UNIT 1- CORPORATE COMMUNICATION

Corporate Communication Corporate communication creates an efficient and effective

avenue of communication with employees, consumers, investors and many others locally and
globally. A great deal of management’s current concern for employee productivity and the
need to empower people has revolved around the use of teams. But more often what is
required is the simplest need of all — communication.
Meaning of Corporate Communication:
‘Corporate Organisation’ means an organisation formed by some people, having a separate
entity and perpetual succession.A company, statutory corporation, co-operative ventures, etc.
are considered to be corporate organisations because these are registered and have separate
legal entity and perpetual existence.

Generally such organisations are not small they are medium or large in size. Therefore,
exchange of information and news with a large number of people within and outside the
organisation is required to be made.

Various departments and employees of the organisations are connected through

communication network by phones, face-to-face discussion, e-mail, fax, memos, etc. to
convey orders, instructions and information, to supervise and evaluate performance, to
understand and perform individual job, to identify and solve a problem and, ultimately, to
fulfill the objectives of the organisation.

External communication with the customers, vendors, distributors, competitors, investors,

government agencies, etc., through letters, reports, memos, phones, faxes, websites, internet,
etc., are made to introduce, negotiate, co-ordinate, explain, interact, discuss and to develop
co-operation and understanding.

Therefore, corporate communication refers to a process of communication through which the

managers, supervisors and executives exchange their views, opinions, feelings, etc. with the
subordinates and employees in any corporate organisation and negotiate with the outside
world with a view to fulfilling the objectives of the organisation.

Need for Corporate Communication:

• Positive and favourable public perception

• Effective and efficient avenues of communication
• Strong corporate culture, corporate identity and corporate philosophy
• Genuine sense of corporate citizenship.

Functions of PR Functions performed by corporate PR Departments and PR

agencies have many factors in common. Given below are most of the common
functions:
1. Public Relations Policy: Develop and recommend corporate public relations policy
and share it with top management and all departments. This is truer for PR agencies.
2. Statements and Press Releases: Preparation of corporate statements, sometimes
speeches for executives and press releases are to be prepared by the PR personnel. In
the process, they are in a position to articulate and project positive image of the
company or product or policies.
 3. Publicity: Issuing announcements of company activities and products to media and
community. Planning promotional campaign using media is also a vital function.
Handling inquiries from press and people at large is a part of the function.
4. Maintaining Relations: The PR personnel are expected to maintain liaisons with
Government units at local, national and international levels. They are expected to
uphold good relations with the community as ‘good neighbours’. This includes
compliance with environment protection standards, giving employment opportunities
to locals, and cooperating and participating in locality development programmes.
Communication between company and shareholders and with other investors is also
an important part of maintaining relations. Sometimes the PR agency may have to
prepare annual/quarterly reports and planning meetings of stockholders.
5. Publications: Preparing and publishing in-house magazines is also sometimes the
function of a PR agency.

Characteristics of Corporate Communication:

The various characteristics of corporate communication are mentioned below:

1. Formal Communication:
Most of the corporate communications are formal in nature. Orders, instructions, information,
suggestions, etc. are sent, maintaining formal procedure in a systematic way. If has to pass
through several organisational stages.

2. Informal Communication:
The size and structure of a corporate organisation being large and complex, informal
communication or grapevine communication among different groups of employees takes
place side by side with formal communication.

3. Internal and External Communication:

Exchange of information with a large number of people within and outside the business is
required in corporate communication. Internal communication with the managers and
employees, and external communication with the customers, vendors, distributors,
competitors, investors, government offices, etc. are made.

4. Oral and Written Communication:

While oral communication is used for closer and internal communication with the employees,
written communication is made with the outsiders and distant people.

5. Wide Coverage:
Corporate organisations are large and a wide range of people are required to be covered in
communication. People within the organisation at different levels in different departments
and a large number of people outside the organisation are required to be communicated
within the course of running the activities of the organisation.

6. Means of Communication:
Phones, face-to-face conversation, e-mail, fax, telegrams, memos, website, internet, video
conference, etc. are used as the mediums or channels of corporate communication.

7. Feedback:
As in the case of other communication, feedback is an essential element of successful
corporate communication. It is a two-way process of sending information and receiving
response. Through feedback the sender can know the reaction’ of the recipient and take
necessary action.

8. Long-term System:
Corporate organisation has a perpetual existence. So, corporate communication is not a
temporary arrangement. It is a long-term system or process. Communication is carried out
continuously through a stable process.

9. Continuous Flow of Communication:

In a corporate organisation, flow of communication is continuous and uninterrupted;
continuous due to the organisation’s perpetual existence, and uninterrupted owing to
following the formal or official channel.

