Business – 7.2 Business communication – Purposes of communication | e-Consult

Effective communication during a crisis is vital because:

1. Rapid information flow: It ensures that accurate and up‑to‑date information reaches all relevant parties quickly, allowing timely decisions and actions.
2. Maintaining stakeholder confidence: Clear, transparent messages reassure customers, investors, employees and the public, helping to preserve the organisation’s reputation.
3. Coordinating response efforts: Consistent communication aligns the actions of different departments and external agencies, preventing duplication and reducing confusion.

Without these communication functions, a crisis can quickly spiral out of control, leading to greater financial loss and damage to brand equity.