1. Stockholders Relations
The owners of the company are the shareholders with whom the company always has to communicate about various matters. Most companies use personal visits, telephone calls, mailing and supplementary reports to keep shareholders informed, interested and satisfied. Communication with them may include reports, matters on corporate meetings,
dividend enclosures, magazines, special mailing, notices, resolutions,
minutes, periodic correspondence, financial matters, press releases etc.
Communication with the shareholders may cover many subject matters
such as :
1. Issue of share certificate;
2. Share transfer application and procedure;
3. Certificate of transfer;
4. To mobilise funds, pay dividend, interest on fixed deposits received;
5.To issue dividend warrant, proxy form, dividend coupon;
6. To issue notices, agenda of the various meetings;
7. To respond to correspondence received from them;
8. Correspondence relating to calls, forfeiture, transmission;
9. Communication on matters relating to statutory requirements etc.
10. Describing organisational problems and objectives of the company in terms of special current developments in the company’ s folder and other stockholder communication.
11. Drafting and circulating to all stockholders a transcript of highlights of the annual progress at the company’s annual meetings.
12. Giving reponse to each stockholder’s inquiry which must be prompt to create goodwill.
13. Informing by way of circulating or distributing to all shareholders occasional reprints dealing with developments vital to them.
2. General Public Relations
It is with effective communication and through appropriate media that a company maintains contacts with the public. It is the means to create and build goodwill. It also helps as a driving force to reach the public, and brings the company and the public together, linking with society in general. Maintaining external communication facilities through several media of verbal and written contacts with the public in general.
It is not possible to build a satisfactory public image for the company. The
public should be informed about various products of the company and their uses; comparative advantages, price differentials, product, after sale services and changes must be communicated promptly. Qualitative communication ensure the promotion of a positive favourable atmosphere, develops friendly and confident feelings towards the company and its product.
Audio-visual, direct mail, sales promotion, advertisements, news bulletins, annual reports, posters, hoardings and pamphlets are few of the many media used to reach the public. Public information consists of:
(a) Preparing and distributing new releases concerning the company to create public interest.
(b) Public meetings, press conferences between the company and ~
representatives of the press, radio and television. ‘
(c) To have a regular and prompt press information service and to
answer enquiries from the press and radio.
(d) Releasing periodic advertisements in the mass media circulating
throughout the country, and also in respect of certain commodities
and information to customers directly.
(e) General public communication covers personalised mass mailings to
the editors of newspaper, magazines, radio and television directors,
educational institutions, religious institutions, public relations offices,
officials and other local opinion leaders.
(t) Motion pictures are other important media for public communication
which portrays the company’s operations highlighting the economic
advantages of the company’s area of operations.
Mass media are the gateway of the company for communication with
the public. The public relations department of the company is mainly
responsible for promoting goodwill among the outside public.
3. Customer Relations
An effective system of communication should provide opportunities for customer information. The customer is the ultimate object whose satisfaction and goodwill are of the utmost importance for the success of an organisation. In carrying out the sales function of planning, the management must communicate with customers. There were times when the customer was not the central figure. But today the customer is the kingpin and sovereign of the market whose needs and satisfaction, and the winning of whose goodwill, is of prime importance in these days of
competitive setup. These must be communicated promptly. It is the communication which establishes the contacts with the customers. Customercomn1unication helps to establish a relationship with customers who buy and are the sources of products. The media used for advertisements can also be used effectively to reach the customers. It is the responsibility of communication:
1. To prepare welcome letters, personally addressed, signed by the chief executive officer to all old as well as new customers.
2. Customer information should include helpful and desirable information concerning prices, uses, after sale facilities etc.
3. Media like pamphlets and booklets printed in an attractive manner summarising the company’s product etc., are the purpose of communication.
4. Enclosing handouts, progress reports to each bill or to each correspondence mailed to customers. This acts as a repetitive reminder to the customer about the company.
5. Prompt response to all enquiries made by the customer promotes and builds confidence and goodwill. Effective written communication promotes a friendly understanding of company policies.
6. Preparing brochures and other informative folders directed to specific customer groups like fanners, small business, women, and other special users.
4. Government Relations
Communication with the government and its departments is another important dimension of external communication. Business communication with the government covers several dealings touching many government departments. A corporate enterprise has to communicate with the Registrar of Companies, Controller of Capital Issues, finance department, industrial department and labour department. The relations of a company with the government are many sided. Correspondence with the
government may cover export-import matters, foreign exchange dealings, listening, registration, taxation matters also. A company has to file a number of documents to various departments of the goverment. Filing of annual returns and tax returns are regular activities.
