The Administrative Assistant’s Role in Promoting the Organization’s Goodwill.pptx

Module 1:
The Administrative Assistant’s Role in
Promoting the Organization’s Goodwill
Group 1
Mendonis, Aldrich
Miranda, Krizelle Anne
Blanca, Janet C.
Villanueva, John Lenon
Bellen, John Patrick

20XX presentation title 2
OBJECTIVES
At the end of this module, students are expected to:
• Appreciate the role of an Administrative Assistant in the
promotion of goodwill in the organization;
•
• Demonstrate familiarization on the different types of stakeholders;
•
• Able to properly apply the different strategies in promoting
goodwill on different situations.

OVERVIEW
DEFINING STAKEHOLDERS AND PUBLICS
Stakeholder and publics are two identical terms which are usually similar on various
situations, though it should not be. As we speak of stakeholders, we refer to individuals
who are recognized or acknowledged to be related in a particular business or
organization. On the other hand, Public is commonly used as speak of the people in
general who are recognized based on the messages they transmit or convey to
anybody.
As cited by Rawlins (2006), Freeman defined stakeholder in a wide sense as 5any
group or individual who is affected by or can affect the achievement of an
organization8s objectives. Another definition he gave was 5any identifiable group or
individual on which the organization is dependent for its continued survival. The latter
definition has covered a wide scope where groups who have interests in a particular
company are included

STAKEHOLDERS. The most quoted definition of a stakeholder in business literature is that
given by Freeman, who says a stakeholder is any group or individual who is affected by or can
affect the achievement of an organization’s objectives. This is what Freeman refers to as the
wide sense of a stakeholder; however, he also spoke of the narrow sense of a stakeholder when
he described it as, any identifiable group or individual on which the organization is dependent
for its continued survival. The definition has been expanded to include groups who have
interests in the corporation, regardless of the corporation8s interest in them.
PUBLICS. According to Laurie Wilson, there are three types of publics involved in
communication strategies: key publics, intervening publics, and influentials. Key publics are
those whose participation and cooperation are required to accomplish organizational goals. In
relation to the first two steps, they are the stakeholders who have the highest priority according
to their power/dependency/influence attributes, the urgency of the issue, and their level of
active involvement in the issue. In this model, the key publics are called priority publics. To
communicate effectively with these stakeholders, an organization must understand them as
much as possible. Priority publics can be profiled by their demographics, lifestyles and values,
media preferences, cooperative networks, and self-interests. Effective strategies appeal to the
self-interests of the priority publics and reach them through the most appropriate channels.

The intervening publics pass information on to the priority publics and act as opinion
leaders. Sometimes these publics, such as the media, are erroneously identified as
priority publics. If an organization is satisfied when the message stops at a public, then
it is a priority public. If the expectation is that the message will be disseminated to
others, it is an intervening public. In most cases the media are intervening publics.
Other influentials can be important intervening publics, such as doctors who pass
information on to patients, and teachers who pass information on to students. The
success of many campaigns is determined by the strength of relationships with
intervening publics.
Influentials can be intervening publics, but they also affect the success of public
relations efforts in other ways. Influentials can either support an organization8s efforts
or work against them. Members of some publics will turn to opinion leaders to verify or
refute messages coming from organizations. The opinion of these personal sources is
much more influential than the public relations messages alone. Therefore, successful
campaigns must also consider how messages will be interpreted by influentials that act
as either intervening or supporting publics.

What are the importance of
Stakeholders?

• Every business requires support. This
support is provided by the stakeholders of
the business in many forms. A person
alone cannot carry a business by oneself.
therefore, many people are involved in a
business – whether small or big.
Employees, owners, customers, and other
stakeholders together make a business
profitable.

