Creating Corporate Reputations: Identity, Image, and Performance: Identity, Image and Performance

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This book outlines how high-status companies become corporate super brands, and it presents managers with a framework to enhance their corporation's desired reputation. Creating Corporate Reputations will appeal to many business and nonprofit managerial audiences' -Academy of Management Executive'Dowling has written a book offering fresh and unique insights into how managers create value both for their organisations and for their stakeholders' -Academy of Management ExecutiveCorporate reputations are a valuable strategic asset for every company.

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Good reputations have been shown to help firms attain and sustain superior financial performance in their industry. Identity, Image and Performance: He is one of Australia's leading researchers and writers on marketing and its importance in today's successful corporations and organizations. He has published over papers in the academic and business press dealing with a wide range of marketing topics. Skip to content Free download.

Book file PDF easily for everyone and every device. The theory of stakeholders is considered the benchmark theory for the analysis of reputation. Donaldson and Preston [ 39 ] distinguish between three main approaches to analyzing stakeholders namely the descriptive approach, the instrumental approach and normative approach. The descriptive approach proposed to explain the functioning of the management process and how managers work in the organisation, taking into account the interests and demands of the different actors. The instrumental approach seeks to identify possible links between management based on consideration of the stakeholders and organizational performance.

In this sense the companies that create relations of cooperation and trust with its stakeholders are at a competitive advantage over those that do not, especially in terms of opportunity cost or prevention. The regulatory approach is based on concepts and principles that justify the moral and philosophical consideration of stakeholder interests. The combination of descriptive and instrumental approach reflects an empirical reflection of stakeholder theory, they represent tools for strategic management, whereas the normative approach introduces an ethical vision of strategic management.

Therefore, it should encourage the control of a relationship of trust and cooperation with stakeholders and integration of their interests and concerns into corporate strategies and business [ 41 , 44 , 53 ]. The management implements principles, processes and their impact on stakeholder groups for guidance in the various activities of the companies in order to balance the interests of stakeholders and improve business reputation.

In addition, the principles also demonstrate the company's commitment to meet the expectations and standards required by stakeholders [ 54 , 55 ].

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For cases, these may involve activities such as: the generation of information about stakeholders, their expectations and perceptions of the organization; the development of initiatives consistent with the principles of reorganization and designed to meet the demands of stakeholders and even anticipate their future demands and evaluation of the organisation's impacts on the social issues raised by stakeholders. In short, the goal is to manage and develop lasting relationships with various groups of stakeholders by meeting their needs and expectations [ 56 ].

It is the engagement of stakeholders in this process that gives it legitimacy [ 7 , 57 ]. Based on Freeman [ 9 ] original terminology, the prospect of organizations can be seen as "stakeholders affect an organisation", while the prospect of stakeholders can be seen as "stakeholders are affected by organisations. The bidirectional takes into account the needs and expectations that organizations have from stakeholders and these are the organisations, thriving sense of reciprocity and balance perceived and fairness in terms of trade [ 59 , 60 ]. This usually includes anything of value company's offer to stakeholders and stakeholders offer something of value to the organization [ 61 ].

Reputation is active important for stakeholders, namely for workers and members of cooperative, but their role is crucial to the organization's reputation [ 62 , 63 ]. According to Duncan and Moriarty [ 66 ], communication is a human activity that connects individuals and creates relationships. Corporate communication is a core element used by corporate marketers to communicate with specific stakeholders.

According to Goodman and Hirsch [ 69 ] is used to describe a variety of functions of strategic management and may play a decisive role in the behavior and success of the organization [ 47 , 70 ]. Depending on the organisation, corporate communication may include: public relations; the emergency communication crisis; corporate citizenship; reputation management; community relations; relations with the media; investor relations; relations between employees; government relations; the marketing communication; communications management; corporate brand, image building and advertising.

A good strategic approach the communication can to be a key to a business success [ 35 ]. Omar et al. Lovelock et al.

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Communication and reputation are closely interconnected. Their importance can hardly be overestimated; they are critical in the process of positioning of an organization [ 74 ]. Corporate communication and behaviour contribute to creating and maintaining a solid, sustainable, unambiguous reputation [ 75 ]. When the role of corporate communication function within organizations beyond the perception of influential stakeholders for the formation of organizational reality, committing stakeholders making more sustainable reputation, being one of their antecedents [ 79 ]. Gradually, communication is important for building CR and the implementation of a corporate communication strategy positively influences the efficiency and effectiveness, reinforces the values that represent the organization culture as well as its essence and the brand, along with behaviors and symbolism [ 20 , 80 ].

The role and importance of corporate communications which are incorporated throughout all marketing management positions reflected in the creation and strengthening of the corporate image in the operations and performance of enterprises in the market [ 68 , 81 ]. Corporate image is defined as the "general impression" that remains in the minds of stakeholders as a result of the accumulated feelings, ideas, attitudes and experiences with the organization, when the organization's name is brought to mind [ 82 - 86 ].

Corporate image is a result of communication process in which the organizations create and spread a specific message that reflects their core values that they believe [ 86 - 88 ]. The importance of corporate communication to build, protect and maintain corporate reputation has been advocated in numerous publications in recent years.


Reputation and information sharing represent signals that stakeholders observe in the process of value creation, which is seen as the end focus for corporate [ 90 ]. Usually, image is considered the measure of effectiveness of corporate communication. The role of corporate communications is to project a good and consistent image of the organization across multiple audiences [ 91 ]. Both corporate communication and image provide a potential route for competitive advantage for the organization [ 38 , 92 ].

Communication with stakeholders is essential for developing loyalty. The form of the communications is very important [ 93 ].

