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BCCS NOTES UNIT-II - Corporate Communication
BCCS NOTES UNIT-II - Corporate Communication
CHAPTER – II
CORPORATE COMMUNICATION
1) Corporate communication:
Introduction
Organizations are striving to develop internal managerial expertise in corporate communication and
learn to use the outside expertise of Public Relations (PR) agencies well.
Corporate communication has to be paid attention because:
• missed opportunities and serious threats to business are costly alternatives
• variety of constituencies - employees, customers, competitors, partners- current and potential,
special interest groups, governments and the media are hounding businesses
Organizations therefore have become extremely sensitive towards society at large and consider
corporate communication as a very strong tool to effectively build their reputation and image in the
society. Successful corporate management in the new millennium is essentially about managing the
accelerated pace of change. Companies develop strategies for responding to the changes but often
overlook the importance of communicating the change initiatives to employees. If a strategy must
succeed, it is imperative that the entire organization understands it and works in tandem for achieving
corporate goals.
Corporate citizenship involves the social responsibility of businesses, and the extent to which they
meet legal, ethical and economic responsibilities, as established by shareholders. Corporate citizenship
refers to a company’s responsibilities toward society. The goal is to produce higher standards of living
and quality of life for the communities that surround them and still maintain profitability for
stakeholders. All businesses have basic ethical and legal responsibilities; however the most successful
businesses establish a strong foundation of corporate citizenship, showing a commitment to ethical
behavior by creating a balance between the needs of shareholders and the needs of the community and
environment in the surrounding area. These practices help bring in consumers and establish brand and
company loyalty.
The five stages of corporate citizenship are elementary, engaged, innovative, integrated and
transforming. In the elementary stage, a company’s citizenship activities are basic. They are able to
comply with the standard health, safety and environmental laws, but they do not have the time or the
resources to fully develop greater community involvement. In the engagement stage, citizenship
policies become more comprehensive in the innovative stage, with increased meetings and
consultations with shareholders and through participation in forums and other outlets that promote
innovative corporate citizenship policies. In the integrated stage, Performance in community activities
is monitored, and these activities are driven into the lines of a business. Once companies reach the
transforming stage, they understand that corporate citizenship plays a strategic part in fueling sales
growth and expansion to new markets. Corporate citizenship could influence consumer opinion and
behavior, and essentially turn consumers into brand champions. Respondents indicated that good
corporate citizenship by a company would inspire them to consider the following actions (in ranking
order):
1. Be willing to try the company’s products for the first time.
2. Welcome the company into their community.
3. Recommend the company’s products and services to friends and family.
4. Improve the overall trust for the company, its people, and its products.
5. Improve the overall opinion of the company’s reputation.
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In its simplest terms, many equate corporate social responsibility (CSR) with being a good corporate
citizenship by supporting worthwhile community causes. CSR is a concept whereby companies
integrate social and environmental concerns in their business operations and in their interactions with
their stakeholders on a voluntary basis. Corporate social responsibility is being increasingly linked to
core business objectives.
Macro-level orientation
The Micro-Level Perspective
The micro-level perspective focuses on small details and daily interactions. It's the perspective you
gain when you closely home in on an individual problem and try to establish the elements of your
business practices that contribute to that problem. When you track an individual worker's performance,
examine the interactions between a worker and customer or offer training on a specific task, you're
focusing on micro-level processes.
The Macro-Level Perspective
The macro-level perspective considers the full panorama of the business. Macro-level issues typically
incorporate several smaller micro-level issues. When you notice that your business's profits have
diminished, that you're getting negative reviews online or that employee morale seems low, you're
taking a macro-level perspective.
Goal setting
If you want to succeed, you need to set goals. Without goals you lack focus and direction. Goal setting
not only allows you to take control of your life's direction; it also provides you a benchmark for
determining whether you are actually succeeding. To accomplish your goals, however, you need to
know how to set them. You can't simply say, "I want" and expect it to happen. Goal setting is a process
that starts with careful consideration of what you want to achieve, and ends with a lot of hard work to
actually do it. In between, there are some very well-defined steps that transcend the specifics of each
goal. Knowing these steps will allow you to formulate goals that you can accomplish.
leverage their understanding and experience to think things through. They anticipate outcomes based
on each situation so that they can respond strategically to get the results they wish to achieve.
