Why the PR strategy of storytelling improves employee engagement and adds

value to CSR: an integrated literature review

Dr Robert Gill

Media and Communication Group, Faculty of Health, Arts and Design

Swinburne University of Technology

P O Box 218

Hawthorn, Victoria, 3122

Australia

rgill@swin.edu.au

ph 613 9214 5425

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 Why the PR strategy of storytelling improves employee engagement and adds

value to CSR: an integrated literature review

Abstract

This literature review paper examines theoretical text on corporate storytelling to

ascertain if it can be a valuable public relations (PR) strategy to heighten employee

engagement, and to identify how storytelling may improve internal loyalty to the

corporate brand that ultimately strengthens internal and external reputation –

validating its worth for an organisation’s corporate social responsibility (CSR).

The paper includes an integrated literature review of contemporary text and theories

on storytelling from academics and industry leaders relating to: the benefits of using

corporate stories; corporate stories and employee engagement; employee engagement

and enhanced internal reputation; the link between internal and external reputation;

the benefits of PR strategies to CSR, and; the limitations of corporate storytelling.

Results from a 2012 Australian corporate survey on the use of storytelling are also

integrated into the review. Many theorists endorse corporate storytelling as a valuable

medium for engaging with employees and improving internal reputation. However,

both contemporary academic and industry analysis appears limited in

acknowledgement of a link between internal storytelling and improved CSR.

The paper draws a link between using corporate stories to engage more deeply with

staff in order to strengthen internal loyalty and effect a stronger external reputation, as

organisations seek to heighten their CSR credibility and make employees their

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reputation champions. This link appears to be given limited attention in current PR

academic text.

Key words

employee engagement, corporate storytelling, reputation, corporate social

responsibility

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 1. Introduction

Can storytelling be a valuable internal communication strategy to engage more

effectively with employees and advance an organisation’s corporate social

responsibility (CSR) reputation? The following integrated literature review examines

the link between corporate storytelling, employee engagement and CSR reputation,

and concludes that a strong link exists.

The purpose of this paper is to identify from the literature how corporate storytelling

has significant strategic benefits for internal communication and employee

engagement, leading to improved internal reputation and enhanced CSR (Mittins,

Abratt & Christie, 2011). The paper also identifies distinct criteria to effectively use

storytelling as an employee engagement strategy, as opposed to more traditional

communication mediums. The literature review in this paper demonstrates that many

theorists highlight the value of corporate storytelling, but there is limited mention in

PR academic texts regarding the use of storytelling as a strategy to build internal

loyalty in order to strengthen external reputation and CSR, even though practitioners

and academics endorse its value to corporate communication (see for example - as a

cross section of academic texts: Newson, Vanslyke Turk & Kruckeberg, 2013;

Sriramesh & Verčič, 2009; Johnston & Sheehan, 2014; Chia & Synott, 2012;

Freitzberg & Quensinberry Stokes, 2009; Chaney & Martin, 2011).

This paper is important as it repositions storytelling as a legitimate strategy to

building a positive internal and external reputation that is under-theorised in academic

text (see also Mittins et al., 2011). Public relations (PR) practice can play a critical

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role in advancing an organisation’s CSR through internal communication strategies

that engage with employees and effectively engender the organisation’s values. There

appears to be consensus in literature that these values are represented externally by

staff to stakeholders and publics, and have a critical effect on the organisation’s

reputation, as indicated by Dowling (2006).

Corporate storytelling is the practice of using narration from within the organisation

relating to its people, practices, policies and visions to effectively engage with staff

(Dowling, 2006). Contemporary literature (both industry and academic reviewed in

this paper) already supports the relationship between the use of corporate storytelling

and heightened employee engagement. This literature demonstrates storytelling as a

PR strategy has the ability to reach out and connect with employees on a more

engaged level by personalising the message and greatly enhancing the capacity for

commitment and recollection (Forman, 2013; Sinclair, 2005; Simmons, 2006).

“Effective internal communication is crucial for successful organisations as it affects

the ability of strategic managers to engage employees and achieve objectives” (Welch

and Jackson, 2007, p.177).

Literature indicated that as employees understand the organisation’s values, and can

draw connections from their own values with their organisation’s, they may become

more comfortable in their employer’s mission (see Table One). This is evidenced

through their external dealings, which reinforces the reputation for the organisation

due to employees reflecting the intended brand through their positive interactions on

behalf of the organisation. The public’s cumulative judgement on the organisation’s

success in fulfilling expectations is significantly shaped by the stakeholder

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experiences (L’Etang, 2008; Waters, 2010; Dowling, 2006). The organisation’s CSR

reputation is judged on its ability to fulfil brand qualities regarding social and

environmental responsibility (Christensen, 2013).

This paper aims to consolidate findings from literature regarding the connection

between corporate storytelling as a means to deeper engagement with employees,

which results in an improved internal reputation and consequently enhances positive

recognition for their employer’s brand and CSR. It also uses the results of a 2012

corporate storytelling survey to match against the literature findings. It is anticipated

that the findings of this paper will drive greater recognition and formal

acknowledgement regarding the benefits of corporate storytelling as a calculated and

deliberate stakeholder engagement strategy, both at an academic and practitioner

level.

1.1 Glossary of terms

To avoid confusion with terminology, definitions of terms commonly used in this

paper have been outlined below.

