3.1.Introduction
Communications are essential for entrepreneurs of all kinds (Spinuzzi, Jakobs & Pogue, 2016). The process of communication is not only important to secure funding and to deliver key strategic messages across different stakeholders of the organization, but also to engage potential customers with brand, products, and services (Tan, Shao & Li, 2013). One of the most important goals of communication for SEs is the attraction of resources (Roundy, 2014), including the attraction of funding. To this end, SEs need to engage the specific type of organizations that can both mobilize and provide resources (funds, information, network, knowledge, capital) crucial for their activities (Fiet, 1995). Among these organizations, we find charities, government (with grants and subsidies) philanthropists, business angels and impact investors, volunteers, NGOs and associations that are always willing to support projects with social or environmental impact (Roundy, 2014b).
Emotions are key in SE communications that aim to engage with multiple types of audiences. SEs can leverage on their social mission, and thus stimulate emotions that most people feel, such as social justice and care for others (Miller, Grimes, McMullen & Vogus, 2012). Moreover, SEs need by nature to combine social and economic objectives. This means that they combine a social mission with economic sustainability, and this provides the possibility to access and recombine many more resources than purely focusing on either one of those missions. This duality gives to social entrepreneurs an important challenge: how to effectively communicate and engage my key stakeholders, gain trust, legitimacy and position my social enterprise, while creating social impact? In other words, SEs need to make a “bridge” between the emotions associated with their social mission and the rationale associated with their economic mission throughout their communications.
In this chapter, we discuss the importance of communication to address financial challenges. Understanding communications and using the right communication strategy will open multiple possibilities to achieve financial sustainability for SEs. We will discuss the essential pillars of communication for SEs (cf. Identity, Image and Reputation) and introduce key specific elements to be considered to plan, develop and implement the communication strategy according to the need and target audiences.
3.2.Communication pillars for Social Enterprises
To start communicating, the first step is to gather the necessary information for the communication; this means, to use the exact source, data, examples and facts to design and illustrate your messages. Once information is collected and shaped, the second step is to think about dissemination practices. This often involves several communication strategies (further discussed in this chapter) as well as a cautious selection of the right channels and audiences to maximize the desired impact.
Therefore, for SEs, communicating with accuracy and preciseness is relevant, in order to engage the right type of audiences in their projects, increase their efficiency and create impact. However, the whole communication process cannot start without SEs being aware of their identity, image, and reputation. Those three pillars cannot be seen separately from the overall strategy of a social enterprise, and from the expected goals.
The concepts of identity, image and reputation have received a more central position in the organization, due to the growing tendency for the humanization of businesses (da Camara, 2011). Managers intentionally want to shift the attention of stakeholders from their technical operations processes, towards a more conscious business with a positive impact on society. In the case of SEs, this is more obvious as social and environmental impact is part of their DNA. A social enterprise is often associated with its “good purpose”. Yet, let us elaborate in further detail the importance of the three pillars – identity, image and reputation – for the communications of SEs (Brown, Dacin, Pratt & Whetten, 2006).
When referring to identity, we need to think about questions such as: who we are, what we do, and why we do it. In terms of SEs these include the attributes not only of the social problem being tackled but also of the communities in which they operate. Identity is always associated with the positioning of an SE among other social enterprises and among other organizations.
The image itself is the construct of attributes, characteristics, and values that organizations consolidate through their work and supported by the different actions framed in the vision, mission and tasks executed (Gray & Balmer, 1998). The image as such can be managed through several actions intended to modify the projected identity. As a consequence, the perception of our image depends on the projected identity and through the market, society, between their competitors and the environment.
Reputation is one of the most valuable resources that an SEs need to treasure. Reputation reflects the recognition of SEs identity, traits, behaviors, actions, etc., during crucial moments that identify the actions of the venture. Reputation often reflects power, credibility, character, leadership style, as well as the performance and fulfillment of distinctive actions. Reputation is basically perceived as the message that audiences receive; both image and reputation are constructs owned by the public, something located in the receiver within the overall communication process.
Both image and reputation go hand in hand (da Camara, 2011). The narratives of SEs should be aligned in order to disseminate the right type of messages for communication and marketing purposes. This is also key during the process of identifying potential funding opportunities and partners, and thus formulating the strategy to access such funding source(s). SEs are often concerned about different key management elements that can maintain and sustain not only their businesses but a good reputation related to their social and environmental impact. This means that it is not only important to understand what is done but also how it is done. Overall, communications are considered as a relevant tool to get access to relevant networks and partnerships, and thus also to secure the funding of SEs.
