Corporate Identity
Corporate Identity
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EJM
46,7/8 Corporate identity, corporate
branding and corporate
reputations
1048
Reconciliation and integration
Received 3 January 2010
Revised 19 August 2010
Russell Abratt
6 January 2011 Huizenga School of Business and Entrepreneurship,
Accepted 10 July 2011 Nova Southeastern University and Wits Business School,
University of the Witwatersrand, Fort Lauderdale, Florida, USA, and
Nicola Kleyn
Gordon Institute of Business Science, University of Pretoria, Pretoria,
South Africa
Abstract
Purpose – The main purpose of this paper is to explore, define, reconcile and depict corporate
identity (CI), corporate brand (CB) and corporate reputation (CR) in a framework that reflects the
dimensions of these constructs, discriminates between them and represents their inter-relatedness.
Design/methodology/approach – The paper draws on key literature relating to CI, CB and CR.
Findings – The paper develops a framework that explains and aligns the drivers of CB and CR.
Practical implications – Managers will be able to use the framework to help them align and
optimise brand and reputation building efforts of their organisation. Academics will be able to use the
framework as a basis for empirical research.
Originality/value – The article reconciles disparate views from a number of theoretical streams that
have investigated CI, CB and CR and develops a comprehensive framework that shows that although
the management and measurement of the constructs may overlap, the constructs themselves are not
interchangeable.
Keywords Corporate identity, Corporate branding, Corporate reputation
Paper type Conceptual paper
1. Introduction
The last few decades have witnessed significant growth in interest, conceptual
development and empirical research in the topics of corporate identity, corporate
branding, corporate image and corporate reputation. Studies that focus on corporate
identity (CI), corporate branding (CB) and corporate reputation (CR) research typically
are conducted within one of three domains:
(1) Problems and issues facing organisations, both in the private and public sectors.
(2) Theories and conceptual frameworks used to understand CI, CB and CR issues
European Journal of Marketing and challenges.
Vol. 46 No. 7/8, 2012
pp. 1048-1063 (3) Research methods, including research designs and analytical tools.
q Emerald Group Publishing Limited
0309-0566
DOI 10.1108/03090561211230197 This research was partially funded by the National Research Foundation of South Africa.
Given that academic researchers contribute to the literature in a number of ways, all of CI, CB and CRs:
these domains are necessary to extend knowledge and make a scholarly contribution in reconciliation
these areas. Scholarship comprises four dimensions: scholarship of discovery;
scholarship of integration; scholarship of application and; scholarship of teaching and integration
(Boyer, 1990). The scholarship of discovery is research that leads to new knowledge
(Macfarlane and Spence, 2003). Scholarship of integration refers to research that
synthesises knowledge and places it in its broader context (Boyer, 1990). Scholarship of 1049
application applies knowledge to problems (Macfarlane and Spence, 2003), whilst the
scholarship of teaching involves using the principles of good research in teaching.
This article falls into the categories of scholarship of integration and application in
that it synthesises the knowledge of CI, CB and CR to give direction to practitioners
who seek an integrated approach to managing CI and CB in order to build brand image
and corporate reputation. The purpose of the paper is to define, deconstruct and
reconcile the constructs of CI, CB and CR to provide academics and practitioners with a
consolidated framework that depicts construct definitions, dimensions and
inter-relatedness. Although a growing number of authors (see for example Nguyen
and Leblanc, 2001; Dacin and Brown, 2002; Argenti and Druckenmiller, 2004 and
Balmer and Greyser, 2006) have noted the linkages between two or all of the constructs
of CI, CB and CR, none have clearly articulated the differences and overlaps between
the constructs. At the same time chief executives and their management teams
recognise the importance of creating and maintaining both excellent reputations and
strong brands but do not know what this process entails in totality.
Figure 1.
Corporate identity,
corporate brand and
corporate reputation: an
integration
every stakeholder will experience the brand, only some will form brand relationships CI, CB and CRs:
or become part of brand communities. During these interactions, stakeholders will reconciliation
judge the brand by considering the extent to which the brand has fulfilled the brand
promise and will evaluate the brand’s personality relative to their expectations and and integration
requirements.
The corporate identity of the organisation is concerned with what the organisation
is and what it seeks to be, and comprises two parts. First, the strategic choices made by 1051
the organisation including the organisation’s mission, vision, strategic intent, values
and corporate culture and, secondly the corporate expression, which is also part of the
corporate brand.
