Corporate Communication vs. Public Relations
Part 1: What is Corporate Communication? (The Big Picture)
Corporate Communication is the set of all activities a company uses to manage and coordinate its communications. It is a strategic function that aims to send a cohesive and consistent message to all stakeholders (people who depend on the company).
The main goal is to create a favorable point of view, explain the company’s mission, and build credibility and trust.
This includes two main types of communication:
Internal Communication: How the company communicates with its own employees, executives, and shareholders. This is done through memos, e-mails, and internal newsletters.
External Communication: How the company communicates with the outside world. This includes customers, vendors, government agencies, and the general public, using tools like reports, websites, and press releases.
The Scope of Corporate Communication
The “scope” of corporate communication is what it tries to achieve:
Create an Identity: To build a clear identity for the organization, like the ones Tata or Reliance have as companies for “their people.”
Build a Brand: To balance the pride of internal audiences (like employees) with the needs of external audiences (like customers) to grow the brand.
Manage Reputation: In an age of fast-spreading rumors, a key job is to manage and protect the organization’s reputation and prestige.
Develop a Communication Model: To create a long-run communication strategy so the organization is not isolated and can connect with its people.
The 7 Key Components of Corporate Communication
Corporate Communication is a large function made up of several key parts:
Corporate Branding: This is the visual identity of the company (logo, symbols, colors) and the “brand” that unites all products under a single name.
Internal Communications: Keeping all employees in the loop about new products, policy changes, or company events. This is done through memos, emails, and newsletters.
Customer Communications: This often overlaps with marketing. It includes creating customer-focused materials like brochures, social media posts, and flyers.
Media Relations: This involves all communication with the press (journalists, news outlets). It includes organizing press conferences and sending out press releases.
Investor Relations (IR): A specialized field focused on keeping financial stakeholders (shareholders, angel investors) happy and confident in their investment.
Crisis Communications: This is a plan for handling any unforeseen event that could damage the company’s reputation (e.g., a workplace accident, a product recall).
Corporate Identity & Reputation: “Identity” is the features the company feels are unique to it. “Reputation” is the perception stakeholders have of the company. The communications team works to make sure these two align.
Part 2: What is Public Relations (PR)? (A Key Component)
Public Relations (PR) is a specific function that exists within the larger umbrella of Corporate Communication.
The main goal of PR is to protect and enhance the reputation of a company or individual. It is the practice of maintaining a healthy, two-way relationship between an organization and its “public” (which includes the media, customers, and the community).
8 Types of Public Relations
PR is a specialized field with many different roles:
Media Relations: This is the most well-known part of PR. It involves dealing with the media (press releases, interviews) to generate positive, free coverage for the company.
Community Relations: Working to develop a strong, positive relationship with the local community. This can involve getting local support for a new project or “giving back” to improve the company’s ethical image.
Corporate & Social Responsibility (CSR): A specific type of PR that focuses on improving the company’s reputation for being ethical, environmentally responsible, and a good corporate citizen.
Public Affairs (Lobbying): This is all about getting the government on your side. It involves convincing ministers or regulators to support a change in legislation that benefits the company.
Crisis Management: This is the PR you need when a disaster strikes (a faulty product, an oil spill, a CEO is arrested). The goal is to deal with the situation quickly to protect the company’s reputation.
Social Media: This is a modern form of PR. It’s a place where a company’s interactions with a single customer are visible to the whole world. It can be used for marketing, building a brand “voice,” or making public apologies.
Employee Relations (Internal PR): This is the business of giving employees a positive view of the company they work for. The goal is to keep them satisfied, motivated, and loyal.
Integrated Marketing & Communications (IMC): This is a strategy to ensure that all communications (from advertising to media relations to internal memos) provide a consistent message that serves the company’s overall strategy.
9 Key Tools Used in Public Relations
PR professionals use many tools to get their message out:
Press Releases: A short, compelling news story sent to journalists.
Press Kits: A folder of information (company history, executive bios) given to the media.
Newsletters: Regular publications distributed to a target audience.
Media Tours: Key people from the company travel to different cities to be interviewed and promote a product.
Events & Functions: Organizing parties, gatherings, or press conferences to promote the brand.
Speaking Engagements: Arranging for company executives to speak at seminars and events.
Advertisements & Brochures: Creating paid media to correctly position the brand.
CSR Activities: Using charity or community work to build a positive image.
Loyalty Schemes: Creating membership cards or premium clubs to retain customers.
Part 3: Corporate Communication vs. Public Relations (The Key Difference)
It is very common for BBA and MBA students to be confused by these two terms. They are very similar, and their functions often overlap.
Here is the simplest way to understand the difference:
Corporate Communication is the broad umbrella that manages all of a company’s communications (internal, external, financial, etc.). The Head of Corporate Communication is the top dog who oversees the entire strategy.
Public Relations (PR) is a specific function under that umbrella. The PR team’s primary focus is on the public and the media.
Think of Corporate Communication as the entire orchestra. Public Relations is the violin section—a very important and visible part, but still just one part of the whole. Investor Relations, Internal Comms, and Corporate Branding are the other sections, and the “Head of Corporate Comms” is the conductor making sure they all play in harmony.
Example: A Company Crisis
Imagine a news story breaks that a senior executive was caught harassing an employee. This is a crisis.
The Corporate Communication team and the Public Relations team must be on the same page and craft a common, consistent message.
The Public Relations team will handle the external message. They will field questions from reporters, write the official press release, and manage the company’s social media.
The Corporate Communication team will handle the internal message. They will write a memo to all employees, explaining what happened, that it is being dealt with, and that the company is committed to a safe workplace.
Both functions are crucial, but they are speaking to different audiences.
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