Shaping memory
Memory works in tandem with symbolism to help tell and preserve organizational stories and histories,
as well as help shape our understanding of our organizational lives. Thus, if organizations are
composed of individuals and both organizations and individuals compose society, then studying the
intersection of individual and collective memory via autoethnographic investigation of corporate
culture should provide insights that better inform our understanding of corporate life and its
contributions to society. Second, we argue that having a better understanding of collective
organizational memories could provide an insider’s lens into the management practices that are taking
place within an organization as well as how those practices can be used to shape and influence
organizational culture and the messages organizations disseminate externally and internally (that is
their production of cultural artifacts). Third, we argue that because organizational cultures emerge
from members of an organization’s individual and collective memories, their narratives, (including
how they choose to remember, forget, and/or retell events), as well as their symbol using practices,
studying and understanding culture and its subsidiary organizational memory can provide valuable
insight into ways business is practiced.
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Evolving
Corporate communication represents an evolving area of study within the increasing puzzle of global
growth in the twenty-first century. The focus is to contribute to the development of a new theory of
corporate constructs of identity, image and reputation, formulating competitive advantage with
strategy formulation, within the framework of the new political economy – these economies do not
and cannot operate in a vacuum; the economies of scale are directly interrelated as a global society.
A crisis in a business scenario is any situation that threatens the integrity or reputation of a company,
usually brought on by adverse or negative media attention. It can involve; legal dispute, theft, accident,
fire, flood or manmade disaster. If handled correctly the damage can be minimized. One crucial thing
to remember in crisis is to tell it all, tell it fast and tell the truth. This can minimize the repercussions.
The first thing to do in a crisis is to contact the CEO and the chief of the public relations department.
In crisis situations:
1. Pace of the conflict accelerates dramatically and the parties have to react very quickly.
2. Increase levels of fear, anger and hostility complicate the crisis.
3. Communication is distorted or cut off entirely. As a result rumours and assumptions spread
fast.
4. The parties try to keep their real interest, strategies and tactics secret and use disruptive
strategies to try to increase their relative power.
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5. The parties’ ability to make rapid and sound decision is largely dependent on their ability to
quickly obtain reliable information. So communication needs to be increased during crises.
6. Communication involves efforts to prevent and halt violent confrontations.
Crisis Preparedness: Corporations are vulnerable to a crisis that can hurt their business, damage
consumers, investor and employee confidence, and in worst cases even threaten their very existence.
Corporate crises can occur due to:
• Intense scrutiny from variety of interests groups or media
• Product defects or contamination
• Disputes in industrial relations
• Accidents,
• Takeover bids
• Boardroom battles
• Family separation
• Litigation
• Government investigation or major disasters.
Knee-jerk responses or thinking that crisis will blow over will only complicate the situation. Besides
identifying the problem and resolving it, the company must reach out to win the hearts and minds of
the public in general and its direct stakeholders in particular.
It must act decisively to:
• Maintain its credibility
• Sustain the loyalty of its customers
• The morale of his employees and the commitment of its investors
Communication challenges are faced by the companies which face litigation and investigation by
government. Crisis communicating plan – organizing and completing a plan that works
The plan determines whether a company gets hurt or grows as a result of the crisis.
The two key elements of any crisis plan are:
1. The crisis plan itself to deal with issue at hand, to minimize the loss and downtime and
2. The communication plan to communicate with the press and public about the crisis.
Media Release in Crisis Situation:
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One individual should be designated as a primary spokesperson to represent the company, make
official statement and answer media questions throughout the crisis. A backup spokesperson should
also be identified to fill the position in case of primary spokesperson’s unavailability. Individuals
serving as technical experts or advisors should be designated; they may be a financial expert, an
engineer, a leader in the community or any such person necessary during a specific kind of crisis. The
authority or technical expert in the field should be available to supplement the knowledge of the
spokesperson. The spokesperson will take some brainstorming by crisis communication team before
communicating with the media.
The criteria for spokesperson, backup spokesperson and crisis communication expert are they
should be:
• comfortable in front of the camera and with reporters
• skilled in handling media and in directing responses to another topic
• identifying the key points
• speak without using jargon
• respectful to the role of the reporter
• knowledgeable about the organization and the crisis at hand
• able to establish credibility with the media
• able to project confidence in the audience
• suitable in regard to diction, appearance and charisma
• accessible to media and internal communication personnel
• remain calm in stressful situations
• sincere, straightforward and believable
Prepared Statements:
Failure to communicate immediately during a crisis may lead to the loss if the greatest opportunity to
control the event. A fill- in the-blank news release can be used with little or no preparation as the first
news releases. The first release should include at the minimum the, who, what, when and where of the
crisis situation.
