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FOURTH SEM- BAJMC

FIRST UNIT

CORPORATE COMMUNICATION
There is a widespread belief in the management world that in today’s society the future of
any company critically depends on how it is viewed by key stakeholders, such as
shareholders and investors, customers and consumers, employees, and members of the
community in which the company operates. Globalization, corporate crises and the recent
financial crisis have further strengthened this belief. CEOs and senior executives of many
large organizations and multinationals nowadays consider protecting their company’s
reputation to be ‘critical’ and view it as one of their most important strategic objectives.1
This objective of building, maintaining and protecting the company’s reputation is
actually the core task of corporate communication practitioners.
However, despite the importance attributed to a company’s reputation, the role and
contribution of corporate communication is, in many companies, still far from being fully
understood. In such companies, communication practitioners feel undervalued, their
strategic input into decision-making is compromised and senior managers and CEOs feel
powerless.
Company’s environment depends on how its events can affect the company’s operations
and profits. There is therefore a lot to gain when communication practitioners and senior
managers are able to recognize and diagnose communication-related management
problems and understand appropriate strategies and courses of action for dealing with
these. Such an understanding is not only essential to the effective functioning of
corporate communication, but it is also empowering. It allows communication
practitioners and managers to understand and take charge of events that fall within the
remit of corporate communication; to determine which events are outside their control,
and to identify opportunities for communicating and engaging with stakeholders of the
organization.
It is necessary to know how corporate communication is used and managed strategically
as a way of guiding how organizations can communicate with their stakeholders. In doing
so, we will be able to know concepts, insights and tools that communication practitioners
and senior managers can use in their day-to-day practice. This perspective suggests a
particular way of looking at corporate communication and indicates a number of
management areas and concerns that will be covered in the remaining chapters.
SCOPE OF CORPORATE COMMUNICATION

Perhaps the best way to define corporate communication is to look at the way in which
the function has developed in companies. Until the 1970s, practitioners had used the term
‘public relations’ to describe communication with stakeholders. This ‘public relations’
function, which was tactical in most companies, largely consisted of communication with
the press. When other stakeholders, internal and external to the company, started to
demand more information from the company, practitioners subsequently started to look at
communication as being more than just ‘public relations’. This is when the roots of the
new corporate communication function started to take hold.
This new function came to incorporate a whole range of specialized disciplines, including
corporate design, corporate advertising, internal communication to employees, issues and
crisis management, media relations, investor relations, change communication and public
affairs.2 An important characteristic of the new function is that it focuses on the
organization as a whole and on the important task of how an organization presents itself
to all its key stakeholders, both internal and external. This broad focus is also reflected in
the word ‘corporate’ in corporate communication. The word of course refers to the
business setting in which corporate communication
In defining corporate communication this term itself emerged as a separate function
(alongside other functions such as human resources marketing sales and finance). There
is also an important second sense with which the word is being used. ‘Corporate’
originally stems from the Latin words for ‘body’ (corpus) and for ‘forming into a body’
(corporate), which emphasize a unified way of looking at ‘internal’ and ‘external’
communication disciplines. That is, instead of looking at specialized disciplines or
stakeholder groups separately, the corporate communication function starts from the
perspective of the ‘bodily’ organization as a whole when communicating with internal
and external stakeholders.
Corporate communication, in other words, can be characterized as a management
function that is responsible for overseeing and coordinating the work done by
communication practitioners in different specialist disciplines, such as media relations,
public affairs and internal communication. Van Riel defines corporate communication as
‘an instrument of management by means of which all consciously used forms of internal
and external communication are harmonized as effectively and efficiently as possible’,
with the overall objective of creating ‘a favorable basis for relationships with groups
upon which the company is dependent’.
Defined in this way, corporate communication obviously involves a whole range of
‘managerial’ activities, such as planning, coordinating and counseling the CEO and
senior managers in the organization as well as ‘tactical’ skills involved in producing and
disseminating messages to relevant stakeholder groups. Overall, if a definition of
corporate communication is required, these characteristics can provide a basis for one:
Corporate communication is a management function that offers a framework for the
effective coordination of all internal and external communication with the overall
purpose of establishing and maintaining favorable reputations with stakeholder groups
upon which the organization is dependent.
One consequence of these characteristics of corporate communication is that it is likely to
be complex in nature. This is especially so in organizations with a wide geographical
range, such as multinational corporations, or with a wide range of products or services,
where the coordination of communication is often a balancing act between corporate
headquarters and the various divisions and business units involved. However, there are
other significant challenges in developing effective corporate communication strategies
and programmes.
Corporate communication demands an integrated approach to managing communication.
Unlike a specialist frame of reference, corporate communication transcends the
specialties of individual communication practitioners (e.g., branding, media relations,
investor relations, public affairs, internal communication, etc.) and crosses these
specialist boundaries to harness the strategic interests of the organization at large.
Richard Edelman, CEO of Edelman, the world’s largest independent PR agency,
highlights the strategic role of corporate communication as follows: ‘we used to be the
tail on the dog, but now communication is the organizing principle behind many business
decisions’.5 The general idea is that the sustainability and success of a company depends
on how it is viewed by key stakeholders, and communication is a critical part of building,
maintaining and protecting such reputations. An illustration of this idea is the presence of
Google in China.
Key to having a corporate communication strategy is the notion of a corporate identity:
the basic profile that an organization wants to project to all its important stakeholder
groups and how it aims to be known by these various groups in terms of the corporate
images and reputations that they have of the organization. To ensure that different
stakeholders indeed conceive of an organization in a favorable and broadly consistent
manner, and also in line with the projected corporate identity, organizations need to go to
great lengths to integrate all their communication from brochures, advertising campaigns
to websites in tone, themes, visuals and logos. The stakeholder concept takes centre-stage
within corporate communication at the expense of considering the organizational
environment simply in terms of markets and publics. Organizations increasingly are
recognizing the need for an ‘inclusive’ and ‘balanced’ stakeholder management approach
that involves actively communicating with all stakeholder groups upon which the
organization depends and not just shareholders or customers. Such awareness stems from
high-profile cases where undue attention to certain stakeholder groups has led to crises
and severe damage for the organizations concerned.
All these concepts are important in defining the corporate communication in general but
it is worthwhile to emphasize how some of them hang together. The corporate
communication is geared towards establishing favorable corporate images and
reputations with all of an organization’s stakeholder groups, so that these groups act in a
way that is conducive to the success of the organization. In other words, because of
favourable images and reputations customers and prospects will purchase products and
services, members of the community will appreciate the organization in its environment,
investors will grant financial resources, and so on. It is the spectre of a damaged
reputation – of having to make costly reversals in policies or practices as a result of
stakeholder pressure, or, worse, as a consequence of self-inflicted wounds – that lies
behind the urgency with which integrated stakeholder management now needs to be
treated. The case study (1.1) of Barclays Bank illustrates the importance of managing
communications with stakeholders in an integrated manner
Corporate communication is a set of activities involved in managing and orchestrating
all internal and external communications aimed at creating favorable 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 all its stakeholders, to transmit coherence, credibility and ethics.
Corporate communication helps 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.
A growing number of companies recognize the value of corporate communication and are
adapting their budgets and internal structures accordingly.

