CORPORATE COMMUNICATION

GROUP-10 14.09.2010

ROAD MAP
Brief Introduction of Corporate Communication

Case Study Analysis/Review of the case Study Conclusion Queries/feedback

What is Corporate Communication? Corporate communication is the communication issued by a corporate / organization / body / institute to all its public(s). "Publics" here can be both internal (employees, stakeholders, i.e. share and stock holders) and external (agencies, channel partners, media, government, industry bodies and institutes, educational institutes and general public).

 Corporate communication serves as the liaison between an organization and its publics. Corporate communication consists of the dissemination of information in a structured manner through different types of communication channels

Channels .
Official Website Annual Reports CEO s address at the AGM Mails & Newsletters- Internal Advertisements Sponsoring events

DOMAINS OF CORPORATE COMMUNICATION

Analyst Relations Internal Communications Investor Relations Corporate Governance Issue Management

DOMAINS OF CORPORATE COMMUNICATION

Change management Mergers and Acquisitions Strategic growth plans Corporate social responsibility Litigation Crisis communications

 Apple Inc.  Shareholders & Investing Community

Corporate Communication-Components
 Employee Relations  Investor Relations  Change Management  Media Relations  Corporate Social Responsibility  Crisis Communications

EMPLOYEE RELATIONS

Employee Relations

Effective Employee Relations: Objectives

 Recognise the importance of employees as a key constituency  Understand how to develop a positive relationship with employees  Developing and sustaining the loyalty and trust  Improving managerial effectiveness  Solidifying employees commitment to change  Develop Internal communications programs, it includes all communication within an organization - oral or written, face to face, oneon-one or in a small group.

Effective Internal Communication

 

A superiors supportiveness to subordinates An emphasis on participative decision-making and upward communication

A situation where there is trust and confidence in organisational message sources

An environment where there is openness between the different levels of the firm

A clear communication of high performance goals

Effective Internal Communication: Aim

         

Improving morale and fostering goodwill Developing a communication climate which encourages feedback Informing staff about internal changes Increasing employee understanding of coy and products, ethics, culture and marketplace Encouraging greater productivity and quality orientation Increasing employee understanding of major trends or social issues affecting them Encouraging employee participation in community activities Explaining changes to benefits/compensation packages Explaining and encouraging professional development opportunities Educating regarding changes in rights and responsibilities as a result of changes in legislation.

Effective Internal Communication : Channels

Intranet Website

Virtual Meetings Print Materials Message Boards

Regular Town Hall Conference Calls

Internal Communication

Internal Newsletters Email

Effective Internal Communications : Barrier

It has been argued that the biggest barriers to improving internal communication are those attitudes which allow managers to embrace a culture of open communication in words but not in practice.

INVESTOR RELATIONS

Investor Relations
A strategic function of corporate management, combining the disciplines of marketing, finance & communication to provide current & potential investors with an accurate portrayal of the company s performances & prospects. It serves as the voice of the company to both the investment community & the capital

Functions Of Investor Relation Personnel

Collection of information on competitors and dissemination of information via press conferences, one-on-one briefings, company websites, & annual reports. Transmission of information relating to intangible values such as the company's policy to corporate governance and its wider corporate social responsibility. Awareness of current and up-coming issues which may have an impact on the organization and to ensure that the image of the corporation is maintained in a coherent fashion. Crisis management- e.g., potential impact of legal liability claims awarded by courts, & consequential impact on company's share price, product liability issues and industrial disasters.

Corporate Governance : Can we make it better

 Corporate governance is about promoting corporate fairness, transparency and accountability.  The corporate governance structure specifies the distribution of rights & responsibilities among different participants in the corporation, such as, the board, managers, shareholders & other stakeholders.  It deals with issues of accountability & fiduciary duty, essentially advocating implementation of policies & mechanisms to ensure good behavior & protect shareholders.

Corporate Governance : Brief History

1. The East Asian Crisis of 1997 saw the economies of Thailand, Indonesia, South Korea, Malaysia and Philippines severely affected by the exit of foreign capital after property assets collapsed. The US corporate crisis of which saw the collapse of two big corporations: Enron & WorldCom, and ensuing scandals & collapses in other organizations such as Arthur Andersen, Global Crossing and Tyco. The Recession of 2007-09, which saw the collapse of financial giants in US: Bear Sterns, Lehman Brothers, and forced US government to bail out several companies which led to Emergency Economic Stabilization Act of 2008.Finally, they got to know: The story is the business, not the stock price.

2.

3.

