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CORPORATE COMMUNICATIE-AFDELING

Promotor: Prof. Dr. Geert Jacobs

Scriptie voorgelegd met het oog op het behalen van de graad

Master in de Meertalige Bedrijfscommunicatie

door Els Lamberts

Faculteit Letteren & Wijsbegeerte

Master-na-Master

Meertalige Bedrijfscommunicatie

Academiejaar 2006-2007

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Acknowledgments

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Dear reader,

Before I let you dive into this master‟s paper, I would like to thank a number of

people without whom this paper, my traineeship or the passed year would not

have been the same.

Thank you to everybody at the corporate communication department of

Tessenderlo Group – Geert Dusar, Michael Vandenbergen, Béatrice Maelfeyt

and Luc De Clerck – for their support, friendliness, patience and for making feel

like part of the team.

Thank you to Luc De Bie, for his ideas and for supporting us all year long. The MTB-

programme would not be complete without him!

Thank you to professor Geert Jacobs for his pointers on writing this master‟s

paper.

Thank you to my parents for their unceasing support and for giving me the

opportunity to enter the MTB-programme.

And finally, thank you to my fellow students who made the passed year an

unforgettable experience.

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Index

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Introduction .................................................................................................................................... 7

Chapter 1 Presentation of Tessenderlo Group ........................................................................... 9

1.1 A short introduction .......................................................................................................... 10

1.2 Short historic overview of Tessenderlo Group ............................................................. 10

1.3 Structure of the company .............................................................................................. 13

1.4 Corporate Identity ............................................................................................................ 14

1.5 Presentation of the product range ............................................................................... 18

1.5.1 Chemicals ................................................................................................................ 19

1.5.2 Plastics Converting ................................................................................................. 20

1.5.3 Specialities ............................................................................................................... 21

1.6 Profile of the customer .................................................................................................... 22

1.7 Overview of the primary competitors .......................................................................... 24

1.7.1 Bayer AG .................................................................................................................. 24

1.7.2 BASF AG ................................................................................................................... 25

1.7.3 Monsanto ................................................................................................................. 25

1.7.4 Rhodia ...................................................................................................................... 26

1.7.5 Lonza ........................................................................................................................ 27

1.7.6 Solvay ....................................................................................................................... 27

1.7.7 DSM ........................................................................................................................... 28

1.8 An outlook on the future ................................................................................................. 29

1.9 Tessenderlo Group as a 'good citizen' ......................................................................... 31

1.10 Conclusion – SWOT analysis ............................................................................................ 34

Chapter 2 How to enliven and communicate values: A theoretical framework ................ 35

2.1 What are values exactly? A number of definitions .................................................... 36

2.1.1 Values ....................................................................................................................... 36

2.1.2 Organizational culture .......................................................................................... 37

2.1.3 Core values ............................................................................................................. 38

2.2 Why do values matter? ................................................................................................... 39

2.3 Are values changeable? ................................................................................................ 41

2.4 Trends influencing attention for values and corporate culture .............................. 41

2.4.1 Internationalization ................................................................................................ 42

2.4.2 Corporate citizenship – Corporate Social Responsibility (CSR) ..................... 44

2.4.3 Growing importance of the „stakeholder‟-model ........................................... 45

2.5 How to communicate and enliven values? ............................................................... 47

2.5.1 Formulating values ................................................................................................. 47

2.5.2 Embedding the values within the organization ............................................... 49

2.5.3 The management as a role model ..................................................................... 53

2.5.4 Cases ........................................................................................................................ 54

Chapter 3 Thoughts on my traineeship ..................................................................................... 58

3.1 Organization of the corporate communication department of Tessenderlo

Group .................................................................................................................................. 59

3.1.1 Internal means ........................................................................................................ 59

3.1.2 External means ....................................................................................................... 60

3.2 My tasks during my traineeship at Tessenderlo Group .............................................. 61

3.2.1 Major tasks ............................................................................................................... 61

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3.2.1.2 Updating the welcoming brochure for new employees ........................... 62

3.2.1.3 Memo on communication of values ............................................................. 63

3.2.1.4 Memo on intranet .............................................................................................. 64

3.2.2 Smaller tasks ............................................................................................................ 65

Chapter 4 Concluding thoughts ................................................................................................ 67

4.1 Final Conclusion ................................................................................................................ 68

Bibliography ................................................................................................................................. 70

Appendix ............................................................................... Fout! Bladwijzer niet gedefinieerd.

OVERVIEW OF TABLES Table 1: Market postion of products .............................................................................................. 19

Table 2: Comparison between Tessenderlo Group and its maincompetitors ....................... 29

OVERVIEW OF FIGURES Figure 1: Distribution of the revenue of 2006 per business group ............................................. 14

Figure 2: Schematic presentation of the integrated production process of Tessenderlo

Group ................................................................................................................................................... 16

Figure 3: Distribution of the revenue of 2006 per consumption market .................................. 23

Figure 4: Distribution of the revenue of 2006 per country of destination ................................ 23

Figure 5: The „Looping‟-model for communication .................................................................... 52

Figure 6: BDO Stoy Hayward „Values at Work cube‟.................................................................. 55

Figure 7: Internal publications of Tessenderlo Group ................................................................. 60

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Introduction

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Earlier this year, when I had to start looking for a traineeship I realized that

working at the communication department of a company attracted me more

than doing my traineeship at an advertising agency or at a marketing

department. When I looked through the stack of proposals that Mr De Bie had

passed, the proposal of Tessenderlo Group immediately appealed to me. I liked

the job description because it combined internal and external communication.

The headquarters of the group are situated in Brussels – a city I did not have

much experience with – which was another appealing factor. The chemistry

activities of the company did not scare me. In fact, I thought it would be

interesting to see how the corporate communication department deals with

environmental and social responsibility issues.

Soon after I sent my application letter, I was invited to the offices in Brussels. I had

a nice conversation with Mr Vandenbergen, who explained me what my tasks

would be. On the first day of my traineeship I was greeted by Mrs Maelfeyt. She

cordially welcomed me, introduced me to her colleagues, showed me to my

desk and gave me the chance to get acquainted with the company. I also got

an e-mail of Mrs Dusar – who was away on business at the time – to welcome me

and to assign me my first task. I really enjoyed my time at Tessenderlo Group and

I think I could not have wished for a better traineeship.

This master‟s paper is composed of four chapters. The first chapter consists of a

presentation of Tessenderlo Group, its products, its competitors and its customers.

In this chapter I will also shine a light on the initiatives Tessenderlo Group has

developed to take on its social responsibility – an important issue for a chemical

company – and I will draw the future of the company.

In the second chapter I will provide a theoretical framework on how to

communicate an enliven values in a company, a subject that is linked to one of

the tasks I was assigned during my traineeship.

In the third chapter I will discuss how I experienced my traineeship, after a short

introduction of the corporate communication department of Tessenderlo Group.

I will end this master‟s paper with a final conclusion that illustrates what I have

learned from my traineeship and from the MTB-programme.

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Chapter 1 Presentation of

Tessenderlo Group

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1.1 A short introduction

Tessenderlo Group is a quoted Belgian company. The group is internationally

active in different branches of the chemical industry and plastics converting.

Tessenderlo Group counts almost 8,200 employees worldwide and has more than

100 facilities in 21 countries. The company is active in Europe, North and South

America, Canada and Asia. In Belgium, Tessenderlo Group employs over 2,000

employees. The company has a turnover of over 2 billion euro. Due to

exceptional costs the company suffered for the first time a loss of 24.3 million

euro in 2006. The group is world leader and European market leader for most of

its products (Tessenderlo Group, 2007a: x and Tessenderlo Group, 2007b: 1, 10,

12-13).

1.2 Short historic overview of Tessenderlo Group1

To give you some insight into how Tessenderlo Group has evolved throughout the

years, I will provide a short historic overview.

1 Sources: Tessenderlo Group, 2007a: x; Tessenderlo Group, s.d. (a), online document and

Tessenderlo Group, s.d. (b), online document.

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In 1929 the company made

another strategic decision by

agreeing to a joint venture with a

French owner of potassium mines

who was looking for a factory to

produce potassium sulphate. This

new factory opened its doors in

1931 and was located along the

Albert canal in Ham. To this day,

the factory still exists. The sulphate

division remains at the heart of

the plant, next to the sulphuric

acid and phosphates division.

In 1969 LVM (Limburgse

Vinyl Maatschappij) was

founded as a joint

venture with a Dutch

partner. Nowadays, LVM

is one of the biggest mvc-

factories in Europe. Mvc

serves as a raw material

for pvc, which is

manufactured in two of

Tessenderlo Group‟s

subsidiaries in The

Netherlands and France.

PB Gelatins in Vilvoorde

became a part of

Tessenderlo Group in

1964. Today, the factory

is one of the world‟s

leading-edge gelatine

factories.

By 1930 the company

counted almost 1,000

employees and 80% of

the production was

being exported all over

the world. The

company adopted a

diversification strategy

with the production of

toluene and glycine.

° 1892 1930 1929 1964 1969

The roots of Tessenderlo Group lie in the Belgian

village of Tessenderlo, as the company‟s name

already suggests. It was there that in 1892, two

French brothers began the exploitation of sulphate

ovens. The ovens produced sodium sulphate and

hydrochloric acid as a by-product, the latter of

which was used in the paper, glass and detergents

industry. During the first world war the production

continued, although the focus shifted towards the

production of sodium carbonate and sodium

hydroxide. Soon after the first world war, the

company was taken over by a Walloon investor.

He managed to expand the company by

producing sulphuric acid, sulphates, phosphates

and electrolysis products.

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1983 1996 2001 2004 2006

In the fifties the company began

to adhere to a development and

diversification strategy that

continued until the eighties. In

1983 the different units merged

into „Tessenderlo Chemie NV‟ and

the group‟s major areas of activity

were established.

Since 1996 the

headquarters of

Tessenderlo Group

are located in

Brussels.

In 2001 the management

decided to officially adopt the

name „Tessenderlo Group‟,

instead of „Tessenderlo

Chemie‟. However, the shares

of Tessenderlo Group are still

listed on the Brussels Stock

Exchange under the name of

„Tessenderlo Chemie‟.

In 2004 EMC – up until

then Tessenderlo Group‟s

major shareholder – sold

a part of its shares to

institutional investors. The

rest of the shares was

transferred to a holding

owned by the French

government. Since 2007

this holding owns 25.96%

of the shares. 54.32% is

free float and the

remaining part is owned

by various other parties.

In 2006 the new electrolysis

unit (ELY III), using state of the

art membrane technology,

was inaugurated at the

Tessenderlo Chemie plant in

Tessenderlo.

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1.3 Structure of the company2

Tessenderlo Group consists of three business groups (Chemicals, Plastics

Converting and Specialities), which are in turn subdivided in eight business units.

Tessenderlo Group runs a total of 63 production units worldwide. The group is

mostly present in France, with 27 production units. The sales activities of

Tessenderlo Group are managed by sales offices all over the world. In Belgium

Tessenderlo Group has, next to the administrative headquarters in Brussels,

production units scattered across the country.

The Chemicals business group has sites in:

o Tessenderlo (pvc & chlor-alkali);

o Ham (mineral chemistry);

o Engis (zeolites).

The Plastics Converting business group has sites in:

o Oeselgem (Wymar International, a manufacturer of pvc-profiles);

o Overpelt (Dyka Plastics, a manufacturer of plastic pipe systems).

The Specialities business group has units in:

o Vilvoorde (PB Gelatins);

o Tessenderlo (fine chemistry).

2 Sources: Tessenderlo Group, 2007b: 3, 12-13 and Tessenderlo Group, 2007a: x.

Chemicals

Inorganics

Pvc/Chlor-

Alkali

Plastics

Converting

Profiles

Plastic Pipe

Systems

Compounds

Specialities

Fine Chemicals

Gelatin

Natural

Derivatives

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Distribution of the revenue of 2006 per business group

42%

34%

24%

Chemicals

Plastics Converting

Specialities

FIGURE 1: DISTRIBUTION OF THE REVENUE OF 2006 PER BUSINESS GROUP

(SOURCE: TESSENDERLO GROUP, 2007B: 3).

This graph shows that in terms of revenue the Chemicals business group is the

most important one, before Plastics Converting and Specialities.

1.4 Corporate Identity

Tessenderlo Group‟s corporate identity consists of a mission, objectives and a

strategy.

The group states its mission as follows:

“Tessenderlo Group has essentially based its development on the integration of its

core activities, on technical mastership and on permanent care for an increase in

productivity. The group‟s strategy also involves operating in niche markets, where

it has a significant market share in products with high added value.

The group is committed to further expanding its business, principally through

innovation and acquisitions of companies. This calls for the strictest compliance

with the legitimate requirements of all the parties involved.

The financial strength of Tessenderlo Group is therefore the result of the followed

strategic course and of the flexibility and speed with which external challenges

are dealt with.

In a rapidly changing environment, the group will continue to demonstrate the

legitimacy of its industrial and financial coherence by constantly adjusting its

resources to the structures, internal processes and working methods of all

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interested parties. This is the best way of safeguarding the group‟s unity”

(Tessenderlo Group, s.d. (c), online document).

The „Target 2007‟ recovery programme is an example of how Tessenderlo Group

tries to adjust to the changing market. This programme will be discussed in

paragraph 1.8. The recent selling of the flavouring and food activities3 and the

new strategic plan (see paragraph 1.8) are other illustrations of how Tessenderlo

Group deals with changing reality.

