ABSTRACT
As transactions and issues confront a corporation, the corporate story becomes a compass, providing a direction and rationale for events ahead. In mergers and acquisitions (M&A), the statistics for failed transactions are surprisingly high, with the most often cited reason being the breakdown of communication in the integration phase. When companies first list on a stock exchange, in a transaction known as an initial public offering (IPO), the development of an appealing investment proposition is the basis for attracting investors. After listing, it is this proposition that becomes the platform for competing with other companies for attention in the capital markets. At times of crisis, the listed corporation not only needs to protect its reputation in resolving issues but also be mindful of how its management of events affects stock price. Across all these transactions and issues, communication is critical, not just in dealing with an event in itself but in placing around it the corporate context. It is communication that can convey an understanding of the company’s business and values to underline why it is taking the action it is. The corporate story is not a static piece of information but the way it embodies a company and its context — the combination of facts, numbers and narrative and its various forms, from phrase to strategic explanation — represents the communications armoury for entering transactions and conveying persuasion to carry participants along on the journey. Adapting the corporate story for action is an important part of its evolution.