Creating Corporate Reputations : Identity, Image, and Performance -

Amine et al. Indeed, communication contributes to the dissemination of information on ethical activities and socially responsible company supporting the creation of relations of trust and commitment between the company and its stakeholders, and therefore your satisfaction and loyalty. Thus, the implementation of a corporate communication strategy positively influences the efficiency and effectiveness of the organization and its reputation.

The management recognizes the fact that keeping their existing customers is just as important as creating new ones, and loyalty marketing has become vital to its success [ 96 ]. However, not all loyalty programs perform effectively, and many companies struggle due to unsuccessful loyalty programs, and to maintaining loyalty requires an equal and continuous balance of three components: process, value and communication.

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  7. Communication may both enhance the loyalty and perceived benefits and still invoke a sense of community through the quality of information and the communication style [ 98 - ]. Nguyen and Leblanc [ ] defined corporate image as a subjective knowledge, or attitude such as ideology, corporate name, reputation and delivery system quality level.

    Corporate image is a multi-dimensional construct [ ]. Today, it is commonly agreed that a strong and distinctive corporate image is the key to sustainable competitive advantage [ , ]. Kennedy [ ] and Gotsi and Wilson [95] emphasize the importance of stakeholders as communicators and the impact they have on strengthening the corporate image.

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    7. Corporate image has two sides, namely, organizational and individual [ ]. For stakeholders, the corporation's appeal and reputation develop several images from sources, including stakeholders' perceptions, attitudes and emotions [ - ]. Dowling [ ] demonstrates that corporate image is the result of aligning organizations themselves with their stakeholders' perceptions through communication efforts [ ]. The distinction between CR and image is not always clear; neither is the nature of the reciprocal impacts [ , ]. Nguyen and Leblanc [ ] argue that, due to the meaning of the constructs CR and corporate image, it is acceptable to suggest that CR has an impact on corporate image.

      However, Brown et al. Fares et al. The reputation of a firm may be interpreted as the overall perception of a company, what it stands for, what it is associated with, and what one may be supposed to gain when buying its products or using its services [ - ]. The perceived reputation is subjective interpretation of reality, which is obtained by an individual and affects cognitive attitude and affective or emotional aspects [ ].

      The overall reputation of an organization combines judgments about different corporate attitudes interacting with stakeholder groups activities in the labor markets, capital and product markets [ 34 ]. These corporate attitudes and actions send different stakeholders the value of reputation of organizations [ ].

      Organizations wishing to build stakeholder loyalty need to consider the experiences of stakeholders when they interact with the corporate brand. Stakeholders, as customers, are exposed to many brand-related stimuli including brand identifying colours, shapes, typefaces, background design elements, slogans, brand characters, packaging, marketing communications, and the environment in which the brand is sold [ ].

      These are linked with four dimensions of brand experience: sensory, affective, behavioral, and intellectual. Loyalty is fundamental to the success of a cooperative organization, its members being the vital part of the organization and loyalty the way to its success [ ]. In the literature, loyalty has been defined as an attitude and as a behavior [ ]. The loyalty can be manifested in multiple ways, such as by expressing a preference for a company over others, by continuing to purchase from it, or by increasing business with it in the future [ ]. The satisfaction is thought to be an important antecedent of loyalty [ ].

      Kim et al. Chun [ ] has argued that the reputation might be related to loyalty, and that satisfaction and loyalty may be either antecedents or consequences of reputation. Andreassen [ ] modeled a relationship between reputation and loyalty and concluded that reputation may be the strongest driver of loyalty in the public sector.

      Authors like Marzo-Navarro et al. According to Loureiro and Kastenholz [ ] demonstrated the positive effect of the company's reputation on loyalty. Weiwei [ ] emphasized the importance given by researchers to reputation and corporate image as being the most important factors in building loyalty. Keller [ 89 ] defines image as perceptions about a company held in consumer memory. The loyalty is determined by image [ , ]. However, the relationship between image and loyalty is not clear since several studies have failed to demonstrate the direct impact of image on customer loyalty [ , ].

      Authors as Andreassen and Lindestad [ ] and Wu et al. The relationship between image and loyalty has brought differing results: while Sirgy and Samli [ ] report a direct relationship among image and store loyalty, the findings of Bloemer and Ruyter [ ] in the banking industry indicate an indirect relationship where the influence of image is mediated by service quality.

      In tourism Kandampully and Suhartanto [ ] found image to be one of the two most important factors for guests of a hotel to consider repurchase and recommendation. Previous empirical research supports a positive link between corporate image and loyalty [ , , , ]. Selnes [ ] also confirmed the influence of corporate brand image on brand loyalty. However, Davies and Chun [ ] found that corporate brand image had an indirect influence on brand loyalty via customer satisfaction when personality traits are used to portray corporate brand image in an off-line setting.

      Helm [ ] studied loyalty as a two-dimensional construct, namely affective loyalty and loyalty behavior. Individuals act according to an affective predisposition, so affective loyalty can be viewed as an antecedent of behavior loyalty. Weiwei [ ] emphasizes the importance given by researchers to CR and corporate image as the most important factors in loyalty building. Akroush et al. The proposed model presents the set of hypotheses developed. Corporate reputation produces interest to the various stakeholders and the model presented is adjusted to the 3 groups of stakeholders Figure 1.

      The research universe for this study comprised the members of three cooperatives, shareholders in the biggest dairy company in the Iberian Peninsula. Data were collected through a survey applied all over the country. In order to test the proposed investigation model and the research hypotheses, data was collected via structured questionnaires to each group stakeholders. The data collection has a total of valid responses consumers; cooperants; workers and in the period of January 2, and June 5, Concerning the level of education, the majority has the secondary level In order to operationalise the variables, we conducted a literature review and adapted scales used in previous investigations.