Tessenderlo Group‟s mission can be brought down to four objectives. Tessenderlo

Group makes sure to devote its maximum attention to the environment and

health of every individual inside and outside the company. The group also aims

to offer its customers quality products and an outstanding service. Furthermore,

Tessenderlo Group wants to create a working environment in which teamwork

plays a central role and in which the employees can develop themselves on a

personal level. Lastly, the group also pays attention to achieving a stable profit,

in order to strengthen the shareholder‟s confidence (Tessenderlo Group, s.d. (c),

online document).

To achieve these objectives the group has worked out a strategy. This strategy

involves taking advantage of its industrial integration. This way the company can

consolidate the position of its products and expand its product line. Boosting the

development of the Plastics Converting activities in Europe and strengthening

the group‟s position in the top of the gelatine field are other strategic elements.

Tessenderlo Group also plans to continue its striving towards a leadership position

in niche markets and its policy of developing activities that combine service

providing and the valorisation of by-products (Tessenderlo Group, 2007b: 11).

The valorisation principle implies that the production of the different chemicals

and substances is closely interrelated. Chlorine and hydrochloric acid are two

crucial substances in the production chain. Tessenderlo Group has reached this

stage of integration by continuously re-using the by-products of the basic

production process (Tessenderlo Group, 2007a: x).

3 For more information: see the press release „Tessenderlo Group sells its flavouring and

food ingredients activity” on http://www.tessenderlogroup.com/.

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FIGURE 2: SCHEMATIC PRESENTATION OF THE INTEGRATED PRODUCTION PROCESS OF TESSENDERLO GROUP

(SOURCE: TESSENDERLO GROUP, S.D. (D), ONLINE DOCUMENT).

Tessenderlo Group has developed a number of business principles which serve as

core values for the whole group. These values are laid down in a charter and

provide guidelines for an optimal working environment. Corporate decisions and

actions are carried out with the charter as a source of inspiration. It is important

to note that these values were drafted with the help of the employees

(Tessenderlo Group, s.d. (e), online document).

1. Every member of staff is unique and valuable

This statement implies four things. First of all, it means that the attitude among co-

workers should be based on mutual trust and respect for the opinions, values and

choices of others. Secondly, all discrimination is deemed unacceptable, whether

it is based on grounds of sex, age, physical or mental, abilities, ethnic origin,

sexual orientation or appearance. Thirdly, all employees should behave honestly,

fairly and responsibly when dealing with co-workers or third parties. Lastly, all

employees should get the opportunity of personal development. Therefore,

particular attention is given to training, career development, individual skills and

recruitment policy (Tessenderlo Group, s.d. (e), online document).

2. Open and clear communication for everyone

This value calls for clear and transparent communication, because “a good

working relationship requires frank dialogue, mutual understanding and accurate

information.” Every employee should be able to give constructive opinions on

procedures, working methods and the circumstances of his or her working

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environment, because “we can all learn by sharing expertise, experience and

working methods” (Tessenderlo Group, s.d. (e), online document).

Tessenderlo Group has developed many initiatives that bring this value into

practice:

o Via the online forum “FORUM” all European employees of the Chemicals

business group get the chance to ask questions, even about the

remuneration of the management, as I noticed during my traineeship. The

communication department guarantees that the question will be

answered within three days.

o The new values of the Chemicals business group will be discussed in

soundboard groups consisting of employees of all levels of the business

group.

o Information sessions are regularly repeated to give every employee the

chance to attend to these sessions (Interview with Geert Dusar, 22nd june

2007).

o The top management personally explained the progress of the recovery

plan "Target 2007" to all employees (BVB, 2007, online document).

However, to reach an “open and clear communication” some points still need to

be improved. The bottom-up communication is one focal point. Employees

complain that the management sometimes takes over their ideas without

acknowledging them. Employees also would like to get more compliments and

less criticism. The information flow between different departments is also open for

improvement (Interview with Geert Dusar, 22nd june 2007).

3. Concern for health, hygiene, safety and the environment

Tessenderlo Group‟s activities depend on a sound policy relating to health,

hygiene, safety and the environment. This is the common responsibility of all staff

members. Initiatives will be taken to protect environment and to promote health

and safety in the workplace. Sound technology and research will be used to

ensure that the products are as qualitative as possible (Tessenderlo Group, s.d.

(e), online document).

The various initiatives aimed at the local community and to preserve the

environment are an illustration of the importance of this value for the company.

These initiatives are further described in paragraph 1.9.

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4. Respect and responsibility for resources entrusted to the employee

In order to achieve productivity, Tessenderlo Group provides all its employees

with the resources needed to properly perform their tasks. Each employee is

responsible for using these resources with care and attention. Thus, misuse of

these resources is unacceptable (Tessenderlo Group, s.d. (e), online document).

5. Respect for and compliance with legislation

“Tessenderlo Group is firmly committed to compliance with all statutory

requirements and undertakes its business activities with due integrity.” All

employees must comply with relevant legislation, rules and regulations. The

company only deals with third parties that comply with the legislation

applicable to them (Tessenderlo Group, s.d. (e), online document).

6. Prevention of conflicts of interest

7. Handling confidential information carefully

8. A positive attitude

1.5 Presentation of the product range

Tessenderlo Group fabricates a wide range of products that have an even wider

range of applications. In every area of daily life, one can find products of

Tessenderlo Group, although many consumers might not be aware of this.

Hence, Tessenderlo Group‟s tagline „It‟s all about chemistry‟.

To give a transparent overview of Tessenderlo Group‟s most important products, I

will divide them according to the business group or business unit the products are

produced by. I will mostly treat these products for which Tessenderlo Group holds

an important place in the world market. These products are summed up in the

following table.

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Chemicals

Inorganics

Liquid Sulphur Fertilizer 1st place worldwide

Hydrochloric Acid 1st place worldwide

Potassium sulphate 2nd place worldwide

Feed phosphates 2nd place worldwide, 1st

place in Europe

Pvc/Chlor-alkali

Sodium Hydrosulphide 1st place worldwide

Caustic Potash 1st place in Europe

Pvc 6th place in Europe

Plastics converting

Plastic Pipe Systems 1st place in Benelux

Compounds 4th place in Europe

Specialities

Fine Chemicals

Benzyl Chloride 1st place worldwide

Benzyl Acetate 1st place worldwide

Benzyl Alcohol 1st place worldwide

Alpha-Hexylcinnamaldehyde 1st place worldwide

Phenylacetic acid 1st place worldwide

Triacetin 2nd place worldwide

Glycine 1st place in Europe

Gelatin 3rd place worldwide

TABLE 1: MARKET POSTION OF PRODUCTS

(SOURCE: TESSENDERLO GROUP, 2007C: X).

1.5.1 CHEMICALS

The Chemicals business group consists of two business units: inorganics and

pvc/chlor-alkali. Although the business group produces a wide variety of

products, the production process is integrated as much as possible, so that the

end products and by-products can be valorised internally. This way the business

group creates maximum added value (Tessenderlo Group, 2007b: 20).

o Inorganics

The inorganics business unit is the world‟s biggest producer of liquid sulphur

fertilizers and hydrochloric acid. The former product is mainly used in the United

States for large-scale crops, tree and vegetable nursery. The latter product is a

by-product of the production of sulphates and is internally valorised via the

production of phosphates and vcm. It is also widely used for pickling steel sheets,

for the production of gelatine and for waste water treatment.

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The phosphates are mainly used in the animal feed industry as feed phosphates.

Potassium sulphate is another important product and is used as a fertilizer.

o Pvc/chlor-alkali

This business unit produces polyvinyl chloride or pvc. The main raw material for

the production of pvc is vcm (vinyl chloride monomer), which is made out of

chlorine or hydrochloric acid and ethylene. The production of vcm and the

eventual polymerisation to pvc take place in different facilities of Tessenderlo

Group. Pvc is one of the most versatile plastic resins in the world. It can be used

for a wide variety of applications such as plastic pipe systems, window and door

profiles, films and sheathings for cables and wires.

Next to vcm and pvc, this business unit also produces a wide range of electrolysis

products. The most important products in terms of market share are Sodium

Hydrosulphide and Caustic Potash. Sodium Hydrosulphide is used in the mining

and paper industry, for leather tanning, for hair removal, for textile dying, for

photography and for chemical processing. Caustic Potash has applications in

the production of detergents, fertilizers, insecticides and herbicides, pigments,

batteries, bio-diesel and in the photographic, pharmaceutical and rubber

industry (Tessenderlo Group, s.d. (f), online document; Tessenderlo Group, 2007b:

20-26 and Tessenderlo Group, 2007c: x).

1.5.2 PLASTICS CONVERTING

This business group comprises three business units, namely profiles, plastic pipe

systems and compounds.

o Profiles

The Profiles business unit manufactures pvc-profiles for windows, doors, fences

and verandas, façade cladding and industrial applications.

o Plastic Pipe Systems

The Plastic Pipe System business unit produces pipe systems in polyvinyl chloride

(pvc), polypropylene (pp) and polyethylene (pe) which are used in the building

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industry (pipes for sewage and rainwater discharge), in the public works (ducts

for drinking water, gas and telecom), in industry and in agriculture.

o Compounds

The Compounds business unit makes ready-to-use mixtures made of pvc or

thermoplastic elastomers. These are used for electrical cables, shoe soles and in

the car industry (airbag covers are made of these mixtures). Tessenderlo Group

offers a special product line called Marvyflo® that meets the requirements of the

automotive industry. Nearly one in four European cars has a dashboard made of

Marvyflo® (Tessenderlo Group, s.d. (f), online document; Tessenderlo Group,

2007b: 30-36; Tessenderlo Group, 2007c: x and Tessenderlo Group, 2007a: x).

1.5.3 SPECIALITIES

This business group has three business units: fine chemicals, gelatin and natural

derivatives.

o Fine Chemicals

Fine chemicals has a leading position in the field of organic chlorine derivatives

such as Benzyl Chloride, Benzyl Acetate, Benzyl Alcohol, Alpha-

Hexylcinnamaldehyde (HCA), Phenylacetic acid and Triacetin.

Benzyl chloride is used, inter alia, as a pharmaceutical intermediate and for the

production of pesticides. Benzyl Acetate is the main component of gardenia

and jasmine oils. It is one of the most important flavour and fragrance chemicals

in terms of volume. Benzyl Alcohol is used in ballpoint pen inks, car paint and

paint strippers, for photo development and in the pharmaceutical industry. Small

amounts of Benzyl Alcohol can be found in baby oils and suntan lotions, as well

as in perfume, soap and cosmetics. HCA is used to add fragrance to perfumes

and toiletries. Phenylacetic acid is used in the pharmaceutical industry for

producing penicillin and Triacetin can be found in adhesives, textiles and

flavourings.

The Fine Chemicals business unit also produces glycine which you can find in

regular food, pet food, pharmaceuticals and agrochemicals.

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o Gelatin

The gelatin business unit derives gelatine from the bones and skins of pigs and

cattle. Gelatine is mainly used in the food industry (for example in candy, dairy

products, margarine and light products). The product is also used in the

pharmaceutical industry (for instance to make capsules). One can also find

gelatine in film and photographic paper and in shampoo.

o Natural Derivatives

The natural derivatives business unit is active in collecting and processing animal

by-products, mainly in France. These by-products are processed into animal fats

that are used in soaps, pet food and bio-diesel and into meat and bone meal for

waste treatment and pet food. Other activities include the processing of bones

for the production of gelatine and proteins for use in pet food or fertilizers

(Tessenderlo Group, s.d. (f), online document; Tessenderlo Group, 2007b: 40-46

and Tessenderlo Group, 2007c: x).

1.6 Profile of the customer

The notion of 'customer' is quite ambiguous for Tessenderlo Group as the

customers of the company often also are its competitors. With a turnover

amounting to two billion euro, Tessenderlo Group is one of the smaller players in

the chemicals business. Instead of competing with the major companies,

Tessenderlo Group chooses to focus on niche-markets where it can excel and

get a bigger market share for products with high added value. The major

companies often are in need of these niche-products as raw materials for their

own chemicals and therefore call on Tessenderlo Group.

Tessenderlo Group is merely active on the business-to-business market. All of its

products are made to be used by other companies such as chemical and

pharmaceutical companies, farmers, carpenters, etc. A business-to-consumer

client can buy a plastic pipe at one of the depots of Wymar, but the envisaged

target group of these pipes is the building industry (Interview with Geert Dusar,

22nd june 2007).

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Distribution of the revenue of 2006 per consumption market

46%

24%

20%

7% 3%

Building Industry &

Public Works

Industry

Fertilisers & Animal

Nutrition

Health & Hygiene

Household

FIGURE 3: DISTRIBUTION OF THE REVENUE OF 2006 PER CONSUMPTION MARKET

(SOURCE: TESSENDERLO GROUP, 2007B: 3).

This graph shows that the building industry is the biggest consuming market for

Tessenderlo Group in terms of revenue. The health and hygiene companies and

the manufacturers of households products are Tessenderlo Group's smallest

groups of customers in terms of revenue.

Distribution of the revenue of 2006 per country of

destination

19%

16%

9%9%7%

4%

11%

6%

10%9%

France

Great Britain

Germany

The Netherlands

Belgium

Italy

USA

Other European countries

Other countries

Other EU countries

FIGURE 4: DISTRIBUTION OF THE REVENUE OF 2006 PER COUNTRY OF DESTINATION

(SOURCE: TESSENDERLO GROUP, 2007B: 3).

This graph indicates that Tessenderlo Group's biggest customers (in terms of

revenue) are French and British.

