Professional Documents
Culture Documents
2
An Introduction
To Corporate
CHAPTER
What is Ethics
Communications
LE AR NI NG OUTCOMES
By the end of this topic, you should be able to:
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
INTRODUCTION
Public relation (PR) has a management
function that determines the general poli-
cies and strategies of an institution or or-
ganisation. The organisational policy in-
troduced normally aims to provide public
understanding and acceptance of the pre-
scribed policies. PR department helps to;
minimise the negative effects of the policy
introduced between the internal and ex-
ternal organisational communication with
the public opinion. Thus, in this chapter
the discussion centres on what is corporate
communication and public relations, the different type of PR, the role of corporate managers
and lobbying, public relations functions, public and public opinion, and overview of corporate
plan and campaign.
As a new science, public relations had its origin in social sciences like communication, eco-
nomics, marketing and psychology (Howard, 1984). Most definitions of public relations in
textbooks and professional literature state that public relations are an integral part of manage-
ment. The management specialists in the field of marketing and human resource management,
however, regard public relations as a marketing tool in the theory of marketing mix: product,
price, place and promotion (McCarthy, 1992) which later made famous as mega marketing
when Kotler and Armstrong (1994) added two other Ps: power and public relations.
The global aspect of public relations was underscored by the demand abroad for public rela-
tions expertise both in the field and in the classroom. This is because the public relations (PR)
practitioner serves as an intermediary between the organisation that he or she represents and all
of that organisations publics. Consequently, the PR practitioner has responsibilities both to the
institution and to its various publics. He or she distributes information that enables the institu-
tions publics to understand its policies (Newsom, Turk & Kruckeberg, 2004).
PR, therefore, is the art and science of managing communication between and within an organi-
sation. It plays an important role in building managing and sustaining positive organisational
image. In short PR involves various activities as described in figure 2.1.
Communication programmes.
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
Building and sustaining healthy relationship between the organisation and the
public (Brown, 2007).
The changing of government policy towards organisations brings in new names for public re-
lations about, such as integrated commu-
nication. Old names have become more Corporate
prominent, such as corporate communi- Communications
cation. Corporate communications serves
many purposes in an organisation and can
be divided into two broad categories-exter- Internal External
Communications Communications
nal communication and internal communi-
cation as shown in figure 2.2. Figure 2.2: Categories of corporate communication
Internal communications are intended for the employees of an organisation. It is used to is-
sues work instructions, announcements of in-
ternal events like promotions and transfers. On
another level, it is through the publications of
a newsletter or an internal publication where
information is shared with employees, creat-
ing a sound corporate identity and building
employer pride. Internal communications also
assists organisation with internalising its brand
management. It develops and upkeeps the cor-
porate identity by ensuring that the corporate
brand guidelines are adhered to at all times. It Figure 2.3: Internal communication
also an effective channel used to manage crisis within an organisation. Figure 2.3 depicts inter-
nal communication.
Corporate communication is defined as communication which goes to all staff. Corporate com-
munication serves as the liaison between an organisation and its publics. It encapsulates Pub-
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
lic Relations and customer relations scope of an organisation. organisations can strategically
communicate to their audiences through public relations and advertising. This may involve an
employee newsletter or video, crisis management with the news media, special events planning,
building product value, and communicating with stockholders, clients and donors. Figure 2.5
illustrates the roles of corporate communications.
Genuine
sense of
corporate Quick
An
citizenship. responsible
appropriate
and professional ways of
relationship. communication
in a crisis.
Corporate Understanding
Strong
communication of communication
corporate
encodes and tools and
culture.
promoted. technologies.
Sophisticated
Coherent approaches
corporate to global
identity. communications.
Reasonable
corporate
philosophy.
ACTIVITY
In group of three, discuss the following questions: What are the differences
between public relations, internal communication, external communication and
corporate communication?
