Question

Differentiate between Internal and External communication.

Answer 1

Sr. No.	Basis of Distinction	Internal communication	External communication
1.	Scope	Internal communication has a limited scope.	External communication has a wider scope.
2.	Flow	It may flow horizontally or vertically.	It always flows horizontally.
3.	Main Purpose	To ensure cooperation and coordination between different parts of an organisation.	To inform stakeholders and to improve the company’s public image.
4.	Statutory	Not needed under any law.	Needed under some laws, e.g. The Companies Act.
5.	Nature	Voluntary always.	Both voluntary and compulsory.