3.3.The Challenge: communicate, communicate, communicate
SEs have a lot of stakeholders to consider because they are delivering a solution to more than just “a customer”. The list of stakeholders that one can imagine for any type of business can be quite exhaustive. Amongst those most important to the social entrepreneur are its beneficiaries, the team members and volunteers, board members, partner organizations, governmental institutions, impact investors, and other stakeholders. For each of these stakeholders, a specific message and approach may be required in order to have the optimal relationship (Dentchev & Heene, 2004). Maybe, for example, the beneficiaries might need a different message than your investors. Maybe, SEs will need to explain the nature of their relationships with different stakeholders and they will have to manage their expectations. This is important, as crowding-out effects may occur (Andreoni & Payne, 2003; Achleitner et al., 2014). This means that SEs need to carefully manage their messages and stakeholders in a balanced manner, otherwise they can risk the support you receive from different organizations, due to uncertainties, miscommunication, lack of transparency or simply because they lost interest in your organization. If SEs are not managing their communications in a clear manner, it would be difficult to convince their different stakeholders. For example, if one would be donating money to a social entrepreneur, but discovers that the organization has been collecting subsidies as well, this might trigger friction, if the philanthropist was not aware of the rationale to combine both funding source. It could even lead to a withdrawl of support, as the philanthropist may think you don’t need me anymore.
Yet, how do SEs build up successful communication? The first thing to consider is the creation of the right type of narrative. SEs can construct three types of narratives to communicate with stakeholders: personal, social-good and business narratives (Roundy, 2014b). Personal narratives are centered on each entrepreneur and refer to the successful experiences within their careers such as academic and managerial good experiences, contacts, relationships, events and personal stories of founding. These personal narratives are useful when communicating with investors, customers and the media, as it opens up the possibility to quickly engage due to the credibility and image of the entrepreneur.
Social-good type of narrative centers its message on the social problem itself as well as on the personal story of the entrepreneur. These narratives are useful to engage the support ecosystem and other stakeholders such as volunteers and the community. It reflects clearly what is the social issue being tackled and portrays the ambition (and often the needs) to do so. Government bodies are attracted by this type of narrative and message. The last type of narrative that SEs can create are business-related narratives. These are focused on the business matters of the company and messages are intended for investors and customers. These narratives are often used to deliver messages that benefit the creation of new goods or services or the growth of current business activity.
Communication is, therefore, a matter of aligning the business plan and strategy with the messages. SEs need to essentially show that they are having a solid business plan, capacities and personnel who don’t disregard money as evil, but show rather they are capable of solving issues in an efficient manner. When communicating, SEs need to understand WHY they are saying something? To Whom and How do you say it? Of course, they need to consider what they have at hand, where they would like to be, as well as how do they want to involve and evolve stakeholders. A combination of the three above mentioned narratives is key to deliver a consistent message and create (maintain) a good reputation and trust.
3.4.How to create a good communication strategy for SEs
The form and context of the messages delivered by SEs, including its perception, are the result of the amount of information gathered, the channel used and the way it is presented. To be efficient in such communication, SEs need to design a communication plan adapted to their communication needs, not only to engage with their local, national (and even international) stakeholders but to gain trust and legitimacy in the process. A good communication strategy will guarantee a successful process of resources acquisition over time (Grossman, Yli-Renko & Janakiraman, 2012). A communication process often incorporates several attributes, defined as elements that provide positive or negative connotations to the message. Such attributes could be tangible or intangible, and they are related to cultural principles, motivations, interests, aspirations, lifestyles, and values.
To communicate effectively, one of the most essential tools an SE should develop is an audience map. This is a typological and hierarchical representation of all different stakeholders involved within and across the organization and their communication needs (in both ways). This map, as a first step, will serve as a departing point to plan, execute and evaluate all different tactical and strategic activities related to the communication of the organization (including attributes, image, reputation, and identity). Below, we would like to share some specific recommendations for SEs to consider when formulating their communication strategy:
1.A good communication plan is unique. SEs shouldn’t copy-paste specific models or try to adapt communication plans made by others. Every social entrepreneurial project is unique, as it is the social or environmental issues they target and all actors involved. The ambitions, resources, and capabilities are also particular. Therefore, SEs need to spend sufficient time to understand their context and develop their specific communication strategy.
2.The formulation of a communication strategy for SEs involves the values, social mission and desired transformation as the main message. In this sense, SEs should always consider being transparent not only about their current progress but also on their ambitions and capabilities. Promises should be made carefully. As such, SEs shouldn’t leave out failures or problems. Showing both their struggles and success make their appeal more authentic.
3.SEs can utilize an emotionally loaded message of hope and change. No matter the channel used, they can always use their context and ambitions to create more engagement.
4.When designing their communication plan, SEs should always consider that it is not only important to communicate (in speaking and writing), but also to listen to your counterparties. Therefore, one of the biggest assets of SEs will be listening and their broad variety of stakeholders. Doing as such can help SEs to mitigate risks or problems, build long-term relationships, lead a team that works as one, and be capable of negotiating deals.
