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TRANSCRIPT
Masterproef
Tessenderlo Group
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CORPORATE COMMUNICATIE-AFDELING
Promotor: Prof. Dr. Geert Jacobs
Scriptie voorgelegd met het oog op het behalen van de graad
Master in de Meertalige Bedrijfscommunicatie
door Els Lamberts
Faculteit Letteren & Wijsbegeerte
Master-na-Master
Meertalige Bedrijfscommunicatie
Academiejaar 2006-2007
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Acknowledgments
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Dear reader,
Before I let you dive into this master‟s paper, I would like to thank a number of
people without whom this paper, my traineeship or the passed year would not
have been the same.
Thank you to everybody at the corporate communication department of
Tessenderlo Group – Geert Dusar, Michael Vandenbergen, Béatrice Maelfeyt
and Luc De Clerck – for their support, friendliness, patience and for making feel
like part of the team.
Thank you to Luc De Bie, for his ideas and for supporting us all year long. The MTB-
programme would not be complete without him!
Thank you to professor Geert Jacobs for his pointers on writing this master‟s
paper.
Thank you to my parents for their unceasing support and for giving me the
opportunity to enter the MTB-programme.
And finally, thank you to my fellow students who made the passed year an
unforgettable experience.
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Index
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Introduction .................................................................................................................................... 7
Chapter 1 Presentation of Tessenderlo Group ........................................................................... 9
1.1 A short introduction .......................................................................................................... 10
1.2 Short historic overview of Tessenderlo Group ............................................................. 10
1.3 Structure of the company .............................................................................................. 13
1.4 Corporate Identity ............................................................................................................ 14
1.5 Presentation of the product range ............................................................................... 18
1.5.1 Chemicals ................................................................................................................ 19
1.5.2 Plastics Converting ................................................................................................. 20
1.5.3 Specialities ............................................................................................................... 21
1.6 Profile of the customer .................................................................................................... 22
1.7 Overview of the primary competitors .......................................................................... 24
1.7.1 Bayer AG .................................................................................................................. 24
1.7.2 BASF AG ................................................................................................................... 25
1.7.3 Monsanto ................................................................................................................. 25
1.7.4 Rhodia ...................................................................................................................... 26
1.7.5 Lonza ........................................................................................................................ 27
1.7.6 Solvay ....................................................................................................................... 27
1.7.7 DSM ........................................................................................................................... 28
1.8 An outlook on the future ................................................................................................. 29
1.9 Tessenderlo Group as a 'good citizen' ......................................................................... 31
1.10 Conclusion – SWOT analysis ............................................................................................ 34
Chapter 2 How to enliven and communicate values: A theoretical framework ................ 35
2.1 What are values exactly? A number of definitions .................................................... 36
2.1.1 Values ....................................................................................................................... 36
2.1.2 Organizational culture .......................................................................................... 37
2.1.3 Core values ............................................................................................................. 38
2.2 Why do values matter? ................................................................................................... 39
2.3 Are values changeable? ................................................................................................ 41
2.4 Trends influencing attention for values and corporate culture .............................. 41
2.4.1 Internationalization ................................................................................................ 42
2.4.2 Corporate citizenship – Corporate Social Responsibility (CSR) ..................... 44
2.4.3 Growing importance of the „stakeholder‟-model ........................................... 45
2.5 How to communicate and enliven values? ............................................................... 47
2.5.1 Formulating values ................................................................................................. 47
2.5.2 Embedding the values within the organization ............................................... 49
2.5.3 The management as a role model ..................................................................... 53
2.5.4 Cases ........................................................................................................................ 54
Chapter 3 Thoughts on my traineeship ..................................................................................... 58
3.1 Organization of the corporate communication department of Tessenderlo
Group .................................................................................................................................. 59
3.1.1 Internal means ........................................................................................................ 59
3.1.2 External means ....................................................................................................... 60
3.2 My tasks during my traineeship at Tessenderlo Group .............................................. 61
3.2.1 Major tasks ............................................................................................................... 61
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3.2.1.2 Updating the welcoming brochure for new employees ........................... 62
3.2.1.3 Memo on communication of values ............................................................. 63
3.2.1.4 Memo on intranet .............................................................................................. 64
3.2.2 Smaller tasks ............................................................................................................ 65
Chapter 4 Concluding thoughts ................................................................................................ 67
4.1 Final Conclusion ................................................................................................................ 68
Bibliography ................................................................................................................................. 70
Appendix ............................................................................... Fout! Bladwijzer niet gedefinieerd.
OVERVIEW OF TABLES Table 1: Market postion of products .............................................................................................. 19
Table 2: Comparison between Tessenderlo Group and its maincompetitors ....................... 29
OVERVIEW OF FIGURES Figure 1: Distribution of the revenue of 2006 per business group ............................................. 14
Figure 2: Schematic presentation of the integrated production process of Tessenderlo
Group ................................................................................................................................................... 16
Figure 3: Distribution of the revenue of 2006 per consumption market .................................. 23
Figure 4: Distribution of the revenue of 2006 per country of destination ................................ 23
Figure 5: The „Looping‟-model for communication .................................................................... 52
Figure 6: BDO Stoy Hayward „Values at Work cube‟.................................................................. 55
Figure 7: Internal publications of Tessenderlo Group ................................................................. 60
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Introduction
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Earlier this year, when I had to start looking for a traineeship I realized that
working at the communication department of a company attracted me more
than doing my traineeship at an advertising agency or at a marketing
department. When I looked through the stack of proposals that Mr De Bie had
passed, the proposal of Tessenderlo Group immediately appealed to me. I liked
the job description because it combined internal and external communication.
The headquarters of the group are situated in Brussels – a city I did not have
much experience with – which was another appealing factor. The chemistry
activities of the company did not scare me. In fact, I thought it would be
interesting to see how the corporate communication department deals with
environmental and social responsibility issues.
Soon after I sent my application letter, I was invited to the offices in Brussels. I had
a nice conversation with Mr Vandenbergen, who explained me what my tasks
would be. On the first day of my traineeship I was greeted by Mrs Maelfeyt. She
cordially welcomed me, introduced me to her colleagues, showed me to my
desk and gave me the chance to get acquainted with the company. I also got
an e-mail of Mrs Dusar – who was away on business at the time – to welcome me
and to assign me my first task. I really enjoyed my time at Tessenderlo Group and
I think I could not have wished for a better traineeship.
This master‟s paper is composed of four chapters. The first chapter consists of a
presentation of Tessenderlo Group, its products, its competitors and its customers.
In this chapter I will also shine a light on the initiatives Tessenderlo Group has
developed to take on its social responsibility – an important issue for a chemical
company – and I will draw the future of the company.
In the second chapter I will provide a theoretical framework on how to
communicate an enliven values in a company, a subject that is linked to one of
the tasks I was assigned during my traineeship.
In the third chapter I will discuss how I experienced my traineeship, after a short
introduction of the corporate communication department of Tessenderlo Group.
I will end this master‟s paper with a final conclusion that illustrates what I have
learned from my traineeship and from the MTB-programme.
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Chapter 1 Presentation of
Tessenderlo Group
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1.1 A short introduction
Tessenderlo Group is a quoted Belgian company. The group is internationally
active in different branches of the chemical industry and plastics converting.
Tessenderlo Group counts almost 8,200 employees worldwide and has more than
100 facilities in 21 countries. The company is active in Europe, North and South
America, Canada and Asia. In Belgium, Tessenderlo Group employs over 2,000
employees. The company has a turnover of over 2 billion euro. Due to
exceptional costs the company suffered for the first time a loss of 24.3 million
euro in 2006. The group is world leader and European market leader for most of
its products (Tessenderlo Group, 2007a: x and Tessenderlo Group, 2007b: 1, 10,
12-13).
1.2 Short historic overview of Tessenderlo Group1
To give you some insight into how Tessenderlo Group has evolved throughout the
years, I will provide a short historic overview.
1 Sources: Tessenderlo Group, 2007a: x; Tessenderlo Group, s.d. (a), online document and
Tessenderlo Group, s.d. (b), online document.
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In 1929 the company made
another strategic decision by
agreeing to a joint venture with a
French owner of potassium mines
who was looking for a factory to
produce potassium sulphate. This
new factory opened its doors in
1931 and was located along the
Albert canal in Ham. To this day,
the factory still exists. The sulphate
division remains at the heart of
the plant, next to the sulphuric
acid and phosphates division.
In 1969 LVM (Limburgse
Vinyl Maatschappij) was
founded as a joint
venture with a Dutch
partner. Nowadays, LVM
is one of the biggest mvc-
factories in Europe. Mvc
serves as a raw material
for pvc, which is
manufactured in two of
Tessenderlo Group‟s
subsidiaries in The
Netherlands and France.
PB Gelatins in Vilvoorde
became a part of
Tessenderlo Group in
1964. Today, the factory
is one of the world‟s
leading-edge gelatine
factories.
By 1930 the company
counted almost 1,000
employees and 80% of
the production was
being exported all over
the world. The
company adopted a
diversification strategy
with the production of
toluene and glycine.
° 1892 1930 1929 1964 1969
The roots of Tessenderlo Group lie in the Belgian
village of Tessenderlo, as the company‟s name
already suggests. It was there that in 1892, two
French brothers began the exploitation of sulphate
ovens. The ovens produced sodium sulphate and
hydrochloric acid as a by-product, the latter of
which was used in the paper, glass and detergents
industry. During the first world war the production
continued, although the focus shifted towards the
production of sodium carbonate and sodium
hydroxide. Soon after the first world war, the
company was taken over by a Walloon investor.
He managed to expand the company by
producing sulphuric acid, sulphates, phosphates
and electrolysis products.
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1983 1996 2001 2004 2006
In the fifties the company began
to adhere to a development and
diversification strategy that
continued until the eighties. In
1983 the different units merged
into „Tessenderlo Chemie NV‟ and
the group‟s major areas of activity
were established.
Since 1996 the
headquarters of
Tessenderlo Group
are located in
Brussels.
In 2001 the management
decided to officially adopt the
name „Tessenderlo Group‟,
instead of „Tessenderlo
Chemie‟. However, the shares
of Tessenderlo Group are still
listed on the Brussels Stock
Exchange under the name of
„Tessenderlo Chemie‟.
In 2004 EMC – up until
then Tessenderlo Group‟s
major shareholder – sold
a part of its shares to
institutional investors. The
rest of the shares was
transferred to a holding
owned by the French
government. Since 2007
this holding owns 25.96%
of the shares. 54.32% is
free float and the
remaining part is owned
by various other parties.
In 2006 the new electrolysis
unit (ELY III), using state of the
art membrane technology,
was inaugurated at the
Tessenderlo Chemie plant in
Tessenderlo.
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1.3 Structure of the company2
Tessenderlo Group consists of three business groups (Chemicals, Plastics
Converting and Specialities), which are in turn subdivided in eight business units.
Tessenderlo Group runs a total of 63 production units worldwide. The group is
mostly present in France, with 27 production units. The sales activities of
Tessenderlo Group are managed by sales offices all over the world. In Belgium
Tessenderlo Group has, next to the administrative headquarters in Brussels,
production units scattered across the country.
The Chemicals business group has sites in:
o Tessenderlo (pvc & chlor-alkali);
o Ham (mineral chemistry);
o Engis (zeolites).
The Plastics Converting business group has sites in:
o Oeselgem (Wymar International, a manufacturer of pvc-profiles);
o Overpelt (Dyka Plastics, a manufacturer of plastic pipe systems).
The Specialities business group has units in:
o Vilvoorde (PB Gelatins);
o Tessenderlo (fine chemistry).
2 Sources: Tessenderlo Group, 2007b: 3, 12-13 and Tessenderlo Group, 2007a: x.
Chemicals
Inorganics
Pvc/Chlor-
Alkali
Plastics
Converting
Profiles
Plastic Pipe
Systems
Compounds
Specialities
Fine Chemicals
Gelatin
Natural
Derivatives
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Distribution of the revenue of 2006 per business group
42%
34%
24%
Chemicals
Plastics Converting
Specialities
FIGURE 1: DISTRIBUTION OF THE REVENUE OF 2006 PER BUSINESS GROUP
(SOURCE: TESSENDERLO GROUP, 2007B: 3).
This graph shows that in terms of revenue the Chemicals business group is the
most important one, before Plastics Converting and Specialities.
1.4 Corporate Identity
Tessenderlo Group‟s corporate identity consists of a mission, objectives and a
strategy.
The group states its mission as follows:
“Tessenderlo Group has essentially based its development on the integration of its
core activities, on technical mastership and on permanent care for an increase in
productivity. The group‟s strategy also involves operating in niche markets, where
it has a significant market share in products with high added value.
The group is committed to further expanding its business, principally through
innovation and acquisitions of companies. This calls for the strictest compliance
with the legitimate requirements of all the parties involved.
The financial strength of Tessenderlo Group is therefore the result of the followed
strategic course and of the flexibility and speed with which external challenges
are dealt with.
In a rapidly changing environment, the group will continue to demonstrate the
legitimacy of its industrial and financial coherence by constantly adjusting its
resources to the structures, internal processes and working methods of all
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interested parties. This is the best way of safeguarding the group‟s unity”
(Tessenderlo Group, s.d. (c), online document).
The „Target 2007‟ recovery programme is an example of how Tessenderlo Group
tries to adjust to the changing market. This programme will be discussed in
paragraph 1.8. The recent selling of the flavouring and food activities3 and the
new strategic plan (see paragraph 1.8) are other illustrations of how Tessenderlo
Group deals with changing reality.
