of impression management: new insights from psychology, sociology and critical perspectives. Accounting and business research, 41(5), pp.415-437.

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Moreno, A. and Casasola, A., 2016. A readability evolution of narratives in annual reports: A longitudinal study of two Spanish companies. Journal of Business and Technical Communication, 30(2), pp.202-235.

Osma, B.G. and Guillamón-Saorín, E., 2011. Corporate governance and impression management in annual results press releases. Accounting, Organizations and Society, 36(4-5), pp.187-208.

Rahman, S., 2012. Impression management motivations, strategies and disclosure credibility of corporate narratives. Journal of Management Research, 4(3), p.1.

Stratulat, M 2019, ‘Impression management during a crisis event’, Scientific Journal of Logistics, 15(1), pp. 119-128.

The National Staff 2014, ‘Masdar to help Etisalat with its sustainability efforts’. Web.

Aerts, W. and Beibei, Y., 2014.Rhetorical impression management in corporate narratives and institutional environment.University of Antwerp, Research Paper, 14.

The Global Alliance on Accessible Technologies and Environments. 2015. Mobily launches project to support children with disabilities. Web.

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