2 TYPES OF STAKEHOLDERS
INTERNAL STAKEHOLDERS
Internal stakeholders are people whose interest in a company comes through a
direct relationship, such as employment, ownership, or investment.
EXTERNAL STAKEHOLDERS
External stakeholders are those who do not directly work with a company but are
affected somehow by the actions and outcomes of the business. Suppliers,
creditors, and public groups are all considered external stakeholders.

STAKEHOLDERS VS. SHAREHOLDERS
STAKEHOLDERS
Stakeholders are bound
to a company by some
type of vested interest,
usually for the long term
and for reasons of need.
SHAREHOLDERS
Shareholder has a financial
interest, but a shareholder
can also sell their stock in the
company; they do not
necessarily have a long-term
need for the company and can
usually get out at any time.

THE DIFFERENT TYPES OF STAKEHOLDERS
1. CUSTOMERS
Customers are actually stakeholders of a business, in that they are impacted by the quality of
service/products and their value.
2. EMPLOYEES
Employees have direct stake in the company in that they earn an income to support themselves,
along with other benefits. Depending on the nature of business, employees may also have a
health and safety interest.
3. INVESTORS
Investors include both shareholders and debtholders. Shareholders invest capital in the
business and expect to earn a certain rate of return on that invested capital. Investors are
commonly concern with the concept of shareholders value. Lumped in with this group are all
other providers of capital, such as lenders and potential acquirers.

4. SUPPLIERS
Suppliers are people or businesses who sell goods to your business and rely on you for revenue
from the sale of those goods.
In addition to looking out for their own revenue-generation, suppliers are also often concerned
with safety, since their products can directly impact your business’ operations.
5. CREDITORS
Creditors lend money to businesses, and they couls also have a secured interest in the
company’s worth. Creditors get paid back from the sale of products or services at your business.
In the event of a business shutdown, creditors get paid before stockholders.
6. COMMUNITIES
The community in which a business functions can be considered as another set of stakeholders.
Good businesses are considered an asset to any community.
Communities are major stakeholders in businesses because each party (your business and the
community) are mutually beneficial in different ways than, say, a supplier and your business.

7. TRADE UNIONS
A trade union (also called labor union) is an organization of workers in a particular industry that
exists to secure good improvements in pay, benefits, safe working conditions, or social and
political status through collective bargaining.
8. GOVERNMENT AGENCIES
Government agencies can also be thought of as a major stakeholder in a business. They collect
taxes from the company, its employees, and from other spending the company does.
9. MEDIA
Every business needs media publication relationships to spread the word about their brand.
Businesses often need to interact with press to make an important announcement or advertise
their product.
10. OWNERS
Owner stakeholders are the owners of an organization. They supply capital or equity to the
business and have a say in how everything runs. There can be multiple owners at a business, and
each owner would have equity in the business.

Understanding the different
Stakeholders

Understanding the different Stakeholders
In order to under the different stakeholders, identifying who they are and what are their relationship to an
organization. Certain criteria were made focusing on the characteristics of these stakeholders where a
model developed by Grunig and Hunt was presented to clearly understand these stakeholders.
Stockholders
Congress
State Legislators
Boards of Directors
Employees
Unions
Suppliers
Consumers
Industrial Purchasers
Retailers
Distributors
NGOs
Community residents
Voters
Media
Special interest groups
Competitors
Peer institutions
Associations
Political Groups
Professional Societies
Organization
Enabling
Linkage Input
Functional Linkages
Output
Diffused
Linkage
Normative
linkage

The model as presented is divided into four identifying the relationship of stakeholders to an
organization. These are:
1. ENABLING LINKAGES
The enabling linkages identify stakeholders who have some control and authority over the
organization, such as stockholders, board of directors, governmental legislators and
regulators, etc. These stakeholders enable an organization to have resources and autonomy
to operate. When enabling relationships falter, the resources can be withdrawn and the
autonomy of the organization restricted. The enabling linkages are dominant stakeholders by
definition, because groups such as stockholders and regulatory agencies have power over
the organization and their interests are usually legitimate. If the issue affecting enabling
stakeholders is urgent, then they become definitive stakeholders and would be given highest
priority.

