ESSENTIALS OF CORPORATE COMMUNICATION

Communication is the lifeblood of all organizations: it is the medium through
which companies large and small access the vital resources they need in order
to operate. It is through communication that organizations acquire the primary
resources they need (such as capital, labor, and raw materials) and build up
valuable stocks of secondary resources (such as “legitimacy” and “reputation”)
that enable them to operate.
Organizations secure access to these resources in two ways: first, by
directly negotiating the prices and terms on which a resource is purchased. This
requires direct communication between buyers and sellers, and calls on familiar
communication skills. Another way organizations gain control over valued
resources is by influencing indirectly the context within which these exchanges
occur (Pfeffer and Salancik, 1978). Through lobbying and collective action
with other organizations, companies build entry barriers that can make it very
difficult for rivals to enter their markets. Doing so creates a more hospitable
environment in which to operate.