• Internal Code :
  • Subject Code : MGT502
  • University : Laureate International Universities
  • Subject Name :

Post 2

The specific type of business communication chosen is financial reports that serve as the medium of communication between the organisation and shareholders along with stakeholders that are involved with this organisation. The use of financial reports as a part of business communication is an effective way as it is an official manner in which the insights of organizations is revealed to its shareholders and stakeholders. This is a good source of communication and the intention of the financial statements that are revealed in the finance reports gives direction to the investors. 

The original post is comprehensive but it lacks all the plausible characteristics of finance reports that it serves by becoming a medium of communication between the company and stakeholders. The comment does not explore the full potential of financial reports that it serves in benefitting the investors and talks a little about it. The financial reports serve as the centre of an ideological struggle that occurs between various constituencies (Brennan & Merkl- Davies, 2018). This is because there are times when an investor is more powerful than the organisation and sometimes it is organisation which is more powerful than the investor. This power imbalance is always present between the constituencies of the investors. 

The financial reports serve as the medium of financial communication as it facilitates proper understanding of the employees about profit and loss. This guides them to cut the cost and take business in more successful direction. The financial communication that is done through financial reports also has a positive impact on the employee productivity. 

The original comment on the use of financial reports as a medium of business communication does not fully exploit its use with different stakeholders like employees, trainers, clients and so on. The financial communication tools prove their effectively as they are used to talk about the efficiency and productivity of the employees (Dumitru et al., 2016). 


Brennan, N. M., & Merkl-Davies, D. M. (2018). Do firms effectively communicate with financial stakeholders? A conceptual model of corporate communication in a capital market context. Accounting and Business Research, 48(5), 553-577.

Dumitru, A., Motoi, A., & Budică, A. (2016). The financial communication and financial communication strategy. Globalization and National Identity. Studies on the Strategies of Intercultural Dialogue, 445-458.

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