AMITY SCHOOL OF BUSINESS

AMITY SCHOOL OF
BUSINESS
BBA, VI Sem
PUBLIC RELATIONS AND CORPORATE IMAGE
Module 1
 Corporate Image AMITY SCHOOL OF BUSINESS
2

• “A corporate Image refers to how a

corporation is perceived”
• A corporate image is designed to be
appealing to the public, so that the
company can spark an interest among
consumers, create share of mind,
generate brand equity and thus facilitate
product sales.
 Contributors to the image: 3

• Corporate Image is created primarily

by marketing experts who use public relations and other
forms of promotion to suggest a mental picture to
thepublic. A corporation's image is not solely created by
the company: Other contributors to a companies image
could include the following:
• news media,
• journalists,
• labour unions,
• environmental organizations,
• and other NGOs
 Corporate image and Product positioning 4

• A corporate image should be

consistent with the positioning of the
companies product, product line,
or brand. Any inconguency between
the overall corporate image and the
positions of individual product
offerings will be confusing to potential
customers and will tend to reduce sales
revenue.
 Corporate Image as the Reputation 5

• Corporate Image is the reputation that the Knowledge

Organization gains from solving the Customer's problems
successfully.
• It is thus the external image of corporate Knowhow.
• The Corporate Image is the value of the organization's
name and customer network.
• It is an important asset because customers can not know
what solution they will get until they got it.
• Customers therefore must buy on reputation.
Image is no longer solely the realm of
marketing, but rather a strategic
instrument of top management.
De Soet (CEO Dutch KLM)

When having to choose similar

products, 9 out of 10 consumers
base their decisions on the
reputation of the company.
Mackiewicz
Corporate identity and reputation
Amity School of Business

Corporate
Identity

Names,
Self-Representations

Customer Community Employee

Investor
Image Image Image
Image

Corporate Reputation
 REASONS FOR IMAGE
‘MANAGEMENT’
• General promotion • Aid in relations with
value community/
government
• Encourage favorable
behavior towards • Serve corporate
organization objectives
• Build sales • Create familiarity and
favorability
• Attract shareholders
• Create position in
• Attract and motivate industry
employees/build
morale • Can demand premium
prices
• Reduce cost of capital
8
Peggy Simcic Brønn
 Some Factors Controlling Company
Image

Reality of Newsworthiness Communica- Memory

company* + + tions effort x Time - =
of company decay

Company Image

* Including Diversity of Company

van Riel, p. 95
9
Peggy Simcic Brønn
 Who is interested in the 10

corporate image?
• Stockholders- who have invested in the company.
• Board of Directors- who manage the company.
• Employees- who is in middle management and below.
• Suppliers- who supply any kind of materials and services.
• Channel Members- who are involved in distribution
network.

• Customers- who purchase the company’s product or

services.

• Community- who assess the company’s role as corporate

citizen.
 Benefits of an effective 11

corporate Image
• Stimulating sales
• Establishing company goodwill
• Creating an identity for employees.
• Influencing investors.
• promoting favorable relations with the
community, government and opinion leaders.
• Achieving a competitive position.
 How is Corporate Image 12

formed?
• STEP I: Influence and manage corporate
image.
• Internal Controllable sphere- It can be
used to influence the stakeholders image
of the organization.
• External Non-controllable sphere- These
can be indirectly manipulated.
 Forming a corporate image on 13

the internal sphere

Six major sources:
• Corporate Identity
• Corporate Advertising
• Brand Image
• Public Relations
• Frontline Employees Behaviour
• Websites
 Forming an external image on 14

the corporate sphere

There are four major services:
• Industry Image
• Country-of-image
• Press Reports and Press releases
• Word-of Mouth
 Why do we need to care about 15

the image?
• Consumers are more sophisticated than
ever before.
• There is more distrust than ever regarding
the motives of big business.
• There has been more changes in the last
ten years than in the last 80.
• There is a clear relationship between
positive image and profitability.
 ELEMENTS OF IMAGE 16

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.
 Measuring the corporate image 17

• Corporations evaluate their image by survey.

