Definition and Function of Corporate Communication (Corporate Communication)

Communication Company or Corporate Communication ( Corporate Communication ) is one type of communication associated with the institution (institution / company), good communication into the (internal) and outgoing (external) organizations. Corporate communications have the same area as PR (Public Relations).



In the college of corporate communication becomes its own study program, for example the Corporate Communication Study Program at Paramadina University and Bakrie University with the main subjects of communication science, journalism , public relations, and advertising.

Definition of Corporate Communication

Corporate communication or corporate communication can be interpreted as a communication process in an institution or organization.

According to Business Applications , corporate communications and public relations are in the same area, both of which aim to build the institution’s reputation. However, there are actually fundamental differences between the two.

Corporate communication is a management function in a company that handles all efforts to build and maintain a positive image of the company by building effective communication internally (between management and employees and externally (between the company and other parties, such as consumers, investors, media, and government) ).

The Corporate Communication Department is an ‘umbrella’ that oversees various aspects of communication, including public relations, media relations, internal communication, investor relations, and government relations.

Public Relations is usually a sub-division that is specifically responsible for building company relations with the media.

Citing Wikipedia pages, corporate communication has the same definition as Public Relations / PR, and also performs the functions of Public Relations that we already know.

Corporate communication is a message issued by an organization or company, agency, or institution to the public. “Public”, both from internal, namely employees, stakeholders, and shareholders as well as external such as agencies, partners, media, government, industry bodies and institutions, as well as the intellectual community and the general public.

According to Cees van Riel and Charles Fombrun in Essentials Corporate Communication , corporate communication can be defined as a series of activities that are included in the management and regulation of all internal and external communications aimed at creating a favorable starting point with stakeholders, the place on which the company depends.

Corporate communication consists of the dissemination of information by an expert division within an organization, with the general goal of increasing the organization’s ability to maintain a license to operate.

Corporate Communication Function

Quoting the Annual Report , corporate communication is one of the spearheads in maintaining the image of the company and building public trust that has a positive effect on the company’s continued business.

Communication in Corporate Communication is not only for external parties, but also for internal company to build a conducive work culture and create work effectiveness so that the business can run well.

Corporate communication includes establishing relationships with the press or media, responding quickly and responsibly especially when an event occurs within the company, and taking an approach to create communication globally.

The corporate communication function also enhances the profile of the company ( corporate branding ), mobilizes internal and external support for company goals, and coordinates with international business companies, in addition to maintaining the satisfaction of  stakeholders (including shareholders and the government).

Corporate communication is responsible for preventing and resolving crises that can kill companies.

Corporate and Journalistic Communication

The study of Journalism and Corporate Communications states, the role of the media cannot be underestimated in any country. The media contributes to the economy through the development and education agenda of citizens.

Corporate communication – like the media – has an important role to play in the agenda of developing institutions or organizations. The media can influence actions, changes, and even destruction (Nkechi & Onwuka, 2013).

Journalism and corporate communication play an important role in increasing stakeholder understanding of the organization’s progress, operations and development.

The ability to use media can influence a range of problems at the national and organizational level. Journalism plays a large role in informing the public about organizational issues.

Media freedom, in this case, means the ability of the media to report positive and negative governance and economic problems.

The media is assumed to be the public eye in monitoring and reporting on government activities. The media has an educational role, an information role, and an entertainment role.

The media are community mobilization agents and active participants in directing the community development agenda.

The history of corporate communication dates back to the early 1930s during the industrial revolution. In this initial period, the need for companies to manage their growth and keep in touch with the community became a major concern for every organization.

Various organizations in the early years spent much of their time communicating with customers in terms of product promotion, sales promotion, and publicity.

The industrial revolution led to a series of industries and increased competition among companies and harsh economic factors also led to a rethinking of their new communication strategy (Cornellisen, 2004).

However, the continuing need for development in various countries led to an increase in the need for effective management of organizational activities. Activities that require good management include marketing activities and employee management activities.

The need to maintain a positive organizational image is emphasized by every company that is trying to get new customers and maintain existing customer loyalty.

By the early 1980s, the organization had fully formed the department responsible for maintaining and ensuring well-managed communication activities within the organization.

One of the challenges at the time was the difficulty in establishing the role of the company manager. The name of the communicator in most organizations, then is the public relations manager. This industry is burdened with the responsibility of managing communication, branding organizational products, and meeting general communication needs.

As competition continues to increase, organizations are forced to devise new ways to approach and maintain their corporate image. Competition led to the development of corporate communications departments in most organizations.

However, there is no clear way to distinguish the role of a company communicator from the role of public relations personnel. They all share their roles and their names differ from one organization to another.

There is no denying the fact that sales promotions and sales marketing activities are entirely dependent on company communications.

In essence, corporate communication involves all activities both external and internal with the aim of providing a clear organizational perspective to stakeholders (Argenti, 2009).

Stakeholders in this sense include employees, partners, customers and the general public.

The purpose of corporate communication in an organization is to increase credibility and ethical coherence through communication of the organization’s mission, vision and values ​​to stakeholders.

The corporate communications department in an organization is also responsible for maintaining the image of the organization.

Other tasks include creating a company profile, carrying out communication activities about decisions made by management to employees and also coordinating with national and local business companies.

The corporate communications department plays a strategic role in managing the company’s perceptions of employees, investors and the general public. The department prepares statements, interviews with the media and messages to investors and stakeholders.

The corporate communications department plays a role in making employees understand the organization’s vision, mission and values.

Unlike in the past, the effects of globalization and the need to enter new markets are the main drivers of business today. Every business has a goal to expand and explore new markets. Before businesses venture into new geographical areas, research must be carried out to assess the feasibility of business expansion.

At present, corporate / corporate communicators have been included and made part of strategic management in the organization. Their strategy in management is based on their ability to communicate effectively with the public. They are involved in providing guidance on corporate identity and reputation management.

Increasing claims from the community, government and humanitarian organizations indicate that the stakeholder perspective is one of the business standards that must be maintained.

Stakeholders’ interests if not taken care of can have a negative impact on the organization based on circumstances that may arise. Proper communication about the problem and dialogue resolution all function to overcome the problem.

Corporate communicators must have skills that can convince people to believe in whatever they say (Argenti, 2009). When dealing with investors or financial institutions, corporate communicators must convince investors that their finances will be a good goal and make their inputs profitable.

Communication cannot be achieved verbally, but must be regulated and communicated in a way that they believe is the best that can convince investors or financiers.

The history of the organization is managed effectively by the corporate communications department. The department can produce magazines that highlight the progress the organization has made for the last financial year. When organizing for stakeholder meetings, corporate communication organizes and organizes the day’s activities (Smith, 2011).

Corporate communicators can publish magazines that highlight various aspects of the organization’s progress. When these magazines appear, if given to stakeholders, they will trust the organization more and believe that their investment is profitable.

Also Read: Corporate Journalism (Corporate Journalism)

Clearly, corprate communicators (corporate communication, corporate communication) play a major role in maintaining the company’s reputation and building trust for the institution or organization.

by Abdullah Sam
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