Chapter 2:

Introduction to Corporate
Communications
Overview
 Scope and definitions
 Key concepts
 Responsibilities of corporate communication
 Importance of corporate communication
 Outline trends over time in corporate communication
 Corporate communication in contemporary organization
 Corporate communication in a changing media
environment
Definition

 Corporate communication is:

– a management function
– that offers a framework for the effective coordination
of all internal and external communication
– with an overall purpose of establishing and
maintaining favourable reputations
– with stakeholder groups upon which the organization
is dependent
Change over time

Corporate communications
Public Relations
Holistic: Focus on organization as whole
until1970s
Stakeholder presentation:
Tactical
How an organization presents itself to key
Communication with press
stakeholders (internal/external)
21st century corporate communications

Range of specialized disciplines:

Corporate Internal
Corporate design
advertising communications

Issue and crisis

Media relations Investor relations
management

Change
Public affairs
communications
Types of activity

Managerial Tactical
• Planning • Producing messages
• Coordinating • Disseminating
• Counselling CEOs messages
and senior managers
Complexity

Factors that make CC more complex:

 Wide geographical range
 Wide range of services and products
 Corporate headquarters and various divisions
and business units
Mission

Concept Definition Example: British Airways

Mission Overriding purpose in line ‘British Airways is aiming to set new

with the values and industry standards in customer service
expectations of stakeholders and innovation, deliver the best financial
performance and evolve from being an
airline to a world travel business with the
flexibility to stretch its brand into new
business areas’
Vision

Concept Definition Example: British

Airways
Vision Desired future state: ‘To become the
the aspiration of the undisputed leader in
organization world travel by ensuring
that BA is the
customer’s first choice
through the delivery of
an unbeatable travel
experience’
Corporate objectives

Concept Definition Example: British Airways

Corporate objectives Statement of overall ‘To be a good neighbour, concerned

aims in line with the for the community and the
overall purpose environment’, ‘to provide overall
superior service and good value for
money in every market segment in
which we compete’, ‘to excel in
anticipating and quickly responding
to customer needs and competitor
activity’
Strategies
Concept Definition Example: British Airways

Strategies The ways or means in ‘Continuing emphasis on consistent quality of

which the corporate customer service and the delivery to the
objectives are to be marketplace of value for money through customer-
achieved and put into oriented initiatives (online booking service,
effect strategic alliances) and to arrange all the elements
of our service so that they collectively generate a
particular experience’... ‘building trust with our
shareholders, employees, customers, neighbours
and with our critics, through commitment to good
practice and societal reporting’
Corporate identity
Concept Definition
Corporate The profile and values
identity communicated by an organization
‘The world’s favourite airline’ (This
corporate identity with its
associated brand values of
service, quality, innovation,
cosmopolitanism and Britishness
is carried through in positioning,
design, livery, and
communications)
Example: British Airways
‘The world’s favourite airline’ (this
corporate identity with its
associated brand values of
service, quality, innovation,
cosmopolitanism and Britishness
is carried through in positioning,
design, livery, and
communications)
Corporate image

Concept Definition Example: British Airways

Corporate The immediate set of ‘Very recently I got a ticket booked to London,
image associations of an individual and when reporting at the airport I was shown
in response to one or more the door by BA staff. I was flatly told that the
signals or messages from or said flight in which I was to travel was already
about a particular full so my ticket was not valid and the airline
organization at a single point would try to arrange for a seat on some other
in time flight. You can just imagine how embarrassed I
felt at that moment of time. To make matters
worse, the concerned official of BA had not
even a single word of apology to say’
(customer of BA).
Corporate reputation

Concept Definition Example: British Airways

Corporate An individual’s collective ‘Through the Executive Club program, British

reputation representation of past images Airways has developed a reputation as an
of an organization (induced innovator in developing direct relationships with
through either communication its customers and in tailoring its services to
or past experiences) enhance these relationships’ (long-standing
established over time supplier of BA).
Stakeholder

Concept Definition Example: British Airways

Stakeholder Any group or individual ‘Employees, consumers, investors and

who can affect or is shareholders, community, aviation
affected by the business and suppliers, government,
achievement of the trade unions, NGOs, and society at large’
organization’s objectives
Market

Concept Definition Example: British Airways

Market A defined group for whom a ‘The market for British Airways flights consists
product is or may be in of passengers who search for a superior
demand (and for whom an service over and beyond the basic
organization creates and transportation involved’
maintains products and
services)
Communication

Concept Definition Example: British Airways

Communication The tactics and media ‘Newsletters, promotion packages,

that are used to consultation forums, advertising
communicate with campaigns, corporate design and
internal and external code of conduct, free publicity’
groups
Integration

Concept Definition Example: British Airways

Integration The act of coordinating ‘British Airways aims to communicate its brand
all communication so values of service, quality, innovation,
that the corporate cosmopolitanism and Britishness through all its
identity is effectively communications in a consistent and effective
and consistently manner’
communicated to
internal and external
groups
Responsibility of Corporate Communication
 Managing communication or fulfilling the communication
management function
 Dealing with controlled and uncontrolled media
 Serving both internal and external audiences
 Proactive communication planning
 Advocating communication strategies and tactics
 Dissemination of persuasion and information
 Branding images and reputation
 Branding products and services
 Monitoring the responses from audiences and markets
 Counselling and advising senior executives
 Managing issues and responding to crisis situations
Responsibility of Corporate Communication
 Lobbying for favourable stances for the organization
 Organizational image creation and maintenance
 Organizational presence building and monitoring
 Minimize discrepancies between the company’s desired identity
and the brand features
 Indicate who should perform which task in the field of
communication
 Formulate and execute effective procedures in order to facilitate
decision making about matters concerning communication
 Coordinate with international business firms
Importance of Corporate Communication

1. Facilitate transparency through corporate

communication
2. Build a sense of teamwork
3. Reduce miscommunication
4. Protect the company branding
5. Improve customer service
Trends – 1980s
Trends – 1990s/2000s

Corporat Corporat
e e identity
branding

Corporat
e
reputatio
n

Positioning
Downsides

 Gives impression that stakeholders can be

managed or even controlled
 Models of reputation management
 Corporate messages to direct outcomes in
terms of awareness, attitudes or broader
reputational change
 Implies a linear model of communication
 Stakeholders are active agents, not passive
agents or speakers-in-waiting
Trends – 2010s

 Stakeholders have become more active:

– Voicing their expectations
– Self-organizing
– Advocating
 Empowered by new media technologies that are
more interactive and dialogue based
 Gradual shift towards stakeholders sharing
experiences, opinions and ideas about
organizations
 Challenges and opportunities through word-of-
mouth and peer-to-peer influence
Engagement

 Not merely about sharing opinions and

perspectives
 Also organization must be transparent
 Acting in character to bring across identity
 Fostering stakeholders to become genuine
advocates
 Without this, stakeholders organize for action
and point out lack of authenticity.
Trends and Developments in Corp. Comm.