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Corporate Governance and Corporate Communication


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April 2006 issue of ezine focusses on "Corporate Governance and Corporate Communication"

Published in: Business, Economy & Finance
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Corporate Governance and Corporate Communication

  1. 1. India’s first corporate PR ezine VOL 1 Issue 2 Apr 06 Published by Prime Point Foundation and Chennai PR Club PR-e-FACE: “Keep pace with the changing time” The inaugural issue of PResense was “Transparency” and “Disclosures” have well received by corporate CEOs and become buzzwords in the new communicators from India and abroad. environment. Focus has been shifted Since the file size is very small, the to “stakeholders” from ”shareholders”. ezine has been forwarded by many This situation has made the role of organisations to various other people. ‘Corporate Communicators’ more Some Educational Institutions have challenging. Today ‘communication’ is even photocopied the print out and emerging as a management function. circulated amongst the students and Every organisation needs to develop Professors. The editorial team has the core competency in internal and received lot of appreciation for this external communication. new attempt. The launch of PResense has evoked interest CEOs and Corporate Communicators amongst the media also. Editorial need to update their knowledge and team re-dedicates its commitment to skills. They need to be aware of the provide quality contents and inform current trends. Professional the industry updates and trends. organisations like PR Clubs, PR societies need to reorient their In the recent months, lots of activities to keep pace with the discussions are going on in India about changing time. the “Corporate Governance”. PR-e-CISE PR-e-VIEW PRIME POINT Foundation runs two major Inside this ezine: groups on Public Relations and Corporate • An exclusive interview with Dr U Communication. Srinivasa Raghavan, Chairman, Image Management group, the global Indian Postal Board group with nearly 1200 members discusses • Ms Chitra Ramakrishna, Dy. issues at global perspective. Managing Director, National Stock prpoint group, the only Indian group with Exchange speaks on ‘Corporate nearly 500 members discusses issues in Governance’ Indian perspective. • PR Events in India and abroad To join these groups visit • Extract of group discussions Some of the best views of members • And more … extracted from the group discussions are reproduced in these columns
  2. 2. 2 PR eXCLUSIVE - An Indian wonder – Unknown story Indian Postal communication, newsletters, training Department, the centers, regular interaction etc., has second largest civil enabled us to overcome this hurdle. employer under Systematic and defined operative Central Government procedures also help. In the new with nearly 5.5 lakh thrust areas like financial services employees and (mutual funds, securities, etc), 1.56 lakh post computerisation, logistics, etc., we offices has 150 have not only gone in for massive years of tradition. This Department internal communication and training operates both the 19th century but have also encouraged employees ‘Telegraph’ (in rural areas) and the to get qualifications like AMFI latest ‘Satellite’ gadgets. They handle certification. around 7 billion registered and unregistered mails physically per Our ”Meghdoot” software produced in- annum with near perfection and earn a house for our postal operation, has revenue of around Rs. 50000 now found export market in the millions. It is the largest neighbouring countries also. conglomerate organization handling mail services, financial services, life We maintain very high level of insurance etc. They hold deposits interactions and internal around Rs. 4,000 billion spread over communication with our two major nearly 180 million savings bank trade unions and other associations. and other accounts. They are the The joint effort of the management second largest ‘life insurer’ of the and our employees, based on mutual country with very high market share in trust and respect, has enabled us to rural India, handling around 7 million manage such a volume of business policies. With this mind-boggling with highest efficiency and to face the operation, it is a wonder as to how this competition with confidence. Department maintains the highest levels of efficiency and customer Q: What is the role of confidence. In an exclusive interview Communication when we move Dr. U. Srinivasa Raghavan, Chairman, towards Corporate Governance? Indian Postal Services Board spoke to Mr Sakthi Prasanna of PResense. A: Corporate Governance Excerpts: focuses on transparency. External transparency cannot come unless Q: The average educational internal transparency exists. level of your employees is less than matriculation. How are you By a process of education, internal able to manage such a volume of communication and shared vision, we business with high efficiency and have sensitized our employees to meet managing the technology and the customer expectations. Corporate competition together? governance, we believe, is a combination of fulfillment of customer A: The average educational expectations in a transparent and qualification of most of the ethical way and total organizational departmental employees is commitment. We gear up our internal matriculation or higher. No doubt and external communications towards managing such a volume of business that goal. with high efficiency and meeting the Website : competition is a difficult task. However, effective internal