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1.7 Overview of the primary competitors

In what follows I will give an overview of some of the main competitors of

Tessenderlo Group. It is not easy to list the competitors. I was told that even within

the company few people have a complete overview of the competition. This is

easy to understand as competitors differ according to the different business

groups or even according to the individual products. The list I provide below is

based on the interview I had with Mrs Dusar. It is important to note that the list

should not be considered exhaustive; it solely introduces the biggest, most

obvious competitors, namely Bayer, BASF, Monsanto, Rhodia, Lonza, Solvay and

DSM. It is also important to note that these competitors can be clients of

Tessenderlo Group just as well.

1.7.1 BAYER AG

Bayer AG is a German group with headquarters in Leverkusen. The company

consists of three subgroups – Bayer HealthCare AG, Bayer CropScience AG and

Bayer MaterialScience AG – which operate independently, but are led by the

holding company.

Bayer HealthCare manufactures products for prevention, diagnosis and cure of

diseases for both people and animals. Bayer CropScience makes products for

crop protection and non-agricultural pest control. This subgroup is also active in

the sector of seeds and genetically optimized properties. Bayer MaterialScience

produces high-performance materials such as polymers (polycarbonates and

polyurethanes) and materials for coatings, adhesives, insulating materials and

sealants.

Bayer is present in its home market Europe, in North and South America, in the

Middle East, in Africa and in the Asia-Pacific region, which is the most important

future market.

In 2006 the company reached sales of 28,956 million euro and made a profit of

13,681 million euro. Bayer employs 105,100 people worldwide (Bayer AG, 2007a,

online document; Bayer AG, 2007b, online document and Bayer AG, 2007c,

online document).

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1.7.2 BASF AG

BASF AG comprises five segments: Chemicals, Plastics, Performance Products,

Agricultural Products & Nutrition and Oil & Gas.

Chemicals offers a wide range of chemical products such as inorganics,

petrochemicals, specialities and plasticizers. These chemicals are mostly used in

the pharmaceutical industry, construction, the textile industry and the

automotive industry. Plastics produces polystyrene, polyamide intermediates and

polyamide and polyurethane.

Performance Products provides amongst others raw materials for detergents,

textile chemicals, chemicals for leather treatment, monomers, coatings and

paper chemicals. Agricultural Products & Nutrition provides herbicides,

insecticides, fungicides, vitamins, pharmaceutical ingredients, cosmetic

ingredients and flavour and fragrance chemicals to the farming, food

processing, pharmaceuticals, animal and human nutrition and personal care

industries. Oil & Gas produces crude oil and natural gas.

The headquarters of BASF are situated in Ludwigshafen (Germany), but BASF has

production and sales facilities in all regions. North America, South America and

Asia are becoming increasingly important for BASF. In 2006 the sales reached

52,610 million euro, while the profit amounted to more than 14,912 million euro.

BASF counts about 95,000 employees worldwide (BASF AG, 2007, online

document; BASF AG, s.d. (a), online document; BASF AG, s.d. (b), online

document; BASF AG, s.d. (c), online document; BASF AG, s.d. (d), online

document; BASF AG, s.d. (e), online document and BASF AG, s.d. (f), online

document).

1.7.3 MONSANTO

The structure of Monsanto consists of two segments: Seeds & Genomics and

Agricultural Productivity.

Seeds & Genomics comprises the production of seeds for large-acre crops like

corn, cotton or oilseeds and small-acre crops like vegetables, the supply in in-

the-seed trait technologies and genetic technology platforms. Agricultural

productivity consists of crop protection products, herbicides and animal

agricultural businesses.

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Monsanto‟s headquarters are situated in St. Louis (US). The company has facilities

in 61 countries and employs 17,000 employees. In 2006 the sales amounted to

7,344 million dollar and the company achieved a profit of 3.55 billion dollars

(Monsanto, 2007, online document; Monsanto, s.d. (a), online document and

Monsanto, s.d. (b), online document).

1.7.4 RHODIA

Rhodia consists of seven enterprises, comprised in three clusters: Performance

Materials, Functional Chemicals and Organics & Services.

The Performance Materials cluster supplies cellulose acetate fibre, which is used

in the production of cigarettes. This cluster also produces polyamide,

engineering plastics and high-strength fibres and filaments.

The Functional Chemicals cluster incorporates the surfactants, phosphorus

derivatives, natural polymers and specialty polymers and monomers produced

by Rhodia. These products are used in the cosmetics, detergent, metal

treatment, oilfield services and agrochemical industries, as well as in the

treatment of water and of textiles. The Silica activities of the company are also a

part of this cluster.

The Organics & Services cluster specializes in regenerating spent sulphuric acid

and producing sulphuric acids and sulphur derivatives. The cluster also produces

diphenols and derivatives for flavour and fragrance applications and

isocyanates for the industrial paint markets. It also focuses on salicylates (aspirin),

fluorinated compounds and derivatives for catalysis and TDI (toluene

diisocyanate). This cluster is also dedicated to the reduction of greenhouse

gases.

Rhodia is a French company, headquartered in Courbevoie. The company is a

worldwide player with sites in Europe (its most important market in terms of sales),

the Asia-Pacific region, North America and Latin America. The company has a

workforce of 16, 000 employees. In 2006 the sales amounted to 4,810 million euro

and the company made a profit of 62 million euro (Rhodia, 2007, online

document; Rhodia, s.d. (a), online document; Rhodia, s.d. (b), online document

and Rhodia, s.d. (c), online document).

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1.7.5 LONZA

The Swiss company Lonza, with headquarters in Basel, consists of two divisions:

Exclusive Synthesis & Biopharmaceuticals and Organic Fine & Performance

Chemicals.

The Exclusive Synthesis & Biopharmaceuticals division focuses on chemical

synthesis and microbial fermentation and is a manufacturer of chemical

ingredients for the pharmaceutical industry. This division also specializes in

microbial fermentation and mammalian cell culture.

The Organic Fine & Performance Chemicals division produces chemicals which

are used in nutrition, hygiene, personal care, water treatment, wood

preservation and selected industrial markets.

In 2006 Lonza‟s sales came to 2,914 million CHF and the profit amounted to 85

million CHF. The company has a workforce of 6,146 employees, working in

Europe, Australia, Asia and America (Lonza, 2007, online document and Lonza,

s.d., online document).

1.7.6 SOLVAY

Solvay is a Belgian company, headquartered in Brussels and active in three main

sectors: Pharmaceuticals, Chemicals and Plastics.

Solvay is, with its Pharmaceutical division, one of the leading pharmaceutical

companies worldwide. The Chemicals division consists of four major clusters: the

Mineral cluster (built around soda ash and advanced functional minerals), the

Electrochemicals and Fluorinated Products cluster, the Oxygen clusters (with

hydrogen peroxide, detergents and caprolactones) and the Organic cluster

(molecular solutions). The Plastics division focuses on polymers and vinyls (pvc

resins) and markets finished plastic products such as pipes, fitting systems, fuel

systems and films.

Sovay is present in Europe, Russia, the Americas and the Asia-Pacific region and

its sales added up to 9,399 million euro in 2006. The company has 29,258

employees worldwide (Solvay, 2007, online document; Solvay, s.d. (a), online

document; Solvay, s.d. (b), online document and Solvay, s.d. (c), online

document).

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1.7.7 DSM

The activities of DSM are divided into four clusters – Nutrition, Pharma,

Performance Materials and Industrial Chemicals – which are in turn divided into

business groups.

The Nutrition cluster comprises DSM Nutritional Products, DSM Food Specialties

and DSM Special Products. DSM Nutritional Products supplies nutritional

ingredients such as vitamins, anti-oxidants, pigments and premixes. DSM Food

Specialties supplies ingredients for the food industry such as flavourings and

flavour enhancers. DSM Special Products produces benzoic acid, sodium

benzoate, benzaldehyde and benzyl alcohol.

The Pharma cluster consists of the business groups DSM Pharmaceutical Products

and DSM Anti-Infectives, which supply ingredients to the pharmaceutical

industry.

The Performance Materials cluster includes the business groups DSM Engineering

Plastics, DSM Resins and DSM Elastomers. The products these business groups

produce are used in a variety of markets such as the automotive industry, the

aviation industry, the electrics & electronics industry, the sports and leisure

industry, the coatings industry and the construction industry. DSM Engineering

produces polyamides, polycarbonate, polyethylene and extrudable adhesive

resins.

The Industrial Chemicals cluster consists of DSM Fibre Intermediates, DSM

Melamine and DSM Agro. DSM Agro specializes in fertilizers.

DSM has its headquarters in Heerlen (The Netherlands) and operates worldwide

with sites and offices in North, Central and South America, Europe, the Middle

East, the Asia-Pacific region and a small part of Africa. The company has 22,156

employees. Its profit amounted to 547 million euro in 2006, while its sales came to

8,352 million euro (DSM, 2007, online document; DSM, s.d. (a), online document

and DSM, s.d. (b), online document).

Tessenderlo Bayer BASF Monsanto Rhodia Lonza Solvay DSM

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Group4

Origin

Belgium

Germany

Germany

USA

France

Switzerland

Belgium

The

Netherlands

Presence

Europe,

North &

South

America,

Asia

Europe,

North &

South

America,

Middle

East,

Africa,

Asia-

Pacific

region

Europe,

North,

Central &

South

America,

Caribbean,

Asia-

Pacific

region,

Africa

Europe,

North &

South

America,

Asia-

Pacific

region,

Africa

Europe,

Asia-

Pacific

region,

North &

South

America

Europe,

Asia-

Pacific

region,

America

Europe,

Russia,

North &

South

America,

Asia-

Pacific

region

North,

Central &

South

America,

Europe,

Middle East,

Asia-Pacific

region,

Africa

Number of

employees

8,184

105,100

95,000

17,000

16,000

6,146

29,258

22,156

Sales (2006)

2.2 billion

euro

28.9 billion

euro

52.6 billion

euro

7.3 billion

dollar5

4.8 billion

euro

2.9 billion

CHF6

9.3 billion

euro

8.3 billion

euro

Profit/loss

(2006)

-24.3 million

euro

13.6 billion

euro

14.9 billion

euro

3.55 billion

dollar7

62 million

euro

85 million

CHF8

547 million

euro

Competition

with TG’s

activities

Chemicals

Specialities

Chemicals

Plastics

Converting

Specialities

Chemicals

Chemicals

Plastics

Converting

Specialities

Specialities

Chemicals

Plastics

Converting

Chemicals

Plastics

Converting

Specialities

TABLE 2: COMPARISON BETWEEN TESSENDERLO GROUP AND ITS MAINCOMPETITORS

1.8 An outlook on the future

The future of Tessenderlo Group depends on external as well as internal forces. A

first important external factor is the price of raw materials which is likely to stay at

a high level. Sometimes this cost can be calculated in the sales price, but it is not

always possible (for instance when the market is not ready or when clients do not

accept a higher price). Furthermore, it can only be done with a delay because

contracts run for three or six months.

4 Source: Tessenderlo Group, 2007b: 1, 10, 12-13. 5 7.3 billion dollar = approximately 5.3 billion euro. 6 2,914 million CHF = approximately 1.7 billion euro. 7 3.55 billion dollar = approximately 549 million euro. 8 85 million CHF = approximately 51 million euro.

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Other external factors that influence the position of Tessenderlo Group are the

high cyclicality of some markets and the company‟s strong dependency on oil

and energy prices and the dollar (KBC Securities, 2007: 6).

A positive external factor is that the economic cycle is doing well. This has a

positive effect on the figures, which tend to follow the general economic trend.

The 12.5 million euro grant by the Flemish government for Tessenderlo Chemie

and LVM is another positive element (Tessenderlo Group, 2007, online

document).

Internal factors include „Target 2007‟, a recovery plan for the Chemicals business

group, which has been started last year and continues in 2007 en 2008. The aim is

to save 30 million euro this year and 50 million euro next year. The plan was

developed because the results of the Chemicals business group were alarmingly

decreasing in recent years because of a downward trend in productivity and

profitability. This trend can be explained by changes in the market, increased

competition and expensive raw materials. „Target 2007‟ includes a

reorganisation of the Chemicals production sites (for example the Limburg sites)

(Tessenderlo Group, 2006, online document).

Another internal factor is the new strategic plan that was revealed at this year's

general meeting in june. All activities should have a Return On Capital Employed

of 12% by 2012. The business units that do not reach this percentage will be sold.

Moreover, the group needs to move away from commodities and focus on

specialities. Commodities are those products that every chemical company can

manufacture. They are usually inexpensive. This implies that customers become

an uncertain factor: one day they buy the products of Tessenderlo Group, the

next day they switch to the competitors. On top of that, Chinese companies

have entered the commodities market. These companies skim the European

market because they are able to produce the products at a lower price. By

increasing the production of specialities, Tessenderlo Group aims at a more

stable market. Specialities are products for which a company needs certain

specifications or which have a certain degree of purity. This implies that these

products have added value for the customers and that they are less likely to

switch. Furthermore, these products are usually more expensive and require the

manufacturer to be situated closely to the client. For example, a plastic pipe will

not be produced in China and brought over to Europe because transport is too

expensive. That is why it is not likely that the Chinese will enter the European

specialities market. Thus, focussing on specialities offers security for the future.

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Future investments will only serve Plastics Converting, Gelatin and a new unit

called „Second Life for Waste‟. This unit will be created because Tessenderlo

Group has a lot of expertise in taking over by-products from other companies

and turning them into new products that can be resold. Arcelor Mittal, for

example, pays Tessenderlo Group to get rid of its by-products. Tessenderlo Group

uses this by-products to make ferric chloride that is used for water treatment

(Interview with Geert Dusar, 22nd june 2007).

Investments in the production of gelatine will continue because this is an

attractive market with high entry barriers. Plastics converting is another attractive

business, partly thanks to Tessenderlo Group‟s strong distribution network (which

implies that the profit margins stay high) (KBC Securities, 2007: 6).

