THEORY OF CORPORATE IDENTITY
Theory always underlies good practice. Theory identifies and defines the key variables in the process under consideration and explains the interrelationship among them. In the process for managing corporate identity, the fundamental variables are corporate identity, corporate communication, corporate image, and corporate reputation. Corporate identity is the reality of the corporation. It is the unique, individual personality of the company that differentiates it from other companies. To use the marketing metaphor, it is the corporate brand. Corporate communication is the aggregate of sources, messages, and media by which the corporation conveys its uniqueness or brand to its various audiences. Corporate image and corporate reputation are in the eye of the beholder. Image is the mental picture that people have of an organization, whereas reputation constitutes a value judgment about the company's attributes.
The interrelationship among these variables is shown diagrammatically in Figure 1. The objective in managing corporate identity is to communicate the company's identity to those audiences or constituencies that are important to the firm in a manner that is both positive and accurate. This process involves fashioning a positive identity and communicating this identity to significant audiences in such a way that they have a favorable view of the company. The feedback loops in the model indicate that an unsatisfactory image or reputation can be improved by modifying corporate communication or reshaping the corporate identity or both. The principal issues relating to the five components of the model—identity, image, reputation, communication, and feedback—will now be examined in greater detail.