In summary, an organisation that seeks to create positive reputations amongst its
various stakeholder groups must understand the dimensions on which stakeholders
evaluate reputation. These include, but are not limited to, the organisation’s
performance, its products and services, its citizenship activities, service, innovation,
the workplace, governance and ethics. The organisation creates its identity though its
strategic choices and corporate expression. Thereafter, it must develop a strong
corporate brand, through its corporate expression and influence of brand image. Each
element of the framework will now be discussed in detail.
3. Corporate identity
We define corporate identity as an organisation’s strategic choices and its expression
thereof. He and Balmer (2007) have identified four sub-perspectives of corporate
identity:
(1) visual identity;
(2) corporate identity;
(3) organisation’s identity; and
(4) organisational identity.
Visual identity refers to the various visual cues that a company marshals as part of its
corporate communications policy. Visual identity includes the organisation’s name,
logo, slogan, colour and anything else that is related to graphic design. Corporate
identity is an area dominated by multiple identity categorisations. Balmer and Greyser
(2003) identified six separate corporate identity types:
(1) actual identity;
(2) communicated identity;
(3) conceived identity;
(4) ideal identity;
(5) desired identity; and
(6) the corporate brand identity.
4. Corporate branding
There is little agreement in the literature as to what constitutes a corporate brand.
According to Balmer and Gray (2003) corporate brands are marks denoting ownership;
image-building devices; symbols associated with key values; means by which to
construct individual identities; and a conduit by which pleasurable experiences may be
consumed. Knox and Bickerton (2003, p. 1,013) proposed the following definition of
corporate brand, “A corporate brand is the visual, verbal and behavioural expression
of an organisation’s unique business model”.
In attempting to differentiate between the constructs of corporate brand and corporate
reputation, Corkindale and Belder (2009) note that the focus of the corporate brand building
focuses on relevancy to customers whereas reputation concentrates on legitimacy of the
organisation with respect to the stakeholders. We disagree and hold the view that the
corporate brand is integral in building corporate reputations across all stakeholder groups,
not only customers. Our perspective conforms with the views of Hatch and Schultz (2001)
who state that the corporate brand contributes not only to customer-based images of the
organisation, but to the images formed and held by all its stakeholders.
Argenti and Druckenmiller (2004), note that a company engages in corporate
branding when it markets the company itself as a brand. They state further that the
reputation of the organisation is strengthened when the corporate brand promise is kept.
According to Aaker (2004), the corporate brand defines the organisation that will deliver CI, CB and CRs:
and stand behind the offering, and will potentially have a rich heritage, assets and reconciliation
capabilities, people, values and priorities, a local or global frame of reference, citizenship
programs, and a performance record. Urde et al. (2007) define a heritage brand as one and integration
with a positioning and a value proposition based on its heritage. Balmer and Thompson
(2009) observe that corporate brands are multidisciplinary in scope and strategic in
nature and must be underpinned by the brand promise and aligned with the corporate 1053
identity. According to Balmer and Gray (2003), corporate brands are different to product
brands in terms of disciplinary scope and management, and have a multi-stakeholder
rather than customer orientation. They acknowledge that the terms corporate brands
and corporate identities are used interchangeably, but argue that there are fundamental
differences between them. According to Balmer and Gray (2003), corporate identity
refers to the distinct attributes of an organisation which addresses the questions, “who
are we? And what are we?” and is relevant to all types of organisations. They go on to
state that corporate brands on the other hand are not applicable to all organisations, and
would not for example, be necessary for a monopoly (Balmer and Gray, 2003). We
disagree, and argue that as a consequence of their formation, all organisations have a
corporate brand, whether they make explicit choices to communicate it to all stakeholder
groups or not. Organisations are identified by their name, symbols, colours, assets and
the people who work for them. We define a corporate brand as expressions and images of
an organisation’s identity. For organisations, it is the mechanism that conveys the
elements and builds the expectations of what the organisation will deliver for each
stakeholder group. Core elements of its corporate identity include corporate affinities,
products and services, and social responsibility programmes. These reflect the
organisation’s values and culture. Corporate identity is expressed through the corporate
brand in the form of visual identity, the brand promise, the brand personality as well as
by using brand communications which may be tacit or explicit. The corporate brand is
thus the interface between the organisation’s stakeholders and its identity. Organisations
seeking to build strong corporate brands must align their internal communications
activities and human resource management practices with the brand values (Gotsi and
Wilson, 2001). We argue that corporate identity is an internal organisational strategic
decision, and the corporate brand is the mechanism that allows for alignment between
the desired identity and how stakeholders “see” the identity.