SUMMARY:
Corporate Communication The management function within an organization which is
responsible for the communication processes that are initiated from within the
organization and thus trying to promote a sustainable interaction between the
organization and groups of the public in the internal and external environment. Mission
Statement A statement in which an organization describes its intentions. Organizations
Government, non-profit (governmental), NGO’s Public groups / stakeholders The various
parties an organization has to deal with.
The success of a company's communication strategy is largely contingent on how closely
the communication strategy is linked to the strategy of the business as a whole.37 In
addition to thoughtful design and careful planning of firm strategy, a company must have
a strong corporate communication function to support its mission and vision. While the
investor relations function could be in the finance function of a company, the internal
communications function within the human resources department, and the customer
relations function within the marketing department, all of these activities require
communication strategies that are connected to the central mission of the firm.
Corporate communications professionals mist be willing to perform a wide variety of
subfunctions within the function, and their roles will continue to broaden and diversify as
globalization and information flows from a variety of sources demand that
communications be strategic and purposeful. The greater number of global firms and the
increasing demand for senior management to travel and speak in international venues
place additional pressure on the communication function to communicate successfully
with even more diverse, foreign audiences.38 While many corporations have made
strides in building strong corporate communication functions that are closely aligned with
overall strategy, there is still much work to be done. A recent poll released by Gallup
revealed that public confidence in "big business" was the second- lowest rated of all
institutions in the United States, tied with the U.S. Congress with a 22 percent vote of
confidence.39 In this light, managing reputation and building trust are more important
than ever, and a strong corporate communication program is a means to achieve those
goals.

Business Organizations and Their Constituencies

Constituencies Organization (SR) Organization Benefits) Potential Challenges

Employees Support of individual increased affiliation and Sustainable employment
Development & growth contribution with a changing economy
Equitable compensation

Senior leaders Establishment of Growth & stability Integrating needs of

Appropriate governance different constituencies
Practices.

Investors Financial returns Resources for growth Balancing long & short
Term needs

Community Services Products Infrastructure and Equitable distribution

Members Employment and community of resources
Investment returns resources. Environmental issues
Respect for
Environment.

Suppliers communicating needs Needed products and Quality – consistency of

Honoring commitments Services incoming materials
And services

Consumers supplying evolving Payment & learning Financial pressures.