Tessenderlo Group‟s mission can be brought down to four objectives. Tessenderlo
Group makes sure to devote its maximum attention to the environment and
health of every individual inside and outside the company. The group also aims
to offer its customers quality products and an outstanding service. Furthermore,
Tessenderlo Group wants to create a working environment in which teamwork
plays a central role and in which the employees can develop themselves on a
personal level. Lastly, the group also pays attention to achieving a stable profit,
in order to strengthen the shareholder‟s confidence (Tessenderlo Group, s.d. (c),
online document).
To achieve these objectives the group has worked out a strategy. This strategy
involves taking advantage of its industrial integration. This way the company can
consolidate the position of its products and expand its product line. Boosting the
development of the Plastics Converting activities in Europe and strengthening
the group‟s position in the top of the gelatine field are other strategic elements.
Tessenderlo Group also plans to continue its striving towards a leadership position
in niche markets and its policy of developing activities that combine service
providing and the valorisation of by-products (Tessenderlo Group, 2007b: 11).
The valorisation principle implies that the production of the different chemicals
and substances is closely interrelated. Chlorine and hydrochloric acid are two
crucial substances in the production chain. Tessenderlo Group has reached this
stage of integration by continuously re-using the by-products of the basic
production process (Tessenderlo Group, 2007a: x).
3 For more information: see the press release „Tessenderlo Group sells its flavouring and
food ingredients activity” on http://www.tessenderlogroup.com/.
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FIGURE 2: SCHEMATIC PRESENTATION OF THE INTEGRATED PRODUCTION PROCESS OF TESSENDERLO GROUP
(SOURCE: TESSENDERLO GROUP, S.D. (D), ONLINE DOCUMENT).
Tessenderlo Group has developed a number of business principles which serve as
core values for the whole group. These values are laid down in a charter and
provide guidelines for an optimal working environment. Corporate decisions and
actions are carried out with the charter as a source of inspiration. It is important
to note that these values were drafted with the help of the employees
(Tessenderlo Group, s.d. (e), online document).
1. Every member of staff is unique and valuable
This statement implies four things. First of all, it means that the attitude among co-
workers should be based on mutual trust and respect for the opinions, values and
choices of others. Secondly, all discrimination is deemed unacceptable, whether
it is based on grounds of sex, age, physical or mental, abilities, ethnic origin,
sexual orientation or appearance. Thirdly, all employees should behave honestly,
fairly and responsibly when dealing with co-workers or third parties. Lastly, all
employees should get the opportunity of personal development. Therefore,
particular attention is given to training, career development, individual skills and
recruitment policy (Tessenderlo Group, s.d. (e), online document).
2. Open and clear communication for everyone
This value calls for clear and transparent communication, because “a good
working relationship requires frank dialogue, mutual understanding and accurate
information.” Every employee should be able to give constructive opinions on
procedures, working methods and the circumstances of his or her working
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environment, because “we can all learn by sharing expertise, experience and
working methods” (Tessenderlo Group, s.d. (e), online document).
Tessenderlo Group has developed many initiatives that bring this value into
practice:
o Via the online forum “FORUM” all European employees of the Chemicals
business group get the chance to ask questions, even about the
remuneration of the management, as I noticed during my traineeship. The
communication department guarantees that the question will be
answered within three days.
o The new values of the Chemicals business group will be discussed in
soundboard groups consisting of employees of all levels of the business
group.
o Information sessions are regularly repeated to give every employee the
chance to attend to these sessions (Interview with Geert Dusar, 22nd june
2007).
o The top management personally explained the progress of the recovery
plan "Target 2007" to all employees (BVB, 2007, online document).
However, to reach an “open and clear communication” some points still need to
be improved. The bottom-up communication is one focal point. Employees
complain that the management sometimes takes over their ideas without
acknowledging them. Employees also would like to get more compliments and
less criticism. The information flow between different departments is also open for
improvement (Interview with Geert Dusar, 22nd june 2007).
3. Concern for health, hygiene, safety and the environment
Tessenderlo Group‟s activities depend on a sound policy relating to health,
hygiene, safety and the environment. This is the common responsibility of all staff
members. Initiatives will be taken to protect environment and to promote health
and safety in the workplace. Sound technology and research will be used to
ensure that the products are as qualitative as possible (Tessenderlo Group, s.d.
(e), online document).
The various initiatives aimed at the local community and to preserve the
environment are an illustration of the importance of this value for the company.
These initiatives are further described in paragraph 1.9.
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4. Respect and responsibility for resources entrusted to the employee
In order to achieve productivity, Tessenderlo Group provides all its employees
with the resources needed to properly perform their tasks. Each employee is
responsible for using these resources with care and attention. Thus, misuse of
these resources is unacceptable (Tessenderlo Group, s.d. (e), online document).
5. Respect for and compliance with legislation
“Tessenderlo Group is firmly committed to compliance with all statutory
requirements and undertakes its business activities with due integrity.” All
employees must comply with relevant legislation, rules and regulations. The
company only deals with third parties that comply with the legislation
applicable to them (Tessenderlo Group, s.d. (e), online document).
6. Prevention of conflicts of interest
7. Handling confidential information carefully
8. A positive attitude
1.5 Presentation of the product range
Tessenderlo Group fabricates a wide range of products that have an even wider
range of applications. In every area of daily life, one can find products of
Tessenderlo Group, although many consumers might not be aware of this.
Hence, Tessenderlo Group‟s tagline „It‟s all about chemistry‟.
To give a transparent overview of Tessenderlo Group‟s most important products, I
will divide them according to the business group or business unit the products are
produced by. I will mostly treat these products for which Tessenderlo Group holds
an important place in the world market. These products are summed up in the
following table.
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Chemicals
Inorganics
Liquid Sulphur Fertilizer 1st place worldwide
Hydrochloric Acid 1st place worldwide
Potassium sulphate 2nd place worldwide
Feed phosphates 2nd place worldwide, 1st
place in Europe
Pvc/Chlor-alkali
Sodium Hydrosulphide 1st place worldwide
Caustic Potash 1st place in Europe
Pvc 6th place in Europe
Plastics converting
Plastic Pipe Systems 1st place in Benelux
Compounds 4th place in Europe
Specialities
Fine Chemicals
Benzyl Chloride 1st place worldwide
Benzyl Acetate 1st place worldwide
Benzyl Alcohol 1st place worldwide
Alpha-Hexylcinnamaldehyde 1st place worldwide
Phenylacetic acid 1st place worldwide
Triacetin 2nd place worldwide
Glycine 1st place in Europe
Gelatin 3rd place worldwide
TABLE 1: MARKET POSTION OF PRODUCTS
(SOURCE: TESSENDERLO GROUP, 2007C: X).
1.5.1 CHEMICALS
The Chemicals business group consists of two business units: inorganics and
pvc/chlor-alkali. Although the business group produces a wide variety of
products, the production process is integrated as much as possible, so that the
end products and by-products can be valorised internally. This way the business
group creates maximum added value (Tessenderlo Group, 2007b: 20).
o Inorganics
The inorganics business unit is the world‟s biggest producer of liquid sulphur
fertilizers and hydrochloric acid. The former product is mainly used in the United
States for large-scale crops, tree and vegetable nursery. The latter product is a
by-product of the production of sulphates and is internally valorised via the
production of phosphates and vcm. It is also widely used for pickling steel sheets,
for the production of gelatine and for waste water treatment.
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The phosphates are mainly used in the animal feed industry as feed phosphates.
Potassium sulphate is another important product and is used as a fertilizer.
o Pvc/chlor-alkali
This business unit produces polyvinyl chloride or pvc. The main raw material for
the production of pvc is vcm (vinyl chloride monomer), which is made out of
chlorine or hydrochloric acid and ethylene. The production of vcm and the
eventual polymerisation to pvc take place in different facilities of Tessenderlo
Group. Pvc is one of the most versatile plastic resins in the world. It can be used
for a wide variety of applications such as plastic pipe systems, window and door
profiles, films and sheathings for cables and wires.
Next to vcm and pvc, this business unit also produces a wide range of electrolysis
products. The most important products in terms of market share are Sodium
Hydrosulphide and Caustic Potash. Sodium Hydrosulphide is used in the mining
and paper industry, for leather tanning, for hair removal, for textile dying, for
photography and for chemical processing. Caustic Potash has applications in
the production of detergents, fertilizers, insecticides and herbicides, pigments,
batteries, bio-diesel and in the photographic, pharmaceutical and rubber
industry (Tessenderlo Group, s.d. (f), online document; Tessenderlo Group, 2007b:
20-26 and Tessenderlo Group, 2007c: x).
1.5.2 PLASTICS CONVERTING
This business group comprises three business units, namely profiles, plastic pipe
systems and compounds.
o Profiles
The Profiles business unit manufactures pvc-profiles for windows, doors, fences
and verandas, façade cladding and industrial applications.
o Plastic Pipe Systems
The Plastic Pipe System business unit produces pipe systems in polyvinyl chloride
(pvc), polypropylene (pp) and polyethylene (pe) which are used in the building
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industry (pipes for sewage and rainwater discharge), in the public works (ducts
for drinking water, gas and telecom), in industry and in agriculture.
o Compounds
The Compounds business unit makes ready-to-use mixtures made of pvc or
thermoplastic elastomers. These are used for electrical cables, shoe soles and in
the car industry (airbag covers are made of these mixtures). Tessenderlo Group
offers a special product line called Marvyflo® that meets the requirements of the
automotive industry. Nearly one in four European cars has a dashboard made of
Marvyflo® (Tessenderlo Group, s.d. (f), online document; Tessenderlo Group,
2007b: 30-36; Tessenderlo Group, 2007c: x and Tessenderlo Group, 2007a: x).
1.5.3 SPECIALITIES
This business group has three business units: fine chemicals, gelatin and natural
derivatives.
o Fine Chemicals
Fine chemicals has a leading position in the field of organic chlorine derivatives
such as Benzyl Chloride, Benzyl Acetate, Benzyl Alcohol, Alpha-
Hexylcinnamaldehyde (HCA), Phenylacetic acid and Triacetin.
Benzyl chloride is used, inter alia, as a pharmaceutical intermediate and for the
production of pesticides. Benzyl Acetate is the main component of gardenia
and jasmine oils. It is one of the most important flavour and fragrance chemicals
in terms of volume. Benzyl Alcohol is used in ballpoint pen inks, car paint and
paint strippers, for photo development and in the pharmaceutical industry. Small
amounts of Benzyl Alcohol can be found in baby oils and suntan lotions, as well
as in perfume, soap and cosmetics. HCA is used to add fragrance to perfumes
and toiletries. Phenylacetic acid is used in the pharmaceutical industry for
producing penicillin and Triacetin can be found in adhesives, textiles and
flavourings.
The Fine Chemicals business unit also produces glycine which you can find in
regular food, pet food, pharmaceuticals and agrochemicals.
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o Gelatin
The gelatin business unit derives gelatine from the bones and skins of pigs and
cattle. Gelatine is mainly used in the food industry (for example in candy, dairy
products, margarine and light products). The product is also used in the
pharmaceutical industry (for instance to make capsules). One can also find
gelatine in film and photographic paper and in shampoo.
o Natural Derivatives
The natural derivatives business unit is active in collecting and processing animal
by-products, mainly in France. These by-products are processed into animal fats
that are used in soaps, pet food and bio-diesel and into meat and bone meal for
waste treatment and pet food. Other activities include the processing of bones
for the production of gelatine and proteins for use in pet food or fertilizers
(Tessenderlo Group, s.d. (f), online document; Tessenderlo Group, 2007b: 40-46
and Tessenderlo Group, 2007c: x).
1.6 Profile of the customer
The notion of 'customer' is quite ambiguous for Tessenderlo Group as the
customers of the company often also are its competitors. With a turnover
amounting to two billion euro, Tessenderlo Group is one of the smaller players in
the chemicals business. Instead of competing with the major companies,
Tessenderlo Group chooses to focus on niche-markets where it can excel and
get a bigger market share for products with high added value. The major
companies often are in need of these niche-products as raw materials for their
own chemicals and therefore call on Tessenderlo Group.
Tessenderlo Group is merely active on the business-to-business market. All of its
products are made to be used by other companies such as chemical and
pharmaceutical companies, farmers, carpenters, etc. A business-to-consumer
client can buy a plastic pipe at one of the depots of Wymar, but the envisaged
target group of these pipes is the building industry (Interview with Geert Dusar,
22nd june 2007).
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Distribution of the revenue of 2006 per consumption market
46%
24%
20%
7% 3%
Building Industry &
Public Works
Industry
Fertilisers & Animal
Nutrition
Health & Hygiene
Household
FIGURE 3: DISTRIBUTION OF THE REVENUE OF 2006 PER CONSUMPTION MARKET
(SOURCE: TESSENDERLO GROUP, 2007B: 3).
This graph shows that the building industry is the biggest consuming market for
Tessenderlo Group in terms of revenue. The health and hygiene companies and
the manufacturers of households products are Tessenderlo Group's smallest
groups of customers in terms of revenue.
Distribution of the revenue of 2006 per country of
destination
19%
16%
9%9%7%
4%
11%
6%
10%9%
France
Great Britain
Germany
The Netherlands
Belgium
Italy
USA
Other European countries
Other countries
Other EU countries
FIGURE 4: DISTRIBUTION OF THE REVENUE OF 2006 PER COUNTRY OF DESTINATION
(SOURCE: TESSENDERLO GROUP, 2007B: 3).
This graph indicates that Tessenderlo Group's biggest customers (in terms of
revenue) are French and British.
