Newswise — When companies disclose their environmental policies, they can receive positive media attention solely if their story skillfully expresses indications of adherence (efforts to comply with established norms) and uniqueness (the embrace of noticeably uncommon conduct).
A study authored by Anne Jacqueminet from Bocconi's Department of Management and Technology, Emanuele Bettinazzi from USI (Università della Svizzera Italiana, Switzerland), Kerstin Neumann from Innsbruck University, and Peter Snoeren from the University of Amsterdam presents a model aiming to elucidate the signal combinations that can yield favorable media attention and those that are unsuccessful.
Within the context of corporate communication of environmental policies, there exists a discernible trade-off or, at the very least, a notable tension between conformity and distinctiveness. This tension arises from the challenge faced by companies in presenting themselves as both "conforming" and "distinctive" simultaneously. Achieving a harmonious equilibrium between these two attributes is crucial to gaining media recognition as genuinely dedicated to environmentally responsible practices, but it can also pose significant difficulties.
The researchers have identified three distinct categories of signals that indicate conformity, arranged on a scale of ascending credibility, as well as three categories that indicate distinctiveness.
The former grouping (conformity signals) includes donations, associations, and certifications.
The latter (distinctiveness signals) encompass transformative actions, such as implementing changes in products, processes, and structures to minimize a company's environmental impact, as well as inter-firm partnerships and ratings.
The diverse credibility of these signals arises from their inherent characteristics: the first and least credible element in each group is generated by the firm itself, the second is derived from collaborations with other actors, and the third and most credible signal is provided by external parties.
Taking into account that the media perceives these signals in combination with one another rather than in isolation, Jacqueminet and her colleagues aimed to ascertain which combinations are most likely to elicit positive responses in media coverage. Through the analysis of data concerning electrical utilities from 2008 to 2013, along with over 11,000 articles discussing their environmental initiatives, the authors identified three primary favorable patterns.
"Firm coherence" refers to companies that consistently exhibit environmental behavior, whether conforming or distinctive, centered on a highly credible signal. "Signal equilibrium" entails pairing a highly credible conformity signal (e.g., certification) with less credible distinctiveness signals (such as transformative actions) or vice versa. "Signal compromise" involves utilizing a combination of less credible conformity and distinctiveness signals, resulting in limited and temporary positive media coverage. Other signal combinations, it seems, are either unconvincing or too perplexing and inconsistent to garner media admiration.
Anne Jacqueminet elaborates on the significance of highly credible, third-party signals in determining how the media perceive the congruence or incongruence within signal combinations and subsequently react to the level of conformity versus distinctiveness represented in those combinations. She explains that these highly credible signals have a complex role in shaping the media's assessment of a firm's environmental behavior. From a firm's perspective, these signals act as a double-edged sword regarding the outcome of media coverage. Merely having highly credible, third-party signals does not guarantee the positive media assessment that some may anticipate. The crucial factor lies in whether these third-party signals convey a consistent message. If there is a mix of highly credible signals with conflicting messages of distinctiveness and conformity, the media does not grant positive coverage.
Anne Jacqueminet, Emanuele Bettinazzi, Kerstin Neumann, Peter Snoeren “Media Coverage of Firms in the Presence of Multiple Signals: A Configurational Approach”, published online 1 March, 2023 on Academy of Management Journal, DOI https://doi.org/10.5465/amj.2020.1791
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