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European Journal of Marketing 35,3/4 368

Development and management of corporate image in South Africa

Graduate School of Business Administration, University of the Witwatersrand, Johannesburg, South Africa
Keywords Corporate image, Corporate identity, Corporate communications, South Africa Abstract Gathers empirical evidence on how South African organisations manage their corporate image management process. The aim is to establish whether one of the leading models of the corporate image management process is applicable to practitioners in the area. While there is renewed interest in both academic and management circles, relatively few studies exist in the area of image management. In-depth interviews with ten organisations that substantially changed their images recently were undertaken. The results are reported and confirm that the current knowledge and constructs on the corporate image management process are being put into practice by marketers.

Russell Abratt and Thabiso Nsenki Mofokeng

European Journal of Marketing, Vol. 35 No. 3/4, 2001, pp. 368-386. # MCB University Press, 0309-0566

Introduction The purpose of this article is to establish how organisations manage their corporate image process. From an academic point of view, there has been much work on the development of models and processes recently. As Van Riel and Balmer (1997, p. 350) point out, ``the corpus of the knowledge on corporate identity is beginning to reach maturity. Management and academics are showing a renewed interest in the area who, in addition to marketers, include those undertaking research in organisational behaviour, human resources, strategic movement, graphic design, public relations and communication studies''. While there is now a clear theoretical understanding of how companies develop their corporate image, there is a need to test these from a management and practitioner point of view. A number of models of the corporate image management process have been developed. These include Dowling's (1986) model of the image formation process, the Shee and Abratt (1989) model of the corporate image management process, the corporate programme model of Van Riel (1995) and the corporate identity formation model developed by Balmer (1998). This article aimed to gather empirical evidence of the corporate image process in South African organisations. The objective is to validate the general applicability of current thinking and constructs in the area and to make recommendations for change if necessary. In particular, the objective is to empirically test the Shee and Abratt (1989) model of the corporate image management process.

The corporate image management process Corporate image A good review of corporate identity can be found in Van Riel and Balmer in South Africa (1997), while the relationships between organisational culture, identity and image are discussed by Hatch and Schultz (1997). The visual identity is discussed by Baker and Balmer (1997) and a framework for managing corporate identity is discussed by Markwick and Fill (1997). A good historical 369 overview of corporate identity has been described by Balmer (1998). The basis of the corporate image management process is the assertion that the existence of a corporate image for all organisations is not a matter of preference on the part of the organisation. An organisation cannot detach itself from the publics amongst which it operates. To manage a corporations image requires both an intimate understanding of how these images are formed and how to measure them (Dowling, 1986; Gray, 1986; Pearce, 1970; Balmer, 1998). The various elements of the corporate image management process have been discussed by a number of researchers. Dowling (1994) refers to six factors which affect corporate reputations. These are the vision or the guiding hand; formal company policies, the strategy and structure do matter; organisational culture, the invisible web; communication, what you do and what you say; corporate identity, what you see is all you get; and country, industry and brand images, where to get marketing leverage. Smith (1993) identifies four areas from which the corporate image is formed. These are product or services, including product quality and customer care; social responsibility, corporate citizenship, ethical behaviour and community affairs; environments, which include offices, showrooms and factories; and communications, which include advertising, public relations, personal communication, brochures and corporate identity programmes. The Shee and Abratt (1989) model of the corporate image management process describes three distinct stages. The first stage, called the corporate personality, provides management with an opportunity to develop a corporate philosophy which embodies the core values and assumptions, which in turn constitute the corporate culture. The next key part of the corporate management process involves those activities designed to effect the strategic management of the organisation. Once the corporate mission is clear, management sets the overall business objectives. The second stage of the model, called corporate identity, is the development of communication objectives, which are a subset of the overall business objectives. A communication philosophy will emerge as such issues as what to say, how much to say, who to say it to are dealt with. Issues and functions like image research, environmental scanning, socio-political monitoring, media liaison, production of the annual report and corporate advertising must be performed. The final stage, stage three, is called corporate image. The image interface represents the point of contact between the various stakeholders and the company. The stakeholders' experiences are shaped by the outcomes of the various management systems. The model is shown in Figure 1.