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1.7 Overview of the primary competitors
In what follows I will give an overview of some of the main competitors of
Tessenderlo Group. It is not easy to list the competitors. I was told that even within
the company few people have a complete overview of the competition. This is
easy to understand as competitors differ according to the different business
groups or even according to the individual products. The list I provide below is
based on the interview I had with Mrs Dusar. It is important to note that the list
should not be considered exhaustive; it solely introduces the biggest, most
obvious competitors, namely Bayer, BASF, Monsanto, Rhodia, Lonza, Solvay and
DSM. It is also important to note that these competitors can be clients of
Tessenderlo Group just as well.
1.7.1 BAYER AG
Bayer AG is a German group with headquarters in Leverkusen. The company
consists of three subgroups – Bayer HealthCare AG, Bayer CropScience AG and
Bayer MaterialScience AG – which operate independently, but are led by the
holding company.
Bayer HealthCare manufactures products for prevention, diagnosis and cure of
diseases for both people and animals. Bayer CropScience makes products for
crop protection and non-agricultural pest control. This subgroup is also active in
the sector of seeds and genetically optimized properties. Bayer MaterialScience
produces high-performance materials such as polymers (polycarbonates and
polyurethanes) and materials for coatings, adhesives, insulating materials and
sealants.
Bayer is present in its home market Europe, in North and South America, in the
Middle East, in Africa and in the Asia-Pacific region, which is the most important
future market.
In 2006 the company reached sales of 28,956 million euro and made a profit of
13,681 million euro. Bayer employs 105,100 people worldwide (Bayer AG, 2007a,
online document; Bayer AG, 2007b, online document and Bayer AG, 2007c,
online document).
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1.7.2 BASF AG
BASF AG comprises five segments: Chemicals, Plastics, Performance Products,
Agricultural Products & Nutrition and Oil & Gas.
Chemicals offers a wide range of chemical products such as inorganics,
petrochemicals, specialities and plasticizers. These chemicals are mostly used in
the pharmaceutical industry, construction, the textile industry and the
automotive industry. Plastics produces polystyrene, polyamide intermediates and
polyamide and polyurethane.
Performance Products provides amongst others raw materials for detergents,
textile chemicals, chemicals for leather treatment, monomers, coatings and
paper chemicals. Agricultural Products & Nutrition provides herbicides,
insecticides, fungicides, vitamins, pharmaceutical ingredients, cosmetic
ingredients and flavour and fragrance chemicals to the farming, food
processing, pharmaceuticals, animal and human nutrition and personal care
industries. Oil & Gas produces crude oil and natural gas.
The headquarters of BASF are situated in Ludwigshafen (Germany), but BASF has
production and sales facilities in all regions. North America, South America and
Asia are becoming increasingly important for BASF. In 2006 the sales reached
52,610 million euro, while the profit amounted to more than 14,912 million euro.
BASF counts about 95,000 employees worldwide (BASF AG, 2007, online
document; BASF AG, s.d. (a), online document; BASF AG, s.d. (b), online
document; BASF AG, s.d. (c), online document; BASF AG, s.d. (d), online
document; BASF AG, s.d. (e), online document and BASF AG, s.d. (f), online
document).
1.7.3 MONSANTO
The structure of Monsanto consists of two segments: Seeds & Genomics and
Agricultural Productivity.
Seeds & Genomics comprises the production of seeds for large-acre crops like
corn, cotton or oilseeds and small-acre crops like vegetables, the supply in in-
the-seed trait technologies and genetic technology platforms. Agricultural
productivity consists of crop protection products, herbicides and animal
agricultural businesses.
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Monsanto‟s headquarters are situated in St. Louis (US). The company has facilities
in 61 countries and employs 17,000 employees. In 2006 the sales amounted to
7,344 million dollar and the company achieved a profit of 3.55 billion dollars
(Monsanto, 2007, online document; Monsanto, s.d. (a), online document and
Monsanto, s.d. (b), online document).
1.7.4 RHODIA
Rhodia consists of seven enterprises, comprised in three clusters: Performance
Materials, Functional Chemicals and Organics & Services.
The Performance Materials cluster supplies cellulose acetate fibre, which is used
in the production of cigarettes. This cluster also produces polyamide,
engineering plastics and high-strength fibres and filaments.
The Functional Chemicals cluster incorporates the surfactants, phosphorus
derivatives, natural polymers and specialty polymers and monomers produced
by Rhodia. These products are used in the cosmetics, detergent, metal
treatment, oilfield services and agrochemical industries, as well as in the
treatment of water and of textiles. The Silica activities of the company are also a
part of this cluster.
The Organics & Services cluster specializes in regenerating spent sulphuric acid
and producing sulphuric acids and sulphur derivatives. The cluster also produces
diphenols and derivatives for flavour and fragrance applications and
isocyanates for the industrial paint markets. It also focuses on salicylates (aspirin),
fluorinated compounds and derivatives for catalysis and TDI (toluene
diisocyanate). This cluster is also dedicated to the reduction of greenhouse
gases.
Rhodia is a French company, headquartered in Courbevoie. The company is a
worldwide player with sites in Europe (its most important market in terms of sales),
the Asia-Pacific region, North America and Latin America. The company has a
workforce of 16, 000 employees. In 2006 the sales amounted to 4,810 million euro
and the company made a profit of 62 million euro (Rhodia, 2007, online
document; Rhodia, s.d. (a), online document; Rhodia, s.d. (b), online document
and Rhodia, s.d. (c), online document).
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1.7.5 LONZA
The Swiss company Lonza, with headquarters in Basel, consists of two divisions:
Exclusive Synthesis & Biopharmaceuticals and Organic Fine & Performance
Chemicals.
The Exclusive Synthesis & Biopharmaceuticals division focuses on chemical
synthesis and microbial fermentation and is a manufacturer of chemical
ingredients for the pharmaceutical industry. This division also specializes in
microbial fermentation and mammalian cell culture.
The Organic Fine & Performance Chemicals division produces chemicals which
are used in nutrition, hygiene, personal care, water treatment, wood
preservation and selected industrial markets.
In 2006 Lonza‟s sales came to 2,914 million CHF and the profit amounted to 85
million CHF. The company has a workforce of 6,146 employees, working in
Europe, Australia, Asia and America (Lonza, 2007, online document and Lonza,
s.d., online document).
1.7.6 SOLVAY
Solvay is a Belgian company, headquartered in Brussels and active in three main
sectors: Pharmaceuticals, Chemicals and Plastics.
Solvay is, with its Pharmaceutical division, one of the leading pharmaceutical
companies worldwide. The Chemicals division consists of four major clusters: the
Mineral cluster (built around soda ash and advanced functional minerals), the
Electrochemicals and Fluorinated Products cluster, the Oxygen clusters (with
hydrogen peroxide, detergents and caprolactones) and the Organic cluster
(molecular solutions). The Plastics division focuses on polymers and vinyls (pvc
resins) and markets finished plastic products such as pipes, fitting systems, fuel
systems and films.
Sovay is present in Europe, Russia, the Americas and the Asia-Pacific region and
its sales added up to 9,399 million euro in 2006. The company has 29,258
employees worldwide (Solvay, 2007, online document; Solvay, s.d. (a), online
document; Solvay, s.d. (b), online document and Solvay, s.d. (c), online
document).
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1.7.7 DSM
The activities of DSM are divided into four clusters – Nutrition, Pharma,
Performance Materials and Industrial Chemicals – which are in turn divided into
business groups.
The Nutrition cluster comprises DSM Nutritional Products, DSM Food Specialties
and DSM Special Products. DSM Nutritional Products supplies nutritional
ingredients such as vitamins, anti-oxidants, pigments and premixes. DSM Food
Specialties supplies ingredients for the food industry such as flavourings and
flavour enhancers. DSM Special Products produces benzoic acid, sodium
benzoate, benzaldehyde and benzyl alcohol.
The Pharma cluster consists of the business groups DSM Pharmaceutical Products
and DSM Anti-Infectives, which supply ingredients to the pharmaceutical
industry.
The Performance Materials cluster includes the business groups DSM Engineering
Plastics, DSM Resins and DSM Elastomers. The products these business groups
produce are used in a variety of markets such as the automotive industry, the
aviation industry, the electrics & electronics industry, the sports and leisure
industry, the coatings industry and the construction industry. DSM Engineering
produces polyamides, polycarbonate, polyethylene and extrudable adhesive
resins.
The Industrial Chemicals cluster consists of DSM Fibre Intermediates, DSM
Melamine and DSM Agro. DSM Agro specializes in fertilizers.
DSM has its headquarters in Heerlen (The Netherlands) and operates worldwide
with sites and offices in North, Central and South America, Europe, the Middle
East, the Asia-Pacific region and a small part of Africa. The company has 22,156
employees. Its profit amounted to 547 million euro in 2006, while its sales came to
8,352 million euro (DSM, 2007, online document; DSM, s.d. (a), online document
and DSM, s.d. (b), online document).
Tessenderlo Bayer BASF Monsanto Rhodia Lonza Solvay DSM
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Group4
Origin
Belgium
Germany
Germany
USA
France
Switzerland
Belgium
The
Netherlands
Presence
Europe,
North &
South
America,
Asia
Europe,
North &
South
America,
Middle
East,
Africa,
Asia-
Pacific
region
Europe,
North,
Central &
South
America,
Caribbean,
Asia-
Pacific
region,
Africa
Europe,
North &
South
America,
Asia-
Pacific
region,
Africa
Europe,
Asia-
Pacific
region,
North &
South
America
Europe,
Asia-
Pacific
region,
America
Europe,
Russia,
North &
South
America,
Asia-
Pacific
region
North,
Central &
South
America,
Europe,
Middle East,
Asia-Pacific
region,
Africa
Number of
employees
8,184
105,100
95,000
17,000
16,000
6,146
29,258
22,156
Sales (2006)
2.2 billion
euro
28.9 billion
euro
52.6 billion
euro
7.3 billion
dollar5
4.8 billion
euro
2.9 billion
CHF6
9.3 billion
euro
8.3 billion
euro
Profit/loss
(2006)
-24.3 million
euro
13.6 billion
euro
14.9 billion
euro
3.55 billion
dollar7
62 million
euro
85 million
CHF8
547 million
euro
Competition
with TG’s
activities
Chemicals
Specialities
Chemicals
Plastics
Converting
Specialities
Chemicals
Chemicals
Plastics
Converting
Specialities
Specialities
Chemicals
Plastics
Converting
Chemicals
Plastics
Converting
Specialities
TABLE 2: COMPARISON BETWEEN TESSENDERLO GROUP AND ITS MAINCOMPETITORS
1.8 An outlook on the future
The future of Tessenderlo Group depends on external as well as internal forces. A
first important external factor is the price of raw materials which is likely to stay at
a high level. Sometimes this cost can be calculated in the sales price, but it is not
always possible (for instance when the market is not ready or when clients do not
accept a higher price). Furthermore, it can only be done with a delay because
contracts run for three or six months.
4 Source: Tessenderlo Group, 2007b: 1, 10, 12-13. 5 7.3 billion dollar = approximately 5.3 billion euro. 6 2,914 million CHF = approximately 1.7 billion euro. 7 3.55 billion dollar = approximately 549 million euro. 8 85 million CHF = approximately 51 million euro.
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Other external factors that influence the position of Tessenderlo Group are the
high cyclicality of some markets and the company‟s strong dependency on oil
and energy prices and the dollar (KBC Securities, 2007: 6).
A positive external factor is that the economic cycle is doing well. This has a
positive effect on the figures, which tend to follow the general economic trend.
The 12.5 million euro grant by the Flemish government for Tessenderlo Chemie
and LVM is another positive element (Tessenderlo Group, 2007, online
document).
Internal factors include „Target 2007‟, a recovery plan for the Chemicals business
group, which has been started last year and continues in 2007 en 2008. The aim is
to save 30 million euro this year and 50 million euro next year. The plan was
developed because the results of the Chemicals business group were alarmingly
decreasing in recent years because of a downward trend in productivity and
profitability. This trend can be explained by changes in the market, increased
competition and expensive raw materials. „Target 2007‟ includes a
reorganisation of the Chemicals production sites (for example the Limburg sites)
(Tessenderlo Group, 2006, online document).
Another internal factor is the new strategic plan that was revealed at this year's
general meeting in june. All activities should have a Return On Capital Employed
of 12% by 2012. The business units that do not reach this percentage will be sold.
Moreover, the group needs to move away from commodities and focus on
specialities. Commodities are those products that every chemical company can
manufacture. They are usually inexpensive. This implies that customers become
an uncertain factor: one day they buy the products of Tessenderlo Group, the
next day they switch to the competitors. On top of that, Chinese companies
have entered the commodities market. These companies skim the European
market because they are able to produce the products at a lower price. By
increasing the production of specialities, Tessenderlo Group aims at a more
stable market. Specialities are products for which a company needs certain
specifications or which have a certain degree of purity. This implies that these
products have added value for the customers and that they are less likely to
switch. Furthermore, these products are usually more expensive and require the
manufacturer to be situated closely to the client. For example, a plastic pipe will
not be produced in China and brought over to Europe because transport is too
expensive. That is why it is not likely that the Chinese will enter the European
specialities market. Thus, focussing on specialities offers security for the future.
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Future investments will only serve Plastics Converting, Gelatin and a new unit
called „Second Life for Waste‟. This unit will be created because Tessenderlo
Group has a lot of expertise in taking over by-products from other companies
and turning them into new products that can be resold. Arcelor Mittal, for
example, pays Tessenderlo Group to get rid of its by-products. Tessenderlo Group
uses this by-products to make ferric chloride that is used for water treatment
(Interview with Geert Dusar, 22nd june 2007).
Investments in the production of gelatine will continue because this is an
attractive market with high entry barriers. Plastics converting is another attractive
business, partly thanks to Tessenderlo Group‟s strong distribution network (which
implies that the profit margins stay high) (KBC Securities, 2007: 6).
