Tag: University of Mumbai BMS Notes

The power to communicate with corporations’ employees and customers carries considerable responsibilities. Organizations including the International Association of Business Communicators and the Public Relations Society of America develop ethical standards essential for the professional communicator. The content varies by organization, but the principles are the same.

Honesty

Professional communicators are honest, accurate and candid in all communications. This practice encourages the free flow of important information in the interest of the public.

Confidentiality

Protecting the confidences and privacy rights of employees and customers is the duty of professional communicators. Additionally, they must abide by legal requirements for disclosing information that affects the welfare of others.

Credit

When content is borrowed from another source, professional communicators give credit and identify that source. In many cases, communicators must request permission from the original source before sharing the borrowed information.

Free Speech

Professional communicators support the principles of free speech and free ideas. These practices encourage open competition.

Courtesy

Sensitivity to cultural values and beliefs are crucial for the professional communicator. It’s important to understand your audience and encourage mutual understanding.

Code of ethics

A code of ethics is a guide of principles designed to help professionals conduct business honestly and with integrity. A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization’s core values and the standards to which the professional is held. A code of ethics, also referred to as an “ethical code,” may encompass areas such as business ethics, a code of professional practice and an employee code of conduct.

Both businesses and trade organizations typically have some sort of code of ethics that their employees or members are supposed to follow. Breaking the code of ethics can result in termination or dismissal from the organization. A code of ethics is important because it clearly lays out the rules for behavior and provides the groundwork for a preemptive warning.

Regardless of size, businesses count on their management staff to set a standard of ethical conduct for other employees to follow. When administrators adhere to the code of ethics, it sends a message that universal compliance is expected of every employee.

Compliance-Based Code of Ethics

For all businesses, laws regulate issues such as hiring and safety standards. Compliance-based codes of ethics not only set guidelines for conduct, but also determine penalties for violations.

In some industries, including banking, specific laws govern business conduct. These industries formulate compliance-based codes of ethics to enforce laws and regulations. Employees usually undergo formal training to learn the rules of conduct. Because noncompliance can create legal issues for the company as a whole, individual workers within a firm may face penalties for failing to follow guidelines.

To ensure that the aims and principles of the code of ethics are followed, some companies appoint a compliance officer. This individual is tasked with keeping up to date on changes in regulation codes and monitoring employee conduct to encourage conformity.

This type of code of ethics is based on clear-cut rules and well-defined consequences rather than individual monitoring of personal behavior. Therefore, despite strict adherence to the law, some compliance-based codes of conduct do not promote a climate of moral responsibility within the company.

Value-Based Code of Ethics

A value-based code of ethics addresses a company’s core value system. It may outline standards of responsible conduct as they relate to the larger public good and the environment. Value-based ethical codes may require a greater degree of self-regulation than compliance-based codes.

Some codes of conduct contain language that addresses both compliance and values. For example, a grocery store chain might create a code of conduct that espouses the company’s commitment to health and safety regulations above financial gain. That grocery chain might also include a statement about refusing to contract with suppliers that feed hormones to livestock or raise animals in inhumane living conditions.

Code of Ethics Among Professionals

Financial advisers registered with the Securities and Exchange Commission or a state regulator are bound by a code of ethics known as fiduciary duty. This is a legal requirement and also a code of loyalty that requires them to act in the best interest of their clients.

Guidelines for developing code of ethics

Development Process

The first step in developing a code of conduct is to establish the purpose of the codes and why they matter. In a KPMG survey of Fortune Global 200 companies, the three most common reasons for adopting business codes were to comply with legal requirements, create a shared company culture, and protect and improve the organization’s reputation. KPMG’s survey also found that the most commonly cited core values of Fortune Global 200 companies are integrity, teamwork, respect, innovation, and client focus. Schwartz also recommended that code provisions should be consistent with “six universal moral values” (trustworthiness, respect, responsibility, fairness, caring, and citizenship), which should prevail over financial objectives.

Once the purpose is established, the framework for developing a code requires a full understanding of the operational and reputational risks an organization faces. These issues define the organization’s objectives when developing code content, policies, communication, and training that address individual and collective responsibilities regarding risk management.

To achieve the organization’s risk management standards it is important to draft a code that clearly states expectations and guidelines for acceptable behavior, and provides options for seeking advice and for reporting concerns or suspected misconduct. In his research on the many dimensions of code development, Schwartz found that employees, managers, and ethics officers consider codes more effective when they are readable, relevant, and have a positive tone.

In addition, choosing your language carefully is important, as the authors of an article analyzing Lehman Brothers’ Code of Ethics concluded: “finding the right words to express ideas and behaviors is a key strategic action for an organization.” The authors studied Lehman Brothers’ code using the Competing Values Framework (CVF) to reveal the rhetorical elements of the message, and the Erwin method to rate the code’s tone, readability, and style. They found that Lehman Brothers’ code’s strengths were on the relational (trust) and informational (facts) side, as opposed to the transformational (change) and instructional (action) side, of the CVF. This led to their conclusion that:

The Lehman code of ethics and internal code of conduct do not offer much vision or guidance to the reader. . . . While it lays out the basic rules expected of all Lehman employees, executives missed the opportunity to create a unique code expressing strong ethical principles. A more transformational code might have identified their unique strengths and values, but this would have to be coupled with transformational leadership and a culture of strong communication. The Lehman code did a basic job of protecting the organization against illegal actions by employees, but it did little to advance an ethical culture that might have sustained them.

