Chapter 1: What is Corporate Communication | Public Relations by Joep Cornelissen

Summary

This video delves into the realm of corporate communication, highlighting its evolution from basic PR to a multifaceted function critical for stakeholder relations. It illustrates the importance of aligning corporate messaging with actions, using Barclays Bank's campaign as a case study. The video underscores the significance of maintaining a positive corporate reputation and the role of communication in shaping stakeholders' perceptions, ending with a call to action for viewers to explore more on the topic.

Takeaways

• 😀 Corporate communication is a management function that nurtures relationships with stakeholders and protects a company's reputation.
• 🏦 Barclays Bank's rebranding campaign in 2003 aimed to appear more humane, contrasting with their previous powerful and big corporation image.
• 📉 Barclays faced an image crisis due to closing branches and high CEO pay, which conflicted with their 'big ideas' campaign.
• 📈 The future of a company depends on stakeholder perception, including shareholders, investors, customers, employees, and community members.
• 📚 Corporate communication has evolved from simple PR in the 1900s to a comprehensive function that includes advertising, internal communication, and crisis management.
• 🌐 The term 'corporate communication' comes from Latin words meaning 'body' and 'forming into a body,' emphasizing a unified approach to internal and external communication.
• 🎯 The main objective of corporate communication is to establish and maintain a positive reputation with stakeholder groups.
• 📊 Corporate communication strategy involves creating a corporate identity that projects the desired image and reputation to stakeholders.
• 💡 Companies use various communication channels, including brochures, advertising, logos, and staff behavior, to transmit their corporate identity and values.
• 🔗 Stakeholders are anyone affected by or affecting the company, and good relationships with them are crucial for business success.
• 📅 The evolution of corporate communication has seen a shift from separate departments to integrated communication, positioning, and now stakeholder engagement.

Q & A

What is corporate communication?

Corporate communication is a management function that coordinates all internal and external communication to establish and maintain a company's reputation with its stakeholders.

Why is nurturing relationships with stakeholders important for organizations?

Organizations are economically and socially dependent on their stakeholders, so nurturing these relationships is crucial for their success.

What was the issue Barclays Bank faced in their communication campaign in 2003?

Barclays Bank faced an image crisis when they promoted a 'big bank' image while closing branches and disclosing high CEO pay, which led to public anger and damaged their reputation.

How did Barclays Bank attempt to manage the crisis caused by their communication missteps?

Barclays Bank extended opening hours at 80% of their branches and recruited 2,000 extra staff to improve their image, despite the cost.

What is the role of corporate communication in a company's overall strategy?

Corporate communication plays a role in protecting the company's reputation, which is key to its success, by building, maintaining, and protecting its image among stakeholders.

How has the concept of corporate communication evolved over time?

Corporate communication has evolved from separate disciplines like publicity and promotions to an integrated function focused on stakeholder engagement, positioning, and transparency.

What are the key components of corporate communication?

Key components include corporate design, advertising, internal communication, issues and crisis management, media relations, investor relations, change communication, and public affairs.

Why is corporate identity important in corporate communication?

Corporate identity is important as it represents the basic profile an organization wants to project to its stakeholders and helps in building a consistent image and reputation.

What does the term 'corporate mission' mean in the context of corporate communication?

The corporate mission is a general expression of the overriding purpose of the organization, often answering the question 'what business are we in?' and aligning with its values and stakeholder expectations.

How does corporate communication aim to influence stakeholders?

Corporate communication aims to build a favorable relationship and image with stakeholders, leading to customer loyalty and support for the organization.

What is the difference between corporate communication, business communication, and management communication?

Corporate communication focuses on the organization as a whole and its representation to stakeholders, while business and management communication focus on practical skills like writing and presenting for individual managers and professionals.

Outlines

00:00

🗣️ Corporate Communication Overview

The paragraph introduces corporate communication as a critical management function for nurturing relationships with stakeholders. It uses the example of Barclays Bank's advertising campaign to illustrate the challenges of maintaining a positive corporate image amidst controversial decisions like branch closures and high executive pay. The narrative emphasizes the importance of aligning corporate communication with the company's reputation and stakeholders' expectations.

05:00

📈 Evolution of Corporate Communication

This section traces the development of corporate communication from the early 1900s to the 1970s, highlighting the transition from public relations to a more comprehensive approach. It discusses how companies evolved from viewing communication solely as media interaction to recognizing the need for a dedicated corporate communication function that includes publicity, promotions, information dissemination, and more. The paragraph also touches on the importance of corporate identity and the various elements companies use to communicate their identity to stakeholders.