• Corporations 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.
Corporate Social Responsibility 18

• CSR is the continuing commitment by

businesses to behave ethically and
contribute to economic development while
improving the quality of the life of the
workforce and their families , local
communities and society at large.
 What is CSR? 19

• CSR is an extended model of corporate governance

based on the fiduciary duties owed to all the firms
shareholders.
• CSR is about how companies manage the business
processes to produce an positive impact on the society.
• CSR is the responsibility of the corporations to go above
and beyond what the law requires them to do.
• CSR is the responsibility of the corporations to contribute
to a better society and a cleaner environment.
 FOUR DIMENSIONS OF CSR 20

• Discretionary Responsibility (Be a good

corporate citizen)
• Ethical Responsibility (Be ethical)
• Legal Responsibility (Obey the law)
• Economic Responsibility (Be profitable)
 Dimensions of CSR 21

• Business Ethics Values and principles.

• Accountability and transparency
• Commitment to socio economic development.
• Environmental concern
• Human Rights
• Workers rights and welfare
• Market Relations
• Sustainability
• Corporate Governance
 Benefits of CSR 22

• Increased employee loyalty and retention.

• Increased quality of products and services.
• Increased customer loyalty.
• Increased reputation and brand image.
• Greater productivity and quality.
• Reduced regulatory oversight.
• Access to capital and market.
• Product safety and decreased liability.
• Less volatile stock value.
 Driving forces behind CSR 23

• Globalization.
• Power and influence of business
corporations.
• Growing access to education and
information.
• Growing awareness of environmental
issues.
• Spread of corporate scandals and public
distrust.
 Bottom line concepts of CSR 24

• Economic Responsibility (Profit)

• Social Responsibility (People)
• Environmental responsibility (Planet)
 Economic responsibility of 25

Corporations
• Financial profit, asset creation and economic
growth.
• Economic Impact through business processes
such as outsourcing, knowledge innovation and
social innovation.
• Economic regulation and stock exchanges.
• Antitrust and competition.
• State contracts and state subsidies.
 Social responsibilities of 26

corporations.
• Labor Rights- Child labor, non-discrimination, equal
opportunities, minimum wages, health and safety.
• Right to work-Protection against unjustified dismissals,
vocational training and guidance.
• Right to hold opinions- freedom of expression, thought,
conscience and religion.
• Right to Privacy- Personal Information, Surveillance.
• Cultural Rights- Right to take part in political life.
• Right to family life.
 Environmental Responsibilities 27

of Corporations
• Green house gas emission and global
warming.
• Soil and water contamination.
• Treatment and reduction of wastewater.
• Eco-efficiency
• Recycling and reuse of materials.
• Protection of forest resources.
 Green Strategies for CSR 28

• Green Buildings-
• Emphasis on green manufacturing in order to
reduce the emission of green house gases and
environmental pollution.
• Green products initiative in order to reduce toxic
materials.
• Product stewardship encourages everyone in
the value chain to contribute to the product
sustainability from producers to regulators to
retailers to consumers thereby achieving zero
waste and sustainable production.
 Conclusion 29

• CSR is the heart and soul of modern corporations and is

an important standard for corporate governance.
• CSR is an indispensable mechanism for both increased
corporate accountability, profitability and environmental
sustainability.
• CSR is the pole star for modern corporations in order to
maintain the integrity of moral fabrics both inside and
outside the corporation while conducting socially
responsible behavior.
 Corporate Communication 30

• It is the process that translates corporate

identity into a corporate image.
• The identity needs to be communicated to
the employees, customers, suppliers and
shareholders.
 Important roles for developing 31

corporate image
• Role of General Manager and Director
• Role of customer first Manager in
Corporate Image.
• Role of Communications officer in
corporate Image.
• Role of staff in Corporate Image.
 The development of the Image 32

revolves around the following:

• Staff training to develop a customer service culture.
• Community awards like staff excellence.
• School education programmes.
• Involvement in community activities.
• Wearing of corporate uniform by employees
• The wearing of name badge in their encounters with
customers.
• The preparation of cost effective, informative and
interesting publications.