SELF-CHECK
1. What are the roles of corporate communication?
2. Define public relations in managerial context.
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
Corporate
Communi-
cations Issues
Sponsorship Manage-
ment
Events
Manage- Product
ment Publicity
Crisis
Public Investor
Manage-
Relations Relations
ment
Financial
Community
Commu-
Affairs
nication
Media
Lobbying
Relations
Public
Affairs
Cutlip, Centre and Broom (2006) defined public relations as a management function that estab-
lishes and maintains mutually beneficial relationships between an organisation and the publics
on whom its success or failure depends. According to Newsom et al. (2000), public relations re-
lates to the various activities and communications that organisations assume to monitor, evalu-
ate, influence and adjust to the attitudes, opinions and behaviours of groups or individuals who
constitute their publics.
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
PR is also defined based on its roles. PR has an important role to play in organisations during
times of crisis. It acts as a guiding force in the ethical, social, and moral behaviours of a corpo-
ration as it fosters and strengthens relationships between an organisation and its stakeholders,
local community, and global community. Public relations are seen as management function
devoted to interacting with local communities while promoting the interests of the company
and its community. However, public relations cannot achieve everything related to the organisa-
tions objectives, nor can it be responsible for all aspects related to different publics but that it
can only manage the process of communication with the publics (Grunig, 2004).
The primary role of public relations personnel lies in managing communication, but they can
also participate in providing counselling and giving suggestions to other departments within the
organisation. These public relations tools and practices enhance your companys profits when
a prospect turns to you (the industry leader) for answers and advice. Figure 2.7 describes the
definitions of PR.
Definitions of PR
Grunig, and Ehling (1992) point out that public relations makes an organisation more
effective by matching the organisations goals with the expectations of its strategic
constituencies and by building long-term relationships with these constituencies.
Associated with public relations is corporate community relations. Specific activities carried out
by the corporate community relations include employee voluntarism, community-based pro-
grams, and relationships with civic, professional, and nonprofit organisations (Altman, 1998).
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
Public Relations, the predecessor to the corporate communication (CorpComm): The best ap-
proach to building a corporate communication function is to begin with the most global and
strategic issues and then move into the narrower aspects of the function as shown in figure
2.8.
Lobbying is part of public affairs, attempts to influence legislative and regulatory decisions in
government. Successful lobbyists typically use grassroots lobbying and other campaign tech-
niques such issue or advocacy advertising, to mobilise public support. The goal, of course, are
to sway public opinion, to activate constituents, and thereby increase pressure on legislators and
government agencies (Cutlip, Centre & Broom, 2000).
SELF-CHECK
1. What is corporate communication?
2. What is the difference between public relations, corporate communication
and lobbying?
ACTIVITY
Find a few advertisements in news paper on public relations job vacancy. Does
the advertisement fulfill the characteristics of public relations roles?
The business benefits that public relations can deliver are wide and varied. The precise mix will
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
depend on the environment in which the organisation operates and the corporate, marketing and
communication objectives. They encompass:
2.3.1 Awareness
2.3.2 Education
The best customer is an educated customer. Public relations is a particularly effective tool for
educating markets about new technologies.
2.3.3 Credibility
A key benefit of public relations as a communications medium is that it has a high degree of
credibility in the mind of the receiver when compared with other marketing communication
channels.
An important driver of this credibility is that the message originates from and is therefore en-
dorsed by the third party. Frequently journalists but also other commentators and other authori-
ties. A good technical articles in a trade publication is not only read but it is believed and the
more credible the publication, the more credible the message.
Consumers are no longer content to rely purely on product performance; they also need to be
reassured that they are happy to do business with the organisation providing the product or
service.
2.3.6 Differentiation
Once the market has been educated, interest has been generated in a technology or product cat-
egory and awareness of our brand established, public relations messages need to differentiate
our brand from that of the competitors.
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
2.3.7 Positioning
Differentiation is delivered through positioning, but positioning is not only to do with the prod-
uct or service on offer, rather it is about differentiating the product in the mind of the prospect
and is therefore best achieved by credibility communications.
Modern marketing is more about relationships than transactions and public relations orientation
is building relationship through communication that is two way and informal style. Figure 2.10
demonstrates the benefits of Corporate Communication.