Storytelling is narration that tells of particular acts, occurrences or events presented

in the form of text or art and has the ability to transcend age-groups, cultures and

genders, and captures the imagination and attention of listeners regardless of

background (Kearney, 2002; Sinclair, 2005).

Corporate storytelling is the process of developing and delivering an organisation’s

message by using narration about people, the organisation, the past, visions for the

future, social bonding and work itself in order to create a new point-of-view or

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reinforces an opinion or behaviour (Wilkins, 1978; Witherspoon, 1997; Kaye 1995).

For the purposes of this paper, corporate storytelling and organisational storytelling

are defined as the same term.

Employee engagement, according to Shuck and Wollard (2009), focuses on building

an engaging culture between staff and the organisation in order to advocate the

targeted outcomes of higher productivity and strong profits that are a result from staff

who are healthier, safer, less likely to leave and more willing to engage in

discretionary efforts.

Reputation is the value afforded to an individual or organisation based on the general

beliefs (Dowling, 2006; Gotsi & Wilson, 2001).

Corporate brand is considered to be the assurances an organisation promises to

deliver (Beder, 2002; Scott & Walsham, 2005).

Corporate (organisational) reputation is how external stakeholders perceive the

organisation is delivering on its promises, and the collective esteem in which the

organisation is held by its public and stakeholders (Johnston & Everett, 2012; Beder,

2002; Fombrun, 2005). The internal reputation for an organisation is the esteem in

which it is held by its employees, significantly influenced by the culture within the

organisation (Hull and Read, 2003; Hewitt, 2012).

Corporate social responsibility (CSR) is the process of embracing responsibility for

the company's actions and encouraging a positive impact through its activities for the

environment, consumers, employees, communities, stakeholders and all other

members of the public sphere who may also be considered as stakeholders

(McWilliams & Siegel, 2001).

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 2. Research method

An integrated literature review of contemporary academic writings and industry

publications was used as a means of determining support for the use of storytelling

within organisations. Results from an industry survey on Corporate Storytelling

conducted in 2012 are matched against the key findings of the literature. An

integrated literature review was considered the most appropriate research method as it

is a form of research that reviews, critiques, and synthesises representative literature

on a topic in an integrated way such that new frameworks and perspectives on the

topic are generated (Fink, 2005). This body of text includes literature and studies that

address related or identical topics.

The objective of the literature review was to audit reliable and valid literature on

storytelling, particularly corporate storytelling, to identify common themes relating to:

the benefits of using corporate stories; corporate stories and employee engagement;

employee engagement and enhanced internal reputation; the link between internal and

external reputation; the benefits of PR strategies to CSR, and; the limitations of

corporate storytelling. An integrated approach using text from industry and academic

theorists was considered one of the foremost ways to capture data with a blend of

concepts from various fields, akin to human resources, management, communication

and academia (Shuck and Wollard, 2009; Fink 2005).

The 2012 industry survey, Corporate Communication Survey on Storytelling

(Appendix One), was conducted by a communication consultancy group reviewing

the use and purpose of corporate storytelling in the workplace as part of

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communication strategy. Primarily the survey’s objective was to gauge the use of

corporate storytelling as a precursor to a more comprehensive and deliberate study.

The statistical significance of the survey is limited by its small population. The survey

was randomly emailed to senior management employees of 20 leading Australian

companies with head offices in Sydney and Melbourne (including banks, financial

services, mining corporations, construction, retail and manufacturing). One hundred

participants completed the five-minute survey. Of the respondents, 55% were above

45 years of age, and 79% were above 34 years of age. There were 51% of respondents

who were female. Eighty-three per cent of the respondents were in management

positions, with 37% being executive/senior managers and 29% being team leaders

(see Appendix One).

3. Review and discussion

3.1 Benefits of storytelling

Storytelling is a phenomenon that is fundamental to all nations, societies and cultures,

and has been so since time immemorial, according to Denning (2010). It has been an

effective form of communicating a message between individuals and groups for

thousands of years (Kearney, 2002). Using meaningful stories can be a valuable PR

communication strategy for organisations as it is a means to separating constructive

communication from the ‘mundane message overflow’ associated with more

traditional corporate communication (Sinclair, 2005). Results from the 2012 corporate

storytelling survey indicate that 99% of respondents have personally told a story or

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given an example from their own experience (or related a colleague’s experience) to

other staff (Appendix One).

According to Simmons (2006) believe people receiving corporate narration often

come to the same conclusion as the narrator, but through using their own decision-

making processes. Stories can share knowledge amongst employees who interpret the

narration in line with their own experiences, allowing personalised cognition about

problems, solutions and explanations (Denning, 2010). These attributes enable stories

to carry symbolic information and convey meaning, in addition to enhancing

commitment and recollection (Sinclair, 2005).

Stories can tap into personal elements enabling the presenter (narrator) to construct an

authentic picture for receivers in alignment with their own ideas and goals, making

the narration more enchanting (Sinclair, 2005; Simmons, 2006). According to

Lawrence and Mealman (1999) meaning, as in the way people make sense of

situations they encounter in their daily lives, is derived through reflection on one’s

own experience. The value added by stories and metaphor can be extensive because a

story can add a personal factor of understanding and connection that data and analysis

alone cannot achieve (Hansen, 2008).

