Unit 1 - Reputation Management

INTRO:

Comm with stakeholders - NB. Stakeholders have different expectations & demands. One way of achieving comm with these different stakeholders is to:

  • strategically project a positive image of org
  • defined as a corporate ID
  • to build, maintain & project strong reputations with stakeholders.

Benefits of strong reputation:
-stakeholders accept & support org
-1st choice status with investors, customers, employees & other stakeholders
->Customers: signal for quality of product/service
->Employees: prefer to work at org with strong reputation, they commit more, work harder & better.


This unit focusses on how orgs manage the process of reputation management.

What is corporate reputation?

Various definitions from various disciplines. We focus on reputation management in context of developing a comm strategy.
Griffin:
-an individual: what people think about you affects how they treat you
-an org: people think good/bad things about your org based on how they see the world & the overall impression created by these various perceptions is corporate reputation.
-Reputation can be changed by what you do or changing how you explain what you do (comm)


= The combined opinion of an orgs complete nature, based first and foremost on the past dealings with stakeholder groups by org. It is intangible. It is a possible source of sustainable competitive advantage & it is positively related to org achievement.

OBJ 1: Explain the characteristics of an org with a strong reputation

Key to strength of orgs reputation is the degree to which the values it communicates are authentic & distinctive. An org with good reputation has high levels of:

VISIBILITY

  • Degree to which corporate themes are visible in internal & external comm.

DISTINCTIVENESS

  • Degree to which corporate identity/positioning of org is distinctive.

AUTHENTICITY

  • Degree to which org communicates values that are embedded in culture.

TRANSPARENCY

  • Degree to which org is open & transparent about its behaviour

CONSISTENCY

  • Degree to which orgs communicate consistent messages through all internal & external comm channels.

Corporate image management

The management of corporate image gives a symbolic dimension to corporate communication


CC is now not only giving info & receiving info (information dimension) but also symbolically crafting & projecting a image for org


These two blend together & is hard to separate e.g. Tesco


  • Thus, corporate image management is NB part of CC and it involves
    -> corporate ID, corporate image, corporate reputation, corporate branding & corporate culture.

Definitions:

Corporate ID = The way org members perceive & think about org & how they identify with org. This is based on and results in how org presents, positions and differentiates itself visually & verbally at corporate, business & product levels.


  • It thus does not only refer to internal stakeholders but to impressions of org members.

Corporate image = How stakeholders (external) perceive and interpret the ways in which an org manifests itself. It is generated through exposure to identity and relates to experiences, beliefs, feelings, knowledge, associations & impressions that each stakeholders has about org.


  • It thus does not only refer to external audiences but image does reside in minds of audience.

Corporate culture = The cognitive instrument that translates identity into image.

Corporate reputation = A relatively stable, issue specific aggregate perceptually representation of a company's past actions & future prospects compared against some standard.


  • The sum of all images of org.

Corporate branding = Describing the way in which companies develop & build reputations.

OBJ 2: Critically discuss the advantages of investing in and developing a corporate image

1. Distinctiveness

  • A corporate image may help stakeholders find/recognize an org
  • It creates awareness, triggers recognition & may instill confidence among stakeholder groups as they have a clearer picture of org.
  • Inside org it can help raise motivation & morale by establishing a "we" feeling & allowing people to ID with org.

2. Impact

  • It provides a basis for being favoured by stakeholders
  • This may have direct impact on orgs performance when stakeholders support org in form of buying, investing in org or not opposing it decisions.

3. Stakeholders

  • Individuals may have more than one stakeholder role in org e.g. employees are also consumers
  • If image projected is consistent, conflicting images & messages will not cause problems

OBJ 3 intro: Describe the attributes of a corporate identity, and apply these to practical examples

-> Originally identity was concerned with design & how orgs present themselves - it was restricted to logos & other elements of visual design (symbolism)


-> Gradually it started to include all forms of communication (corporate advertising, sponsorship etc) & all forms of outwards-facing behaviour in marketplace.


-> It has 3 attributes - referred to as CORPORATE ID MIX:

  • Symbolism
  • Communication
  • Behaviour

-> Birkigt & Stadler - 1st model of corporate image management. According to this model, orgs communicate & project an image of themselves to stakeholders through these attributes


-> These attributes are the way in which orgs are perceived by stakeholders - image.

Symbolism

  • Logos & company house style
  • Eg: slogans, typeface, corporate colours stationary, etc.