10:02

🌟 Corporate Communication Strategies

The paragraph delves into the strategic aspects of corporate communication, explaining key terms like corporate mission, vision, objectives, and strategies. It outlines the importance of these elements in shaping a company's direction and how they are communicated to stakeholders. The focus is on building a favorable corporate identity and reputation through various communication channels, including advertising, logos, and staff behavior. The aim is to create a positive image that encourages stakeholders to support and engage with the company.

15:04

🔄 The Modern Landscape of Corporate Communication

This section discusses the modern approach to corporate communication, emphasizing stakeholder engagement, transparency, and authenticity. It notes the shift from one-way communication to a more interactive dialogue enabled by technology. Companies are now expected to respond to stakeholders' communications and integrate themselves into stakeholders' lives. The paragraph concludes with a case study of Barclays Bank's efforts to manage a reputation crisis, underscoring the difficulty of repairing corporate reputation once it's damaged.

🎓 Learning More About Corporate Communication

The final paragraph serves as a call to action for viewers to learn more about corporate communication. It directs viewers to additional resources, such as videos on marketing and corporate communication, and encourages support for the content creator through likes, subscriptions, and comments. The creator also provides a link for viewers to support them financially.

Keywords

💡Corporate Communication

Corporate communication refers to the management function that coordinates all internal and external communication with the aim of establishing and maintaining a company's reputation among various stakeholder groups. In the video, this concept is central as it discusses how companies like Barclays Bank must manage their communication to nurture relationships with stakeholders and protect their reputation.

💡Stakeholders

Stakeholders are individuals or groups who have an interest or stake in a company, including shareholders, customers, employees, and the community. The video emphasizes the importance of corporate communication in nurturing relationships with stakeholders, as they are economically and socially dependent on these groups.

💡Reputation Management

Reputation management is the process of shaping and maintaining a company's public image and perception. The video discusses how corporate communication practitioners work to build, maintain, and protect a company's reputation, which is crucial for the success and survival of the organization.

💡Advertising Campaign

An advertising campaign is a series of advertisements intended to achieve specific marketing objectives. The video mentions Barclays Bank's decision to appoint a new advertising agency to create a more 'humane' campaign, illustrating the role of advertising in corporate communication.

💡Image Crisis

An image crisis occurs when a company's public image is severely damaged, often due to negative publicity or controversial actions. The video describes how Barclays Bank faced an image crisis after closing branches and disclosing the CEO's high salary, which contradicted their advertising message.

💡Internal Communication

Internal communication refers to the flow of information within an organization, among its employees. The video implies that effective internal communication is part of corporate communication, as it helps align employees with the company's mission and objectives.

💡Public Relations (PR)

Public relations is a strategic communication method that builds and maintains a good relationship between an organization and the public. The video traces the evolution of corporate communication from its early focus on PR, which was primarily about media relations, to a more comprehensive approach.

💡Corporate Identity

Corporate identity is the set of characteristics that define and differentiate a company. The video explains that corporate communication aims to build and project a corporate identity that aligns with the company's values and desired reputation among stakeholders.

💡Transparency

Transparency in corporate communication means being open and honest about a company's actions, policies, and direction. The video discusses how modern corporate communication emphasizes transparency and authenticity to build trust with stakeholders.

💡Stakeholder Engagement

Stakeholder engagement is the process of involving stakeholders in dialogue and decision-making. The video highlights that current corporate communication strategies focus on engaging stakeholders to foster loyalty and advocacy, moving beyond one-way communication.

💡Authenticity

Authenticity in communication means being genuine and true to one's identity and values. The video stresses that companies must communicate authentically about their actions and vision to build credibility and trust with stakeholders.

Highlights

Introduction to corporate communication and its importance

The necessity for organizations to nurture relationships with stakeholders

Corporate communication as a management function developed in 2003

Case study of Barclays Bank's advertising campaign and image crisis

The impact of closing branches on Barclays Bank's reputation

The controversy over the CEO's high salary at Barclays Bank

The role of corporate communication in protecting company reputation

Evolution of corporate communication from the early 1900s to 1970s

Definition of corporate communication as a combination of various disciplines

Importance of corporate identity and reputation in communication

The concept of corporate mission, vision, and objectives

How corporate communication strategy is key to building corporate identity

The shift from traditional PR to integrated corporate communication

The empowerment of stakeholders through media technologies

The current state of corporate communication focusing on stakeholder engagement

The importance of transparency and authenticity in corporate communication

The challenge of repairing a damaged corporate reputation

Encouragement to learn more about corporate communication

Transcripts

hello communication enthusiasts and welcome  to this video if you want to find out more  

about what corporate communication is  we will talk about it in the following  

minutes so watch the video and continue  learning about corporate communication

all organizations must find successful ways to  nurture the relationships with the stakeholders  

they have and they are economically and social  dependent upon so the corporate communication  

was developed as the management function  that takes care of this business in 2003  

