Module 3
Functions of corporate
communication and public relation
Media Relations
Public relations would be successful only if the professionals learn to work in co-ordination with
the media.
Media relations can be described as a company’s interactions with editors, reporters and
journalists.
Importance of media relations:- The media will find and follow up stories whether an
organisation likes it or not therefore the communication executive should develop good relations
with them.
• It enables the organisation to get its message multiplied.
• It will lend wings to the reach of the organisation.
• It will be the mouth piece of your voice.
• Business personnel can showcase their expertise.
• It enables corporation to communicate the culture and persona of a complex organisation
• Positive news coverage offers higher credibility as compared to paid advertising
• The cost of coverage in media is lower in comparison to the advertising cost.
• Third party endorsement is a good idea to establish the reputation of the organisation.
• Business need to maintain long term relationships with the media professionals so that they are
able to bag advantages in the future.
• Business should share exciting happening news to please their audience.
Sources of media information
• Population Census
• Annual Economic Survey
• India- Year Book
• INFA
• Audit Bureau of Circulation
• TAM Media Research
• Indian National Television Audience Measurement (INTAM)
• CMIE
• Capitaline
• [Link]
• CRISIL INFAC
Building effective media relations
Media relations is all about creating the right connection to enhance the overall image of a
brand or business. Some steps that can help build effective media relations :
1. Polish your pitch
2. Find the news angle
3. Know which journalist to contact
4. Find media contacts looking for you
5. Reach out on social media
6. Send personalized, targeted emails
7. Connect on social media
8. Share all the information
9. Be honest
10. Learn how to be quotable
11. Be timely
12. Be accessible
13. Offer exclusives
14. Show personality
15. Provide photos
The top 5 “Don’ts” when it comes to media relationships
1. Don’t complain in public if a story did not get the spin you hoped
for or if you are misquoted.
2. Don’t add media contacts to your company news letter.
3. Do not befriend media contacts on Facebook.
4. Don’t be too aggressive with your follow up.
5. Don’t expect that the reporter has to run your story.
Employee communication
If employees are a precious organizational resource they must be listened to
in the same way that other audiences are heard.
Sources of employee communications:
Formal sources-
• Cell phones
• Emails
• Instant messaging
• Meetings
• Workshops / conferences
• Teleseminars and webinars
• Exclusive case studies and articles
• Newsletters with insight into the latest trends and section news
Informal sources
• Family gatherings
• Picnics
• Interactive gaming
• Podcasting
• Online discussion forum
• Members- only directory
• Linkedin
• Facebook
• Twitter
• Blogging
Organizing employee communications
1. Be clear and concise
2. Set the tone at the top
3. Have a clear vision and goal
4. Understand your employees
5. Display passion for company
6. Use many channels
7. Notify employees first
8. Match actions with words
9. Emphasize face to face communication
10. Communicate regularly
11. Measure effectiveness
12. Facilitate conversation
Benefits of good employee communications
Communicating with your employees is central to managing your workforce.
1. Engaged employees
2. Ensures consistency
3. Promotes two way feedback
4. Ensures compliance with regulatory bodies
5. Ensure common understanding of strategy and goals
6. Promotes positive attitudes toward change
7. Increases productivity
8. Improves identification
9. Increases employee satisfaction
10. Increases customer satisfaction
Role of management in employee communications
Crisis communication
A crisis is a major unpredictable event that has potentially negative results,
according to Holsti “a crisis is a situation characterized by surprise and high
threat to important values, it has a short decision time. According to business
dictionary crisis communication is defined as “the effort taken by a company
to communicate with the public and stock holders when an unexpected event
occurs that could have a negative impact on the company’s reputation.
Crisis can be divided into different phases. The communicator can anticipate
the information needs of the media, stakeholders and the general public.
Phases of crisis communication
1. Pre crisis phases :-
communication objectives-
➢ Be prepared
➢ Foster alliances
➢ Develop consensus recommendations
➢ Test messages
2. Initial phase
communication objectives-
➢ Acknowledge the event with empathy
➢ Explain and inform the public
➢ Establish spokesperson credibility
➢ Provide emergency courses of action
➢ Commit to stake holders to continued communication
3. Crisis maintenance
Communication objectives –
➢ Help people more accurately understand their own risks
➢ Provide background and encompassing information to those who need it
➢ Gain understanding and support
➢ Listen to stake holders and correct misinformation
➢ Explain emergency recommendations
➢ Empower risk / benefit decision making
4. Resolution
Communication objectives –
➢ Improve appropriate public response
➢ Honestly examine problems and mishaps
➢ Persuade the public to support public policy and resource allocation
➢ Promote the activities and capabilities of the organization
5. Evaluation
When the crisis is over, evaluate communication plan and determine specific actions to improve the
crisis plan
Impact of crisis
A crisis may contain a high degree of threat to life, safety or to the existence of the organization and
that it contains elements of the unexpected.
