Corporate Communication

Corporate communication refers to the various kinds and modes of dissemination of information in an organization or company. According to Goodman (2008), corporate communication entails effective delivery of messages to concerned parties at stake. He notes that it is an essential aspect in the business that promotes affectivity and productivity in the company. Corporate communication ensures that the mission and vision of the company is achieved. Moreover, it creates a positive corporate identity of the organization.

According to Goodman (2008), corporate communication usually occurs in two different flow systems. One is the internal corporate communication which constitutes communication within an organization. It enables the organization to make decision and discuss various matters affecting the company. There is also external corporate communication, which involves communication between the organization and its other corporate entities. It is an essential mode of communication as it gives the company its picture in the corporate world.

Additionally, Oliver (2003) notes that an effective corporate communication must follow a set flow system. This radiates right from company heads to all other components involved. He identified the need to adhere to the chain of command to help avoid communication crisis and distortion of the corporate message. Oliver emphasizes on establishment of good corporate communication at all levels. Moreover, he went ahead to identify two modes of communication within a company. These include the horizontal level of communication, which actually involves parties of the same degree of status and work. A good example here is the communication among corporate executives or board of directors. His second level of communication is the vertical one, which mainly involves people of different ranks within a company. It is therefore quite important that the channels of communication in an organization are defined by these two levels. The following is an elaboration of corporate communication within components of an organization set up.

Stock holders

According to Goodman (2008), stock holders constitute an important and most fundamental part of the company life. He elaborates that they form the capital basis of the company and must, thus, have proper communication amongst themselves and with the rest of the company. Based on the fact that stock holders mainly interact with company executives, their mode of communication is horizontal. Stock holders include investors who also form the board of directors that is involved in overseeing the general life of the company.

Goodman (2008) notes that in order to meet their responsibilities, this group has to hold annual and timely meetings among the board of directors. It is an essential aspect in the corporate world. He illustrates that this enables the stock holders to be informed on the company financial state and also hold elections on members of the board. Apart from annual meetings, Goodman (2008) also advocates that this group is directly affected by the provisional release of financial reports through financial press and periodical company magazines. Such reports enhance transparency and works to motivate the stock holders. He notes that annual reports, quarterly reports should contain financial statement that is of importance to stockholders. Advertisements in periodicals can also be used in order to attract other potential stock holders.

Corporate Executives

According to Goodman (2008), corporate executives are the wire mesh connecting stock holders to the company. They are involved in coming up with company’s strategic plan. Due to their central role in the company’s life, he explains that a company ought to use various communication channels to reach the stock holders. Computer Medias, electronic mails, corporate televisions and fax are some of the channel that can be used to relay corporate information to the stockholders. Executives must be very vigilant in transmission of information to avoid distortion.

Goodman (2008) further emphasizes that it is the ideal role of executives to establish and make known company’s mission and vision to the company. His major argument is that whenever a clear vision statement is made known to both the stock holders and company, it influences their behavior and commitment. It is thus quite clear that executives are involved in both vertical and horizontal mode of communication. In executing this role, the executives use annual meetings, internal memos, and even fax to pass corporate information. The company executives are also responsible for the creation of the company communication policy. This is usually included in the company pledge.

Base Managers

Base managers are personnel trained to co-ordinate day to day running of the company. They interact daily with the employees of a company and are informed of entire company errands. Base managers also act as link of the employees and corporate executives. It is important to note that base managers are involved in taking daily company decisions and face the challenge of ensuring things are straight in case of emergence of crisis. Managers are expected to guide their employees and regulate the activities of the company. The success of the company is partly dependent on the management. Every manager must be equipped in solving communication crisis.

Evidently, there is a vertical level of communication between base managers and employees. In order to pass information, base managers apply use of internal memos, set telephones and weekly or monthly meetings, where important information is passed and employees also given opportunity to air out views on daily company undertakings. However, crisis management requires effective communication to manage the situation. In some instances, a call for impromptu meetings provides the best way forward. In some companies, employee relations are employed. These are usually devoted staff, who are given out to ensure effective communication between managers and employees. Good corporate communication between manager and employees create a conducive working environment, thus, promoting productivity.

Employees and Unions

In any given company, the employees are responsible for the company’s productivity at large. Oliver (2003) considers employees as the direct image of the company. He notes that this group impacts the financial standing and corporate identity of the company. Employees get corporate information from the base managers, while the communication among them is paramount and must be well established. Team building activities such as going out for retreats, hiking, and dinner can work to enhance good communication to promote corporate communication. Having unions in an organization is always an added advantage to the employees. Unions are a collection of workers sharing common interests and united by a course. The main aim of unions is to protect the interest and rights of the employee. In most companies, unions act as link to the managerial team. It presents complains and recommendations of employees. This is due to the fact that employees’ in a company may be too many to have one on one communication with base managers.


In conclusion, corporate communication is quite an important part of any company’s success and must not be underestimated in all instances. It is clear that effective corporate communication has a direct positive impact on all the segments of any given company. This implies that it is necessary for all the stakeholders to understand the communication policy of the company. However, for this to be possible, all the members of the various segments of the company must agree with the fact that the flow of corporate communication goes  from highest ranks of the company down to the employees.

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