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Figure 1. The corporate image management process

For the purposes of this model, as well as this study, the following definitions were used. It is recognised that no universal definitions exist and therefore the authors find it necessary to define the concepts. (For a variety of definitions on corporate identity see Van Riel (1995, p. 30) and on corporate image, Van Riel (1995, p. 78).) Corporate personality can be determined before the organisation is formed, by deciding on what it is to do, what it shall believe in, how it shall operate, all factors which constitute a corporate personality. Corporate identity is the sum of the visual cues by which the public recognises the company and differentiates it from others (Bernstein 1984). Corporate image is the net result of the interaction of all the experiences, beliefs, feelings, knowledge and impressions that people have about a company (Bernstein 1984). Proposition development The three propositions developed for this study were originally posited by Fombrun and Shanley (1990) and Van Riel (1995). A good corporate image helps an organisation attract the publics necessary for success analysts, investors, customers, partners and employees. Corporate identity is the most visible element of a corporate strategy and the single element most responsible for a company's image. We can thus formulate the following proposition: P1: The corporate image is of strategic importance to the achievement of the long-term objectives of the company. Any attempt to manipulate corporate image will bear unfavourably on the achievement of company objectives. A meaningful corporate identity

programme will enhance a corporate image and reduce the risk of image Corporate image fragmentation. This is achieved by shaping a company's identity into a more in South Africa attractive image. Thus our second proposition is: P2: The corporate image is a manageable resource that can only be neglected at the organisation's own peril. Gray (1986) identifies two forms of communication, internal and external communication. The former is directed towards the inside public, that is, the employees, while the latter is aimed at the outside publics, that is stockholders, the government and the media. There is a need for, and the existence of, a structured, identifiable and visible approach to the corporate image management process. Chajet (1989) underlines this importance of communication, in so far as it refers to corporate image, by citing an instance where a company alters its business strategy. He states that when a company changes its mission or product line, it should co-ordinate a communications effort to assure investors, employees, and customers, that its image reflects this new direction. Thus, proposition three can be formulated as follows: P3: The corporate image is a business resource that needs to be proactively communicated to a varied audience facing the organisation. Methodology This study is qualitative in nature and involves three steps. First, a literature review was undertaken to help design an interview guide, second, a pilot study was completed to establish whether the interview guide was clear, relevant and complete, and third, an in-depth interview was held with ten large organisations that had changed their corporate identity in some way over the last decade. A copy of the interview guide is shown in the Appendix. The qualitative research method was used because its emphasis lies in producing data which is rich in insight, explanation and depth of information. Pilot study The pilot study was conducted with seven experts in the academic and management fields who have expertise in either the corporate identity, corporate image or corporate reputation areas. The exercise was aimed at establishing whether the interview document was specific and relevant; the words contained in it were unambiguous and clear; and that the statements were understandable and applicable to the corporate image management process. The seven respondents all provided comments on some of the statements and questions. Their suggestions were all incorporated in the final interview guide. This discussion document thus conformed to the theory of the corporate image management process as expressed by Shee and Abratt (1989) and was well understood by practitioners.

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The main study The objective of this part of the research was to find out how organisations manage the corporate image management process and to see whether the Shee and Abratt (1989) model was still relevant. The purpose was to conduct indepth interviews with the person responsible for this process. The population was made up of South African organisations that have had a major identity change within the last decade. These organisations were defined in terms of the following instances of corporate identity change. First, the organisation changed its name. The objective here is that the new name should leverage shareholder loyalty in the tradition of the existing company, yet still communicate the organisation's new direction. This objective is usually motivated by the desire to form a new identity that reflects the organisation's move from the current method of business operation to a new one and communicating with new and existing audiences. The action plan involves a carefully co-ordinated communications system that includes business forms, signage, advertising and public relations to alert the organisation's audiences to the new direction. Second, restructuring into a parent company model in order to facilitate diversification and improve long-term stock market performance. The objective is motivated by the need to ensure that the existing name connects strongly enough with the corporation's diversified industries. The action plan involves leveraging the name's value by implementing a sequence of new identity practices using the existing name. This could be achieved by assigning the current name only to the parent company, while prefixing the same name to operating companies. Third, modernising the organisation's identity. The objective is to modernise both the corporate identity and the communications practices to evoke the company's new direction while preserving its heritage. The motivation for this identity change could be the public's perception of the organisation's portfolio as one that remains limited to an outdated business. The organisation maintains the existing name, though the services provided by the organisation have drastically changed. With the addition of a new visual identification system, the organisation then establishes a set of consistent visual standards to express its future business focus. The sample Judgemental sampling was used to identify ten organisations that met at least one of the three criteria. In-depth interviews were conducted with the person responsible for corporate image management. The qualitative research method used in this study was the approach suggested by Leedy (1993) and Gummesson (1991). The research process is described in the next section. Data collection and analysis The ten organisations were contacted to identify the executive responsible for the corporate image management process. This person was then contacted

