Managing Corporate Image and Corporate Reputation
Introduction
In the not too distant past, corporate reputation and image were rather vague concepts that were perceived to be, at best, of peripheral concern to senior management. Typically, they were seen as the province of the public relations department and design consultants. Today, however, an increasing number of astute executives recognize them as critical corporate assets directly linked to competitive success. Of course, as current academic writers such as Van Reil (1995)[1] and Forbrum (1996)[2] have argued, these factors have always conferred strategic leverage. But the pervasive blurring of boundaries between organizations and their stakeholders in todays business world[3] has highlighted the need to strategically manage corporate reputation and image. Moreover, ongoing discrete trends such as globalization, merger mania, deregulation and privatization, and the acceleration of product life cycles has created a sense of urgency for many firms. In this paper we set forth an operational process framework to help beleaguered executives manage reputation and image as strategic corporate resources.The concepts of corporate reputation and corporate identity represent a relatively new and supplemental lens through which top management can address the strategic issues facing their firm. To help guide the thinking of senior executives in managing their organizations reputation and image, the authors present a pragmatic operational model. The model shows that in addition to an understanding of corporate reputation and image, managers needs to understand their firms corporate identity and corporate communications, and the interrelationships amongst these components. The authors argue that in todays sensitive business milieu, a firms ultimate survival may well depend on developing and maintaining a recognizable image and favorable reputation.
Section snippets
Operational Model
Clearly, senior executives are being compelled by events to think in terms of their companys reputation and image and how to manage them. To help guide their thinking, a pragmatic operational model is presented here (see Fig. 1) and then explored in greater detail in the remainder of the paper. The model proposes that the fundamental components of the process are corporate identity, communication, and, of course, image and reputation. It traces the interrelationships amongst these components
Corporate Identity
Corporate identity, as explained above, is the reality and uniqueness of the organization. Its principal components are the companys strategy, philosophy, culture, and organizational design. Strategy is the master plan that circumscribes the companys product⧹market scope, its overall objectives, and the policies and programmes through which it competes in its chosen markets. It results in a system of activities through which the company provides value for its customers.[5] To illustrate,
Corporate Image and Reputation
Corporate image, as stated earlier, is the immediate mental picture that audiences have of an organization. Corporate reputation, on the other hand, indicates a value judgement about the companys attributes. 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 programmes. Corporations want to project an accurate and positive
Corporate Communication
As evinced in the model, corporate communication is a critical link between the corporate identity and the corporate image and reputation. It subsumes all communications to the companys multiple stakeholders who, in turn, through secondary and tertiary interpersonal communication may further influence the companys image and reputation. The methods and channels of corporate communication should be defined in the broadest possible sense because stakeholders are influenced in many different ways.
Feedback
Feedback is essential to management of corporate identity. Without it company executives are flying blind. They need accurate information on stakeholder perceptions if they are to make sound decisions. Ideally, feedback should be continuous. As a practical matter, continuous feedback can be approximated by eliciting input concerning stakeholder perceptions from salespeople, public relations executives, finance managers, and other employees who routinely interact with stakeholders. Based on such
Conclusion
The concepts of corporate reputation and image represent a relatively new and supplemental lens through which top management can view and address the strategic issues facing the firm. This perspective envisages the companys reputation and image as vital strategic resources. The model presented here offers a framework for managing the process through which these critical assets are created and preserved. Essentially, the companys identity is translated into an image in the eyes of its several
References (11)
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