Identify the communication and then explain whether or not the speaker established credibility in a way that you trusted and that motivated you to listen to what they had to say. On the other hand, explain if they failed to establish or even lost credibility as they spoke. Be sure to provide specifics on how they did one or the other. Do you think their credibility or lack of credibility was specific to you or would it also be true for most people receiving the communication? Explain.
Chapter 1
Establishing Credibility
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
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Learning Objectives
1.1 Explain the importance of establishing credibility for business communications.
1.2 Describe how competence, caring, and character affect your credibility as a communicator.
1.3 Define and explain business ethics, corporate values, and personal values.
1.4 Explain the FAIR approach to ethical business communications.
© McGraw Hill
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Why Does This Matter?
Credibility
Your reputation for being trustworthy.
The degree to which others believe or trust in you.
© McGraw Hill
Credibility is your reputation for being trustworthy—trustworthy to perform your work with excellence; to care about those you work with and for; to live by high ethical, corporate, and personal values; and to deliver on your promises. In short, your credibility is the degree to which others believe or trust in you.
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The Role of Trust in the Post-Trust Era 1
What should you do when communicating?
Operate from a position of trust or credibility.
Gain trust or credibility from colleagues, clients, customers, and other contacts.
© McGraw Hill
Do you operate from a position of trust or credibility? That is one of the first things you should consider as you communicate. In the business world, you often start from a deficit of trust. As a result, one of your first goals should be to gain trust or credibility from colleagues, clients, customers, and other contacts.
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The Role of Trust in the Post-Trust Era 2
The Public
Increasingly views companies with less trust.
Companies
Also have a deficit of trust.
Employees often do not trust their own business leaders.
© McGraw Hill
The public also increasingly views companies with less trust. Approximately 85 percent of senior executives surveyed believe that public trust in business has gone down. A deficit of trust also exists within companies. Various surveys show that employees often do not trust their own business leaders. Just 51 percent of employees trust senior management, and only 36 percent of employees believe that their company leaders act with honesty and integrity. Furthermore, approximately 76 percent of employees have seen illegal or unethical conduct in the past 12 months at their jobs.
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Figure 1.1 A Look at Trust in Various Professions
Access the text alternative for slide images.
Source: Gallup, Inc.
© McGraw Hill
As depicted in Figure 1.1, the trust extended by the general public to business executives is far lower than the trust extended to members of other selected professions.
Note: Based on the percentage of American adults who considered members of these occupations “very high” or “high” in honesty and ethical standards in a November 2017 Gallup poll. Available at news.gallup.com/poll/224639/nurses-keep-healthy-lead-honest-ethical-profession.aspx.
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The Role of Trust in the Post-Trust Era 3
Post-Trust Era
The public overwhelmingly views businesses as operating against the public’s best interests.
Most employees view their leaders and colleagues with skepticism.
© McGraw Hill
In the post-trust era, the public overwhelmingly views businesses as operating against the public’s best interests, and the majority of employees view their leaders and colleagues with skepticism. Regarding the post-trust era, Michael Maslansky, a leading corporate communications expert, said, “Just a few years ago, salespeople, corporate leaders, marketing departments, and communicators like me had it pretty easy. We looked at communication as a relatively linear process.… But trust disappeared, things changed.”
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Figure 1.2 The Three Components of Credibility
© McGraw Hill
As a future manager and executive, you can control your reputation as a credible communicator by focusing on three well-established factors: competence, caring, and character. Research has shown that these three factors almost entirely account for whether a person is considered credible in professional situations. As depicted in Figure 1.2, credibility is like a three-legged stool. Without any one element, it is compromised.
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The Role of Competence in Establishing Credibility 1
Competence
The knowledge and skills needed to:
Accomplish business tasks.
Approach business problems.
Get a job done.
Most people will judge your competence based on your track record of success and achievement.
© McGraw Hill
Competence refers to the knowledge and skills needed to accomplish business tasks, approach business problems, and get a job done. Most people will judge your competence based on your track record of success and achievement. In her memoir, Meg Whitman explains how as a young professional she gained credibility and displayed competence within her organization: “I just focused on delivering results,” she said. “You have to excel at the tasks you’re given and you have to add value to every single project, every conversation where someone seeks your input.”
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The Role of Competence in Establishing Credibility 2
How Do You Establish Competence?
Through study, observation, and practice and real-world business experiences.
In the ways you communicate with others.