Education
Awareness Differentiation
Positioning
ACTIVITY
1. Interview a public relations officer about his responsibilities. Find out if his
responsibilities similar with what describe in this module.
2. Why there are differences, if any?
SELF-CHECK
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
According to Cutlip, Center & Broom (2000), public opinion represents a consensus, which
emerges over time, from all the expressed views that cluster around an issue in debate, and this
consensus exercises power as shown in figure 2.11.
Employees
Industry Business
Watchdog Suppliers
Trade Associates
Networks and Partners
Organisation
Media Financial
Brokers
Government Customers
Most people have opinions on most things. The objective of many public relations programme
is to affect public opinion, often by mounting a media relations campaign. The fear of many
public relations practitioners is that these opinions could be drawn together and focussed by the
media against their organisation.
Grunig and Hunt (1984) characterised different types of publics as shown in figure 2.12.
Types of
Public
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
1. Think of three or four publics at your organisation. What are the best ways to
SELF-CHECK communicate with these publics? What influence these publics opinion?
2. How much influence do you think public relations practitioners have on pub-
lic opinion? Defend your answer with examples.
3. As an individual, you make an impression or have a presence with others.
Identify three groups who make up your individual public.
Even though different publics often share some common interests and values, it is increasingly
dangerous to assume that people share common sets of values. Thus, an organisation trying to
determine a socially responsible course of action must simultaneously try to respond to special
interest groups interested in changing a broader public opinion. Figure 2.13 explains the defini-
tion of publics.
Non-publics, which are groups that neither are affected by nor affect the organisa-
tion.
Latent public, which are groups that face a problem as a result of an organisation
actions, but fail to recognise it.
Aware publics, which are groups that recognise that a problem exist.
Active publics, which are groups that do something about the problem.
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
designed and developed to address an issue, to solve a problem or to correct or improve a situ-
ation. A campaign may be constructed around a positioning statement as shown in figure 2.15.
Positioning statement is an objective operating statement for the organisation. Positioning is
operationally defined as:
Communication planning is then structured to help the organisation achieve its mission, in light
of how the organisation has positioned itself. Communication effects has the following opera-
tional definitions as shown in figure 2.16.
Figure 2.17 describes the activities of public relations practitioner. For example, in planning for
a communication public relations program, public relations practitioner need to:
Create a schedule for special events. Local advertising, broadcasts and other com-
munication.
Seek the opinion and co-operation of employees who will be involved in the pro-
gram.
Advertise and publicise events in the daily newspaper and on radio and television.
Cutlip and center proposed Four-steps of Public Relation Process to manage public relation
campaign as indicated in Figure 2.18.
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
1. D
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P g
e Pu
th b
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at
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Ev
ion
4.
What is happening
sP
How did we do?
now?
roble
Assessment Situation Analysis
ms
Implementation Strategy
3. Tak
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2. P
Problem definition begins with someone making a value judgment that something is either
wrong, could soon be, or could be better. A useful problem statement summarises what was
learned about the problem situation and it describes the situation in specific and measurable
terms, detailing most of the following (Cutlip, Center & Broom, 2000): Figure 2.19 shows the
various elements of problem statement.
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
The first task was to marshal all the facts Figure 2.20: Public relations process involve research
through research so that the move could be explained and justified in term of those concerned.
Scientists have developed a generally accepted approach to research. The process begins with
a clear statement of the problem under investigation. The next step is to develop the research
design and followed by the specific methods for gathering, analysing, and interpreting data.
Figure 2.20 shows the public relations process involve research.
SELF-CHECK
ACTIVITY
Select a different problem and arrive at a solution through a problem-solving
group of three to five people.
After a communication problems or opportunity is defined and the involved publics are iden-
tified, strategic decisions can be made concerning plans of action, in the form of projects or
programs (Cutlip and Centre, 1982). The effectiveness of programming depends heavily upon
the planning.
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
2. It improves effectiveness:
By working on the right things, defined objectives will be achieved. Time and money will be
saved because effort isnt being diverted into worthy but less important tasks. Importantly it
makes saying No to unplanned things much easier.