One of the things the authors found lacking was guidance for employees who are faced with difficult decisions. The American Management Association proposes using the code of conduct to guide employees who are conducting business and making decisions in business dealings and relationships around the globe, by simply recommending that employees ask themselves two questions:

1. Does this comply with the law, the Code of Conduct and the company’s policies?
2. How would customers, shareholders, general public and co-workers view it?

The best practices for drafting codes of conduct that emerge from these studies include:

• Obtain buy-in across the organization with input from a multidisciplinary team
• Include the organization’s mission statement, vision, and values that reflect its commitment to ethics, integrity, and quality
• Clarify that the organization expects individuals to act with honesty and integrity in addition to compliance with legal requirements
• Describe expected behaviors rather than stating prohibitions
• Cover relevant risks, employment practices, protecting corporate assets, and managing third-party relationships
• Make it user-friendly and applicable to all individuals covered by the code
• Use simple, concise, and easily understood language (and provide translated versions as needed)
• Describe enforcement and disciplinary procedures
• Solicit feedback on the code from all levels of the organization
• Update to improve content and address new issues or risk areas

But the mere existence of a code of ethics, without more, will not create a sense of shared values and commitment to ethical behavior.

Implementation

Based on their analysis of the effect that Lehman Brothers’ code of ethics had on its corporate culture, the authors concluded that “silence can be deadly,” “codes fail when poorly communicated,” and “codes themselves cannot create ethical organizations.”

In fact, their research found that these two actions are key to code implementation:

• Communicate codes through the right channels and explain why they’re important
• Integrate codes into the organization’s practices and back it up with enforcement

Once drafted, an organization needs to embed the code into its culture. The KPMG report recommends that the code become a “living” document to guide and create ethical behavior throughout the organization through:

• Communication and training
• Personnel and other policy measures
• Monitoring, auditing, and reporting

At the companies KPMG surveyed, training courses were commonly used to:

• Explain the importance of the code
• Reinforce ethical behavior
• Strengthen the moral compass
• Identify and deal with dilemmas
• Provide guidance on how to implement the code more effectivel

At Lehman Brothers, the ethical code contained the phrase “compete aggressively in furthering the interests of the firm.” However, the authors raise the question of whether explaining to employees the level of acceptable risk in “competing aggressively” would have avoided leveraging the company “into a lethal situation.”

Effective implementation requires ethical leadership and support, training, and continuous reinforcement and updates to keep the code current. Ongoing administration and reinforcement of code standards embeds an organization’s values into its culture, which stimulates ethical reflection and action, and encourages compliance so that employees speak up when they see others engaging in unethical behavior. And for the skeptics who question whether an effective code of ethics is worth all this effort, the bottom line is that good ethics are good for business.

Today, no business can sustain without having a strong internal and external tool of communication. The emergence of new technology and strong power of digital platform help the corporate to realize,  to keep intact their corporate communication so that their stakeholders and shareholders perceive their existence positively. Today, corporate communication as a profession is not only challenging and creative but very rewarding and recognized. Corporate communication as a tool either can brand or Debrand any business organization.

As per world report 2015, the corporate communication profession is gaining around 14 % as compared to 2014. Every sector whether it is a PSU or private sector, manufacturing or service sectors, education or NGOs, they are giving lots of importance to strengthen their Corporate communication department which ultimately helps an organization to manage their internal and external communication.

In the dynamic scenario, it is imperative to note that corporate communication practitioners are the people who manage extremely complex and varied operations of an organization. The function of corporate communication and management functions are aligned together for the benefit of an organization and to achieve a desirable public exposure.

Meaning and Definition of Corporate Communication:

Philip Kitchen and Don Schultz in “Raising the Corporate Umbrella” defines, ‘‘Corporate communication at its simplest is primarily a mechanism for developing and managing a set of relationships with public or stakeholders who could affect the overall performances. These relationships must be viewed in a long-term strategic fashion.”

Thus, according to the above definition, corporate communication is used to build the image among its audiences to enhance its overall performances.

As per Median Online, an organization who works in the area of corporate communications globally defines that, “Corporate communication is the strategic initiative taken by a corporate organization to communicate the corporate brand and its core messages to a spectrum of growing audiences in a globalized market environment. At its core, corporate communication is very simple, the way a corporate communicates.”

Further, it identifies that as a strategic initiative, corporate communication helps a brand/firm to create their identity, build the brand and manage its reputation. It goes beyond the traditional method of communication and harnesses the potential of the print, audio-visual and digital media for the company’s reputation. It uses advertising, public relations, community relations, corporate literature, exhibitions, event management, research, sponsorship management, traditional media and IMC (integrated marketing communication) to place organization, products, and services the global marketplace.

Scope of corporate communication:

• Create an identity: The success of many companies in India like Reliance industries, Tata, Kirloskar group of companies portray that all these companies have created their identity as an organization which is for their people. In the current scenario, where every day, the function of corporates is complex and unvivid, finding an audience for their products, services or companies determine the growth of an organization. Therefore, a company gives preference to use the tools of communications wisely and timely. The corporate communicator/public affairs manager/public relation officers/media liaison officer/media advisor, and corporate communication manager, they all ensure that their corporate connects build an audience group for the growth of an organization.
• Build a brand: corporates in their day to day affairs interacts with two kinds of an audiences, internal and external. The internal audience who may be in form of shareholders, stakeholders or employee of the company carry the pride of association with an organization wherein the external audience are crucial for the future growth of a brand. To balance both the audiences, corporate communication practitioner needs to follow the simple approach in mind.
• Manage the reputation: Nowadays, the media intervention is very high. The rumour spreads and impacts on organization’s reputation, therefore the corporate communicate practitioner manage the task of building the organization reputation and keep its prestige intact.
• Develop a communication model: No organization will make a progress in their isolation approach. It is crucial to communicate with their people on a timely basis. An effective communication model will help an organization to build a strategy which will be beneficial for them in a long run.