telephonically to solicit willingness to participate in an in-depth interview. All Corporate image ten agreed to participate. in South Africa All interviews were conducted on the premises of the respondent's companies over an average duration of 90 minutes. In order to encourage openness on the part of the respondents, and to enhance the quality of the responses, anonymity of both the organisation and the person was guaranteed. All the interviews were captured on a tape recorder and later transcribed. The 373 tapes were transcribed and the content of the transcriptions were cut up into statements and related statements were put together for analysis according to the Shee and Abratt (1989) model. The outcome of this analysis was then reported in a way which indicates the range of views expressed on the topics covered, with some indication of whether the views were strongly held and widely supported. It is hoped that the results convey the insights into the respondents' feelings on corporate image management. The instrument The interview guide or discussion document was developed from the literature review and the Shee and Abratt (1989) model in particular and modified as a result of the pilot study. It consisted of 17 questions that covered all the areas of the corporate image management process (see Appendix). Results The respondent organisations are first described and then the findings are presented. Respondents Organisation 1. The company is an electronic multinational with subsidiaries around the world. The corporate image programme involved dropping the prefix from the company's original name because it (the name) did not reflect the organisation's strategic vision to diversify into other business operations. The decision to modify the corporate identity was taken by the operating company's senior management together with the organisation's foreign principals. Organisation 2. The organisation is an electronic multinational with operating business units around the world. The company is part of a group of 51 subsidiaries with business interests that cover a varied spectrum of industries: chemicals and energy, electric and electronics, trade and service, finance and investment, insurance and information technology. The corporate identity change was the initiative of the group's governing body after research they commissioned indicated that the company's previous name, among others, did not have a ring of quality, had a bad image all over and was not easy to remember. The research further showed that the trend was to go for very short names, and that is how the new name was selected. Organisation 3. The organisation is one of the leading South African financial institutions. It was previously a subsidiary of a European group that

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sold its South African business interests during the sanctions era. Afterwards the company underwent a name change. Despite a number of controversies during its earlier days, the company remains one of the innovative and leading players in the banking industry. The latest corporate identity programme was implemented during the early part of 1998. Organisation 4. The organisation is a retail South African company that operates a chain of 500 clothing stores in the country and a few neighbouring states. The company runs its own manufacturing operations, distribution and retailing. The corporate identity process was initiated by the strategic move to reposition the organisation into other niche markets within the clothing industry. This process involved the retention of the company's name and a change of the company's logo to reflect its new strategic identification in terms of what it stands for. The company believes that this corporate image exercise will take the next five years to complete. Organisation 5. The organisation is a South African airline company that was formed four years ago when the new government enacted a decision to commercialise what used to be state enterprises of the past. The company's business operations involve developing and managing world class airports, renting them out in a form of concession to operators and maintaining them. Commercialisation was the main purpose, and based on that the company was formed. At that point, there was no strategic direction as to what was needed to ensure that commercialisation was achieved. After some strategic vision was established as to where the company should go, the challenge for the company was then to ensure that this strategic vision is reflected in what it looks like, that is, its identity. Organisation 6. The company is a South African broadcaster with operations in the country and neighbouring states. The company was previously state-owned and with the democratisation of South Africa in 1994 came the need to transform the organisation into a commercial enterprise. The transformation involved staff, operations and working towards what was going to be the organisation's image eventually. The process was essentially the launching of the organisation's new vision and new identity. Organisation 7. The company is a previously state-owned and run business entity that became a public company in 1990. The organisation is one of six operating companies of a group that was established by an Act of Parliament, the end objective of which is complete commercialisation of the group. The group has an annual turnover of R23bn and employs around 80,000 people. The corporate identity programme was implemented in 1992 with the paramount objective of breaking from the country's past and also to say that the company will be part of the future of the country. Organisation 8. The company is the trading and construction arm of an international group, a diversified manufacturing and services enterprise ranked among the world's 50 largest industrial businesses by Fortune's Global 500. The group consists of 30 principal member companies active in trading

