B.

Com Sem – 1 Multi-disciplinary Course (MDC) Importance of Corporate Communication:

Corporate communications is a structured mechanism that provides clarity,

Title: Corporate Communication - 1 consistency, and efficiency in information flow at all organizational levels.
Unit - 1 In other words, it is the process that enables the management of the flow of
information to various chosen target audiences across varying channels—
Introduction to Corporate Communication:
whichever fits appropriately, such as e-mail, newsletters, press releases, and
Corporate communications are the backbone of any firm. It's a reflection of how internet channels. Corporate communications provide crucial information to the
you want the world to perceive your brand—what you want customers, clients, desired audience by selecting the appropriate medium at essential times. Internal
partners, suppliers, investors, and others to understand about who you are. corporate communications update the organization with information, establish
Corporate communication is the process of managing how an organization company goals, and reinforce the company culture.
communicates with its internal and external stakeholders. It encompasses all the
Thus, strong and effective internal communications help employees better
messages and activities that a company uses to build and maintain its reputation,
understand the business vision, increase engagement, and improve teamwork and
connect with its audience, and achieve its business goals. Essentially, it's how a
productivity. Corporate communication also plays a strategic role in managing
company conveys its identity and values to the world.
challenges and business opportunities.
Corporate communications are critical to reaching different people and creating
In a crisis, businesses need timely, transparent communication to minimize risk
relationships. An organization that communicates this successfully is considered
and safeguard reputation. Your corporate comms should be a binder and motivator
as trustworthy and reliable. Such communications unite employees, customers,
- a way to gain loyalty and build strong relationships.
investors, and other stakeholders on one platform with a shared understanding of
the company's mission and objectives. Objectives of Corporate Communication:
Effective corporate communication incorporates all aspects of business. It The objectives of corporate communication are to inform, persuade, and build a
strengthens stakeholder relationships with better transparency and shapes brand rapport with the company’s stakeholders. By achieving these objectives, corporate
perception by communicating one clear, united message—a substantial communication plays a pivotal role in the overall success and sustainability of the
competitive advantage that builds trust and, over time, growth. It can also be used business.
to act on crisis management when the company’s reputation is at stake, as well as
boost employee engagement. (1) Building a Positive Reputation:

Definition of Corporate Communication: Corporate communication plays a vital role in shaping public perception and
managing the organization's reputation. This includes crafting a consistent brand
Corporate communication describes the creation and delivery of messages that image, highlighting positive initiatives, and proactively addressing potential
describe or portray organizational identity, value, and purpose to the respective reputational risks.
internal and external audience. Corporate communication in today's environment
of business means building a trusting, transparent relationship for mutual success (2) Enhancing Stakeholder Relationships:
between shareholders.
Effective communication fosters strong relationships with all stakeholders,
including employees, customers, investors, and the wider community. This
involves transparent communication, addressing concerns, and building trust.
1
(3) Supporting Business Goals: Process of Communication:

Corporate communication directly supports the organization's strategic goals by Communication is a complicated process involving generation of idea, encoding,
facilitating clear communication, aligning employees, and driving business decoding and received idea. Process of communication involves a sender, a
growth. It also plays a key role in attracting and retaining talent, as well as securing message, a medium and a receiver.
investments.
The process of communication is based on five basic questions suggested by
(4) Managing Crises: Harold Lasswell:

In times of crisis, corporate communication is essential for managing the situation (i) Who?
effectively, mitigating damage, and maintaining public trust. This involves
developing clear and concise messaging, communicating proactively, and (ii) Says what?
addressing concerns openly. (iii) To whom?
(5) Driving Employee Engagement: (iv) In which channel?
Internal communication efforts, a key part of corporate communication, aim to (v) With what effect?
foster a positive work environment, align employees with company goals, and
boost morale and productivity. The process of communication can be understood by the figure given below:

(6) Promoting Corporate Social Responsibility (CSR):

Communicating the organization's CSR initiatives and engaging with stakeholders Noise
on relevant issues is increasingly important for building trust and demonstrating
a commitment to ethical and sustainable practices.

(7) Ensuring Consistency and Clarity:

Corporate communication ensures that all messaging is consistent across all Filter
channels and platforms, conveying a unified message to all stakeholders.
Feedback
(8) Building Awareness:

A key objective is to raise awareness of the organization, its products, and its
services among target audiences. 1. Sources of Information:

(9) Facilitating Dialogue: The person who begins the communication process/cycle is known as the sender.
Before sending any message, it first takes place in mind in the form of idea. The
Effective corporate communication creates opportunities for dialogue and sender organizes the idea which may be blur or unorganized. In this way, the
feedback between the organization and its stakeholders, fostering a sense of process begins with the sender who converts raw information or idea into a
engagement and collaboration. message.