Corporate Communication in India:

In India, the business and corporation has come a long way. As it is found that corporate communication is very complex in nature and dynamic in an economic context. The journey of corporate communication has been changed from time to time. In the 1950s, when industrialization just commenced, the focus was more on production and need-based but this concept has kept on changing from time to time and today, the corporate communication is all about corporate branding and reputation management. India, as a country is a brand driven consumer market. Each phase of industrialization has come up with a new medium of communication and vision as well. The objective of the company moved from attention seeking to relational capital (reputation + bonding). Today, every corporate want to manage their stakeholders through various medium of communications.

In India, corporate communication has seen the phases of industrial revolutions wherein the communication paradigm also differed between business and society. Today, the company wants to control and manipulate public opinion to build trust and reputation through digital media. Corporate communication has quite advanced today over the course of more than a century. Be it political, social, economic, legal, business, no one can deny its importance and relevance today in the context of India.

Need/Relevance of Corporate communication in modern contemporary scenario:

The father of public relations, Edward Bernays & Arthur Page spoke about the relevance of corporate communication. Bernays said that internal and external communications to be the engineering of consent in the interest of the company. Arthur Page focused to build the goodwill of the company. It is important for a business to influence society through persuasion or convince. Today, corporate communication is not considered just as a job in a company but a department that is fundamentally creating the social environment of economic value creation and challenge our traditional understanding of communication management.

It is extremely relevant in today’s flat worldwide interconnectedness world. Corporate communication helps to develop a culture of dialogues, feedback, and flexibility. Any organization who works and go ahead along with its people is bound to get success and excel in the field.

The success of Tata, Reliance, Facebook, Mahindra & Mahindra and many other companies define their way of communicating values to their people. Today, mid to large organization understand the importance of corporate communication and it is imperative for them to incorporate into their organization.

Thus, the future of corporate communication will be more targeted, effective, interactive and informative. It has a potential to shape culture, enable better decisions and significantly move the need for building an engaged workforce to capture the value. It is important for every corporate to recognize the need for communication category and usage of communication tools which has the greatest impact on building a strong organization socially and economic point of view.

According to the business dictionary, corporate identity is the “Combination of colour schemes, designs, words etc. that a firm employs to make a visual statement about itself and to communicate its business philosophy. It is an enduring symbol of how the firm views itself, how it wishes to be viewed by others, and how others recognise and remember it.

Unlike corporate image (which is ‘in there’ changeable mental impression), corporate identity is ‘out there’ sensory experience conveyed by such things as building, décor, logo, name, slogan, stationary, uniforms, and is largely unaffected by its financial performance and ups and downs in its fortunes.

Corporate identity is either strong or weak (not positive, negative or neutral like a corporate image) and is more or less permanent unless changed deliberately”.

A corporate organisation maintains and presents itself to its customers, shareholders and public at large in such a manner that facilitates its business objectives. It strives to create a brand value and win competitive edge over other similar organisations by creating its unique identity.

In order to create and establish that identity it invests in branding and trademark. This is something very similar to how a human being creates his own identity in society by virtue of his unique dressing style, his communications, his character and how he deals with his surroundings in a unique manner that defines his personality.

Features of Corporate Identity

To create corporate identity and to visually manifest its uniqueness the corporate organisation invests in creating impactful advertisements, title or logo. The end objective is to maximise business by increasing customer base. Customers always have their free will and a wide variety to choose from. Therefore, corporate companies aim at creating a strong brand image and appearance in the global market.

There are six most important features of corporate identity:

1. Company name: There’s a lot in a name. Especially when there are copyright and trademark issues involved. Therefore, the name should be original and distinctly different from other registered names. It should also go in accordance to its identity and distinct enough to be remembered by people.

Consider names like Pepsi, Nestle, HUL, P&G, Frooti, Maaza Mc. Donald etc. Ideally the names are short and easy to be remembered by people and without any double meaning.

2. Company logo: It is a graphic design that corresponds the company or product or service image. It is the face of the company and a merger of all the attributes of colour, design, style and font. It represents the character of the company. Consideration of various psychological factors and a lot of research goes in designing a logo.

Whether the shape is conical or angular to represent speed, or smooth edged and round to emit the essence of warmth and trustworthiness depends on what character the company is trying to project.

On close observation we can see the difference in logo design of service sector companies to that of high-tech companies, baby care products or high-speed bikes. The logo is a centralised visual representation of the company and its product’s unique character.

3. Colour and Font: Colour has a significant impact both emotionally and psychologically in the minds of the customers. The font colour and design a company uses go a long way in creating a brand identity. Colour also create trust and may influence a buyer’s decision in favour or against the product.

Example: Johnson & Johnson baby care range comes in white whereas the anti-ageing product are mostly in red or golden. Both have a different impact and influence on the minds of the customers and may influence the buyer’s decision.

Both colour and font are important key element in creating a brand identity. Some companies use fonts in italics, some in bold and some in all capitals. They are supposed to go in harmony with the brand image and exude style, reliability, tradition and various other characteristics.

Some companies use fancy fonts and bright colours as a reflection of playfulness, youthfulness and joy. Some use simple and elegant font with either blue or grey colour to represent depth and richness etc. Therefore, companies do a lot of research to identify for itself an style that describes its identity.

4. Business card: People in business exchange business cards to tell who they are and what position they hold in the organisation. Most of the time a business card speaks in volume about the company and the concerned person.

The quality of paper used, the design, the style, colour, fonts etc. exudes the brand image of the company apart from providing vital information like contact numbers, mail id, name, designation etc.

