Image, Identity, Relationship:

A Theoretical Overview

David Phillips Lecturerhttp:leverwealth.blogspot.com

Aims of lecture

• To define and distinguish concepts of image, identity, reputation and corporate brand

• To explore the relationship between corporate identity and corporate reputation

• To discuss the role of the corporate communicator

Image, identity, reputation

Image Identity Reputation

Corporate identity

• ‘The picture of the organization that is presented to external stakeholders’

Cornelissen 2008 p69

Importance of corporate identity

• Distinctiveness: may help stakeholders find or recognise a corporation

• Impact: provides a basis for being favoured by stakeholders

• Stakeholders: by projecting a consistent identity, they avoid pitfalls of multiple conflicting images and messages

Cornelissen 2009, p65-66

Origins of corporate identity

• Initially, term was restricted to logos and other elements of visual design

• Came to be associated with all forms of communication and behaviour

Model of corporate identity

Corporate personality

CommunicationBehaviour

Symbolism

Birkigt and Stadler 1986

Developing corporate identity

• Mission (who)• Vision (what)• Culture (the way we do things)

Corporate personality

Corporate personality or corporate identity?

‘Corporate personality… is the soul, the persona, the spirit, the culture of the organisation manifested in some way. The corporate personality is not necessarily something tangible that you can see, feel or touch.‘The tangible manifestation of a corporate personality is a corporate identity. It is the identity that projects and reflects the corporate personality’.

Olins 1978

MEDIA WOM

REPUTATION

Organisational identity

Corporate identity

Products & services

CommunicationsEmployee behaviour

Cornelissen 2004, p69

Corporate Identity

• ‘the sum of all the ways a company chooses to identify itself to all its publics’ (Margulies)

• Traditionally, this meant logo and other symbols; now covers communications and employee behaviour

• ‘the self-representation of an organisation through communications, products and services and employee behaviour’ (Cornelissen)

• Tangible manifestation of corporate personality (Olins)

Communicating Corporate Identity

• The experienced and skilled communicator uses symbols, communication and behaviour to convey the identity of the organisation

(Dolphin 1999)

Communicating corporate identity

• Symbols names, logos, colours, icons, heraldry, flags, brand marks, corporate HQ, uniforms o A sign that causes one to feel, or to behave in a certain way

(Heath, 1994)o A powerful corporate tool - it may increase the attraction of

communications outputo Short, sharp message - can help the recipient to recall

something instantly

Communicating corporate identity

• Communication - verbal and visual messages• Behaviour - what the organization does and

the way it does it

Image, identity, reputation

Image Identity Reputation

Corporate image

• ‘a stakeholder’s immediate impression of an organization in relation to a specific message or image’

Cornelissen 2008 p70

Corporate Image

• ‘The immediate mental picture that audiences have of an organization.’ (Gray and Balmer)

• ‘The global evaluation (comprised of a set of beliefs and feelings) a person has about an organization’

Dowling, 2001:19

Image, identity, reputation

Image Identity Reputation

Corporate reputation

• ‘a stakeholder’s collective representation of past images of an organization (induced through either communication or past experiences) established over time’ Cornelissen 2008 p70

• ‘A good corporate reputation has a strategic value for the organization that possesses it. It ensures acceptance and legitimacy from stakeholder groups, generates returns, and may offer a competitive advantage as it forms an asset that is difficult to imitate.’ Cornelissen 2008 p69

Corporate Reputation

Important intangible asset:

“A perceptual representation of a company’s past actions and future prospects that describe the firm’s overall appeal to all of its key constituents when compared to other leading rivals”(Fombrun)

Corporate Reputation

• “A perceptual representation of a company’s past actions and future prospects that describe the firm’s overall appeal to all of its key constituents when compared to other leading rivals” (Fombrun)

• “Corporate reputations…typically evolve over time as a result of consistent performance, reinforced by effective communication, whereas corporate images can be fashioned more quickly through well-conceived communication programs” (Gray and Balmer)

Reputational assets(Fombrun and Van Riel 2003)

• Organisations with the strongest reputations are characterised by:o Visibility: the degree to which corporate themes

are visible in all internal and external communication

o Distinctiveness: the degree to which the positioning is distinctive

Reputational assets(Fombrun and Van Riel 2003)

• Authenticity: the degree to which an organisation communicates values that are embedded in its culture

• Transparency: the degree to which an organisation is open and transparent about its behaviour