Business houses have to consider the national objectives as well as the national priorities of economic development as indicated in Five Year Plans and other policy statements and resolutions. There is always if routine communication between the government and business on several other matters like wage policy, foreign policy, industrial policy etc.
Government communicates national objectives, priorities, achievements and programmes through the mass media like television, radio, film and ; through the print media like newspapers, magazines, Five Year Plans, budgets, annual reports, special economic survey reports, statistical bulletins, handbooks etc. A firm has to deal with all correspondence in which it is concerned and interested.
5. Dealer Relations
A communication network should not overlook the importance of dealer communication. The dealer is a trader who carries on the business I of buying and selling and other dealings. A dealer effects a substantial turnover involved in buying, selling, supplying or distributing goods directly or indirectly for cash or deferred payment or on commission. A dealer is an important party in external communications. The relation of the company with its dealers, like those of other outsiders, is said to be dealer communication. The quality of the product, the trading policy, practice, procedure and the image the dealers to promote are the fundamental
factors which must be given major consideration in the subject matter of communication. The method of communicating with the dealer will vary depending upon the nature of the product, distribution and media of communication. Communication with a dealer is quite different when the
distribution is made through agents.
Conferences and meetings with dealers are the usual media of oral communication. Written communication through letters is often the common method. Another medium of maintaining close contact with the dealers is by providing all the dealers with regular copies of an external house journal or news sheet. This carries relevant infonnation from the business house to the dealers, wholesalers, stockists, agents etc. The journal generally contains messages on display, promotions, uses, benefits, and comparative superiority of the product. It also covers all such matters
calculate to improve the dealer’s turnover, and as a consequence, mutual profits. Direct mail is also used to maintain direct contact with the dealers.
The public relations officer of the company gives guidance and help to
promote sales. He is a liaison between external parties and the company.
6. Inter-organisation Relations
No business organisation can exist in isolation without connections and dealings with other sister business organisations. Inter-corporate communication implies a process of information exchange between companies. A company of a particular industry may have links, direct or indirect. Inter-corporate loans, inter-company investment, inter-locking directorship, inter-corporate dividends, inter-corporate holdings and inter-corporate transactions etc., are all examples of the existence of inter-corporate communications. Information exchange between companies may take place on many matters like cost, process of production, methods
of production, new methods of production etc.
It has been observed that a firm simply cannot exist or survive unless
it is related with other firms in the industry. Inter-industry and intra-industry information exchange is necessary to make comparison and to run on smooth and competitive lines. Business houses undertake much inter-company communication to bridge the communication gap between the organisation and outside entities. Very often one notices that companies resort to inter-corporate and inter-institutional communication. Companies are also involved in information exchange to know the various sophisticated techniques adopted, the handling of production, appraising
people about the organisation’s march, social responsibilities discharged and getting their employees informed about the movement of employees in comparable organisations.
In present day competitive structures a firm is expected to catch up on the efficiency attained by competitors, and make efforts to reach and exceed them. Communication between the organisations on various functional performances highlights the points of strength and weakness in individual company performance.
Inter-firm information exchange facilitates inter-firm comparison, which provides an objective and realistic measurement of comparable efficiency of the firms inter se. The inter-firm messages on operating performance, financial results, product cost structure, sales trend, market potential etc., in relation to firms of similar size, capacity, nature, industry or trade present a vivid picture of comparative strong points and weak points. The firms can improve their activities accordingly. Firms thus supply information reports on their activities in the form of ratios, figures etc.
7. Complaints
Public relations firmly believe in openness and honest communication. Public complaints, suggestions and response constitute a complaint communication system. The public is any group of people which shares a common interest. An organisation with its effective communication talent has to establish and maintain mutual understanding between an organisation and its public. Complaints made by the public are to be attended to, and suggestions offered should be considered. A complaint is really a favour done to the company.
Correspondence with the company is a good means of communication, in particular, face-to-face conversation is still effective. Acknowledging a complaint and giving a decision without delay promotes goodwill. It is social responsibility of business as a form of activity to entertain and be responsive to complaints and suggestions. The social responsibility of a business entails obligations which a business owes to society. Communication sets in all spheres of enquiries, complaints and suggestions.
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