1.9 Tessenderlo Group as a 'good citizen'

Tessenderlo Group is aware that, as a chemical company, it can be a burden for

the local community and the environment. Environmental care is a big priority for

the company, especially because the Limburg sites are closely situated to the

communities of Tessenderlo and Ham. Therefore, Tessenderlo Group invests more

than is legally required. Mrs Dusar asserts that if the site were situated in the port

of Antwerp, less investments would be done (no more than legally necessary)

(Interview with Geert Dusar, 22nd june 2007). In recent years, Tessenderlo Group

has spent more than 180 million euro on environmental projects (Tessenderlo

Group, s.d. (g), online document). These investments include the following

initiatives:

o Recycling initiatives. For example, Tessenderlo Group has a participation

of 36.6% in EKOL, a Belgian company that recycles mixed domestic plastic

waste into useful products such as sitting benches. Per year, the company

handles the waste of one million citizens (Tessenderlo Group, s.d. (h),

online document).

o The deployment of Best Available Technologies. When new technologies

are developed, which are better for the environment or the employees,

these technologies will be used to replace the older ones (Interview with

Geert Dusar, 22nd june 2007).

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o Recent investment in a new energy-saving membrane electrolysis plant

(ELY III) and an energy-saving chlorination reactor (Tessenderlo Group,

2007, online document).

o Deployment of pipelines for transport of ethylene and salt to reduce the

number of lorry trips between companies (Tessenderlo Group, 2007b: 24

and Tessenderlo Group, 2007, online document).

o Several sites have their own environmental management systems to keep

the environmental impact under control. A number of these systems are

certified under ISO 14001 (Tessenderlo Group, s.d. (l), online document).

o Support of the Responsible Care principles. Responsible Care is a global

voluntary initiative of the chemical industry to continuously improve the

health, safety and environmental performance and to communicate with

stakeholders about products and processes. The commitment is translated

through national programmes into policy principles and guidelines

(Tessenderlo Group, s.d. (m), online document).

The company also works on its social responsibility by taking the following

initiatives:

o Ethical codes that serve as rules of conduct. These rules are also

mentioned in the sales contracts (Interview with Geert Dusar, 22nd june

2007).

o Active co-operations with schools, youngsters, NGO's and other interest

groups. For instance, Tessenderlo Group regularly meets with „Bond Beter

Leefmilieu‟ to listen to its arguments and to work on the issues in question.

The company also sponsors local initiatives. Each year a delegation of the

group's engineers is sent out to tell 14 and 15 year olds about their work,

an initiative that fits into the action plan „Chemistry and Youth‟ of the

Belgian chemical federation essenscia (ex-Fedichem). Tessenderlo Group

also invites primary school pupils from local schools to the Limburg sites to

enhance the children's awareness of the environment (Tessenderlo Group,

s.d. (i), online document).

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o The organization of „Open House‟ events to inform family of employees,

neighbours, suppliers or anyone else about the group's activities

Tessenderlo Group, s.d. (j), online document).

o Maintaining an open dialogue by providing correct information. An

abridged version of the environmental report is distributed to 10,000 local

residents in Limburg. In the UK, Tessenderlo Fine Chemicals organizes a

discussion forum for the local community every six months (Tessenderlo

Group, s.d. (k), online document).

o The organization of client surveys with questions about what the customers

think of Tessenderlo Group's products and its social responsibility (Interview

with Geert Dusar, 22nd june 2007).

o Participation in surveys conducted by SRI (Socially Responsible

Investment). Once the given answers are carefully checked, the

company will be recommended to investors who invest solely in

companies with an SRI-index (Interview with Geert Dusar, 22nd june 2007).

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1.10 Conclusion – SWOT analysis

POSITIVE NEGATIVE

o Implementation of the recovery

plan "Target 2007" will save

money.

o Implementation of a new and

solid strategic plan.

o Focus on leadership in niche

markets of products with high

added value.

o Creation of the 'Second Life for

Waste' unit values Tessenderlo

Groups expertise.

o Further investments in Gelatin

and Plastic Converting, which

are attractive markets.

o High level of integration and

valorisation of by-products.

o Continuous investment in

environment-friendly and

energy-saving technologies.

o Economic conjuncture is doing

well.

o 12.5 million euro grant of the

Flemish government.

o Price of raw materials is likely to

stay high.

o Strong dependency on oil and

energy prices and the dollar.

o Influence of active

environmental interest groups.

o Strong competition of Asian

companies.

o Focus on the unstable

commodities market (will change

in the future).

o Tessenderlo Group is active in

some highly cyclical markets.

INTE

RN

AL

EX

TER

NA

L

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Chapter 2 How to enliven and

communicate values: A theoretical

framework

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During my traineeship I spent a considerable amount of time working on an

advice memo concerning the communication and enlivenment of values. Mrs

Dusar told me that I should step into the role of a communications consultant

and give advice on how to communicate values internally. In fact, she told me

that “just communicating” them in the strict sense was not enough. The focus

needed to be on really making the values live among the employees. This task

was linked to the brand new set of values the new management of the

Chemicals business group was (and perhaps still is) working on. A more detailed

description of this task can be found in chapter 3, paragraph 3.2.1.3.

I will start this framework by giving a thorough definition of values and by linking

the notion to other phenomena. I will also deal with some trends that influence

the growing attention given to values. Then, I will focus on how to communicate

values to employees and how employees really can get involved in this process.

Here and there, I will lace the theory with examples I picked up during my

traineeship.

2.1 What are values exactly? A number of definitions

2.1.1 VALUES

To get a clear view of the notion of values, I provide an overview of different

definitions I encountered in literature.

DeVito sees values as "an organizing system of attitudes", "a cluster of favourable

attitudes" and "guidelines for developing and forming attitudes". He not only links

values to attitudes, he also defines values as "guidelines for behaviour" (DeVito

(1976) in Shockley-Zalabak, 1999: 425). Johannesen describes values as

"Conceptions of The Good or The Desirable that motivate human behaviour and

that function as criteria in our making of choices and judgement" (Johannesen

(1983) in Shockley-Zalabak, 1999: 425). Hoogervorst et al., in turn, define

organizational culture – a notion that is very much tied with values – as a

phenomenon that serves as a guideline for behaviour (Hoogervorst et al., 1992:

2.7.4/5).

These definitions have one element in common: they all link values to behaviour.

Values are those conceptions that guide humans in how they act, inside or

outside the context of an organization.

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The notion of values is often closely linked with the notion of organizational

culture or corporate culture. Deal and Kennedy argue that values are "the

bedrock of any corporate culture" (Deal and Kennedy (1982) in Shockley-

Zalabak, 1999: 426). According to Drucker, the culture of an organization is "a

function of shared values" (Drucker (1988) in Posner and Schmidt, 1992: 81) and

Shockley-Zalabak sees organizational culture stem from the values that members

of that particular organization hold in common (Shockley-Zalabak, 1999: 426).

2.1.2 ORGANIZATIONAL CULTURE

What is organizational or corporate culture? Zijderveld derives his definition of

corporate culture from the sociological view on 'common' culture. Culture

involves the ways a group or social collectivity thinks, feels and acts. These ways

are embedded in traditions that bridge generations, are taught by

organizational members and are internalised. The patterns of behaviour that are

taught are composed of values and norms (Zijderveld, 1990: 1.4-4).

Corporate culture, then, is ways of thinking, feeling and acting that are typical

for a particular company. These patterns of behaviour are transferred onto new

members and provide the company with a style of behaviour that is easily

recognizable. The behavioural patterns are valuable, normative and meaningful.

Thus, corporate culture can also be described as a system of values, norms and

meanings that is typical for a particular company (Zijderveld, 1990: 1.4-5).

Zijderveld sees corporate culture as a steady, time-crossing phenomenon, a

vision he shares with Hoogervorst et al. who also define organizational culture as

a relatively stable notion that remains constant, even when there is a shift among

the organizational members (Hoogervorst et al., 1992: 2.7.4/4).

In reality a company does not consist of one single culture, but of multiple,

overlapping groups with each their own typical culture (Zijderveld, 1990: 1.4-5). In

an international company, each country will bring typical local elements into the

company9. To ensure the unity of the company, it is important to hold on to a

shared, overarching corporate culture that serves as a base for the different

subcultures (Zijderveld, 1990: 1.4-5). Thus, Zijderveld believes that general, all

encompassing values can exist, an issue that will be discussed later on.

9 The notion of internationalization will be treated in paragraph 2.4.1.

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2.1.3 CORE VALUES

Core values is another frequently used notion. Collins and Porras define core

values as "the essential and enduring tenets of an organization. [It is] a small set

of timeless guiding principles. […] [It is] the essence of their being. […] [Core

values are] so fundamental and deeply held that they will change seldom if

ever". It is important to note that, according to these authors, core values require

no external justification at all (Collns and Porras, 1996: 66). Thus, core values can

never be the answer to market requirements, while 'regular' values are often

adopted to this end10. There is no universal set of core values. Each company

should decide for itself what values it regards as core. Only a small number of

values can truly be considered core values (no more than three to five). Thus, a

company can find values like teamwork or customer service important and work

on these values, without them being core values. Core values are easily

confused with operating practises, strategies or cultural norms (Collins and

Porras, 1996: 66) or other types of values. Lencioni cites an anecdote about a

company that adopted „a sense of urgency‟ as a core value. However, none of

its employees made quick decisions, they could even be described as being

complacent. The company chose „a sense of urgency‟ as a core value to

change this and to motivate its employees, while this goes completely against

the definition of core values. Something cannot be named a core value if it does

not even exist in the company (Lencioni, 2002: 114).

Lencioni presents a typology of four types of values:

1. Core values

Core values serve as the "cultural cornerstones" of a company. All actions

undertaken by the company should be performed with the core values in mind,

because core values can never be compromised. Core values often reflect the

ideals of the founders.

2. Aspirational values

Aspirational values are those values that a company presently lacks, but that are

needed in the future (for example, because the market or the context is

changing). A company should think its aspirational values through, in order to

secure the core values.

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3. Permission-to-play values

These are the minimum behavioural and social standards that indicate how the

employee should act. These values are often shared with other companies

especially those in the same industry or region which means that they are not

meant to distinguish the company from its competitors. Integrity, honesty or

customer service are examples of this type of value.

4. Accidental values

Accidental values are not encouraged by the management, but occur

spontaneously. They often reflect the shared interests and personalities of the

employees. These values should be carefully managed because they can lead

to negative outcomes if they prevail. Lencioni gives the example of a company

where the employees mostly were young, hip people. The value of 'hipness'

threatened to become a crucial element in the hiring process, which almost led

to „unhip‟ but solid candidates being overlooked (Lencioni, 2002: 114-115).

2.2 Why do values matter?

Values matter because they appear to have a positive impact internally as well

as externally.

First, the more a person's values match those of the company, the more

committed and motivated the employee will be. His or her work satisfaction will

increase, which makes it likely that the employee will stay faithful to the

company. Thus, value congruence (the similarity between individual and

organizational values) has a positive impact on employee retention, an

important notion in an era where job-hopping has become a common practice

(Shockley-Zalabak, 1999: 429; Balmer, 1999: 29 and Posner and Schmidt, 1992:

81).

Corporate culture can differentiate a company from its competitors, which

renders a competitive advantage in the market for new clients and employees

(Balmer, 1999: 29). Lencioni also agrees that values, besides core values, can

serve as a differentiator (Lencioni, 2002: 114-115). This is important as differences

between products keep getting smaller.

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If values serve as guidelines for the behaviour of employees, this also has an

impact on the way the corporate image of an organization – the way it is

perceived by external public groups and target groups (Floor and Van Raaij,

2002: 530 and Borremans, 1992: 3.1.3/1). These external actors judge the

company according to how the employees and the organization itself

communicate with them and how they behave towards them. This implies that

those responsible for external communication cannot ignore the internal

characteristics of the organization. If a company wants to send out a certain

message to the outside public, it needs to communicate with the employees first

and make sure that the message does not clash with the corporate culture

(Borremans, 1992: 3.1.3/1).

We can conclude that values can be a real asset to a company. Lencioni,

however, claims that values should be handled with care because they can

easily become destructive. Many values statements are meaningless, hollow

words. Sometimes they are even plain dishonest. The values of Enron –

communication, respect, integrity and excellence – are a typical example of

this. The danger with empty values statements is that they lead to cynical,

dispirited employees, alienated customers and chip away at the credibility of the

managers. Creating real and honest values statements is often a though

process, because some employees may feel like outcasts, because values limit a

company's strategic and operational freedom, because they constrain the

employee's behaviour, because they leave executives open to criticism for even

minor violations and because they demand constant vigilance. Thus, Lencioni

concludes that, if a company is not willing to deal with these complications, it is

better off without a values statement (Lencioni, 2002: 113-114).

Furthermore, he argues that what he calls "motherhood-and-apple-pie"-values,

such as integrity, quality, innovation, customer service and teamwork, that

appear in innumerable values statements are as good as meaningless because

they provide no outline for employee behaviour and they do nothing to

separate a company from its competitors. It is better to embrace surprising

values, that sometimes even may be frowned upon. Intel, for example, stimulates

its employees to take risks, to challenge the status quo and to engage in

constructive confrontation, such as verbal jousting (Lencioni, 2002: 115).

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2.3 Are values changeable?

Deal and Kennedy argue that shaping and enhancing values can be a

manager's most important job (Deal and Kennedy (1982) in Shockley-Zalabak,

1999: 427). Other authors say that communication processes can serve to

transmit, maintain and change values (Shockley-Zalabak, 1999: 427). Zijderveld

claims that, as the behavioural patterns of which corporate culture consists are

historical and taught, corporate culture can always be changed (because if

something is historically taught, it can always be changed) (Zijderveld, 1990: 1.4-

9). Eisenberg and Riley call this point of view the „corporate culture‟-perspective.