1.9 Tessenderlo Group as a 'good citizen'
Tessenderlo Group is aware that, as a chemical company, it can be a burden for
the local community and the environment. Environmental care is a big priority for
the company, especially because the Limburg sites are closely situated to the
communities of Tessenderlo and Ham. Therefore, Tessenderlo Group invests more
than is legally required. Mrs Dusar asserts that if the site were situated in the port
of Antwerp, less investments would be done (no more than legally necessary)
(Interview with Geert Dusar, 22nd june 2007). In recent years, Tessenderlo Group
has spent more than 180 million euro on environmental projects (Tessenderlo
Group, s.d. (g), online document). These investments include the following
initiatives:
o Recycling initiatives. For example, Tessenderlo Group has a participation
of 36.6% in EKOL, a Belgian company that recycles mixed domestic plastic
waste into useful products such as sitting benches. Per year, the company
handles the waste of one million citizens (Tessenderlo Group, s.d. (h),
online document).
o The deployment of Best Available Technologies. When new technologies
are developed, which are better for the environment or the employees,
these technologies will be used to replace the older ones (Interview with
Geert Dusar, 22nd june 2007).
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o Recent investment in a new energy-saving membrane electrolysis plant
(ELY III) and an energy-saving chlorination reactor (Tessenderlo Group,
2007, online document).
o Deployment of pipelines for transport of ethylene and salt to reduce the
number of lorry trips between companies (Tessenderlo Group, 2007b: 24
and Tessenderlo Group, 2007, online document).
o Several sites have their own environmental management systems to keep
the environmental impact under control. A number of these systems are
certified under ISO 14001 (Tessenderlo Group, s.d. (l), online document).
o Support of the Responsible Care principles. Responsible Care is a global
voluntary initiative of the chemical industry to continuously improve the
health, safety and environmental performance and to communicate with
stakeholders about products and processes. The commitment is translated
through national programmes into policy principles and guidelines
(Tessenderlo Group, s.d. (m), online document).
The company also works on its social responsibility by taking the following
initiatives:
o Ethical codes that serve as rules of conduct. These rules are also
mentioned in the sales contracts (Interview with Geert Dusar, 22nd june
2007).
o Active co-operations with schools, youngsters, NGO's and other interest
groups. For instance, Tessenderlo Group regularly meets with „Bond Beter
Leefmilieu‟ to listen to its arguments and to work on the issues in question.
The company also sponsors local initiatives. Each year a delegation of the
group's engineers is sent out to tell 14 and 15 year olds about their work,
an initiative that fits into the action plan „Chemistry and Youth‟ of the
Belgian chemical federation essenscia (ex-Fedichem). Tessenderlo Group
also invites primary school pupils from local schools to the Limburg sites to
enhance the children's awareness of the environment (Tessenderlo Group,
s.d. (i), online document).
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o The organization of „Open House‟ events to inform family of employees,
neighbours, suppliers or anyone else about the group's activities
Tessenderlo Group, s.d. (j), online document).
o Maintaining an open dialogue by providing correct information. An
abridged version of the environmental report is distributed to 10,000 local
residents in Limburg. In the UK, Tessenderlo Fine Chemicals organizes a
discussion forum for the local community every six months (Tessenderlo
Group, s.d. (k), online document).
o The organization of client surveys with questions about what the customers
think of Tessenderlo Group's products and its social responsibility (Interview
with Geert Dusar, 22nd june 2007).
o Participation in surveys conducted by SRI (Socially Responsible
Investment). Once the given answers are carefully checked, the
company will be recommended to investors who invest solely in
companies with an SRI-index (Interview with Geert Dusar, 22nd june 2007).
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1.10 Conclusion – SWOT analysis
POSITIVE NEGATIVE
o Implementation of the recovery
plan "Target 2007" will save
money.
o Implementation of a new and
solid strategic plan.
o Focus on leadership in niche
markets of products with high
added value.
o Creation of the 'Second Life for
Waste' unit values Tessenderlo
Groups expertise.
o Further investments in Gelatin
and Plastic Converting, which
are attractive markets.
o High level of integration and
valorisation of by-products.
o Continuous investment in
environment-friendly and
energy-saving technologies.
o Economic conjuncture is doing
well.
o 12.5 million euro grant of the
Flemish government.
o Price of raw materials is likely to
stay high.
o Strong dependency on oil and
energy prices and the dollar.
o Influence of active
environmental interest groups.
o Strong competition of Asian
companies.
o Focus on the unstable
commodities market (will change
in the future).
o Tessenderlo Group is active in
some highly cyclical markets.
INTE
RN
AL
EX
TER
NA
L
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Chapter 2 How to enliven and
communicate values: A theoretical
framework
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During my traineeship I spent a considerable amount of time working on an
advice memo concerning the communication and enlivenment of values. Mrs
Dusar told me that I should step into the role of a communications consultant
and give advice on how to communicate values internally. In fact, she told me
that “just communicating” them in the strict sense was not enough. The focus
needed to be on really making the values live among the employees. This task
was linked to the brand new set of values the new management of the
Chemicals business group was (and perhaps still is) working on. A more detailed
description of this task can be found in chapter 3, paragraph 3.2.1.3.
I will start this framework by giving a thorough definition of values and by linking
the notion to other phenomena. I will also deal with some trends that influence
the growing attention given to values. Then, I will focus on how to communicate
values to employees and how employees really can get involved in this process.
Here and there, I will lace the theory with examples I picked up during my
traineeship.
2.1 What are values exactly? A number of definitions
2.1.1 VALUES
To get a clear view of the notion of values, I provide an overview of different
definitions I encountered in literature.
DeVito sees values as "an organizing system of attitudes", "a cluster of favourable
attitudes" and "guidelines for developing and forming attitudes". He not only links
values to attitudes, he also defines values as "guidelines for behaviour" (DeVito
(1976) in Shockley-Zalabak, 1999: 425). Johannesen describes values as
"Conceptions of The Good or The Desirable that motivate human behaviour and
that function as criteria in our making of choices and judgement" (Johannesen
(1983) in Shockley-Zalabak, 1999: 425). Hoogervorst et al., in turn, define
organizational culture – a notion that is very much tied with values – as a
phenomenon that serves as a guideline for behaviour (Hoogervorst et al., 1992:
2.7.4/5).
These definitions have one element in common: they all link values to behaviour.
Values are those conceptions that guide humans in how they act, inside or
outside the context of an organization.
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The notion of values is often closely linked with the notion of organizational
culture or corporate culture. Deal and Kennedy argue that values are "the
bedrock of any corporate culture" (Deal and Kennedy (1982) in Shockley-
Zalabak, 1999: 426). According to Drucker, the culture of an organization is "a
function of shared values" (Drucker (1988) in Posner and Schmidt, 1992: 81) and
Shockley-Zalabak sees organizational culture stem from the values that members
of that particular organization hold in common (Shockley-Zalabak, 1999: 426).
2.1.2 ORGANIZATIONAL CULTURE
What is organizational or corporate culture? Zijderveld derives his definition of
corporate culture from the sociological view on 'common' culture. Culture
involves the ways a group or social collectivity thinks, feels and acts. These ways
are embedded in traditions that bridge generations, are taught by
organizational members and are internalised. The patterns of behaviour that are
taught are composed of values and norms (Zijderveld, 1990: 1.4-4).
Corporate culture, then, is ways of thinking, feeling and acting that are typical
for a particular company. These patterns of behaviour are transferred onto new
members and provide the company with a style of behaviour that is easily
recognizable. The behavioural patterns are valuable, normative and meaningful.
Thus, corporate culture can also be described as a system of values, norms and
meanings that is typical for a particular company (Zijderveld, 1990: 1.4-5).
Zijderveld sees corporate culture as a steady, time-crossing phenomenon, a
vision he shares with Hoogervorst et al. who also define organizational culture as
a relatively stable notion that remains constant, even when there is a shift among
the organizational members (Hoogervorst et al., 1992: 2.7.4/4).
In reality a company does not consist of one single culture, but of multiple,
overlapping groups with each their own typical culture (Zijderveld, 1990: 1.4-5). In
an international company, each country will bring typical local elements into the
company9. To ensure the unity of the company, it is important to hold on to a
shared, overarching corporate culture that serves as a base for the different
subcultures (Zijderveld, 1990: 1.4-5). Thus, Zijderveld believes that general, all
encompassing values can exist, an issue that will be discussed later on.
9 The notion of internationalization will be treated in paragraph 2.4.1.
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2.1.3 CORE VALUES
Core values is another frequently used notion. Collins and Porras define core
values as "the essential and enduring tenets of an organization. [It is] a small set
of timeless guiding principles. […] [It is] the essence of their being. […] [Core
values are] so fundamental and deeply held that they will change seldom if
ever". It is important to note that, according to these authors, core values require
no external justification at all (Collns and Porras, 1996: 66). Thus, core values can
never be the answer to market requirements, while 'regular' values are often
adopted to this end10. There is no universal set of core values. Each company
should decide for itself what values it regards as core. Only a small number of
values can truly be considered core values (no more than three to five). Thus, a
company can find values like teamwork or customer service important and work
on these values, without them being core values. Core values are easily
confused with operating practises, strategies or cultural norms (Collins and
Porras, 1996: 66) or other types of values. Lencioni cites an anecdote about a
company that adopted „a sense of urgency‟ as a core value. However, none of
its employees made quick decisions, they could even be described as being
complacent. The company chose „a sense of urgency‟ as a core value to
change this and to motivate its employees, while this goes completely against
the definition of core values. Something cannot be named a core value if it does
not even exist in the company (Lencioni, 2002: 114).
Lencioni presents a typology of four types of values:
1. Core values
Core values serve as the "cultural cornerstones" of a company. All actions
undertaken by the company should be performed with the core values in mind,
because core values can never be compromised. Core values often reflect the
ideals of the founders.
2. Aspirational values
Aspirational values are those values that a company presently lacks, but that are
needed in the future (for example, because the market or the context is
changing). A company should think its aspirational values through, in order to
secure the core values.
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3. Permission-to-play values
These are the minimum behavioural and social standards that indicate how the
employee should act. These values are often shared with other companies
especially those in the same industry or region which means that they are not
meant to distinguish the company from its competitors. Integrity, honesty or
customer service are examples of this type of value.
4. Accidental values
Accidental values are not encouraged by the management, but occur
spontaneously. They often reflect the shared interests and personalities of the
employees. These values should be carefully managed because they can lead
to negative outcomes if they prevail. Lencioni gives the example of a company
where the employees mostly were young, hip people. The value of 'hipness'
threatened to become a crucial element in the hiring process, which almost led
to „unhip‟ but solid candidates being overlooked (Lencioni, 2002: 114-115).
2.2 Why do values matter?
Values matter because they appear to have a positive impact internally as well
as externally.
First, the more a person's values match those of the company, the more
committed and motivated the employee will be. His or her work satisfaction will
increase, which makes it likely that the employee will stay faithful to the
company. Thus, value congruence (the similarity between individual and
organizational values) has a positive impact on employee retention, an
important notion in an era where job-hopping has become a common practice
(Shockley-Zalabak, 1999: 429; Balmer, 1999: 29 and Posner and Schmidt, 1992:
81).
Corporate culture can differentiate a company from its competitors, which
renders a competitive advantage in the market for new clients and employees
(Balmer, 1999: 29). Lencioni also agrees that values, besides core values, can
serve as a differentiator (Lencioni, 2002: 114-115). This is important as differences
between products keep getting smaller.
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If values serve as guidelines for the behaviour of employees, this also has an
impact on the way the corporate image of an organization – the way it is
perceived by external public groups and target groups (Floor and Van Raaij,
2002: 530 and Borremans, 1992: 3.1.3/1). These external actors judge the
company according to how the employees and the organization itself
communicate with them and how they behave towards them. This implies that
those responsible for external communication cannot ignore the internal
characteristics of the organization. If a company wants to send out a certain
message to the outside public, it needs to communicate with the employees first
and make sure that the message does not clash with the corporate culture
(Borremans, 1992: 3.1.3/1).
We can conclude that values can be a real asset to a company. Lencioni,
however, claims that values should be handled with care because they can
easily become destructive. Many values statements are meaningless, hollow
words. Sometimes they are even plain dishonest. The values of Enron –
communication, respect, integrity and excellence – are a typical example of
this. The danger with empty values statements is that they lead to cynical,
dispirited employees, alienated customers and chip away at the credibility of the
managers. Creating real and honest values statements is often a though
process, because some employees may feel like outcasts, because values limit a
company's strategic and operational freedom, because they constrain the
employee's behaviour, because they leave executives open to criticism for even
minor violations and because they demand constant vigilance. Thus, Lencioni
concludes that, if a company is not willing to deal with these complications, it is
better off without a values statement (Lencioni, 2002: 113-114).
Furthermore, he argues that what he calls "motherhood-and-apple-pie"-values,
such as integrity, quality, innovation, customer service and teamwork, that
appear in innumerable values statements are as good as meaningless because
they provide no outline for employee behaviour and they do nothing to
separate a company from its competitors. It is better to embrace surprising
values, that sometimes even may be frowned upon. Intel, for example, stimulates
its employees to take risks, to challenge the status quo and to engage in
constructive confrontation, such as verbal jousting (Lencioni, 2002: 115).
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2.3 Are values changeable?
Deal and Kennedy argue that shaping and enhancing values can be a
manager's most important job (Deal and Kennedy (1982) in Shockley-Zalabak,
1999: 427). Other authors say that communication processes can serve to
transmit, maintain and change values (Shockley-Zalabak, 1999: 427). Zijderveld
claims that, as the behavioural patterns of which corporate culture consists are
historical and taught, corporate culture can always be changed (because if
something is historically taught, it can always be changed) (Zijderveld, 1990: 1.4-
9). Eisenberg and Riley call this point of view the „corporate culture‟-perspective.
