SEPTEMBER SEMESTER 2023

ABCR 2103

PRINCIPLES OF CORPORATE COMMUNICATION

STUDENT NAME: FOO LEE CHIN

MATRICULATION NO: 930517095104001

IDENTITY CARD NO: 930517-09-5104

TELEPHONE NO: 011-16932773

E-MEL: lizhen93@oum.edu.my

LEARNING CENTRE: PETALING JAYA LEARNING CENTRE

CONTENT

1) Corporate Communication …………. …………………………………....1-2

2) Key functions ………………………………………...................................3-4

3) Case Studies - Airbnb…………………………………...............................5-6

4) Crises and conflicts……………………………………………………….…..7

5) Ethical and social responsibilities……………….………………….……….. 8

6) Conclusion…………………………………………………………………….9

7) References…………………………………………………………………... 10
Corporate Communication

Corporate communication encompasses all the communications sent to internal and

external stakeholders by a company or other organization that help build relationships, align
organizational goals, and foster understanding and collaboration. It involves the development
and implementation of communication strategies, tactics, and channels to convey messages
and keep a positive image and reputation. Corporate communication helps shape the
recognition and reputation of an organization among its stakeholders. According to a study by
Sriramesh and Vercic (2012), corporate reputation is a significant driver of an organization's
success and competitiveness. By effectively communicating its values, mission, and
achievements, an organization can enhance its reputation and substantiate trust with
stakeholders.
Corporate communication plays a key role in fostering collaboration and finding
partnership opportunities. By communicating organizational goals, values, and initiatives,
organizations can attract like-minded stakeholders who share similar interests and aims. This
can lead to strategic alliances, joint ventures, and mutually beneficial partnerships that
enhance the organization's capabilities and market reach. A well-developed corporate
communications strategy can help organizations build credence and credibility with
stakeholders, customers, and the media. It also helps to create a favorable public image, boost
sales, and foster revenue growth.

A well-planned communications strategy can boost employee productivity year-round

and, equally as important, help businesses keep a favorable public image. When employees
aren't operating on the same wavelength, expensive mistakes happen. When companies make
mistakes and do not own up to them or openly communicate how they’ll fix them, reputations
are tarnished forever. It’s a pickle no business ever wants to find itself in. Luckily, most take
active steps to avoid these lose-lose situations by implementing a corporate communication
strategy. (Corporate Communication: Why It Always Matters.28 th August 2018.Joomag
Blog) In a digitally connected world, corporate communication is one of the key factors that
decide whether companies thrive or fail. It affects employee productivity, innovation, brand
awareness, and more.(The Importance of Corporate Communication).8 th January 2023. Peter
Banerjea)

1
 Corporate communication in Malaysia follows similar principles and practices as in other
countries, but there may be specific cultural and regulatory considerations unique to the
Malaysian context. Malaysia has specific laws and regulations that govern corporate
communication, such as the Malaysian Communications and Multimedia Commission
(MCMC) Act, the Companies Act, and the Securities Commission guidelines. Organizations
need to follow these regulations in their communication activities, especially in areas related
to financial reporting, disclosure requirements, and advertising standards. It focuses on
cultural sensitivity, multilingualism, compliance with regulations, stakeholder engagement,
crisis communication, sustainability, and effective use of digital and social media.

In fact, Corporate Social Responsibility (CSR) and sustainability initiatives are increasingly
important in Malaysia. Organizations are expected to communicate their Corporate Social
Responsibility (CSR) activities and sustainability efforts effectively to stakeholders. This
includes reporting on environmental impact, community engagement, employee welfare, and
ethical business practices. All listed companies in Malaysia will have no choice but follow
CSR programs. This is following the orders of the International Trade and Industry Ministry
secretary-general Datuk Isham Ishak recently, Bursa Malaysia. 2019 is, therefore, an
enjoyable time to launch a CSR program in your business.