5. It minimises mishaps:
Careful planning means that at the macro different level scenarios have been considered and
the most appropriate selected. It means that there is meticulous contingency planning and all
the angles have been covered. At the micro level, planning makes day-to-day work tolerable,
even fun.
6. It facilitates proactivity:
Setting your won agenda is vitally important. Of course public relations work is about reacting
to media demands or responding quickly to a crisis, but it is also about deciding, what you want
to do-what actions you want to take, what messages you want to put across and when. Planning
is comprehensive and cohesive programme helps you achieve this.
You must clearly delineate your publics before planning your strategy. The demographics and
psychographics will give you insight into the tactics you should employ to make your strategy
succeed. Demographics comprise objective, statistical data like age, sex, education and income.
Psychographics comprise the value statements you can make about audiences, their lifestyles,
their likes and their dislikes. Figure 2.21 depicts the examples of demographic and psycho-
graphic factors.
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
ACTIVITY Considered the following audiences: Teachers, nurses, the basket ball team, a
group of managers where you work, car sales person, restaurant owner, and stu-
dents. For those audiences with which you would be most familiar (you may add
others) select different topics for an after-lunch speaking engagement.
According to Cutlip and Center (1982), public relations planning start with the stated objec-
tives of the organisations served and proceeds from the specific implementation assigned to it
in the form of public relations objectives. Four fundamentals investigative process involves at
this stages:
1. A searching look backward: Back ground information on organisation history, biography of
the founder, background of the problem, roles of public relations etc will provide.
2. Useful information to the public relations practitioner on how the problem had been han-
dled.
3. A wide look around: Looking for the information surround the organisation internally such
as how do employees feel about the current situation of their employment, any breakdown
in understanding between the organisation and publics etc.
4. A deep look inside: Who control the organisation? Style of leadership practice in the or-
ganisation? The practitioner need to know what makes the organisation tick, and whether
it ticks with convictions, values and standards that the practitioner can share and honestly
promote.
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
The theme may be determined in a number of ways-from several persons brainstorming togeth-
er, from one persons new idea or from adaptation of someone elses successful idea (Newsom,
Turn & Kruckeberg, 2004). You also need to pretest ideas as well as completed materials, get-
ting feedback from the publics.
Your choice of media depends both on the publics you want to reach and on the message you
want to deliver. The creative use of media is important. A PR person has to be careful about the
complementary use of advertising and publicity. Advertising is definite, scheduled communica-
tion that appears along with whatever planned activities it is designed to promote. Publicity is
indefinite communication that cannot be guaranteed except in controlled media.
SELF-CHECK
What are four fundamental process involved in selection of public relations cam-
paign objectives?
4. Seeking identification in vocabulary and anecdote with the audience in an area removed
from the issue.
5. Establishing the communicators position as being the majority opinion-defining the major-
ity from the audience itself.
6. Bringing the audiences group identifications into play-when those identifications will help
the development of a positive response. The converse is also true.
7. Modifying the message to fit the organisations need-since you cant modify organisational
objectives.
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
Your budget has a great deal to do with how much flexibility you have in choosing media, and
with how many publics you can reach effectively. Figure 2.23 explains the media selection
criteria.
Telephone
Difficult Teleconference
Email
Message Requirements
Personal Note
Letter, Memo
Public Speaking
Special Report
Bulletin Board
Newsletter
Easy Annual Report
ACTIVITY
Interview someone who works in public relations or media department and ask
that person to identify types of media.
After you have set your goals, you must plan the strategy you will use to achieve them. Devis-
ing the strategy for a plan or campaign is the most difficult part of the planning process. If the
strategy is right, everything else rolls off the back of it.
Strategy, like planning, applies to total programme as well as individual activities. Its impor-
tant because it focuses effort, it gets results and it looks to the long term.
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
drawn from what your result tells you are the best choices. You will use tactics to shape specific
messages for delivery to each public in order to achieve the purpose you have determined.
