Corporate Image and Its Implications in Society: Gaitri Kumari Assistant Professor Amity University Jharkhand

Module 1
Corporate Image and its

implications in Society
Gaitri Kumari
Assistant Professor
Amity University Jharkhand

Understanding Corporate
Image
Corporate image, or reputation, describes the manner in which a company, its activities, and
its products or services are perceived by outsiders. In a competitive business climate, many
businesses actively work to create and communicate a positive image to their customers,
shareholders, the financial community, and the general public. A company that mismanages or
ignores its image is likely to encounter a variety of problems.
In businesses of all sizes, it is vital that managers recognize the importance of creating and
maintaining a strong image, and that they also make employees aware of it. Corporate image
begins within the offices of a company's managers. It should be based on the development of
good company policies, rather than on controlling the damage caused by bad company
policies. Young recommends that business owners and managers take the following steps
toward improving their companies' image: focus on the firm's long-term reputation; base
actions on substantive policies; insist on candor in all business dealings; and uphold the
stakeholders' right to know. After all, he notes, a good corporate image can take years to build
and only moments to destroy.
IMPORTANCE OF
CORPORATE IMAGE
Several factors have contributed to the increasing importance of corporate image in recent
years. For example, the business climate in the United States has become one of
environmental complexity and change. This has forced many business enterprises to
significantly alter their strategies to better compete and survive. The acceleration of product
life cycles is another vital dimension of the turbulent business environment. Globalization has
been still another catalyst in the rise of corporate image programs, as companies have sought
ways to spread their reputations to distant markets. A related factor is that as a corporation
expands its operations internationally, or even domestically, through acquisitions, there is a
danger that its geographically dispersed business units will project dissimilar or contrary
images to the detriment of corporate synergy.
A final factor stimulating the current interest in corporate image is society's growing
expectation that corporations be socially responsible. Many of today's consumers consider
the environmental and social image of firms in making their purchasing decisions. Some
companies have recognized this reality and reaped tremendous benefits by conducting
themselves in a socially and environmentally responsible manner. Some of these companies
act out of genuine altruism, while others act out of a simple recognition of the business
benefits of such behavior.
Managing Corporate Image

In the process of managing corporate image, the fundamental variables are:
corporate identity, corporate communication, corporate image, and feedback.
Corporate identity is the reality of the corporation—the unique, individual personality
of the company that differentiates it from other companies. Corporate
communication is the aggregate of sources, messages, and media by which the
corporation conveys its uniqueness or brand to its various audiences. Corporate
image is in the eye of the beholder—the impression of the overall corporation held by
its several audiences. The objective in managing corporate image is to communicate
the company's identity to those audiences or constituencies that are important to the
firm, in such a way that they develop and maintain a favorable view of the company.
This process involves fashioning a positive identity, communicating this identity to
significant audiences, and obtaining feedback from the audiences to be sure that the
message is interpreted positively. An unsatisfactory image can be improved by
modifying corporate communication, re-shaping the corporate identity, or both.
CORPORATE IDENTITY
Corporate identity—the reality and uniqueness of the organization—may be broken
down into four component parts: corporate strategy, corporate culture, organizational
design, and operations. Strategy is the overall plan that determines the company's
product/market scope and the policies and programs it chooses to compete in its
chosen markets. Corporate culture is the shared values and beliefs that the
organization's members hold in common as they relate to each other, their jobs, and the
organization. It defines what the firm's personnel believe is important and unimportant,
and explains to a large degree why the organization behaves the way it does.
Organizational design refers to the fundamental choices top managers make in

developing the pattern of organizational relationships. It encompasses issues such as
whether basic tasks should be organized by function or product division, the
company's overall configuration, the degree of decentralization, the number of staff
personnel, the design of jobs, and the internal systems and procedures. Operations, the
fourth and final component of corporate identity, is the aggregate of activities the firm
engages in to effect its strategy. These activities become part of the reality of the
corporation and can influence its identity in a wide variety of ways.
CORPORATE IMAGE
Corporate image is the reputation of the firm with the various audiences that are
important to it. These groups that have a stake in the company are known as
stakeholders. Stakeholders are affected by the actions of the company and, in turn,
their actions can affect the company. Consequently, its image in the eyes of its
stakeholders is important to the company. The principal stakeholders with which most
large corporations must be concerned are: customers, distributors and retailers,
financial institutions and analysts, shareholders, government regulatory agencies, social
action organizations, the general public, and employees.
The image that stakeholders have of the company will influence their willingness to
either provide or withhold support. Thus, if customers develop a negative perception of
a company or its products, its sales and profits assuredly will decline. Government
regulatory latory agencies, another important set of stakeholders, are required by law to
monitor and regulate firms for specific, publicly defined purposes. Nevertheless, these
agencies have considerable discretion in how they interpret and apply the law. Where
they have a positive perception of the firm, they are likely to be much less censorious.
CORPORATE COMMUNICATION
Corporate communication provides the link between corporate identity and