Barclays a UK based Bank decided to appoint a  new advertising agency so they wanted to have  

a new communication campaign we would say today it  was inspired to have a more Humane campaign after  

the early years the bank promoted itself as a big  world needs a big bank so they had such an image  

of a powerful and big corporation that acted as a  bank unfortunately the AdWords had good publicity  

so this was the good side but the bank decided to  close 170 branches within the UK so their message  

was promoting the importance of big chasing ideas  and Ambitions meanwhile they were closing down 117  

branches the image crisis got even worse after  the bank disclosed that the CEO was paid 1.3  

million pounds for just three months of work you  can imagine how that was for their customers well  

many people were angry with the bank and the  situation was aggravated even more when they  

come out when they came out with a statement they  said that we are an economic Enterprise we have  

obligations to conduct business in such a way that  it provides returns for the owners of the business  

and we will continue to take value maximizing  decisions we're out sentimentally excuses you  

can imagine how their message was there is  a widespread belief in the management world  

that the future of any company this depends  on how it is viewed by stakeholders such as  

shareholders investors customers and and consumers  employees and the members of the community within  

they operate corporate communication is important  because the main and the most important objective  

of a company is to protect its reputation and  the corporate communication practitioners do is  

to build to maintain and to protect the company  reputation let's have a look of how Corporate  

communication developed itself starting from the  early 1900s up until the 1970s so at the beginning  

in 1970 people used to think of the term public  relations it is also known as PR you've probably  

heard about PR and they use that to describe  the communication with the stakeholders and  

back then all the communication of a company was  seen as the communication with the Press with the  

media so nothing about people nothing about  the stakeholders just the communication with  

the Press with the time stakeholders internal  and external to the company started to demand  

more and more information from all companies they  were interacted with so therefore companies took  

into account and developed a new function of the  corporations with a whole range of specialized  

disciplines so they included or publicity  promotions information and dissemination these  

were all ranged all disciplines that were further  on involves in corporate communication as we will  

see so we can Define that corporate communication  as a corporate design corporate advertising  

internal communication to the employees issues  and crisis management media relations investor  

relations change communication and public affairs  these are all functions that were Incorporated  

under the name of corporate communication and  in the end it means how an organization presents  

itself to all its key stakeholders both internal  and external let's see actually how the metaphor  

of corporate communication was formed so corporate  communication started with the Latin words Corpus  

which means body and corporate which means  forming into a body which emphasizes a unified  

way of looking at internal and external  communication disciplines you can look  

at corporate communication like the management  of media relations public affairs and internal  

Communications if we would have to provide a  very fancy and clear definition of what corporate  

communication is well this is it corporate  communication is a management function that  

offers a framework for the effective coordination  of all internal and external communication with  

the overall purpose of establishing and  maintaining several reputations with the  

stakeholder groups upon which the organization is  dependent every company has to create for itself  

find direction towards the they go to so therefore  we have the following key terms corporate Mission  

Vision objective strategies identity and many  others if you don't know about them we will  

go into which one of them if you don't like to  watch an ad length video such as this one in the  

description below and in the links up here you  will find shorter videos that Define all these  

Concepts you can watch them or you can watch the  following video as it goes so the mission of a  

company is a general expression of the overriding  purpose of the organization which ideally is in  

line with its values and with the expectations of  major stakeholders and concerned with the scope  

and boundaries of the organization it offer  it often answers what business are we in the  

vision of a company is the desired future state  of the organization it is an aspirational view  

of the general direction that the organization  wants to go in objectives are more precise so  

with Define objectives as short-term statements  of Direction in line with the formulated Vision  

which are to be achieved by strategies so  following on we will Define the strategies  

which are actions and Communications that are  linked to objectives and are often specified in  

terms of specific organizational functions  such as Finance Human Resources operations  

Etc the key to having a corporate communication  strategy is to build and the notion of corporate  

identity so going on the corporate identity is  the basic profile that an organization wants  

to project to all its important stakeholder  groups and how it aims to be known by these  

various groups in terms of corporate image and  reputation to achieve all these companies need  

to go at Broad with their communication they have  to do massive efforts in communication in order  

to cover brochures for where advertising logos  tones that they use on their website colors logos  

so everything they communicate through including  their service what they staff say how their staff  

behaves these are all messages that the corporate  communication uses in order to transmit one main  

message that they want to build their identity  with so through their identity they transmit you  

their values and how they are and how they want  to be seen by you the consumer and hopefully the  

customer corporate communication is geared towards  building and having a favorite relationship and  

