Applications of Corporate Communication: Hewlett-Packard

Emerging from bad press surrounding the departure of Carly Fiorina, Hewlett-Packard’s former CEO, Hewlett-Packard finds itself confronted with another matter that may bring negative attention to the company.  The VP of corporate communication received reports that a weekly magazine was working on a story with details of how Patricia Dunn, HP’s new chairwomen, hired investigators to spy on board members and journalists in an effort to determine who leaked details of company strategy and in-fighting.  Although the method of pretexting was legal in 2006, Congress was introducing legislation to make the practice illegal.

In an article by M. Romano , he references Steve Menaugh as saying, “The only good way to deal with bad news is to communicate”.  With the responsibility to respond to this issue, and to ensure the company’s message is consistent and reaches all of its constituents, Mr. Nash would need to consult the leaders of media relations, investor relations, and government relations with a focus on crisis management. 

Media Relations

Media services such as internet, radio, television, newspapers, and magazines, enable information to be spread all over the world.  As a result, corporate communication departments can put their press releases out electronically or through the internet.  Though the media can also damage the reputation of company, a corporation with an effective media relations strategy can also use the media to transform public opinion towards the company.  In responding to the scandal, the communications department  can use the sub-function of media relations to utilize the various media services to release HP’s response to the world.

Investor Relations

Communications to shareholders do not only deal with the financial results and fiscal projections.  Shareholders invest in companies because of their business plan, transparency, avoidance of legal disputes, as well as their credibility.  However, information damaging a company’s reputation or inhibit their ability to make a profit can affect market share value.  It is a corporation’s responsibility to their customers, shareholders, and employees to set the tone for the future.  In a crisis, the corporate leader should make decisions looking beyond the crisis and into the future.

A strong communication plan keeps stakeholders focused on strategic messages and minimizes the risk of collateral damage.  Involving the investor relations department in the communications strategy would assist HP  in shaping a company response that will address the concerns of the shareholders and ensure their confidence in the company’s future.    

Government Relations  

While more important in some industries than others, companies use their government relations department to keep track of new or amended regulations and bills that might affect the company.  HP can benefit from this relations function as arguments concerning the investigative method of pretexting are currently being heard in Congress.  Though the practice is not yet illegal, information gathered from this area would allow HP a timeline to create the company’s response before legislation is passed. 

Crisis Management

Because inefficient management of crises may lead to solutions that may be as problematic as the original crisis itself, it is important that HP’s response is consistent and addresses all constituents groups.  Crisis communications should be coordinated by the corporate communication function, and communications professionals should be involved in crisis planning as well as the person speaking to the public.  As a result, the support of the 3 communication sub-functions listed above, HP can began communications planning and create a  crisis communication strategy.