Corporate Communication Relevance

In today's competitive environment, it is not only important to market products, but also to market the company as a whole. An organization's reputation management strategy is the most critical part of any corporate communication function. Organizations need to communicate to all the constituencies i.e. to both external and internal. In internal communication, organization deals with employees, employers and managers. In external communication, organization deals with existing and prospective customers, suppliers, investors, government and the wider public. Sometimes, constituencies have a special attitude or opinion about a company.

For example, high gas prices make some consumers think that these are only the fault of the oil corporations. Thus, there is a need for telling the public that many factors influence the oil price development.

The corporations communicate with its constituencies through several medium; some of them are listed below:

Image and Identity

Image is the corporation seen through the eyes of its constituencies; identity consists of an organization's defining attributes, such as people, products, and services. The corporate identity is a system of communication that is incorporated to the company’s global strategy and it is present in all its manifestations, productions, properties and activities. Identity should not vary from one constituency to another, but each constituency can have another image of the company. Determining what the organization's image is with different constituencies, is a task performed by the corporate communications function. Identity building is also a part of the communication function's work; that means to decide how the organization wants to be perceived and what measures to take to ensure a proper identity.
For example, H.P. which previously had an image of being costly changed its image by acquiring Compaq which is very economical.
http://h10010.www1.hp.com/wwpc/in/en/ho/WF02a/1090709-1116637-1123071.html

Corporate and Product Advertising

In product advertising, companies directly promote their products. Companies mention the products with features, types and prices. The goal of the product advertising is to attract customers to buy products. Corporate advertising includes building the image of a responsible corporate entity, attracting good talent and reinforcing the corporate mission. In corporate advertising, companies never promote the product directly. They promote the product along with giving something to society. With corporate advertising, companies take some social responsibilities. This will help to improve a company’s image in society.

Media Relations

Media relations are to create, maintain, and protect the organization’s reputation, to enhance its prestige, and to present a favorable image. Media relation involves product public, employee, financial, community, government and political relations, consumer education, and crisis communication. This is the only department from where investors, suppliers, retailers, and consumers receive information and develop the image of the business. The company should know the importance of media and hire people for media communications, who know the people form the press and can deal with them efficiently.

Internal Communications

Nowadays, many organizations focus their attention on their own employees, recognizing that employees have more to do with the success of a business than virtually any other constituency. So the concept of internal communication is important in both profit and non profit organization. In the 21st century, internal communication is more important than external communication. Internal communications should make sure employees get information that is affecting them before the public gets it.

Investor Relations

For a corporation, it is crucial to have an open dialog with its investors. Investors need information about the company, otherwise the investments become too risky and they would withdraw their money. IR professionals interact with individual and institutional investors and are involved with the financial statements and annual reports.
For example, Mahindra and Mahindra’s website has a special section for investors. They can get the company’s annual and financial reports along with the assistance from the company.
http://www.mahindra.com/index.asp

Crisis Communication

Organization’s stand during any crisis can be better justified to the constituencies with the help of the corporate communication function. Even in case of a crisis, communications should be coordinated by the corporate communications function. Communications professionals should also be involved in crisis planning. Working together with senior management, corporate communications professionals can make the difference between good and poor crisis management.

For example, Dell has successfully come out of crisis by recalling 4.1 million battery packs, used in several of its laptop lines, because of a risk of overheating and fire.
http://support.dell.com/support/topics/global.aspx/support/batteryrecall/en/main?c=us