5. Corporate reputation
The domain of corporate reputation draws academic attention from the management,
marketing, accounting, economics, and sociology areas (Brown et al., 2006). Corporate
reputation is much more than corporate image or corporate identity as it involves a
temporal dimension that the latter do not consider (Cravens and Oliver, 2006). Helm CI, CB and CRs:
(2007) observed that no consensus has been achieved concerning the core meaning and reconciliation
building-blocks of corporate reputation, although there is considerable agreement
about the positive effects that stem from having a good reputation. According to and integration
Firestein (2006), reputation is the strongest determinant of any organisation’s
sustainability. While strategies can always be changed, when reputation is gravely
injured, it is difficult for an organisation to recover. 1057
Reputation is rooted in the aggregated perceptions of the organisation’s
stakeholders (Fombrun et al., 2000). Fombrun and van Riel (2003) suggest that
organisations with good reputations attract positive stakeholder engagement. A
favourable corporate reputation results in business survival and profitability (Roberts
and Dowling, 2002), is an effective mechanism to maintain competitive advantage, and
can aid in building customer retention and satisfaction (Caminiti, 1992) and obtaining
favourable media coverage (Fombrun et al., 2000). Fombrun (1996) observes that
managers should pay increased attention to building and sustaining their reputation
for greater economic returns. What is not immediately clear is whether a good
reputation leads to better returns, or good financial performance leads to a good
reputation. A study by Inglis et al. (2006) failed to establish any relationship between
reputation and performance. This is inconsistent with the findings of Rose and
Thomsen (2004); Roberts and Dowling (2002) and Eberl and Schwaiger (2005) who
showed that strong reputations have a positive impact on future financial performance.
Strong corporate reputations have also been positively associated with successful
organisational relationships with clients (Ewing et al., 1999).
While the definition of corporate reputation is debatable, the one proposed by Gotsi
and Wilson (2001, p. 29) is instructive: “A corporate reputation is a stakeholder’s
overall evaluation of a company over time. This evaluation is based on the
stakeholder’s direct experiences with the company, any form of communication and
symbolism that provides information about the firm’s actions and/or a comparison
with the actions of other leading rivals.” Following a review of the corporate reputation
literature, Walker (2010, p.370) defines corporate reputation as “a relatively stable,
issue specific aggregate perceptual representation of a company’s past actions and
future prospects compared against some standard”. In his review of 43 well cited
articles, only 19 provided a definition. None of these 19 definitions had repeat citations.
Given the ongoing focus on corporate reputation in the academic literature, this is
surprising, but illustrates the lack of consensus on the construct’s definition.
Because not all organisations are companies, we define corporate reputation as: a
stakeholder’s overall evaluation of an organisation over time. This evaluation is based
on the stakeholder’s experiences with the organisation and its brand(s), relationships
with these and the organisation’s employees and representatives, memberships of
brand communities and, any other perceived communication and symbolism that
provides information about the organisation’s actions and /or a comparison with the
organisation’s rivals.
Stakeholder theory recognises stakeholders may vary in their expectations of a
company (Freeman, 1984). Adopting a stakeholder perspective enables marketers to
better understand and leverage relationships between the firm and its stakeholders.
According to Freeman (1984) “a stakeholder in an organisation is (by definition) any
group or individual who can affect or is affected by the achievement of the
EJM organisation’s objectives”. Not all stakeholders have the same influence. Wheeler and
46,7/8 Sillanpaa (1997) and Clarkson (1995) categorise stakeholders by the level and nature of
their influence as primary or secondary ones. Primary stakeholders interact with the
organisation on a regular basis and include shareholders, customers, employees’
suppliers, investors and other business partners. Secondary stakeholders typically do
not transact regularly with the firm and include government, the media, social pressure
1058 groups and competitors.
In developing a corporate identity and the corporate brand, it should be recognised
that some stakeholders are more important than others. Organisations seeking to
change stakeholder’s images and reputational perceptions will need to change some
aspect of their strategic choices, and or their corporate expression. Either elements of
their corporate identity will have to be changed or the brand expression will need to be
tailored.
Identification of the dimensions that drive stakeholders’ perceptions of the
organisation is integral to successful reputation management (Gabbioneta et al., 2007).
Managers need to build an understanding of these in order to focus their efforts in
building and managing corporate reputation. A review of the literature evidenced
varied recipes that purported to comprise the dimensions of corporate reputation.
Walker (2010) and O’Callaghan’s (2007) state that these dimensions are issue specific
for each stakeholder and/or company and a one size fits all approach to corporate
reputation fails to consider the complexity inherent in managing corporate reputation.