10. Reliable Information:

In a corporate organisation, information is collected through various sources and decisions
are taken after necessary scanning, scrutinizing, etc. to make the information dependable and
correct.

Importance of Corporate Communication:

Communication has an important role to play in the corporate world. With the increase in the
complexities of activities in modern business, its importance is growing day-by-day. To
achieve the objectives of the organisation, co-ordination among the persons and departments
within the organisation and establishment of connecting link with the outside world are very
much necessary.

Motivating the employees for better and greater performance, facilitating group performance,
controlling their activities, taking corrective measures, wiping out misunderstanding,
maintaining peace, establishing discipline, and, above all, ensuring the quality of work within
the organisation is possible through effective communication.
Establishing link with the outside world—with the customers, vendors, investors, bankers,
similar business organisations within and outside the country, various departments of the
government, etc. also depends on communication. Corporate business houses are, in most
cases, engaged in international business. Excellence in communication in such cases is a
basic need.

They are required to make corporate presentation of their goods and services, inform and
report, explain change, interact with the colleagues, motivate and support the staff, supervise,
organise and co-ordinate a course of action, build and maintain relationship with overseas
clients, participate in meeting, introduce themselves as business houses, promote a sales
drive, make market research, cope with mixed language problem interacting with the foreign
colleagues and so on. All these activities require communication skill.

Phone, e-mail, fax, office memos, verbal communication, etc. are the internal means of
corporate communication. External communication depends on phones, letters, fax, website,
internet, video conferencing, etc.

The importance of corporate communication may be described as follows:

1. Internal Co-ordination:
To fulfill the objectives of the organisation, co-ordination among the employees is necessary
and to co-ordinate various activities communication is essential. Corporate organisation being
large in size, division of work and specialisation in activities are the characteristics of such
organisation. Communication helps to co-ordinate such activities and to develop co-
operation.

2. Connecting Link with the Outside World:

In a corporate organisation, communication with the external people, such as customers,
vendors, investors, competitors, government departments, etc. are essential. Even connecting
links with the foreign counterparts and centres are necessary for proper functioning of the
organisation.

3. Motivation:
Lack of communication creates distrust, doubts and misunderstanding among the
subordinates. Proper communication helps to remove them and create an environment of
mutual co-operation, trust and dependence and, ultimately, achieve acceptance of the
leadership of the official head.

Communication helps to motivate the employees to obey the orders and directives of the
management authority. The feedback of the employees also enlightens the managers. The
interaction between the managers and the employees improves the relation between them and
encourages all to devote themselves fully to achieve the objectives of the organisation.

4. Efficient Management:
George Terry’s remark that communication works as a lubricant to increase the efficiency of
management is applicable to corporate organisations more appropriately. Communication
supplies the managers and employees with the information, co-ordinates and motivates the
employees.

This results in co-operation and better performance, resolves conflicts, builds confidence and
ultimately develops efficient management. The managers, supervisors and executives get
instructions, orders, messages, etc. from their superiors through communication, become
aware of their duties and responsibilities and exact performance from their subordinates.
Thus, communication stimulates efficient management.

5. Decision-making and Implementation:

The success of any corporate organisation depends largely upon decision-making. Right
decision-making, again, depends upon correct and timely information which is obtained
through communication. Again, implementation of the decision requires proper
communication.

The managers convey the procedure of implementing the decision through communication
channels and evaluate the work of the employees. Thus, corporate communication has a
meaningful role in decision-making and its implementation.

6. Leadership:
The manager communicates orders and instructions to the subordinates, who, in turn, carry
out the instructions and sometimes send feedback in the form of suggestions, grievances and
complaints. The manager tries to remove the inconvenience as far as possible. The entire
process establishes the basis of leadership.

7. Corrective Measures:
In a corporate organisation the number of employees is large. Everybody’s performance may
not achieve required standard and some corrective measures may become necessary. Such
measures against the employees not performing their duties properly can also be taken
through communication. Communication thus protects the interest of the organisation.

8. Speed:
Speed is the key word of today’s corporate world. Modern technologies have made
communication faster. Now, no one has to wait for weeks or months for a reply letter. E-mail,
fax, internet, etc. have made communication almost instant. Immediate flow of information
helps in taking correct decision in time and anticipates solution to a probable problem.

9. Discipline and Peace:

Maintenance of discipline in large corporate sector is difficult. Control over a large number
of managers and employees is not an easy task. But regular communication (Two-way)
between the management authority and the workers creates a healthy human relation and
sense of co-operation, assistance and unity. Thus, peace is established and discipline is
maintained within the organisation.

