Corporate Communications

Corporate communications the creation and presentation of a company's overall image to its employees and to the public at large

Corporate communications involves the creation and presentation of a company’s overall image to its employees and to the public at large. Employers believe that, if their workers share an understanding of company goals and activities, they will be both more satisfied with their jobs and more productive. Executives also want members of the public to believe that the company is a good corporate citizen, as that image might encourage purchases and help the firm get favorable treatment from local, state, and federal governments.

In many companies, a PR firm works in conjunction with human resources departments to carry out employee-relations tasks. These companies provide their area emphasize that all forms of interaction between a firm’s leadership and a sense of purpose. Some organizations with widely dispersed divisions even produce news programs just for employees that are sent via satellite to offices around the world.

The other side of corporate communications involves management's concern with the images of the company that are held by consumers. Even the largest companies often hire an outside public relations firm to help with their public image. Let’s say that an automobile manufacturer wants to spread the notion that it is a technologically advanced, yet socially responsible company. PR counselors might suggest a number of activities that taken together would create that image in people’s heads.

The PR company might create a booklet about the auto manufacturer’s recent technological achievements that dealers can distribute. PR counselors might help the firm sponsor a solar-car race on college campuses. They might send the company’s engineers to speak to reporters from around the country about the firm’s cutting-edge work. PR specialists in digital communication may track the discussion of the firm on the Web and try to present responses on blogs, or videos on places such as YouTube, that position the firm in a positive light. Given a high enough budget, the company might even create a movie that explains scientific innovations relating to the car for science museums. Although such a film must be carefully positioned as a science film and not an ad, it can nevertheless associate the PR agency's client with innovations by showing its name a few times during the film as well as in the sponsorship credits.

Financial Communications

Financial communications helping a client’s interactions with lenders, shareholders, and stock market regulators proceed smoothly

Financial communications involves helping a client's interactions with lenders, shareholders, and stock market regulators proceed smoothly. Sometimes the activities center around a particular client initiative. In 1995, for example, IBM turned to the financial PR firm Sard Verbinnen to support its attempt to buy Lotus Develop­ment Company. Lotus officials initially rebuffed the offer and characterized it as an unfriendly takeover attempt. IBM’s public relations goal was to get out to government regulators, investors, and Lotus employees its position that folding Lotus into IBM would help both companies. They succeeded.

Financial communications work that is more typical than such one-shot initiatives revolves around top executives’ need to keep investors' interest in their company's stock high. A low share price can make it tougher for the company to raise capital or make acquisitions, since sometimes payment is made in stock. Also, lenders and new investors judge a company at least in part by the performance of its stock.

The goal of a PR firm's financial communications specialists is to design a program that helps the firm communicate its value to its target audience. The nature of this communication program will depend on the specialists analysis of the firm s' g among investors. The specialists look at such factors as the company's size, history, financial record, industry identification, national or international scope, stock distribution, past communication efforts, and stock market recognition.

The idea is to shape a message about the company that is enthusiastic, yet which falls within Securities and Exchange Commission guidelines that forbid misleading statements. Here are some of the types of work that a PR firm carries out to maximize a client's attractiveness to investors:

• It prepares corporate and financial documents (such as annual reports) and financial fact books. Well-done photo layouts and well-turned phrases can make investors proud of their firm.

• It prepares company news releases and arranges interviews with financial journalists. When journalists, especially financial journalists, write seriously and positively about the firm, investors pay favorable attention to it.

• It coordinates shareholder meetings. A poorly run shareholder meeting can reflect badly on the ability of management to get a job done.

• It plans and arranges seminars, tours, and meetings with security analysts, portfolio managers, brokers, and professional investors. These events can help increase the visibility of the firm among the opinion leaders of the Wall Street community.