Corporate communication refers to a process of communication through which the managers, supervisors and executives exchange their views, opinions, feelings, etc. with the subordinates and employees in any corporate organisation and negotiate with the outside world with a view to fulfilling the objectives of the organisation. 

Read this article to learn about –  1. Corporate Communication Meaning  2. What is Corporate Communication 3. Characteristics of Corporate Communication 4. Importance of Corporate Communication 5. Importance of Communication in Corporate World 6. Guidelines for Effective Corporate Communication 7. Investor Relation as a Function of Corporate Communication

Meaning of Corporate Communication

Corporate communication refers to a process of communication through which the managers, supervisors and executives exchange their views, opinions, feelings, etc. with the subordinates and employees in any corporate organisation and negotiate with the outside world with a view to fulfilling the objectives of the organisation. 

What is Corporate Communication 

A corporate organisation is a little society. Communication is the bond holding that society together, enabling it to function. Through the process of communication, the members of the corporate organisation exchange messages using a common system of symbols that result at least to some degree, in sharing the meaning of the message among them.


Corporate communication elements of a corporation. To facilitate corporate communication, a business manager will usually need to have or develop considerable interpersonal skills – such as effective speaking, writing and listening – in order to best assist information sharing within their department. Also called organisational communication. 

Thus, communication has two important functions in a corporate organisation:

(i) It enables people to exchange necessary information, and

(ii) It helps to set members of the organisation apart from non-members.

Characteristics of Corporate Communication


The characteristics of corporate communication are mentioned below: 

1. Formal Communication: 

Most of the corporate communications are formal in nature. Orders, instructions, information, suggestions, etc. are sent, maintaining formal procedure in a systematic way. It has to pass through several organisational stages. 

2. Informal Communication: 

The size and structure of a corporate organisation being large and complex, informal communication or grapevine communication among different groups of employees takes place side by side with formal communication. 

3. Internal Communication: 

Exchange of information with a large number of people within the business is required in corporate communication. 

4. External Communication: 

External communication with the customers, vendors, distributors, competitors, investors, government offices, etc. are made. 

5. Oral and Written Communication: 

While oral communication is used for closer and internal communication with the employees, written communication is made with the outsiders and distant people. 

6. Wide Coverage: 

Corporate communication is large and a wide range of people are required to be covered in communication. People within the communication at different levels in different departments and a large number of people outside the communication are required to be communicated within the course of running the activities of the communication. 

7. Feedback: 

As in the case of other communication, feedback is an essential element of successful corporate communication. It is a two-way process of sending information and receiving responses. Through feedback the sender can know the reaction of the recipient and take necessary action. 

8. Long-Term System: 

Corporate communication has a perpetual existence. So, corporate communication is not a temporary arrangement. It is a long-term system or process. Communication is carried out continuously through a stable process. 

Importance of Corporate Communication

Communication has an important role to play in the corporate world. With the increase in the complexities of activities in modern business, its importance is growing day-by-day. 

To achieve the objectives of the communication, coordination among the persons and departments within the communication and establishment of connecting links with the outside world are very much necessary. 

1. Internal Coordination: 

To fulfil the objectives of the communication, coordination among the employees is necessary and to coordinate various activities communication is essential. Corporate communication being large in size, division of work and specialisation in activities are the characteristics of such communication. 

2. Connecting Link with the Outside World: 

In a corporate organisation, communication with the external people, such as customers, vendors, investors, competitors, government departments, etc. are essential. Even connecting links with the foreign counterparts and centres are necessary for proper functioning of the communication. 

3. Motivation: 

Communication helps to motivate the employees to obey the orders and directives of the management authority. The feedback of the employees also enlightens the managers. 


The interaction between the managers and the employees improves the relation between them and encourages all to devote themselves fully to achieve the objectives of the organisation. 

4. Efficient Management: 

George Terry’s remark that communication works as a lubricant to increase the efficiency of management is applicable to corporate organisations more appropriately. Communication supplies the managers and employees with the information, co-ordinates and motivates the employees. 

5. Decision-Making and Implementation: 

The success of any corporate organisation depends largely upon decision-making. Right decision-making, again, depends upon correct and timely information which is obtained through communication. Again, implementation of the decision requires proper communication. 

6. Leadership: 

The manager communicates orders and instructions to the subordinates, who, in turn, carry out the instructions and sometimes send feedback in the form of suggestions, grievances and complaints. The manager tries to remove the inconvenience as far as possible. The entire process establishes the basis of leadership. 

7. Corrective Measures: 


In a corporate organisation the number of employees is large. Everybody’s performance may not achieve the required standard and some corrective measures may become necessary. 

8. Speed: 

Modern technologies have made communication faster. Now, no one has to wait for weeks or months for a reply letter. E-mail, fax, internet, etc. have made communication almost instant. Immediate flow of information helps in taking correct decisions in time and anticipates solutions to a probable problem. 

Importance of Communication in Corporate World

The importance of communication in corporate world becomes clear from the following points:

1. Setting Goals and Objectives:

Most organisations have a variety of formal and informal objectives to accomplish. These goals are established by thinking and talking about them and then committing them to paper. 


The objective might be defined in terms of financial results, product quality, market dominance, employee satisfaction or service to customers. But regardless of the goal, the fact that someone has thought about it and communicated it, enables every employee to work towards a common purpose.