© McGraw Hill
People develop competence in many ways: through study, observation, and, most importantly, practice and real-world business experiences. Your entire business program is likely centered on developing competence in a certain business discipline or industry. You may already have significant business experience. If you’re a novice, seeking internships and jobs related to your discipline will help you develop competence. How you communicate directly affects how others perceive your competence.
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The Role of Competence in Establishing Credibility 3
Focus on Action
Emphasis on Results
© McGraw Hill
Throughout this book, you will find an emphasis on two traits associated with competence: a focus on action and an emphasis on results. A focus on action implies that you seize business opportunities. Meg Whitman emphasized this action-oriented approach to work: “The way I usually put it is, the price of inaction is far greater than the cost of making a mistake. You do not have to be perfect to be an effective leader, but you cannot be timid.” She also described an emphasis on results: “I don’t believe that all a company needs to do is declare that it has values and then say, ‘Trust us, we know what’s best.’ To be a success, you must identify a goal with a measurable outcome, and you must hit that goal—every day, every month, every year.”
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The Role of Caring in Establishing Credibility 1
Caring
Understanding the interests of others.
Cultivating a sense of community.
Giving to others and showing generosity.
© McGraw Hill
Your colleagues, clients, and even your customers will trust you far more if they know you care about them. As Mahatma Gandhi once stated, “The moment there is suspicion about a person’s motives, everything he does becomes tainted.” This statement applies in nearly all business circumstances: In the business world, caring implies understanding the interests of others, cultivating a sense of community, and giving to others and showing generosity. People distrust individuals who are perceived as unconcerned about the interests of others or disinterested in causes above and beyond themselves.
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The Role of Caring in Establishing Credibility 2
Understanding the Interests of Others
To gain credibility, show that you care for the needs of others.
Connect with others to gain trust.
Understand others’ needs, wants, opinions, feelings, and aspirations.
Develop an other-orientation.
© McGraw Hill
Your ability to gain credibility strongly depends on your ability to show that you care for the needs of others. Furthermore, your ability to show you care puts you in a rare position as a business leader. After all, less than half (42 percent) of employees believe that their managers care about them. Effective communicators gain trust by connecting with others—that is, seeking to understand others’ needs, wants, opinions, feelings, and aspirations. Virtually every aspect of communication you will focus on in this book relies on this other-orientation.
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The Role of Caring in Establishing Credibility 3
The Importance of a Sense of Community and Teamwork
Effective corporate business leaders recognize this.
Communicate using a “we” and “you” orientation.
Engenders trust and helps you find mutually beneficial solutions.
© McGraw Hill
The most effective business leaders in today’s corporate environment have generally risen to their positions because of their sense of community and teamwork. Throughout this textbook, you will see techniques for communicating your “we” and “you” orientation rather than a “me” orientation. Speaking about “our needs” or “your needs” as opposed to “my needs” engenders trust and helps you come up with solutions that achieve mutual benefit.
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The Role of Caring in Establishing Credibility 4
Giving to Others and Showing Generosity
Companies with higher percentages of givers have higher profitability, higher productivity, higher customer satisfaction, and lower turnover.
Being a giver opens up opportunities.
© McGraw Hill
Recent research has shown that most professionals can broadly be characterized as givers and takers. Givers are those professionals who go out of their way to help colleagues, respond to their requests and needs, and generously support others in the workplace. Takers are those professionals who frequently ask for favors from colleagues yet infrequently volunteer to help their peers in return. Dozens of studies in recent years show that organizations with more generous and giving employees perform better. Such companies achieve higher profitability, higher productivity, and higher customer satisfaction.
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The Role of Character in Establishing Credibility 1
Character
Staying true to commitments made to stakeholders.
Adhering to high moral and ethical values.
Central to creating trust.
© McGraw Hill
Character refers to a reputation for staying true to commitments made to stakeholders and adhering to high moral and ethical values. Character has always been important in business relationships, especially long-term, collaborative relationships. It is becoming even more important—especially for leaders—in an increasingly open, transparent, connected, and interdependent workplace.
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Figure 1.3 What Determines Trust in Individuals in the Workplace?
Access the text alternative for slide images.
Source: Economist Intelligence Unit.
© McGraw Hill
Character is central in creating trust. Consider the recent research, depicted in Figure 1.3. Business executives were asked what the most important determinants of trust in workplace projects were. Overwhelmingly, character-based traits—that is, honesty, ethical behavior, willingness to exchange information—ranked at the top.
