Contextual communication refers to the way information is exchanged based on the surrounding circumstances and environment. It emphasizes the importance of understanding the context in which communication occurs, including factors like cultural background, social dynamics, and situational elements. This approach helps individuals interpret messages more accurately and respond appropriately, enhancing overall communication effectiveness. In business settings, contextual communication can improve teamwork and collaboration by ensuring that all members are aware of the relevant factors influencing discussions. By considering context, individuals can tailor their messages to better suit their audience, leading to clearer understanding and reduced misunderstandings in both verbal and non-verbal exchanges.