This perspective treats organizational culture, values and practices as something

that can be managed to create better business outcomes. This implies an

'activist' stance towards corporate culture – corporate culture is something that

can be created, shaped and transformed on purpose (Eisenberg and Riley,

2001: 309).

Although various authors agree on the changeability of corporate values and

culture, this issue is still being debated. Eisenberg and Riley claim that many

managers have encountered problems when trying to enact cultural change,

by pushing an ideological stance that collides with the organizational culture

that is already established. This observation has led to the conclusion that culture

cannot be managed. It is merely possible to stimulate and cultivate certain

behavioural patterns. Values should be treated as epiphenomena, that can only

be changed by changing practices, such as communication practices

(Eisenberg and Riley, 2001: 310-311).

2.4 Trends influencing attention for values and corporate culture

It seems that in the last decade, attention for corporate culture and values has

surged. It is likely that this increased attention can be attributed to a changing

business context. Employees have come face-to-face with 24/7 accessibility,

downsizing, technological change, a growing gap between rich and poor and

increasing ecological degradation. These trends have become real ethical

issues for employees. Values and corporate culture can serve as means to deal

with these issues and provide a larger, more meaningful purpose for employees

to turn to. Other external pressures include diminishing differences between

products and companies, internationalization and increasing individualization

which makes loyalty to the organization less self-evident (Driscoll and McKee,

2007: 209 and Zijderveld, 1990: 1.4-9). While corporate culture has always existed

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– in the seventies and eighties it was called corporate climate and often pushed

aside by attention for corporate structures and processes – these trends have

shoved the notion to the front stage in full force (Zijderveld, 1990: 1.4-11). In the

following paragraphs I will dig deeper into some of the aforementioned trends

and present some other influencing factors.

2.4.1 INTERNATIONALIZATION

It is likely that differences in values between and within organizations will only

increase as the workforce keeps on diversifying and internationalization

continues (Shockley-Zalabak, 1999: 428). There is a extensive body of research on

the influence of local, national values on the operation practices in companies.

Hofstede's study is probably the most cited one. Hofstede argues that culture is

imported in organizations through national, regional and ethnic characteristics of

the employees. Thus, nationality is deemed more influential than the power of an

organization to influence the behaviour of its employees (Eisenberg and Riley,

2001: 304). Hofstede came to this conclusion after performing a study on work-

related values with more than 116,000 IBM employees in 50 countries. He

identified four dimensions that vary according to the culture, namely power

distance, uncertainty avoidance, masculinity and individualism. Hofstede links

values to communication (Stohl, 2001: 343). For example, when working in or with

high power distance countries, one should respect the authority structure and

the formal hierarchy. In low power distance countries, the organizations are less

formally structured and open communication across the social system is more

respected (Hofstede (1984) in Stohl, 2001: 343). Thus, it is likely that, when an

international company formulates a values statement embedded in the culture

of the country of origin, these values will clash with those of the subsidiaries.

Tessenderlo Group‟s „open communication‟ value may be adapted to the

central European countries the company originally targeted, but it might not

correspond to the customs of China – generally considered as a high power

distance country – where the company recently opened a subsidiary.

Earlier, it became clear that value congruence11 is important for the functioning

of an organization. With Hofstede's study in mind, one can wonder whether

internationalization of companies is a threat to this notion and thus to wellbeing

of companies. Will certain groups not be able to commit to the values and thus

11 Value congruence: similarity between individual and organizational values (Shockley-

Zalabak, 1999: 429).

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hinder the company? These problems would occur if a company attempts to

seize all employees in one, all encompassing monolithic culture. It is clear that

this is undesirable. One should create a multicultural company in which equally

valued behavioural alternatives are proposed (Cox (1993) in Shockley-Zalabak,

1999: 429).

Donaldson agrees that there are considerable value differences between

cultures, but he also observes that "seemingly divergent values converge at key

points" (Donaldson, 1996: 53). Furthermore, he argues that "cultural relativism is

morally blind. There are fundamental values that cross cultures and companies

must uphold them" (Donaldson (1996) in Shesadri, 1998: 227). The author

distinguishes three fundamental and universal values that "express attitudes

about what it means to be human". These values are „respect for human dignity‟

(people cannot treat each other as tools), „respect for basic rights‟ (people

should be treated with respect for their basic rights) and „good citizenship‟

(together, people should help institutions that are crucial for the community).

According to Donaldson, these values should be used as a starting point for

formulating and evaluating standards for ethical behaviour at the headquarters

as well as at the international subsidiaries. Once these core human values are

translated into core business values they serve as guiding principles, even if they

do not stroke with the norms and laws of the 'host countries'. However, this does

not imply that the subsidiaries should just accept the values of the headquarters

and shoo away from their own values. Individual judgement is indispensable and

should be acknowledged. Thus, a company should find the balance between

providing clear direction and allowing personal judgement (Donaldson, 1996: 53-

54, 56).

According to Collins and Porras, the only way to recognize mutual values

between different cultures is to work from the individual towards the

organization. The individuals formulating the values should answer questions like

"What core values do I personally bring to work?", "If I awoke tomorrow morning

with enough money to retire for the rest of my life, would I continue to live those

core values?", "Would I want to hold those core values, even if at some point one

or more of them became a competitive disadvantage?" (Collins and Porras,

1996: 68). These questions give an indication about which values are important

to an individual and about how deeply rooted they are. However, I do not see

how these questions will help in an international context, since the personal

values may also be somewhat culturally biased.

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2.4.2 CORPORATE CITIZENSHIP – CORPORATE SOCIAL RESPONSIBILITY (CSR)

The increased attention that corporate citizenship and CSR currently enjoy, leads

to companies being more aware of their values and giving more attention to

enacting values and involving employees.

Corporate citizenship and CSR both essentially imply that companies identify

and accept their obligations to society or, more specifically, to their stakeholders.

This allows the company to improve its reputation (Smith, 2003: 53 and Bishop

and Andrews, 1999: 16). Indeed, enhancing the corporate reputation seems to

be the major aim behind corporate citizenship or CSR-initiatives (Macleod, 2001:

8-9 and Bishop and Andrews, 1999: 17). Reputations suffer the impact of several

trends. First, as markets become more and more competitive, a good reputation

becomes a crucial factor in the decision making process of customers.

Companies must appear trustworthy and corporate citizenship or CSR are great

tools to communicate this to the customers (Bishop and Andrews, 1999: 17). A

second factor of influence is the success of movements such as consumerism

and environmental, anti-capitalist and anti-globalization groups which keep a

close eye on the impact of business on society. These elements, combined with

the emergence of a more business-literate society, the extension of

shareholding, skilled labour shortages and the ever present media, make having

a sturdy reputation a necessity for survival (Macleod, 2001: 8 and Bishop and

Andrews, 1999: 16). Although the idea of companies carrying social responsibility

is not at all new, the aforementioned elements urge companies to take

responsibility and express it as such (Smith, 2003: 52 and Bishop and Andrews,

1999: 16). Thus, the 'business case' for CSR – which aims to serve the self-interest –

seems to prevail over 'normative CSR' – which aims to 'do good' without other

motives (Smith, 2003: 53). Well executed CSR or corporate citizenship will not only

strengthen the reputation of a company, it will also increase employee

motivation and retention and lead to better issue management because

dialogue and engagement with stakeholders becomes possible (Macleod, 2001:

9).

The adoption of CSR or corporate citizenship programmes is a gradual and long

term process, wherein four elements are vital: (1) the engagement of the

employees, (2) the engagement of the management, (3) a link with the values

of the company and (4) a well-designed communication strategy.

It is important that employees take part in the initiatives. It is a good idea to

choose initiatives in the local community with a direct link to the employees. This

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way the employees will get involved at grass roots level (Bishop and Andrews,

1999: 17, 20 and Wright, 2001: 17). The easiest way to get the employees

enthusiastic is when senior leaders serve as an example. Understanding, support

and engagement from the management is essential. However, it is important

that these leaders are personally motivated and that they take initiative

because they want to, not because of the business advantages that might result

from it. Their engagement must be a reflection of their personal values and the

shared values in the company (Wright, 2001: 17 and Macleod, 2001: 8-9).

Indeed, values are another crucial element. The initiatives should reflect the

corporate values so that the internal corporate culture is communicated to the

external community. If a company claims to do good, the corporate behaviour

should be completely in line with that statement. The organization should

internalize the corporate citizenship within the heart of the corporate culture

(Bishop and Andrews, 1999: 17, 20; Wright, 2001: 17 and Macleod, 2001: 9).

The initiatives should be carefully communicated to a multiplicity of stakeholders.

The company should communicate results to its employees in order to engage

them. They should be aware of the fact that the company is looking for more

than just business results and that the initiatives not only take place on the

corporate level, but that personal initiative and engagement is also essential.

It is a challenge to communicate CSR-initiatives to shareholders, because they

often criticize the usefulness of it in business terms. Therefore, a company should

present them with a quantifiable link between the initiative and commercial

benefits. The beneficiaries of the initiatives could also step into the spotlight to

create third party credibility. Boasting, however, should be avoided by all means

(Bishop and Andrews, 1999: 18; Wright, 2001: 17 and Macleod, 2001: 8-9).

2.4.3 GROWING IMPORTANCE OF THE ‘STAKEHOLDER’-MODEL

The shift to the „stakeholder‟-model of organizations is another trend that

contributes to the increased attention for values.

"Every organization is linked to a complex system of interrelated individuals and

organizations who have a stake in the organization's deeds" (Gronstedt, 1996:

292). Stakeholders are "any group or individual who can affect, or is affected, by

the achievement of a corporation's purpose (Freeman (1984) in Gronstedt, 1996:

292). Stakeholders include the government, financial parties, scholars and

industry opinion leaders, the media, employees, interest groups, the community,

distributors and suppliers, trade and professional organizations and competitors.

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Because of their interdependency, the action or inaction of one stakeholder can

affect the other stakeholders and change their behaviour, attitudes or opinions

(Gronstedt, 1996: 292, 294).

For a chemical company such as Tessenderlo Group the media, communities

and interest groups such as environmental organizations are powerful

stakeholders. When they condemn the company, this may have a negative

influence on the willingness of investors to invest in Tessenderlo Group.

Stakeholder groups are not only interrelated, but can also be overlapping

(Gronstedt, 1996: 294). For Tessenderlo Group, this is the case with its competitors,

which sometimes also are customers of the company.

The influence these stakeholders exert becomes more and more important as

competition gets tougher, employee retention becomes more difficult and the

media are ever present and operate on a global scale. The stakeholders will not

just digest the information the company presents them with. A company must

really interact with these parties and build relationships with them. This interaction

process can be conceived as a negotiation process that leads to mutual goal

achievement. The negotiation process takes place via well planned

communication, wherein stakeholders receive and send information (Gronstedt,

1996: 295, 302 and Deetz, 2001: 39).

Tessenderlo Group keeps up with its stakeholders in various ways. An important

practice is collecting clippings and performing research. During my traineeship I

had to look up information about a journalist who takes part in remarkable

protest actions that often are picked up by the media. The company regularly

talks with interest groups such as „Bond Beter Leefmilieu‟ and tries to work on their

remarks. The group also performs customer surveys, to gauge the customer's

opinions about the products and about the company's social responsibility – a

value Tessenderlo Group finds extremely important. On „Open House‟ days

suppliers, neighbours of the sites, family and friends of employees and other

stakeholders are invited to the company to get to know each other better.

Values can take a fundamental role in the aforementioned communication and

interaction process. As guidelines for behaviour they determine the way the

company and its employees present themselves in the interaction process. As

socially responsible investing becomes more common, whether a company has

appealing values and acts on them, becomes vital for attracting investors. The

same goes for whether or not interest groups will voice their concerns.

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Deetz remarks that companies should not just use stakeholder dialogue as a

strategic tool to increase loyalty and commitment and decrease resistance, but

as a way of collecting real input. According to this author, too often the number

of forums for stakeholder representation and debate increases, while stakeholder

voice remains on the same level (Deetz, 2001: 39). Following this view,

stakeholders should be heard before formulating the values and should be able

to participate in the process of writing them down.

2.5 How to communicate and enliven values?

In the previous paragraphs it was made clear that values serve as guidelines for

behaviour and that they should be treated as epiphenomena. This means that in

order to change values, practices should be altered. Communication practices

form a crucial factor that needs to be thought about. D'Aprix and Tyler formulate

the importance of communication in conveying values and changing culture as

follows:

"A communication strategy designed to create culture change has to

make communication happen – more frequently and more effectively. To

change culture, the communication strategy has to be first and foremost

about the process of communicating. Listening, building understanding,

creating new insights, exploring implications, reaching agreements,

getting feedback, raising contentious issues, resolving disagreements,

recognizing contribution" (D'Aprix and Tyler, 2006: 23).

2.5.1 FORMULATING VALUES

The majority of communication specialists advices to involve the employees in

the value formulating process. Open questioned surveys, focus groups and even

internet forums or blogs are often used tools to determine which values

employees attribute importance to. IBM, for example, has developed an

interactive forum where employees can discuss question such as "Do company

values exist?", "If so, what is involved in establishing them?", "Most companies

today have values statements. But what would a company look and act like that

truly lived its beliefs?" and "What values are essential to what IBM needs to

become?" (IBM, s.d., online). Coca-Cola asked its 55,000 to give their vision on

the values of the company via the corporate blog. The employees were asked

to tell how they feel about the values presented by the top management. The

aim of the initiative was to stimulate storytelling and to discover how the

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employees understand the values presented (Ruitenbeek, 2006, online). Krais

and Bloomfield are advocates of „Have your say‟-sessions where groups of 15

employees get the chance to discuss specific issues and give feedback to the

management on things they are concerned about. These issues are an impetus

to start a discussion about what should be the new values and to encourage

input and building consensus (Krais and Bloomfield, 2005: 27).

