E4-E5 (Management) – Corporate Image Building & PR Rev date: 29-03-11

Chapter 12

Corporate Image Building & PR

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Corporate Image Building & Public Relations

Corporate Image: As the name suggests, it is an image. Image gets formed in a mirror.
In the context of corporate image, the mirror is the mind of target audience, be it
customer, media, employees, government, shareholder etc. Images rest in the sub-
conscious minds of the customers and shareholders alike. This is a very sacred place,
access able only through subtle messages and a solid track record, slowly building into
images of respectability, confidence and trust about a particular corporation. One mistake
and these images are shattered, like a glass never to be repaired again. For this reason,
nasty scandals kill the corporate images once and for all. Patchwork and bandages only
prolong the agony. Corporate image is like a house of cards, delicate and fragile, like a
crystal palace, it can’t have stones thrown at it. Image is not a fort that you can attack
again and again and hope that it will survive.

Corporations that develop clear messages and clearly communicate their stories to both
the internal organizations and the external forces are the real players. The rest are either
still discovering who they are or just making stories as they go along or periodically
falling flat on their faces.

In businesses of all sizes, it is vital that managers recognize the importance of creating
and maintaining a strong image, and that they also make employees aware of it.
Corporate image begins within the offices of a company's managers. It should be based
on the development of good company policies. The company itself does not solely create
a corporation’s image. Other contributors to a company's image could include news
media, journalists, labour unions, environmental organizations, and other NGOs.
Governments, charitable organizations, religious organizations, political organizations,
and educational organizations all tend to have a unique image, an image that is partially
deliberate and partially accidental, partially self-created.

The creation of a corporate image is an exercise in perception management. It is created

primarily by marketing experts who use public relations and other forms of promotion to
suggest a mental picture of the corporate to the public. Typically, 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.
Generally following tools are used for building corporate image:

• Branding
• Corporate Identity Manual

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• Advertising
• Public Relations

Branding: It is required to differentiate a company, its products/services from that of

others. Branding requires lot of insight into the company’s strengths & the mind of target
segments. For example when somebody takes the name of ‘Sony’ what imagery comes to
our mind. Is it that of superb product quality, high price or otherwise. Similarly think
about HP, Tata, Infosys. Brand can be a logo, name or signage. When people talk about
BSNL, what comes to their mind will signify the corporate image of BSNL. Brand names
need to be protected for trademarks with appropriate authorities.

Corporate Identity Manual: Many companies have a manual how their offices,
showrooms, stationary, communications will depict the company branding. This is done
to convey a unique image to the target segment across its territory. BSNL also has its
corporate identity manual. This manual standardizes the use of BSNL logo in various
circumstances, office signage, name-plates, ID cards, visiting cards, letter heads etc.

Advertising: It is a paid form of communication with target segments. Various media

used for advertising are electronic (TV, internet etc.), print (magazines, newspapers etc.),
outdoor etc. Brochures, pamphlets etc are also used to create awareness for building
positive opinions about the company.

Public Relations
Success must be conferred on us (organization) by Outsiders like customers, opinion
leaders, neighbors, elected officials, vendors, voters, prospective employees, coalitions,
stakeholders, shareowners, therefore, the bottom line for every organization is to Build
relationships that Earn Trust and Motivate Supportive Behaviors. It is a planned and
sustained effort to bring out a harmonious interaction between an organization and the
community, through dissemination of information and ideas about the organization, to its
publics and to provide feedback from the publics to the management.

• A planned effort or management function

• The relationship between an organization and the publics
• Evaluation of public attitude and opinion
• A mouth piece for organization’s policies, procedures and action as they relate to
the publics.
• Execution of an action and/or communication program
• Internal education

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• Handle adverse situations, development of good rapport, goodwill, understanding

and acceptance through a two-way communication..
Normally PR is not directly paid for and hence has more credibility.