1. Give facts gathered from the reliable sources and are confirmed ought to be shared.
2. Do not overreach yourself or speculate.
3. Limit the role, exceeding the limit is a mistake.
4. Show concern for the public and your employees, it will help secure the loyalty of your
customers and employees by taking the initiative to share information with them.
5. Have prepared statements in hand to make initial general response to the media.
6. Develop prepared statements to be made by the spokesperson at the onset of any media
interaction.
7. Statements can be read over telephone to reporters who call to request for information but are
not represented at news conference or briefings.
8. Statements can be sent by fax or email on request.
9. Definitive time must be allotted for next news conference or release of information to buy time
to add information.
Key audience:
In a crisis situation, the most effective method of communication to reach the group of people is to be
chosen. Ensure that communication reaches each group of the audience. The people served by public
affairs or communication departments include employees, customers, industrial groups, academia
etc…
6) Cross-cultural Communication:
Introduction: Culture refers to a group or community with which we share common experiences that
shape the way we understand the world. It includes:
The all- inclusive manner of defining culture reveals that an individual belongs to many cultures at
once. Culture influences the way, the problems are approached, and how the communication takes
place in groups and communities.
Culture and communication go hand in hand. Not acknowledging cross-cultural similarities and
intercultural variations may lead to stereotyping people from different backgrounds, exaggerating and
caricaturing other cultures and judging their specific ways of communication as fundamentally
different and implicitly wrong. On the other hand, understanding cultural differences will pave way
for effective communication at various workplaces. This will in turn lead to organizational
effectiveness and subsequent progress.
It is virtually impossible to say or convey anything which does not have any linkages to a cultural
context:
• Direct or indirect
• Written or spoken
• Action or gesture
Concept of Cross-cultural Communication
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Although cultural aspect of communication clouds even the simplest of delicate interactions, not many
people feel the need to truly face it. As a result fashionable phrases which are uttered appear to be
exercises in politically correct language or attempts at controlling personal irritation.
Cross-cultural communication:
• Looks at establishing and understanding how people from different cultures communicate with
each other.
• Tries to bring together unrelated areas like cultural anthropology and other established areas of
communication.
• Produces guidelines with which people from different cultures can better communicate with
each other.
• Identifies ‘culture’ as the root of communication challenge and misunderstandings and
misinterpretations as the most common problem people face.
The differences between these two contexts can be experienced during business meetings and sales
negotiations here people from different context meet. Ex: In Japan the senior most managers would
enter a room first. If someone from the low context culture who is not aware of this enters the room
first they will offend their Japanese manager.
Opening and Closing Conversations: Knowledge regarding modes of address, salutations, levels
of deference to age, or social position, gender differences, acceptable ways to conclude gracefully
etc is required. These are artificial customs, to a certain degree, and there is probably no universally
right or wrong way to go about these things.
Interrupting: In some cultures, interruptions (vocal, physical, or emotional) are considered default
conversational styles but for people from Northern Europe or the US it can be mistaken for
argument and hostility.
Use of Silence: Silence before a response is considered as a sign of thoughtfulness, yet at times it
may is perceived as a sign of hostility.
Appropriate topics of conversation: In some places talking of family issues and money is
considered vulgar but such topics are basis of afternoon television talk in the West. Businessmen
should learn the customs that are relevant to the deals, transaction of commerce, and the degree to
which details are specified in advance and enumerated in writing across cultures.
Use of humor: Use of humor is seen as a sign of disrespect by some but in the West, people often
try to build rapport through humor.
Knowing how much to say: In some places brevity is appreciated (Westerners) in other places it
is better to explain a rather small point using a longer preamble. There are occasions however the
Westerners say too much and lose the ability to communicate well based on the context.
Sequencing elements during conversation: the appropriate time to touch a sensitive issue in a
conversation or negotiation is a matter of concern. The sequencing is also important. Right question
should be asked in the right way and also at the right time.
***
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Objective
The purpose of this communication strategy is to ensure that communication is well coordinated,
effectively managed and responsive to the information needs of employees, the public etc. With the
arrival on the stage of sophisticated smart phones, ipads, laptops, tablets, etc., there is no question that
the manner of communication has been dramatically shaped by such explosion of online networks. On
the other hand, society is demanding transparency and involvement in policy formulation matters
making it imperative that clear, effective and flexible internal and external communication strategies
and skills are designed and implemented by organizations.