2
2. Encoding / transmitter: Generally, formal communication is preferably acted through written channels as
it requires the record and legal evidence. Furthermore, the message based on
Encoding is the second stage of communication. The sender selects and arranges decision making should also be conveyed through written channels as the receiver
the words for the thought that is known as encoding. Encoding also takes place in will have to ponder over the matter and compose the message.
the mind of the sender. An idea or information needs to be converted into a set of
symbols that can be understood by the receiver. The sender has to encode the idea 3) Number of receivers:
keeping in mind the nature of the receiver, expectation of the receiver, the situation
and sender’s expectation from the receiver. If sender is not able to evaluate the The number of receivers is also a matter of great concern before selecting a
above aspects while formulating the message, it may fail to communicate or get channel. When less number of receivers have to be communicated, the oral
favouarble response from the receiver. communication channels can be selected. However, when the message is to be
passed to many receivers like company’s employees written channels such as
Encoding seems to be very natural and speedy process, but it is complicated email, notice, circular or memo can be effectively used.
process. Encoding can be compared with the working of computer. When we type
any message or enter data on the key board, it transmits the message to CPU in the 4) Length of message:
form of binary (100101110) system. After processing, the CPU transforms the data The message containing data, figures, statistics etc. can be communicated through
into required language. Likewise the mind too thinks in the form of signals and written channels. The shorter messages can be passed on through oral channels.
these signals have to be converted into appropriate language passing through
social, psychological, religious etc. contexts before actual encoding. At last, the 4. Decoding:
sender puts ideas or raw information into words, signs or symbols for the receiver
Decoding is a reverse process of encoding. Once an encoded message is received
to get expected response.
by the receiver, he converts the message into idea. This process is called decoding.
3. Channel / transmission: The receiver gets the message, but it may or may not be the same message as
intended by the sender, it depends on sender’s ability to compose the message,
Once the idea/information is encoded, it is ready to be transmitted. Then the channel, receiver’s knowledge or nature etc. or other factors affecting the
sender selects suitable medium to transmit the message. The medium that carries communication process. This is the reason why misunderstanding emerges
the message is called channel. Selection of channel depends on the following between the sender and receiver. The defect in any of the above aspects can distort
aspects: the message and decoding of the message might not have the desired effect.
1) Urgency of the message i.e. quick or delayed: 5. Acting / feedback:
If sender needs quick response or answer from the receiver, he has to choose the When message is properly interpreted, the receiver puts it into action or sends a
channel accordingly. Oral channels like Telephone call or mobile call will be the return message/reply which is called feedback. This action or feedback gives idea
appropriate choice for immediate response. When the sender is not in hurry to get about how far the receiver has understood the message. Feedback is the most
the response or he knows that receiver has to acquire the data or get the important part of the communication process, as without it communication cycle
information from the other sources, sender should use written channels like letter, remains incomplete.
email, fax etc.
Feedback reverses the role of receiver and sender. Now, the receiver becomes the
2) Type of Communication i.e. Formal or Informal: sender and the sender becomes the receiver. Feedback can be in favour of the
sender or against the sender; it could be immediate or delayed depends upon the
situation in which communication has taken place. For example, an employee
3
requests the manager for a week’s leave, but due to overload of work the manager time saying that he was not well and hence could not remember the message. In
does not grant leave. Here, it turns to be the unfavourable communication. If politics, the speech of the leader often results into anger of the audience as the
manager would have granted the leave, it would be called favourable speech may be against the belief of people.
communication.
The Two-way Communication Process:
In the same way, feedback can be immediate or delayed. If one friend sends a text
message through mobile phone to another friend asking him to join the party, but The modern concept of communication believes communication as two-way
his friend does not come to the party as desired by the sender. process. It considers communication as essentially a reciprocal process and
mutual exchange of messages. It does not make clear distinction between the
Initially, it seems to be the failure of communication as the sender does not get the sender and the receiver as both perform the similar role one after the other, or
desired action from the receiver. But if the receiver informs lately about his sometimes simultaneously. The linear view considered the sender as active and
sickness which is the reason for not joining the party, communication cycle gets the receiver as passive or inactive. But in two-way process, the receiver is also
completed. However it got interrupted by the delayed feedback. considered equally active as he responds and acts after the sender communication
or sometimes interrupts the sender and speaks.
Feedback is integral part of communication as every speaker communicates with
the expectation of the response from the listener. Actually, speaker even imagines The communication process is completed when the message returns to the sender
the response before the actual response from the receiver arrives. It must be noted in the form of feedback i.e. the receiver also acts as a sender and gives feedback to
that to complete the communication cycle, it is not necessary to get the favourable/ the original sender. The same sequence of steps is followed continually and the
positive or immediate response. Even an unfavourable or a delayed response communication cycle keeps going on. Communication is purposive in nature and
completes the communication cycle. intends to achieve success by arousing desired effect among the audience.

6. Noise:

The process of communication is open to noise or disturbance. Noise creates

resistance or hindrance that damages the accuracy of message. For instance,
communicating at traffic signal or in the factory amid the clattering of the machine
will not allow the listener understand the message properly which ultimately leads
to failure of communication or misinterpretation of the message.

Moreover, the defect in the communication channel also creates noise and disturbs
the communication. Due to low frequency of signal, communication on telephone
or mobile are troublesome.

7. Filters:

Filters are mental disturbances that hamper communication process. They include
attitude, beliefs, experiences, consciousness of personal status and the ability to
think clearly. Misunderstanding or inappropriate transmission of message occurs
because of filters like low interest, less involvement, distraction, fatigue etc. We
have come across incidents that the listener asks to repeat the message after some