What Is the Importance of Corporate Communication?

By Bihongoye Erica

Think of corporate communication as the voice of an organization. It speaks internally, to employees, as well as externally, to suppliers, vendors, media, investors and other stakeholders. It speaks when things are going well in the corporation and when there is a crisis. As with all good and effective communication, it must be clear, consistent and controlled. There are many varying aspects of corporate communications, and they can all affect or contribute to an organization’s reputation.

External Functions of Corporate Communications

Corporate communications serve several audiences and purposes external to the organization. Companies need to communicate effectively to the media, so they engage public or media relations professionals. If organizations need to liaise with government agencies or if they lobby, they need government relations experts. Public companies need to employ investor relations specialists. Some companies may have specific individuals to handle relations in the community, such as charitable or volunteer works.

Internal Functions of Corporate Communications

A common aspect of internal corporate communications is employee relations -- ensuring accurate and consistent communication with employees. This communication can be both formal and informal. The employee handbook, memoranda and employee reviews are examples of formal communications; personal or ad hoc conversations would be informal communications. Regular and well-executed employee communications is particularly critical during tumultuous times for an organization to ease anxieties, boost morale and inhibit inaccurate information that may trickle outside the organization.

Crisis Communications

Crisis communications is a facet of corporate communications that deserves special attention. Companies and high-profile individuals can find that one crisis and how it is handled can forever alter their corporate path. It could be a product failure, employee injuries, an executive firing or mass layoff, a natural disaster that affects a corporate facility or just an unsubstantiated rumor. Every organization needs to have a crisis communications plan in place before the crisis, with a designated spokesman and crisis team on which to call. Particularly with current social media, proactive planning is essential to the overall health of corporate communications.

Areas of Study and Careers

Depending on how colleges and universities organize their communications studies, if you are interested in corporate communications, you will likely study public relations, organizational communications, technical communications or similarly-named courses . Careers include investor relations, public relations, marketing communications, community relations, media relations, government relations or an area in human resources or employee training. The Bureau of Labor Statistics projects that public relations managers and specialists -- including those handling corporate communication functions -- will find a job outlook of better than average up to 2020.