• Consistency: the degree to which organisations communicate consistent messages through all channels

Identity and reputation

Culturehistory

Corporate strategy

CI-mixBehaviour

CommunicationSymbolism

Corporate reputation

PerformanceFinancial

SalesEnvironment

HRM

Based on van Riel and Balmer 1997

Aligning identity, image, reputation

Vision (managers)

Culture (employees)

Image (stakeholders)

Vision-culture gap

Image-culture gap

Image-vision gap

Hatch and Schultz 2001

Case study:British Airways to BA

• Management vision: to become ‘the undisputed leader in world travel’

• Repositioning the company: blend of traditional British and new cosmopolitan elements

• New visual identity 1997: 50 ethnic designs for tailfins

• Adverse reaction: from customers, from cabin crew (vision-image gap and vision-culture gap)

• Reversal of policy in 2000: return to Union flagCornelissen 2008 pp72-73

Linking Identity to Image van Riel, 1995: 33

Corporate Identity

Corporate Image

Communication

Symbolism

Corporate Personality

Behaviour

Behaviour

SymbolismCommunication

Corporate Personality

Identity vs Image

• Internal – External• Self – Other• Singular - Multiple

(Hatch and Schultz, 2000: 21-24)

Image v reputation

‘Corporate image is the immediate mental picture that audiences have of an organization.‘Corporate reputations, on the other hand, typically evolve over time as a result of consistent performance, reinforced by effective communication, whereas corporate images can be fashioned more quickly through well-conceived communication programs.’Gray and Balmer 1998

Transparency

• Relationship between identity and reputation should be based on transparency (ie not discrepancy)

(Fombrum and Rindova)• ‘a state in which internal identity… reflects positively

on the expectations of key stakeholders and the beliefs of these stakeholders about the firm reflect accurately the internally-held identity.’

Corporate identity planning

• Van Riel’s model (1995)1. What is our current image?2. What do we need it to be?3. What is the difference?4. What changes must be made to narrow the gap?

Managing corporate identity for image development

• conduct research to determine senior management and a range of stakeholders’ views on actual and desired image

• audit all elements of existing identity to see if they fit desired image

• formulate a plan to adjust the corporate identity if necessary

Possible objectives of Corporate Identity Policy Programme (Van Riel)

• maintain current position ( 1 and 2 are the same)

• adjust current position (1 and 2 are slightly dissonant)

• determine an entirely new position (1 and 2 are vastly different)

Managing corporate identity for image development

Researching actual and desired corporate image

• Balmer’s Affinity Audit (1996, Van Riel and Balmer 1997) • 1. Establish corporate mission and strategy• 2. Reveal dominant values and beliefs• 3. Evaluate values and beliefs against corporate mission and

strategy.• 4. Nurture values and beliefs that support the mission/strategy

Auditing existing corporate identity

• Communication and behavioural auditso behavioural audits = attitude surveys - job

satisfaction, effectiveness of policies, behaviouro communication audits = documents, verbal and

non-verbal communications• Symbols - Visual and design audit

Identity structures (Olins 1989)

• Monolithic - whole company uses one visual style eg Virgin, Shell, Sony, Microsoft

• Endorsed - subsidiary companies have own style, but parent company remains recognizable in the background eg General Motors, Nestlé, Cadbury

• Branded - subsidiaries have own style, and parent company not recognizable eg Procter & Gamble, Unilever, Diageo

Corporate brand

• Corporate branding is a recent term (extension of concept of product branding)

• Monolithic: everything branded with same company name (Disney, Coca-Cola, Nike)

• Branded: products brought to market with own name (Unilever and Procter & Gamble)

• Endorsed: Businesses and products are badged with the parent company name (General Motors, Kellogg, Cadbury)

Questions

• How do you measure corporate reputation? (eg Reputation Quotient)

• Should stakeholders become involved in corporate identity?

• Who manages corporate identity?

Selected reading

• Bernstein, D (1984) Company Image and Reality: A critique of corporate communications

• Cornelissen, J (2004) Corporate Communications: chapter 3• Cornelissen, J (2nd ed 2008) Corporate Communication• Dowling, G (2001) Creating Corporate Reputations: Identity, Image and

Performance• Fombrum, C and Van Riel, C (2003) Fame and Fortune: How successful

companies build winning reputations • Ind, N (1992) The Corporate Image• Olins, W (1999) Corporate identity