Business cards can be elegant and authoritative or play playful and creative. It depends on what kind of aura the company tries to project.

Many may wonder why and whether business cards are still needed in the digital era. The answer is an obvious ‘Yes’. It is common for people meeting each other for the first time in cocktail parties, business meets, networking meeting etc., that they have a conversation and after five minutes struggle to remember the name of that person or organisation.

Although, the present-day smart phones are equipped with technology and applications that makes information sharing easy and simple.

5. Business letterheads: Business letters are written in business letterheads. It carries the company name, logo and contact details. Both business cards and letters are made of high-quality paper that is a symbol of richness and sophistication. Companies can go colourful with letterheads or may stick to simple styles.
6. Printed envelopes: Companies and educational institutions have their printed and customised envelopes because that also helps in brand promotion. Attractive font colour design name etc. help in building corporate identity.

Companies also use pamphlets, flyers, websites and posters including wrapping papers and advertisements for creating a sustainable impact in the minds of the customers.

In simple words, the picture that comes in mind when we think of a particular company is the corporate image. The image can be positive as reliable, trustworthy, reasonable, high quality, or it can be negative as harmful, expensive, poor quality etc.

Unlike corporate identity, corporate image is purely based on the customer’s perspective. This perspective can be changed from good to bad the moment something negative is flashed in news about the company or its products. We have seen companies endorsing real life doctors in their advertisements to promote their brands and create a reliable image for their products.

Especially companies doing business in medicines, baby care products, dental, creams etc. use expert medical practitioner’s opinion to convince their consumers. Companies dealing in high end products like gold, diamond, platinum even expensive cosmetics ranges endorse eminent film personalities in their commercials to promote reliability and elegance.

All these are done in an endeavour to create a positive corporate image. However, brand image changes from time to time. We have witnessed in real life some of the companies being accused of to lose their brand image overnight.

However, if they win the legal battle and a clean chit from the health federation, slowly they are able to re-establish their image in the market.

Factors Influencing Corporate Image

1. Mission and vision: Mission defines “who you are and where are you going” and vision is the “big picture” illustrating what you expect to achieve.
2. External image: It consists of customer service management, quality of products and services and media.
3. Established business relationship: It is a vital relationship between your organisation and stakeholder groups.
4. Be transparent to your stakeholders: Being truthful is the key to business success particularly while managing issues and crisis.
5. Cheaper technology: The increasing cost of traditional mass media advertising and the relatively cheaper opportunities offered by the internet many organisations are re-examining their media presence and ways to control it.
6. Varied choices: Many organisations today use a range of media including corporate blogs websites banners and sponsored online communities.

As discussed earlier corporate image is highly subjective and fluid in nature. It may change from positive to negative and vice versa. Therefore, companies put in a lot of effort to sustain a positive image in the market.

However, there are several warning signs of a deteriorating corporate image. For example: high attrition rate, losing customer base, frauds with the government, sinking in the stock market etc. may tarnish the image in the global market. Irrespective of the size of the company it is important that they strive towards protecting their image as it takes a long time to grow.

Ever since globalisation maintaining a clean corporate image has been of high priority for organisations. A company maintaining its business in multiple geographical locations or expanding in home country is always under a threat of being projected with dissimilar images that might go in contrary to the actual corporate image.

In addition to all these factors there is also a growing expectation in society about the organisation’s involvement in altruistic or philanthropic activities.

For example, certain corporations actively promote organ donations, caring for animals, protection of nature, patronizing farmers, sponsoring child education etc. Such contribution to social causes enhances the brand image of the organisation and they are crucial in sustaining the image as well. Organisations try to create favourable impressions in the minds of those who matter to them.

Corporate reputation is defined in business dictionary as “The collective assessment of corporations past actions and the ability of the company to deliver improving business results to multiple stockholders over time.”

There are agencies who after careful observation and considerations, attribute a company as “most admired” by virtue of the social, economic and environmental impact it has over a sustained period over time. The reputation of a company also depends on these factors and is instrumental in creating favourable or unfavourable impressions in the observer or assessor’s eyes.

It is essential for a business to have good reputation in the market in order to service competition. Word of mouth definitely is a bonus, however it is also important how the company handles crisis or responds to controversies. This apparently is a cyclic process. A strong reputation helps a business overcome crisis, on the other hand effectively managing crisis or controversy promotes a strong reputation.

This allows a company to differentiate its product from similar competitive ones and over sell it at a higher price. Businesses are now concentrating more on reacting eco-friendly products, biodegradable products, organic products and so on. Research finds that customers don’t mind paying a premium price for products that has a strong brand reputation.

Organisation can actively promote a good reputation by being sensitive to the following factors:

1. Creating trust amongst its vendors, suppliers etc., by paying off their timely dues. Deliver to customer what is promised. Provide timely service and maintain quality etc.
2. Maintain transparency and honesty in communication with customers. This also includes timely reply to queries, respond to emails, promptly address issues and grievances etc.
3. Taking ownership of problems that may crop up from time to time instead of pushing it back to the customer. With so much of options and varieties available these days, customers are very less likely to stick to any particular brand for long if it continues to dissatisfy them.

For example: a dissatisfied Airtel customer may switch to any other service provider if his grievances are not addresses, its billing details, network problem, data connection and so on. Almost all the business thus has a customer care service department that is reachable through a toll free number.

A customer may budge a telephonic complaint and the customer service department may escalate the issue to concerned authorities and try to sort out the problem to immediate effect and thus retain its customer.

