Corporate image and Role of communication in building Corporate image

There is a strong positive correlation between how people perceive the organization and the pro-corporate supportive behaviour. Corporate image is perceived as the mental picture of the organization. It is the sum total of the perceived characteristics of the organization. Every organization has its corporate image whether the organization does anything about it or not. Corporate image is formed based on the stakeholders’ perceptions of specific actions of the organization as well as associated industry and national issues. The corporate image of the organization to a large extent influences the reactions of the stakeholders to the specific actions, services, and products of the organization.

Corporate image is the net result of the interaction of all the experiences, beliefs, feelings, knowledge and impressions that people have about the organization. It literally means the level of reputation and an overall picture the organization has been able to create in the eyes of public, competition, end customers and other subjects involved. It is the sum of activities linked with the organizational culture, corporate identity and design, delivered by the communications from the organization.

There are six internal factors for the corporate image of the organization. These are given below.

1. Self-image of the organization – This is the so-called ‘ideal’ self-image. It is how the organization chooses to identify itself to the public or to projects itself to the public.

2. Corporate advertising – By this the organization communicates its identity in the way that the achievement of organizational goals gets facilitated. This is a management responsibility. Institutional advertising generates awareness and goodwill of the organization behind its products or services.

3. Brand image – Brand image plays an important role to the success of a product. It consists of functional, symbolic and experiential aspects. There is a significant interaction between brand image and corporate image.

4. Public relations – It is a means to build up a general reservoir of goodwill. These can be for example sponsoring local events and contributing to charities, which can project an image of ‘good corporate citizenship’.

5. Frontline employees’ behaviour – Contact with frontline employees of the organization serves to form an impression about the organization. The courtesy and knowledge of the frontline employees and their behaviour is influenced by the corporate culture and climate within the organization.

6. Website – Internet is a potential means of communication to all their stakeholders. It is part of an integrated marketing communications concept. The help stakeholders gather information, form perceptions, and more than that gives them the possibility to directly respond back. Further website enables the organization to recreate and reposition itself to meet the demands of the market place.

Role of Communication in Corporate image building

Corporate communication is a set of activities involved in managing and orchestrating all internal and external communications aimed at creating favourable point of view among stakeholders on which the company depends.[1] It is the messages issued by a corporate organization, body, or institute to its audiences, such as employees, media, channel partners and the general public. Organizations aim to communicate the same message to al its stakeholders, to transmit coherence, credibility and ethic. Corporate Communications help organizations explain their mission, combine its many visions and values into a cohesive message to stakeholders. The concept of corporate communication could be seen as an integrative communication structure linking stakeholders to the organization.

Effective communication plays a very important role for the organization not only in building the corporate image but also to sustain it. It is a very influential tool for the corporate image. Through planned communication, the organization builds awareness, reinforces goodwill, informs and corrects misleading information. Corporate image is the combined impact that has been made on an observer by the planned and unplanned visual and verbal communications of the organization as well as by the outside influences. The basic communication strategy for the corporate image is to differentiate the organization from others and to create a favourable attitude for the organization in the minds of the stakeholders.