2. FUNCTIONAL LINKAGES
Functional linkages are those that are essential to the function of the organization, and are
divided between input functions that provide labor and resources to create products or
services (such as employees and suppliers) and output functions that consume the products
or services (such as consumers and retailers). Functional input linkages, such as employees,
suppliers, and unions, have a legitimate claim on the organization and high levels of
involvement. They are economically dependent on the organization, and as such, the power
resides primarily with the organization. Therefore, the organization has a moral and legal
responsibility to those stakeholders that also increases their priority. The relationship of
employees is also critical to the effectiveness and efficiency of the organization.
Functional output stakeholders consume what the organization produces, and include
consumers, distributors, and retailers. Companies know that long-term customer relations are
necessary for financial success. Because these stakeholders have power, legitimacy, and
economic influence, any issue that imminently affects their relationship gives them high
priority. Savage, et al. considered consumers and employees as mixed blessing stakeholders
because they can be supportive or non-supportive depending on the actions of the
organization.

3. DIFFUSED LINKAGES
Diffused linkages are the most difficult to identify because they include stakeholders who do
not have frequent interaction with the organization, but become involved based on the actions
of the organization. These are the publics that often arise in times of a crisis. This linkage
includes the media, the community, activists, and other special interest groups.
Diffused stakeholders are the most problematic, because they do not have direct relationships
with the organizations. Because these stakeholders are reactive to organizational actions, they
are harder to predict and to recognize. Diffused stakeholders are usually situational and their
relationship temporary. These stakeholders do not have a lot of power over the organization,
and their legitimacy is sometimes suspect. What they have is urgency, making them a
demanding stakeholder under the model proposed by Mitchell et al. If they also have a
legitimate concern, they become dependent stakeholders and rise in priority. Because they
lack the power and direct influence of other stakeholders, diffused stakeholders will attempt to
affect the organization by working through members of the enabling or functional linkages.

4. NORMATIVE LINKAGES.
Normative linkages are associations or groups with which the organization has a common
interest. Stakeholders in the normative linkage share similar values, goals or problems and
often include competitors that belong to industrial or professional associations.
Normative linkages, such as competitors, have little direct power over the organization, but are
considered a non-supportive threat by Savage, et al. Most organizations devise ways to
eliminate competition them rather than foster positive relations. The only time competitors
become important for cooperative purposes is when the industry is facing an issue with
economic or regulatory impact, in which the peer organizations develop a contingency
compatible relationship until the issue is resolved. For example, chemical manufacturers may
rally together to fight increased environmental standards that would damage their profitability.

WHAT ARE THE BENEFITS OF
ENGAGING STAKEHOLDERS?

1.COMPETITIVE ADVANTAGE
Communicating directly with a stakeholder allows you to learn their perspective,
obtain valuable feedback to improve your products and services and also new
insights to help you gain a competitive advantage.
2.BETTER DECISION MAKING
An informed decision is the best decision. By canvassing opinions early on, you
avoid costly mistakes and improve the decisions you make in the future.
3.COST SAVINGS
Engaging with stakeholders can ultimately save time and money. Companies that
engage stakeholders improve their chances of finishing a project on time and on
budget. Savings may be from removing bottlenecks and foreseeing issues before
they happen.

4.RISK MANAGEMENT
Others may help you identify potential risks before they become threats to your
project or organization, which could save you resources and months of wasted
time.
5.FINANCIAL SUPPORT
Stakeholders can also help to protect your business interests. If there is a change
in government regulation that could negatively impact your company,

Strategies in promoting
goodwill

STRATEGY.
A means to an end (Oliver, 2009; Swanda Jr., 1990; Thompson, 1995).
The direction that the organization chooses to follow in order to fulfil its
mission. (Oliver, 2009; Bennett, 1996)
• Five uses of the word Strategy (Mintzberg et.al, 1998):
• a plan as a consciously intended course of action.
• a ploy as a specific manoeuvre intended to outwit an opponent or
competitors.
• a pattern representing a stream of actions.
• a position as a means of locating an organization in an environment.
• a perspective as an integrated way of perceiving the world.