Still, some authors remain rather suspicious vis-à-vis these initiatives. Lencioni

claims that a values-effort has nothing to do with consensus. It is all about

imposing "a set of fundamental, strategically sound beliefs" on the employees.

Lencioni argues that, since employees are not consulted when it comes to

business strategy, finance and other business issues, they should also be left out

when it comes to formulating values, because it is equally dangerous to involve

them in these decisions (Lencioni, 2002: 116).

Who should be in charge then? The ideal team, according to Lencioni, consists

of the CEO, founders that are still active in the company and a small number of

key employees. This team should focus on an analysis of employees who

embody qualities that the team wants to implement throughout the organization

(Lencioni, 2002: 116). Collins and Porras agree that only a small group of people

should be concerned with expressing values. They suggest the creation of a

"Mars Group" of five to seven people who have "gut level understanding" of

values, credibility among peers and the highest level of competence. These

individuals often are living examples of the values they select (Collins and Porras,

1996: 66, 68).

The new values of the Chemicals business group were formulated by a similar

group. The management team of the Chemicals business group gathered for

two days to answer questions like "Where are we?", "Where do we want to be?"

and to define the values. Thus, the actual values were solely formulated by the

management. These formulations will now be 'translated' in understandable

terms and will be discussed in soundboard groups with employees of all levels

within the Chemicals business group.

Once the values are formulated with or without the input of the employees

they should be actively embedded throughout the company.

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2.5.2 EMBEDDING THE VALUES WITHIN THE ORGANIZATION

The "Living the Brand" model is a widely recognized model to guide managers

when embedding values. It aims to help employees identify with the values and

make them unconsciously behave according to the most important values

(Bishop and Andrews, 1999: 17 and Gehrels et al., 2003: 70). The model consists of

three consecutive stages:

1. Information phase

In this phase the employees get to know the values and what they mean for their

daily work. The management informs the employees about the necessity and

advantages of acting according to the values. Thus, the awareness of the values

is stimulated and their behavioural implications become clearer.

2. Participation phase

The goal of this phase is to operationalize and to personify the values. It is the

employees themselves that add content and shape to the values. This can be

stimulated by re-enacting though situations and by searching answers to

dilemmas and questions of customers. This way it becomes clear how values

present themselves in contacts with customers, colleagues, competitors and so

on.

3. Change phase

In this phase employees consciously act in the spirit of the values. To achieve this,

structures and systems – such as the rewarding system or the controlling system –

can be adapted. Exceptionally the whole organizational system can be

changed (for example, the production and delivery system to better serve the

customer if that is a core value) (Gehrels et al., 2003: 70). Initiatives such as a

yearly performance based bonus pool or monetarily rewards for employees that

embody the values in their work fit this phase (Balmer, 1999: 30-31). Ideally, the

core values should be present in every employee-related process – hiring

processes, performance management, criteria for promotions and rewards,

dismissal policies and personal development programmes – in order to

constantly remind the employees that these values inspire every decision made

(Lencioni, 2002: 117 and Krais and Bloomfield, 2005: 28).

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Throughout these phases, communication should be (1) clear, (2) all

encompassing, (3) repetitive and (4) continuous.

First and foremost, communication should be clear for all employees. One should

strive for simplicity and use unambiguous terms. To ensure that everyone

understands the message and to make it more personal and engaging, the

company can create a visual image that symbolizes the essence of the message

(Speculand, 2006: 5 and Zijderveld, 1990: 1.4-13).

Essentially, employees want to know is what is changing, 'why it is changing' and

what they should do differently (Speculand, 2006: 5). These are three critical

factors for communicating values. First, the „what and why‟-question should be

answered. Employees want to know how the new values statement fits into a

larger context, how the values contribute to a larger goal and what the situation

will be like once this goal is reached. Summing up aspirations in values

statements is not sufficient for a thorough cultural change; employees want to

know why the old culture is no longer viable. If market changes have made the

former values obsolete, managers should not hesitate to elaborate on these

changes. Too often managers believe that employees are not capable of

understanding the market mechanisms, that it is not safe to let them in on this

information or that it will cause unjustified panic. However, this lack of open

communication chips away at the manager's credibility. Furthermore, without

context, the changes in values will appear to be arbitrary, which will have a

negative impact on the employee's commitment (Taylor, 1998: 26 and D‟Aprix

and Tyler, 2006: 23).

Once the „what and why‟-question is handled, the „how‟-question should be

dealt with. The management needs to answer questions such as "How and when

will the new values be implemented?", "How will these new values impact me,

my associates, the company and the customers?", "What will need to change in

the way we do business?", "What will the changes require of the employees?",

"What do I need to do to support the change?", "How do I need to change my

behaviour?" and "How will these new values benefit me personally?". The answer

to these questions must address the specific, personal needs and issues of the

individual in order to increase the chance of the message being internalized. The

values will become less abstract and more relevant to the employees. They will

understand that they are essential to the success of the value project and their

personal involvement and motivation will increase (Taylor, 1998: 27 and D‟Aprix

and Tyler, 2006: 24).

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When embedding values it is important that the information flows throughout the

whole organization, top-down and bottom-up. The central question to an

efficient, effective and functional information process is "Who informs who"?

(Zijderveld, 1990: 1.4-13 and Gehrels et al., 2003: 72). If organizational change

gets stuck within the top layers of the organization it will not be sustained and the

implementation will die prematurely (Taylor, 1998: 28 and Gehrels et al., 2003: 72).

One way to organize an effective information flow is to rely on personal

communication between employees and direct supervisors, line managers,

middle managers and team managers. These managers or supervisors are better

cut out for the job than senior managers, because they are closer to the

employees that need to implement the values. These managers are not

necessarily the best communicators12, but they are "key communicators".

A model that visualizes this communication flow is the „Looping‟-model. The

model is based on dialogues between managers and their employees. By

listening, explaining and giving feedback, information runs throughout the whole

organization down and back up (Taylor, 1998: 28 and Gehrels et al., 2003: 72-73).

The „Looping‟-model is comparable to the process Tessenderlo Group uses to get

the new values across. Recently, the company performed a survey on internal

communication. The aim was to find out whether the top-down and bottom-up

communication functioned well. The information flow between the top

management and the middle managers runs smoothly, but it was unclear

whether the communication from the middle level down was also effective. To

improve this information flow the middle management received a number of

slides with information that needed to be communicated to all employees. Every

middle manager had to prepare these slides in function of what the employees

needed know according to them. Using the middle managers ensures that the

employees will be less (or not) afraid to ask questions or to voice their concerns.

The middle managers can easily pass these concerns to the top management,

so that effective bottom-up communication is ensured.

12 A model that can help these managers to become adequate communicators is the

"Connect"-model. This model focuses on "explaining implications, gauging understanding

and encouraging discussion". It consists of six steps that must be followed when

transmitting information to employees: (1) Create rapport, (2) Share the agenda, (3)

Unpack information, (4) Open discussion, (5) Deal with difficulty and (6) Summarize

feedback (Krais and Bloomfield, 2005: 27).

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FIGURE 5: THE ‘LOOPING’-MODEL FOR COMMUNICATION

(SOURCE: GEHRELS ET AL., 2003: 73).

Another way to permeate the organization with information is using the natural

communication process between peers via „Peer Opinion Leaders‟ (POLs). In this

model, the employee becomes the communicator and the managers solely

take on the role of facilitators of the communication between peers (Taylor,

1998: 28). The innovative character of this model lies in the fact that it does not

limit itself to existing line and other managers (Krais and Bloomfield, 2005: 27). The

POLs become closely involved in the early stages of the value formulating

process so that they become natural advocates of the values proposed.

However, the POLs should not only be involved in the process because of their

influence on their co-workers, but because their opinion is honestly valued

(Taylor,1998: 28).

It is not surprising that both models make use face-to-face communication; it is

the best way to inform employees about values, because human interaction has

the biggest impact on employee motivation, support and commitment (Taylor,

1998: 26; Mellor, 1999: 29 and Pounsford, 2007: 32). Furthermore, it allows

employees to directly ask questions, which lowers the chance of misconceptions

and confusion considerably.

Communicating values once is not enough to embed them properly. The classic

marketing rule that people need to hear a message seven times, in seven

different ways for it to sink in, applies equally well to value communication.

Employees will not absorb and adopt the values unless they have heard them

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several times and from different sources. Therefore, the values should be

repeated at every chance the communication department gets. Poster

campaigns, the organization of a class on culture and values, use of the

intercom, placing the values on the bottom of internal documents are some of

the more tangible ways to grab the employee's attention (Speculand, 2006: 5;

Lencioni, 2002: 117 and Balmer, 1999: 30-31). These means can be used to

complement more 'intangible' ways, such as being a role model by behaving

according to the values or involving the employees in humanitarian work.

After the grand revelation of the values, the intensity tends to diminish. However,

to effectively embed values, they should be kept in the limelight. This can be

achieved by tracking the progress of the implementation and providing

updates, by celebrating successes and reporting on failures or by conducting

surveys to discover which points need to be worked on (Speculand, 2006: 5 and

Krais and Bloomfield, 2005: 29). Organizing focus groups of a small number of

employees to talk about how they perceive the values in their daily work, how

the company complies to the values and where it is going wrong, which values

should be focused on more and so on is another way of keeping the values

alive.

2.5.3 THE MANAGEMENT AS A ROLE MODEL

A good communication strategy is crucial to get values embedded, but equally

crucial is the role model function of the management. Perhaps this function is

even more crucial than the communication strategy, because even perfectly

communicated values will not be internalised by the employees if the

management goes against these values. It will only create cynical employees

that are difficult to motivate and lack identification with the company.

Role-model behaviour and support from the top management are more

important factors in making a values-initiative blossom than codes of conduct,

training or talking about the importance of values. Research has even suggested

that the manager as a role model is the most critical factor. Leaders provide a

natural source of values for their employees and social learning theory has

shown that employees do imitate values stemming from their leaders. Therefore,

employees need to see their leaders and peers adhere to the values in their

everyday work and in the decisions they make (Driscoll and McKee, 2007: 208-

209 and Seligson and Choi, 2006: 2,9).

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The notion of transformational leadership by Burns shows the impact of leaders

'walking the talk' on employee motivation. Burns observed that, when employees

and managers have shared values and goals, they stimulate each other to

reach higher levels of motivation. He considered values and integrity vital

elements in the relationship between employees and leaders (Driscoll and

McKee, 2007: 208 and Hoogervorst et al., 1992: 7.7.4/7).

Employees are usually quick to decide that a leader's decision or behaviour is at

odds with the company values, even when it is not. This judging process is

reinforced by the fact that, over time, employees create their own

interpretations of the values. To avoid being falsely accused of lacking

commitment, employees and managers need to share an understanding of

what the values exactly mean. There is a need for dialogue and concrete

discussion about the values. Managers have to make sure that employees are

not afraid to express their concern when they perceive a faux pas (Edmondson

and Cha, 2002: 18).

Hoogervorst et al. fit the notion of the leader as a role model into a larger

framework they call „implicit communication‟. Employees work in an

organizational context consisting of organizational culture, management

practices and organizational structures and systems. This organizational context

serves as a source of implicit communication, which is often at odds with the

explicit communication. An example of such a inconsistency is when a 'learning'

organization bans all discussion about mistakes (Hoogervorst et al., 1992: 2.7.4/2).

For Tessenderlo Group an inconsistency can be found in the fact that, while

open dialogue is one of the company's values, employees feel that the

managers run away with their ideas and that they are not valued for their input.

Another example is that teams often organize separate meetings about the

same issue without being aware of this. This kind of inefficiency leads to

undecidedness which is at odds with the value of open communication.

2.5.4 CASES

To finish this theoretical framework I have selected some interesting cases of

companies that have developed innovative means or an integrated approach

to keep their values alive.

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1. Nordstrom

Nordstrom, a big American department store chain, communicates its main core

value „Service to the customer above all else‟ in quite innovative ways. New

employees are told stories about the lengths colleagues have gone to provide

excellent customer service and during non-store hours positive and negative

comments from customers are read over the intercom to keep the employees

thinking (Lencioni, 2002: 117 and Collins and Porras, 1996: 68).

2. BDO Stoy Hayward

The accountancy firm BDO Stoy Hayward developed an all encompassing

strategy to communicate its values. The values are integrated in all key HR-

processes (recruitment, induction, feedback and performance management), in

training and development, client feedback and client care programmes. The

values get included on the agenda of company events – from the company's

summer party to partner meetings. Incentive and recognition programmes are

developed to reward employees that outshine value-wise. A small number of

gimmicks – a desk toy and an online card game - was developed to keep the

awareness of the values high. Another remarkable initiative was the

development of the „Values at Work cube‟. The shape of the cube expresses

how every value is equally important. Each value has a colour that returns in

internal communication documents (Newman and Thornbury, 2004: 34-35).

FIGURE 6: BDO STOY HAYWARD ‘VALUES AT WORK CUBE’

(SOURCE: NEWMAN AND THORNBURY, 2004: 34).

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3. TNT

The mail services company TNT allows its employees to volunteer in the

'Schoolfeeding Volunteer Programme'. Every employee can apply to get the

chance to help the United Nations World Food Programme by performing

fieldwork in Nicaragua, Cambodia, The Gambia, Malawi or Tanzania. The

selected candidates are released from their jobs for the duration of the project

and receive their normal salary, plus money for travel and living expenses.