Impact of the crisis can be seen in the form of negative effects of traumatic stress disorder in a
disaster situation
• Emotional effects
• Cognitive effects
• Physical effects
• Interpersonal effects
In fact the impact of crisis on people is seen at the following three phases of a crisis
1. Initial phase – during the stage of acute danger, the priority for all is basic safety and survival
2. Maintenance phase – during the early part of this phase people may be perceived as elated
because of relief over their own survival
3. Resolution phase- emotional symptoms may present
Role of communication in crisis
Crisis and emergency risk communication is a vital component to
people help cope and begin to rebuild a sense of order and
understanding in their lives. The following principles should be
followed during each phase of a crisis :
1. Pre crisis phase :-
• Stop trying to allay panic
• Emphasize that there is a process in place
2. Initial phase :-
• Don’t over reassure
• Acknowledge uncertainty
• Emphasize that a process is in place to learn more
• Stop trying to allay panic
3. Maintenance phase :-
• Acknowledge fears
• Express wishes
• Give people things to do
• Acknowledge the shared misery
• Give anticipatory guidance
• At some point be willing to address the ‘what if’ questions
• Be a role model and ask more of people
4. Resolution phase :-
• Be regretful, not defensive
• Express wishes
Guidelines for handling crisis
1. Take control
2. Analyze case studies
3. Respect the role of the media
4. Create a crisis team with the CEO in the lead and prepare a plan
5. Correspond with stakeholders
Trust building
A crisis concerns the future of an organization as well as its present. When the crisis has passed, key
publics will have a revisionist view of the organization. Rebuilding trust is extremely important. On
the basis of the analysis four broad steps emerges :-
1. Be in control of the situation
2. Address crisis openly and trust your clients
3. Investigate the cause of the crisis
4. Commit to change
Certain basis tenets that help in building trust are :-
1. Empathy and care
2. Competence and expertise
3. Honesty and openness
4. Commitment
5. Accountability
Financial communication
Finance is considered as the lifeblood of an organization. It is very important to
communicate with the finance dept and involve it at each stage by sharing all strategic
information through a proper communication system.
Financial communication is defined as the sum of the relations with the providers, clients,
employees, thirds, with the bodies competent in the economic field and also with the press.
Financial communication is all about providing financial data pertaining to the companies
performance to the investor community at large . Financial communication is a branch of
public relation management and is used to build close relationships with investors, analysts
and the financial media.
Financial communication thus:
• Looks after the issues related to the public or investors
• Handles financial advertising
• Handles investor relationship management
Tracing the growth of Financial
communication in India
• The economic liberalization of 1990s brought in the FDI into many sectors
including the finance sector.
• The number of financial newspapers and magazines have also increased
tremendously.
• As the MNCs wanted to gain foothold in the country they brought with
them the PR culture.
• India scores relatively well in terms of access to finance for developing
businesses and investing in the economy.
• Global agencies like the Ogilvy and Mather opened their PR arm in the
country.
• The PR consultancies were engaged by the global corporate organizations
for giving them a hang of the situation.
Audiences for financial communication
Many management scholars suggest that financial publics have assumed
a critical importance, certainly communicating with them has become
more significant.
The financial audience maybe subdivided into:
1. Partners
2. Employees
3. Investors
4. Financial analysts
5. Share holders
Financial advertising
One of the method companies use to enhance their image in financial community, appealing
to analysts, investors and money managers is Financial advertising campaigns.
Analysts are a particular target of this type of advertising.
Given that analysts has to study hundreds of companies, a good financial campaign can
stimulate their interest and make a statement about the companies dynamism.
Studies have revealed that there is a link between corporate advertising and stock price.
Even a one point increase in the stock price can add up to tens or hundreds of millions of
dollars for large companies.
Even a slight improvement in the companies rating can have a large bond offering.
Some financial advertisers also assert that some campaigns can actually increase the price
of the companies stock.