3.2 Benefits of corporate storytelling

Stories can be used in organisations as a means to motivate people and create a

message memorable enough for people to take cause and action, if there is an

identified interest to the listener (Forman, 2013; Prusak, 2001; Kaye 1996).

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A good example of storytelling engaging employees and stakeholders was its use after

the 2008 global financial crisis by communication networks company Ericsson

Australia and New Zealand. In 2008 employee satisfaction was at a low with surveys

demonstrating senior leaders’ motivation rating 52 per cent; leadership

communication capability rating 57 per cent; and, strategy awareness rating 66 per

cent (Aplin, 2010). Ericsson launched a three-year strategy with programs addressing

business challenges and opportunities, focussing on transforming the organisation’s

communication culture to be more open and accessible. The goal of the program was

to help employees understand the organisation’s ambitions and feel motivated to be

part of the solution. The senior leadership group (including the CEO) were required to

attend two half-day workshops on storytelling, which had been identified as the way

to connect, not just communicate, with staff. The follow-up survey results were a

resounding success, with employee surveys at the end of 2009 showing leadership

communication competency jumping 18 points to 75 per cent, strategy awareness

increased by 11 points to 77 per cent, and senior leaders’ motivation increasing by 22

points to 74 per cent. Ericsson’s customers rated them five points ahead of their

competitors in the Customer Satisfaction Index Survey and the company finished the

year in a stronger financial position (Aplin, 2010).

Corporate storytelling can therefore be a deliberate process of developing and

delivering an organisation’s message through narration involving people, the

organisation, the past, visions and processes for persuasive purposes (Wilkins, 1978;

Witherspoon, 1997; Kaye 1995). A growing sub-section of organisational

communication theory is now based on storytelling, and requires stronger recognition

as a communication strategy in academic text (Fenton Taylor & Carroll, 2010).

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A strong advocate for the use of storytelling by business leaders and communication

strategists is Howard Gardner (2010). His research in the field of cognitive

psychology strongly links using stories to change people’s minds and reinforce

opinions. From an organisational perspective, employee interpretation is an emotional

and cognitive response (intrapersonal communication) to information presented (Fog,

Budtz, Munch & Blanchette, 2010; Taliaferro & Ruggiano, 2010; Archee, Mohan &

Gurney, 2013). This complements many objectives for a successful PR internal

communication program (L’Etang, 2008; Harrison, 2011). Using stories as a strategy

to communicate with staff rated highly with respondents to the corporate storytelling

survey, with more than 90% rating it as important (62% rating it high, and 30% rating

it of medium importance - Appendix One).

Storytelling already plays an important role for organisations, business and

contemporary politics according to Brown, Denning, Groh and Prusak (2004).

However, what is evident from the reviewed literature was that over time

organisations had displayed little documented evidence of formally utilising this

medium as a PR communication strategy to engage with their staff and other key

stakeholders in order to build engagement and improve reputation (see for example

communication strategy literature from Boje, 1991; Denning, 2006; Hansen, 2008;

Kaye, 1996; McConkie and Boss, 1994; Shamir, 1998; Wilkins, 1978; Witherspoon,

1997).

Table One summarises the primary benefits to using storytelling as an internal

communication strategy. It highlights specific themes that have been supported by

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three or more of the identified authors from the reviewed literature, and demonstrates

that many leading theorists in the field have connected storytelling with a deliberate

strategy to engage more deeply with employees.

Table One:
Primary Benefits Relating to the Use of Storytelling in an Organisation (updated from
Gill, 2011)
Benefit Link Author
Storytelling is an effective means of Employee  Forman, 2013
communicating with internal employees engagement  Fog et al, 2010
 Shuck & Wollard, 2009
 Denning, 2010, 2005
 Sinclair, 2005
 Brown et al., 2004
 Post, 2004
 Kaye, 1995
The use of stories by management is more Good  Dowling, 2006
engaging and appealing to employees employer  Simmons, 2006
practice  Kaye, 1996
 Prusak, 2005
Story objectives can remain the same, even Internal  Forman, 2013
when the content is adapted by the narrator to communication  Fog et al, 2010
make stories more personal  Sinclair, 2006
 Gardner, 2010
 Lawrence & Mealman, 1999
Knowledge presented through narration is more Employer  Fenton Taylor & Carroll,
believable as receivers apply their own engagement 2010
interpretation and experiences to the  Hansen, 2008
information  Simmons, 2006
 Sinclair, 2005
 Boje, 2000
Effective corporate stories appeal to emotions Internal  Fog et al , 2010
and have a lifecycle relating to the organisation communication  Taliaferro & Ruggiano, 2010
 Dowling, 2006
 Denning, 2010, 2005
 Fryer, 2003
 Prusak, 2001
 Brown, 1995
Employees may adopt a notion of ownership Employer  Forman, 2013
over corporate narrations and stories by engagement  Fenton Taylor & Carroll,
applying their own experiences to the message 2010
 Archee et al., 2013
 Harris & de Chernatony,
2001
 Drucker, 1989
When employees are comfortable with their Good  Johnston & Everett, 2012
organisation’s values and work practices they employer  Dowling, 2006
become important assets to enhancing company practice  Brown et al., 2004
reputation  Herman & Gioia, 2004
 Leary-Joyce, 2004
 Post, 2004

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  Beder, 2002

Table One demonstrates that there is strong consensus for using corporate storytelling

as a means to deeper connection with employees through opening up more engaging

internal communication channels where individuals apply their own intrapersonal

interpretation and emotional connections to generic text (Archee et al., 2013). Many

theorists endorse the belief that engaging with staff on a more personal level builds

stronger loyalty that can galvanise a committed internal reputation for their employers

and their organisation.