and construction, the manufacture of automotive vehicles and components, Corporate image consumer electronics and appliances, computers and telecommunications, in South Africa financial services, hotels, heavy industry including aerospace and shipbuilding. The group employs 300,000 people world-wide. The corporate image programme was initiated five years ago by the chairman of the group to position it as a truly global corporation. 375 Organisation 9. The organisation is a previously state-owned enterprise that was founded in 1934. The company has an annual turnover of just over R5bn and it employs 10,000 people. The organisation operates locally and internationally in the travel and transportation industries. The company's corporate image programme was aimed at enabling them to compete more effectively in the international marketplace as a world class organisation, in addition to communicating its safety and professionalism. Above all, it had to represent the new South Africa with pride. Organisation 10. The organisation is a South African, fast food franchise that was formed ten years ago. The organisation recently expanded its operations, first, into Europe, and in more recent months into Asian countries, with success. It competes with well known multi-national fast food companies. Findings related to the Shee and Abratt (1989) model Stage 1 Corporate personality According to Shee and Abratt (1989) the cornerstone of the corporate image management process is the formal articulation of a corporate philosophy. Management has the opportunity to explore the corporate personality and to identify the corporate culture. Vision and mission issues. The respondents were all unanimous that the corporate vision and mission are articulated through the organisations' corporate identities and personalities, and are ultimately reflected in the various images that the publics hold about them. The respondents, however, held differing views in terms of which business aspect captures the essence of the company vision and mission. Product quality was the one aspect mentioned by four of the respondents as being at the heart of the vision and mission statement. These organisations saw as their main role and responsibility the provision of quality services and goods for their chosen markets. The first respondent went as far as saying that, in fact, it is the quality of their products that determined their entire mission statement and corporate identity to their various publics. One respondent asserted that their mission statement describes them as the leader in their sector, and it is their product quality that entrenches the positive image that they currently enjoy. The company mission is translated visually into an identity or signature, which then becomes a brand in the minds of the customer. In this way, the company mission is totally geared up to one's image objectives and the whole way one constructs the identity programme. Two of the respondents singled out the organisation's strategic direction as the one business aspect that is embodied in the vision and mission statement.

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They assert that while the visual cues that reflect the mission statement might change over time, the overall strategic direction, and hence the mission statement, should not change. The theme that emerged from seven of the respondents was that they wanted to build a strategic advantage. According to one respondent, the objective is to get as many customers as possible and tell them about the company. He asserted that one needs to establish the message that goes out to the organisation's audience, and then get that message out and have confidence in that message. To have a well constructed image that is favourably disposed to that company will by far give that company a strategic advantage over its competitors. That leads directly to profit and satisfying shareholders' needs. That is why the identity programme and the image that it results in are so important. Another respondent indicated that after the strategic vision was established as to where the company should go, the next step was to ensure that this strategic vision is reflected in the company's identity. For two other respondents, the image building process was a response to align the corporate identity with the outside environment. According to the second respondent, the company's foreign principals researched the previous company name and its accompanying identity and they found that it did not have a ring of quality to it, was not easy to remember and `` . . . It just had a bad image all over''. They then researched what trends there were in terms of corporate names and what came up was a clear trend to actually get very short names. While there was no shift from the broader strategic framework guiding the company, the new name, logos and other identity visual cues were redesigned to reflect the changing environment. For another respondent, the image building process within the organisation was brought about by commercialisation. The company was previously a wholly-owned state corporation. Once the organisation had decided to go this route, it needed an identity that was ``vibrant, energetic, service-oriented, people-oriented type of an image''. The respondent also indicated that since they are in a highly progressive industry, they have to keep pace with developments in the industry. Attributes of a corporate personality. The objective here was to establish if there is a universal set of attributes that go into the image building process. In response to the essence of the research, a common set of attributes would have been of interest in two ways: first, given this common ground, do organisations then follow the same framework or approach in building their various images? Second, despite sharing the same attributes, do various organisations go about building their images in different ways? Gray (1986, pp. 55-6) emphasised the significance of the attributes by saying that:
Exterior symbols are a first indication of the nature of a business. The corporate name, logo, building address, office layout, furnishings, company cars, service vehicles, stationery, and product labels are among many outward visuals that carry the corporate image to the outside

world. These symbols trigger conscious and subconscious images in the public image for the new or expanding company, exterior image is not simply a visual symbol of success but represents public recognition of product quality, and it goes without saying that this figures into the profit margin.

