CORPORATE IDENTITY

A corporate identity is everything that is seen that promotes the business – the logo, business
stationery, brochures, website etc. This is what most people assume is a brand, but this is just the
visual identity. As I like to say “Apples don’t sell computers”. The brand does that. The apple simply
tells us where to buy the product and who owns the product. It’s something that we can easily
recognize and identify. Ownership is a big part of branding, so it’s important to have a logo and
collateral that will allow people to ‘own’ the brand. This might mean them wearing it on their chest,
cap or even skin.

To help with branding a business, these elements all need to have continuity and look as though
they ‘belong’ to the same company.

Maintaining the same colors, fonts and tag lines are all ways of getting your customer to recognise
that it is your business. We all know the ‘NIKE’ tick, or the ‘Coca-Cola’ red. These companies have
taken their corporate identity and used it to gain international recognition.

CORPORATE IMAGE
Corporate image on the other hand is how the public perceives you – this is also referred to as your
brand. Simply put, your brand is what people say about you when you’re not in the room. Your
brand, or your corporate image, is your reputation. It represents everything in your business. Yes
your logo fits into the brand but it is not your brand. Your language, tone, culture, experience,
promise, purpose, commitment, what you stand for, how you train your team and everything in
between is all part of your brand.

A business might also create a corporate image or brand by the way they deal with customers or the
experience they create for them. If people have to make an appointment to be seen, they will get
the perceived impression that the business is busy and that their time is precious. This in turn could
give the organisation a higher profile image, and in some cases make the business appear larger than
it is.

Your corporate identity and image need to compliment each other to be effective.
“Corporate image" was once advertising jargon but is today a common phrase referring to a
company's reputation. The "image" is what the public is supposed to see when the corporation is
mentioned. The ordinary man and woman on the street usually have a wry view of public relations,
advertising, hype, hoopla, and therefore also of corporate image—and this often for good reasons.
But a good corporate image is a genuine asset; it translates into dollars at the counter and higher
stock valuation.

The concept is usually associated with large corporations, but small businesses also have a corporate
image even if neither their owners nor customers think of it that way. In the absence of active
efforts, corporate image "simply happens": it is how a company is perceived. Management,
however, may actively attempt to shape the image by communications, brand selection and
promotion, use of symbols, and by publicizing its actions. Corporations trying to shape their image
are analogous to individuals who will dress appropriately, cultivate courteous manners, and choose
their words carefully in order to come across competent, likeable, and reliable. In the personal as in
the corporate case, the image should match reality. When it does not, the consequence will be the
opposite of the one intended.

THE ELEMENTS OF IMAGE

A corporate image is, of course, the sum total of impressions left on the company's many publics. In
many instances a brief, casual act by an employee can either lift or damage the corporate image in
the eyes of a single customer or caller on the phone. But the overall image is a composite of many
thousands of impressions and facts. The major elements are 1) the core business and financial
performance of the company, 2) the reputation and performance of its brands ("brand equity"), 3)
its reputation for innovation or technological prowess, usually based on concrete events, 4) its
policies toward its salaried employees and workers, 5) its external relations with customers,
stockholders, and the community, and 6) the perceived trends in the markets in which it operates as
seen by the public. Sometimes a charismatic leader becomes so widely known that he or she adds a
personal luster to the company.

Image versus Images

Only in the best of cases does a corporation enjoy a single reputation. Different publics may have
different views of the corporation depending on their different interests. A company's brand image
may be very good but its reputation among suppliers poor—because it bargains very hard, pays late,
and shows no loyalty to vendors. A company may be highly regarded on Wall Street but may be
disliked on the Main Street of cities where it has closed plants. A company may be valued for
providing very low prices yet disliked for its employment practices or indifferent environmental
performance. It is much more likely that a small business will have an all-around reputation for
excellence than that a very large conglomerate will merit all-around praise. Smallness has its
advantages.

At the Core: Business Performance

The single most important factor in the corporate image is a company's core business performance;
performance, by definition, includes financial results. A growing, profitable corporation with a steady
earnings history will, for these reasons alone, please its customers, investors, and the community in
which it operates. A profitable company that, nevertheless, exhibits huge gyrations in earnings will
fare worse: its earnings and dividends will be unpredictable; it will have layoffs; its stock will
fluctuate; its vendors will be more uneasy; its employees nervous. When a business fails in its core
function, its reputation heads straight south. Enron Corp., an energy trader, had a stellar reputation
as the 7th largest corporation measured in revenues. It fell into bankruptcy almost abruptly on
December 2, 2001; the Justice Department began to investigate it for fraud. Suddenly every aspect
of the company that had been admired and lauded—its audacity, energy, profitability,
innovativeness, entrepreneurial spirit, and so on—took on opposite and negative connotations. The
core business had failed; Enron's reputation imploded. No amount of corporate image polishing
could have saved Enron's reputation after that.

MEASURING THE CORPORATE IMAGE

Corporations evaluate their image, much as politicians do, by survey. They employ the methodology
of marketing surveys used both in polling and in support of advertising. The investigators select
appropriate samples of the public and interview them; telephone surveys are the most common.
They use statistical methods of extrapolation to project from the sample what the public as a whole
(or selected publics) think. Corporations, of course, also rely on the much "harder" measures such as
sales and stock performance. Surveys of the corporate image are sometimes motivated by sagging
sales and a miserable press.

