Corporate communication
Corporate communication is a set of activities involved in managing and orchestrating all internal and external communications aimed at creating favourable point of view among stakeholders on which the company depends. It is the messages issued by a corporate organization, body, or institute to its audiences, such as employees, media, channel partners and the general public. Organizations aim to communicate the same message to all its stakeholders, to transmit coherence, credibility and ethics.
Corporate communication helps organizations explain their mission, combine its many visions and values into a cohesive message to stakeholders. The concept of corporate communication could be seen as an integrative communication structure linking stakeholders to the organisation.
Methods and tactics
Three principal clusters of task-planning and communication form the backbone of business and the activity of business organizations. These include management communication, marketing communication, and organizational communication.- Management communication takes place between management and its internal and external audiences. To support management communication, organizations rely heavily on specialists in marketing communication and organizational communication.
- Marketing communication gets the bulk of the budgets in most organizations, and consists of product advertising, direct mail, personal selling, and sponsorship activities.
- Organizational communication consists of specialists in public relations, public affairs, investor relations, environmental communications, corporate advertising, and employee communication.
- to promote the profile of the "company behind the brand"
- to minimize discrepancies between the company's desired identity and brand features
- to delegate tasks in communication
- to formulate and execute effective procedures to make decisions on communication matters
- to mobilize internal and external support for corporate objectives
- to coordinate with international business firms
Most companies have specialized groups of professionals for communicating with different audiences, such as internal communication, marketing communication, investor relations, government relations and public relations.
Components
Corporate branding
A corporate brand is the perception of a company that unites a group of products or services for the public under a single name, a shared visual identity, and a common set of symbols. The process of corporate branding involves creating favourable associations and positive reputation with both internal and external stakeholders. The purpose of a corporate branding initiative is to generate a positive halo over the products and businesses of the company, imparting more favourable impressions of those products and businesses.In more general terms, research suggests that corporate branding is an appropriate strategy for companies to implement when:
- there is significant "information asymmetry" between a company and its clients; customers are much less informed about a company's products than the company itself is
- customers perceive a high degree of risk in purchasing the products or services of the company
- features of the company behind the brand would be relevant to the product or service a customer is considering purchasing
Corporate and organizational identity
- Corporate identity is the reality and uniqueness of an organization, which is integrally related to its external and internal image and reputation through corporate communication
- Organizational identity comprises those characteristics of an organization that its members believe are central, distinctive and enduring. That is, organizational identity consists of those attributes that members feel are fundamental to and uniquely descriptive of the organization and that persist within the organization over time ".
- Perceived identity: The collection of attributes that are seen as typical for the continuity, centrality and uniqueness of the organization in the eyes of its members.
- Projected identity: The self-presentations of the organization's attributes manifested in the implicit and explicit signals which the organization broadcasts to internal and external target audiences through communication and symbols.
- Desired identity : The idealized picture that top managers hold of what the organization could evolve into under their leadership.
- Applied identity: The signals that an organization broadcasts both consciously and unconsciously through behaviors and initiatives at all levels within the organization.
Corporate responsibility
Corporate responsibility constitutes an organization's respect for society's interests, demonstrated by taking ownership of the effects its activities have on key constituencies including customers, employees, shareholders, communities, and the environment, in all parts of their operations. In short, CR prompts a corporation to look beyond its traditional bottom line, to the social implications of its business.
Corporate reputation
s are overall assessments of organizations by their stakeholders. They are aggregate perceptions by stakeholders of an organization's ability to fulfill their expectations, whether these stakeholders are interested in buying the company's products, working for the company, or investing in the company's shares.In 2000, the US-based Council of PR Firms identified seven programs developed by either media organizations or market research firms, used by companies to assess or benchmark their corporate reputations. Of these, only four are conducted regularly and have broad visibility:
- "America's Most Admired Companies" by Fortune Magazine
- The "Brand Asset Valuator" by Young & Rubicam
- "RepTrak" by Reputation Institute
- "Best Global Brands" by Interbrand
Crisis communication
Internal/employee communication
As the extent of communication grows, many companies create an employee relations function with dedicated staff to manage the numerous media through which senior managers can communicate among themselves and with the rest of the organization. Internal communication in the 21st century is more than the memos, publications, and broadcasts that comprise it; it's about building a corporate culture on values that drive organizational excellence. ER specialists are generally expected to fulfill one or more of the following four roles:- Efficiency: Internal communication is used primarily to disseminate information about corporate activities.
- Shared meaning: Internal communication is used to build a shared understanding among employees about corporate goals.
- Connectivity: Internal communication is used mainly to clarify the connectedness of the company's people and activities.
- Satisfaction: Internal communication is used to improve job satisfaction throughout the company.
Investor relations
The role of investor relations is to fulfill three principal functions:
- comply with regulations
- Create a favorable relationship with key financial audiences
- contribute to building and maintaining the company's image and reputation
Public relations: issues management and media relations
Issues management
A key role of the PR specialist is to make the company better known for traits and attributes that build the company's perceived distinctiveness and competitiveness with the public. In recent years, PR specialists have become increasingly involved in helping companies manage strategic issues – public concerns about their activities that are frequently magnified by special interest groups and NGOs. The role of the PR specialist therefore also consists of issues management, namely the "set of organizational procedures, routines, personnel, and issues". A strategic issue is one that compels a company to deal with it because there is "a conflict between two or more identifiable groups over procedural or substantive matters relating to the distribution of positions or resources".Media relations
To build better relationships with the media, organizations must cultivate positive relations with influential members of the media. This task might be handled by employees within the company's media relations department or handled by a public relations firm.Company/spokesperson profiling
These "public faces" are considered authorities in their respective sector/field and ensure the company/organization is in the limelight.- Managing content of corporate websites and/or other external touch points
- Managing corporate publications – for the external world
- Managing print media