Needs while meeting
Commitments

Partners Honoring agreements Support Divergent objectives

Board Member

Volunteer

We’ll look at each constituency in turn, beginning with employees. In today’s work
world and the work world of the future, staying employable means continuing to develop
new skills. The types of skills are shifting rapidly as new technologies emerge and work
takes new shapes, for example, the use of electronic medical records in healthcare. By
2018, one projection
What role does business play here? Is it a matter of just letting everyone fend for
themselves or does the organization have a role to play? First constituency is employees-
Enlightened and successful organizations support individual growth and development. By
honoring this important ethical responsibility, businesses gain affiliation, strengthened
contribution, and, therefore, productivity. Creating a place where people develop and
prosper not only strengthens individuals, organizations, and communities, it is good
business practice. Yet it doesn’t come without challenges and tensions. For example,
creating sustainable employment through economic cycles is not easy; it likely means
running lean at times, adjusting operations to handle profitability swings, and balancing
permanent and contingent workforces. There is also the important issue of equitable
compensation, which, has been sorely compromised in the United States by bloated
compensation for those at senior levels.
This brings us to the next constituency, senior leaders, and, in turn, to corporate
governance. When we look at current corporate governance, we are confronted with an
uncomfortable reality: many governance structures primarily serve the interests of a few
(those at senior organizational levels) at the expense of many (employees and
shareholders). So we are challenged to ask questions about governance and how to
strengthen it. What do we mean by governance? According to UNESCAP defines it this
way—“the process of decision-making and the process by which decisions are
implemented (or not implemented). The characteristics of good governance as
governance that is accountable, transparent, responsive, equitable and inclusive, effective
and efficient, that follows the rule of law and is participatory and consensus-oriented. We
see a blend of characteristics that show respect for individuals and allow all voices to be
heard in decision making.
These characteristics are equally applicable at the organization or community level. They
can become criteria for assessing how well a particular governance structure is working.
We can acknowledge the challenge of meeting these ideals. In corporate failures such as
Enron, most, perhaps all, of these characteristics are violated. Other crises of
organizational confidence may stem from violation of one or more characteristics. So a
key social responsibility of organizations to senior leaders is to establish the right
governance practices. Such practices mean that the rights of all parties are protected and
that senior leaders can focus on the organization’s growth and stability. Unfortunately,
we have much to learn in this area as excessively high CEO compensation, divorced from
both performance and average pay in organizations, has exposed the ruthlessness of some
current approaches to corporate governance in the United States. Fortunately, we do have
some good examples, like Jim Sinegal, CEO of Costco: “Having an individual who is
making 100 or 200 or 300 times more than the average person on the floor is wrong.”
Senior leaders are responsible for ensuring that businesses fully realize their long-term
value contribution, namely, their social contribution. So a particular leadership challenge
is integrating the needs of various constituencies, which can include both people in the
organization and those outside.
This brings us to the next constituency: investors. Investors include owners of the
organization—the shareholders, and those who lend money to it—the bondholders. Both
groups provide resources for business growth. In generating financial returns to investors,
businesses convert the work of many employees into economic value and then distribute
it. In today’s interconnected financial world, some people are employees and, as
investors, they are also part owners or lenders. So when businesses create value, they
transfer that value in part through investment holdings into the broader community.
However, this transfer is not evenly distributed; those in the top 10 percent of income in
the United States own close to 80 percent of all stocks. If businesses only generate returns
for shareholders, they exacerbate already large inequities. Therefore businesses also need
to address other aspects of social responsibility. And in doing this, one challenge they
may face is balancing long- and short-term gains, for example, giving up some profit
today for future gain. Other aspects of social responsibility may include strengthening
surrounding communities by supporting education programs in skill areas that will be
needed for the future.
This brings us to community members, our next constituency. Businesses’ social
responsibility to community members is to provide services or products, employment,
and investment returns, while respecting the environment. Businesses share some of the
value they create with the community, directly by compensating employees, and
indirectly by not only addressing community needs with services and products, but also
generating returns on investment holdings. Social responsibility includes sustaining these
activities over time, supporting employment practices that meet people’s financial and
work/life needs, and using business practices that honor legal, ethical, and environmental
considerations. In turn, businesses benefit from community infrastructure in areas such as
transportation, education, and communication. Exchange with the community can involve
purchase of services from other organizations or tax payments to the public sector in
support of the common good. All these factors underline the reasons the social
responsibility of business is important: community prosperity is strongly linked to
business success, and business success is dependent on vibrant communities. Potential
challenges comprise ensuring that operating practices protect the environment, and
managing resources effectively such as limiting pay inequities as we described earlier, so
that all employees receive a living wage.
Operating practices also include paying attention to relationships with suppliers, our
next constituency. The social responsibility of businesses to suppliers includes selecting
suppliers with ethical operating practices, explaining needs well, and honoring
commitments. Accordingly, suppliers grow stronger so that they, in turn, can operate in a
socially responsible manner. In return, businesses seek needed products and services at
competitive prices, while meeting quality requirements. Similarly, businesses must meet
the requirements of their customers, the next constituency. This means keeping
commitments and flexing with changing customer needs. Customers are integral to the
value creation process through their purchases, which generate cash flow used to fund
operations and provide benefits to other constituencies.
Customers are also central to learning and collaborating around changing market needs.
Social responsibility includes a willingness to stop serving customers who violate ethical
employment or operating practices, for example, environmental requirements. Potential
pressures include financial and pricing issues.
This brings us to the final constituency: partners. Partners can include a wide range of
organizations: nonprofits, public-sector groups, or other firms that may offer
complementary services or products appealing to customers; they may also include those
that offer access to different geographic regions. Social responsibility includes selecting
partners that share values, and honoring commitments to those partners. Businesses
benefit by receiving support. A potential challenge is that the objectives of partners,
which may be closely aligned at the start of a relationship, may diverge over time. For
example, if one organization is focused on growth through reinvestment and the other is
focused on short-term profits, it may be necessary to redefine or terminate the
partnership. Firms and their constituencies then are interwoven by a combination of
giving and receiving, with social responsibility central to these relationships. It is in
recognizing and developing such relationships, and honoring principles of social
responsibility that firms can prosper, while helping to create a better world.