The theory of the corporate image holds that, all things equal, a well-informed public will help a
company achieve higher sales and profits, whereas a forgetful or poorly informed public may come
to hold negative impressions about the company and may ultimately shift more of its patronage
toward competitors.

A recent campaign launched by Toyota Motor North America Inc. illustrates measurement and a
response to it. As reported by Jamie LaReau in Automotive News, "Toyota periodically surveys U.S.
consumers' perceptions of the automaker. The surveys suggested [that] Americans' awareness of
Toyota's U.S. presence had declined since 2000 '¦ even as the company was building and expanding
plants." The company launched a print and TV program to highlight the company's contributions to
the U.S. economy.

WORDS AND ACTION

The example of Toyota is a case in which Toyota felt the need to communicate ("words") something
about its investments ("action") in the United States. Ideally words and actions are always closely
linked in building or repairing the corporate image. Ideally, also, the two will correspond. To achieve
a close alignment of words and deeds is often difficult in practice. Who has not observed with a
knowing eye the difference between the cheerful, helpful clerks in the TV ads of a company and the
surly indifference of that same company's actual clerks? Expert advisors to the corporate world, such
as Roger Hayward writing in Accountancy Ageemphasize the need for consistent follow-through—so
that employees become "a vast army of goodwill ambassadors."

Whether the objective is to make the most of a good thing or to turn around an adverse situation,
good management practice will ensure that action is accomplished before the words are spoken. A
case of that sort is presented by the Rite Aid chain store. The company went through a financial
scandal in the late 1990s; its former chief executive and others were convicted and jailed. A new
management team first turned the chain around before, as reported in Chain Drug Review, it
launched a campaign to tell the world that "the turnaround is complete and we are a stable, healthy
company focusing on growth," as Chain Drug Review quotes Karen Rugen, Rite Aid's senior vice
president of communications and public affairs, a newcomer to the company.

ATTENTION TO DETAIL
The management of the corporate image also involves management of the more mundane side of
image, the corporation's logo, its brand images, the look and feel of its retail outlets, its offices,
signage, even its stationery and the look of its calling cards. Good management implies ensuring that
all spokespersons for the company say the same thing in the same way for a consistent message.
Furthermore, in pays attention to consistent self-presentation in the look of its facilities.

SMALL BUSINESS AND CORPORATE IMAGE

Every small business will have the equivalent of a corporate image because it will have a reputation
among its employees, customers, vendors, neighbors, and the government agencies with which it
deals. The first action of the owner, in choosing the name of enterprise, is an exercise in building a
corporate image. The process continues in many ways: in the choice of brand names to be used, the
location of leased space, office decorations and/or store equipment selected, the company's Web
site design if the business has an Internet presence, its sales literature, and so on. As the business
begins to operate, it will build its visibility in its market by outward symbols; the quality of its
products or services; the knowledge, skill, and friendliness of its employees; its promptness in paying
bills; its effectiveness in mounting promotions; and the list goes on.

By their very nature, small businesses tend to be closer to all of their constituencies. As a
consequence, the business will enjoy rapid feedback from the public when it begins to make
mistakes or has some bad luck. If that should happen, the small business, like the major corporation,
will engage in the actions—followed by words—which will be necessary to recover losses or make
the most of unusual success.
Corporate identity: the five most important aspects and how you apply them

In terms of corporate governance and marketing, speech plays an important role in corporate
identity. The term corporate identity tends to imply a vague mixture of a company’s self-image and
their external impact. But what does corporate identity really mean? In this guide, we will show you
what a corporate identity consists of, and how you can use the different aspects of it in your own
company.

Corporate identity: an important building block in corporate management

A corporate identity (CI) is not just something that a company conjures up. A corporate identity
requires planning, should include the whole company, and will require both time and financial effort.
At the same time, the corporate identity should express the company’s self-image through the
guidelines and values that run through all areas of the business. The more complex and far-reaching
the corporate structures are, the most precisely you have to analyze and organize them in order to
convey a consistent image internally and externally. CI guidelines for large companies can be several
hundred pages long.

Corporate identity is more intended as a conceptual construct than anything else. The components
that create this identity are determined by inner values and external factors. The CI of a company is
a complex system of different building blocks that influence each other and work internally (within
the company) and externally (outside the company).

These are the usual goals of a good corporate strategy:

Companies strive to present a uniform, transparent image of themselves and their brand, both
externally and in its corporate structures. When employees and subcontractors see this company
image, what its values and goals are, it makes working for a company easier. In addition, a consistent
self-image strengthens the loyalty of the workforce, who can recognize their role in a well-
networked structure. Employees who feel valued and understand relationships within the company
tend to cooperate better with other departments and have an improved overall performance.

Externally, the CI determines what directions marketing campaigns should take, as well as what the
targets should be and how to conduct market research. The self-image of a company has a
significant impact on the measures it takes to present itself to customers and the public. On the
other hand, thoughtless, contradictory measures can convey a flawed corporate identity.