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
1. Credibility:
Communication starts with a climate of belief. This climate is built by performance on the part
of the institution, reflecting an earnest desire to serve stakeholders and publics. Receivers must
have confidence in the sender and high regard for the sources competence on the subject.
2. Context:
A communication programs must square with the realities for its environment. Mass media only
supplement the words and deeds of daily living. The context must provide for participation and
playback. It must confirm, not contradict, the message. Effective communication requires a
supportive social environment, one largely set by the news media.
3. Content:
The message must have meaning for receivers, and it must be compatible with their value sys-
tem. It must have relevance to the receivers situation. In general, people select those items of
information that promise them the greatest rewards. The content determines the audience.
4. Clarity:
The message must be put in a simple terms. Words must mean the same to the receivers as to
the sender. Complex issues must be compressed into themes, slogans, or stereotypes that have
simplicity and clarity. The farther a message has to travel, the simpler it must be.
5. Continuity and consistency:
Communication is unending process. It requires repetition to achieve penetration.
6. Channels:
Established channels of communication should be used. Different channels have different ef-
fects and serve effectively in different stages of the diffusion process. Selective channels are
called for in reaching targets publics. People associate different values with the many channels
of communication.
7. Capability of the audience:
Communication must take into Credibility
account the capability of the audi-
Capability
ence. Communications are most
of the
effective when they require least audience Context
effort on the part of the receivers.
This involves factors of availabil-
ity, habits, reading ability, and
7Cs
prior knowledge. Figure 2.25 il- concepts
lustrates the 7 Cs concepts.
Channels Content
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
Collect feedback to evaluate the success or failure of the campaign. Each company has a num-
ber of publics. Communicate to maintain a balance between the organisations need and the
publics needs.
Case Study:
What it takes to communicate a merger.
By Christine Kent
chrisk@ckeditorial.com
The biggest mistake communicators make when a companys going through a merger,
or being acquired?
Not being prepared for an announcement of this complexity, explains Jeffrey Block,
associate director for Thomson Reuters Strategic Research. What often happens, says
Block, is that different parties get different informationcustomers hear one message,
and investors hear another.
Another big problem, says Block, occurs when PR gets pushed out of the way as
executives navigate around a merger or acquisition, even though theyre the most
important part of the communications process, says Block.
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
SUMMARY
1. Public relations involve managing the image and identity of the organisations.
2. Once the public relations problem or opportunity has been defined through research and
analysis, practitioners must devise a strategy for coping with the problem or for capital-
ising on the opportunity.
3. This is planning and programming-making the basic strategic decisions about what will
be done in what order in response to or in anticipation of a problem or opportunity.
4. The third step of the management process moves the public relations program into im-
plementation.
5. Thus, in this chapter we have already discussed what is corporate communication and
public relations, the different type of PR, the role of corporate managers and lobbying,
public relations functions, public and public opinion, and overview of corporate plan
and campaign.
glossary
Consistency - Logical coherence and accordance with the facts.
Sensors - Detectors
Spanners - Wrenches
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CHAPTER 2 l AN INTRODUCTION TO CORPORATE COMMUNICATION
reference
Books
Argenti, P & Forman, J (2007). Crafting the Voice and Image of your Business. The
Power of Corporate Communication. McGraw-Hill.
Berger, B & Reber, B (2006). The Role of Resistance in Practice. Gaining Influence in
Public Relations. Lawrence Erlbaum Associates..
Fombrun, C & Van Riel, C (2003). How Successful Companies Build Winning Repu-
tations. Fame and Fortune. FT Prentice Hall.
Kitchen, P & Schultz, D (2001). Corporate communications in the 21st century. Rais-
ing the Corporate Umbrella. Palgrave Macmillan.
White, J & Mazur, L (1995). Making public relations work. Strategic Communications
Management. Addison-Wesley.
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AN INTRODUCTION TO CORPORATE COMMUNICATION l CHAPTER 2
Discussion Questions
1. Why is public relations a management functions? What makes it strategic?
2. What tactics, techniques and roles are suggested by PRs various specialties?
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