  3. 3. 3 PReSTIGE - Two pillars of Corporate Governance Clause 49 of listing respectability amongst the agreement stakeholders. Non-structured announced by SEBI information may have an adverse stipulates all listed impact. companies in India to develop good Nowadays, lots of rumours are floating Corporate around in the market about the Governance model. companies. This creates lot of Madras Chamber of Commerce and confusion amongst the public. NSE industry (MCCI) organised two days has enabled dialogue between programme at Chennai jointly with companies and the exchange to ‘verify National Stock Exchange of India the rumours’. Many companies deny (NSE) on 17th and 18th March 06, to the rumours or offer ‘No comment’. create awareness amongst the When rumours are not commented Corporate Managements on this new upon, it leads to further confusion. development. The companies which are rated as Ms Chitra Ramakrishna, Deputy “Well governed” get higher premium. Managing Director of National Stock By introducing corporate governance Exchange of India delivered the measures, the companies will be able “Keynote address”. NSE is the third to see tangible benefits. largest stock exchange in the world with listing of more than 1000 Corporate governance should now companies. Extract from the become a movement very similar to presentation of Ms Chitra: privatization. Such movements have an effect of leading to superior quality Corporate Governance stands on two service & customer satisfaction. pillars viz. (1) disclosures and (2) management of Governance structure. Companies with a paid up capital of Now the companies are moving Rs. 3 cr and above or Net worth of Rs. towards transparent regime. Greater 25 cr or more at any time in the the quality of disclosures in the history of the company are required to structured format, greater will be comply with CG norms. PResentors of PReSENSE Chief Editor and Publisher: Editorial Advisors K. Srinivasan (Prime Point) T N Ashok (Alstom) Consulting Editor: Vidya (CES Michael Driehorst, (The Lauerer Markin Onyx) Group Inc. USA) Editor: Narrendiran (Blue Lotus PR) Arun Arora (Maruti Udyog) Editorial Board: Uma Bhushan (K J Somaiya Institute) Sakthi Prasanna (Brodeur India) Meera (Aspire Systems) Feedback and contributions to: Satish (Anna University)
  4. 4. 4 PR –e- VIEW – Extract from discussion groups Prpoint Group Corporate Governance and Corporate Communication – S Ganesh – 20:20 Media, Chennai Coming back to the will be followed without compliance, it is also any questions. But if noted that if SEC (the SEBI asks us to do the governing body in US) same why do Indian asks Indian companies companies cause so (having operations in much noise pollution? US) to follow SoX, it Image Management Group Media contacting CEO directly – Mitesh Kapadia - Sentinal PR, Mumbai may not be sure of the to write. Its up to us 100% accuracy of the cc/pr guys to create info given by the PR/CC credibility for ourselves person. and this cannot come overnight! If the info given by the cc/pr person turns out This credibility can to be false the come (as has been On one hand journos management can sit mentioned by others in are always under the back and say they this forum) by knowing pressure of a deadline never said anything. the subject properly (and hence the short and by giving 100% cut of talking directly However, once a accurate info all the to the Top journo actually talks to time. Management) and on the Top Management, the other hand they he/she knows it is safe Image Management Group Brand Management – Rupali Kalav, SBI capital Markets Ltd., Mumbai Brand physique is a Brand Identity part of brand Prism…. Basically it is personality... when you an external perception assume that the brand of a brand by the is a living human multiple Stakeholders being, you can describe of the brand... Whereas how the brand looks, Brand Architecture is his traits etc.. Brand more to do with brand Reflection is a part of portfolio, graphical the Kapferer Model representations, etc.. i.e. also referred as log on and download a pdf on brand architecture...
  5. 5. 5 PR –e- VIEW – Extract from discussion groups Image Management Group Corporate citizenship and Reputation – Meena Vaidyanathan, Honeywell India, Delhi To view CSR company: activities as PR events doesn’t talk - to build and sustain employee for majority engagement organisations that - to position itself as a corporate value and endorse citizen and align itself with its CSR as an inherent brand promise through these part of their programmes business. Sure, there are fish that I agree that organisations who look for a quick succeed in building a long-term and photo-op, but the successful CSR programme are those average reader/consumer can figure who choose their programmes that out in a jiffy. CSR is today carefully and stay focussed on the key important for two main reasons for a deliverables . Prpoint Group When an exclusive story lose its ‘exclusivity’.. ?? – Mona Kwatra, DSP Merrill Lynch Limited, Mumbai The idea is that when we say - If you are a listed company, then any material info - any info that will have a material information first has to be positive or negative impact on your communicated to the stock exchange stock price, has to uniformly go out to and then only it can be disclosed to everybody at the same time. Which is outsiders or third parties. You can why people prefer to inform the exchange anytime, even disclose such info only after market late at night. (it helps if you alert them hours. to expect something before hand) Prpoint Group Using the services of freelance journalists – Deepa Kandaswamy, Professional writer, Tiruchy I was wondering why in the media. It would PR agencies especially save you money and in India don't tap the time instead of large freelancer base contacting staff for placing their stories members in the media. Visit the following link for Freelancer database in India