Table Two represents the 2012 Corporate Communication Survey on Storytelling

respondents’ rating of particular functions for using storytelling in the workplace. The

survey measures workers understanding of how storytelling is used in the workplace.

With 99 per cent of respondents stating they have used stories in the workplace, the

table provides insight into the importance perceived by employees and managers on

utilising storytelling as a strategic communication function.

Table Two: Corporate storytelling functions in the workplace (Corporate

Communication Survey 2012 – Appendix One
Answer Choices Responses
Strengthen your working relationship with other staff 84% 84
Strongly reinforce a point you are trying to make 76% 76
Improve/strengthen staff trust 62% 62
Improve/strengthen staff loyalty 35% 35
Improve/strengthen staff commitment 40% 40
Open up the lines of communication between staff and management 83% 83
Make staff feel more relaxed around management and colleagues 73% 73
Improve understanding and comprehension 75% 75

Traditionally, stories in the workplace have been used to emphasise safety and

wellbeing and to decrease risk (Prusak, 2001; Wilkins, 1978). Table two indicates that

storytelling is more deliberately utilised by many staff (particularly management, as

98% of respondents were in management positions) for the more direct purposes of

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developing and maintaining good working relationships with staff. As suggested by

Fenton Taylor and Carroll (2010), corporate narrative can build a culture of

engagement between staff and management to improve efficiency and organisational

ethos. However, an interesting result from the survey suggests that building staff

loyalty (35% of respondents) and building staff commitment (40%) were not afforded

the strength of purpose as strengthening working relationships (84%) and open

communication between staff and management (83%).

A broader value for corporate storytelling is its potential to persuade, motivate and

inspire employees about their organisation and sustain corporate identity, thus

strengthening internal loyalty and reputation, as indicated in Table One and detailed

by Fenton Taylor & Carroll (2010), Mashall and Ademic (2010) and Simmons (2006).

Theorists state that through stories PR practitioners can foster trust and support for

their organisation by creating an emotional bond with employees, and other key

stakeholders, as a result of explaining the behaviour of the organisation in terms of its

mission and morality (Forman, 2013; Taliaferro & Ruggiano, 2010; Dowling, 2006).

Another key benefit of storytelling highlighted is its universal appeal to culturally

diverse audiences who have a range of interests and learning styles. Many large

organisations have a varied group of stakeholders. Stories provide a flexible

framework for the narrator to reflect the organisation’s position against the selected

interests of the particular stakeholders (Dowling, 2006). Corporate employees come to

see themselves and their own culture reflected through corporate narratives (Fenton

Taylor & Carroll, 2010).

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3.3 Good corporate stories

A number of the reviewed theorists have identified fundamentals that aid in

composing, developing and implementing a ‘good’ corporate story that contributes to

the strategic plan and communication objectives for an organisation. Table Three

reviews text from leading academic theorists on corporate storytelling who have put

forward fundamentals to designing effective narration to maximise engagement with

stakeholders and achieve communication objectives.

Table Three: Fundamentals to Good Corporate Stories (updated from Gill, 2011)
Key Points Author Year
 Four distinct characteristics of effective corporate storytelling: Marshall & 2010
purpose, allusion, people, and appeal Adamic
 Stories must have a purpose in mind
 Stories with inspiring emotional appeal are far more likely to impact
corporate culture and employee behaviour
 Stories have a traditional role in human evolution Fog et al. 2010
 Tell stories that represent brand building
 Provide symbols that stakeholders can value from the brand
 Corporate stories that allow employees to associate with the
organisation’s symbols that reflect staff personal values
 To create interest in the organisation Dowling 2006
 Help shape expectations of stakeholders (internal and external)
 Lifecycle models - unfold over three parts: yesterday, today and
tomorrow
 Where the organisation has come from
 Where it currently is
 Where it is heading
 Employees become part of the history of the organisation
 Similar to Dowling’s life cycle Denning 2006
 Springboard approach to the future
 Future is kept vague so that listeners are encouraged to be part of the
solution and direction
 Employees get a sense of contributing to the future
 Suggests four attributes - endurance, salience, sense-making, and Prusak 2001
comfort level
 Durable stories may have changed names and circumstances, but the
behavioural lesson remains the same
 Salience refers to relevance and punch in the story
 Sense-making, meaning that is true to a receiver’s own experience
 Receivers need to be comfortable with the feeling they get from the
narration
 Needs to project expertise, sincerity, likeability and powerful Rossiter and 2005
characteristics Bellman
 Expertise fosters esteem and respect