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The Role of Character in Establishing Credibility 2
Business Ethics
The commonly accepted beliefs and principles in the business community for acceptable behavior.
Adhering to laws.
Safeguarding confidential or proprietary information.
Avoiding conflicts of interest and misuse of company assets.
Refraining from accepting or providing inappropriate gifts, gratuities, and entertainment.
Transparency is important in corporate communications.
© McGraw Hill
Business ethics are the commonly accepted beliefs and principles in the business community for acceptable behavior. At a minimum, business ethics involve adhering to laws; safeguarding confidential or proprietary information; avoiding conflicts of interest and misuse of company assets; and refraining from accepting or providing inappropriate gifts, gratuities, and entertainment.
Transparency involves sharing all relevant information with stakeholders. As defined by Transparency International, transparency “is a principle that allows those affected by administrative decisions, business transactions or charitable work to know not only the basic facts and figures but also the mechanisms and processes. It is the duty of civil servants, managers and trustees to act visibly, predictably and understandably.” You will soon be in leadership positions within your organization. You can create a transparent workplace by being accessible, acknowledging the concerns of others, and following through when you don’t have immediate answers.
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The Role of Character in Establishing Credibility 3
Trust-building behaviors include:
Extending trust.
Sharing information.
Telling it straight.
Providing opportunities.
Admitting mistakes.
Setting a good example by following rules.
© McGraw Hill
Trust-building behaviors include extending trust, sharing information, telling it straight, providing opportunities, admitting mistakes, and setting a good example by following rules.
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The Role of Character in Establishing Credibility 4
Corporate and Personal Values
Corporate values:
Stated and lived values of a company.
Personal values:
Values that individuals prioritize and adhere to.
© McGraw Hill
Corporate values are the stated and lived values of a company. The Society for Human Resource Management espouses corporate values as the essence of business ethics. It defines business ethics as “organizational values, guidelines, and codes,” and it emphasizes “behaving within those boundaries when faced with dilemmas in business or professional work.” Personal values are those values that individuals prioritize and adhere to.
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The Role of Character in Establishing Credibility 5
Code of Conduct or Code of Ethics
Sarbanes-Oxley Act of 2002 requires publicly traded companies to have a code of ethics available to all employees and to ensure that it is enacted.
© McGraw Hill
Most organizations have created a written code of conduct or code of ethics. Publicly traded companies are required by the Sarbanes-Oxley Act of 2002 to have a code of ethics available to all employees and to ensure that it is enacted. For example, eBay’s culture of trust is embodied in its Code of Business Conduct & Ethics. It encourages employees that “beyond complying with the law… [they] can Do the Right Thing.” It encourages them to “be open, honest and direct and conduct business with integrity” and “encourage open communication free from the threat of retaliation.” Aligning personal values with corporate values is an important element of character. After all, if one is living corporate values that do not match one’s personal values, then there is a lack of integrity.
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The Role of Character in Establishing Credibility 6
Open and Honest Communication
Avoid open and honest communication of business problems, employees doom a business to poor financial performance.
Dishonesty is among the primary reasons for lower employee morale.
Dishonesty can be reason for dismissal.
© McGraw Hill
By avoiding open and honest communication of business problems, employees doom a business to poor financial performance. Also, dishonesty is among the primary reasons for lower employee morale. Nearly six in ten employees say that they’ve left an organization because of lack of trust—the key reasons being lack of communication and dishonesty. Finally, dishonesty can be reason for dismissal. In some cases, dishonesty can destroy careers and even result in criminal charges.
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The Role of Character in Establishing Credibility 7
A Stakeholder View of Accountability
Implies an obligation to meet the needs and wants of others.
Involves an enlarged vision of those affected by your business activities.
Takes a stakeholder view that includes all groups in society affected by your business.
© McGraw Hill
A sense of accountability implies an obligation to meet the needs and wants of others. It also involves an enlarged vision of those affected by your business activities. It takes a stakeholder view that includes all groups in society affected by your business activities. Thus, a sense of accountability involves a feeling of responsibility to stakeholders and a duty to other employees and customers. By placing a rationale for accountability in your communications, you will generate substantial trust and goodwill from others.
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The Role of Character in Establishing Credibility 8
Fairness in Business Communications
The FAIR test helps you examine how well you have:
Provided the facts.
Granted access to your motives, reasoning, and information.
Examined impacts on stakeholders.
Shown respect.