Overall, corporate communication serves as the foundation for effective stakeholder

engagement, internal cohesion, reputation management, and organizational success. During
periods of organizational change, such as mergers, acquisitions, or restructuring, effective
communication is crucial. It helps manage employee expectations, alleviate resistance, and
create a shared understanding of the rationale and benefits behind the changes. Transparent
and prompt communication reduces uncertainty, anxiety, and enhances employee support for
the change initiatives.

2
Key functions

Corporate communications can serve multiple functions and come through a wide array
of channels, including reports, emails, memos, meetings, press conferences, infographics,
branding materials et cetera. Most commonly, the goal of corporate communications is
multifaceted. The organizations look to form a communications strategy that promotes a
specific brand, minimizes discrepancies with an organization's identity, generates internal and
external support and coordinates effectively with stakeholders. Most corporate
communications departments enlist professionals who specialize in each sect of
communications to collaborate efficiently and engage target audiences appropriately.

In any case, brand management plays a role in defining and supporting the organization's
brand identity and messaging. For example, Apple’s corporate communication team is known
for its ability to create a strong brand image through consistent and innovative
communication strategies that align with Apple's brand values and aesthetics. Further on, the
marketing communication collaborates with marketing teams to develop and execute
communication strategies that promote products, services, and campaigns. Procter &
Gamble's corporate communication team works closely with marketing teams to create
integrated campaigns that effectively reach and engage consumers across various channels.

Aside from that, media, and public relations (PR) is one of the best-known functions of
corporate communications departments. Ordinarily, organizational professionals who work in
media and public relations appear regularly as spokespeople and check an organization's
official communications output. An example is Airbnb's corporate communication team,
which engages in public relations (PR) campaigns to promote positive narratives about the
company's impact on local communities and the travel industry.

3
 The corporate communication department manages communication during crises,
supplying prompt and correct information, addressing stakeholders' concerns, and protecting
the organization's reputation. One example is the crisis response of Johnson & Johnson
during the Tylenol poisoning incident in 1982. The company's corporate communication
team took swift action, recalled the product, and communicated transparently with the public,
ensuring consumer safety and rebuilding trust.

On the contrary, investor relations are an integral part of the corporate communication
function within an organization. It focuses on managing communication and building
relationships with shareholders and the investment community. In times of crisis or
unexpected events that affect the organization's financial performance or reputation, investor
relations play a crucial role in crisis communication. It works alongside other functions, such
as public relations and corporate communications, to supply exact and transparent
information to investors, address concerns, and mitigate potential damage to the
organization's reputation.

Investor relations professionals collaborate with investment bankers, legal counsel, and
other stakeholders to plan and execute capital market activities such as first public offerings
(IPOs), secondary offerings, debt issuances, and investor roadshows. They supply
information and support to potential investors during these processes to ease successful
fundraising activities. By providing right and prompt information, managing relationships
with shareholders and investors, and facilitating effective communication, investor relations
professionals contribute to the organization's ability to attract and retain investors, access
capital markets, and enhance shareholder value.

4
 Case Studies - Airbnb

Corporate communication plays a significant role in shaping an organization's reputation

and image. It influences how the organization is perceived by various stakeholders, including
customers, employees, investors, and the public. They ensure that consistent messages are
delivered across various communication channels, both internally and externally. This
consistency helps establish a clear and unified identity for the organization, reinforcing its
values, mission, and brand promise. It involves various components, including branding,
public relations, and internal communication.

Branding encompasses the organization's visual identity, messaging, values, and overall
perception in the marketplace. It helps create a distinct and recognizable image for the
organization. Effective branding can positively influence stakeholders' perceptions, build
trust, and differentiate the organization from its competitors. Airbnb has nailed the creation of
the brand idea of “Don’t just go there. Live there.” It replaces their original brand idea of
“Imagine a world where you can belong anywhere”, which felt a bit dreamy and disconnected
from the reality of the product they were offering. Airbnb has positioned itself as a platform
that connects travelers with unique accommodations and local hosts, challenging traditional
hospitality brands.

