Understanding Corporate Communications

This essay explores the functions of corporate communication and how it could very well define the success of an organization using British airways reorganization in 1987 as a case study. It will explain the relationship between a firm’s mission, vision, and goals to its communications strategy. More to this, the paper will go on further to expound on the various internal and external stakeholders of a company; their roles and impact on the firm. Lastly, it will look at the various disciplines in corporate communications such as corporate social responsibility and public relations and mention real examples.

Understanding Corporate Communications
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Introduction
Corporate communications is an integrated communication approach between an
enterprise and its key internal and external stakeholders. Typically, every company has a set
of missions, visions, and goals, which it means to pursue1. It is the role of the corporate
communications department to understand the company’s intended strategic direction and
create synergy by communicating clearly to the various stakeholders in order to achieve
success2. This essay will thus explore the functions of corporate communication and how it
could very well define the success of an organization using British airways reorganization
in 1987 as a case study. It will explain the relationship between a firm’s mission, vision, and
goals to its communications strategy. More to this, the paper will go on further to expound
on the various internal and external stakeholders of a company; their roles and impact on
the firm. Lastly, it will look at the various disciplines in corporate communications such as
corporate social responsibility and public relations and mention real examples.
Corporate missions, purpose and objectives
Organizations develop an individualistic foundation of plausible values demonstrated
by a vision to be undertaken by the firm’s mission statement3. The former coupled with
goals setting is particularly significant in the strategic direction of a company. Therefore,
the corporate communications practitioners must familiarize with these three important
aspects in order for it to carry out its task. Goals are generally guiding principles not only
for management but also for employees in terms of establishing precise direction and
1 Riel, Cees B. M. van. 2011. Principles Of Corporate Communication. London:
Prentice Hall.
2 Wright, Joel. 2002. Mission and reality and why not?, Journal of Change
Management, 3, 1, pp. 30-44
3 Tallant, James. 2011. Importance Of Vision, Mission, And Values In Strategic
Direction. Munich: GRIN Verlag.

coordination of activities within the firm. On a competitive viewpoint goals help in
distinguishing a company from its rivals4. It provides motivation and understanding of what
employees should be working towards achieving. According to Kokemuller (2009), goals
also drive innovation, research, and development, marketing strategy as well as service
delivery. This in turn gives the organization an upper hand in the market position.
The mission statement, on the other hand, defines the fundamental objectives of the
organization5. In brief, it summarizes what the company is about, the way of operation, its
core values and how the organizations intend to achieve its vision. Therein, the vision
narrates the future of organizations in fulfillment of its mission. Comprehensively, the
mission, vision and goals of a company in essences describe a company to its employees,
management, shareholders let alone the public6. A well-fabricated statement of these three
aspects would, however, be purposeless if not properly conveyed to the stakeholder, hence,
the need for corporate communications department in a company. For that reason, corporate
communications has to work hand in hand with the senior management to deliver the
company’s objectives effectively.
British Airways is the largest airline in the UK formed in 1974 and currently
operating a fleet of 270 aircrafts (Britishairways.com, 2018). During the 1970’s oil crisis,
British Airways experienced massive financial losses as it struggled to maintain it’s large
workforce. It developed poor services that led to a decrease in customer base. When Lord
King, was brought in as the new chairpersons in 1981 he restructured the entire
4 Kokemuller, Neil. 2009. "Why Is Goal Setting Important In
Organizations?". Yourbusiness.Azcentral.Com.
https://yourbusiness.azcentral.com/goal-setting-important-organizations-
9317.html.
5 Drucker, Poel. 1994. The theory of the business, Harvard Business
Review, Sep. Oct, pp. 95 – 104
6 Sabrautzki, Stefan. 2010. Strategies, Mission, Vision, Goals. München: GRIN
Verlag GmbH.

organization. He reduced the workforce, eliminated routes that were unprofitable and
modernized fleet. This lead to massive increase in profits to $284 million 10 years later,
recorded as the largest profits during that time. This success can be attributed to the ability
of lord king to communicate effectively to all shareholders of the company. He clearly
explained the new vision of the company while making clear his reasons for restructuring
and layoffs in a transparent way. From this illustration, it is clear that communication is a
key factor for any strategy an organization chooses to undertake.
The role of corporate communications in modern organizations
As mentioned earlier, importance is accorded to the various stakeholders of a
company due to their ability to shape the company’s operations7. Internal stakeholders
include, employees, managers and shareholders. There have been rapid changes in the work
force over the last century whereby the new generation of employees demands more than
just monetary gain from their workplace8. Whilst previously, money was a motivator for
most people, recent developments are that satisfaction of employees can be linked to the
company values and culture. Other factors leading to employee satisfaction include,
leadership, opportunities for career advancement, security, fair treatment and welfare
(Chamberlain 2017). Poor organizational communication could be detrimental to an
organization as it could lead to a breakdown in trust between workers and management, low
productivity, inefficiency and ultimately high turnover. Corporate practitioners are obliged
to take into account the various need of these employees and communicate the same to
managers.
7 Ushanov, P. V. 2015. "Crisis Management As A New Management
Paradigm". Effective Crisis Management, no. 1: 66. doi:10.17747/2078-8886-
2010-1-66-79.
8 Chamberlain, Andrew. 2017. "What Matters More To Your Workforce Than
Money". Harvard Business Review. https://hbr.org/2017/01/what-matters-more-
to-your-workforce-than-money.