Employees can also donate money to the programme via TNT. Once the

volunteers return home, they are asked to report about their experiences to

motivate friends, family and colleagues to donate money or to join the

programme (TNT, 2007, online document).

4. The Body Shop

At cosmetics company The Body Shop, employees get the chance to

participate in the campaigns of the company, for example by telling passers-by

stories about domestic violence or living with HIV. Employees also get the

opportunity to volunteer during work hours for a charity. In Australia employees

are even required to volunteer at least 16 hours a year. The Body Shop also

organizes values workshops for head office employees and store managers to

make clear that values are part of everything they do (The Body Shop, 2005,

online). These initiatives complement other value-inspired ideas such as buying

ingredients as much as possible in developing countries, manufacturing the

products with natural ingredients and fighting against animal testing (Duncan

and Caywood, 1996: 21).

5. SRA

SRA, an American consultancy firm, shares its values with its employees through

different channels. The COO teaches a class on 'Culture and Values' for every

interested employee. The values statement has a prominent place in the

entrance hall of the headquarters and it is hanging on the walls of the company,

next to framed quotes of costumers and letters of merit. The statement is also

printed at the bottom of internal documents. SRA mentions the values during

hiring negotiations to make sure the candidates will fit in well. Employees that

embody SRA's values are recognized with achievement awards during a yearly

formal banquet. Well-inspired employees are also honoured with monetarily

rewards. Every year, senior managers pledge to uphold the standards. The

company has a partnership with two local schools and employees are

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encouraged to support these schools, for example by volunteering to tutor

children. The company and many employees support charities and working in

the local community is stimulated (Balmer, 1999: 30-31).

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Chapter 3 Thoughts on my

traineeship

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3.1 Organization of the corporate communication department of

Tessenderlo Group13

The corporate communication department consists of five people who are

responsible for the internal and external communication of Tessenderlo Group on

an international level. The communication team is managed by Mrs Geert Dusar,

who reports directly to the CEO. Mrs Dusar is assisted by four persons:

o Mr Michael Vandenbergen, who is responsible for the communication of

the whole group;

o Mrs Kathleen Iwens, who is responsible for the external communication of

the plants in Limburg;

o Mr Luc De Clerck, who is responsible for the internal communication of the

plants in Limburg;

o Mrs Béatrice Maelfeyt, who is the secretary of the department.

The goals of the corporate communication department are (1) supporting the

mission, vision and values of Tessenderlo Group and (2) stimulating the

information flow. The department has developed a wide array of means to

accomplish these goals.

3.1.1 INTERNAL MEANS

Internally, the corporate communication department aims to promote the

feeling of oneness within the group, to increase the knowledge about

Tessenderlo Group among employees and to distribute clear and transparent

information via:

o The creation of a corporate identity;

o Several publications:

'De Week' to shine a light on the news of the week;

„INFO‟, a quarterly magazine made for and by employees;

„ToGether‟, a magazine distributed to all managers;

The 'Facts and Figures'-booklet with basic information about

Tessenderlo Group that is distributed to all employees;

The annual report;

Press releases;

13 Sources: Tessenderlo Group, 2007a: x and interview with Geert Dusar, 22nd june 2007.

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Memo's.

o Electronic means:

TGnet, the Belgian intranet;

FORUM, an extranet for the European employees of the Chemicals

business group. Here, the employees can do suggestions and ask

questions, which will be answered within three days.

o Face-to-face communication: the organization of information sessions

that are continuously repeated to make sure that every employee is

informed.

FIGURE 7: INTERNAL PUBLICATIONS OF TESSENDERLO GROUP

3.1.2 EXTERNAL MEANS

Externally, the communication department aims to promote Tessenderlo Group

and to make its activities and functioning more transparent for outsiders via:

o The maintenance of press relations;

o The maintenance of investor relations;

o The development of corporate publicity;

o The website.

The main challenges for the communication department are (1) stimulating the

information flow between the different departments, business groups and units,

(2) improving the team spirit within the company, (3) increasing face-to-face

communication and (4) encouraging bottom-up communication.

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3.2 My tasks during my traineeship at Tessenderlo Group

During my traineeship Mrs Dusar set me various tasks. Some of these assignments

were quickly finished, others took me several days of work. I will describe these

tasks, provide you with a little background information, explain how I proceeded

and evaluate the tasks.

3.2.1 MAJOR TASKS

3.2.1.1 Manual on project management14

On the first day of my traineeship Mrs Dusar e-mailed me a thirty pages long

manual on „project management‟. She asked me to read the document, to

critically revise it and to make a summary of it. My summary was meant as a

short, handy manual that could be used by any employee that is involved in any

project. Given this large target group, I had to use an unambiguous, simple and

clear language. There was a need for such a manual because at that moment

there was no uniform way of taking on projects. Often, the same issue was

treated in different team meetings without the teams being aware of this. Also,

projects often are cross-departmental which implies that the communication

flow between the departments must be optimal.

I started by reading the existing manual a few times and making notes. The

manual was full of complex English terms and difficult technical procedures

because it was aimed at engineers who are familiar with these things. The

authors distinguished five different phases, ten roles within a project team, three

different meetings and twelve reporting documents. Needless, to say I was quite

confused when I first read the manual. I also had difficulties to make out whether

the terms that were used were specific jargon or common knowledge within the

company. It also was unclear to me which terms I could leave out and which

ones where essential, general notions. Some notions where dispersed across the

manual, so I had to bring them together.

My first summary was still quite long. Then I gradually started crossing out

elements to shorten it. The first draft was revised by Mrs Dusar and she had quite

a lot of remarks. The biggest problem was that I had written a full text, without

using bullet points, which made it hard to go through quickly. Thus, I broke up the

text in shorter paragraphs and used bullet points to make it easily surveyable. I

14 See appendix 1.

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deleted some parts and extended other parts with additional information Mrs

Dusar had given me. Eventually I finished with a 14 pages long manual,

consisting of a short introduction (What is a project? Why and when use project

management?), a description of how to run a project in different stages, some

easy-to-read graphical schemes and a number of documents as illustrations.

I consider this task my most difficult assignment. It was my first project and it was

quite a technical text to wrestle through. Since I had only been at the company

for a couple of days, I was not yet familiar with the structures of the company,

which I felt was necessary to make a tailored summary.

3.2.1.2 Updating the welcoming brochure for new employees15

I was asked to update the existing welcoming brochure for new employees. The

old brochure was written some years ago and certain elements (such as the

distinction between business groups and business units) were not yet mentioned.

I started by adding these elements and changing facts (turnover, number of

employees, etc.) that were no longer up-to-date. I inserted parts of the annual

report because they were concise and to the point. At first, I was not sure

whether I could rewrite other parts, so the first draft ended up being an all but

fluent mix of writing styles. The draft was revised by Mrs Dusar and Mr

Vandenbergen. Mrs Dusar changed the division and sequence of the chapters

and told me that I was allowed to rewrite the whole brochure to make the

writing style more uniform. I rewrote the whole brochure, made organization

charts and inserted the suggestions Mrs Dusar made. Now, the brochure consists

of six chapters: a general chapter about Tessenderlo Group (history, different

departments, safety, strategy and mission and so on), a chapter about the

corporate communication department, three chapters focusing on HR-related

topics (remuneration, working time, etc.) and a chapter with practical

information (addresses and telephone numbers, the first day at work, etc.).

By executing this assignment I noticed how difficult it is to adapt an existing text

written by someone else. The task became much easier once I got to rewrite the

texts and dared changing more. Mrs Dusar gave me enough time to complete

the task and provided me with additional information which was a big help.

Once my task was finished, I handed over the brochure to Mr De Clerck. The

document is not quite finished yet, as some parts still need to be discussed and

the chapters about HR need to be updated by HR-department itself.

15 See appendix 2.

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3.2.1.3 Memo on communication of values16

Approximately four years ago, Tessenderlo Group developed a new set of

values. These values serve as a guideline for the whole group. In the beginning of

2007, the management team of the Chemicals business group was renewed. To

take a fresh start this team formulated a values statement specifically for the

Chemicals business group. The statement is still being revised, so I cannot give an

overview of the new values. Mrs Dusar asked me to take on the role of a

communications consultant and suggest means to get these values across. She

specifically told me that just communicating them in the strict sense of the word

– for example, announcing them at the end of a meeting – was not enough. She

asked me to look for ways to really enliven these values.

I started by writing down my own ideas. I thought it was important that all

employees got to attend the revelation of the values, that the values were

presented face-to-face and that every member of the management team was

behind the values. On the internet I found information and concrete cases to

support my points. I also used the Samsonite example that Ine Mariën told us

about in her guest presentation, because it provides an example of how a

manager can truly live by values.

I divided my memo into four parts, each devoted to one phase in the

development of values. In the first part I wrote about the formulation of the

values. The management of the Chemicals business group had already passed

this stage, but I still wrote about it because, to me, it seems such a crucial phase.

I advised to involve the employees in the formulation because it is a unique

chance to create legitimacy. However, when I wrote my theoretical framework I

noticed that not everyone thinks it is a good idea to involve employees in the

formulation of the values. In the next paragraph I gave some advice on how to

write down values. I thought it was important to use a lively language and to

refer to the employees. Then I moved on to the introduction phase where I

focused on making the values visual and concrete (for example by translating

them to concrete goals, measures or situations). I also shone a light on the

function of the management as a role model, because I really believe that a

values-initiative loses all credibility if the employees notice that not every

member of the management is behind the values or that managers go against

the values. In the last part of my memo I advised to regularly organize talking

16 See appendix 3.

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sessions between employees and the management to get an idea of how the

employees experience the values.

I really enjoyed writing this memo because it allowed me to be creative and

write down my own ideas. Mrs Dusar let me work independently and allowed me

all the time I needed. Once it was finished, she read the memo and gave me

good feedback on it, which I really appreciated.

3.2.1.4 Memo on intranet17

For this assignment I had a meeting with Mrs Dusar and Mr De Clerck about the

new corporate intranet that is going to be installed. The existing intranet – TGnet

– operates solely on Belgian level and has a limited scope. It is primarily used for

document sharing and to announce short messages. In the future this intranet will

be replaced by an international intranet that serves the whole group and is

based on better technology. The communication department – in collaboration

with other departments – had just started to identify the needs. I was asked to

write about what the new intranet could look like, to look at other corporate

intranets to find out which items other companies put on there or how they use it,

to study the structure of those intranets, to do desk research about stages in the

development of an intranet and to look for do's and don'ts. Once finished, the

memo would be used as a manual or guideline that could be helpful when

Tessenderlo Group's subsidiaries were asked for their needs and wishes.

To find the necessary information, I started browsing the internet. I found some

quality sites about design, usability, killer applications, new trends (blogs, rss),

stages in development, canonical intranet pages, how to write for the intranet,

possible testing methods and launching possibilities and so on. The material I got

of the internet was sufficient to start writing, so I did not consult any additional

printed sources.

I started my memo by summing up all possible items I encountered, going from

the traditional news items and who-is-who databases to online video

applications and wiki-platforms. Then I gave an overview of possible stages in the

development of an intranet. I suggested that before starting the development, a

company should reflect on whether it really needed an intranet, because their

needs can often be fulfilled by using other technological means. The first stage I

distinguished was the design phase. In this phase a company should formulate

17 See appendix 4.

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the aim and the requirements of the intranet. Then I distinguished the phase of

building and implementation, in which the prototype should be tested. Then I

moved on to the introduction phase and I suggested some communication

instruments that can be used to launch the new intranet. Lastly, I distinguished an

evaluation phase for which I worked out some evaluation methods. To finish my

memo I made a list of do's and don'ts and added screen shots of intranet pages.

On the screenshots I indicated which structures I liked or which elements I would

include.

Mrs Dusar first revised my memo when it was half finished. She asked me to link

the current items on TGnet to the items I proposed and to extend the list of

questions I had summed up as thoughts beforehand, but she made no

fundamental changes. I liked this assignment very much because Mrs Dusar and

Mr De Clerck gave me carte blanche to write as I pleased and because they

gave me enough time to work it out thoroughly. I was also pleased that once the

memo was finished, Mrs Dusar passed it on to the IT-department.

3.2.2 SMALLER TASKS

During my traineeship I also conducted a variety of smaller tasks which

completed my view on what corporate communication exactly involves.

One daily tasks consisted of collecting clippings18. I logged on to Mediargus to

select newspaper articles about Tessenderlo Group or related topics and

browsed through investment magazines to look for information on the

Tessenderlo Chemie share. The selected articles were brought together and sent

to the management. The clippings are an important instrument to monitor the

stakeholders, which is essential to keep the dialogue with these parties going, as I

explained in the theoretical framework.

Other tasks included:

o Small translation tasks, which allowed me to use my English skills in an

specific business context.

o Typing all sorts of texts (programmes and scenario's for company visits,

texts for presentations, etc.), which gave me an insight in the different

topics and tasks the corporate communication department deals with.

18 See appendix 5.

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o Controlling tasks (checking the annual report for mistakes, checking the

site for outdated figures, making a list of printable documents on TGnet).

o Looking up organizations that could be interested in meeting Chinese

investors, which showed me the importance of networking.

o Looking up background information on these organizations to inform the

CEO, which showed me the importance of being concise and to the

point.

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Chapter 4 Concluding thoughts

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4.1 Final Conclusion

For me, the traineeship was a unique experience of which I learned a lot. I got

an insight in the different tasks the corporate communication department is in

charge of. I found out that corporate communication is more than writing press

releases. It involves maintaining media relations, developing the corporate

identity, streamlining the internal communication processes, being pro-active,

organizing events… Due to this wide variety of tasks the department is closely

interrelated with other departments. I noticed that working at the corporate

communication department means you have to be able to deal with a myriad

of topics: you need to be aware the organizational structures, the products, the

market, the financial structures, the context in which the company functions and

so on. This variety in tasks and topics is what makes working at the corporate

communication department of a large, international company so appealing to

me.