Corporate image in South Africa

What emerged from the interviews was that organisations place a different emphasis on the various attributes that go into the image building process. The general approach, however, in terms of how their various images are enhanced is the same. The attributes in the following list were mentioned by more than one respondent:, product quality; corporate philosophy; employees; company logo; dress code; advertising campaign; company name; and front line staff (telephone answering, switchboard, reception). Role of competitors. The aim here was to establish the extent to which the environment in which the company operates shapes its image. One respondent indicated that the company does a strategic map of consumer perceptions of ``where our image is or where people perceive it to be''. The company then applies an image shift plan to move the image to where they want it to be, if they are unhappy with the current one. For another respondent, the competitive environment dictates that one can not be just better, but it is imperative that you are different. The respondent contended that being better can be copied overnight. The corporate image affords the organisation the platform to identify itself very clearly in the market as standing for something. Through the corporate image, the company reflects the values that it espouses. Most of the respondents were of the opinion that the role of competition in shaping one's corporate image is related more to the life cycle of the company. They assert that more than anything, the corporate image is not imposed on the organisation by the outside environment, but that it is internally determined. The outside environment can only impose on the organisation the need to realign one's image, but in line with the broader strategic direction taken by the company. In supporting this argument, one respondent asserted that a corporate identity programme is not a static one that you do once a year, but it is a dynamic, ongoing process. The corporation lives it every day and it is modified in the light of the issues that ``you've isolated there, competitor activity, for example''. The respondent further argues that one should not change direction in a major way too often, as this just results in confusion internally and externally. The organisation must be flexible in that broad direction. For an established organisation, it can not just turn its back on its heritage and redesign itself in response to the outside environment. A new organisation has the opportunity to assess its competitive environment and decide on a niche market. This environmental influence can then be factored into the corporate philosophy and core values that the new organisation will espouse. From this will result the corporate personality and identity programme that will form the face of the company. Once the resulting image has been entrenched in the various publics that interact with the organisation, the

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company can then only realign itself, but in line with the already established image. Adoption of corporate philosophy Role of employees. The objective here was to address the extent to which employees are brought on board as co-owners of and responsible for the creation of a favourable corporate image. Gray (1986, p. 72) emphasised the importance of involving everyone in the organisation when he made the following statement that:
Companies do not create images. People do. And chief executive officers are among the most likely candidates involved in the image building process. From the chief executive officer to staff and line management, all are seen as carriers of the corporate image torch.

Gray (1986) further asserts that participation from all levels of staff is paramount to the implementation of corporate objectives. To neglect the inclusion of lower level staff, especially front-line employees, in corporate mandates, results in lack of cohesion, which not only damages image but possibly damages corporate integrity itself. When employees are given a clear view and unambiguous direction, the corporation is on its way towards successfully achieving its objectives. The following themes emerged from the respondents on the involvement and role of employees. All employees are involved, but at various levels of the corporate identity programme. For two of the respondents, the corporate identity programme was initiated by the marketing division, while in five of the responses, the corporate identity programme was decided at the corporate board level, with the chief executive officer or the chairman of the board spearheading the process. Six of the respondents indicated that the responsibility for the corporate image rests with everyone in the organisation, while four of the respondents indicated that the managing director or the chief executive officer represented the embodiment of the corporate image. A strong argument was made by the second respondent against having one person as the embodiment of the corporate image. He contended that people fade. There is no culture of the individual in the company in the sense that no one individual makes the company. A team of individuals working together makes the company. One respondent indicated that even though everyone should get involved, lots of decisions are made without consulting everyone. There are other decisions of a corporate nature where everyone is involved and they get their input in. The respondent emphasised the importance of acknowledging everybody's input. This will help the organisation to get consensus, a focused position and a focused direction. When everybody knows why they are going in the direction they are, then they are only too happy to go. The argument for the marketing people to lead the process was that they are the people who are looking at the organisation from the point of view of the

customer, because brands are owned by the consumers and not the managing Corporate image director or the chairman of the company. in South Africa Another respondent highlighted the need to communicate with all the employees to ensure a total buy-in. The aims and objectives of the whole identity programme should be communicated up-front the sort of image the company is trying to achieve. In this way, ``everybody can start to live that 379 way''. Gray (1986) says that the crucial prerequisite for effective employee relations and communication is the creation of a positive organisational climate based on feelings of trust, confidence and openness. In effect, organisational climate consists of the subjective perceptions held by the employees, of such realities as policy, structure, leadership, standards and rules. The primary responsibility for organisational climate belongs to line management, from the chief executive officer to the supervisors. Staff must consistently stress and practice the need for two-way communication. Communication policies must be goal-oriented rather than event-oriented. They should focus on gaining employee understanding and identification with the organisational objectives and problems. Role of outside consultants. The aim was to establish the role of consultants in the image design and management process. All the respondents described the role of outside consultants as limited to helping the organisations articulate best what they (the organisations) have decided to be. How an organisation presents itself to the outside publics is a serious building block on the corporate image building plan. One respondent emphasised this point by indicating that the consultant works on a brief from the organisation. The organisation tells the consultants what to do, ``otherwise if internally you do not know what your image is or your personality is, then there is a problem''. Another respondent emphasised the role of consultants as limited to the visual aspect only. The company relies more on consultants to provide the platform in terms of the best media available to sell their image. The company decides what it wants to be and the consultants tell them how best to do it. According to another respondent, one first has to establish the strategic direction which the organisation wants to follow. The brief that goes to the consultants should then reflect the underlying strategic principles. One respondent expressed the view that the consultants' role is not more than that of an objective person who presents a different window on what has essentially been established. The corporation itself guides the whole process, with assistance from the consultants, and not the other way round. Corporate image plan. The objective was to establish the extent to which the corporate image management process is structured, in terms of what needs to be done, how it should be done and what the overall objectives of the process are. Six of the respondents indicated that they had a stand alone image plan. For the other four of the respondents, the image plan is part of the marketing strategy or the corporate image is indirectly managed via systems and