BRAND IDENTITY
Brand identity is a separate category from brand image. Brand Identity is the message
the consumer receives from the product, person, or thing. The brand identity will
connect product recognition
All the components related to a product, service, company, or person is “brand identity.”
Some of these items are the name, logo, tone, tagline, typeface, and shape that create an
appeal. Brand identity is a separate category from brand image.
Brand Identity is the message the consumer receives from the product, person, or thing.
The brand identity will connect product recognition. For instance, a recent street survey
was done by asking people on the street to tell them the first product that comes to their
mind when they hear the word, Bose? Unanimously, it was the headphones. Clearly,
Bose established the brand identity for their headphones. Brand identity should be a
consistent message received by its audience. If a portion of the identity is a particular
shade, consistency of the color is imperative in maintaining the product identity. The
identity must match the image projected to the public.
The Purpose of Brand Identity Setting guidelines and consistency. Whether the
product is a person, image, or an item, consistency exhibits, product leadership,
marketing, support, and operation. Consistency in identity projects the corporate culture
that surrounds the product.
The Key Items in Branding

The essential thing in branding is clarity of what is being offered, whether it is a product,
service or person. Image and consistency play a huge role in branding. Branding is the
big plan. It describes the expected results of a product or individual. The reputation of the
product or person is essential to the branding results. As seen with many “celebrities,”
their branding starts off great, but the product, the “celebrity,” couldn’t maintain the
image painted for success. Stardom has often been short-lived for the “celebrity” when
they are unable to maintain the standards promoted in their branding.

When it comes to a physical item or service offered, the quality is quite often
the branding technique referenced. If the quality decreases, branding results in a false
image and the reputation diminished. 

Rebuild and Repair

Another item projected on a regular basis is "reputation rebuilding." When a product,

service offered or person's image is damaged by a defective product, poor quality or
reckless activity, a reputation management company may be to reconstruct and repair the
damage. Repair is not always advisable, and often re-branding is advised.

Today's fast-paced, image building and branding use videos for a quick and instant visual
tool. Image repair is often achieved in the same manner with short, quick, videos lasting
just a few seconds, leaving a picture image of the expected result. Establishing and
building a brand is simple compared to repairing and replacing a damaged brand or
image. Establish clean, clear, and crisp branding that displays and projects the desired
message does not have to be complicated, but concise and consistent.
Common Mistakes When It Comes to Branding

When it comes to branding, it's not uncommon for companies to make mistakes that
weaken their branding efforts. A few common mistakes include:

Inconsistency:
Consistency in messaging is key when it comes to building your brand, but companies
will often work to brand certain components really well, while forgetting other
components such as their telephone messaging, website, business cards, etc. You get the
idea. 
Lack of Internal Training

You'd be surprised at the number of companies that launch a new brand, but fail to train
their employees and get them onboard. Your employees are your walking billboards; they
have to understand not only the brand but what the brand stands for so that they can
strongly reflect the messaging you want to share. 
Lack of Updating Your Marketing Materials.
Don't forget to do a marketing material refresh and make sure that your materials are all
on message throw out the old so that your brand is front and center. You don't have to
redo all of your marketing materials, but it's vital that you create updated materials that
share your core services and offerings. 
HOW TO BUILD BRAND IDENTITY:
The steps a company needs to take to build a strong, cohesive and consistent brand
identity will vary, but a few points apply broadly to most:
Analyze the company and the market: A full SWOT analysis that includes the entire
firm — a look at the company's strengths, weaknesses, opportunities and threats — is a
proven way to help managers understand their situation so they can better determine what
their goals are and the steps they need to take to achieve them.
Determine key business goals: The brand identity should help fulfill these goals. For
example, if an automaker is pursuing a niche luxury market, its ads should be crafted to
appeal to that market and should appear on channels and sites where potential customers
are likely to see them.
Identify its customers: Conducting surveys, convening focus groups and holding one-
on-one interviews can help a company determine who its offerings appeal to.