Corporate Communications’ decisions affect the credibility and indeed the viability of every
organization, either for the better or for the worse Organizations are relying more and more on
corporate communications practitioners to help them win public support, trust, goodwill and
confidence. Without the critical support of its publics, an organization’s very existence is doomed.
Corporate Communications department in any organization should act as the corporate antenna that
quivers to every shift in the social, economic, technological and political breeze.
In corporate work, the task of corporate communications personnel is to interpret the goals, methods,
products and services of commerce and industry to the public and simultaneously to help their
employers operate in a socially responsible manner. Such practitioners indeed function as bridges.
Broadly speaking, an organization has two publics, the internal publics who are the employees and the
external publics who include the organization’s stockholders, security analysts, investors, clients, and
suppliers, among others. The corporate Communications department in an organization must device
strategies of communicating to each of these diverse publics also called concerns as above, if the
organization is to effectively meet its goals.
Corporate sponsorships of special events like sports, philanthropic activities, road shows, a television
program funded by an organization, institutional facilities and staff brochures and grand opening
ceremonies are also done on basis of research Organizations make use of these events and publications
to promote their corporate image, products and services. A communication strategy is the critical
piece bridging the situation analysis and the implementation of a social and behavior change
communication (SBCC) program. It is a written plan that details how an SBCC program will
reach its vision, given the current situation. Effective communication strategies use a
systematic process and behavioral theory to design and implement communication activities
that encourage sustainable social and behavior change.
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Internal Communications
All organizations aspire to create better work places with open employee communications, high morale
and retention rates. Through effective communications, employees are better able to understand,
appreciate, contribute to and support organization's goals and objectives, and be motivated to achieve
maximum performance and superior customer service. Communication among staff members must be
open, timely and collaborative to achieve organization's goals and to ensure quality communication.
Informing our staff of matters before informing the public enhances employee morale, strengthens the
“team” approach and provides for a better level of customer service.
External Communications
External communications are central to the success of the organization. As a function of good
organization, open and proactive communications ensure that the public receives clear, relevant and
timely information from the organization.
✓ What must be known (ex.by-laws and regulations)
✓ What should be known
✓ What is nice to know
Social Media
Traditional methods of communication still have their role, however social media – engaged
conversation supported by on-line tools - has fundamentally changed the way our stakeholders
discover, consume and share information and it has enabled millions of people and organizations
worldwide to connect and communicate in new and innovative ways. We are in the age of social media
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and it is dramatically altering the way we communicate. It has created a new world. Social media is
not just a rich source of information; it enables organizations to become proactive, influence
perceptions, and address the needs and interests of their audiences.
Social media is a nebulous term to define, but basically refers to online communication tools that have
more to do with networking and conversations. Examples of social media sites include Facebook,
YouTube, LinkedIn and Twitter to name a few. An added benefit of social media in comparison to
traditional media is that it is easily measured and provides a mechanism for response. The social media
strategy takes the approach of starting small, doing a few things well, and growing from there.
Used correctly, social media can greatly enhance our organization’s brand and can facilitate business
development, job growth and community pride.
Media Relations
Purpose
✓ To ensure all communication with the media is consistent, well-informed, timely and
appropriate.
✓ To clearly indicate authorized spokespersons.
✓ To maintain positive relations with the media by providing them with accurate, timely
information.
✓ To improve communication with internal and external stakeholders and enhance public image.
✓ To establish protocols and consistent methods of managing communications to the media to
ensure relevant and approved comments.
✓ To limit the possibility of miscommunication and to maximize the effectiveness of staff by
ensuring that comments to the media are made only through authorized staff.
✓ To establish guidelines for effectively communicating and publicizing news about the
organization with the media.
Authorized Spokespersons
The CAO may nominate other staff to act as spokespeople for the organization or where it is most
appropriate to address specific departmentally focused items. It is essential that authorized
spokespeople for the organization employ best practices to ensure that the organization speaks with
one voice and presents clear and concise information.
Advertising
A corporate identity and branding program should encompass vehicles and equipment, employee
uniforms, signs, advertisements, correspondence, email signatures, publications and business cards.