This perspective treats organizational culture, values and practices as something
that can be managed to create better business outcomes. This implies an
'activist' stance towards corporate culture – corporate culture is something that
can be created, shaped and transformed on purpose (Eisenberg and Riley,
2001: 309).
Although various authors agree on the changeability of corporate values and
culture, this issue is still being debated. Eisenberg and Riley claim that many
managers have encountered problems when trying to enact cultural change,
by pushing an ideological stance that collides with the organizational culture
that is already established. This observation has led to the conclusion that culture
cannot be managed. It is merely possible to stimulate and cultivate certain
behavioural patterns. Values should be treated as epiphenomena, that can only
be changed by changing practices, such as communication practices
(Eisenberg and Riley, 2001: 310-311).
2.4 Trends influencing attention for values and corporate culture
It seems that in the last decade, attention for corporate culture and values has
surged. It is likely that this increased attention can be attributed to a changing
business context. Employees have come face-to-face with 24/7 accessibility,
downsizing, technological change, a growing gap between rich and poor and
increasing ecological degradation. These trends have become real ethical
issues for employees. Values and corporate culture can serve as means to deal
with these issues and provide a larger, more meaningful purpose for employees
to turn to. Other external pressures include diminishing differences between
products and companies, internationalization and increasing individualization
which makes loyalty to the organization less self-evident (Driscoll and McKee,
2007: 209 and Zijderveld, 1990: 1.4-9). While corporate culture has always existed
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– in the seventies and eighties it was called corporate climate and often pushed
aside by attention for corporate structures and processes – these trends have
shoved the notion to the front stage in full force (Zijderveld, 1990: 1.4-11). In the
following paragraphs I will dig deeper into some of the aforementioned trends
and present some other influencing factors.
2.4.1 INTERNATIONALIZATION
It is likely that differences in values between and within organizations will only
increase as the workforce keeps on diversifying and internationalization
continues (Shockley-Zalabak, 1999: 428). There is a extensive body of research on
the influence of local, national values on the operation practices in companies.
Hofstede's study is probably the most cited one. Hofstede argues that culture is
imported in organizations through national, regional and ethnic characteristics of
the employees. Thus, nationality is deemed more influential than the power of an
organization to influence the behaviour of its employees (Eisenberg and Riley,
2001: 304). Hofstede came to this conclusion after performing a study on work-
related values with more than 116,000 IBM employees in 50 countries. He
identified four dimensions that vary according to the culture, namely power
distance, uncertainty avoidance, masculinity and individualism. Hofstede links
values to communication (Stohl, 2001: 343). For example, when working in or with
high power distance countries, one should respect the authority structure and
the formal hierarchy. In low power distance countries, the organizations are less
formally structured and open communication across the social system is more
respected (Hofstede (1984) in Stohl, 2001: 343). Thus, it is likely that, when an
international company formulates a values statement embedded in the culture
of the country of origin, these values will clash with those of the subsidiaries.
Tessenderlo Group‟s „open communication‟ value may be adapted to the
central European countries the company originally targeted, but it might not
correspond to the customs of China – generally considered as a high power
distance country – where the company recently opened a subsidiary.
Earlier, it became clear that value congruence11 is important for the functioning
of an organization. With Hofstede's study in mind, one can wonder whether
internationalization of companies is a threat to this notion and thus to wellbeing
of companies. Will certain groups not be able to commit to the values and thus
11 Value congruence: similarity between individual and organizational values (Shockley-
Zalabak, 1999: 429).
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hinder the company? These problems would occur if a company attempts to
seize all employees in one, all encompassing monolithic culture. It is clear that
this is undesirable. One should create a multicultural company in which equally
valued behavioural alternatives are proposed (Cox (1993) in Shockley-Zalabak,
1999: 429).
Donaldson agrees that there are considerable value differences between
cultures, but he also observes that "seemingly divergent values converge at key
points" (Donaldson, 1996: 53). Furthermore, he argues that "cultural relativism is
morally blind. There are fundamental values that cross cultures and companies
must uphold them" (Donaldson (1996) in Shesadri, 1998: 227). The author
distinguishes three fundamental and universal values that "express attitudes
about what it means to be human". These values are „respect for human dignity‟
(people cannot treat each other as tools), „respect for basic rights‟ (people
should be treated with respect for their basic rights) and „good citizenship‟
(together, people should help institutions that are crucial for the community).
According to Donaldson, these values should be used as a starting point for
formulating and evaluating standards for ethical behaviour at the headquarters
as well as at the international subsidiaries. Once these core human values are
translated into core business values they serve as guiding principles, even if they
do not stroke with the norms and laws of the 'host countries'. However, this does
not imply that the subsidiaries should just accept the values of the headquarters
and shoo away from their own values. Individual judgement is indispensable and
should be acknowledged. Thus, a company should find the balance between
providing clear direction and allowing personal judgement (Donaldson, 1996: 53-
54, 56).
According to Collins and Porras, the only way to recognize mutual values
between different cultures is to work from the individual towards the
organization. The individuals formulating the values should answer questions like
"What core values do I personally bring to work?", "If I awoke tomorrow morning
with enough money to retire for the rest of my life, would I continue to live those
core values?", "Would I want to hold those core values, even if at some point one
or more of them became a competitive disadvantage?" (Collins and Porras,
1996: 68). These questions give an indication about which values are important
to an individual and about how deeply rooted they are. However, I do not see
how these questions will help in an international context, since the personal
values may also be somewhat culturally biased.
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2.4.2 CORPORATE CITIZENSHIP – CORPORATE SOCIAL RESPONSIBILITY (CSR)
The increased attention that corporate citizenship and CSR currently enjoy, leads
to companies being more aware of their values and giving more attention to
enacting values and involving employees.
Corporate citizenship and CSR both essentially imply that companies identify
and accept their obligations to society or, more specifically, to their stakeholders.
This allows the company to improve its reputation (Smith, 2003: 53 and Bishop
and Andrews, 1999: 16). Indeed, enhancing the corporate reputation seems to
be the major aim behind corporate citizenship or CSR-initiatives (Macleod, 2001:
8-9 and Bishop and Andrews, 1999: 17). Reputations suffer the impact of several
trends. First, as markets become more and more competitive, a good reputation
becomes a crucial factor in the decision making process of customers.
Companies must appear trustworthy and corporate citizenship or CSR are great
tools to communicate this to the customers (Bishop and Andrews, 1999: 17). A
second factor of influence is the success of movements such as consumerism
and environmental, anti-capitalist and anti-globalization groups which keep a
close eye on the impact of business on society. These elements, combined with
the emergence of a more business-literate society, the extension of
shareholding, skilled labour shortages and the ever present media, make having
a sturdy reputation a necessity for survival (Macleod, 2001: 8 and Bishop and
Andrews, 1999: 16). Although the idea of companies carrying social responsibility
is not at all new, the aforementioned elements urge companies to take
responsibility and express it as such (Smith, 2003: 52 and Bishop and Andrews,
1999: 16). Thus, the 'business case' for CSR – which aims to serve the self-interest –
seems to prevail over 'normative CSR' – which aims to 'do good' without other
motives (Smith, 2003: 53). Well executed CSR or corporate citizenship will not only
strengthen the reputation of a company, it will also increase employee
motivation and retention and lead to better issue management because
dialogue and engagement with stakeholders becomes possible (Macleod, 2001:
9).
The adoption of CSR or corporate citizenship programmes is a gradual and long
term process, wherein four elements are vital: (1) the engagement of the
employees, (2) the engagement of the management, (3) a link with the values
of the company and (4) a well-designed communication strategy.
It is important that employees take part in the initiatives. It is a good idea to
choose initiatives in the local community with a direct link to the employees. This
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way the employees will get involved at grass roots level (Bishop and Andrews,
1999: 17, 20 and Wright, 2001: 17). The easiest way to get the employees
enthusiastic is when senior leaders serve as an example. Understanding, support
and engagement from the management is essential. However, it is important
that these leaders are personally motivated and that they take initiative
because they want to, not because of the business advantages that might result
from it. Their engagement must be a reflection of their personal values and the
shared values in the company (Wright, 2001: 17 and Macleod, 2001: 8-9).
Indeed, values are another crucial element. The initiatives should reflect the
corporate values so that the internal corporate culture is communicated to the
external community. If a company claims to do good, the corporate behaviour
should be completely in line with that statement. The organization should
internalize the corporate citizenship within the heart of the corporate culture
(Bishop and Andrews, 1999: 17, 20; Wright, 2001: 17 and Macleod, 2001: 9).
The initiatives should be carefully communicated to a multiplicity of stakeholders.
The company should communicate results to its employees in order to engage
them. They should be aware of the fact that the company is looking for more
than just business results and that the initiatives not only take place on the
corporate level, but that personal initiative and engagement is also essential.
It is a challenge to communicate CSR-initiatives to shareholders, because they
often criticize the usefulness of it in business terms. Therefore, a company should
present them with a quantifiable link between the initiative and commercial
benefits. The beneficiaries of the initiatives could also step into the spotlight to
create third party credibility. Boasting, however, should be avoided by all means
(Bishop and Andrews, 1999: 18; Wright, 2001: 17 and Macleod, 2001: 8-9).
2.4.3 GROWING IMPORTANCE OF THE ‘STAKEHOLDER’-MODEL
The shift to the „stakeholder‟-model of organizations is another trend that
contributes to the increased attention for values.
"Every organization is linked to a complex system of interrelated individuals and
organizations who have a stake in the organization's deeds" (Gronstedt, 1996:
292). Stakeholders are "any group or individual who can affect, or is affected, by
the achievement of a corporation's purpose (Freeman (1984) in Gronstedt, 1996:
292). Stakeholders include the government, financial parties, scholars and
industry opinion leaders, the media, employees, interest groups, the community,
distributors and suppliers, trade and professional organizations and competitors.
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Because of their interdependency, the action or inaction of one stakeholder can
affect the other stakeholders and change their behaviour, attitudes or opinions
(Gronstedt, 1996: 292, 294).
For a chemical company such as Tessenderlo Group the media, communities
and interest groups such as environmental organizations are powerful
stakeholders. When they condemn the company, this may have a negative
influence on the willingness of investors to invest in Tessenderlo Group.
Stakeholder groups are not only interrelated, but can also be overlapping
(Gronstedt, 1996: 294). For Tessenderlo Group, this is the case with its competitors,
which sometimes also are customers of the company.
The influence these stakeholders exert becomes more and more important as
competition gets tougher, employee retention becomes more difficult and the
media are ever present and operate on a global scale. The stakeholders will not
just digest the information the company presents them with. A company must
really interact with these parties and build relationships with them. This interaction
process can be conceived as a negotiation process that leads to mutual goal
achievement. The negotiation process takes place via well planned
communication, wherein stakeholders receive and send information (Gronstedt,
1996: 295, 302 and Deetz, 2001: 39).
Tessenderlo Group keeps up with its stakeholders in various ways. An important
practice is collecting clippings and performing research. During my traineeship I
had to look up information about a journalist who takes part in remarkable
protest actions that often are picked up by the media. The company regularly
talks with interest groups such as „Bond Beter Leefmilieu‟ and tries to work on their
remarks. The group also performs customer surveys, to gauge the customer's
opinions about the products and about the company's social responsibility – a
value Tessenderlo Group finds extremely important. On „Open House‟ days
suppliers, neighbours of the sites, family and friends of employees and other
stakeholders are invited to the company to get to know each other better.
Values can take a fundamental role in the aforementioned communication and
interaction process. As guidelines for behaviour they determine the way the
company and its employees present themselves in the interaction process. As
socially responsible investing becomes more common, whether a company has
appealing values and acts on them, becomes vital for attracting investors. The
same goes for whether or not interest groups will voice their concerns.
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Deetz remarks that companies should not just use stakeholder dialogue as a
strategic tool to increase loyalty and commitment and decrease resistance, but
as a way of collecting real input. According to this author, too often the number
of forums for stakeholder representation and debate increases, while stakeholder
voice remains on the same level (Deetz, 2001: 39). Following this view,
stakeholders should be heard before formulating the values and should be able
to participate in the process of writing them down.
2.5 How to communicate and enliven values?
In the previous paragraphs it was made clear that values serve as guidelines for
behaviour and that they should be treated as epiphenomena. This means that in
order to change values, practices should be altered. Communication practices
form a crucial factor that needs to be thought about. D'Aprix and Tyler formulate
the importance of communication in conveying values and changing culture as
follows:
"A communication strategy designed to create culture change has to
make communication happen – more frequently and more effectively. To
change culture, the communication strategy has to be first and foremost
about the process of communicating. Listening, building understanding,
creating new insights, exploring implications, reaching agreements,
getting feedback, raising contentious issues, resolving disagreements,
recognizing contribution" (D'Aprix and Tyler, 2006: 23).
2.5.1 FORMULATING VALUES
The majority of communication specialists advices to involve the employees in
the value formulating process. Open questioned surveys, focus groups and even
internet forums or blogs are often used tools to determine which values
employees attribute importance to. IBM, for example, has developed an
interactive forum where employees can discuss question such as "Do company
values exist?", "If so, what is involved in establishing them?", "Most companies
today have values statements. But what would a company look and act like that
truly lived its beliefs?" and "What values are essential to what IBM needs to
become?" (IBM, s.d., online). Coca-Cola asked its 55,000 to give their vision on
the values of the company via the corporate blog. The employees were asked
to tell how they feel about the values presented by the top management. The
aim of the initiative was to stimulate storytelling and to discover how the
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employees understand the values presented (Ruitenbeek, 2006, online). Krais
and Bloomfield are advocates of „Have your say‟-sessions where groups of 15
employees get the chance to discuss specific issues and give feedback to the
management on things they are concerned about. These issues are an impetus
to start a discussion about what should be the new values and to encourage
input and building consensus (Krais and Bloomfield, 2005: 27).