Determine the personality and message it wants to communicate: What does the

company want its market to perceive? A company needs to create a consistent perception,
rather than trying to combine every conceivable positive trait: utility, affordability,
quality, nostalgia, modernity, luxury, flash, taste and class. All elements of a brand,
i.e., copy, imagery, cultural allusions, color schemes, etc., should be in line with each
other and deliver a coherent message.
Building a brand identity is a multi-disciplinary, strategic effort, and every element needs
to support the overall message and business goals. It can include a company's name, logo,
design; its style and the tone of its copy; the look and composition of its products; and, of
course, its social media presence. Steve Jobs, Apple's founder, famously obsessed over
details as small as the shade of gray on the bathroom signs in Apple stores. While that
level of focus may not be necessary, the anecdote shows that Apple's successful branding
is the result of intense effort, not serendipity.

BRAND IMAGE:
Brand image is the current view of the customers about a brand. It can be defined as a
unique bundle of associations within the minds of target customers. It signifies what the
brand presently stands for. 
It is a set of beliefs held about a specific brand. In short, it is nothing but the
consumers’ perception about the product. It is the manner in which a specific brand is
positioned in the market. Brand image conveys emotional value and not just a mental
image. Brand image is nothing but an organization’s character. It is an accumulation of
contact and observation by people external to an organization. It should highlight an
organization’s mission and vision to all. The main elements of positive brand image are-
unique logo reflecting organization’s image, slogan describing organization’s business in
brief and brand identifier supporting the key values.
Brand image is the overall impression in consumers’ mind that is formed from all
sources. Consumers develop various associations with the brand. Based on these
associations, they form brand image. An image is formed about the brand on the basis of
subjective perceptions of associations’ bundle that the consumers have about the brand.
Volvo is associated with safety. Toyota is associated with reliability.
The idea behind brand image is that the consumer is not purchasing just the
product/service but also the image associated with that product/service. Brand images
should be positive, unique and instant. Brand images can be strengthened using brand
communications like advertising, packaging, word of mouth publicity, other promotional
tools, etc.
Brand image develops and conveys the product’s character in a unique manner different
from its competitor’s image. The brand image consists of various associations in
consumers’ mind - attributes, benefits and attributes. Brand attributes are the functional
and mental connections with the brand that the customers have. They can be specific or
conceptual. Benefits are the rationale for the purchase decision. There are three types of
benefits: Functional benefits - what do you do better (than others), emotional benefits -
how do you make me feel better (than others), and rational benefits/support - why do I
believe you(more than others). Brand attributes are consumers overall assessment of a
brand.
Brand image has not to be created, but is automatically formed. The brand image
includes products' appeal, ease of use, functionality, fame, and overall value. Brand
image is actually brand content. When the consumers purchase the product, they are also
purchasing it’s image. Brand image is the objective and mental feedback of the
consumers when they purchase a product. Positive brand image is exceeding the
customers’ expectations. Positive brand image enhances the goodwill and brand value of
an organization.
A brand Image is the perception of the brand in the mind of the customer. It is an
aggregate of beliefs, ideas, and impressions that a customer holds regarding the brand.A
brand can be perceived differently by different customers. Hence, the formation of a
consistent brand image is a huge task for any business.

IMPORTANCE OF BRAND IMAGE:

Every Company strives to build a strong image as it helps in fulfilling their business
motives. A strong brand image has following advantages –More profits as new customers
are attracted towards the brand. Easy to introduce new products under the same brand.
Boosts the confidence of existing customers. Helps in retaining them. Better Business-
Customer relationship. While a company with a bad image may struggle to operate and
might not be able to launch a new product under the same brand.