COMMUNICATION METHODS
Annual Reports
The report will be published and made available during the last quarter of every financial year. It will
address the main problems and challenges encountered in executing projects, programmes and
activities. Furthermore, the publication will be of Professional quality and layout.
Public Events
The organization will annually present itself to the public at trade fairs/ business expo held at national
level country wide. This will help to provide and explain information on various
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Public Relations
To improve the image of the organization all documents will have to be the same in appearance (font
face and size; paper layout, alignment, indentation and spacing). There has to be consistence in the
design and style of the ministry’s publications to exhibit corporate branding.
Newsletter
A newsletter will be released every quarter to serve as an instrument that facilitates both internal and
external information sharing with the staff and stakeholders. It will be necessary to print hardcopies in
addition to circulating softcopies via email.
Website
Website should enhance professionalism and effectiveness in information sharing with the latest and
updated information. The webmaster is tasked to maintain and upload information onto the site, while
the general upkeep such as constant updates and feeding relevant information to the site remains with
the Corporate Communications Office. Information for update from all units will be communicated to
the Communications Unit via Intranet which will then do the update. Facebook account will be created
and utilized fully to create an interactive platform offering the public an opportunity to communicate.
b. Events Management: Given that the delivery of the activities of the strategy in an efficient and
professional manner would require a fulltime focus, the ministry will need to strengthen the public
relations function to have enough human power to manage the implementation of the activities.
c. Performance Reviews: On a six monthly basis, management with the support of an
external consultant will prepare and host a performance review of the strategy.
d. Impact Assessment: Towards the end of the yearly communication strategy implementation period,
an impact assessment will be carried out. This will include the execution of a survey to assess the
impact of the implementation of the strategy.
Context
Before you get into the detail of what is new in a strategy, it is important to recognize the context in
which it is being created. Crucially, this includes linking the strategy to the departmental business
objectives or strategic priorities. Setting communications in the context of a departmental business
case is crucial in making the case for them. A second crucial area of context is an assessment of what
we already know, whether this is about the audience, the product, the service, the initiative or previous
attempts at communication.
Insight
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Insight is a deep truth based on behaviour, experiences, attitudes, emotions or beliefs that is powerful
enough to effect change. The four key sources of insight are data, research, and
environment/technology and people closeness.
Strategic options
The crux of the strategy should show the strategic options that have been considered and the choice
that has ultimately been settled on. It should be founded on audience insight, and linked back to the
context in which you are operating. It is important to demonstrate consideration of a number of
alternatives here, and the factors that drove the eventual choice.
Stakeholders
The strategy should consider the various audiences and the relationships between them. In addition to
a description of the end customer or citizen, this should include:
• Partners;
• Delivery agents;
• Interested bodies and individuals; and
• Staff (in the department and/or agency).
This is also the stage at which consideration needs to be given to the internal communications aspects
of the project.
Outline of approach
The detailed elements of communication media and channels are generally presented in a separate
plan. However, the strategy should present an outline of how the ideas will be put into practice.
Crucially, it should identify the role of each medium and the communications milestones, and present
a timeline. This is also the point at which full consideration should be given to the diversity of the
audiences.
Resources
Having established what we are going to do and for whom, the strategy now needs to set out the budget
and resources required, and how much of these are already secured.
This is also a good place to set out roles and responsibilities.
Interdependencies
Depending on the range of the initiative covered by the strategy, it might be useful to set out a series
of interdependencies. If, for example, the strategy addresses only part of a strategic priority, is there
activity planned to complete the rest of the work? This is also an opportunity to identify and mitigate
against potential clashes/duplication and identify synergies.
Risks and assumptions
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Whatever the recommendations of the strategy, there is certain to be an element of risk. This may be
associated with:
• unknowable reactions from stakeholders or other audiences;
• Uncosted elements of the strategy; or
• The evolving nature of many of the policy areas being worked in.
A complete strategy should identify the key risks associated with the recommended strategic approach,
their likelihood of occurring/potential impact and top-line mitigation plans. The assumptions that will
have necessarily been made to complete this document should be identified, and the impact of mistaken
assumptions acknowledged.
While the headings above serve as a guide, it is important to note that the communication strategy is a
living document. Key sections should be added as they are developed, e.g. the core script, role of
media, creative idea, creative guidelines, budget breakdown, stakeholder plan, etc.
“Media release in crisis situations play a significant role”. Explain. 14 CO2, CO6