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 Sincerity promotes trust and corporate citizenship
 Stakeholders will identify with the organisation if they like what it
stands for
 Organisations are leaders as a result of their perceived power
 Move beyond text to a living example Boje 2008
 Use collective memory from the organisation
 Supplement the individual’s memory with organisational memory
 Decentralise the narrative
 Sense-making from retrospective, here-and-now, prospective
narrative
 Display a struggle between expectation and reality McKee 2003
 Personalise the message
 Present all the statistics, including the negatives
 Acknowledge the weaknesses along with the strengths
 Self-knowledge is the root of great storytelling
 Attention to aesthetics through design Matthews 2007
 Empathise with audiences’ circumstances and Wacker
 Sympathy through holistic pictures with all the pieces
 Putting fun into the activity
 Extend the value beyond the moment

Many fundamentals identified by the leading theorists (Table Three) have a function
in creating effective narration for corporate storytelling, determined by the objective
for the story. These characteristics include: an inclusive approach; emotional content;
relevance; prospective value; and, promotion of trust. Considering the key
fundamentals identified in Table Three, a well-designed and executed corporate
narration links well with the premise of using stories to be more engaging with staff
through heightening their understanding and commitment to the message.

The role of communication managers utilising corporate stories internally is to ensure

the content is appropriate to the communication objective and that the audience has
the ability to comprehend the meaning of the story (Harrison, 2011). Boje (1991)
suggests storytelling is an effective PR strategy for delivering communication that is
engaging and relevant to a diverse group of internal stakeholders, even considering
individual roles and personal contexts, as stories resonate with meaning that is true to
a receiver’s own experience (see Table Three).

3.4 Corporate storytelling and employee engagement

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Scholes (1997) considers internal communication to be the professional management
of interactions between all those with an interest or ‘stake’ in the organisation.
Cheney and Christensen (2001) define internal communication to be at three levels:
day-to-day management of employee relations, strategic planning to carry out the
organisation’s mission, and project management. Communicating internally involves
more than transmitting messages, it involves a degree of ‘buy-in’ to achieve
engagement with employees (Archee et al., 2013).

Employee engagement combines employee satisfaction and commitment (at an

individual level) with actively engaging them in objectives at an organisational level
(Schneider, Erhart, Mayer, Saltz and Niles-Jolly, 2005: Shuck and Wollard, 2009).
Employee engagement is defined by Harter, Schimdt and Hayes (2002, p. 417) as an
“individual’s involvement and satisfaction with, as well as enthusiasm for, work”.
Internal communication managers utilise strategies that contribute to achieving
organisational objectives, and 63% of respondents for the corporate storytelling
survey (Appendix One) strongly believe storytelling is an effective strategy to achieve
targeted outcomes (98% rating the strategy at strong/medium effectiveness).

Much of the literature reviewed made a connection between the strategy of using
storytelling internally and improved employee engagement, as evidenced in the above
section defining corporate storytelling. The corporate storytelling survey also
indicated strong results for the use of storytelling as an engaging strategy. Table Four
indicates how respondents to the Corporate Communication Survey have intentionally
used stories and anecdotes to engage with other staff in the workplace (Appendix
One).

Table Four: How workers have used stories to engage with staff at work (Corporate
Communication Survey 2012 – Appendix One)
Answer Choices Responses
Make staff feel more relaxed around you 83% 83
Demonstrate how to do something correctly 70% 70
Indicate that you have previously made mistakes 81% 81
Give an example to strongly reinforce a safety issue 31% 31
Motivate staff to improve 54% 54
Open the conversation 64% 64

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Table Four results demonstrate the use of corporate stories as a means to engage with

staff in order to make staff feel relaxed (83%), to highlight mistakes have been made

before (81%) and to demonstrate the correct way to something (70%). The leading

reasons for using stories closely support the theorists’ principles (Table One)

regarding the use of personal stories as a way to deeper engage with other staff by

revealing human experiences and emotions, allowing employees to align their

employers’ values with their own. Johnston and Everett (2012) refer to this as the

“sense-making” experiences of employees, and how these shape the internal

reputation for an organisation.

3.5 Employee engagement and internal reputation

The internal reputation for an organisation is the esteem in which it is held by its

employees, significantly influenced by the culture of engagement and depth of

communication within the organisation (Hull and Read, 2003; Hewitt, 2012).

However, internal reputation does not exist independent of external reputation, and

vice-versa, as the brand promoted by the organisation has a fluency between internal

and external perceptions, and similarly the reputation is influenced by internal and

external experiences (Gotsi & Wilson, 2001; Money & Hillenbrand, 2006). The gap

between what an organisation promises through its branding and what it is perceived

to deliver determines its reputation (Beder, 2002; Scott and Walsham, 2005). The risk

to reputation is when the gap between what is promised and what is delivered

becomes significant and an organisation’s reputation is damaged (Gotsi & Wilson,

2001).

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Gotsi and Wilson (2001) argue that that on balance, the weight of literature suggests

that there is a dynamic, bilateral relationship between a firm’s corporate reputations

and its projected corporate brand and that reputation evolves from experience. The

benefit to using storytelling to engage with employees (beyond individuals innately

relating their experiences) is the reinforced images regarding employer behaviour,

symbolism and communication that resonate at a deeper level with employees

(Matthews & Wacker, 2007; Rossiter & Bellman, 2005) Recent literature suggests

that there is no stable consensus around characteristics of a good reputation. Money

and Hillenbrand (2006) investigated how corporate reputation was measured from

both an internal and external perspective and found that reputation was an individual

construct determined typically against strategic indicators or perceptual interpretation.