Business spends most of their time, effort, and resources in building their brand identity.
They decide how their brand will look, how should the customer feel when they contact
with the brand, where should the brand be located in consumers’ mind (Brand
positioning), and other associations. This all, when summed up, gives rise to a brand
personality which eventually gives rise to the brand image when the customer interacts
with this brand.
EXAMPLES:
Coca-cola is a brand known for happiness, joy, and good experience. It is the ‘original
cola’ and has a ‘unique taste’.
Woodland Shoes are solid and are an ideal choice for outdoors. They last very long.
BRAND REPUTATION:
Brand reputation refers to how a particular brand (whether for an individual or a
company) is viewed by others. A favorable brand reputation means consumers trust
your company, and feel good about purchasing your goods or services.
Brand Reputation means how the particular brand of the company is viewed and
perceived by the customers, stakeholders, and the market as a whole. It is the culmination
of ideas and emotions that a customer associated with the brand with the customer
service experienced during the purchase of goods and services, whilst using them, and
after-sales services provided by the company. A favorable Brand Reputation signifies that
the customer lays his or her trust in the brand and its offerings and feels good and takes
pride in purchasing the good and services.
Over the last decade, technology has bought through tremendous change in the way we
think and perceive brands as every minute detail is available on our fingertips with the
help of mobile technology that has embraced social media and digital marketing that has
made our life a lot easier but has some or other perils to it.I
Initially, the brand was experienced by the customers by visiting at the store and
indulging in the sales and purchase of goods and services but now with the need of an
hour almost every brand is available on social media for promotions and presence in the
market plus giving an option to the customers for online shopping.
Earlier the feedback on the products purchased and customer service experienced was
given on one-to-one basis but now it is visible to the entire world, hence, the brands need
to be more and more cautious with their every expression as it directly affects their
reputation in the market and in the minds of the customers.
In order to sustain and maintain the Brand Reputation in the virtual world, there has been
a rise in the concept of online reputation management as the internet has become the most
powerful medium for information with various search engines and the transparency that
comes along with it.
The brand managers need to be proactive with the customers with their every online
expression, PR strategy, advertisements, and all other marketing and promotional tools.
Even proper training and development needs to be given to the employees to maintain the
brand equity and reputation.
The company needs to have a holistic approach and think on the long-term basis rather
than just the profits to uphold and elevate the Brand Reputation. Online social media and
digital marketing is a blessing as well the curse as there are cases such as trolling,
infringement, fake identities, and more but the catch remains that the brand needs to
remain planted to its objectives of quality, excellent customer service, best of after sale
services, and being customer-centric. And in case of any unforeseen issues and
circumstances, the management and brand managers need to be agile and proactive to
solve the same maintaining the repute of the brand.
IMPORTANCE OF BRAND REPUTATION
1. TRUST:
Having a strong and positive Brand Reputation in the market generates the factor of trust
in the minds of existing and prospective customers as they believe that the brand is here
to thrive and sustain and fulfill all its promises. Also, the customer always purchases the
goods and services from the brand that is well known in the market and within his or her
social circle.
CUSTOMER LOYALTY:

With the increased level of trust amongst the customers and the good reputation of the
brand in the market, the customers remain loyal to the brand by purchasing the products
and services of the firm and not going for the offerings by the competitors in the market
despite the discount packages and reduced prices. This way the brand can also demand a
premium price.

3. HIGHER SALES:
Brand Reputation being the most beneficial intangible asset of the organization gives rise
to the tangible asset of the firm that is higher sales and increased profits as the brand has
carved a niche for itself in the market plus it has is also gained the trust and loyalty of the
customers through its consistent efforts of maintaining the quality and service levels.
4. CIOMPETITIVE EDGE:
The company that has a good Brand Reputation enjoys multiple benefits and one of them
is having an advantage in the market amidst the ever-growing competition as the
customers always believe in and go for the brands that have a positive standing in the
market and are well-known amongst their friends and family.
5. WORD OF MOUTH:
The customers are best brand ambassadors of the company and if they are happy and
satisfied with the brand they refer the same to their social circle and with this cycle
getting continued and elongated, Brand Reputation of the company not only rises in
manifold with the positive word of mouth but also makes the company fulfills its
objectives of higher sales and profits.
6. BUSINESS EXPANSION:
A good and strong Brand Reputation gives an impetus to the confidence of the
management to expand the operations of the firm by tapping new markets on the
domestic and international levels and also expand the product line and offerings.
7. EMPLOYEE RETENTION:
As the customer wants to get associated with the brand that enjoys the good repute in the
market, likewise, the employees and workforce want to get linked with the brand that is
stable and has a strong reputation in the industry.

Right from maintaining the quality of the products and providing the excellent levels of
customer service, the Brand Reputation can also be maintained and elevated by initiating
various Corporate Social Responsibilities activities by the organization. It is the result of
everything that a brand does in the market for its customers.

Brand Reputation is the compass of the brand that brings in various benefits and merits
stated above for the organization and make it survive, thrive, and sustain in the market
amidst the cut-throat competition and changing business cycles.

CORPORATE PHILANTHROPY: It is the act of a corporation or business

promoting the welfare of others, generally through charitable donations of funds or time.
Philanthropy: The origin of the word philanthropy is Greek and means love for
mankind. Today, philanthropy includes the concept of voluntary giving by an individual
or group to promote the common good. Philanthropy addresses the contribution of an
individual or group to other organizations that in turn work to improve the quality of life
for all citizens or residents.  –via: Nita Ambani Foundation or TIMES EDN
FOUNDATION.

