Corporate Image

A company's corporate image is the public's perception of it's brand. A corporation shapes it's image by communicating its identity through marketing and advertising. However, what really sculpts the corporate image is a company's financial or innovative performance along with it's products and services. In today's world ethical business practices, business values, customer service and employee engagement play a very important role in establishing corporate image.

Elements of Corporate Image
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.

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.

Importance of Corporate Image
The corporate image of a company plays an important role in the success of the company. Customers’ actions are largely influenced by the corporate image of a company. It is difficult to build a strong and positive image of the company in such a cut-throat competitive environment, and once the image is ruined, it is near impossible to gain it back. A positive corporate image is important because it:

• Increases the loyalty of customers and strengthens the relationship with them: In present times, people have many options when they decide to buy one product. In a highly competitive environment, companies use various strategies to gain the loyalty of their customers and attract new customers. A positive corporate image can help attain customers and helps in gaining their loyalty. For example, nowadays, companies participate in social activities such as helping poor, providing education to underprivileged children, or activities associated with environmental causes. Contribution in such activities creates a positive image of the company in the eyes of people.
• Enhances the performance of products: The performance of products produced by a company is largely impacted by its image in marketing. People have become aware more than ever, and they also have options to reject the products of one company and choose the products of another company. A company with a positive image can easily sell its products with investing less in advertising. For example, people have blind trust in the quality of the Phones and other technological devices produced by the Apple company because Apple, since its inception has managed to sustain a positive corporate image and always presented itself as a leader in the smartphones’ market.
• Influences the actions of the employees of a company: Employees of a company represent the company in the market, and their actions play an important role in building or ruining the image of a company. However, it is not wrong to say that the corporate image of a company also influences the actions of its employees. If employees are associated with a company with a strong and positive corporate image, then they will feel liable to act accordingly so that they will not harm the image of the company.
• Strengthens the business image of the company: People are skeptical when it comes to the investment of their money. Their investment decisions largely influenced by the corporate image of the company. A bad corporate image will not only harm the sales, but it will also repel investors.

How to Improve Corporate Image

• Identify your company's purpose: If you truly want to build a loyal following for your brand and, in turn, strengthen your reputation, your company's core message should focus on your purpose - not how you make your product or what your product is. This notion, that people buy the "why" behind your organization - not the "what" or "how" — isn't just some idealistic trend catching fire in the business world today, though. It's actually rooted in human biology. The most primal part of the brain is called the limbic system, and it controls all decision making. It also happens to control all our emotions and feelings. So, resonating with your audience will also appeal to the part of the brain that's responsible for action. In other words, if you can evoke emotion, you can drive behavior. Conveying a clear and convincing purpose through all your brand's actions will forge the emotional connection required to persuade an audience to support you. And the more people who support you, the stronger your reputation will become.
• Make sure you can walk the walk: Sometimes, brands that want to reap the rewards of being a mission-driven company don't actually adhere to the values they claim they're so passionate about. But even though being a quasi-mission-driven company can attract new customers, once they uncover your hypocrisy, it's almost impossible to retain them. A Yale psychology study suggests that highlighting your morality is essentially a short-cut to high status. But if people realize you don't actually possess the traits that shot you up the social ladder, they'll lose trust in you and respond harshly to your deception. Before you start boasting about your company's dedication to putting the customer first, make sure your actions are actually aligned with these values, or that you have a plan in place to do so.
• Own your mistakes: Even the smartest brands make mistakes. But what separates the great companies from the good ones is their ability to admit that their wrong and change course in light of new information. Unfortunately, a lot of companies won't admit their mistakes or change their minds, even if it's the right choice, because they have too much pride or don't want to seem weak. However, admitting you're wrong actually requires a lot more strength than sticking to something that hurts your customers just because you've invested a lot of time or effort into an initiative. By owning your mistake and correcting it - instead of blaming the issue on external factors - your customers will understand the rationale behind your decision and appreciate your honesty and humbleness. Just like Contently, making a mistake that hurts you customers can spark harsh backlash and even start a trending Twitter hashtag that undermines your brand's integrity. But, ultimately, you can still earn back your customers' trust and support if you put your pride aside and own and correct your mistakes.
• Offer the best customer service possible: For many customers, one of the first interactions they'll have with your brand is through a customer service representative — so customer service plays an undeniably critical role in corporate image. Customer service representatives can demonstrate your company values in both their actions and words. For instance, consider Glossier's customer service department (known as the gTEAM), who are responsible for responding to customer messages on social media and creating personalized experiences for each customer who reaches out. This type of authentic, customer-first attitude is a small example of a bigger Glossier core value: "Devoted to the Customer". Ultimately, each interaction your customer has with your company has the power to form their entire perception of your brand — and those customers will share both positive and negative feedback with friends. For this reason, customer service is a vital component to consider when improving corporate image.
• Make sure your website and social media presence reflect your current corporate image: Corporate images change over time. Just consider HubSpot's Culture Code, which has been updated over 25 times since it was first created — while the values have stayed the same, the messaging has required adjustments to reflect HubSpot's most up-to-date corporate image. As your organization grows, as consumer preferences and industries change, and as you learn more about what makes your customers happy, your priorities or vision might shift slightly. To reflect the most relevant, accurate version of your corporate image, then, it's critical you maintain a strong social media and website presence. Oftentimes, social media is the first opportunity people have to discover your brand — and they'll likely make a snap judgment of your entire image as a result of a few images or videos at the top of your feed. So make them count. Similarly, your website is your digital storefront. In much the same way you might repaint your house every few years and add fresh flowers to the pots outside, you'll want to update your website regularly for freshness. Take a look at your website and consider whether it truly reflects your current corporate image. If not, consider whether a complete redesign is necessary, or whether a few small tweaks could do the job.