No matter how big your business is, there are bound to be corporate communications policy problems. And when this happens, all processes begin to collapse.
What Is Corporate Communications?
Corporate communications is a management function or department (e.g. marketing, finance) or operations designed to disseminate information to key groups, follow corporate strategy, and create messages for various areas of the organization. Essentially, it is the “corporate consciousness” that is responsible for building and maintaining the company’s reputation. The department oversees communications strategy, branding, internal/employee communications, organizational identity, responsibility, reputation, crisis communications, investor relations, and public relations.
Decreased trust and widespread public criticism put the problem of ensuring the reputational safety of business on the “agenda”. Reputation and trust are recognized as intangible assets necessary for the successful operation of a company in the modern world. They help to attract investments and enter new markets, increase competitiveness, and will have an impact on the value of a business if it is sold. Development of the necessary technical standards to support the global interoperability of corporate communication policy and equip assets with the technology of cyber-physical systems that combine the real world of equipment and products with virtual space to solve technological problems.
Corporate governance as a system of corporate communications policy and control of an organization in accordance with the principles and best practices in this area aims to find a way to distribute powers and responsibilities among shareholders, directors, and management. In other words, the search for a balance, as well as tools for balancing various decision-making and control factors for shareholders and other stakeholders. As a leader, you need to turn your department into a self-operating machine and as the main executive mechanisms, you have at your disposal willful, fickle, and unstable employees.
Why Is It Important to Manage External Communication Policy?
It may also be noted that, due to the role that corporate governance plays in capital formation, it is essential for economic efficiency and growth. An effective corporate governance system establishes principles and norms that force managers of companies to ensure maximum profitability. With the worldwide trend towards private sector expansion and the emergence of more competitive market economies, good corporate governance is seen as a key tool for external communication policy to reap real economic benefits from the ongoing radical economic transformation.
Corporate governance also has a variety of international implications:
- One of the reasons why opponents of “globalization” oppose multinational corporations – the main driving force of the globalization process – is those imperfect systems of corporate governance allow decisions to be made in the interests of managers and shareholders without considering the interests of all “stakeholders.”
- The serious international economic disputes, such as disputes within the European Union over the exclusion of state-controlled public utilities from takeovers.
- In addition, they cover not only the internal structure of the company, but also the external environment of its operations, including capital and labor markets, bankruptcy systems, and government competition policy.
- The task of creating a complete set of knowledge for profitable business management is becoming more and more insurmountable. And even if such a system of knowledge is created, its study and practical use may become even more difficult.
- Discussion of corporate governance issues practically concerns only public companies, since it is in them that corporate governance deficiencies lead to the most serious and profound consequences for the economies of the respective countries.