Every stakeholder has certain needs with regards to the corporation. All these need should
be well articulated by the corporate communications department for the advancement and
success of the company.
Shareholders, including individual, institutional and general investors have a right to
be provided with information concerning the company on a timely, equal and
comprehensible manner. Information to be provided to shareholders includes financial
information, strategic direction, performance, corporate governance and risk management
measures. The corporate communications department has a responsibility to ensure that
shareholders are provided with information in order for them to make informed decisions
about their investment in the company. Communications could be via any channel
accessible to the shareholders such as the annual reports, annual general meeting or any
other meeting necessary to them. Notably, constant sharing of information with the
shareholder leads to transparency and better working relationships with the organization.
External stakeholders include, the customers, the media, the general public, labor
unions. The world has changed and the whole media matrix has changed too. The media has
always works as an important catalyst in communication to external stakeholders. It can
either serves as a platform to advertise a brand or as a tool to convey important information
to the public (Frederick 2018). Undoubtedly though the media is an instrument for growth
of a firm, it could be the means to the downfall of a company. In truth, yet unfortunate, the
media thrives on the negative news. A media house may jump at an opportunity to publicize
“bad new” since it “sells more.” The corporate communications personnel in a company has
a role to play in managing what the media covers about the organization to maintain the
reputation of the company. Media could be in the form of print media, televised media or
social media. Functions of corporate communications personnel in this case extends over to
organizing for news conferences, planning for banners, logistic and overall content to be

sent out to the press. Media relations also involve organizing for a spokesperson for a
televised program or radio program9.
In crisis management, the way in which an organization deals with crisis could be the
very indication of its survival and profitability in the future or the thread line by which the
company crumbles. Corporate communication though a relatively new mantra in the
corporate world is meant to assist the organization in times of crisis10. Labor related unrest
is the most crisis faced by organizations across the globe. Some other forms of crisis would
include pollution of environment by the firm, critical accidents at work, violence and
layoffs. It encompasses strikes, violence or picketing by the public, labor unions or
employees. Crisis is brought about by a breakdown in communication and should be
addressed immediately but with caution. The corporate communication provides content
and training to staff throughout out the organization on how to handle crisis. They also
provide content for delivery in media coverage. In crisis involving employee strikes, for
instance, it would be advisable for communication to not be on sided. Communication
should reflect the standpoint of not only the management but the employees as well. Crisis
management strategy laid out by the communication personnel should be quick, honest,
transparent and non- biased. Further more, communication to management on crisis should
be a continuous regular process and not a one-time action for it to be effective.
Corporate social responsibility refers to business practice that surpasses making
profits. It requires that an organist ion should be socially and environmentally responsible in
their operations. While corporate social responsibility should be an independent function, it
can be leveraged for corporate communication gains. Pursuing Corporate social
9 Perera, Shalini. 2011. Corporate Ownership And Control. 6th ed. Singapore:
World Scientific.
10 Bergstrom, guy. 2018. "Beginner's Guide To Basic Public Relations". The
Balance. https://www.thebalance.com/what-is-public-relations-and-how-do-you-
do-it-2295982.

responsibility could have extensive benefits for a firm in branding it self. Corporate social
responsibility necessitates the need for an organization to understand the implications of its
operations on the environment. It appreciates preventative measures and technologies that
are environmental friendly. Moreover a company’s participations in community projects
wins over the societies loyalty towards the corporation. Other than actively engaging in
community projects and environment conservation movements’ Corporate social
responsibility involves shinning light on inclusivity. A move aimed at appreciating diversity
in gender identities and sexual orientations, variations in culture and translating the same in
recruitment of the workforce. It is a strategic movement that involves the firm spending part
of its revenue in non- income generating activities which eventually through loyalty of
customers translates into more revenue.
Ultimately for a company to thrive it must establish a good reputation with the
customers, workforce, employees, shareholders, media and the public11. They are the
opinion makers and shapers. Framing of the reputation is works do the public relations
department. Public relations are about earning the respect of the media and public and are
very different form advertising. Whereas advertising involves payment for exposure, Public
relations entails a strategic approach in publicizing the organization in tactics that draw
positive attention12. Companies need to have long term indicators of their success instead of
short term revenue gains. Public relations contribute to the perceptions that are shaped by
media and opinion makers, socio-cultural publics and public affairs, that is government
relations13. Since public relations involve communication it is also a function integrated
within the corporate communications task.
11 Perera, Shalini. 2011. Corporate Ownership And Control. 6th ed. Singapore:
World Scientific.
12 Shani, Abraham B, Debra A Noumair, and W. Warner Burke. n.d. Research In
Organizational Change And Development.
13