4. Many companies offer free services and latter to the preferences of the legal customers. Offering high level value and services help sustaining the existing customer base also create a good reputation in the market.
5. Having a strong online presence in terms of a polished and updated website is always essential for letting the customer know about new or improved product or services.

Transparency of information and effective communication through mailers, messages etc., are also vital for survival of any business irrespective of the type or size.

6. Availability of company name on the first page of Google or other search engines also create a big impact. This indirectly says that the brand is an esteemed one. Presence and visibility in networking sites such as twitter, feedback, LinkedIn also gives the flavour of a premium brand. This all add up to the reputation of the company and its products.

The biggest advantages of a favourable reputation are:

• More and more customers are willing to buy the product or services of a particular company whereas there are other companies offering the same identical quality in competitive price.
• To be able to sustain stakeholders support in adverse times.
• To be able to maintain good quote in the stock market.
• To be able to charge premium price for the product or services.

Essentials of Corporate Reputation

• Ethical with stable workplace
• Financial performance
• Leadership and Management
• Social responsibility
• Customer focus
• Quality and Reliability
•  Emotional Appeal

Ethical behaviour and corporate social responsibility can bring significant benefits to a business. For example, they may attract customers to the firm’s products, thereby boosting sales and profits.

In communication, ethics work to enhance credibility, improve the decision-making process and allow for trust between the two parties. Ethics provide the groundwork for right and wrong, allowing two parties to communicate with a basic understanding of what is expected.

Ethics serve as a guide to moral daily living and helps us judge whether our behaviour can be justified. Ethics refers to society’s sense of the right way of living our daily lives. It does this by establishing rules, principles, and values on which we can base our conduct.

Ethical issues of business communication is the way by which individuals or groups of people exchange information between them. From end-to-end the process, effective communicators try as clearly and accurately to pass on their ideas, intentions and, objectives to their receiver. Communication is successful only when both the sender and the receiver understand the same information. Nowadays business world, effective communication skills are necessary due to the highly informational and technological era, which has made it easier for exchanging of information between the parties.

Despite of the context, communication is all about choice, reflects values, and has consequences. For better communication, understanding the obvious and the subtle issues relating to communication is necessary. Any company that aims to be socially and ethically responsible must make a priority of ethical communication both inside the company and in its interactions with the public. In theory, many consumers prefer to do business with companies they believe are ethical which gives those ethical businesses an advantage in the market.

Some of the vital characteristics of ethical communication are discussed below.

• Conveying the point without offending the audience:

While communicating with the audience, expressing the desired message to them in a significant manner is of primary importance. Strong conversation skills can make a big difference in the workplace. Knowing how to share an attentive, friendly discussion will give you more confidence and help you build better relationships. As you improve your skills, you’ll become a more thoughtful listener, give sharper responses, and learn how to handle common mistakes. For instance, the employees in a company can be asked to increase their efficiency in a demanding manner whereas managers and executives will feel offended if the same tone is used on them. There are different ways to explain the exact things to them in a much smoother manner.

• Maintain a relationship with the audience:

Maintaining the same wavelength with the audience is very important for a communicator to ensure the audiences feel at home. Experienced communicators immediately build a relationship based on trust with the audience as soon as they start speaking. As the audience shares, ask relevant questions to give them further chances to express themselves. Be curious about the audience! For instance, if they’re talking about a tough presentation they just gave, ask how they felt when they finished.

• Avoid withholding crucial information:

In the modern era, information is vital for all decision. Hence, it is essential for any organization to be cautious when communicating with titanic. The related information should be absolute, and all crucial information must be passed on appropriately. Purposely withholding crucial information might result in the public conceiving a bad image.

• Well organized value system:

In order to ensure that this concept is successfully practiced and understood in an organization, a well-organized value system must be established throughout the organization by the top management. If an organization functions on the base of value systems common to both the top management and the employees, mutual respect between them will be present. A sound and healthy value system can make way for ethical communication.

• Accuracy of information is necessary:

Any information that is to be passed on must be true and accurate. Communicating without checking the truth of the information can be highly dangerous for the organization. Identification of the source and testing the information is necessary before communicating it.

In any organization, communication plays a crucial role. It helps an organization to build the primary resources (Labour, Capital, and Raw Materials) and secondary resources (such as legitimacy and reputation). We have ample examples wherein the reputation of an organization has been demolished on the basis of their unethical practices, false commitments or mishandling of their stakeholders. Therefore, any successful organization should follow the standard code of ethics and government guidelines and laws.

The concept of ethics and law in corporate communication is divided into 4 parts:

As the role of a corporate communicator is to make the consumer aware, instruct and persuade towards the organization vision, mission and values to create a good image and reputation, therefore, they need to be extremely truthful and accurate before their internal and external stakeholders.

Let’s study in details to understand the concept of ethics and law in context of corporate communication with suitable examples:

Mass Media Laws:

The brief history of mass media laws: In India, the concept of mass media laws were enacted during the British Raj.  In 1799, Lord Wellesley promulgated the Press Regulations and imposed the censorship on newspaper for publishing any information against the government. The passed act of 1835 was repressive in nature and imposed restrictions on the printing industry. In 1857, Government passed the “Gagging Act” which had the rule to have compulsory licensing for the owning or running of printing presses and gave multiple rights to government to suppress the freedom of the press. In 1867, the ‘Press and Registration of Books Act” 1867 came. The Vernacular Press Act of 1878 was also repressive in nature. After that, there were various acts introduced by British governor which curbed the freedom of the press.
But after independence, The Indian constitution has signified the “Freedom of Press” and empowered press to disseminate knowledge to the masses and the Constituent Assembly and in Article 19 (1) (a) enumerated certain rights regarding individual freedom of speech and expression.