Public Relations (PR) plays a crucial role in shaping an organization's reputation by

building trust, managing media relations, handling crises, engaging stakeholders, promoting
Corporate Social Responsibility (CSR) efforts, leveraging influencers, establishing thought
leadership, and overall maintaining effective communication strategies. During times of crisis
or negative events, Public Relations (PR) professionals play a critical role in managing the
organization's response and mitigating reputational damage. They develop crisis
communication plans, provide timely and transparent information, and address stakeholders'
concerns. The travel industry faced immense challenges during the COVID-19 pandemic, and
Airbnb was no exception. Airbnb took proactive steps to support hosts and guests, including
offering flexible cancellation policies and introducing enhanced cleaning protocols.

5
 Internal communication is a fundamental component of corporate communication. It
involves the exchange of information, messages, and ideas within an organization to foster
understanding, alignment, and engagement among employees. Airbnb recognizes the
importance of internal communication in fostering a cohesive and engaged workforce. Airbnb
leverages digital platforms and tools to facilitate internal communication and collaboration.
The company utilizes messaging apps, project management systems, and video conferencing
tools to enable seamless communication and collaboration among employees, especially in a
remote or distributed work environment. These tools help teams stay connected, share
information, and collaborate effectively.

In addition , Airbnb places a strong emphasis on employee engagement. The company

organizes various initiatives and programs to promote employee involvement, recognition,
and collaboration. This includes employee resource groups, mentorship programs, wellness
initiatives, and team-building activities. Internal communication plays a crucial role in
engaging and motivating employees. It keeps them informed about company news,
milestones, and successes.

On top of that, Airbnb utilizes town hall meetings and all-hands sessions as part of its
internal communication strategy. These sessions encourage employee engagement by
creating a platform for employees to voice their opinions, ask questions, and provide
feedback. Employees are encouraged to participate actively and contribute to the discussion,
helping to build a sense of ownership and involvement in the company's goals. These sessions
are designed to provide updates, facilitate open dialogue, and address questions and concerns.
All-hands sessions offer an opportunity for more interactive and focused discussions,
allowing employees to engage directly with leadership and express their viewpoints.

These case studies demonstrate how Airbnb has utilized corporate communication
strategies to address challenges, respond to societal concerns, and reinforce its commitment
to responsible practices. By engaging with stakeholders, proactively addressing issues, and
communicating its actions transparently, Airbnb has been able to shape its reputation and
maintain a positive image in the face of evolving challenges.

6
Crises and conflicts

Corporate communication is essential in managing organizational crises and conflicts

effectively. It involves the strategic planning and implementation of communication
strategies to address issues, mitigate reputational damage, and restore stakeholder trust. By
following some crisis preparedness and planning steps such as identifying potential risks and
vulnerabilities that could lead to a crisis or conflict. Assess the likelihood and potential
impact of each risk to prioritize resources and develop appropriate communication strategies.

The Tylenol Crisis of 1982 is a notable example of how corporate communication was
utilized to manage a major crisis effectively. The crisis occurred when seven people in the
Chicago area died after consuming Tylenol capsules that had been tampered with and laced
with cyanide. The incident caused widespread panic and raised serious concerns about
product safety. Johnson & Johnson took immediate action to protect public safety and
maintain transparency throughout the crisis. They communicated openly and honestly about
the situation, providing accurate information to the public, media, and relevant authorities. As
a result of Johnson & Johnson's swift and effective crisis management, they were able to
salvage their reputation and regain the trust of consumers.

Corporate communication in Malaysia plays a significant role in managing crises and

conflicts effectively. One example of crisis management in Malaysia is the 2014 Malaysia
Airlines Flight MH370 disappearance. In this case, Malaysia Airlines faced an unprecedented
crisis when the flight went missing. The airline had to manage communication with the
families of the passengers, coordinate with international authorities, and provide regular
updates to the public and media. Despite the challenges, the airline made efforts to
communicate transparently and empathetically, keeping stakeholders informed about the
search and investigation process.

