External Communication in Organizations

External communication is the transmission of information between a business and another person or entity in the company’s external environment. Examples of these people and entities include customers, potential customers, suppliers, investors, shareholders and the society at large.

A business typically engages in managing its external communications. The approach used will vary by circumstances, purpose, and the intended recipient. A business will communicate differently if it is communicating with potential customers. Every organization is required to maintain a relation with other organizations or people with a view to achieve goals. So when a business organization exchanges information with other business organizations, government offices, banks, insurance companies, customers, suppliers, leaders and general people, it is known as external communication.

This type of communication covers how a provider interacts with those outside their own organization. The goals of this type of communication are to facilitate cooperation with groups such as suppliers,investors and stockholders and to present a favorable image of an organization and its product or services to potential and actual customers and to the society at large. A variety of channels may be used for this type of communications, including face to face meetings, prints or broadcast media and electronic communication technologies such as internet.

So therefore, communication with those outside the organization is an informal exchange of information and message between an organization and other organizations, groups or individual outside its formal structure.


The objectives of external communication are as follows:

1. Community relations: Every business organization has to maintain a relation with the common people of the society so as to achieve the organizational goals.

2. Collection of information: The main objective of the communication is to collect the information from outside the organization.

3. Contracts with customers: Every organization should know the taste, liking and disliking of its customers to increase the sale of its products or services. So this communication is necessary to contract with customers

4. Relationship with suppliers: Every organization has many suppliers form that it collects raw material or finished goods to run the business. So there must be a good relationship between the firm and the suppliers.

5. Relationship with institutions: One of the most important objectives of communications is to keep a link with banks, insurance and other financial institutions.

6. Relationship with the government: Every organization should obey the rules and regulations of the government. So, through communication it can keep the relation with government agencies.