CORPORATE COMMUNICATION TOOLS

Dr. SUNILDRO L.S. AKOIJAM

Assistant Professor
Department of Management
North Eastern Hill University
Introduction
 These tools are designed and used to conduct
corporate communication with various stakeholders
of the company.
 They provide better quality collaboration that
makes this business strategy a success.
 These tools ensure that right stakeholders are
communicated with right information at right time
 Lobbying
 Any attempt to influence legislation through communication with: (i) Any
member or employee of a legislative body, or (ii) any government official or
employee (other than a member or employee of a legislative body) who may
participate in the formulation of the legislation, but only if the principal
purpose of the communication is to influence legislation.

 A communication with a legislator or government official will be treated as a

direct lobbying communication, if, but only if, the communication: (i) refers to
specific legislation, and (ii) reflects a view on such legislation.
 Lobbying
 It aims to influence the decision making of governments with
regards to specific legislation or other governmental activities
that can affect an organization.
 The stewardship theory views lobbying as an inherent part of
firm strategy.
 Under this theory, lobbying expenditure is considered an outlay
with a high return on investment (ROI).
 Lobbying
 Lobbying could be an effective means to help firms stay informed
of regulatory agenda, obtain political information to adjust their
business decisions in a timely fashion, and to encourage
(discourage) those regulatory decisions that are beneficial
(detrimental) to a firm when possible.
 Since lobbying strategies are implemented by managers who
may be driven by their own political philosophy or interest,
lobbying can sometimes be detrimental to shareholder value.
 Lobbying
 Specifically, managers may divert corporate resources
directly to strengthen their own political connections through
lobbying activities without bringing tangible benefits to the
firm.
 Lobbying could also lead to negative consequences for a
firm if instead of using corporate resources for developing
new growth opportunities, managers overly focus on
complex, uncertain political processes that could stretch for
long periods of time and generate negative public
attention.
Sponsorship
 The concept of sponsorship has evolved over the
years from simply being a philanthropic activity to
one of the key corporate communication and
marketing communications strategy.
 This can merely be seen by looking at the
expenditure of multinational corporations’ allocated
budget figures for sponsorships.
Sponsorship
 The corporate communication managers make the
key decisions on how to decide and promote their
sponsorship event in order to influence their target
audiences or more precisely stakeholders.
 Sponsorship offers unlimited benefits to create a
desired image of the corporate brand in emerging
markets.
Sponsorship
 Integrating sponsorships with other elements of the
communications mix create a synergic effect. So, to
create a successful effectiveness, sponsorship must
not be treated in isolation
 Financial Communication
 Financial communication is an extremely important instrument
that allows the economic entity to manage its external relations
by the means of financial and accounting information.
 It is all about creation of an interconnection with the external
environment by providing the information requested by
interested stakeholders.
 The purpose of this form of communication is to support and
above all to strengthen the company's stock market value and
prospects, but also its credibility to shareholders and investors.
 Financial Communication
 It is a competitive confrontation field, where the company
convinces investors to buy its shares rather than those of its
competitors. It is all about creation of an interconnection with the
external environment by providing the information requested by
interested stakeholders.
 A good image, from this point of view, helps the entity obtain
easier a bank loan and other various funding, attract investors
and eventually determine the entity's shares to be sold at the
highest price
 Corporate Reputation
 “Corporate reputations are overall assessments of
organizations by their stakeholders.
 They are aggregate perceptions by stakeholders of
an organization’s ability to fulfill their expectations,
whether these stakeholders are interested in buying
the company’s products, working for the company, or
investing in the company’s shares.”
 Corporate Reputation
 Reputation management is often inadequate for today’s
information age and describes the new methods to
protect a reputation and withstand major crises and
unforeseen events.
 Corporate reputation is created by a combination of
elements within the organization such as general
business management, financial management, corporate
marketing and corporate communication,
Corporate Identity
 Corporate identity is the reality and uniqueness of an
organization which is integrally related to its external
and internal image and reputation through corporate
communication.

 It is through the corporate identity that stakeholders

perceive the company’s identity and image and
reputation are formed.
Corporate Identity
 A corporate identity requires planning, should
include the whole company, and will require both
time and financial effort.
 At the same time, the corporate identity should
express the company’s self-image through the
guidelines and values that run through all areas of
the business.