10. Training:
Communication is necessary in imparting training to the managers, supervisors, executives
and general employees to upgrade their knowledge and skill of performance in order to meet
the needs of the changing corporate world.
Guidelines for Effective Corporate Communication
Corporate communication to be effective should follow some guidelines stated below:
1. It should be simple. Jargon and buzz words create confusion and difficulty in
understanding.

2. It should be concise. Repetition of words and unnecessary explanation are to be avoided. It

should be kept in mind that more communication is not necessarily better communication.

3. It should be clear in meaning and free from ambiguity.

4. The message should be courteous, no matter whether it is being sent to the subordinates, to
the superiors, or to the peer persons. It is to be remembered that courtesy begets courtesy.

5. The communication should give correct information in proper time and in right manner.

6. It should be complete in all respects. Before communicating one should check whether the
following ‘5 Whs’ are answered: Who, What, Where, When and Why.

7. Corporate communication should be consistent to the norms of the organisation. It should

keep track of the previous communication and maintain a continuity.

8. Metaphors, analogy or examples are sometimes necessary to bring out the meaning of
communication easily. So, appropriate use of these is recommended for better
communication.
 9. Repetition of the key message is necessary in some cases. To become sure about the
success, the communicator sometimes repeats the key message.

10. An effective communication should have proper feedback. Two-way communication

should be encouraged.

11. Proper planning before communication is necessary. The success of the entire
communication process depends largely on planning in advance.

Stakeholder segmentation

It is the process of putting the stakeholders in the right groups based on their influence,
persona, roles, interest, financial stake, etc.

The reasons why you need one, are akin to the reasons why a consumer segmentation is often
needed. For many businesses, at its simplest, there is a need to provide a better CX and to do
so in a cost efficient way. In other words, to communicate with their customers in a way that
feels personal & relevant to each one; whilst not needing to have a different version for each
customer.
Identifying groups of customers, who are similar enough (in life-stage, affluence, behaviour
or attitudes) has been key to CRM. Once identified they have enabled segmented
communication, propositions and even CX journeys. When done well, this can enable a
positive experience for each customer, who feels valued.
I’m sure you can see that achieving such a positive impact, for your priority stakeholders, is
as important. Plus, as we explained in post on stakeholder mapping, you don’t have time to
do everything differently for each one. A stakeholder segmentation, that enables you to group
them in ways that work for them, is a powerful tool. It should enable you to develop a few
variations of engagement/influencing approach, that feel personal for them.

Which tool can I use for segmenting my stakeholders?

If you’ve been convinced that segmenting your stakeholders makes sense, your next
challenge is how? Unlike consumer segmentations, the market is not awash with advertised
solutions.
Historically, leadership development programmes have tended to advocate a psychographic
segmentation. These have also been popular for team building. I suspect you have already
been profiled by more than one. The most widely used variants are:
Scope of Corporate Communication

When it comes to corporate communication, how you communicate with your employees
internally is just as important as the image you portray to the public. That’s why a strong
corporate communication plan should include the following elements:

• Employee communications, including policies and procedures, events, team-building

activities and newsletters
• Public relations, such as press releases, sponsorships, community outreach and crisis
management

• Internet marketing, including social media, company websites, online advertising and
apps

• Customer communications, which encompasses sales and marketing directly to potential

clients and customers

• Investor relations, which keep shareholders and other investors regularly informed on the
status and progress of the company

All of these elements of corporate communication should be integrated to ensure that the
messaging, goals and target audience are streamlined and consistent. Establishing a good
corporate communication plan requires a set plan for each discrete element.

Importance of Corporate Communication

Setting and executing a solid corporate communication plan keeps your company on track
to meet its goals. It also has a lot of other benefits that enhance your company.

The importance of corporate communication includes:

• Establishing a strong company brand that is recognizable through all corporate

communication

• Ensuring that all employees from the top down know how to communicate that brand and
feel comfortable doing so

• Building brand trust both inside and outside the organization

• Creating open channels of communication that allow for feedback, criticism and positive
reinforcement

• Engaging with customers and clients and providing them a voice as well as a look into your
company

• Enhancing transparency with employees, shareholders and the public

• Keeping your staff on track with goals and company messaging

• Internal communications (IC)

• It is the function responsible for effective communications among participants within

an organization. The scope of the function varies by organization and practitioner,
from producing and delivering messages and campaigns on behalf of management, to
facilitating two-way dialogue and developing the communication skills of the
organization's participants.
 • Modern understanding of internal communications is a field of its own and draws on
the theory and practice of related professions, not least journalism, knowledge
management, public relations (e.g., media relations), marketing and human resources,
as well as wider organizational studies, communication theory, social
psychology, sociology and political science.
MEMO

A memo has a header that clearly indicates who sent it and who the intended recipients are.
Pay particular attention to the title of the individual(s) in this section. Date and subject lines
are also present, followed by a message that contains a declaration, a discussion, and a
summary.

