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Principles of Corporate Communication

Corporate communication is the strategic management of communications within an organization and between the organization and its stakeholders. It helps shape an organization's reputation and brand image, manages crises and conflicts, and assumes ethical and social responsibilities. Effective corporate communication is important for building trust and positive relationships with internal and external stakeholders.

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Syazana Izzati
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203 views5 pages

Principles of Corporate Communication

Corporate communication is the strategic management of communications within an organization and between the organization and its stakeholders. It helps shape an organization's reputation and brand image, manages crises and conflicts, and assumes ethical and social responsibilities. Effective corporate communication is important for building trust and positive relationships with internal and external stakeholders.

Uploaded by

Syazana Izzati
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

What is your understanding of corporate communication, and why is it important


for an organisation? Support your answers with at least TWO journal articles.

Corporate communication is the strategic management of communications within an


organization and between the organization and its stakeholders. It includes various activities
and strategies aimed at creating and maintaining effective communication channels and
building positive relationships with internal and external stakeholders. Corporate
communications play a key role in an organization as it helps to form and maintain the
organization's reputation, brand image and relationships with stakeholders. In this section, we
use two newspaper articles to explore the importance of corporate communications.

According to an article by Riel and Fombrun (2007), effective corporate communications are
essential for an organization as they help shape the organization's reputation and brand image.
The authors point out that corporate communications help deliver a coherent and compelling
message to internal and external stakeholders, which is critical to creating a positive perception
of the organization. Through well-executed corporate communications, organizations can build
trust, credibility, and goodwill among stakeholders, resulting in a better reputation and positive
brand image.

Another article by Foreman and Argenti (2005) highlights the importance of corporate
communications in managing organizational crises. Explain that crises can significantly
damage an organization's reputation and brand image. However, effective communication
during a crisis can help minimize damage and restore stakeholder trust. The article highlights
the role of timely and transparent communication in crisis management, emphasizing the
importance of maintaining consistent messaging, addressing stakeholder concerns, and
demonstrating accountability.

2. By giving real examples to illustrate your answers, discuss the key functions of the
corporate communication department within the organisation.

An organization's corporate communications department performs several key functions. First,


it develops and implements communication strategies in line with the organization's goals and
values. This includes formulating key messages, identifying suitable communication channels
and effectively involving stakeholders. For example, Nike's corporate communications
department focuses on communicating the brand's commitment to innovation, sustainability,
and athlete empowerment, which shapes the company's brand image and reputation.

Second, the Corporate Communications department takes care of media and public relations.
They work to establish media relationships, coordinate press releases and statements, and
handle media inquiries. For example, during the Volkswagen emissions scandal, the company's
corporate communications faced the difficult task of managing the crisis and mitigating the
reputational damage through transparent communications, regular updates, and problem
support. Third, the Corporate Communications department plays a key role in internal
communications. They ensure effective communication within the organization, disseminate
important information, support employee engagement, and maintain alignment with the
organization's goals and values. An example is Google, which attaches great importance to
internal communication via channels such as company-wide meetings, internal newsletters,
and online platforms. This helps create a positive corporate culture and promotes employee
satisfaction and loyalty.

3. How does corporate communication shape an organisation's reputation and image?


In your answer, discuss the role of branding, public relations, and internal communication
by relating them to specific case studies.

Corporate communications affect the reputation and image of an organization in several ways.
First, the brand image plays an important role. Effective corporate communications help build
and maintain a strong brand identity by consistently communicating the company's unique
values, mission, and strengths. For example, Apple's corporate communications efforts
consistently underscore the company's commitment to innovation, superior design, and user-
friendly technology, and reinforces the brand's reputation as a leader in the technology industry
(Harvard Business Review). Public relations also contribute to the organization's reputation
and image. By collaborating with the media, industry influencers and other stakeholders,
corporate communications professionals can influence the narrative surrounding a company
and steer the public's perception of the company. A notable case is Johnson & Johnson's
response to the Tylenol poisoning crisis in 1982. Through timely and transparent
communications, the company successfully managed the crisis, minimized the damage to its
reputation, and has demonstrated its commitment to consumer safety (Hartley R. W). Internal
communications are also important in shaping an organization's reputation and image. When
employees are informed, engaged, and aligned with company values, they become brand
ambassadors and contribute to a positive corporate culture. For example, Zappos, an online
clothing and footwear retailer, is known for its effective internal communication practices that
promote a positive work environment and employee satisfaction. This good internal reputation
is reflected in External image of the brand and customer perception.

4. How can corporate communication be utilised to manage organisational crises and


conflicts effectively? Analyse with relevant examples.

Corporate communication plays a fundamental role in overcoming crises and organizational


conflicts. Effective crisis communication involves communicating in a timely and transparent
manner to address stakeholder concerns, provide accurate information, and demonstrate
accountability. Southwest Airlines' 2018 engine failure response is an example of effective
crisis management (Hpadmin, 2018). The company's corporate communications team
promptly communicated with the affected passengers, providing updates, expressing
sympathy, and taking responsibility for the incident. This has helped minimize reputational
damage and maintain stakeholder trust. Conflicts within an organization can also be effectively
managed through corporate communication. By promoting open and honest dialogue,
corporate communications professionals can resolve conflicts, build consensus, and nurture
positive relationships. One example is Airbnb's dispute resolution practices, where a corporate
communications team ensures effective communication between hosts and guests, resolving
disputes and fostering a sense of community.

5. Discuss the ethical and social responsibilities of corporate communication in


contemporary business practices. In your answer, evaluate the impact of corporate
communication on stakeholder relationships, sustainability, and corporate social
responsibility.
Corporate communications are associated with ethical and social responsibility in modern
business practice. It is important to ensure that communications are truthful, transparent and
respect the interests of those involved. Corporate communications should also promote
corporate sustainability and social responsibility by highlighting the organization's efforts to
address environmental, social and governance issues. For example, Patagonia, an outdoor
apparel company, effectively communicates its commitment to environmental sustainability,
fair labor practices, and philanthropy by aligning its communications with its values and
engaging with stakeholders who share those values.

In summary, corporate communication is of great importance for an organization. It helps


shape and maintain the reputation and image of the organization, manages crises and conflicts,
and assumes its ethical and social responsibilities. With effective communication strategies,
organizations can build trust, credibility, and positive relationships with stakeholders,
contributing to their long-term success. By analyzing case studies and referencing magazine
articles, we can understand the importance of corporate communications in developing and
sustaining a positive brand image and reputation in an ethical manner.
REFERENCES

1. Van Riel, C. B. M., & Fombrun, C. J. (2007). Essentials of corporate communication. In

Routledge eBooks. https://doi.org/10.4324/9780203390931

2. Foreman, J., & Argenti, P. A. (2005). How corporate communication influences strategy

implementation, reputation and the corporate brand: an exploratory qualitative study.

Corporate Reputation Review, 8(3), 245–264.

https://doi.org/10.1057/palgrave.crr.1540253

3. Harvard Business Review (2020); https://hbr.org/2020/11/how-apple-is-organized-for-


innovation
4. Hartley, R. W. (2004). Business Ethics: Mistakes and Successes.
5. Hpadmin. (2018). 2018’s best crisis management response: The crisis was live,

Southwest Airlines was ready. Hennes Communications.

https://www.crisiscommunications.com/2018s-best-crisis-management-response-the-

crisis-was-live-southwest-airlines-was-ready/

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