Another thing that struck me was the carefulness and the sense of detail that is

evinced, despite the time pressure that is always present. This really appealed to

me because I like to work things out thoroughly and I was given the opportunity

to do that. I learned that asking questions is not something to be afraid of. I had

a lot of questions about the company, its activities and my tasks and the

communication team always patiently and thoroughly answered them, for

which I am grateful. I also noticed that being pro-active and taking initiative

really matters. Mrs Dusar always reacted positively and took my ideas seriously.

In the human sphere, I experienced how important it is to have a good manager

and colleagues. Mrs Dusar is the perfect example of an excellent manager. If I

ever get to manage a team, I will really use her style as an example. She trusts

people and gives them responsibility. Moreover, she does not hesitate to give

good feedback and compliments. It was incredibly motivating when she wrote

"Prima" at the top of a draft or when she sent me an e-mail to say I did well.

When things went wrong she made corrections effectively yet gently. My other

colleagues were equally great. They really made me feel like I was part of the

team, they took the time to explain me things (for example about how they

handle press releases), they told me stories… This made me see that without nice

colleagues any job would be unendurable. I also learned that it is important to

empower people, to give them responsibilities and freedom to perform their

tasks. I noticed that doing this really motivates people to do well.

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My traineeship showed me that the numerous things we learned in the MTB-

programme really are an asset in a business context. The guest presentation on

images and reputations by Ine Mariën inspired me when writing the memo on

values. The text on intercultural communication we read during the English Maior

course proved to be excellent background information to understand the

measures that were taken when a Chinese delegation came to visit the

headquarters. Another text – on employee communication – provided

background information when I wrote the memo on intranet. The languages

courses turned out to be indispensable in an international company situated in

Brussels, although I noticed that my French skills still need to improve. During my

traineeship I was not asked to write a press release, but this would have been no

problem. Thanks to the English Maior course I know exactly which elements I

need to include in a press release and how it needs to be structured.

Needless to say, I think the MTB-programme is perfectly adapted to business.

Especially the projects and the input of the professionals provide an excellent link

to the business world. The focus on languages is also key in a time where

internationalization and global electronic media become more important still. I

certainly would not reduce the number of projects. Yes, it was sometimes though

to fit them all into our planning but what we learned from these projects is far

more important: working together, taking responsibility, generating ideas,

stimulating and supporting each other… For me, the MTB-programme was an

ideal way to finish my education and to step into working life. Keep up the good

work!

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ONLINE DOCUMENTS

BASF AG (2007), Sales and earnings 2006, (on line),

http://berichte.basf.de/en/daten/geschaeftszahlen/umsatz-ergebnis/?id=V00-

dJpjiApVybir0E3, consulted on 25th july 2007.

BASF AG (s.d. (a)), Chemicals, (on line),

http://www.corporate.basf.com/en/ueberuns/profil/chemikalien.htm?id=Pg5EEA

pVzbcp05B, consulted on 25th july 2007.

BASF AG (s.d. (b)), Plastics, (on line),

http://www.corporate.basf.com/en/ueberuns/profil/kunststoffe.htm?id=Pg5EEAp

Vzbcp05B, consulted on 25th july 2007.

BASF AG (s.d. (c)), Performance products, (on line),

http://www.corporate.basf.com/en/ueberuns/profil/veredlungsprodukte.htm?id

=Pg5EEApVzbcp05B, consulted on 25th july 2007.

BASF AG (s.d. (d)), Agricultural products and nutrition, (on line),

http://www.corporate.basf.com/en/ueberuns/profil/pflanzenschutz.htm?id=Pg5

EEApVzbcp05B, consulted on 25th july 2007.

BASF AG (s.d. (e)), Oil & Gas, (on line),

http://www.corporate.basf.com/en/ueberuns/profil/oel_gas.htm?id=Pg5EEApVz

bcp05B, consulted on 25th july 2007.

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BASF AG (s.d. (f)), Sites of BASF Group, (on line),

http://corporate.basf.com/en/ueberuns/global/?id=V00-N.VqAApW3bcp1GX,

consulted on 25th july 2007.

BAYER AG (2007a), Profile and Organization: Names Figures Facts, (on line),

http://www.bayer.com/en/Profile-and-Organization.aspx, consulted on 25th july

2007.

BAYER AG (2007b), Bayer worldwide: Bayer – at home throughout the world, (on

line), http://www.bayer.com/en/Bayer-Worldwide.aspx, consulted on 25th july

2007.

BAYER AG (2007c), Science for a Better Life. Bayer Annual Report 2006, (on line),

http://www.annualreport2006.bayer.com/en/bayer_annualreport_2006.pdfx,

consulted on 25th july 2007.

BVB (2007), Tessenderlo Group wint VOKA-prijs voor interne communicatie voor

grote bedrijven, (on line), http://www.abpe.be/ne/BVB-

site2005/actueel/teslogroup.html, consulted on 25th july 2007.

DSM (2007), Financial key figures, (on line),

http://www.dsm.com/en_US/html/about/interactive_graphs_2006.htm,

consulted on 25th july 2007.

DSM (s.d. (a)), Company profile, (on line),

http://www.dsm.com/en_US/html/about/company_profile_2006.htm, consulted

on 25th july 2007.

DSM (s.d. (b)), Overview of activities, (on line),

http://www.dsm.com/en_US/html/about/activities.htm, consulted on 25th july

2007.

IBM, (s.d.), How we manage by values, (on line),

http://www.ibm.com/annualreport/2004/prospectus/mgmt_c_flash.shtml,

consulted on 25th july 2007.

LONZA (2007), Annual Report 2006: Activity Report, (on line),

http://www.lonza.com/group/en/company/news/reports.-ParSys-0089-

DownloadFile.tmp/AR_e_web.pdf, consulted on 25th july 2007.

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LONZA (s.d.), Worldwide, (on line),

http://www.lonza.com/group/en/company/sites.html, consulted on 25th july

2007.

MONSANTO (2007), It All starts Today. Monsanto Company 2006 Annual Report,

(on line),

http://www.monsanto.com/monsanto/content/investor/financial/reports/2006/2

006AnnualReport.pdf, consulted on 25th july 2007.

MONSANTO (s.d. (a)), Global locations, (on line),

http://www.monsanto.com/monsanto/layout/about_us/locations/default.asp,

consulted on 25th july 2007.

MONSANTO (s.d. (b)), Who are we, (on line),

http://www.monsanto.com/monsanto/layout/about_us/default.asp, consulted

on 25th july 2007.

RHODIA (2007), Document de Référence Exercice 2006, (on line),

http://www.rhodia.com/us/downloads/Rhodia-Document-Reference-2006.pdf,

consulted on 25th july 2007.

RHODIA (s.d. (a)), About us: Profile, (on line),

http://www.rhodia.com/us/f_rhodiaessentiel.asp?mainframe=/us/rhodiaessentiel

/qui/profil_fr.asp&rubrique=Qui&lien=profil, consulted on 25th july 2007.

RHODIA (s.d. (b)), About us: Rhodia in the world, (on line),

http://www.rhodia.com/us/f_rhodiaessentiel.asp?mainframe=/us/rhodiaessentiel

/qui/profil_fr.asp&rubrique=Qui&lien=profil, consulted on 25th july 2007.

RHODIA (s.d. (c)), About us: Our businesses, (on line),

http://rhodia.com/us/f_rhodiaessentiel.asp?mainframe=/us/rhodiaessentiel/qui/

activites_fr.asp&rubrique=Qui&lien=activites, consulted on 25th july 2007.

RUITENBEEK, A. (2006), Coca-Cola zoekt zijn waarden, (on line),

http://www.briskmagazine.nl/00/artikel/644/Coca-

Cola_zoekt_zijn_waarden.html, consulted on 25th july 2007.

SELIGSON, A.L. and CHOI, L. (2006), Critical elements of an organizational ethical

culture, (on line), http://www.ethics.org/erc-publications/organizational-ethical-

culture.asp, consulted on 25th july 2007.

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SOLVAY (2007), Moving Forward Together: Solvay Global Annual Report 2006, (on

line), http://www.solvay-investors.com/static/wma/pdf/9/9/5/5/RA2006GB.pdf,

consulted on 25th july 2007.

SOLVAY (s.d. (a)), Pharmaceuticals, (on line),

http://www.solvay.com/solvayproducts/pharmaceuticals/0,,834-2-0,00.htm,

consulted on 25th july 2007.

SOLVAY (s.d. (b)), Chemicals, (on line),

http://www.solvay.com/solvayproducts/chemicals/0,,836-2-0,00.htm, consulted

on 25th july 2007.

SOLVAY (s.d. (c)), Plastics, (on line),

http://www.solvay.com/solvayproducts/plastics/0,,838-2-0,00.htm, consulted on

25th july 2007.

TESSENDERLO GROUP (2006), Tessenderlo Group presents recovery plan for the

Chemicals Business Group, (on line),

http://www.tessenderlo.com/popup.asp?doctype=News&id=061710002,

consulted on 25th july 2007.

TESSENDERLO GROUP (2007), Flemish government’s grant to Tessenderlo Chemie

and LVM, (on line),

http://www.tessenderlo.com/popup.asp?doctype=News&id=072010008,

consulted on 25th july 2007.

TESSENDERLO GROUP (s.d. (a)), Tessenderlo Chemie share and investor relations,

(on line),

http://www.tessenderlo.com/S01_Corporate/S02_Investor%20Relations/S04_Stock

%20Information/S01_Tess.G%20on%20the%20Stock%20Exchange/content.asp,

consulted on 25th july 2007.

TESSENDERLO GROUP (s.d. (b)), History, (on line),

http://www.tessenderlo.com/S01_Corporate/S01_About%20Us/S09_History/,

consulted on 25th july 2007.

TESSENDERLO GROUP (s.d. (c)), Our mission and objectives, (on line),

http://www.tessenderlo.com/S01_Corporate/S01_About%20Us/S02_Mission%20&

%20Objectives/content.asp, consulted on 25th july 2007.

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TESSENDERLO GROUP (s.d. (d)), General presentation, (on line),

http://www.tessenderlo.com/S01_Corporate/S04_Publications/S04_Company%20

presentations/content.asp, consulted on 25th july 2007.

TESSENDERLO GROUP (s.d. (e)), Our charter: Guidelines for an optimal working

environment, (on line),

http://tesscorpeng.tessenderlogroup.com/IDMWS/DocContent.dll?library=Docm

an^TESLO001&logonid=5515e496e968dbe3faffc745c9efc526&id=041680006,

consulted on 25th july 2007.

TESSENDERLO GROUP (s.d. (f)), Markets and applications, (on line),

http://www.tessenderlo.com/S02_Markets%20&%20Applications/S10_APPLICATIO

NS/S01_Overview/content.asp, consulted on 25th july 2007.

TESSENDERLO GROUP (s.d. (g)), Environmental investments, (on line),

http://www.tessenderlo.com/S03_Safety%20&%20Environment/S03_Environment/

S02_Investments/content.asp, consulted on 25th july 2007.

TESSENDERLO GROUP (s.d. (h)), Recycling initiatives, (on line),

http://www.tessenderlo.com/S03_Safety%20&%20Environment/S06_Recycling%20

Initiatives/content.asp, consulted on 25th july 2007.

TESSENDERLO GROUP (s.d. (i)), Educational projects, (on line),

http://www.tessenderlo.com/S03_Safety%20&%20Environment/S07_Community%

20Programmes/S03_Educational%20projects/content.asp, consulted on 25th july

2007.

TESSENDERLO GROUP (s.d. (j)), Open House events, (on line),

http://www.tessenderlo.com/S03_Safety%20&%20Environment/S07_Community%

20Programmes/S02_Open%20house%20events/content.asp, consulted on 25th

july 2007.

TESSENDERLO GROUP (s.d. (k)), Community programmes, (on line),

http://www.tessenderlo.com/S03_Safety%20&%20Environment/S07_Community%

20Programmes/, consulted on 25th july 2007.

TESSENDERLO GROUP (s.d. (l)), Environmental results, (on line),

http://www.tessenderlo.com/S03_Safety%20&%20Environment/S03_Environment/

S05_Results/content.asp, consulted on 25th july 2007.

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TESSENDERLO GROUP (s.d. (m)), Responsible Care: A commitment towards

present and future generations, (on line),

http://www.tessenderlo.com/S03_Safety%20&%20Environment/S02_Sustainable%

20Development/S02_Responsible%20Care/content.asp, consulted on 25th july

2007.

TNT (2007), Schoolfeeding volunteers, (on line),

http://www.group.tnt.com/wfp/hands-

on/schoolfeedingvolunteers/index.asp?mode, consulted on 25th july 2007.

THE BODY SHOP (2005), The Body Shop Values Report 2005, (on line),

http://valuesreport.thebodyshop.net/pdfs/bodyshop_valuesreport_2005.pdf,

consulted on 25th july 2007.

OTHER DOCUMENTS

KBC SECURITIES (2007), Tessenderlo: Turning the corner, Brussels: KBC Securities NV,

23 p.

TESSENDERLO GROUP (2007a), Onthaalbrochure voor nieuwe werknemers,

unpublished.

TESSENDERLO GROUP (2007b), Annual Report, Brussels: Geert Dusar,151 p.

TESSENDERLO GROUP (2007c), Facts & Figures, Brussels, Geert Dusar, x.