Memo Purpose

A memo’s purpose is often to inform, but it occasionally includes an element of persuasion or

a call to action. All organizations have informal and formal communication networks. The
unofficial, informal communication network within an organization is often called
the grapevine, and it is often characterized by rumour, gossip, and innuendo. On the
grapevine, one person may hear that someone else is going to be laid off and start passing the
news around. Rumours change and transform as they are passed from person to person, and
before you know it, the word is that they are shutting down your entire department.

One effective way to address informal, unofficial speculation is to spell out clearly for all
employees what is going on with a particular issue. If budget cuts are a concern, then it may
be wise to send a memo explaining the changes that are imminent. If a company wants
employees to take action, they may also issue a memorandum. For example, on February 13,
2009, upper management at the Panasonic Corporation issued a declaration that all
employees should buy at least $1,600 worth of Panasonic products. The company president
noted that if everyone supported the company with purchases, it would benefit all (Lewis,
2009).

While memos do not normally include a call to action that requires personal spending, they
often represent the business or organization’s interests. They may also include statements that
align business and employee interest, and underscore common ground and benefit.

Memo Format

A memo has a header that clearly indicates who sent it and who the intended recipients are.
Pay particular attention to the title of the individual(s) in this section. Date and subject lines
are also present, followed by a message that contains a declaration, a discussion, and a
summary.

In a standard writing format, we might expect to see an introduction, a body, and a

conclusion. All these are present in a memo, and each part has a clear purpose. The
declaration in the opening uses a declarative sentence to announce the main topic. The
discussion elaborates or lists major points associated with the topic, and the conclusion serves
as a summary.

Let’s examine a sample memo.

Figure 9.3

Five Tips for Effective Business Memos

Audience Orientation

Always consider the audience and their needs when preparing a memo. An acronym or
abbreviation that is known to management may not be known by all the employees of the
organization, and if the memo is to be posted and distributed within the organization, the goal
is clear and concise communication at all levels with no ambiguity.

Professional, Formal Tone

Memos are often announcements, and the person sending the memo speaks for a part or all of
the organization. While it may contain a request for feedback, the announcement itself is
linear, from the organization to the employees. The memo may have legal standing as it often
reflects policies or procedures, and may reference an existing or new policy in the employee
manual, for example.

Subject Emphasis

The subject is normally declared in the subject line and should be clear and concise. If the
memo is announcing the observance of a holiday, for example, the specific holiday should be
named in the subject line—for example, use “Thanksgiving weekend schedule” rather than
“holiday observance”.

Direct Format

Some written business communication allows for a choice between direct and indirect
formats, but memorandums are always direct. The purpose is clearly announced.

Objectivity

Memos are a place for just the facts, and should have an objective tone without personal bias,
preference, or interest on display. Avoid subjectivity.

REPORT

A report is a document that presents information in an organized format for a specific

audience and purpose. Although summaries of reports may be delivered orally,
complete reports are almost always in the form of written documents.

Formal Report
A formal report is an official report that contains detailed information, research, and data
necessary to make business decisions. This report is generally written for the purpose of
solving a problem.
Some examples of formal reports include:

• Inspection Report
• Safety Report
• Compliance Report
• Audit
• Incident Report
• Annual Report
• Situational Report

There are two categories of formal reports: informational and analytical reports.
The informational report gathers data and facts used to draw conclusions. The analytical
report contains the same information as the informational report, but it also offers
recommendations to solve a problem.
Now let's take a look at the format and parts of a formal report. Think of the formal report as
divided into three sections: front section, main section, and back section.
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Front Section of a Formal Report

The front section contains the title page, transmittal letter, and the table of contents. The title
page should contain:

1. Company name
2. Name and title of the party for whom the report was prepared
3. Name and title of the preparer
4. Date
The transmittal letter is a letter informing the recipient that a report has been included in the
packet. It may also state the purpose of the report. The letter also identifies any other
documents that may be included.
The last part of the front section is the table of contents so that the reader can locate
information by page number.

