Keeping up with the law and effective communication

With so many different effective means of communication, there definitely will be certain rules and regulations to look out for. Ethical and legal communication ensures the best practice in any business and improves credibility and reputation. It is important to know the legal obligations for communication on a business scale.

"The spam act"

The spam act makes sure that businesses that send online messages to the public follow the legal procedures, and businesses that use unethical practices of spamming are punished. Here are the regulations for the act:

1. When sending customers a message, the email must be identified clearly

2. Emails must include an 'Unsubscribe' option, allowing customers to choose not to receive any more mails.

Ethical Trade

Businesses must be honest when dealing with customers and their transactions. These are some keypoints to note when dealing with customers shopfront.

• All items sold and described on your website must be guaranteed to the customer.
• Electronic records and transactions must be kept by all businesses for future reference.

Collecting Information

Many businesses now collect personal information from customers and stored electronically for their reference. It is vital that this information is treated sensitively and ethically and not misused for any other purposes.

• Companies must let customers know why they need this information and guarantee privacy
• They must also keep the information in a secured place where it cannot be violated by anyone else.
• Information cannot be passed down without the clear permission of the customer.
• Similarly, employee's information must be kept private and stored in a place inaccessible by others.

Management Responsibilities

As the manager of your own business, it is your duty to oversee processes to make sure employees are adhearing these procedures when communicating with customers. This is a hard job, but here are a couple of pointers to make sure everyone is following these rules.

• Drafting a "Code of Conduct" will help to clearly set the ethical standards of the business so both customer and employees are aware know exactly the correct procedures.
• Having policies (eg "Use of internet"/"Use of e-mails") can inform employees of the legal requirements of communication within the business.

Beware of Barriers...

While choosing the appropriate method of communication, we must also take note of some factors that exist to prevent effective communication. We call these factors "Communication Barriers".

These barriers could cause a message being sent to be intepreted differently by someone receiving the message, which could potentially harm the business on a large scale.

It is important to know the Communication Barriers that exist, and how we can overcome these barriers to prevent misunderstandings and conflicts.

1. Language

The use of language can be intepreted differently by different people, especially if they are new or unfamiliar with the business. This is a big problem for alot of companies around the world.

Solution: Managers should use appropriate language for the intended audience. Words should be chosen carefully. Long and complicated sentences are more likely to confuse people, so simpler language is the key.

2. Technology

Though technology has highly enhanced communiation in businesses, it could potentially be a barrier as well. Messages in emails may be misinterpreted as there is an absence of body language and intonation. Technology can also add to an employee's workload if he/she is unfamiliar with the latest technology know-hows.

Solution: Use technology for appropriate situations, such as informing and reminding staff about an upcoming event or meeting. It is best not to use technology for more formal and serious events, like hiring an employee or discussing the businesses revenues.

3. Social Factors

Everyone is different. Our gender, race, age and education level determines how we see and perceive things. Due to these factors, two people can intepret the same message quite differently, which could interfere with people's understandings of words and pictures.

Solution: Ensure you are aware of the multiple ways words and particularly pictures can be perceived by different people, so as not to obscure the message intended for the other party.

So which is the MOST EFFECTIVE for YOUR business?

Both verbal and non-verbal means of communication is needed in every single company for effective communication. A variety of communications should be used but these are some that are more suited for a small business.

Creating a website could be a great start to get your business going!!

Why a website?

1. Helps improve productivity and open new markets to increase sales.
2. Your business can be established to the outside world
3. An effective tool that helps you communicate with a wide audience in very little time.
4. All relevant information can be put onto the website
5. Can be accessed 24 hours 7 days of the week by everyone

What about communicating verbally within the business?

We will definitely need communication in the business itself first before advertising the company to the public, and probably the most effective way of doing this would be arranging staff meetings.

Why should I organize staff meetings?

1. Allows issues to be discussed, opinions to be heard and queries to be clarified instantly.
2. A quick way to transmit messages across to each other.
3. Meetings allow immediate reaction to the message, which makes it easier to make sure everyone understands the message you want to get across.
4. Use of Body Language and expression allows less room for misunderstanding or miscommunication.

Effective Communication from various groups within the business (Internal Communication)

Good internal communication involves a two-way process. Employees need to be both informed and heard as well. For this to happen, a staff survey or suggestion box could be set up so employees are able to be heard and at the same time be informed about what's happening within the business.

Effective Communication between the business and companies outside your environment (External Communication)

Feel free to try other ways of communicating with your collegues, such as emails and telephones!

What are the different categories of business communication?

We must first understand the different kinds of communications in the business firms to find out the best way to communicate with your staff.

1) Downward Communication: The communication that flows from a higher level to a lower level in the business. This type of communication is needed in an organization to:

◦Transmit vital information
◦Give instructions
◦Encourage 2-way discussion
◦Announce decisions
◦Seek cooperation
◦Provide motivation
◦Boost morale
◦Increase efficiency
◦Obtain feedback

Example: An email from a team leader to their team members reminding them about an upcoming deadline for a project/ a manager informing an employee about a change in business.

Downward communication can be either formal or informal.

2) Upward Communication: The communication that flows from a lower level to a higher level in the business. Upward Communication is a mean for staff to:

◦Exchange information
◦Offer ideas
◦Express enthusiasm
◦Achieve job satisfaction
◦Provide feedback

Example: Employees annually completing attitude surveys and reviews management in a company.

Upward communication channels are usually formal, and is vital in keeping small business managers informed and up to date on how particular areas of the business is going.

3) Lateral Communication: The channel of communication between people at the same level in the business. Horizontal Communication is essential for:

◦Solving problems
◦Accomplishing tasks
◦ Improving teamwork
◦ Building goodwill
◦ Boosting efficiency
◦ Saves time

Example: A sales forecast from the sales department to the production department.

4) External Communication: the communication that takes place between the business and external groups/companies. External communication will lead to better;

◦Sales volume
◦Public credibility
◦Operational efficiency
◦Company profits

It should improve

◦Overall performancee
◦Public goodwill
◦Corporate image

Ultimately, it helps to achieve

◦Organizational goals
◦Customer satisfaction

Example: Releasing marketing materials (brochures, emails) to customers.