An introduction to corporate structures and corporate governance
Corporate governance is a system by which a company is directed and controlled. The
objective of corporate governance is to make superior decisions that make a corporation
more competitive and successful in the long run14. One of the key issues that drive a
company to success is the establishment of a systematic functional flow of information. It is
there essential for there to be proper communications channels for information flow that is
accurately and timely delivered. Prosperity in the end for corporate governance can be
looked at in whether it was able to achieve what it set out to do and the effectiveness of the
strategy. Good corporate governance gives investors confidence and encourages them to
invest more capital in the firm. Moreover, it saves on cost and leads to efficiency and
effectiveness which consequently translates into more revenue for the corporation15.
Corporations are designed to create profit while at the same time deliver value to the
shareholders. In so doing they drive economic growth. As a corporation grows, they attract
investors that provide capital for the continued development while giving the investors an
opportunity to make profit16. There are three principal groups that govern corporations,
these are; management, shareholders, and board of directors. The relationships of the three
groups are defined in a corporation’s own charter and bylaws. Each company is different
but they all have government superintendence. The management is tasked with the
responsibility to plan, control, organize and monitor day-to-day activities of a company.
Board of directors has the obligation to hire the CEO of a company as well as the managers.
14 Perera, Shalini. 2011. Corporate Ownership And Control. 6th ed. Singapore:
World Scientific.
15 Ushanov, P. V. 2015. "Crisis Management As A New Management
Paradigm". Effective Crisis Management, no. 1: 66. doi:10.17747/2078-8886-
2010-1-66-79.
16 Keasey, Kevin. 2007. Corporate Governance. 9th ed. Oxford: Oxford University
Press.

More over, they are responsible in assessing the overall direction and strategy set by the
managers selected and ensure that the decisions made are in the best interest of the
shareholders. They also set the company’s vision, mission and goals. Shareholders are also
known as owners of the company, this is because they invest in the corporation by buying
stock. They are the body responsible for electing the board of directors17.
Conclusion
In conclusion, the corporate communications department is commissioned to bring
together all the different aspects and functions of a company into a single workforce via
communication. The communication practitioners in conjunction with the management
have an opportunity to recognize and diagnosed communication related issues and develop
strategies to solve them. It is through clear divulgence of information to the various
stakeholders that the company will be able to achieve synergy in working towards the
actualization of goals it has set. Finally, the structure of an organization gives grounding for
take off. This means that the core structure of the organization has a direct effect on the
future performance of the company. Therefore, selection of board members, CEO’s as well
as management of a company should be weighed upon heavily as they could be the reason
for success or failure of a company.
17 Friedman, Benjamin M. 2009. Corporate Capital Structures In The United
States. University of Chicago Press.

References
Bergstrom, guy. 2018. "Beginner's Guide To Basic Public Relations". The Balance.
https://www.thebalance.com/what-is-public-relations-and-how-do-you-do-it-
2295982.
Chamberlain, Andrew. 2017. "What Matters More To Your Workforce Than
Money". Harvard Business Review. https://hbr.org/2017/01/what-matters-more-
to-your-workforce-than-money.
Cornelissen, Joep. 2004. Corporate Communication. 2nd ed. Thousand Oaks, CA:
SAGE Publications.
Cornelissen, Joep. 2004. Corporate Communication. Thousand Oaks, CA: SAGE
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Frederick, Ann. 2018. "What Are The Functions Of A Corporate Communication
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http://smallbusiness.chron.com/functions-corporate-communication-department-
23716.html.
Friedman, Benjamin M. 2009. Corporate Capital Structures In The United States.
University of Chicago Press.
Drucker, Poel. 1994. The theory of the business, Harvard Business
Review, Sep. Oct, pp. 95 – 104
Wright, Joel. 2002. Mission and reality and why not?, Journal of Change
Management, 3, 1, pp. 30-44

Keasey, Kevin. 2007. Corporate Governance. 9th ed. Oxford: Oxford University
Press.
Kokemuller, Neil. 2009. "Why Is Goal Setting Important In
Organizations?". Yourbusiness.Azcentral.Com.
https://yourbusiness.azcentral.com/goal-setting-important-organizations-
9317.html.
Perera, Shalini. 2011. Corporate Ownership And Control. 6th ed. Singapore: World
Scientific.
Riel, Cees B. M. van. 2011. Principles Of Corporate Communication. London:
Prentice Hall.
"Roles And Responsibilities Of Board Directors". 2013. Brefigroup.Co.Uk.
https://www.brefigroup.co.uk/directors/directors_roles_and_responsibilities.html.
Sabrautzki, Stefan. 2010. Strategies, Mission, Vision, Goals. München: GRIN Verlag
GmbH.
Shani, Abraham B, Debra A Noumair, and W. Warner Burke. n.d. Research In
Organizational Change And Development.
Tallant, James. 2011. Importance Of Vision, Mission, And Values In Strategic
Direction. Munich: GRIN Verlag.
Ushanov, P. V. 2015. "Crisis Management As A New Management
Paradigm". Effective Crisis Management, no. 1: 66. doi:10.17747/2078-8886-
2010-1-66-79.
References

Britishairways.com. (2018). History and heritage | Information | British Airways.
[online] Available at: https://www.britishairways.com/es-es/information/about-
ba/history-and-heritage [Accessed 15 Apr. 2018].