GOODWILL.
friendly, helpful, or cooperative feelings or attitude: "the plan is dependent on goodwill
between the two sides.
“The established reputation of a business regarded as a quantifiable asset, e.g., as
represented by the excess of the price paid at a takeover for a company over its fair
market value. (Oxford Dictionaries)
Goodwill in the world of business refers to the established reputation of a company as a
quantifiable asset and calculated as part of its total value when it is taken over or
sold. It is the vague and somewhat subjective excess value of a commercial
enterprise or asset over its net worth. It is a vital component for increasing a
company8s customer base and retaining existing clients. It also attracts investors
and encourages stakeholders to forgive you if you make a mistake. When a
company is being acquired by another one for a premium value, that amount,
above what it is believed to be truly worth 3 its book value 3 is known as goodwill.
(Bennett,2020)

Goodwill 3 an intangible asset 3 is the value of business8
brand name, good customer relations, extensive customer
base, excellent employee relations and any proprietary
technology or patents. These assets are not separately
identifiable.
In a successful business, the whole is greater than the sum
of the parts. The difference between the value of the whole
and the sum of its parts is its goodwill. It is all about the
nature of the business and the ethics and integrity with
which people conduct their business. It is an honor that is
impossible to imitate.

But how do you actually build
customer goodwill? Can it
really be built?

Dr Nichols says that there are six levels you can go through to build
goodwill with a customer. He starts with the base level.
1) SERVICE SATISFACTION.
It goes without saying that unless the customer is satisfied with your back-up service,
goodwill will be severely dented, if not destroyed. Satisfaction is the baseline for
customers when it comes to how they view a company’s overall quality
2) UTILITY SATISFACTION.
That’s all-round satisfaction with the products, service and quality that is offered. If the
overall satisfaction is simply average, there won’t be much reason for the customer to
build goodwill. High levels of satisfaction with the performance of products is again the
baseline that you can build from.
3) BRAND COMMITMENT.
If they are committed to the brand, it’s natural that they will feel happy and contented
when they buy from you. Where does this commitment come from? It’s the element of
trust that is built up over time, as you offer consistency and care across the established
connections you have with customers.

4) RELATIONSHIP COMMITMENT.
When a client is committed to the relationship, they are more likely to see you as
a partner than as a supplier. This relationship level can make a huge difference in
they view you now and in the future.
5) FAIRNESS.
This means the client feels they are getting a fair reward for the long-term
relationship with you. This doesn’t just mean fair pricing structures, but also the
way they feel they are treated in general. Building goodwill in business is about
showing and demonstrating the fairness that customers expect.
6) PLEASURE.
This is the emotional connection they have with you and your company. If they
feel contentment in the relationship, they are less likely to look elsewhere for
price differentials. It makes them feel they are valued by you, as an individual and
as a company.

FACTORS CONTRIBUTING TO THE CREATION OF GOODWILL (BENNETT, 2020)
1. EXPECTATION OF FUTURE ECONOMIC BENEFITS
The owners of a company believe that it has additional value because they think
it will continue creating new products and services, attracting new customers,
and merging with other businesses.
• An asset is a resource with economic value that an individual, corporation, or
country owns or controls with the expectation that it will provide a future
benefit.
2. EXCESS BUSINESS INCOME
It Implies the existence of earnings in excess of a fair return on all the other
business assets. The belief is that this extra income is due to goodwill.

3. GOING CONCERN VALUE
It is the existence of business assets ready for use in generating
income. The value is created because the company can effectively
apply its financial resources & equipment, manpower, and
management to generate economic benefits for its owners.
• The amount that could be obtained by selling the business as a
whole, assuming that it will continue to operate and generate cash
flows in the future. if a well-known apparel company is a going
concern, it can continue to sell its brand-name clothing at a
markup for a profit.