Communication

  • All planned forms of communication
  • Eg: advertising, events, sponsorship, publicity, promotions.

Behaviour

  • All behaviour of employees (from manager to shop assistants) that leave impression on stakeholders
  • Eg: customer service

OBJ 4: The process of corporate identity management

The aim of corp ID management is to establish a favorable image or reputation, with orgs stakeholders which is hoped will be translated in stakeholders to: buy orgs products/services; work for org; invest in it (org performance)


-Thus, good corp reputation has a strategic value for org. It ensures acceptance & legitimacy; generates returns; offers competitive advantage that is difficult to imitate


-Reputation & identity are an intangible asset of org as:

  • It has potential value creation &
  • It makes it difficult for others to replicate

This intangible asset is based on orgs core values in its history & culture (personality) that informs every part of org strategy including identity (symbols, communication & behaviour) that reflects image that forms reputation.

4a) Birkigt & Stadler's model of corporate identity

Birkigt & Stadler's model of corporate image management, focusses on corporate identity. It is one of the 1st models of corporate image management and is called the model of corporate identity.


Through the attributes of ID, org communicates & projects an image of themselves to their stakeholders - this is by which they are perceived - this is corporate image.

4b) Implications of the model of corporate identity

->Identity is broad concept that includes more than logos & advertising. It has bearing on different functional areas e.g. CC responsible for symbolism & comm; product & brand managers responsible for position of products/services; HR responsible for behaviour.


-> Identity (outward presentation of org) should come from understanding orgs mission, vision & culture (core values) (personality of org)

  • Vision & mission: who & what of org
  • Mission can include beliefs (imbedded in culture & strategy) & suggestions of how org wants to be known by outside stakeholders.

4c) ID is based on & includes corporate personality

Difference between corporate ID & corporate personality (CP) =

CP:

  • The soul, the personal, the spirit, the culture of org.
  • Not necessarily tangible
  • Based on deeper patterns of meaning & sense-making of people in orgs & includes core values that define org
  • This is embedded in strategy (vision, mission)

ID:

  • The tangible manifestation of CP
  • It is the ID that projects & reflects the reality of the CP
  • The construction of an image of org to differentiate a company's position in eyes of stakeholders.
  • It is based on CP and strategy

4d) More info on ID

ID not only visible outward presentation of org, it is also a set of characteristics/traits that give org specificity, stability & coherence (it is concerned with what org is - their core as laid down in strategies & culture)


ID thus includes:
-Org ID: Personality traits (what org is) and sense of individuality & uniqueness (anchored in a combination of geographical place, nationality, strategy, founding, core business, technology, knowledge base, operating philosophy & org design). The particular combination of ID anchors inspire a set of core, distinctive values e.g. Sony & Virgin



-Corp ID: Outward presentation & comm of org ID.


-> Theoretically ID refers to both strategic comm to external stakeholders as well as internal patterns of meaning-making & identification within org.

4e) Draw & discuss the process of corporate identity management (figure 4.2)

-> Culture & history

(corporate personality/org ID) - includes core values of org


The above is incorporated in:

-> corporate strategy

.

-> Corporate ID mix (behaviour, communications, symbols)

is based on core values & strategy and reflects an image


The ID mix & image affects:


-> Corporate reputation

ID mix & reputation affects:


-> org performance, financial performance, sales, environment, human resource management etc. This in turn affects reputation as well as culture & history.

3 Main Theoretical traditions on identity in management research - seen as relationship between social, org and corporate identity.

Social Identity - smaller groups

  • How individuals define themselves in terms of memberships of groups/professionals/depts.
  • Their knowledge that they belong & the emotional & value significance of that group membership
  • This process happens more or less automatic
  • To feel good about themselves, individuals compare their group with the other groups to see themselves different & better than others.
  • In org this can manifest in social identities, around professionals or gender, seniority etc
  • This differentiation must not be unhealthy.
  • e.g. I am engineer and proud of being in this dept.

Organisational Identity (CP, strategy) (whole org)

  • The self-definition of org- who we are as org
  • The shared meaning that an org is understood to have that arises from members' awareness that they belong to it
  • It focusses on entire org
  • Individuals must have common sense of values & traits that they share as org
  • It cuts across social identity boundaries & aims for common orientation of all in org
  • Not only is identity determined here, but members should identify with those values & character. Thus a source for identification & sense of belonging & can channel energies into behaviour that support org in realizing goals.
  • Org identity is an active process & CC plays NB role.