corporate image. It should be defined in the broadest possible sense,
because companies communicate identities in many different ways.
Communication can include almost anything the company does, from the
way telephones are answered to the involvement of company employees in
community affairs. Some of the principal sources of corporate
communication include company and product names and logos, formal
statements (mission statements, credos, codes of ethics, annual reports,
advertising copy, and company slogans), and behavior during important
events. These events encompass scheduled events such as open houses
and anniversary sales as well as unscheduled events such as lawsuits or
negative press coverage.
FEEDBACK
Feedback is essential to the management of corporate image. Business

owners and managers need accurate information on how they and their
company are perceived if they are to make sound decisions. Ideally, feedback
should be continuous. As a practical matter, continuous feedback can be
elicited from salespeople, clients, employees, and other local business
owners. Based on such input, modifications may be made in the company's
communication methods or, if warranted, a formal study of the corporate
image may be initiated. In addition to systematically utilizing internal sources,
it is prudent to undertake a serious review of the business's reputation (both
internally and externally) on a regular basis.
Corporate Image building

exercise
The exercise of image building starts with evaluating the status, understanding the
current perception for the brand in general and publics specific. It’s followed by
deciding the image to be build or need of alteration and activities involved to do so.
The data collection to gauge the present image can be done by:
▪ Interviews and interactions with the target group. Various structured survey
tools or talks and interactive communication can be employed for this data collection.
▪ Secondary sources like articles published media coverage and mentions

about the brand are analysed to check the perception.
The data collected forms to be the basis of the analysis of the image. Breaking down
the data gets you the image at the time of data collection and should be read with
reference to the source of data. It may vary from time to time and from publics to
publics.
Aspects of analysis
Public Opinion Research: It is to ascertain what people think
about the brand, its management, services, etc. Essentially,
understand the attitude of publics towards the organisation.
Image Study: Understand how and what is the organisation

known for; analysing brand’s reputation.
Motivation Research: It is to ascertain why the public carries a

positive or negative attitude towards the organisation – the root
cause(s) – and also the underlying emotional factor.
On the outset the image could be favourable, neutral or

unfavourable & undesirable. And that’s to be gauged.
Desired image
Brand may like to project a certain preferred image while the
present image may or may not fall in line with its expectations. The
‘Mission Statement’ of the brand helps identify the image to be
projected and the role of public relations is to narrow it down and
bring in sync with the desired positioning as well. For instance a
banking or financial institution may want to be known for its
integrity, honesty and efficiency in asset management but may like
to project a ‘speedy’ or ‘friendly’ or ‘socially responsible’ image.
Based on the analysis of existing image and the desired image an

action plan is to be drawn and suggested by the PR. In case the
image is way deviated and degenerated as compared to the
expectations a neutralisation activity or crisis management
exercise is to be undertaken.
Steps to Image building
▪ Adopt appropriate strategy
▪ Choose appropriate message
▪ Select appropriate media
▪ Disseminate information actively
▪ Keep analysing the response

Effectiveness survey
Post all public relations’ image building exercise an
effectiveness survey must be conducted so as to measure the
impact. Sole purpose of the survey is to ascertain the change
in attitude of the people after campaign. The survey also gives
data points to help sketch better campaigns in future. It’s a
continuous process that leads to better image building and
maintaining.
Public relations’ role is not to project the negative with a

positive image but to open the communication channels,
remove the myths, doubts and suspicions. Thus changing the
shade of light that’s to be shed and bringing the best face of
the organisation forward.
Corporate Image Building
• A marketing exercise
• An overview to marketing
• Understanding the Marketing Mix

Corporate Image and Its Implications in Society: Gaitri Kumari Assistant Professor Amity University Jharkhand

Uploaded by

Copyright:

Available Formats

Corporate Image and Its Implications in Society: Gaitri Kumari Assistant Professor Amity University Jharkhand

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Corporate Image and Its Implications in Society: Gaitri Kumari Assistant Professor Amity University Jharkhand

Uploaded by

Copyright:

Available Formats

Module 1

Corporate Image and its

Amity University Jharkhand

Managing Corporate Image

Organizational design refers to the fundamental choices top managers make in

Corporate communication provides the link between corporate identity and

Feedback is essential to the management of corporate image. Business

Corporate Image building

▪ Secondary sources like articles published media coverage and mentions

Image Study: Understand how and what is the organisation

Motivation Research: It is to ascertain why the public carries a

On the outset the image could be favourable, neutral or

Based on the analysis of existing image and the desired image an

▪ Adopt appropriate strategy

▪ Choose appropriate message

▪ Select appropriate media

▪ Disseminate information actively

▪ Keep analysing the response

Public relations’ role is not to project the negative with a

• Understanding the Marketing Mix

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.