Still, some authors remain rather suspicious vis-à-vis these initiatives. Lencioni
claims that a values-effort has nothing to do with consensus. It is all about
imposing "a set of fundamental, strategically sound beliefs" on the employees.
Lencioni argues that, since employees are not consulted when it comes to
business strategy, finance and other business issues, they should also be left out
when it comes to formulating values, because it is equally dangerous to involve
them in these decisions (Lencioni, 2002: 116).
Who should be in charge then? The ideal team, according to Lencioni, consists
of the CEO, founders that are still active in the company and a small number of
key employees. This team should focus on an analysis of employees who
embody qualities that the team wants to implement throughout the organization
(Lencioni, 2002: 116). Collins and Porras agree that only a small group of people
should be concerned with expressing values. They suggest the creation of a
"Mars Group" of five to seven people who have "gut level understanding" of
values, credibility among peers and the highest level of competence. These
individuals often are living examples of the values they select (Collins and Porras,
1996: 66, 68).
The new values of the Chemicals business group were formulated by a similar
group. The management team of the Chemicals business group gathered for
two days to answer questions like "Where are we?", "Where do we want to be?"
and to define the values. Thus, the actual values were solely formulated by the
management. These formulations will now be 'translated' in understandable
terms and will be discussed in soundboard groups with employees of all levels
within the Chemicals business group.
Once the values are formulated with or without the input of the employees
they should be actively embedded throughout the company.
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2.5.2 EMBEDDING THE VALUES WITHIN THE ORGANIZATION
The "Living the Brand" model is a widely recognized model to guide managers
when embedding values. It aims to help employees identify with the values and
make them unconsciously behave according to the most important values
(Bishop and Andrews, 1999: 17 and Gehrels et al., 2003: 70). The model consists of
three consecutive stages:
1. Information phase
In this phase the employees get to know the values and what they mean for their
daily work. The management informs the employees about the necessity and
advantages of acting according to the values. Thus, the awareness of the values
is stimulated and their behavioural implications become clearer.
2. Participation phase
The goal of this phase is to operationalize and to personify the values. It is the
employees themselves that add content and shape to the values. This can be
stimulated by re-enacting though situations and by searching answers to
dilemmas and questions of customers. This way it becomes clear how values
present themselves in contacts with customers, colleagues, competitors and so
on.
3. Change phase
In this phase employees consciously act in the spirit of the values. To achieve this,
structures and systems – such as the rewarding system or the controlling system –
can be adapted. Exceptionally the whole organizational system can be
changed (for example, the production and delivery system to better serve the
customer if that is a core value) (Gehrels et al., 2003: 70). Initiatives such as a
yearly performance based bonus pool or monetarily rewards for employees that
embody the values in their work fit this phase (Balmer, 1999: 30-31). Ideally, the
core values should be present in every employee-related process – hiring
processes, performance management, criteria for promotions and rewards,
dismissal policies and personal development programmes – in order to
constantly remind the employees that these values inspire every decision made
(Lencioni, 2002: 117 and Krais and Bloomfield, 2005: 28).
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Throughout these phases, communication should be (1) clear, (2) all
encompassing, (3) repetitive and (4) continuous.
First and foremost, communication should be clear for all employees. One should
strive for simplicity and use unambiguous terms. To ensure that everyone
understands the message and to make it more personal and engaging, the
company can create a visual image that symbolizes the essence of the message
(Speculand, 2006: 5 and Zijderveld, 1990: 1.4-13).
Essentially, employees want to know is what is changing, 'why it is changing' and
what they should do differently (Speculand, 2006: 5). These are three critical
factors for communicating values. First, the „what and why‟-question should be
answered. Employees want to know how the new values statement fits into a
larger context, how the values contribute to a larger goal and what the situation
will be like once this goal is reached. Summing up aspirations in values
statements is not sufficient for a thorough cultural change; employees want to
know why the old culture is no longer viable. If market changes have made the
former values obsolete, managers should not hesitate to elaborate on these
changes. Too often managers believe that employees are not capable of
understanding the market mechanisms, that it is not safe to let them in on this
information or that it will cause unjustified panic. However, this lack of open
communication chips away at the manager's credibility. Furthermore, without
context, the changes in values will appear to be arbitrary, which will have a
negative impact on the employee's commitment (Taylor, 1998: 26 and D‟Aprix
and Tyler, 2006: 23).
Once the „what and why‟-question is handled, the „how‟-question should be
dealt with. The management needs to answer questions such as "How and when
will the new values be implemented?", "How will these new values impact me,
my associates, the company and the customers?", "What will need to change in
the way we do business?", "What will the changes require of the employees?",
"What do I need to do to support the change?", "How do I need to change my
behaviour?" and "How will these new values benefit me personally?". The answer
to these questions must address the specific, personal needs and issues of the
individual in order to increase the chance of the message being internalized. The
values will become less abstract and more relevant to the employees. They will
understand that they are essential to the success of the value project and their
personal involvement and motivation will increase (Taylor, 1998: 27 and D‟Aprix
and Tyler, 2006: 24).
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When embedding values it is important that the information flows throughout the
whole organization, top-down and bottom-up. The central question to an
efficient, effective and functional information process is "Who informs who"?
(Zijderveld, 1990: 1.4-13 and Gehrels et al., 2003: 72). If organizational change
gets stuck within the top layers of the organization it will not be sustained and the
implementation will die prematurely (Taylor, 1998: 28 and Gehrels et al., 2003: 72).
One way to organize an effective information flow is to rely on personal
communication between employees and direct supervisors, line managers,
middle managers and team managers. These managers or supervisors are better
cut out for the job than senior managers, because they are closer to the
employees that need to implement the values. These managers are not
necessarily the best communicators12, but they are "key communicators".
A model that visualizes this communication flow is the „Looping‟-model. The
model is based on dialogues between managers and their employees. By
listening, explaining and giving feedback, information runs throughout the whole
organization down and back up (Taylor, 1998: 28 and Gehrels et al., 2003: 72-73).
The „Looping‟-model is comparable to the process Tessenderlo Group uses to get
the new values across. Recently, the company performed a survey on internal
communication. The aim was to find out whether the top-down and bottom-up
communication functioned well. The information flow between the top
management and the middle managers runs smoothly, but it was unclear
whether the communication from the middle level down was also effective. To
improve this information flow the middle management received a number of
slides with information that needed to be communicated to all employees. Every
middle manager had to prepare these slides in function of what the employees
needed know according to them. Using the middle managers ensures that the
employees will be less (or not) afraid to ask questions or to voice their concerns.
The middle managers can easily pass these concerns to the top management,
so that effective bottom-up communication is ensured.
12 A model that can help these managers to become adequate communicators is the
"Connect"-model. This model focuses on "explaining implications, gauging understanding
and encouraging discussion". It consists of six steps that must be followed when
transmitting information to employees: (1) Create rapport, (2) Share the agenda, (3)
Unpack information, (4) Open discussion, (5) Deal with difficulty and (6) Summarize
feedback (Krais and Bloomfield, 2005: 27).
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FIGURE 5: THE ‘LOOPING’-MODEL FOR COMMUNICATION
(SOURCE: GEHRELS ET AL., 2003: 73).
Another way to permeate the organization with information is using the natural
communication process between peers via „Peer Opinion Leaders‟ (POLs). In this
model, the employee becomes the communicator and the managers solely
take on the role of facilitators of the communication between peers (Taylor,
1998: 28). The innovative character of this model lies in the fact that it does not
limit itself to existing line and other managers (Krais and Bloomfield, 2005: 27). The
POLs become closely involved in the early stages of the value formulating
process so that they become natural advocates of the values proposed.
However, the POLs should not only be involved in the process because of their
influence on their co-workers, but because their opinion is honestly valued
(Taylor,1998: 28).
It is not surprising that both models make use face-to-face communication; it is
the best way to inform employees about values, because human interaction has
the biggest impact on employee motivation, support and commitment (Taylor,
1998: 26; Mellor, 1999: 29 and Pounsford, 2007: 32). Furthermore, it allows
employees to directly ask questions, which lowers the chance of misconceptions
and confusion considerably.
Communicating values once is not enough to embed them properly. The classic
marketing rule that people need to hear a message seven times, in seven
different ways for it to sink in, applies equally well to value communication.
Employees will not absorb and adopt the values unless they have heard them
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several times and from different sources. Therefore, the values should be
repeated at every chance the communication department gets. Poster
campaigns, the organization of a class on culture and values, use of the
intercom, placing the values on the bottom of internal documents are some of
the more tangible ways to grab the employee's attention (Speculand, 2006: 5;
Lencioni, 2002: 117 and Balmer, 1999: 30-31). These means can be used to
complement more 'intangible' ways, such as being a role model by behaving
according to the values or involving the employees in humanitarian work.
After the grand revelation of the values, the intensity tends to diminish. However,
to effectively embed values, they should be kept in the limelight. This can be
achieved by tracking the progress of the implementation and providing
updates, by celebrating successes and reporting on failures or by conducting
surveys to discover which points need to be worked on (Speculand, 2006: 5 and
Krais and Bloomfield, 2005: 29). Organizing focus groups of a small number of
employees to talk about how they perceive the values in their daily work, how
the company complies to the values and where it is going wrong, which values
should be focused on more and so on is another way of keeping the values
alive.
2.5.3 THE MANAGEMENT AS A ROLE MODEL
A good communication strategy is crucial to get values embedded, but equally
crucial is the role model function of the management. Perhaps this function is
even more crucial than the communication strategy, because even perfectly
communicated values will not be internalised by the employees if the
management goes against these values. It will only create cynical employees
that are difficult to motivate and lack identification with the company.
Role-model behaviour and support from the top management are more
important factors in making a values-initiative blossom than codes of conduct,
training or talking about the importance of values. Research has even suggested
that the manager as a role model is the most critical factor. Leaders provide a
natural source of values for their employees and social learning theory has
shown that employees do imitate values stemming from their leaders. Therefore,
employees need to see their leaders and peers adhere to the values in their
everyday work and in the decisions they make (Driscoll and McKee, 2007: 208-
209 and Seligson and Choi, 2006: 2,9).
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The notion of transformational leadership by Burns shows the impact of leaders
'walking the talk' on employee motivation. Burns observed that, when employees
and managers have shared values and goals, they stimulate each other to
reach higher levels of motivation. He considered values and integrity vital
elements in the relationship between employees and leaders (Driscoll and
McKee, 2007: 208 and Hoogervorst et al., 1992: 7.7.4/7).
Employees are usually quick to decide that a leader's decision or behaviour is at
odds with the company values, even when it is not. This judging process is
reinforced by the fact that, over time, employees create their own
interpretations of the values. To avoid being falsely accused of lacking
commitment, employees and managers need to share an understanding of
what the values exactly mean. There is a need for dialogue and concrete
discussion about the values. Managers have to make sure that employees are
not afraid to express their concern when they perceive a faux pas (Edmondson
and Cha, 2002: 18).
Hoogervorst et al. fit the notion of the leader as a role model into a larger
framework they call „implicit communication‟. Employees work in an
organizational context consisting of organizational culture, management
practices and organizational structures and systems. This organizational context
serves as a source of implicit communication, which is often at odds with the
explicit communication. An example of such a inconsistency is when a 'learning'
organization bans all discussion about mistakes (Hoogervorst et al., 1992: 2.7.4/2).
For Tessenderlo Group an inconsistency can be found in the fact that, while
open dialogue is one of the company's values, employees feel that the
managers run away with their ideas and that they are not valued for their input.
Another example is that teams often organize separate meetings about the
same issue without being aware of this. This kind of inefficiency leads to
undecidedness which is at odds with the value of open communication.
2.5.4 CASES
To finish this theoretical framework I have selected some interesting cases of
companies that have developed innovative means or an integrated approach
to keep their values alive.
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1. Nordstrom
Nordstrom, a big American department store chain, communicates its main core
value „Service to the customer above all else‟ in quite innovative ways. New
employees are told stories about the lengths colleagues have gone to provide
excellent customer service and during non-store hours positive and negative
comments from customers are read over the intercom to keep the employees
thinking (Lencioni, 2002: 117 and Collins and Porras, 1996: 68).
2. BDO Stoy Hayward
The accountancy firm BDO Stoy Hayward developed an all encompassing
strategy to communicate its values. The values are integrated in all key HR-
processes (recruitment, induction, feedback and performance management), in
training and development, client feedback and client care programmes. The
values get included on the agenda of company events – from the company's
summer party to partner meetings. Incentive and recognition programmes are
developed to reward employees that outshine value-wise. A small number of
gimmicks – a desk toy and an online card game - was developed to keep the
awareness of the values high. Another remarkable initiative was the
development of the „Values at Work cube‟. The shape of the cube expresses
how every value is equally important. Each value has a colour that returns in
internal communication documents (Newman and Thornbury, 2004: 34-35).
FIGURE 6: BDO STOY HAYWARD ‘VALUES AT WORK CUBE’
(SOURCE: NEWMAN AND THORNBURY, 2004: 34).
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3. TNT
The mail services company TNT allows its employees to volunteer in the
'Schoolfeeding Volunteer Programme'. Every employee can apply to get the
chance to help the United Nations World Food Programme by performing
fieldwork in Nicaragua, Cambodia, The Gambia, Malawi or Tanzania. The
selected candidates are released from their jobs for the duration of the project
and receive their normal salary, plus money for travel and living expenses.