Expectations from PR activities

• Improved purchases by, and relationships with, customers
• Better community relationships
• Active support on issues from opinion leaders
• Reduced tension with watch dog agencies
• Greater employee loyalty or productivity
• More confidence in the value of a company

Different ways to promote corporate image through Public Relations

1. Public relations are often called on to give existing products and service a boost
by creating or renewing visibility. Public relations can interest the media in
familiar products and services in a number of ways, including holding seminars
for journalists, and supplying the media with printed materials ranging from
"backgrounders" (in-depth news releases) to booklets and brochures. Changes in
existing products offer additional public relations opportunities to focus
consumers' attention. An effective public relations campaign can help to properly
position a product and overcome negative perceptions on the part of the general
public.

2. Annual reports and stockholder meetings are the two most important public
relations tools for maintaining good investor relations. Some companies hold
regional or quarterly meetings in addition to the usual annual meeting. Other
companies reach more stockholders by moving the location of their annual
meeting from city to city. Annual reports can be complemented by quarterly
reports and dividend check inserts. Companies that wish to provide additional
communications with stockholders may send them a newsletter or company
magazine. Personal letters to new stockholders and a quick response to inquiries
insure an additional measure of good will.

3. Public relations involve communicating not only with a company's stockholders,

but also with the wider community of financial analysts and potential investors.
An effective investor relations plan can increase the value of a company's stock
and make it easier to raise additional capital. In some cases special meetings with
financial analysts are necessary to overcome adverse publicity, negative

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perceptions about a company, or investor indifference. Such meetings may take

the form of full-day briefings, formal presentations, or luncheon meetings.
Mailings and ongoing communications can help a company achieve visibility
among potential investors and financial analysts.

4. Organizations conduct a variety of special programs to improve community

relations, including providing employee volunteers to work on community
projects, sponsoring educational and literacy programs, staging open houses and
conducting plant tours, celebrating anniversaries, and mounting special exhibits.
Organizations are recognized as good community citizens when they support
programs that improve the quality of life in their community, including crime
prevention, employment, environmental programs, clean-up and beautification,
recycling, and restoration etc.

5. Employees are one of the most important audiences, as internal customers which
a company posses. An ongoing public relations program is necessary to maintain
employee good will as well as to uphold the company's image and reputation
among its employees. The essence of a good employee relations program is
keeping employees informed and providing them with channels of
communication to upper levels of management public relations programs focusing
on employees include training them as company public relations representatives;
explaining benefits programs to them; offering them educational, opportunities;
and staging special events such as picnics or open houses for them. Other
programs can improve performance and increase employee pride and motivation.
Five basic principles of good employee relations are:
• Employees must be told first
• Tell the bad news along with the good
• Ensure timeliness
• Employees must be informed on subjects they consider important: Future
plans of company, Job advancement opportunities, productivity
improvement, Personnel policies and practices, Competitor comparisons,,
How my job fits into the organization, How external events affect my job,
How profits are used, Financial results, Advertising & promotional plans,
Personnel changes and promotions, Personal news, Organizational
community involvement etc.
• Use the media that employees trust: Small group meetings, Large group
meetings, Employee handbook, orientation program, Bulletin boards,
Regular employee publication, Audio visual programs, union, Mass
media, Grapevine
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6. Public relations can also play a role in recruiting new employees; handling
reorganizations, relocations, and mergers; and resolving labor disputes. It can
further help in managing good relationship with other bureaucratic and law
maintaining forces.

7. Through press media organizations write their own articles and submit them to
editors so they may publish the article(s) in their publications. This is a highly
effective PR tactic. Such sponsored articles in a form of news serve to educate
business market, increase the visibility of the company, and may be an excellent
way to find new customers for business.

8. Public relations in the political arena covers a wide range of activities, including
staging debates, holding seminars for government leaders, influencing proposed
legislation, and testifying before a congressional committee. Trade associations
and other types of organizations attempt to block unfavorable legislation and
support favorable legislation in a number of ways.

9. Organizations attempt to generate good will and position themselves as

responsible citizens through a variety of programs conducted in the public
interest. Some examples are environmental programs such as water and energy
conservation and antipollution programs. Such programmes project the image of
organization as responsible and reliable organization.