Storytelling, as demonstrated, is a valuable internal communication medium for

engaging with staff as it can evolve with new developments and experiences relevant

to the listeners. A key concept for internal communication is to advance employee

commitment to the organisation through fostering relationships and engagement that

strengthen internal reputation (L’Etang, 2008). Welch and Jackson (2007, p. 186)

describe the aims of internal corporate communication as “promoting commitment to

the organisation, a sense of belonging to it, awareness of its changing environment

and understanding of its evolving aims”. Internal communication reinforces those

values that represent the organisation – in essence, its brand! From an employee

perspective, the desired brand communicated internally is compared against the

operational culture in order to establish the internal reputation, which in-turn

determines internal loyalty for the organisation (Fog et al., 2010; Welch and Jackson,

2007).

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Table Five summarises robust research conducted by global research houses into

effective employee management. This is important as it illustrates the connection

between employee perspectives on good management principles and strategies used

by leading organisations to engage and motivate staff. The Table highlights key

criteria relating to what makes an organisation successful, identified by employees

and researchers.

Table Five: Global Research into Effective Employee Management

Report Focus Sample Relevant key findings
KPMG Analysis of 378 senior All reporting companies analysed
International environmental executives from underline importance of communication
Corporate social and global with stakeholders, with employees being
Sustainability sustainability companies singled out as the main stakeholder and
Report 2011 reports based across the sustainability driving corporate agendas
world
“Good Employee Key issues to New Zealand  Business leaders had a deep
Practices Are Good consider in Businesses relationship with stakeholders
For Your Business moving a  Employee welfare addressed
2003”, Business business to a  Employee reward and recognition for
Practices and more staff
Performance Study competitive  Comprehensive values program
position  Assessment of employee satisfaction
IBM's Global Links between 700 Chief Most successful organisations are those
Chief Human successful (CHROs) and that:
Resource Officer organisations senior  Source and manage talent in line
study 2011 and leading executives from with business strategy
human capital 61 countries and  Hold leadership accountable for
practices 31 industries development and growth of people
worldwide  Utilise organisational knowledge
effectively
Simply the best - Questionnaires 16 workplaces Fifteen key drivers in each of the leading
workplaces in and interviews from 10 workplaces, including:
Australia: on employee companies with  Quality of working
2001 Study conditions a diverse range  Relationships
of industries  Workplace leadership
(Australia)  Having a say
 Clear values
 Getting feedback
 A sense of ownership
The (Aon) Hewitt Benchmarking Australasian Top performing companies have:
"Best Employers" report on human survey of 165  Unwavering commitment to
surveys 2012 capital organisations developing highly engaged and
management with more than productive employees
74,000  Clear performance expectations
employees  Align people to the organisation's
goals and values

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  People managers who create the
conditions for their people to excel
 Reward and recognition practices
 Clear communication on what
employees can expect
PWC Global Identify good 1,200 businesses Financial performance strongly linked to:
Human Capital human across the globe  Productive employment relations
Survey 2012 management  Measuring employee satisfaction
practices  Employee support
 Employee development

Many of the key findings from Table Five align with theorists’ beliefs that employee

engagement and employee satisfaction, which contribute to good employee

management, are considerable drivers of organisational success. The collective results

above have identified several significant findings regarding well-managed staff,

relating to: effective two-way communication; employee satisfaction; opportunity and

advancement; strong values and leadership; and, employee support. An important

element for the corporate brand identified from the employees’ perspective, is the

organisation’s qualified support for its staff and its responsibilities within the

community (Waters, 2010; Harrison, 2011; Macnamara, 2005; Hewitt, 2012; Hull and

Read, 2003).

The above data demonstrates a link between strong employee engagement and sound

employee management processes. The global research identified the concept of

engaging with employees through strong leadership, support and recognition and

pathways to development (linked through good internal communication practice) as

being positively connected to successful organisations. Corporate storytelling has

been shown to be an effective internal communication strategy, particularly regarding

trust for the corporate brand as a result of deeper engagement with employees.

Storytelling may provide the ‘cut-through’ regarding building loyalty to the brand that

22
traditional business communication struggles to achieve due to communication clutter

and repetitive corporate text (Brown et al., 2004; Schneider et al., 2005).

Two-way dialogue promoted by storytelling provides potential for both management

and employees to share reality and evolve the organisation’s values in a balanced

exchange (Matthews & Adamic, 2010; Boyce, 1996). Storytelling opens up a more

human and personal side of management by embracing an acute social system of

relaying information on trust (Simmons, 2006). Stories enable staff to identify with

the narrator on a personal level, and through their interpretation take a form of

ownership over how the brand is represented. Gaining employee trust and respect are

critical to building a healthy internal reputation and opening the lines of engagement

with employees (Dowling, 2006).

The significance of narration regarding an organisation’s values endures beyond the

original delivery, as it has the capacity to become a story in itself told by employees

(Prusak, 2001). Employees can take ownership of relevant information from

corporate stories, passing on appropriate information to colleagues and other related

stakeholders. In a sense, stories generate brand values like business relationships,

commitment and discussion on vision and values, along with enabling employees to

share and understand organisational culture and opportunity (Sinclair, 2005; Fenton

Taylor & Carroll, 2010).

3.6 The link between internal and external reputation

Employees represent the organisation’s brand through interaction with external

stakeholders by their work practices and their attitude towards their employer.