Employees can also donate money to the programme via TNT. Once the
volunteers return home, they are asked to report about their experiences to
motivate friends, family and colleagues to donate money or to join the
programme (TNT, 2007, online document).
4. The Body Shop
At cosmetics company The Body Shop, employees get the chance to
participate in the campaigns of the company, for example by telling passers-by
stories about domestic violence or living with HIV. Employees also get the
opportunity to volunteer during work hours for a charity. In Australia employees
are even required to volunteer at least 16 hours a year. The Body Shop also
organizes values workshops for head office employees and store managers to
make clear that values are part of everything they do (The Body Shop, 2005,
online). These initiatives complement other value-inspired ideas such as buying
ingredients as much as possible in developing countries, manufacturing the
products with natural ingredients and fighting against animal testing (Duncan
and Caywood, 1996: 21).
5. SRA
SRA, an American consultancy firm, shares its values with its employees through
different channels. The COO teaches a class on 'Culture and Values' for every
interested employee. The values statement has a prominent place in the
entrance hall of the headquarters and it is hanging on the walls of the company,
next to framed quotes of costumers and letters of merit. The statement is also
printed at the bottom of internal documents. SRA mentions the values during
hiring negotiations to make sure the candidates will fit in well. Employees that
embody SRA's values are recognized with achievement awards during a yearly
formal banquet. Well-inspired employees are also honoured with monetarily
rewards. Every year, senior managers pledge to uphold the standards. The
company has a partnership with two local schools and employees are
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encouraged to support these schools, for example by volunteering to tutor
children. The company and many employees support charities and working in
the local community is stimulated (Balmer, 1999: 30-31).
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Chapter 3 Thoughts on my
traineeship
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3.1 Organization of the corporate communication department of
Tessenderlo Group13
The corporate communication department consists of five people who are
responsible for the internal and external communication of Tessenderlo Group on
an international level. The communication team is managed by Mrs Geert Dusar,
who reports directly to the CEO. Mrs Dusar is assisted by four persons:
o Mr Michael Vandenbergen, who is responsible for the communication of
the whole group;
o Mrs Kathleen Iwens, who is responsible for the external communication of
the plants in Limburg;
o Mr Luc De Clerck, who is responsible for the internal communication of the
plants in Limburg;
o Mrs Béatrice Maelfeyt, who is the secretary of the department.
The goals of the corporate communication department are (1) supporting the
mission, vision and values of Tessenderlo Group and (2) stimulating the
information flow. The department has developed a wide array of means to
accomplish these goals.
3.1.1 INTERNAL MEANS
Internally, the corporate communication department aims to promote the
feeling of oneness within the group, to increase the knowledge about
Tessenderlo Group among employees and to distribute clear and transparent
information via:
o The creation of a corporate identity;
o Several publications:
'De Week' to shine a light on the news of the week;
„INFO‟, a quarterly magazine made for and by employees;
„ToGether‟, a magazine distributed to all managers;
The 'Facts and Figures'-booklet with basic information about
Tessenderlo Group that is distributed to all employees;
The annual report;
Press releases;
13 Sources: Tessenderlo Group, 2007a: x and interview with Geert Dusar, 22nd june 2007.
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Memo's.
o Electronic means:
TGnet, the Belgian intranet;
FORUM, an extranet for the European employees of the Chemicals
business group. Here, the employees can do suggestions and ask
questions, which will be answered within three days.
o Face-to-face communication: the organization of information sessions
that are continuously repeated to make sure that every employee is
informed.
FIGURE 7: INTERNAL PUBLICATIONS OF TESSENDERLO GROUP
3.1.2 EXTERNAL MEANS
Externally, the communication department aims to promote Tessenderlo Group
and to make its activities and functioning more transparent for outsiders via:
o The maintenance of press relations;
o The maintenance of investor relations;
o The development of corporate publicity;
o The website.
The main challenges for the communication department are (1) stimulating the
information flow between the different departments, business groups and units,
(2) improving the team spirit within the company, (3) increasing face-to-face
communication and (4) encouraging bottom-up communication.
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3.2 My tasks during my traineeship at Tessenderlo Group
During my traineeship Mrs Dusar set me various tasks. Some of these assignments
were quickly finished, others took me several days of work. I will describe these
tasks, provide you with a little background information, explain how I proceeded
and evaluate the tasks.
3.2.1 MAJOR TASKS
3.2.1.1 Manual on project management14
On the first day of my traineeship Mrs Dusar e-mailed me a thirty pages long
manual on „project management‟. She asked me to read the document, to
critically revise it and to make a summary of it. My summary was meant as a
short, handy manual that could be used by any employee that is involved in any
project. Given this large target group, I had to use an unambiguous, simple and
clear language. There was a need for such a manual because at that moment
there was no uniform way of taking on projects. Often, the same issue was
treated in different team meetings without the teams being aware of this. Also,
projects often are cross-departmental which implies that the communication
flow between the departments must be optimal.
I started by reading the existing manual a few times and making notes. The
manual was full of complex English terms and difficult technical procedures
because it was aimed at engineers who are familiar with these things. The
authors distinguished five different phases, ten roles within a project team, three
different meetings and twelve reporting documents. Needless, to say I was quite
confused when I first read the manual. I also had difficulties to make out whether
the terms that were used were specific jargon or common knowledge within the
company. It also was unclear to me which terms I could leave out and which
ones where essential, general notions. Some notions where dispersed across the
manual, so I had to bring them together.
My first summary was still quite long. Then I gradually started crossing out
elements to shorten it. The first draft was revised by Mrs Dusar and she had quite
a lot of remarks. The biggest problem was that I had written a full text, without
using bullet points, which made it hard to go through quickly. Thus, I broke up the
text in shorter paragraphs and used bullet points to make it easily surveyable. I
14 See appendix 1.
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deleted some parts and extended other parts with additional information Mrs
Dusar had given me. Eventually I finished with a 14 pages long manual,
consisting of a short introduction (What is a project? Why and when use project
management?), a description of how to run a project in different stages, some
easy-to-read graphical schemes and a number of documents as illustrations.
I consider this task my most difficult assignment. It was my first project and it was
quite a technical text to wrestle through. Since I had only been at the company
for a couple of days, I was not yet familiar with the structures of the company,
which I felt was necessary to make a tailored summary.
3.2.1.2 Updating the welcoming brochure for new employees15
I was asked to update the existing welcoming brochure for new employees. The
old brochure was written some years ago and certain elements (such as the
distinction between business groups and business units) were not yet mentioned.
I started by adding these elements and changing facts (turnover, number of
employees, etc.) that were no longer up-to-date. I inserted parts of the annual
report because they were concise and to the point. At first, I was not sure
whether I could rewrite other parts, so the first draft ended up being an all but
fluent mix of writing styles. The draft was revised by Mrs Dusar and Mr
Vandenbergen. Mrs Dusar changed the division and sequence of the chapters
and told me that I was allowed to rewrite the whole brochure to make the
writing style more uniform. I rewrote the whole brochure, made organization
charts and inserted the suggestions Mrs Dusar made. Now, the brochure consists
of six chapters: a general chapter about Tessenderlo Group (history, different
departments, safety, strategy and mission and so on), a chapter about the
corporate communication department, three chapters focusing on HR-related
topics (remuneration, working time, etc.) and a chapter with practical
information (addresses and telephone numbers, the first day at work, etc.).
By executing this assignment I noticed how difficult it is to adapt an existing text
written by someone else. The task became much easier once I got to rewrite the
texts and dared changing more. Mrs Dusar gave me enough time to complete
the task and provided me with additional information which was a big help.
Once my task was finished, I handed over the brochure to Mr De Clerck. The
document is not quite finished yet, as some parts still need to be discussed and
the chapters about HR need to be updated by HR-department itself.
15 See appendix 2.
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3.2.1.3 Memo on communication of values16
Approximately four years ago, Tessenderlo Group developed a new set of
values. These values serve as a guideline for the whole group. In the beginning of
2007, the management team of the Chemicals business group was renewed. To
take a fresh start this team formulated a values statement specifically for the
Chemicals business group. The statement is still being revised, so I cannot give an
overview of the new values. Mrs Dusar asked me to take on the role of a
communications consultant and suggest means to get these values across. She
specifically told me that just communicating them in the strict sense of the word
– for example, announcing them at the end of a meeting – was not enough. She
asked me to look for ways to really enliven these values.
I started by writing down my own ideas. I thought it was important that all
employees got to attend the revelation of the values, that the values were
presented face-to-face and that every member of the management team was
behind the values. On the internet I found information and concrete cases to
support my points. I also used the Samsonite example that Ine Mariën told us
about in her guest presentation, because it provides an example of how a
manager can truly live by values.
I divided my memo into four parts, each devoted to one phase in the
development of values. In the first part I wrote about the formulation of the
values. The management of the Chemicals business group had already passed
this stage, but I still wrote about it because, to me, it seems such a crucial phase.
I advised to involve the employees in the formulation because it is a unique
chance to create legitimacy. However, when I wrote my theoretical framework I
noticed that not everyone thinks it is a good idea to involve employees in the
formulation of the values. In the next paragraph I gave some advice on how to
write down values. I thought it was important to use a lively language and to
refer to the employees. Then I moved on to the introduction phase where I
focused on making the values visual and concrete (for example by translating
them to concrete goals, measures or situations). I also shone a light on the
function of the management as a role model, because I really believe that a
values-initiative loses all credibility if the employees notice that not every
member of the management is behind the values or that managers go against
the values. In the last part of my memo I advised to regularly organize talking
16 See appendix 3.
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sessions between employees and the management to get an idea of how the
employees experience the values.
I really enjoyed writing this memo because it allowed me to be creative and
write down my own ideas. Mrs Dusar let me work independently and allowed me
all the time I needed. Once it was finished, she read the memo and gave me
good feedback on it, which I really appreciated.
3.2.1.4 Memo on intranet17
For this assignment I had a meeting with Mrs Dusar and Mr De Clerck about the
new corporate intranet that is going to be installed. The existing intranet – TGnet
– operates solely on Belgian level and has a limited scope. It is primarily used for
document sharing and to announce short messages. In the future this intranet will
be replaced by an international intranet that serves the whole group and is
based on better technology. The communication department – in collaboration
with other departments – had just started to identify the needs. I was asked to
write about what the new intranet could look like, to look at other corporate
intranets to find out which items other companies put on there or how they use it,
to study the structure of those intranets, to do desk research about stages in the
development of an intranet and to look for do's and don'ts. Once finished, the
memo would be used as a manual or guideline that could be helpful when
Tessenderlo Group's subsidiaries were asked for their needs and wishes.
To find the necessary information, I started browsing the internet. I found some
quality sites about design, usability, killer applications, new trends (blogs, rss),
stages in development, canonical intranet pages, how to write for the intranet,
possible testing methods and launching possibilities and so on. The material I got
of the internet was sufficient to start writing, so I did not consult any additional
printed sources.
I started my memo by summing up all possible items I encountered, going from
the traditional news items and who-is-who databases to online video
applications and wiki-platforms. Then I gave an overview of possible stages in the
development of an intranet. I suggested that before starting the development, a
company should reflect on whether it really needed an intranet, because their
needs can often be fulfilled by using other technological means. The first stage I
distinguished was the design phase. In this phase a company should formulate
17 See appendix 4.
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the aim and the requirements of the intranet. Then I distinguished the phase of
building and implementation, in which the prototype should be tested. Then I
moved on to the introduction phase and I suggested some communication
instruments that can be used to launch the new intranet. Lastly, I distinguished an
evaluation phase for which I worked out some evaluation methods. To finish my
memo I made a list of do's and don'ts and added screen shots of intranet pages.
On the screenshots I indicated which structures I liked or which elements I would
include.
Mrs Dusar first revised my memo when it was half finished. She asked me to link
the current items on TGnet to the items I proposed and to extend the list of
questions I had summed up as thoughts beforehand, but she made no
fundamental changes. I liked this assignment very much because Mrs Dusar and
Mr De Clerck gave me carte blanche to write as I pleased and because they
gave me enough time to work it out thoroughly. I was also pleased that once the
memo was finished, Mrs Dusar passed it on to the IT-department.
3.2.2 SMALLER TASKS
During my traineeship I also conducted a variety of smaller tasks which
completed my view on what corporate communication exactly involves.
One daily tasks consisted of collecting clippings18. I logged on to Mediargus to
select newspaper articles about Tessenderlo Group or related topics and
browsed through investment magazines to look for information on the
Tessenderlo Chemie share. The selected articles were brought together and sent
to the management. The clippings are an important instrument to monitor the
stakeholders, which is essential to keep the dialogue with these parties going, as I
explained in the theoretical framework.
Other tasks included:
o Small translation tasks, which allowed me to use my English skills in an
specific business context.
o Typing all sorts of texts (programmes and scenario's for company visits,
texts for presentations, etc.), which gave me an insight in the different
topics and tasks the corporate communication department deals with.
18 See appendix 5.
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o Controlling tasks (checking the annual report for mistakes, checking the
site for outdated figures, making a list of printable documents on TGnet).
o Looking up organizations that could be interested in meeting Chinese
investors, which showed me the importance of networking.
o Looking up background information on these organizations to inform the
CEO, which showed me the importance of being concise and to the
point.
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Chapter 4 Concluding thoughts
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4.1 Final Conclusion
For me, the traineeship was a unique experience of which I learned a lot. I got
an insight in the different tasks the corporate communication department is in
charge of. I found out that corporate communication is more than writing press
releases. It involves maintaining media relations, developing the corporate
identity, streamlining the internal communication processes, being pro-active,
organizing events… Due to this wide variety of tasks the department is closely
interrelated with other departments. I noticed that working at the corporate
communication department means you have to be able to deal with a myriad
of topics: you need to be aware the organizational structures, the products, the
market, the financial structures, the context in which the company functions and
so on. This variety in tasks and topics is what makes working at the corporate
communication department of a large, international company so appealing to
me.