Article 19 of the Indian Constitution Lays down:

“All citizens shall have the right to freedom of speech and expression, to assemble peacefully, a without arms, to form associations or unions, to move freely throughout the territory of India, to reside in any part of the territory of India, to acquire hold and dispose of property and to practice any profession or to carry any occupation, trade or business.” It is defined that such freedom is not absolute but is qualified by certain clearly defined limitations under Article 19 (2) in the interests of the public, sovereignty and integrity of nation, state security, relations with neighbouring and foreign countries, public decency and mortality, or in relation to contempt of court, defamation or incitement to offence.

Defamation: The term “defamation” is an all-encompassing term that covers any statement that hurts someone’s reputation. If the statement is made in writing and published, the defamation is called “libel.” If the hurtful statement is spoken, the statement is “slander.” Defamation is not a crime; it is a civil wrong. The law of defamation varies from state to state.  Few cases of defamation incorporate which had made the headlines as follows:

1. 1997: B V P Rao vs Rata Tata and others V P Rao contended that Tata Tea had twisted and suppressed the facts projecting him in a very poor light by alleging that there was no response from him as home secretary in December 1995 for providing security after the Tata Tea received a letter from the Ulfa demanding hundred walkie-talkie sets. Rao, who was then the state power commissioner, claimed damage of Rs 1 crore against the Tata Tea, its managing director R Krishna Kumar and chairman of Tata group of companies Ratan 
2. 2006: R S Lodha vs B K Birla Auditor R S Lodha, who had claimed that Priyamvada Birla had bequeathed her assets worth thousands of crores to him, sued industrialist B K Birla for damages of Rs 100 crore. He said Birla’s statements in the media had tarnished his image.
3. 2008: Anil Ambani vs Mukesh Ambani Anil Ambani sued brother Mukesh for damages of Rs 10,000 crore for certain libelous statements by the latter in an interview to New York Times. The American publication and some Indian papers which reproduced this were also made respondents. A case was withdrawn after the truce between brothers a few years later.
4. 2010: Chris Cairns vs Lalit Modi New Zealand cricketer Chris Cairns sued the then IPL chairperson Lalit Modi, in the UK’s first Twitter libel case over a defamatory tweet sent in January 2010, in which Modi referred to Cairns’ alleged involvement in match-fixing as the reason for barring him from the IPL  “The allegation made by Lalit Modi that I have been involved in match-fixing is scandalous and wholly untrue. For him to circulate such a falsehood around the world is outrageous,” Cairns said in a statement. In 2012, a UK court awarded damages of 90,000 pounds and costs of 1.5 million pounds. Modi had said he would appeal.
5. 2014: Veritas vs India bulls Canadian investment firm Veritas Investment filed a suit of a settlement of a claim in Ontario against India bulls claiming $11 million (Rs 70 crore) in damages for the alleged defamatory announcements and press releases put out by India bulls, which led to the closure of its India Research services. India bulls won an interim order against the move in Delhi High court. A few months later, it also filed a suit claiming Rs 200 crore damages from Veritas and its analyst Neeraj Monga for submissions made in the Ontario 

Invasion of Privacy:

In India, we all have the right to privacy. But, sometimes, this right is being curbed especially in case of celebrities or any public figure. Invasion of privacy is the unjustifiable intrusion into the personal life of another without consent. However, invasion of privacy is not a tort on its own; rather it generally consists of four distinct causes of action. The four most common types of invasion of privacy torts are as follows:

• Appropriation of Name or Likeness
• Intrusion Upon Seclusion
• False Light
• Public Disclosure of Private Facts

Appropriation: Appropriation of a person’s name or likeness for commercial or trade purpose without any permission is an invasion of privacy. Use of an individual’s photograph, a sketch of the person’s nickname or any other names is all considered use of a name or likeness.

E.g. In 2005, when famous musician Tom Waits declined an offer made by an advertising agency to do an ad campaign for a new automobile, then the advertisers hired someone who sounds like him to do the soundtrack which made Waits to sue the automaker for appropriating his likeness.

Intrusion upon seclusion: Intruding someone’s private affairs, physically or otherwise, is subject to liability if the other person finds it offensive and unacceptable. When someone illegally intercepting private phone calls and snooping someone’s private records without the permission, take someone’s photographs without permission, etc. are the examples of intrusion to right to privacy.

E.g. – A famous Ratan Tata – Radia Tape case is an example of intrusion upon solitude which showed the interesting woman attempting to influence policy by controlling politicians and journalists, destroyed reputations and careers, but Ratan Tata emerged with mere scratches.

Public Disclosure of Private Facts: As the term suggests, it is about encroaching someone’s personal territory. Wherein, the media tries to cover all the irrelevant personal information about the public figure which is not of much concern.

False Light Claim: False light laws protect your right to not have potentially misleading or damaging information about yourself publicly disclosed. This includes the disclosure of information that may be true but is nonetheless misleading or damaging. For example, it may be an invasion of privacy if a caption published with a photograph in a news article about a protest describes a person as a participant, when in fact, the person was only observing the protest. Generally, the elements of false light are as follows:

• The defendant publicly disclosed information about the plaintiff;
• The information placed the plaintiff in a false light; and
• The false light would be highly offensive to a reasonable person.

Copyright act:

Copyright protects the original work of artists in the area of literature, dramatics, music, artistic works, anonymous and pseudonymous works, posthumous works, cinematograph films, sound records, government work, public undertaking, international agencies a photograph.

The duration of the copyright protection varies. Infringement of copyright occurs whenever somebody exercises copyright owner’s right without permission. The Copyright ACT, 1957 gives various rights to the owners.