5.Pitching stories is something very difficult to do and which is now increasingly being coached. Sometimes, SEs might get so lost in their passion for solving social ills that they find themselves explaining too much about either how they are working, or how horrible the social problem is in itself. When it comes down to communicating, SEs need to learn that “less is more”. This art of pitching is crucial and it is a skill that needs dedication, training and practice in numerous ways. When acquired, it can help SEs tremendously. Not only will it help SEs to network and find good partners, communicate in a clear and consistent manner but also it helps to sell their project or goods/services whenever required. Should SEs encounter stakeholders who might have issues with their way of work, or more probably, with whom they are working, don’t dismiss their feedback. Try to have a look and feel why and how they are not in agreement. As such, SEs not only need to master the art of pitching, they also need to master the art of negotiating and compromising.
6.Any social entrepreneur that can pitch an authentic story with the right KPIs and methods, will immediately create some kind of impact and reach out to different types of stakeholders. As such, Chapter 4 on impact measures is equally important. Therefore, KPIs, in the sense of financial challenges, can be seen both as an opportunity as well as a necessity (burden almost). However, it is required to do it, whenever SEs want to communicate to the outside world.
3.5.Tips to improve the communication of Social Entrepreneurs
Communication strategies of SEs should be oriented not only to position their brand and project but also contribute to create awareness of the targeted social issue and gain more support. This is a vehicle to engage your audiences and to potentially attract funding for their venture. Today, social media constitute a powerful tool to disseminate key messages for social enterprises. Online and offline strategies are useful to engage audiences to sell products and services, attract and engage key stakeholders, raise funds and gain visibility that will be further useful for the operation of the business activities.
We offer some tips that could be useful for you, as a social entrepreneur, in the planning and implementation of your communication strategy:
✓Define what your social mission is (why / how / what) and how you want to communicate about it. The Golden Circle of Simon Sinek (2009) could be a helpful tool here.
✓Identify all your stakeholders and assess valuable funding and market opportunities. A model that can help to define opportunities is “Where to Play” (Gruber et al., 2017) which helps to determine market opportunities, qualify them and then select the ones you will focus on.
✓Adapt the narrative to each of the relevant stakeholders.
✓Establish clear communication channels to speak with your stakeholders and receive their concerns and questions.
✓Create a balanced relationship with local media (TV, radio, press, online). Distribute to them regular press releases and invite them (actively) to discuss with you about your progress, achievements but also issues you are being confronted with.
✓Train your team in the usage of social media. Try to be present on all different channels. Build organically your communities and keep them updated through regular messages.
✓Communicate with visuals. Use videos, infographics, testimonials.
✓Define clear KPIs in terms of communication. For each strategy, think what KPI you are trying to target.
✓Update regularly your website and printed material. Don’t distribute material with missing information or specific data from the project.
But most of all, be proud of what you are achieving as a social enterprise, and do not forget to have fun. And be patient. Communications take time to develop. Building up a reputation takes years to form, … and only seconds to lose.
3.6.Summary in bullet points
•The three main pillars of communication are identity, image and reputation. These pillars are essential for your communication strategy.
•Identify the relevant stakeholders for funding and business opportunities. This will be helpful to define and implement different communications activities that could potentially lead to increasing your funding opportunities.
•Adapt the narrative of the message according to the relevant stakeholders, their context and specific channels of communication. The most important advice is to be consistent when communicating.
•SEs need to develop and maintain a good relationship with the local media. They need to also identify and use the most appropriate social media channels to engage with their customers and beneficiaries.
•The development of a communication strategy and communication plan is a continuous process. SEs need to be regularly adapting according to their needs, stakeholders and their objectives.
Suggested additional reading for this chapter
•Albert, S. & Whetten, D. A. (2004). Organizational identity. Organizational identity: A reader, 89-118.
•Balmer, J. M. & Greyser, S. A. (Eds.). (2003). Revealing the corporation: perspectives on identity, image, reputation, corporate branding, and corporate-level marketing: an anthology. Psychology Press.
•Cornelissen, J. P. (2008). Corporate communication. The International Encyclopedia of Communication.
•Fombrun, C. J. & Van Riel, C. (2004). Fame & fortune: How successful companies build winning reputations. FT Press.
•Chandra, Y. (2016). A rhetoric-orientation view of social entrepreneurship. Social Enterprise Journal.
•Nicholls, A. (2009). ‘We do good things, don’t we?’: ‘Blended Value Accounting’ in social entrepreneurship. Accounting, organizations and society, 34(6-7), 755-769.
•Smith, L. & Woods, C. (2015). Stakeholder engagement in the social entrepreneurship process: identity, governance and legitimacy. Journal of Social Entrepreneurship, 6(2), 186-217.