In summary, effective corporate communication during crises and conflicts involves crisis
preparedness, transparent and timely communication, stakeholder engagement, and social
media management.

7
Ethical and social responsibilities

Ethical and social responsibilities are integral aspects of corporate communication in

contemporary business practices. Corporate communication not only serves as a tool for
conveying information but also carries ethical obligations towards stakeholders,
sustainability, and corporate social responsibility. Corporate communication facilitates
stakeholder engagement and encourages their active participation. By involving stakeholders
in decision-making processes, seeking their input, and valuing their perspectives,
organizations demonstrate a commitment to inclusiveness and collaboration.

In fact, Corporate Social Responsibility (CSR) communication is a process of anticipating

stakeholders’ expectations, articulation of Corporate Social Responsibility (CSR) policy and
managing of different organization communication tools designed to provide true and
transparent information about a company’s or a brand’s integration of its business operations,
social and environmental concerns, and interactions with stakeholders.

Ethical and transparent communication about sustainability and Corporate Social

Responsibility (CSR) initiatives contributes to reputation management and trust-building.
Malaysian organizations often publish sustainability reports that highlight their
environmental, social, and governance (ESG) performance. Effective communication of
sustainability metrics, goals, and progress demonstrates an organization's commitment to
transparency and allows stakeholders to assess its sustainability and Corporate Social
Responsibility (CSR) efforts.

Overall , by embracing these ethical and social responsibilities, corporate communication

can contribute to building trust, fostering stakeholder engagement, promoting sustainable
practices, and shaping a positive organizational reputation. It aligns communication efforts
with the values of transparency, inclusivity, accountability, and social impact, leading to
long-term success and stakeholder satisfaction.

8
Conclusion

Stakeholders are important because they have influence, provide support and resources,
impact an organization's reputation, contribute to innovation and collaboration, help manage
risks, and shape social responsibility efforts. Engaging with stakeholders in an inclusive,
transparent, and ethical manner is crucial for organizations to understand and address
stakeholder needs, build strong relationships, and achieve sustainable success.

Stakeholders' perceptions of an organization significantly influence its reputation and

image. Positive relationships with stakeholders can enhance the organization's reputation and
build trust and credibility among customers, investors, and the wider community. On the
other hand, negative perceptions or poor relationships can damage the organization's
reputation and lead to lost opportunities and increased scrutiny.

Investors are more likely to invest in organizations with a positive brand image and
reputation. A strong reputation signals that the organization is well-managed, financially
stable, and has growth potential. This can attract investments, increase stock value, and
improve access to capital for future expansion and development. This can mitigate
reputational damage, maintain stakeholder support, and aid in the organization's recovery.

In summary, corporate communication professionals need to be skilled in strategic

communication, writing and editing, media relations, digital and social media, crisis
communication, interpersonal and relationship building, cultural and global awareness,
ethical and legal compliance, analytics, and evaluation, as well as continuous learning and
adaptability. These skills enable them to effectively manage communication efforts and
contribute to the organization's success in a dynamic business environment.

9
 Reference

Shelley Frost (August 13, 2018) What Is the Importance of Corporate Communication?

https://work.chron.com/importance-corporate-communication-4810.html

Impoff (April 23,2021) Importance of Stakeholders in Business and in a Project

https://impoff.com/importance-of-stakeholder/

Ellie Collier (January 26, 2018 )

The Importance of Corporate Social Responsibility for Your Business

https://www.highspeedtraining.co.uk/hub/importance-of-corporate-social-responsibility/
#:~:text=Corporate%20Social%20Responsibility%20(CSR)%20is,society%20in%20which
%20it%20operates.

Indeed (February 4, 2023) What Is Internal Communication? (And Why It's Important)

https://www.indeed.com/career-advice/career-development/communication-internal

Swetha Amaresan ( September 14, 2020)

https://blog.hubspot.com/service/crisis-communication-plan#:~:text=Crisis
%20communication%20refers%20to%20the,manage%20your%20reputation%20or%20not.