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structures that were originally designed to manage some other aspect of the business. The marketing plan executes the corporate image. The corporate image and the personality, the character of the organisation, are all carried in the advertising. From a marketing point of view, the organisations have marketing plans in terms of the different product categories, and in terms of the corporate identity and corporate image, just mirrors exactly what that plan is doing. In summary, the respondents view corporate personality as an important building block in the corporate image management process. They do have an image plan. They do consider corporate reputation issues in their strategic planning and strategy formulation. Stage 2 Corporate identity The next key activity in the corporate image management process is the development of the communication ``game plan''. This includes the development of communication objectives, and the development of structures and systems that will aid and facilitate the organisation's corporate identity. The following modes of communication emerged from the respondents. First, presentation by the board members or senior executives to various levels of the organisation. This is done in a descending order, starting from senior management to lower ranks of the organisation. Second, through electronic media. According to one respondent, everybody in this company, from the lowest level to the highest level, has their own Internet address and they get all the information via the Internet. Third, staff gatherings or sessions at various geographic locations of the company. These sessions are not divided in terms of seniority or rank in the organisation, but all attend at the same time. Fourth, through one-on-one interactions, and finally, roadshows by the senior staff members, preferably the managing director or the chief executive officer, are effective ways of communicating. Interaction with corporate publics. The objective was to establish if the various organisations recognise the impact of its audience on the pursuit of corporate objectives. Gray (1986, p. 4) qualifies this statement when he says that the ``corporate image is more than the product of the phenomenon of mob psychology''. For this reason, each organisation needs to know its publics and appropriately pitch its communication when dealing with each one of these groups. Corporate image results not so much from a single attitude held by the public at large, but from a mosaic of attitudes formed in the minds of those in close contact with the organisation. The general consensus from the various respondents echoes Gray's (1986) assertion that the organisation's publics are found both within and outside the organisation. He identifies the internal publics as the employees. The image that is formed internally by the employees then spills into the community and spreads beyond with rippling effect. Gray (1986) further identifies the external publics as the community, consumers, suppliers, investors, the media and

government. An interesting observation was that none of the respondents Corporate image mentioned the suppliers as members of their publics. The publics mentioned by in South Africa the respondents were customers, employees, government, the community, the media and shareholders. The most important publics were considered to be the customers, the staff and the government. According to one respondent, the customer is always king, but reckons that 381 this depends on the product that the organisation sells. The same customer, however, is usually the politician as well in his private capacity and he is also the organisation's shareholder in his private capacity. Regarding the role that these publics play in their different capacities, the respondent was of a strong opinion that one does not ``want to make business such a consultative thing that you get into what is democratic paralysis. One can talk endlessly about issues, but you actually do need action provided that you discussed them for a set period and then it is over and you put in an action plan''. One respondent mentioned the community, customers, staff, the media, and shareholders as forming the company's set of publics. The respondent categorically stated that his organisation elevates the staff, customers and the shareholders, in this particular order, above the rest, as the organisation believes that these are the three critically important ones. The following means of communicating with these publics emerged from the responses: monthly newsletters; marketing videos; leaflets to customers; supplements to monthly statements, and club letters to registered members. Public relations. The aim here was to establish the extent to which organisations place importance on corporate responsibility. Many organisations maintain perspectives that render them unrelated to their communities, with the achievement of corporate business alone being all they can see. Gray (1986, p. 12) notes that:
The corporation is being politicised and has assumed another dimension in our society that it did not have as recently as ten years ago. As a result, the corporation has become more conscious of using communications to reach its objectives, and it is articulating its position more clearly to government agencies, legislators, shareholders, employees, customers, financial institutions, and other critical audiences.