  6. 6. 6 PR –e- VIEW – Extract from discussion groups Image Management Group How to measure the capability of a PR Agency – Manish Rathour Well the Account mangers experience, Account parameters executive experience etc. are multiple, and one needs to 2. Competency: this covers Industry chose from a list, knowledge, Teamwork, Stability of based on the firm and staff, Writing skills etc. purpose of engagement. 3. Financial/Business : To cover Size of Broadly speaking firm, Cost of services, Methods of one can reporting results, ability to stay within categorize the budget, etc. capability around three parameters (not limited to this Ideally, do a weighted average to though) : weigh one against the other. Finally, it is also the chemistry of the 1. Experience : This can cover the organization with the agency, which number of years in industry, stature in needs to be considered. Trust this the industry, access to editors/jurnos, helps... PR – eVENTS - What is happening around the world? Third International Public Relations Conference at Iran Third International PR Conference of students are likely to participate. They Iran will be held during 12-16 invite papers to be read during the November 2006 at Tehran. Around conference. For more details contact three thousand PR professionals, Mr Mehdi Bagherian, Secretary of ICPR Academic experts, Corporate Website: Email: Communication Managers and Public Relations Council of India (PRCI) - new Chapter at Chennai launched PRCI launched the Chennai Chapter on 11th March 2006. Mr. S. D. Reuben, PRCI’s National President, Mr M B Jayaram, Chairman, Governing Council and other National level leaders participated. Mrs Geetha Shankar was elected as President of Chennai Chapter. Chennai is the eleventh Chapter for PRCI in India. Many leading Corporates participated. For details contact
  7. 7. 7 PR – eVENTS - What is happening around the world? PR Seminar at Bangalore College S R N Adarsh College, Mr. Sanjay Vir Singh Bangalore organised a IPS, Deputy Inspector seminar on 9th March General of Police. 2006 on “Corporate (third from left in the Communication” for picture). Dr C their Management Manohar, Director of students. The the Management programme was studies organised this inaugurated by programme. Delhi PR Club meeting Second meeting of the members of shared the insight about making of Delhi PR Club was held on 11th March effective newsletters. They decided to 2006 at Delhi. The meeting was hold the monthly meetings on every convened by Mr Arun Arora (Maruti). second Saturday. For details contact Members discussed various aspects of Internal Communication. Members PR – e – LEARN - Knowledge sources Crisis and Legal PR Bulletin Have you visited the Crisis & Legal PR Bulletin lately? This is a new online publication of PR News that's designed to take the pain out of crisis communications. You'll find articles written by PR News staff and crisis/legal PR experts on a wide range of relevant topics. With partner Levick Strategic Communications, the Crisis & Legal PR Bulletin offers timely strategies and tips for managing and communicating during a crisis or litigation.
  8. 8. 8 PR –eMINENCE - Useful information for Corporates Ten basic principles of PR – R. Sudarshan, Indian Telephone Industries Ltd., Bangalore 1. PR deals with facts, not fiction. the original ombudsman / woman 2. PR is public, not personal service. (conveying information back & forth) 3. PR until understanding is reached. practition- 6. PR cannot to be a guessing game. ers must 7. Intuition is not enough. (PR have the practitioner must employ the social guts to sciences - sociology, social psychology, say no to public opinion, communication study & a client or semantics). to refuse 8. The PR field requires multi a disciplinary applications. deceptive 9. PR practitioner should alert & program. advise, so that people won't be taken 4. PR practitioner should never lie to by surprise. the news media, either out-right or by 10. A PR practitioner is only as good implication. as the reputation he or she deserves. 5. The PR practitioner probably was Corporate Governance and Corp Communication – T N Ashok, Alstom Group, Delhi . Corporate Communication handles not governance just internal and external practices relating communications but also plays an to financial important role in Corporate practices or work Governance and Corporate Social philosophy or Responsibility. Through these twin functioning has responsibilities, a corporate to be accurate. A establishes a rapport with the public corporate has an and the stakeholders. Government of obligation to India is strict to monitor how best society to protect these responsibilities are enforced by the environment the companies. As Corporate in which it works and its social Governance deals with the responsibilities have to be projected in transparency and ethical practices of a the right light by the communicator. company, a corporate communicator It’s no doubt a challenging task. has an important role to play in projecting these virtues. When absent, The modes of implementation are the communicator must hold his highly restricted to the company’s ground and say “no” to bluffing to the work culture and philosophy public. Information purveyed on
  9. 9. 9 PR –eMINENCE - Useful information for Corporates Important Indian financial websites PR wire for distribution of Press Release Indo-Asian News Service (IANS) has launched a PR Corporate Wire service to disseminate corporate news and publicity material directly into the newsrooms of the media houses in India and in countries with substantial Indian presence, like the Gulf Countries, US, UK, Australia, etc. For details visit or e mail to PR eTTY - Relax Complete Communication – Arun Arora, Maruti Udyog Ltd., Delhi Dad : I want you to marry a girl of my choice. Son : I want to choose my own bride. Dad : But this girl is Ambani's daughter. Son : Well, in that case......YES. Next, the father approaches Mr. Ambani Dad : I have a husband for your daughter. Ambani : But my daughter is too young to marry. Dad : But this young man is the Vice President of the World Bank. Ambani : Ah, in that case...YES Finally, the father goes to see the President of the World Bank. Dad : I have a young man to be recommended as a Vice President. President : But I already have more Vice Presidents than I need. Dad : But this young man is Ambani's son-in-law. President : Ah, in that case.......YES.