Main Section of a Formal Report

The main section contains an executive summary, introduction to the problem, analysis of
findings, and conclusions and/or recommendations:
The executive summary is a summary of the formal report. It should contain the basic facts
without being too wordy. Think of it as a condensed version of the entire report.
The introduction statement states the purpose of the report, identifies the problem, its scope,
and the method the writer plans to employ to solve the problem. The method may be to
provide conclusions only as with an informational report, or it may be to provide conclusions
and recommendations as with an analytical report.
An analysis of findings is probably the longest section. This section will reveal what facts
you discovered and the details of the investigation. When drafting this section, remember to
present information in the easiest and clearest way that points your reader to your conclusions
or recommendations.

Informal Reports

What you’ll learn to do: Create an informal report

Informal reports in the business setting are usually shorter in

length and have fewer sections than a formal report. Employees in most organizations create
and use informal reports. Almost all informal reports are for internal use. Some institutions
have prescribed formats and others do not. As we’ve previously discussed, an informal report
fits in one of two large categories:

• informational report
• analytical report
An informational report provides background and information without reaching an
evaluation. These include simple reports like meeting minutes, expense reports, and progress,
or status updates. An analytical report provides much the same information as the
informational report along with evaluation or recommendation. These reports may include
feasibility studies, justification reports, and proposals.

Most organizations have specific forms and policies for the simplest reports, such as a
mileage reimbursement report. Other simple re

External communication

It is the transmission of information between a business and another person or entity in the
company's external environment. Examples of these people and entities include customers,
potential customers, suppliers, investors, shareholders, and society at large.

Definition of External Communication

External communication is the transmission of information between a business and another
person or entity in the company's external environment. Examples of these people and
entities include customers, potential customers, suppliers, investors, shareholders, and society
at large.

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Channels of Communication
A channel of communication is simply the way the organization transmits its message.
Communication channels include face-to-face communication, print media, such as
newspapers, magazines, fliers, and newsletters, broadcast media, such as radio and television,
and electronic communication, such as websites, social media, such as Facebook and Twitter,
and email.

Strategies of External Communication

A business typically engages in different strategies in managing its external communications.
The approach used will vary by circumstance, purpose, and the intended recipient. For
example, a business will communicate differently if it is communicating with potential
investors, its shareholders, or its customers.
Bad news is communicated differently than good news. For example, an oil company will
communicate about an oil spill differently than its joint venture with another company to
develop alternative fuels. Some generalized approaches to external communications include:
Public relations is a manner of external communication where a business uses psychological
and sociological knowledge to create a positive image of its business and activities. The
message is broad and is about creating a good public image. For example, a fast food chain
may sponsor a kids' marathon to improve its image in the community relating to health.
Circular letter

It is one of the oldest types of letters. This kind of letter originated in ancient time when
people felt the necessity of circulating any message to a large number of people at a time
in the same way.
Importance or advantages of circular letter

Circular letter circulates information relating to a company, its products and services etc. to a
large number of people at a time. It plays an important role in the growth and development of
business. Its importance is briefly discussed below:

1. Easy method of conveying information: Circular letter is the most easy, simple
and effective way to convey any information to a huge number of people.
2. Achieving economy: Circular letter can be used for wide publicity of products. As
a result, organizations can save cost of sending letters to different parties
separately and can gain economy.
3. Saving time: Circular letter transmits information to a large number of people at a
time. It does not require reaching each individual separately. Thus, it saves time.
 4. Less effort: Circulating information to each individual separately is a time
consuming and laborious job. Circular letter helps to overcome this problem.
Through circular letter, we can communicate with large number of people at a
minimum effort.
5. Creating market: Through circular letter, a company can inform potential
customers about its products and services. In this way, new market can be created.
6. Increasing consumer’s confidence: Convincing and attractive circular letter can
easily touch the reader’s heart and thus helps to enhance consumer’s confidence on
the company’s products.
7. Creating public consciousness: In circular letter, information like price, quality,
utility, place of availability, etc. are mentioned in detail that makes people more
conscious about the product.
A press release

It is a written communication that reports specific but brief information about an event,
circumstance, product launch, or other happening. It's typically tied to a business or
organization and provided to media through a variety of means.

A newsletter

It is a tool used by businesses and organizations to share relevant and valuable information
with their network of customers, prospects and subscribers. Newsletters give you direct
access to your audience's inbox, allowing you to share engaging content, promote sales and
drive traffic to your website.

What is the purpose of a newsletter?

The purpose of an email newsletter is to give those on your list updates pertaining to your business,
products, and services. However, it’s not something that’s generally used for a hard sell. An email
newsletter should feel like an update from an interesting, helpful friend, rather than a pushy
salesperson.
That’s not to say that these newsletters are simply used to keep in touch. They can be used to motivate
your customers to take action, like making a purchase or checking out your latest blog post.

Newsletters are often the life force of your marketing campaign. Over the past decade, email
marketing has proven to be significantly more successful than social media marketing.