10. Business units can also use PR, as a tool for educating consumers’ .It may include
sponsoring television and radio programs, producing manuals and other printed
materials, producing materials for classroom use, and releasing the results of
surveys. In addition to focusing on specific issues or industries, educational
programs may seek to inform consumers about economic matters and business in
general.

Corporate Image and Public Relations Campaign

Effective public relations require a knowledge, based on analysis and understanding, of

all the factors that influence public attitudes toward the organization. While a specific
public relations project or campaign may be undertaken proactively or reactively to
promote corporate image or to manage some sort of image crisis.

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• The first basic step in either case involves analysis and research to identify all the
relevant factors of the situation. In this first step, the organization gains an
understanding of its various constituencies and the key factors that are influencing
their perceptions of the organization.

• In the second step, the organization establishes an overall policy with respect to
the campaign. This involves defining goals and desired outcomes, as well as the
constraints under which the campaign will operate. It is necessary to establish
such policy guidelines in order to evaluate proposed strategies and tactics as well
as the overall success of the campaign to promote the corporate image.
• In step three, the organization outlines its strategies and tactics. Using its
knowledge of the target audiences and its own established policies, the
organization develops specific programs to achieve the desired objectives.

• Finally, step four involves actual communication with the targeted public. The
organization then employs specific public relations techniques, such as press
conferences or special events, to reach the intended audience. In step five the
organization receives feedback from its public. How have they reacted to the
public relations campaign? Are there some unexpected developments? In the final
step, the organization assesses the program and makes any necessary adjustments.

Conclusion

Positive Corporate Image is must for the success of an organization. Public relations are
an essential function for the survival of any organization. PR is the management of a
company's public image that helps the public understand the company and its products.
Public relations are most effective when it is viewed as a strategic management function
supporting the business goals of the organization. A healthy public relations strategy
must permeate all aspects of the business to promote the corporate image. BSNL has a
full fledged PR division at corporate office and help of Public Relation Agency is also
taken. At Circle level & SSA level, PROs are designated who arrange interactions with
various media and participate in exhibitions/melas/seminars for positive image building.

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BSNL Corporate image assessment

Every year, BSNL is ranked prominently in various surveys conducted by independent
bodies. Some important achievements are listed below:

• BSNL was ranked first in Visibility & Image score for Telecom companies in the
survey conducted by Business Today magazine in December 2003. BSNL was
ranked fourth among all brands in India. This survey ranking was judged on the
basis of coverage (visibility) and quality of exposure in various media during the
year (i.e. positive news, negative news, neutral and size/duration of coverage).

• BSNL won Golden Peacock Award for Corporate Social Responsibility: 2005
Award instituted by Institute of Directors, Centre for Corporate Governance in
association with World Council for Corporate Governance

Economic Times-AC Nielsen Trusted brand Annual survey, Telecom sector ranking
Brand Rank-2004 Rank-2005 Rank-2007 Rank 2009
BSNL 1 1 3 3
Airtel 3 2 1 2
RIM 2 3 2 1
Tata 4 4 4 5
Vodafone 4

• BSNL selected as Super brand 2007

Super brands are a concept that originated in the United Kingdom in 1993. The
Super brand status is awarded by independent judging panels of experts called the
Super brands Council. (www.superbrandsindia.com)

• CNBC Awaaz award 2007 Best Broadband and Landline service provider

• CNBC Awaaz 'Hall of Fame' special award 2008

• Voice & Data Top Fixed Services, NLD, and Broadband” 2008

• Voice & Data Top Fixed Services and Broadband” 2009

• CNBC Awaaz award 2009 Best Broadband service provider

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Questions:

1. What is corporate image?

2. Who creates corporate image?

3. Briefly explain the tools used for building corporate image?

4. What is Public Relations (PR)?

5. What are the expectations from Public Relations (PR) activities?

6. Write briefly any five ways to promote corporate image through Public Relations?

7. What are the basic principles to maintain good employee relations?

8. How corporate image & public relations campaign may be undertaken?

9. What are some important achievements of BSNL image assessment?

10. What is “Golden Peacock Award” & when BSNL is awarded from this award?

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