All the respondents expressed the view that they never make political statements or take any political stance. The term ``political'' was used in the context of any moral or judgemental issues that are of public interest. One respondent indicated that his company represents diversity in all its forms. The organisation's view is that if they were to take a stance on an issue, they will choose the wrong side because they might have a lot of customers out there that will be alienated because they believe otherwise. For this reason, they will never take a stance on any matter that is controversial. The view of alienating a section of each one of the organisation's stakeholder groups was echoed by the third respondent. The respondent put it somewhat differently when he pointed out that the organisation's political stance is to be apolitical. The organisation can not be anything but apolitical because it will destroy its image by creating biases in the minds of the people. For another

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respondent, the reason not to take a political stand was purely a business one because ``we do business with everybody''. According to one respondent, the organisation is guided by policies that flow down from board level. These policies cover a variety of issues like education, language, sexual harassment and threatening diseases. So, in terms of political stance on such issues, the organisation does not lay down any rules and does not give views. Generally, the respondent believes that the organisation has no views and that it can not make everybody happy. Another respondent thought that this was an unfair question for the organisation. He expressed the view that it is something that may be personalised. Within the company itself, there may be people who have different views relating to an issue:
You may take a stand as a person, but for our managing director to stand up and say this is the view of the company, that really may be out of order.

The respondents were, however, prepared to express views on the following issues: one respondent drew a line on the two issues that they go public on. The company is totally against child labour and has agents outside South Africa who screen their suppliers. The company will, however, not give or take a stance on an issue like the death penalty. The respondent's view is that the product can not express any political views, but is there to perform for the person who purchases it. In terms of the various publics, the company has to give a view which will epitomise the brand. For another respondent, the company responds positively to a lot of charitable requests. At the beginning of each year, the company sets aside a certain amount of money for charity. They investigate if they can support any charity in the sense that these community organisations can do some things for the company. According to another respondent, the company believes in black economic empowerment. The company promotes black economic empowerment by subcontracting out most of its work to people who were previously disadvantaged. The areas involve consulting jobs and printing company stationery. The respondent believes that they are giving these previously disadvantaged people the opportunity to empower themselves. The company makes a public statement on this issue by inviting contracts for tender in the newspapers. The company has come under strong attack from various political and business organisations for their stand on the black economic empowerment issue. Their resolve, however, is strengthened by their firm belief that the positives far outweigh the negatives. One respondent mentioned AIDS and affirmative action as the two issues on which the company has unreservedly taken a public stand. In summary, respondents do set communication objectives and they develop structures and systems to support both internal and external communication. What is said, when it is said, and how it is said play an important role in corporate identity planning.

Stage 3 corporate image Corporate image According to the Shee and Abratt (1989) model, the image interface represents in South Africa the point of contact between the various stakeholders and the company. It is at this broad interface that all the stakeholders' experiences (which determine the corporate image) are shaped by the outcomes of the various management systems. 383 Feedback on corporate image. The objective was to establish the effectiveness with which the corporate image process was being managed. Stop-gap measures providing temporary remedies are not the answer. Responding only after a rude awakening such as a media expose , an employee or consumer lawsuit, is a poor substitute for sound image-building policies. The successful corporation relies on long-term efforts to secure and hold favourable public perceptions. Constant re-evaluation of the image provides the organisation with a platform to communicate. The sources of feedback were identified in terms of: customer surveys, employee surveys, and image tracking mechanisms. Eight of the respondents conducted customer surveys in their organisations. The respondents differed in terms of the frequency of these surveys. Four of those respondents who conducted research said they do it once every year. The rest of these respondents do it either more than once a year or only when it is tactically right for the company. According to the sixth respondent, the organisation has its own internal research unit which does a variety of surveys. The respondents also differed in terms of the reason(s) for conducting these surveys. According to the fifth respondent, their industry is regulated by a regulator that ensures that the service standards are maintained. For this purpose, the industry uses a tool called the expert service standard monitor, which sets benchmarks for the industry players to meet. The organisation, however, goes beyond the regulator because it wants to project an image of service-orientation. For another respondent, the consumer surveys are done by the various business units or operating companies, and not at the corporate level. According to one respondent, the organisation solicits feedback from the customers when it is tactically right for the company, in terms of where they want to move the company's image. When the company was involved in a name change, the organisation went out and asked perceptions in terms of what the name change would mean to the brand. For this organisation, research is done on an ongoing, but not regular basis. With regard to feedback from the employees, five of the organisations conduct employee surveys. As with the customer surveys, the frequency and the objectives of these surveys differ from one organisation to the next. In contrast to the customer surveys, these surveys were less frequent and more human resources related. Three forms of soliciting feedback from employees emerged; formal, scientific research; informal, one-on-one debriefing sessions; and company magazines or newsletters, which companies use as a platform for staff queries,