Of course, corporate identity is subject to change. External circumstances such as social change and
internal factors, like new product developments or restructuring can result in aspects of corporate
identity needing to be rethought. However, it is advisable to be careful when making significant
changes, as sudden differences in behavior may unsettle your customer base. If your brand appeals
to your customers’ identity, a fundamental change may feel like a betrayal to them. However,
altering your CI is something inevitable to accompany necessary changes. This is clearly visible in a
field such as politics, where parties change their image often.

The other side of corporate identity is corporate image. This refers to the external perception of the
company, which is both influences and is influenced by the corporate identity. If the company has a
strong identity, it stands out from the competition and enjoys a certain image that establishes its
reputation in the public domain. A corporate identity should be visible in all aspects of the company
over time. Established companies with a good reputation do not do themselves any favors when
they throw an existing corporate identity overboard. A sudden change in direction is likely to cause
customers to turn on the company and even make negative public comments about it.

What is corporate identity? Here are 5 important aspects

Depending on the design, corporate identity as a corporate management strategy consists of 5 to 7
areas and sub-areas. To develop a coherent strategy, you should analyze each area to determine
how it affects your corporate identity. Clearly understood basic values are the basis for a
comprehensive concept. A company motto also sums up these values succinctly. Develop an
effective strategy by getting feedback from all departments and making the process transparent. The
literature recommends evaluating the success of a strategy according to these four factors:

• Differentiation
• Reputation
• Relevance
• Coherence

A company motto should be short and meaningful, so it is important to choose it wisely. For
example: for years, Google’s company motto was “Don’t be evil”. This motto is in some ways a great
principle that conveys social corporate responsibility, however, much of the message consists of
denial (“do not”) of a state: you are running the business well by just remaining passive and not
doing anything “bad”. In 2016, Alphabet, the new umbrella company that owns Google, introduced a
new motto: “do the right thing”. This statement is similar in structure, but now calls for positive
action instead. This conveys more dynamism and requires employees to take responsibility for their
own actions.
The most important areas of corporate identity are:

• Corporate design (CD)

• Corporate behavior (CB)
• Corporate culture
• Corporate communication (CC) + language (CL)
• Corporate philosophy (CP) + corporate soul (CS)
• Corporate design

This section represents all the sensory elements a company uses to represent themselves. These
should be uniform in order to increase recognition value. There should be a company logo, which
should appear at the company entrance, on the website, in advertising, or letterheads, as well as a
representative color that should be included on business card and brochure designs. A uniform
concept saves time and money, since new designs have to undergo tedious processes. The
architecture and interior design of company building and branches, the design of uniforms and
internet presence, are also part of it. New buzzwords include corporate sound (like the well-known
Windows sound) and corporate smells (coffee houses in Vienna scent the air with fresh coffee
powder, for example).

CORPORATE DESIGN

Corporate design is very important in terms of company recognition. Global players usually have a
simple, meaningful company logo. Ideally, a customer should immediately recognize your company
when they see your logo. Read more about how to create a professional logo yourself in the Digital
Guide.

CORPORATE BEHAVIOR

It is important to take a close look at the behavior of your company. How does the company deal
with groups of people who have a direct connection to the company? This includes employees and
customers, as well as suppliers, subsidiaries, and shareholders. How does your company interact
with the public? Employee leadership, monetary and non-monetary behavior, as well as the ability
to criticize are all also included.

CORPORATE CULTURE

The corporate culture is, to some extent, related to the company’s operating culture. Certain basic
values, norms, and the legal order must be obeyed and respected by the company. In addition, there
may be precise rules of conduct and values that are specific to the company. Depending on their
scope and commitment, they can even influence social culture. Corporate culture also informs the
corporate behavior (CB) and corporate communication (CC) of a company.

CORPORATE COMMUNICATION + CORPORATE LANGUAGE

Companies use specific language to express their corporate culture. This language can be formal and
structured, or informal in a company with flat hierarchies, for example. Communication deals with
the way a company voices its concerns and values internally and externally. This includes
communication between the individual departments and hierarchy levels in the company, as well as
public relations and advertising campaigns.
CORPORATE PHILOSOPHY + CORPORATE SOUL

When starting a business, you have a specific purpose. The values and norms that make up the core
of the company aside from working towards a profit are what determine corporate philosophy.
Compressing this value structure to very basic aspects gives you the corporate soul of a company,
and expresses the ideal image that you want to represent. The corporate soul is thus a unifying
element in all aspects of corporate identity. When the corporate soul of a company can be seen in all
areas of corporate governance, you have achieved a balanced self-image.

Conclusion
A corporate identity strategy involves all areas of a company. The goal is to have a positive self-
image which then reflects well on other people. Having a well thought-out corporate identity sets
you apart from competitors, conveys trustworthiness, and strengthens your right to exist in the
market. You also motivate employees to perform better and save money. Make sure you adhere to
this identity in all areas of your company to avoid making mistakes and alienating customers and
employees.

References:
https://www.ionos.com/startupguide/grow-your-business/corporate-identity/