23
Johnston and Everett (2012) state the internal perceptions and beliefs that distinguish

an organisation provide the foundations for representing that organisation to outsiders.

PR practice plays a critical role in engendering the values for the organisation’s brand

through internal communication strategies to reinforce the desired values (L’Etang,

2008). Positive interaction between employees and various stakeholders further

reinforces the reputation for the organisation (Waters, 2010; Dowling, 2006).

Fombrun and Shanley’s seminal model (1990, p. 235) hypothesises that corporate

reputations represent the public cumulative judgements of organisations over time,

which in turn affect the organisation’s relative success in fulfilling expectations of

multiple stakeholders. Key stakeholders for any organisation are the employees. Any

interested public has their perception for that organisation significantly shaped by the

media and the stakeholders’ experiences with the organisation’s people (L’Etang,

2008).

Intangible assets for an organisation, such as reputation, trust, goodwill, image and

relationships, add considerable wealth to the organisation (Post, 2004). These

intangible assets, which originate from inside the organisation, undeniably deliver

value to the company according to 96 per cent of executives polled in an Accenture

Survey (Post, 2004). Previous Accenture surveys also have shown that in 1980 the

book value of a company comprised 80 per cent of its market value. In 1990 the book

value comprised 55 per cent, while intangible assets comprised 45 per cent of the

market value. In 2002 only 25 per cent of a company’s book value was reflected in

the market value, with intangibles ballooning to 75 per cent (Donaldson, 2006).

24
An organisation’s brand and reputation have become very important assets that

require nurturing and protection, and need to be considered for their value in line with

all other assets, according to Beder (2002). Narrative communication with staff is a

valuable strategy for reputation management and for reinforcing the corporate brand

(Mittins et al., 2011; Dowling, 2006). Chung, Lee and Heath (2013) demonstrate that

the customer-business relationships are primary predictors of the corporate brands and

their equity. Stories have been shown to be a natural medium to represent an

organisation’s significance, values and mission (important elements to CSR), along

with demonstrating to employees those elements held in importance by the employer

(Gardner, 2010).

3.7 The link between storytelling and CSR reputation

Christensen, Morsing and Thyssen (2013) argue that aspirational CSR talk within an

organisation is an important resource for social change, even if organisations do not

fully deliver on the organisational brand. Corporate storytelling as a PR strategy has

been shown to be a significant contributor to reinforcing the desired meaning

internally, particularly when employees can make sense and align the company values

with personal values (Fenton Taylor & Carroll, 2010; Matthews & Adamic, 2010;

Sinclair, 2005). Strategic communication, such as storytelling, is constitutive of all

organisational life and sense-making and is the conduit between employer and

employee (Christensen, Morsing & Thyssen, 2013; Kaye, 1996; Hansen, 2008).

The strategy of using stories to engage with employees and build greater conviction

and belief in the brand has been shown to contribute to staff expressing this belief

with their stakeholders, reinforcing the desired CSR reputation (Louiset, 2006). As

25
demonstrated, companies that “live” their brand engender the support from their staff

who sees the organisation as being accountable to its message. Taylor and Van Every

(2000) claim organisations “emerge” through communication and become

accountable to their decisions. Employees who trust in the organisation’s CSR mantra

are more likely to become the CSR champions for their organisation to external

stakeholders and publics (Johnston & Everett, 2012; Campbell, 2004).

This may still occur even when there are discrepancies between what the brand says

and what is actually achieved. The promotion of CSR ideals by an organisation

publicly promotes expectations for that organisation (Christensen et al., 2013). As

Brunsson (2006) and Morsing and Schultz (2006) indicates hypocrisy may be an

inevitable by-product of “virtuous” endeavours for companies that fall short of

fulfilling their promoted CSR brand, but the worth for the employee is belief in their

company’s noble CSR behaviours. The fact that organisations are legitimately striving

to live their brand can be seen as credible behaviour by employees and stakeholders

alike. The symbolism and associated stories representing these endeavours can

galvanise a belief in the brand (see Tables One and Two). Organisations may also

learn from the way they present themselves, which can lead to employers and

employees together ‘walking the talk’ to buttress their CSR branding, according to

Christensen et al. (2013).

Therefore, employees who place conviction in the communicated message about the

social and environmental values held by their employer, a conviction that not only

comes from actions but a belief built on the positive engagement through corporate

26
storytelling, can significantly enhance the external CSR reputation for that

organisation.

4. Limitations to corporate storytelling

The reviewed literature provided insight into the benefits of storytelling. However,

there are many considerations and limitations to using stories as a means of employee

engagement and generating a strong reputation as a valued brand. Focussing on

employee engagement to build internal loyalty to the brand relies on a diverse and

strategic approach, often deliberately planned through a variety of communication

channels. The use of corporate storytelling is often one part of a holistic strategic plan

or internal communication campaign (Archee et al., 2013; Denning, 2010; Harrison,

2008; L’Etang, 2008).

