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1. CHAPTER 1

2. What is Reputation?

3. CHAPTER 1
Overview of Corporate Communication
Describe the importance of corporate communication
to today’s organizations;
Explain the communication theory and the
application to its practice;
Explain the integrative framework of corporate
communication; and
Describe how the organization communicates
globally.

4. Overview of Corporate Communication?
Corporate communication is a part of the strategic
management discipline that managers can use to
improve organizational perception management and
strategy development.
Managers of corporate communication are concerned
with planning and implementing corporate
communication functions such as corporate image
and identity, corporate branding, internal
communication, media relations, investor relations,
marketing communication and government relations.

5. Managers of corporate communication acting as ‘eyes
and ears’ of the organization, are responsible for
maximizing the organizational values through
managing the reputation and relationships.
focus on long term profitability by balancing a firm
profits and relationships with their stakeholders.
reputation is a hallmark of organizational core
competencies that what make corporate
communication important to the firm
Overview of Corporate Communication?

6. What is Corporate Communication?
Corporate communications is the process of facilitating information
and knowledge exchanges with internal and key external groups
and individuals that have a direct relationship with an enterprise.
The word “corporate” in this field is relating to “corporation”.
Latin word ‘corpus’ (body) in relations to “total”.
The word “communication” means transmit or disseminate
messages/data.
Corporate communication can be interpreted as a total
communication activity.

7. Corporate communication (without “s”) as “the total communication
activity generated by a company to achieve its planned objectives”,
(Jackson, 1987).
Van Riel and Fombrun (2007) define corporate communication is “the
set of activities involved in managing and orchestrating all internal
and external communication aimed at creating favorable starting
points with stakeholders on which the company depends”.
Cornellisen (2004) defined corporate communication as “a
management function that offers a framework and vocabulary for the
effective coordination of all means of communications with the
overall purpose of establishing and maintaining favourable
reputations with stakeholder group upon which the organisation is
dependent”.
What is Corporate Communication?

8. Definition of CorpCom
The above definition contains several important elements, as
explained below:
 Communication comprises the internal and external communication
techniques and media that are being used to send relevant messages to
internal and external constituencies.
 Relationship is a functional activity that aims to create mutual
understanding between two or more groups (the organization and its
strategic constituencies).
 Reputation is an individual’s collective representation of past images of
an organization established over time. Reputation is an intangible asset of
the organization.
 Stakeholder is any individual or group who is keenly interested in the
services offered by the enterprise. A group can be directly or indirectly
affected by the functional activities of the enterprise.

9. Technical level of corporate communication – deals
with functional activities such as event
management, media relations and marketing
communication.
Managerial level of corporate communication –
concerns with strategic formulation, planning and
implementation of managerial activities such as
corporate identity, corporate branding, corporate
reputation, investor relations, and corporate
social responsibility.
Two Levels of Corporate Communication

10. First, a customer is always a KING! Corporations find
today’s stakeholders are more sophisticated as compared
to the last century.
Second, every corporation is expected to express and
unleash potential to their constituencies. Perception
management is a key to improve their business strategy.
Third, globalization has drastically changed the way a
corporation runs its business.
Fourth, the convergent media of computing and
telecommunication, the information or data can be
transmitted from one place to another with a greater
speed.
What Corporate Communication is So Important?

11. According to Argenti (1998), “by creating a
coordinated, coherent corporate communication
system, an organization will be able to face the new
century with the strategies and tools that few
companies in the world have at their fingertips”.
Thus, corporate communication will help the
organization to be visible and transparent to their
constituencies.
What Corporate Communication is So Important?

12. The Roots of Corporate Communication
 Communication is about transmitting messages, data or information from a
sender to a receiver using verbal or non-verbal behaviors.
 Communication is not about transferring a thing from one place to another,
but it must be interpreted as a shared meaning between two parties to
achieve their goal in a win-win situation.
 There are four basic elements of communication:
 Sender (by whom)
 Receiver (to whom)
 Message (what messages/data/information are communicated)
 Channel (through which medium)

13. A Basic Communication Model 1#

14. A Basic Communication Model 2#
The above elements describe a communication
process which a sender encodes the message and
transmit it to a receiver using the appropriate
channel.
The shared meaning depends on how a receiver
decodes the message he/she receives.

15. In the organizational system, communication flow
from the level of top management to the functional
level requires a strategic communication policy.
Managers communicate with their subordinates to
get the work done.
Internal communication is responsible for
transmitting organizational policies to all employees
in every business unit of the corporation.
A Basic Communication Model 3#

16. Meanwhile, communication can flow from the bottom level to the top
management in the dynamic environment. Feedbacks given by
subordinates are used to improve the strategic communication policy.
In a communication process, disturbances such as noise, distraction,
and hindrance are those annoying elements that preventing the
messages successfully convey to receivers.
The sender, who carries the messages, must aware of any sign of
disturbance in a communication process to ensure that messages can
be clearly decoded by receivers
A Basic Communication Model 4#

17. Switching To New Paradigm 1#
From public relations to integrated communication

18. When defining corporate communication, some people view public
relations is corporate communication. Is there any difference?
Changing the name will not improve practices! Is it true that there is
no significant different between these two terms?
The answer is studies (Zulhamri, 2007; Van Riel & Fombrun, 2007)
have proved that there is a significant difference between these terms.
In practice, today’s public relations is about publicity and promotion
through the management of special events and media relations. It is
located at a functional level of management.
Meanwhile, from a holistic approach, corporate communication is
about managing reputation through the management of corporate
identity and images.
Switching To New Paradigm 2#

19. Many global corporations attempt to overcome
fragmentation and to minimize inconsistent impression
about the products and services of the corporation.
Through public relations programs, a corporation merely
polishes its images and creates fragmented images which
sometimes caused inconsistent messages to stakeholders.
Moving towards integrated communication is desirable to
many corporations.
Van Riel and Fombrun (2007) argued that integrated
communication is “a systematic process for building a fully
Switching To New Paradigm 3#

20. Thus, managers of corporate communication
must understand that using integrated
communication (public relations, marketing, and
advertising) will make a corporation more visible
and transparent to their stakeholders.
This supports the notion that corporate
communication is about a Total Communication
Activity.
Switching To New Paradigm 4#

21. Communicating Globally
Globalization is inevitable!
There are two options: Adapt or die!
The world has been transformed from a traditional,
‘industrial economy to an attention economy’, (Bikker
& Regt, 2001) precisely from selling product branding
to selling corporate branding (Kitchen & Schultz,
2001) in order to venture into globalisation
challenges.

22. According to McLuhan and Powers (1992), McLuhan
coined the term “Global Village” to describe the world
now becomes smaller and borderless.
The use of the Internet and World Wide Web has
dramatically changed the way managers are doing
business.
Through this process, it makes globalization possible
to those strong and giant corporations.
Communicating Globally

23. Summary
In this chapter, you have learnt that:
Corporate communication is the management science that
requires a systematic process for building a strategic
communication policy towards achieving desired goals and
objectives of the firm.
Corporate communication consists of two important elements:
reputation and relationship. The challenge is how a firm deals with
reputation and relationships in a functional area.
Perception management is a key to improve an organizational
business strategy.
Corporate communication deals with internal and external
communication for the purpose of building favourable images with
their stakeholders.
Globalization is inevitable. A corporation must adapt to the
complex features to improve their reputation; otherwise, it will
face a greater risk.

24. Class Exercise

25. Class Exercise