Types of Goodwill
1. INSTITUTIONAL GOODWILL 3 THIS IS RELATED TO THE COMPANY, ITS
POSITION IN THE MARKETPLACE, AND HOW WELL IT SERVES ITS
CUSTOMERS.
• There are two distinct types of goodwill, namely the purchased goodwill and
inherent goodwill. There are three methods used for the valuation of goodwill:
Super Profits, Average Profits, and Capitalization Method.-the excess of
estimated future profit than the normal profit. -the total profit divided by
output.-the value of goodwill is calculated by deducting actual capital
employed from the capitalisation value of average profits based on the normal
rate of return.-Simple Average – In this process, goodwill evaluation is done
by calculating the average profit by the number of years it is called years
purchase. It can be calculated by using the formula. Goodwill = Average Profit
x No. of years' of purchase.

2. PROFESSIONAL PRACTICE GOODWILL - this relates to professional practices such as
engineers, accountants, lawyers, doctors, architects.
• setting up an interior design business, marketing your services, dealing with clients and
creating quotes and sourcing suppliers and contractors.Examples Conduct research.
Share your findings with stakeholders. Make your practices measurable. Be prepared to
implement change management techniques. Adjust best practices to fit the business.
Involve everyone within the organization. Get feedback from customers.
3. PRACTITIONER GOODWILL - this is related to the reputation and skill of the individual
professional.
4. Practice Goodwill - arises from the practice itself, its track record, institutional reputation,
location, and operating procedures.
• to improve the quality of life for people who have barriers to employment by providing
skills training and work opportunities.
• -Accountability (pananagutan).

THE MORAL BASES OF GOODWILL
The morally based efforts on the part of the responsible organization can lead to
mutually compatible responses from external recipients, i.e., customers, suppliers,
competitors, agents, etc. All of this hopefully will lead to intrinsic and extrinsic
benefits. The net results of the various positive ethical outcomes attributed to a
specific firm provide that firm with an enviable resource on which to capitalize. To the
accountant, such opportunities can be translated into financial values ? specifically
when the firm wishes to sell or combine itself with another firm. It should be quickly
noted that financial return should not be the main reason for espousing moral
standards, but, it can't hurt if financial benefits are a part of the larger picture. The
value of the firm's moral character (along with other attributes), however, can result in
a market value of the firm that is greater than the firm's net assets. This may be
construed as goodwill (Moss, 1981; Needles, 1989).

For generations to come, Goodwill will remain relevant to the communities we serve,
and exert a positive impact on the lives of thousands of people. Goodwill couples
greater self-reliance and an enterprising spirit with enthusiastic community support.
Strategies may differ from one organization to another. It is a usual
practice for strategy making to take place at three levels such as:
THE MACRO OR CORPORATE;
• macro enterprises' manage financial matters which is identified with the
country in general for a huge scope like the gross creation/production in a
year.
• A business strategy focuses on competing in the marketplace, while a
corporate strategy focuses on business growth and profits.

2. THE MICRO OR BUSINESS UNIT;
• Micro-enterprises' manage a specific industry or specific area, the connections of
firms and families inside the market
• A strategic business unit is a fully functional, independently operational setup of a
particular business. These units are active and have their vision, growth, and
direction. The main objective of such a unit is to maximize profits and mainly focus
on offering a particular product targeting a market segment.
3. THE INDIVIDUAL/TEAM OR OPERATIONAL LEVEL.
• An individual strategy consists of a person's goals, action plans, skill development,
personal branding, and self-assessment to achieve personal and professional growth.
• The operational level is the second lowest level of military command and control. It is
a division of an organization that is responsible for carrying out the day-to-day
operations of the organization. The operational level is responsible for ensuring that
the organization’s goals are met.

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