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questions and whatever employees are unhappy with. Employees contribute either articles or letters. Seven of the organisations indicated that they have some mechanisms for tracking corporate image. These were also varied, but the following two methods capture the general trend that emerged from the participants' responses. First, scientific surveys or tracking studies were mainly customer orientated. These surveys test the perceptions of customers on the corporate image. Second, from a public relations point of view, if there is a particular mention about the company in the media, whether good or bad, it gets captured electronically. In summary, the respondents tracked corporate image in some way. They used image tracking mechanisms, employee surveys as well as customer surveys. They are obviously very concerned about the image the various publics have of their organisations. Discussion Proposition one stated that the corporate image is of strategic importance to the achievement of the long-term objectives of the organisation. The response to this statement came out strongly and clearly when the respondents were asked what the objectives of the image building process were. Just about all the respondents used the word strategic in their replies. This supported the assertion that the corporate identity, and therefore the resulting corporate image, is the most visible element of a corporate strategy. The respondents also expressed a strong link between the corporate image and the company's vision and mission. The two latter concepts define the company's system of principles for guidance in its daily operations. The corporate image is the external publics' perceptions that result from their interactions with the organisation. It is therefore logical that if the company is guided by its vision and mission in its daily interactions with its publics, the resulting image will mirror those guiding principles. The findings clearly indicate the acceptance of this proposition. Proposition two stated that the corporate image is a manageable resource that can only be neglected at the organisation's own peril. This proposition suggests the existence of a structure or a framework through which the company's management deliberately intervenes in creating the desired perceptions in the minds of the publics facing the respective organisations. All the respondents recognised that their corporate image is a manageable resource. It was largely the responsibility of the marketing and/or the public relations divisions in the organisation. The mere existence of a corporate image plan is not the only ingredient necessary for the achievement of the desired image. It is important that the organisation constantly measures the perceptions held by the various publics. This was supported by the respondents. Proposition two is thus accepted. Proposition three stated that the corporate image is a business resource that needs to be proactively communicated to a varied audience facing the organisation.

The objective of and the need for a co-ordinated communications strategy is Corporate image to reflect the overall corporate strategy and its mission. Failure to ensure in South Africa coherence in the communications effort can blur the organisation's image. The first step in any communications effort should be the identification of one's audience. Most of the respondents expressed a very clear sense of knowing who their publics were. While the majority of the respondents were very clear about 385 who their publics were, only a few had a communications strategy that directly supports the corporate image programme. This strategy was strongly embedded in the overall marketing strategy of the organisation. It was also very clear that the various respondents recognise the potential that the content of their communication has on the outcome of their image, as perceived by their publics. We can thus accept proposition three. Conclusion This study has indicated that there is a general consensus on the main constructs of the corporate image management process. These include a positive image and corporate reputation favourably predisposes the organisation towards its target markets. In addition, a constant two-way communication between the corporation and its target audience is necessary to reinforce the desired image. The design and the management of the corporate image is not an event but an ongoing process that needs a structured approach to achieve the desired organisational objectives. These findings support the Shee and Abratt (1989) model of the corporate image management process.
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Markwick, N. and Fill, C. (1997), ``Towards a framework for managing corporate identity'', European Journal of Marketing, Vol. 31, pp. 396-409. Pearce, E. (1970), Marketing and Higher Management, Allen & Unwin, London. Shee, P.S.B. and Abratt, R. (1989), ``A new approach to the corporate image management process'', Journal of Marketing Management, Vol. 5, pp. 63-76. Smith, P.R. (1993), Marketing Communications: An Intergrated Approach, Kogan Page, London. Van Riel, C.B.M. (1995), Principles of Corporate Communication, Prentice-Hall, Hemel Hempstead. Van Riel, C.B.M. and Balmer, J.M.T. (1997), ``Corporate identity: the concept, its measurements and management'', European Journal of Marketing, Vol. 31, pp. 340-55. Appendix. Discussion document (1) When deciding on the corporate personality and identity, who within the organisation is involved? (2) What is the role of competitors in shaping the corporate image? (3) Is there a link between the company mission and vision and the corporate personality and identity? (4) Which factors go into the image building process? (5) What motivates the image building process? (6) Which publics are targeted by the image building drive? Is there an order of priority? (7) To what extent is the mission and vision communicated to all the employees? (8) Do outside consultants have a role to play in the development and management of the corporate image? Is so, what role? (9) How are the corporate personality and identity cascaded throughout the organisation? (10) (11) (12) (13) (14) (15) (16) (17) Does the company have a corporate image plan? How often, if ever, does the organisation communicate its political position? Is the interpretation of the mission and vision the same throughout the organisation? How often are customer satisfaction surveys conducted? How often are employee satisfaction surveys conducted? Are there any image tracking mechanisms in place? Has the company been involved in any controversies in the last ten years? How was the situation handled? Has the company been involved in any image-repair exercise?