2. Making and Implementing Decisions:

To achieve their goals, people in business must make and implement many decisions. They must collect facts and evaluate alternatives and they do so by reading, asking questions, talking things over with one another and just plain thinking. Often their deliberations depend on reports that are prepared by others. 

Then, once a decision has been made it has to be implemented and this requires more communication. Business people have to explain what needs to be done and in order to implement their decision they need help and support from the other people.

3. Measuring Results:

As the decisions are translated into action, management needs to determine whether the desired outcome is being reached. Statistics on such factors as costs, sales, market share, productivity, and employee turnover and inventory levels are compiled. 

In larger companies the data may be put together using a computerized management information system that prepares reports automatically. In smaller companies management may obtain the required information through face-to-face contact with lower-level employees or in the form of hand-prepared memos or reports.

4. Hiring and Developing Staff:

If a company wants to hire someone it must first advertise the opening screen resumes, interview applicants, and eventually make a job offer. 


Then the new person must be introduced to the organization, instructed about the responsibilities of the position and motivated to perform. As time goes on, the new employee must be given feedback on her or his performance, which involves more communication.

5. Dealing with Customers:

All organisations have to interact with their customers. These interactions involve communication in one form or another. Even the price tags on products are a form of communication. 

Sales letters and brochures, advertisements, personal sales-calls, telephone solicitations, and formal proposals are all used to stimulate the customer’s interest. Communication also plays a part in such customer-related functions as credit checking, billing and handling complaints and questions.

6. Negotiating with Suppliers and Financiers:

To obtain necessary supplies and services, companies develop written specifications that outline their requirements. They place orders for materials and bargain to get the best price. To arrange financing, they negotiate with lenders and fill out loan applications, or they sell stock to the public which involves communication.

7. Producing the Product:

Getting an idea for a new product out of someone’s head, pushing it through the production process and finally getting the product out of the door also requires communication. 

Designers draw plans, marketing people conduct studies, and product managers develop sales campaigns. When the time comes for full-scale production, the company prepares a manufacturing plan.


Supervisors get instructions and pass them on to production workers. As production gets underway, workers report any problems that may arise. Records are kept regarding raw materials, inventory levels, and product quality. Finally, arrangements are made by phone or in writing for shipping the product. All these activities require communication.

8. Interacting with Regulatory Agencies:

Communication also occurs between businesses and the government. With input from companies, public, government agencies formulate rules and regulations that both protect companies and ensure that they operate in the general interest. 

Often, companies must then demonstrate their compliance with regulations by preparing reports that describe their efforts to meet such goals as cleaning up the environment or hiring women and minorities.

Guidelines for Effective Corporate Communication

Corporate communication to be effective should follow some guidelines stated below: 

1. It should be simple. Jargon and buzzwords create confusion and difficulty in understanding. 

2. It should be concise. Repetition of words and unnecessary explanation are to be avoided. It should be kept in mind that more communication is not necessarily better communication. 


3. It should be clear in meaning and free from ambiguity. 

4. The message should be courteous, no matter whether it is being sent to the subordinates, to the superiors, or to the peer persons. It is to be remembered that courtesy begets courtesy. 

5. The communication should give correct information in the proper time and in the right manner. 

6. It should be complete in all respects. Before communicating one should check whether the following ‘5 Whs’ are answered- Who, What, Where, When and Why. 

7. Corporate communication should be consistent to the norms of the organisation. It should keep track of the previous communication and maintain a continuity. 

8. Metaphors, analogies or examples are sometimes necessary to bring out the meaning of communication easily. So, appropriate use of these is recommended for better communication. 


9. Repetition of the key message is necessary in some cases. To become sure about the success, the communicator sometimes repeats the key message. 

The use of computer based technology has become the need of the day due to different reasons. The technological advancement has brought the use of sophisticated hardware and software like radio, television, tape recorder, films, and transparency in the field of education. 

The professionals/teachers of today employ numerous information communication technology (ICT) supported methods and materials in the classroom to enhance the teaching-learning process in a more effective way. 

As we are entering into the era of inclusion and as it has become the fundamental right of each child to be educated, children with disabilities are being enrolled in the regular schools through the centrally sponsored scheme of the Government of India called Sarva Shiksha Abhiyan. 

Since, the professionals/teachers in the regular schools lag in the skills to teach the children with special needs, the knowledge about the ICT supported teaching methods for the disabled children would be of great boon to them to handle the entire class without any discrimination. 

Here we will discuss the research perspectives of the role of ICT supported teaching methods in educating children with special needs. 

Investor Relations as a Function of Corporate Communication

Investor relations (IR) has emerged as the fastest-growing function of corporate communication and an area of intense interest at all companies. 

Traditionally investor relations was handled by the finance or treasury department, often reporting to the company’s chief financial officer, but the focus in recent years has moved away from “just the numbers” to the way the numbers are actually communicated to various constituencies. 

IR professionals deal primarily with securities analysts who are often a direct source for the financial press, which this sub function cultivates in conjunction with experts from the media relations area. 

IR professionals also interact heavily with both individual and institutional investors. They are also highly involved with the financial statements and annual reports that every public firm must produce. 

Given the quantitative messages that are the cornerstone of the IR function, as well as the need for IR professionals to choose their words carefully to avoid any semblance of transferring inside information, this function must be a coordinated effort between communications professionals and the chief financial officer, comptroller, or vice president for finance.