Dimensions used to assess corporate reputation include environmental practices
(Toms, 2002), sound leadership and good management practices including the personal
reputation of top management, investments in good governance, competence
development including training and relevant compensation packages (Dowling,
2004), engaging in socially responsible behaviour (Brammer and Pavelin, 2004) and
displaying high ethical values (Porter and Kramer, 2006). Having quality products,
products that are safe and service levels that fit the needs of customers are also
important in reputation building, as is evidence of innovations in production processes
that bring down costs and introduction of new products that satisfy needs (Cravens
et al., 2003). Another key to gaining a positive reputation is to be seen as a good
employer, to respects the rights of workers, and to remunerate and reward
appropriately (Gatewood et al., 1993). Ethical conduct, particularly as it is associated
with the brand, is another driver of reputation. According to Fan (2005) branding is a
social construct as well as an economic construct. Ethical branding relates to certain
moral principles that define right and wrong behaviour in branding decisions. Ethical
brands make a positive contribution to the public good and do not harm the public
good (Fan, 2005). We believe that the main drivers of reputation emanate from the
organisation’s corporate identity as they are all strategic choices that leaders have to
make. In addition they are also linked to what we term corporate expression, and thus
are also part of the corporate brand.
6. Conclusion
Although the importance of CI, CB and CR is recognised by academics and managers,
the lack of scholarship of integration has resulted in a difficulty on their part to
integrate these concepts in a cohesive approach. We have presented a comprehensive
framework that reconciles and integrates these constructs. We have suggested that
corporate identity and corporate branding are key drivers of an organisation’s CI, CB and CRs:
reputation management. We also highlight the key role of stakeholders in forming the reconciliation
organisation’s various reputations.
We make the point that reputation is a strategic resource that creates a competitive and integration
advantage for an organisation. The building blocks of reputation management are not
always clear, but we have attempted to identify these in Figure 1. Every organisation
seeks to build a strong positive reputation amongst its stakeholders who need to be 1059
considered when organisations make strategic choices. Leadership needs to establish
their corporate identity by asking and answering the questions of who and what the
organisation is, and what it seeks to be. This will set the stage to develop the mission,
vision and strategic intent. It will also create a platform to articulate the core values of
the organisation and establish an appropriate corporate culture. We have argued that
this is the first stage of the development of an organisation’s corporate identity.
The second stage of corporate identity development is the formulation of what we
term the organisation’s corporate expression. Corporate expression includes decisions
about the organisation’s visual identity, brand promise and brand personality and how
these will be communicated across stakeholders groups. Thus, corporate expression is
not only part of corporate identity development, but it is also a major component of
corporate brand development. The corporate brand is developed by management on a
continuous basis not only through the decisions made about its corporate expression,
but also through creating brand images in the minds of stakeholders.
We have argued that corporate branding comprises two components, firstly the
creation of corporate expression by the organisation, and secondly the creation of
brand images for all stakeholders through the provision of good brand experiences
which enable them to form strong brand relationships and to support brand
communities where relevant. As stakeholders experience, relate to and commune with
the brand, they are afforded opportunities to evaluate the brand on a number of core
dimensions. When considered in totality over time, these form the organisation’s
reputation. It is important for an organisation’s leaders to consider these dimensions
when formulating the corporate identity by making strategic choices and building
corporate expression.
Practitioners seeking to build their reputations need to take stakeholder dimensions
of reputation into account when they decide who they are and wish to be, and how they
express this to their respective stakeholder groups. Building strong reputations
requires strategic choices by an organisation to align decisions around strategy,
culture and corporate communication. In addition, marketing communication, human
resources and operations functions must build on these by working together to
communicate and deliver brand experiences in order to build strong reputations across
stakeholders. Rather than continuing to focus on construct conceptualisation and
integration in the fields of CI, CB and CR, what is now needed is additional empirical
research to test the validity of the constructs and relationships proposed. Whilst the
corporate identity literature has always considered multiple stakeholder groups,
literature on corporate branding has tended to focus only on customers and more
recently on employees. Although the two constructs overlap, each has its place in
stakeholder research. Both are multi-stakeholder constructs with corporate expression
as their binding force. We therefore call for academics to recognise the importance of
both corporate identity and corporate branding when determining how to build
EJM organisational reputations. There is an opportunity for academic researchers in the
46,7/8 area of corporate branding to extend their research on brand experience, brand
relationships and brand communities beyond customers as stakeholders to all
stakeholder groups.
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