Another thing that struck me was the carefulness and the sense of detail that is
evinced, despite the time pressure that is always present. This really appealed to
me because I like to work things out thoroughly and I was given the opportunity
to do that. I learned that asking questions is not something to be afraid of. I had
a lot of questions about the company, its activities and my tasks and the
communication team always patiently and thoroughly answered them, for
which I am grateful. I also noticed that being pro-active and taking initiative
really matters. Mrs Dusar always reacted positively and took my ideas seriously.
In the human sphere, I experienced how important it is to have a good manager
and colleagues. Mrs Dusar is the perfect example of an excellent manager. If I
ever get to manage a team, I will really use her style as an example. She trusts
people and gives them responsibility. Moreover, she does not hesitate to give
good feedback and compliments. It was incredibly motivating when she wrote
"Prima" at the top of a draft or when she sent me an e-mail to say I did well.
When things went wrong she made corrections effectively yet gently. My other
colleagues were equally great. They really made me feel like I was part of the
team, they took the time to explain me things (for example about how they
handle press releases), they told me stories… This made me see that without nice
colleagues any job would be unendurable. I also learned that it is important to
empower people, to give them responsibilities and freedom to perform their
tasks. I noticed that doing this really motivates people to do well.
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My traineeship showed me that the numerous things we learned in the MTB-
programme really are an asset in a business context. The guest presentation on
images and reputations by Ine Mariën inspired me when writing the memo on
values. The text on intercultural communication we read during the English Maior
course proved to be excellent background information to understand the
measures that were taken when a Chinese delegation came to visit the
headquarters. Another text – on employee communication – provided
background information when I wrote the memo on intranet. The languages
courses turned out to be indispensable in an international company situated in
Brussels, although I noticed that my French skills still need to improve. During my
traineeship I was not asked to write a press release, but this would have been no
problem. Thanks to the English Maior course I know exactly which elements I
need to include in a press release and how it needs to be structured.
Needless to say, I think the MTB-programme is perfectly adapted to business.
Especially the projects and the input of the professionals provide an excellent link
to the business world. The focus on languages is also key in a time where
internationalization and global electronic media become more important still. I
certainly would not reduce the number of projects. Yes, it was sometimes though
to fit them all into our planning but what we learned from these projects is far
more important: working together, taking responsibility, generating ideas,
stimulating and supporting each other… For me, the MTB-programme was an
ideal way to finish my education and to step into working life. Keep up the good
work!
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18.
ONLINE DOCUMENTS
BASF AG (2007), Sales and earnings 2006, (on line),
http://berichte.basf.de/en/daten/geschaeftszahlen/umsatz-ergebnis/?id=V00-
dJpjiApVybir0E3, consulted on 25th july 2007.
BASF AG (s.d. (a)), Chemicals, (on line),
http://www.corporate.basf.com/en/ueberuns/profil/chemikalien.htm?id=Pg5EEA
pVzbcp05B, consulted on 25th july 2007.
BASF AG (s.d. (b)), Plastics, (on line),
http://www.corporate.basf.com/en/ueberuns/profil/kunststoffe.htm?id=Pg5EEAp
Vzbcp05B, consulted on 25th july 2007.
BASF AG (s.d. (c)), Performance products, (on line),
http://www.corporate.basf.com/en/ueberuns/profil/veredlungsprodukte.htm?id
=Pg5EEApVzbcp05B, consulted on 25th july 2007.
BASF AG (s.d. (d)), Agricultural products and nutrition, (on line),
http://www.corporate.basf.com/en/ueberuns/profil/pflanzenschutz.htm?id=Pg5
EEApVzbcp05B, consulted on 25th july 2007.
BASF AG (s.d. (e)), Oil & Gas, (on line),
http://www.corporate.basf.com/en/ueberuns/profil/oel_gas.htm?id=Pg5EEApVz
bcp05B, consulted on 25th july 2007.
Masterproef
Tessenderlo Group
-75-
BASF AG (s.d. (f)), Sites of BASF Group, (on line),
http://corporate.basf.com/en/ueberuns/global/?id=V00-N.VqAApW3bcp1GX,
consulted on 25th july 2007.
BAYER AG (2007a), Profile and Organization: Names Figures Facts, (on line),
http://www.bayer.com/en/Profile-and-Organization.aspx, consulted on 25th july
2007.
BAYER AG (2007b), Bayer worldwide: Bayer – at home throughout the world, (on
line), http://www.bayer.com/en/Bayer-Worldwide.aspx, consulted on 25th july
2007.
BAYER AG (2007c), Science for a Better Life. Bayer Annual Report 2006, (on line),
http://www.annualreport2006.bayer.com/en/bayer_annualreport_2006.pdfx,
consulted on 25th july 2007.
BVB (2007), Tessenderlo Group wint VOKA-prijs voor interne communicatie voor
grote bedrijven, (on line), http://www.abpe.be/ne/BVB-
site2005/actueel/teslogroup.html, consulted on 25th july 2007.
DSM (2007), Financial key figures, (on line),
http://www.dsm.com/en_US/html/about/interactive_graphs_2006.htm,
consulted on 25th july 2007.
DSM (s.d. (a)), Company profile, (on line),
http://www.dsm.com/en_US/html/about/company_profile_2006.htm, consulted
on 25th july 2007.
DSM (s.d. (b)), Overview of activities, (on line),
http://www.dsm.com/en_US/html/about/activities.htm, consulted on 25th july
2007.
IBM, (s.d.), How we manage by values, (on line),
http://www.ibm.com/annualreport/2004/prospectus/mgmt_c_flash.shtml,
consulted on 25th july 2007.
LONZA (2007), Annual Report 2006: Activity Report, (on line),
http://www.lonza.com/group/en/company/news/reports.-ParSys-0089-
DownloadFile.tmp/AR_e_web.pdf, consulted on 25th july 2007.
Masterproef
Tessenderlo Group
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LONZA (s.d.), Worldwide, (on line),
http://www.lonza.com/group/en/company/sites.html, consulted on 25th july
2007.
MONSANTO (2007), It All starts Today. Monsanto Company 2006 Annual Report,
(on line),
http://www.monsanto.com/monsanto/content/investor/financial/reports/2006/2
006AnnualReport.pdf, consulted on 25th july 2007.
MONSANTO (s.d. (a)), Global locations, (on line),
http://www.monsanto.com/monsanto/layout/about_us/locations/default.asp,
consulted on 25th july 2007.
MONSANTO (s.d. (b)), Who are we, (on line),
http://www.monsanto.com/monsanto/layout/about_us/default.asp, consulted
on 25th july 2007.
RHODIA (2007), Document de Référence Exercice 2006, (on line),
http://www.rhodia.com/us/downloads/Rhodia-Document-Reference-2006.pdf,
consulted on 25th july 2007.
RHODIA (s.d. (a)), About us: Profile, (on line),
http://www.rhodia.com/us/f_rhodiaessentiel.asp?mainframe=/us/rhodiaessentiel
/qui/profil_fr.asp&rubrique=Qui&lien=profil, consulted on 25th july 2007.
RHODIA (s.d. (b)), About us: Rhodia in the world, (on line),
http://www.rhodia.com/us/f_rhodiaessentiel.asp?mainframe=/us/rhodiaessentiel
/qui/profil_fr.asp&rubrique=Qui&lien=profil, consulted on 25th july 2007.
RHODIA (s.d. (c)), About us: Our businesses, (on line),
http://rhodia.com/us/f_rhodiaessentiel.asp?mainframe=/us/rhodiaessentiel/qui/
activites_fr.asp&rubrique=Qui&lien=activites, consulted on 25th july 2007.
RUITENBEEK, A. (2006), Coca-Cola zoekt zijn waarden, (on line),
http://www.briskmagazine.nl/00/artikel/644/Coca-
Cola_zoekt_zijn_waarden.html, consulted on 25th july 2007.
SELIGSON, A.L. and CHOI, L. (2006), Critical elements of an organizational ethical
culture, (on line), http://www.ethics.org/erc-publications/organizational-ethical-
culture.asp, consulted on 25th july 2007.
Masterproef
Tessenderlo Group
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SOLVAY (2007), Moving Forward Together: Solvay Global Annual Report 2006, (on
line), http://www.solvay-investors.com/static/wma/pdf/9/9/5/5/RA2006GB.pdf,
consulted on 25th july 2007.
SOLVAY (s.d. (a)), Pharmaceuticals, (on line),
http://www.solvay.com/solvayproducts/pharmaceuticals/0,,834-2-0,00.htm,
consulted on 25th july 2007.
SOLVAY (s.d. (b)), Chemicals, (on line),
http://www.solvay.com/solvayproducts/chemicals/0,,836-2-0,00.htm, consulted
on 25th july 2007.
SOLVAY (s.d. (c)), Plastics, (on line),
http://www.solvay.com/solvayproducts/plastics/0,,838-2-0,00.htm, consulted on
25th july 2007.
TESSENDERLO GROUP (2006), Tessenderlo Group presents recovery plan for the
Chemicals Business Group, (on line),
http://www.tessenderlo.com/popup.asp?doctype=News&id=061710002,
consulted on 25th july 2007.
TESSENDERLO GROUP (2007), Flemish government’s grant to Tessenderlo Chemie
and LVM, (on line),
http://www.tessenderlo.com/popup.asp?doctype=News&id=072010008,
consulted on 25th july 2007.
TESSENDERLO GROUP (s.d. (a)), Tessenderlo Chemie share and investor relations,
(on line),
http://www.tessenderlo.com/S01_Corporate/S02_Investor%20Relations/S04_Stock
%20Information/S01_Tess.G%20on%20the%20Stock%20Exchange/content.asp,
consulted on 25th july 2007.
TESSENDERLO GROUP (s.d. (b)), History, (on line),
http://www.tessenderlo.com/S01_Corporate/S01_About%20Us/S09_History/,
consulted on 25th july 2007.
TESSENDERLO GROUP (s.d. (c)), Our mission and objectives, (on line),
http://www.tessenderlo.com/S01_Corporate/S01_About%20Us/S02_Mission%20&
%20Objectives/content.asp, consulted on 25th july 2007.
Masterproef
Tessenderlo Group
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TESSENDERLO GROUP (s.d. (d)), General presentation, (on line),
http://www.tessenderlo.com/S01_Corporate/S04_Publications/S04_Company%20
presentations/content.asp, consulted on 25th july 2007.
TESSENDERLO GROUP (s.d. (e)), Our charter: Guidelines for an optimal working
environment, (on line),
http://tesscorpeng.tessenderlogroup.com/IDMWS/DocContent.dll?library=Docm
an^TESLO001&logonid=5515e496e968dbe3faffc745c9efc526&id=041680006,
consulted on 25th july 2007.
TESSENDERLO GROUP (s.d. (f)), Markets and applications, (on line),
http://www.tessenderlo.com/S02_Markets%20&%20Applications/S10_APPLICATIO
NS/S01_Overview/content.asp, consulted on 25th july 2007.
TESSENDERLO GROUP (s.d. (g)), Environmental investments, (on line),
http://www.tessenderlo.com/S03_Safety%20&%20Environment/S03_Environment/
S02_Investments/content.asp, consulted on 25th july 2007.
TESSENDERLO GROUP (s.d. (h)), Recycling initiatives, (on line),
http://www.tessenderlo.com/S03_Safety%20&%20Environment/S06_Recycling%20
Initiatives/content.asp, consulted on 25th july 2007.
TESSENDERLO GROUP (s.d. (i)), Educational projects, (on line),
http://www.tessenderlo.com/S03_Safety%20&%20Environment/S07_Community%
20Programmes/S03_Educational%20projects/content.asp, consulted on 25th july
2007.
TESSENDERLO GROUP (s.d. (j)), Open House events, (on line),
http://www.tessenderlo.com/S03_Safety%20&%20Environment/S07_Community%
20Programmes/S02_Open%20house%20events/content.asp, consulted on 25th
july 2007.
TESSENDERLO GROUP (s.d. (k)), Community programmes, (on line),
http://www.tessenderlo.com/S03_Safety%20&%20Environment/S07_Community%
20Programmes/, consulted on 25th july 2007.
TESSENDERLO GROUP (s.d. (l)), Environmental results, (on line),
http://www.tessenderlo.com/S03_Safety%20&%20Environment/S03_Environment/
S05_Results/content.asp, consulted on 25th july 2007.
Masterproef
Tessenderlo Group
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TESSENDERLO GROUP (s.d. (m)), Responsible Care: A commitment towards
present and future generations, (on line),
http://www.tessenderlo.com/S03_Safety%20&%20Environment/S02_Sustainable%
20Development/S02_Responsible%20Care/content.asp, consulted on 25th july
2007.
TNT (2007), Schoolfeeding volunteers, (on line),
http://www.group.tnt.com/wfp/hands-
on/schoolfeedingvolunteers/index.asp?mode, consulted on 25th july 2007.
THE BODY SHOP (2005), The Body Shop Values Report 2005, (on line),
http://valuesreport.thebodyshop.net/pdfs/bodyshop_valuesreport_2005.pdf,
consulted on 25th july 2007.
OTHER DOCUMENTS
KBC SECURITIES (2007), Tessenderlo: Turning the corner, Brussels: KBC Securities NV,
23 p.
TESSENDERLO GROUP (2007a), Onthaalbrochure voor nieuwe werknemers,
unpublished.
TESSENDERLO GROUP (2007b), Annual Report, Brussels: Geert Dusar,151 p.
TESSENDERLO GROUP (2007c), Facts & Figures, Brussels, Geert Dusar, x.