Using face-to-face narration can be challenging, especially for multi-office and larger

organisations, where the practicalities of direct communication with all staff can be

logistically difficult (Harrison, 2011; Macnamara, 2005). Storytelling needs to remain

part of an overall strategic goal, and add value towards achieving the stated

communication objectives for the organisation, not just be used in isolation to connect

deeper with employees (Harrison, 2011; Denning, 2006; Archee et al., 2013). Even

though storytelling can be characterised by a more personal and informal approach to

corporate communication, it is essential that the principles of communication

planning are followed to remain effective (Harrison, 2011; Dowling, 2006). Other

risks to using storytelling include the narrator’s own interpretation on the message

influencing the meaning, and good orators projecting confidently and convincingly

27
information of little substance or logic for the receivers (Fog et al, 2010; Welch &

Jackson, 2007; McKee, 2003).

Although many of the theorists reviewed have publicised many positives associated

with using corporate storytelling, they acknowledge the deficiencies to utilising

narration without due diligence to professional communication design and the fact

that storytelling is but one of a suite of strategies to effective stakeholder engagement,

as advocated by Denning (2006), Kaye (1996) and Harrison (2011).

5. Conclusion

The literature reviewed in this paper robustly supports the concept that corporate

storytelling has a powerful role to play as a PR internal communication strategy for

building stronger engagement within the organisation. Purposeful narration that leads

to deeper engagement has been shown to improve the potential for recollection, and

heighten loyalty as a more positive internal reputation strengthens a commitment to

the corporate brand. Studies and literature reviewed in this paper indicate the

alignment of individual culture with the organisation’s CSR values, leads to stronger

internal loyalty and enhanced CSR reputation, both internally and externally.

According to many of the theorists reviewed, corporate storytelling can amplify

awareness for the desired meaning and engender a culture consistent with the

organisation’s aspired values and brand, achieved through storytelling as it fosters a

linkage with individual interpretation. Culture shapes group members behaviour,

collective action, meaning and gives direction to employees work lives, according to

28
Johnston and Everett (2010). Corporate stories need to be carefully planned in

accordance with business objectives, and delivered through narration that reaches out

to the employees at a more individual level. Corporate stories encourage staff to take

ownership of the narration and align the meaning to their own experiences and beliefs.

This may activate employees as co-narrators of the corporate message, strengthening

their understanding of the brand values and fortifying internal reputation. Employees,

due to a stronger commitment and deeper understanding of the meaning, can

externally represent and communicate the brand and values for their employer more

effectively as they take ownership of the brand.

However, corporate storytelling is not a stand-alone answer to improving shared

meaning, employee engagement, and the embracing of CSR values for an

organisation, but forms part of a robust professional process for internal PR

communication.

29
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Appendix One

36
 2012 Corporate Communication Survey – Storytelling
Research Company: RJG Business Communication Services
Host: Survey Monkey http://www.surveymonkey.com/MySurvey_EditorFull.aspx?
sm=t_2FEGdHmrI2n6aYA8CLDsMgO5RfyDgSC9HwskQ8rDZRQ_3D
Sample: 100 office-based workers at various levels of management
Random: emailed to communication managers of organisations >500 staff in Sydney and
Melbourne CBD for random distribution among staff

What level do you consider your work role to be (have been)?

 Answered: 100
 Skipped: 0
Answer Choices Responses
Executive/Senior Management 37% 37
Middle Management 17% 17
Management/Team Leader 29% 29
Staff 17% 17

In terms of numbers, approximately how many staff report (or previously have
reported) to you
 Answered: 100
 Skipped: 0
Answer Choices Responses
0 13% 13
1-6 44% 44
7-15 18% 18
15-20 9% 9
21 and above 16% 16

Have you ever told a story or given an example from you own experience (or related a
colleague’s experience) to other staff? This could be work or personally related.
 Answered: 100
 Skipped: 0
Answer Choices Responses
Yes 99% 99
No 1% 1

Where does Storytelling rate with you as a strategy to communicate with staff?
 Answered: 100
 Skipped: 0
Answer Choices Responses
High 62% 62
Medium 30% 30
Low 8% 8

Please indicate if you have/would use stories and anecdotes at work to engage with
staff to (you may select more than one):
 Answered: 100
 Skipped: 0
Answer Choices Responses
Make staff feel more relaxed around you 83% 83
Demonstrate how to do something correctly 70% 70
Indicate that you have previously made mistakes 81% 81
Give an example to strongly reinforce a safety issue 31% 31
Motivate staff to improve 54% 54

37
 Answer Choices Responses
Open the conversation 64% 64
Total Respondents: 100

From the list below indicate what you believe telling stories within the workplace can
do (choose as many as you believe):
 Answered: 100
 Skipped: 0
Answer Choices Responses
Strengthen your working relationship with other staff 84% 84
Strongly reinforce a point you are trying to make 76% 76
Improve/strengthen staff trust 62% 62
Improve/strengthen staff loyalty 35% 35
Improve/strengthen staff commitment 40% 40
Open up the lines of communication between staff and management 83% 83
Make staff feel more relaxed around management and colleagues 73% 73
Improve understanding and comprehension 75% 75
Total Respondents: 100

How effective as a strategy to achieve your outcomes do you believe storytelling has
been/can be?
 Answered: 99
 Skipped: 1
Answer Choices Responses
Strong 63% 63
Medium 35% 35
Weak 2% 2

Your age
 Answered: 100
 Skipped: 0
Answer Choices Responses
18-25 1% 1
26-35 15% 15
35-45 29% 29
46 or above 55% 55

Your gender
 Answered: 100
 Skipped: 0
Answer Choices Responses
Male 49% 49
Female 51% 51

38