Copyright guidelines:

• It is essential for a corporate communicator to copyright all the literature, brochures or relevant documents deal with company information to protect legally.
• No download/upload other person’s work without having proper information about its protected rights.
• Always seek permission for materials used for sale.
• All celebrity letters, photographers to be protected.
• Government documents are not copyrighted but avoid implying government endorsements.

E.G. Apple vs Microsoft

The battle between these techs giants started with a simple question: who invented the graphical user interface (GUI)? The company that controls the interface of the next major operating system will have the ability to set the standards for application software, so it’s unsurprising that Apple tried to stop Windows from becoming a major operating system.

It seemed that although Microsoft helped develop Macintosh, Jean-Louis Gassée, who had taken over from Steve Jobs at the time, refused to allow Microsoft to use their software. Bill Gates pressed on nonetheless, deciding to add in features of its own too early prototypes of the Macintosh.

When Gassée noted the software, he was enraged. However, he didn’t want a lawsuit and ended up agreeing to license Mac’s visual displays. But Windows 2.0 turned out to be almost identical, and Gassée believed it to be a breach of contract, only having allowed their software to be used for 1.0 and not future versions.

So, without warning, Apple filed a lawsuit against Microsoft in 1988. Apple’s case included 189 contested visual displays that violated its copyright. This led to a six-year-long battle.

In 1989, the court ruled that 179 of the 189 disputed displays were covered by the existing license. Furthermore, the other ten were not violations of Apple’s copyright due to the merger doctrine, where the idea-expression divide limits the scope of copyright protection by differentiating an idea from the manifestation of that idea. The lawsuit was decided in Microsoft’s favor on August 24, 1993.

Digital piracy:

Digital piracy is a form of online piracy and includes the unauthorized online distribution of electronic copies of copyrighted material such as software, movies, and music. Recently, we have seen that many filmmakers have shown their concern towards the release of the movie on the digital platform prior to release date and it gets leak on the digital platform which impacts their business and in larger context employment. Though it has many advantages to businesses and consumers alike, there are many challenges have also been emerged such as:

• Availability of lots of unauthorized sites: Such websites allow web users to download the media content for free and it is pirated and make it widely available for users.
• High-Speed Internet: Today, the high-speed technology and availability of many apps through which we can share the large MB data in few seconds capitalize the high traffic by selling the advertising space of their webpage to advertisers to reach the target audience. Such promotional tactics help them to generate revenue through digital advertising. Such advertisers may be harmful to all people who get associated with it. It might get indulge in illegal activity.
• Unsafe digital environment: The sites on which digital advertising is shown might be interpreted by consumers that it is a well-known brand but it might not be the case in reality.

Therefore, it becomes the responsibility of a communication expert of a company to avoid ads going to suspected IP infringing websites. Also, it is essential to eliminate fraud traffic, combat malware, fight internet piracy, and promote brand safety through transparency.

Canadian Association of Journalists (CAJ) has provided the list of some ethical rules to publish the information in the digital media:

• Ethical practice does not change the medium.
• All online content should be accurate and consider carefully.
• It is important to quote the used sources when the information gets published online.
• Ensure credibility
• When errors or corrected, it needs to be mentioned.
• Online printed materials need to be used with proper permissions.
• Information gathered through online should be confirmed, checked, varied and authenticate with the list of sources.

Right to Information:

Right to Information (RTI) is an Act of the Parliament of India to provide for setting out the practical regime of right to information for citizens and replaces the erstwhile Freedom of information Act, 2002. Under the provisions of the Act, any citizen of India may request information from a “public authority” (a body of Government or “instrumentality of State”) which is required to reply expeditiously or within thirty days. The Act also requires every public authority to computerize their records for wide dissemination and to proactively certain categories of information so that the citizens need minimum recourse to request for information formally. The Law came into force on 13 October 2005. However, under this act, the private bodies are not covered directly but information that can be accessed under any other law in force by a public authority can get access.

Code of Ethics and its implementation:

Companies constitute a committee consisting of internal and external directors for institutionalizing ethical behaviors. The function of such committee includes:-

1. Inform all members the code of ethics.
2. Regular meeting to discuss the ethical issues.
3. Enforcing the code
4. Dealing with concern areas
5. Reviewing and updating the code
6. Reporting the activities of the committee to the board of Directors.

Professional Code of Ethics:

International Code of Ethics adopted in All India Public Relations Conference in 1968 states that United Nations Organizations have agreed to abide by its charters reaffirms” its faith in fundamental human rights, in the dignity and worth of the human person” and that having regard to the very nature of their profession, Public Relations practitioners in these countries should undertake to ascertain and observe the principles set out. This code of ethics highlights the important aspects of Public Relations practitioners such as Honesty, Advocacy, Expertise, Independence, Loyalty, and Fairness.

Business in the present world survives majorly on corporate communication. Many organisations have witnessed disastrous consequences like dissatisfied customers, breaking down of relationships with shareholders and loss of business due to ineffective or lack of communication.

organisations need to maintain harmonious relationships with everyone they deal with, including internal employers and outside vendors, workers, distributers etc. One of the main tasks that corporate communication accomplishes is to provide clarity of information to everyone concerned and to meet organisational goals by eliminating confusions that may arise from distortion of messages.

Contemporary business organisations have expanded beyond geographical boundaries. They constantly deal with different races and cultures. This makes business communication challenging as any trans-border communication gap may disturb business relationship and may create dissonance between two parties.

Effective business communication not only promotes business development but also serves multiple other functions such as:

1. Generating trust: For any organisation to run a sustainable business, it is important to acquire trust from its employees, vendors, customers, business associates, partners etc. An honest and efficient communication goes a long way in creating this trust among people concerned. Standing true to organisation’s commitments is also equally important.