That definition makes some very interesting points about the idea of philanthropy:
 Love for mankind
 Promoting the common good
 Improving the quality of life for all citizens
These are certainly lofty goals for any individual or organization.  But few individuals
have the resources available to make a significant impact on these grand concepts. 
Businesses, however, do have the resources and the ability to truly “promote the common
good” in incredible ways.
Corporate philanthropy refers to the all of the ways in which companies achieve a
positive social impact through strategic and generous use of finances, employee time,
facilities, or their own products and services, to help others in the community and support
beneficial causes.
As noted in a recent report from the Corporate Giving Standard Survey of Fortune 500
companies, corporate philanthropy is on the rise despite an economy that remains
unpredictable.  Many organizations are finding creative non-cash ways to give, and are
selectively giving more to specific causes or recipients, showing a trend to more personal
and involved giving as opposed to wide-spread volume giving.
This makes sense since, in recent years, the explosion of social media and the widespread
adoption of its use by businesses and consumers has created a level of transparency that
was completely unknown just ten years ago.  With this new atmosphere of openness and
dialogue at all levels of the business cycle, consumers have become far more interested in
a company’s values and corporate responsibility than ever before.
For that reason, a well-established and strategically executed corporate philanthropy
program can have tremendous benefits for a company from a public relations standpoint,
and have a direct impact on the bottom line as well.  In some cases where product or
service competition is stiff, consumers may make their decision based solely on company
reputation or which causes a company supports.
Of course, this kind of corporate philanthropy program is going to do far more than
benefit the organization doing the giving, and that’s where the true value of corporate
philanthropy becomes clear.
So how can your company creatively establish or expand your corporate philanthropy
program?
One major key is to get your employees involved on every level of the organization. 
From the CEO to the mail room, each employee can be engaged in promoting the
corporate philanthropy program through their voluntary participating, through one-time
or regular donations, and by liberally sharing it with their social networks.
You can accomplish this by talking it up in internal communications and on the company
website or intranet.  You can also give your employees reason to volunteer by offering
paid time off to do so.  You can make monetary donations easier and more convenient by
arranging for them to automatically come out of the employee’s paycheck regularly.
Another important factor in truly making a success out of your corporate philanthropy
program is viewing it as a long term strategic commitment rather than a quick, one-off
program.  This will open up an entire range of creative and exciting options for corporate
philanthropy that may not otherwise be practical.
The best corporate philanthropy programs align perfectly with the company’s business
goals, culture, and persona.  Those programs that do so are far more likely to remain
viable for years, allowing time and momentum to do the most good for the community
and the company.
Philanthropy is most often seen in the form of financial contributions, but it can also
include time and resources. The concept behind philanthropy involves making an effort
to drive social change. It’s not only the charitable donations that can go toward any
number of direct-giving scenarios, such as disaster relief or feeding the homeless.
Philanthropy involves finding a long-term solution to homelessness, rather than
delivering temporary relief.
On the corporate level, philanthropy is practiced in many different ways. Many
corporations simply donate money to causes that are intended to bring about social
change. They may or may not place their brand on the cause and take credit for the
resources offered. This kind of giving often happens without any direct involvement
outside of the funds offered. Corporations may also be directly involved in philanthropy
by partnering closely with a cause, or, in some cases, by bringing the efforts in-house.
Some corporations have entire departments dedicated to managing their charitable gifts
and philanthropic programs. Although philanthropy and charity are separated by
definition, the two are commonly lumped into a single category within the corporate
atmosphere. Philanthropy and charity are both programs of giving that are not necessarily
limited to the communities where they operate. Most often, they simply select causes and
then contribute on a financial level.

CORPORATE SOCIAL RESPINSIBILITY:

Corporate social responsibility directly involves the corporation’s business model and its
business practices. It goes a step further than philanthropy by directly involving the
corporation in the causes and in the community. For example, a mining company should
implement cleanup programs to mitigate pollution from the operation. Leaving a
polluting mine after the work is done is irresponsible, and it has negative consequences
for the community and for the health of the community.
Corporate social responsibility is not mandatory and is not always practiced, but it should
be a major aspect of any large-scale corporation, as some negative side effects may stem
from the business practices. Corporate Social Responsibility or CSR means that the
corporation is working to mitigate potentially negative effects on the community and also
to solve for the effects it has socially, environmentally and on general public health. So
what is the difference between CSR and philanthropy?
Philanthropy is simply a way to reinvest wealth in a cause. It can happen at the
corporation’s leisure; it is purely optional. If the corporation does not participate in
philanthropy, it will likely not affect the way the corporation is viewed. Failing to
implement CSR, however, will cast the corporation in a negative light. The mining
example is a common example, and numerous examples exist in natural resource
extraction in general because the business has heavy environmental impacts. If the
mining company removes all of the precious metals possible then abandons the mining
site that is leaching chemicals into local waterways, they are failing the community and
foregoing their Corporate Social Responsibility obligations. The same principles would
apply to a coal company that fails to deal with worker health issues, such as black lung.
Failing to address community health and environmental effects directly means that the
company is failing the community, rather than serving the community.
A Corporate Social Responsibility program would hire mitigation teams to seal and cap
mining sites to stop harmful chemical leaching, or they would set up health services in
the community to treat black lung, as well as other respiratory issues developed while
working underground. The CSR programs are hands-on and ultimately demonstrate that
the corporation cares about the issues created as a result of its business model. Corporate
Social Responsibility in practice often looks much different than it should however.
Many corporations implement feel good type programs to place their brand in a favorable
light but the programs offer little in the way of resources.
TYPES OF CSR:
CSR is a complex concept, and it happens at a number of different levels. In many cases,
the consequences of doing business are unintentional, and are dealt with after the fact.
These would be the mining cleanup and community health programs. Corporate
responsibility however involves the processes and technologies used by the company
directly. One form of CSR is providing the proper equipment and resources to ensure
their work has the least impact possible. For example, the coal mine might save funds
upfront by providing subpar respirators to underground workers or by foregoing
respirators all together but the negligence has long lasting implications.
CSR involves avoiding negligence as a means of maximizing the bottom line profits and
representing the best interest of the workers, communities and environment upfront.
Another form of responsibility comes in the form of improving processes and technology
to lessen the impact. The coal mine in the latter example could finance the development
of a better respirator or they could explore new technology to make a more efficient mine
that has less direct impact on worker health. Unlike Philanthropy, in which the
corporation is simply donating money, CSR involves a hands-on approach to solving
social and environmental in which the corporation is involved. The concept is
transformative, and has the ability to generate positive effects through entire industries.
CSR does happen on a number of different levels. The local, grassroots level is common
but national and international programs are also applicable. It all depends on how the
company operates and the footprint they have. In the case of mining, it’s often very
localized around each individual mining site. Other multinational corporations have a
much wider footprint that affects multiple countries on a large scale. In these instances,
their corporate responsibility happens on a much larger scale and requires a significant
platform to communicate and effect any viable change.
CSR is an internal matter for many corporations as well. A clothing business can improve
factory conditions and increase employee pay and benefits as a form of CSR. Improved
working conditions and raising sub-par pay is a major issue, especially in a global
economy that sources cheap labor from unregulated parts of the globe. Any internal
process that results in negative impacts to the environment or community health must be
addressed and improved if the company wants to make any claim at CSR.
Adidas for example, has implemented a recycled polyester program to reduce their
material footprint and they are working with sustainable cotton farms to ethical source
raw materials. By implementing these programs, they are directly addressing the issue of
emissions generated by processing polyester and the environmental impacts of maximum
yield cotton farms. These are CSR programs that have measurable impacts and the ability
to actually calculate reductions in emissions and environmental harm while working to
improve upon those goals each year. Feel good style CSR programs rarely have the
ability to measure impacts in a real and meaningful way.

What Is the Difference Between Philanthropy and Charity?

Philanthropy and charity are easy to confuse, and the lines are often blurred. Charitable
giving is a direct donation from the corporation to the charity. There are no strings
attached and the charity can be any nonprofit cause. Philanthropy involves a cause that is
attempting to solve a problem. A charitable donation would be something such as money
given toward delivering HIV medication to infected individuals who cannot afford
treatments. In the case of philanthropy, it would involve seeking a cure for HIV. In both
cases, the most likely course of action would involve a direct financial contribution to the
nonprofit.
A single nonprofit can also be involved with charitable giving and with philanthropy. For
example, a single organization can deliver HIV treatments while working to find a cure.
The two are not mutually exclusive, which makes the donation from a corporation
difficult to define. In this case, the best way for the corporation to make the distinction is
by specifying what the donation is supposed to represent. With a large donation, they can
even request spending reports to ensure that the money and resources are being used as
intended. Ultimately, the company must distinguish between the types of contributions
they are making. In many cases, the companies will simply choose not to define between
philanthropy and charitable giving, because it has no effect on how they file the
contributions during tax season.
Unless they are promoting the fact that they contribute to a specific cause, they are
unlikely to receive scrutiny. Many corporations will leverage their donations into PR and
marketing campaigns, however, and the distinction becomes more important at this point.
There is no legal repercussion for confusing charitable giving and philanthropy, because
they are all directed at nonprofits, but any company making a sincere effort to donate,
will pay close attention to the causes they represent. If they are really donating with
specific intent, they will distinguish between the types of donations that are distributed,
and they may create media around a specific cause so that they can raise awareness and
increase the nonprofit’s ability to raise funds and continue working.

END OF FIRST UNIT NOTES