Principles Of Corporate Governance

 Rights and equitable treatment of shareholders  Interests of other stakeholders  Role and responsibilities of the board  Integrity and ethical behavior  Disclosure and transparency

Corporate Governance : Mechanism & Control

 Internal corporate governance controls  Monitoring by the board of directors  Remuneration  Disclosure  Audit Committee  Financial Structure  External corporate governance controls  Government regulations  Managerial Labour market  Media Pressure  Takeovers  Competition

Corporate Communication Components

Employee Relations

Crisis Communication

Investor Relations

Corporate Communication

Corporate Social Responsibility

Change Management

Media Relations

CHANGE MANAGEMENT

Change Management

What is Change Management & How it helps for better Corporate Communication

Change Management

 Goals for change management for better

communication
 Transform  Reduce  Apply

Theories of Change Management:

In process for better communication

Individual Change Management

Kurt Lewin Model

Unfreeze Change Refreeze

Kubler Ross Model

Resistance Ange Depression Training Reinforcement

Gleichers Formula D*V*F>R

Dissatisfaction Vision First Step Resistance

ADKAR Model
Awareness Desire Knowledge Ability Reinforcement

Corporate Communication Components

Employee Relations

Crisis Communication

Investor Relations

Corporate Communication

Corporate Social Responsibility

Change Management

Media Relations

MEDIA RELATIONS

Media Relations
 Media is both a constituency and a conduit through which all

other constituencies develop images of a company.

 Media can build or diminish a corporate reputation. It has an

enormous effect on a company s ability to succeed at work place and ultimately its bottom line.

Media Relations
Keys for Media Success
 Create and Maintain relationships  Avoid Bribery  Read, Watch and Listen  Give them what they need, when they need it, in the format

they prefer

Media Relations
Remember
    

They may not know about art They may not know about your community They re bombarded with 100 stories/day They have to summarize They re not stupid Say it quickly Say it cleanly Say it simply Say it without jargon

So
   

Media Relations
A company may approach its media relations by adopting following three-step framework:
 Establish a media department aligned with company

strategy
 Keep score of all media successes &

defeats

 Research which reporters cover your beat  Preparing for intimidating media interviews

Media Relations
 Coca-Cola :  Mattel  Nokia

Pesticides in soft drinks High Lead content in toys Defective Lithium mobile batteries Plastic packaging

: :

 McDonald :

Corporate Communication Components

Employee Relations

Crisis Communication

Investor Relations

Corporate Communication

Corporate Social Responsibility

Change Management

Media Relations

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility

 CSR is a concept for the impact of the organization's

activities on customers, employees, shareholders, communities and the environment in all aspects of its operations.

 This obligation is seen to extend beyond the statutory

obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life.

Corporate Social Responsibility

 Whatever companies do in the social realm should preferably not be related to the core business.

 This helps in building the brand and image of the company and connect it with common people.

 Make social engagement a believable proposition for a company. `

Corporate Social Responsibility

Role of Government
 Plays a huge role by setting the rules, and by dictating what is acceptable and not acceptable.  Tax policies /incentives to create incentives for corporate social responsibility.  Encourage by presenting annual awards to companies for outstanding corporate social responsibility.  For instance, one of the finalists in the competition was Ford Motors India, for its support for tsunami relief and its engagement with community organizations.

Corporate Communication Components

Employee Relations

Crisis Communication

Investor Relations

Corporate Communication

Corporate Social Responsibility

Change Management

Media Relations

CRISIS COMMUNICATION

Crisis Communication
When an unforeseen crisis bruises your business, you can sink or swim, depending on how you communicate with your Audience.

Prepare for Crisis

Communicating During Crisis

Communicating after Crisis

Crisis Communication
Characteristics :
 A Rude Awakening  Rapid Speed & Escalation of events  Presence of panic  Tendency to act irrationally  Chaos in Internal communication  The omnipresent press  A threat to company s reputation

Crisis Communication : Cases

CASES OF SUCCESS :
 JOHNSON & JOHNSON Painkiller Tylenol laced with Cyanide  PEPSI Syringes & other foreign objects found in Diet Can  COCA COLA Presence of Pesticide residues

CASE OF FAILURE :
 PERRIER Bottled drinking water contaminated with Benzene

Crisis Communication
Preparing for a Crisis:
 Create a plan to handle a variety of business crises  Assess your Risk by Identifying areas most likely to be affected  Set Communication objectives by maintaing flow of communiation at all times  Consider Constituencies which most likely to be affected  Analyze the Channels and the Choice thereof  Assign teams for crisis  A Crisis HQ location for Centralized flow of communication

Crisis Communication
Communicating during Crisis:
 Define the problem  Gather the relevant information  Centralize Communications  Communicate early and often  Get inside the Media s Head  Communicate directly with affected constituencies  Keep the business running

Crisis Communication
Communicating after Crisis:
 Regain Trust from customers, make good customer service a priority.

 Maintain contact with media.  Put together a plan to rebuild your positive reputation in the community.

Channels of Corporate Communications

Corporate Communication Channels

 Media  Internal Memos and Notices  Emails  Corporate Intranet and Websites/Portal  Annual General Meetings  Teleconferences

Corporate Communication encodes & promotes

 Strong Corporate culture  Coherent Corporate identity  Reasonable Corporate philosophy  Genuine sense of Corporate citizenship through CSR  An appropriate & professional relationship with press  Quick, responsible ways of communicating in crisis  Understanding of Communication tools & technologies

Lets Communicate Effectively & Efficiently

QUESTION PLEASE ??

...Thank You

Corporate Communications

 Objectives & Components  Employee Relations  Investor Relations  Change Management  Media Relations

Manish Gupta Mayank (BPCL) - 7 Kinshook Mukesh Manoj -8 - 10 -6

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-8

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 Corporate Social Responsibility Manish Singhal  Crisis Communications  Summary

Manish Kumar

Kishore / Maynak

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