Let’s take a simple example of corporate banks. They establish 24 hours helpline and customer support round the year. Instant messaging services to customers regarding financial services and transactions, sending timely alerts, offering net banking facilities that save hours of standing in a queue, e-billing, addressing customer grievances instantly, alerting customers of fraudulent calls are all different ways of creating trust and communicating reliability among customers.

Contemporary organisations believe in providing more and more transparency and access to their customers there by creating a bond of trust.

2. Dissolve communication barriers: Effective communication minimizes the chances of misunderstandings and resolves conflicts. With the opening up of horizons for business, corporate organisations make cross border business dealings. Mergers, acquisitions, partnerships, collaborations and such type of activities are based on effective communications.

Lack of transparency, false assumptions, inaccurate information etc. may tarnish the brand image of an organisation and may lose business in the global market. When a company wants to sell its products in the international market, it is basically dealing with a lot of challenges like creating product of international standard, creating value, generating reliability amidst scepticism. For any company to establish its position in the global market the most significant tool is its corporate communication.

3. Creating and retaining customers: Big corporate houses with an international client base are constantly in pursuit of betterment of their product quality not only for the purpose of business expansion but also to retain its chain of existing customers. Almost every big company with international customers has call centers with executives dealing with customer issues and grievances. Companies spend millions of rupees in product advertisement and creating a brand value. Much of the organisation’s goal of retaining and enhancing customer base is also accomplished by thinking ahead of time so that not only have answers to the current problems but also to those that may arise in future.

An organisation that successfully communicates its futuristic thoughts and promises to deliver quality product and services for a longer period of time definitely enjoys a sustainable position in the market.

4. Customer awareness: Customers already know about the product they want to purchase by seeking information about the product online.
5. Internet: The rapidly changing global economy, a revolution of media fuelled by democratisation of the internet and a substantially transformed the 21st century corporation and is making the business more competitive.
6. More clutter: On average a person is hit by 13,000 commercial messages daily integrated communication strategies are more likely to break through this clutter.
7. Emphasis in ICT: Organisations are also realising that messages in various media can complement one another leading to a greater communication impact than any single message can achieve.

The Equal Remuneration Act, 1976 provides for payment of equal remuneration to men and women and help prevent gender discrimination. Article 39 of the Indian Constitution envisages that the States will have a policy for securing equal pay for equal work for both men and women. To give effect to this constitutional provision, the Equal Remuneration Act, 1976 was introduced.

An Act to provide for the payment of equal remuneration to men and women workers and for the prevention of discrimination, on the ground of sex, against women in the matter of employment and for matters connected therewith or incidental thereto.

The purpose of the act is to make sure that employers do not discriminate on the basis of gender, in matters of wage fixing, transfers, training and promotion. It provides for payment of equal remuneration to men and women workers, for same work or work of similar nature and for the prevention of discrimination against women in the matters of employment.

The salient features of the Equal Remuneration Act, 1976

• The Act is a Central Legislation and applies to the whole of India.
• The objective of the Act is to provide for protection against discrimination of women workers on the ground of sex, about the payment of equal remuneration in the matter of employment.
• Restricting the employer to create terms and conditions in a contract of service or work of labor contrary to equal pay for equal work doctrine and the provisions of Equal Remuneration Act.
• The Act doesn’t make a distinction like employment or the period of employment and applies to all workers even if engaged only for a day or few days.
• No overriding effect is given to any agreement, settlement or contract to the provisions of the Equal Remuneration Act.
• Any settlement or any agreement with the employee that is detrimental to the employee isn’t allowed.
• The Ministry of Labour and The Central Advisory Committee are responsible for enforcing this Act.
• Meaning of equality of work: The equality of work is not based solely on the designation or the nature of work but also on factors like qualifications, responsibilities, reliabilities, experience, confidentiality, functional need and requirements commensurate with the position in the hierarchy are equally relevant.
• When the employer doesn’t comply with the provisions of the act, he will be liable to pay fine, imprisonment, or both.

Various provisions of the Act

Every employer covered under this act shall pay the employees remuneration in cash/kind at a rate which shall not be less favourable to the other gender if the work is the same or of similar nature.

Same work or work of similar nature would mean if the work is performed under similar conditions either by a man or woman it would require the same skill, effort and responsibility. If there are any differences in the skill, effort and responsibility required from a man when compared to a woman the same is not important to the employment.

• No employer shall be allowed to reduce the remuneration of any worker in order to comply with the provisions of this act.
• In case the remuneration payable before the commencement of this act was different due to discrimination then going forward the higher(in case of two rates) or highest(in case of more than two rates) rate shall be payable. However the same shall not apply to the remuneration payable for the services rendered before the commencement of the act
• While employees are recruited for work which is the same or of similar nature no discrimination shall be directed towards women unless any law prohibits the same. This provision is also extended to activities after recruitment i.e promotion, training or transfer. The reservations made towards Scheduled Castes or Scheduled Tribes, ex-servicemen, retrenched employees or any other class or category of persons will not be affected by this provision.
• An advisory committee shall be formed which shall consist of 10 members half of which shall be women and the committee shall focus on providing its advice for increasing the employment opportunities for women, hours of work, nature of work and such other matters.
• Every employer is required to maintain registers and other documents in relation to the workers employed by him.
• The appropriate government shall appoint inspectors for the purpose of investigation of compliance with the provisions of this act.
• The Inspector shall have the power:
• To enter any building/premises/factory/vessel
• Require the production of documents
• Take evidence from any person to confirm compliance of the act
• Examine the employer/agent/servant