a favorite image in the eyes of the important  stakeholders so they want to have a good image  

and reputation with all the stakeholders  groups that are important to the success of  

the organization basically what they say is that  the stakeholders are everybody who is affected  

and who affect the company so they want to have  good relationships with these people with these  

groups of people so they can have a successful  business of course so in other words companies  

that have a favorable reputation and image in the  eyes of their stakeholders will hopefully lead to  

its customers to purchase products and services  they know that the members of the community will  

appreciate the organization and in its environment  and there is one more aspect we need to talk about  

there is a big difference between Concepts such as  corporate Communication business communication and  

management communication the difference between  these Concepts is that the corporate communication  

focuses on organization as a whole so and the  end important tasks and how an organization  

is represented to its key stakeholders in the  same time business communication and management  

communication focus more on practical skills  such as writing such as presenting and they  

look towards individual managers and professionals  so going on with our corporate communication and  

how it was created let's say the history at the  beginning of 1970 we had this concept publicity  

promotions information and dissemination and  what this means is that in a company everything  

was separated they had individual departments that  were taking care of all these aspects and at that  

time Specialties such as media relationships  advertising sales and promotions and product  

publicity were separated within the company in  1980s they realized that this fragmentation of  

all these departments were also spreading  responsibility because if something was not  

working well well you had to ask the responsible  of that department and they were through the blame  

on another department so this was going against  them this was counterproductive and the companies  

realized that this is why going with the time  in 1980s to 2000 we had positioning so this  

means that the companies some of them not all of  them back at that time the developed procedures  

guidelines manuals and some integrated aspects  that they integrated all these departments into  

one and that department was called corporate  Communication in 1990 the companies realized  

that by communicating with the stakeholders they  can talk about positioning so positioning right  

here is about how a company is positioned in the  mind of their stakeholders and remember that all  

companies want to have a favorable position in the  mind of the stakeholders because if you see the  

company in a good way then you will become their  customer and continue buying and contribute to  

the SEC to the success of the company so they  were talking about positioning in the mind of  

the stakeholder in 1990. what happened in the  recent years is that stakeholders so you you  

the customer you're the consumer and everybody  around the company so not just the consumers  

such as suppliers investors share shareholders  all of these they started to interact more  

with the companies and this means that they were  empowered by the media Technologies so nowadays  

you can reach a company you can DM on their social  media you can write on their website you can call  

them you can interact with the company and you  can have a dialogue with them in this view the  

current state of corporate communication is how  organizations communicate with their stakeholders  

so they realize this fact and they realize  they have a discipline and a responsibility  

to communicate back with the stakeholders as a  response to your first communication and not only  

this is why in 2000 and up till present you have  stakeholder engagement so what companies want you  

to do nowadays is they want you to engage they  want to engage you with their company so you  

become an advocate so you represent the company  you recommend it to your friends you can continue  

buying from them and you also have integrativity  so you integrate them you integrate them in your  

life because companies want to become part of your  life and you they want you to think about them if  

it's possible every second so you remain their  customer and then they came up with the idea of  

transparency and authenticity they realize that  nowadays corporate Communications it's not only  

about promoting their services that it was in 1970  they realize that corporate communication is not  

only about positioning themselves favorably in  your mind and now they realize that they have to  

cooperate communicate so they have to communicate  with you transparent in an authentic manner about  

what it is that they do so about their actions  and about their Direction and about their Vision  

as a company which were previously only for  themselves so they were not disclosing this  

kind of information the focus of the engagement  is not only shaping opinions and perceptions but  

an organizational being transparent and acting in  their character to bring its distinctive identity  

so they want to Foster individuals to become  genuine advocates in and act in their favor  

this is how Corporate communication was developed  starting from 1900s as separate disciplines within  

a company they became integrated under the mission  of positioning themselves favorably in the mind of  

the stakeholders and nowadays from starting from  2000s to present now they want to do engagement  

with the stakeholders so this is basically  corporate Communication in a nutshell going  

on after all the disastrous announcements made by  Barclays Bank the Barclays Bank in UK in order to  

manage the crisis that they had they extended the  opening hours at 80 percent of their are branches  

so they recruited 2 000 extra stuff and actually  ended to cost them more than they reduced in order  

to have a favorable image in your mind however  once damage the company reputation it's very  

hardly to be healed and repaired in the mind of  the customers this is why you should learn about  

corporate communication because once damage the  corporate reputation is very hard to repair once  

damaged you will have to do a lot of communication  a lot of advertising a lot of branding so you can  

get in the mind of the customers and change the  positioning of your company there so you have  

to learn about corporate communication thank you  for watching the video if you want to learn more  

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