Corporate ID (publics)

  • The distinctive public image that an org communicates that influences stakeholders' image and reputation of that org.
  • The picture of org presented to external stakeholders - grounded in core values & traits that members or org associate with the org & that defines org's vision & mission (Org ID)
  • If org ID & Corp ID is naturally connected -orgs project a coherent (shared), distinctive & authentic (not cosmetic) image of themselves.

4f) What does it mean for CC?

The picture presented to external stakeholders (Corp ID) should be grounded in the core values & traits that members of the org themselves associate with & that defines org's mission & vision (org ID)


Corp ID & Org ID are 2 sides of some coin with Corporate comm.


Developing a corp ID must start with an analysis & understanding of core values of org in its mission, vision & culture.


CCs must facilitate dialogue about definition of org's ID as well as communicate an external picture that has an effect upon believes & values of employees (the org ID) as employees mirror themselves in message sent out.

OBJ 5: Critically discuss the role of corporate branding in creating distinctiveness for an org

⭐ A key driver for strength of orgs reputation is the degree in which the values that it communicates is authentic & distinctive (unique)


⭐ As seen above CCs find distinctiveness NB in Corporate ID as it enables org to differentiate itself from competitors & attain a preferred position in the minds on consumers & stakeholders.


⭐ Corp branding is seen as alongside corp ID these days because of the importance of distinctiveness.


⭐ Corp branding is similar to product branding but the focus is now not on products & brand benefits for consumers but on the whole org as a brand (it makes the org stand out from the rest - distinctive)


⭐ The distinctive ID of the org is the core foundation of corp branding & forms a key differentiator in the marketplace - not much different from traditional corp image management.

The focus of corporate branding - how org can formulate enduring CID that is relevant to all stakeholders.


The core of CB is the alignment of org vision, culture & image.

  • Culture & image: how org & its ID are seen by employees (culture) & external stakeholders (external image)
  • Vision: adds strategic dimension to above - by setting direction for ways to maybe transform who we are might change image internally & externally e.g. Unilever

Lastly, the role of all employees become very NB in VB as employees are brand ambassadors. ID behind brand must come from all.

  • Org provides support to employees e.g. brand manuals, briefings, workshops for them to know brand as well as live & enact it as part of their jobs - regardless if they are in contact with stakeholders

OBJ 6: Distinguish between a monolithic corporate ID and a branded ID

MONOLITHIC Identity Structure

  • Refers to corporate brand
  • Single all-embracing ID of org (products/services, buildings, official comm & employee behaviour all carry same corporate name)
  • e.g. Disney, Coca-Cola, Nike, McDonalds, Walmart, Sony, BMW, Virgin.

BRANDED Identity Structure

  • A structure whereby individual businesses or products & services each as their own brand name & values (and are seemingly unrelated to each other)
  • Effective when org is addressing very different market segments through different products & businesses.
  • e.g. Procter & Gamble (Ariel, Ola), Electrolux (Zanussie), Unilever (Dove)

ENDORSED Identity Structure

  • Individual businesses & product brands are unique, but are endorsed or badged with parent company name
  • e.g. General Motors, Kellogg, Nestle, Cadbury.

An increasing number of orgs that previously used branded ID are moving toward monolithic corporate IDs or endorsed ID e.g. Kinfisher & Unilever. They want their product brands more strongly associated with company name.


REASONS:


  • Monolithic IDs are valuable assets. It has strong impact on financial performance of org
  • Market values of reputation can be more than twice their book values
  • It can save money in marketing & comm campaigns
  • Customers are increasingly interested in the corporation behind the brand
  • Recognizing the point of difference from competitor brands often rest on corporate values, company-wide technology & intellectual property or specific org capabilities e.g. technology & automotive brands but also clothing brands e.g. Burberry

2 Terms included in the explanation of the move to monolithic:
-> Points-of-parity = are features not unique to org, can be shared, but is NB stakeholders. It is not prime reason for choosing brand, but if not there they will choose another
-> Points-of-difference = are stakeholder relevant features that no other brands have. Forms basis for superiority over competing brands


From these 2 terms come:


Points-of-difference & reasons to buy product is increasing based on org capabilities, values, technology (corporate brand) or more generally associations with the org as whole.
-Besides claim of distinctiveness a degree of similarity to other companies is also NB