© McGraw Hill
The FAIR test helps you examine how well you have provided the facts; how well you have granted access to your motives, reasoning, and information; how well you have examined impacts on stakeholders; and how well you have shown respect. As you respond to these questions, you ensure that your communications are fair to yourself and others.
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Figure 1.4
The FAIR Test of Ethical Business Communication
Access the text alternative for slide images.
© McGraw Hill
In all your communications, you should consider whether you are being fair to others. For routine communications, you make this calculation quickly. For important, less straightforward, and perhaps even controversial communications, you should spend a significant amount of time evaluating the best way to be fair. You might consider talking to your supervisor, peers, and other trusted individuals to appraise the situation.
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How You Can Improve Your Communication Skills
Establishing credibility will help you build high-trust relationships and communicate more effectively.
This textbook is designed to help you improve your communication skills.
© McGraw Hill
Establishing credibility allows you to communicate more easily and more influentially. Extensive research has shown that high-trust relationships lead to more efficient and superior work outcomes. In terms of ease of communication, credibility leads to less resistance from others, increased willingness to cooperate, and less likelihood of miscommunication. In high-trust relationships, since individuals willingly and freely give the benefit of the doubt, communication is simpler, easier, quicker, and more effective.
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Figure 1.5 Overview of Book
Access the text alternative for slide images.
© McGraw Hill
This textbook is designed to help you improve your skills in a variety of professional settings so that you can become a credible and trusted communicator. Overall, you may feel that you excel at some communication skills but not others. Regardless of your present skill level, this textbook gives you opportunities to deliberately and consciously elevate your communication skill set. It also gives you tools to continue developing your communication abilities over the course of your career. Figure 1.5 provides an overview of the topics we will cover in this textbook.
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Business Communication: Developing Leaders for a Networked World, 4e
Chapter 1
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
Because learning changes everything.®
www.mheducation.com
© McGraw Hill
Accessibility Content:
Text Alternatives for Images
© McGraw Hill
Figure 1.1 A Look at Trust in Various Professions – Text Alternative
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Trust is indicated from zero percent (low trust) to 100 percent (high trust). From highest to lowest, the professions are: nurses at 82 percent; military officers at 71 percent; grade school teachers at 66 percent; medical doctors at 65 percent; pharmacists at 62 percent; police officers at 56 percent; clergy at 42 percent; auto mechanics at 31 percent; newspaper reporters at 25 percent; bankers at 25 percent; lawyers at 18 percent; business executives at 16 percent; advertising practitioners at 12 percent; car salespeople at 10 percent; and lobbyists at 8 percent.
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© McGraw Hill
Figure 1.3 What Determines Trust in Individuals in the Workplace? – Text Alternative
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From highest to lowest, the character-based traits most important to business executives were: honesty, 77 percent; ethical behavior, 68 percent; exchanges information willingly, 63 percent; shared objectives, 53 percent; respectfulness toward others, 49 percent; expertise, 42 percent; positive attitude, 40 percent; motivation, 39 percent; consideration of others, 37 percent; ability to do the job well, 36 percent; communication skills, 36 percent; intelligence, 29 percent; experience, 23 percent; connectedness, 17 percent; and works for a reputable company, 12 percent.
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© McGraw Hill
Figure 1.4 The FAIR Test of Ethical Business
Communication – Text Alternative
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Facts. How factual is your communication? Have you presented the facts correctly? Have you presented all the relevant facts? Have you presented any information that would be considered misleading? Have you used the facts in a reasonable manner to arrive at your conclusions and recommendations? Would your audience agree with your reasoning?
Access. How accessible or transparent are your motives, reasoning, and information? Are your motives clear, or will others perceive that you have a hidden agenda? Have you fully disclosed how you obtained the information and used it to make your case? Are you hiding any of the information or real reasons for making certain claims or recommendations? Have you given stakeholders the opportunity to provide input in the decision-making process?
Impacts. How does your communication impact stakeholders? Have you considered how your communication impacts all stakeholders? Have you thought about how your communication will help or even hurt others? How could you learn more about these impacts?
Respect. How respectful is your communication? Have you prepared your communication to recognize the inherent dignity and self-worth of others? Would those with whom you are communicating consider your communication respectful? Would a neutral observer consider your communication respectful?
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© McGraw Hill
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Figure 1.5 Overview of Book – Text Alternative
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Chapter 1 covers establishing credibility.
Chapters 2 through 4 cover principles of interpersonal communication.
Chapters 5 through 16 cover principles for and types of business messages.
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© McGraw Hill
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