Management Decision

Corporate reputation management: living the brand

Manto Gotsi Alan Wilson

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Corporate reputation management: ``living the brand''

Manto Gotsi
University of Strathclyde, Glasgow, UK
Alan Wilson
University of Strathclyde, Glasgow, UK

Downloaded by SELCUK UNIVERSITY At 18:01 05 February 2015 (PT)

Keywords

Corporate image,
Competitive advantage,
Employee attitudes,
Corporate culture

Introduction

Since the mid-1980s senior managers have

recognised the strategic necessity of building
and sustaining a favourable corporate
Abstract
reputation to create corporate competitive
It is recognised that an
advantage. This recognition has been
organization's corporate
mirrored by a wealth of academic
reputation is affected by the
actions of every business unit,
publications that have highlighted the value
department and employee that
of a favourable corporate reputation as a
comes into contact with another
stakeholder. However, the means means of enhancing an organisation's
financial value, influencing intention to buy,
by which employees can be
directed or encouraged to ``live
acting as a mechanism for assuring product/
the brand'' is an area which has
service quality, influencing customer and
received relatively limited
coverage. This article explores the employee loyalty, and offering inimitability
to the organisation. Authors over the years
management actions that are
required if employees are to
have also recognised that an organisation's
support and enhance the
corporate reputation is affected by the
organization's corporate
actions of every business unit, department
reputation. The study illustrates
and employee that comes into contact with
the pivotal role of staff in the
corporate reputation management another stakeholder (Post and Griffin, 1997)
process and presents ways
and hence it is the job of every employee to
through which organizations can
protect and enhance their company's
encourage commitment,
reputation (Saxton, 1998). Organisations are
enthusiasm and consistent staff
behaviour in delivering the brand
therefore increasingly regarding their
values.
employees as vital corporate assets in
forming and sustaining a favourable
corporate reputation (Gofton, 2000). However,
the means by which employees can be
directed or encouraged to ``live the brand'' is
an area which has received relatively limited
coverage in the corporate reputation
literature. This paper explores the
management actions that are required if
employees are to support and enhance an
organisation's corporate reputation. The
study illustrates the pivotal role of staff in the
corporate reputation management process
and presents ways through which
organisations can encourage commitment,
enthusiasm and consistent staff behaviour in
delivering the brand values. The findings are
based on a research programme undertaken
Management Decision
39/2 [2001] 99104

# MCB University Press

[ISSN 0025-1747]

The current issue and full text archive of this journal is available at
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with leading corporate reputation and

corporate identity consultants within the UK.

The role of employees in corporate

reputation management
Kennedy (1977) was the first to carry out an
empirical study in which employees were
proven to have a significant influence on the
ways external stakeholders perceive an
organisation. In her work, she argues that
images are formed on the basis of the total
experience with the company and hence
employees have a crucial role in the
corporate image formation process. Taking
into consideration the fact that staff's
perception of the company may affect
external groups' perception of the
organisation, Kennedy (1977) emphasised the
necessity for company policy to be based on
the reality of the organisation for effective
corporate image formation.
Later on, Dowling's (1986, 1993) models also
acknowledge the importance of employees in
developing the corporate image into a
corporate asset. He argued that organisations
need to project consistent images to their
internal and external stakeholders, taking
into consideration the communication role
that employees have in transmitting the
image of their company. His models suggest
that employees' images of the organisation
are influenced by the organisation's vision,
its culture and formal policies, as well as by
its internal and marketing media
communication activities. External groups'
images of the organisation also influence
employees' images through the feedback they
receive during the service encounter or any
other communication with customers. On the
other hand, external groups' images of the
organisation are influenced both by the
images that employees project and by
external interpersonal communication,
previous product and media communication
and support by members of the distribution
channel. Dowling's (1986, 1993) models

[ 99 ]

Manto Gotsi and Alan Wilson

Corporate reputation
management: ``living the
brand''

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Management Decision
39/2 [2001] 99104

[ 100 ]

capture the dynamism of these relationships

through the introduction of feedback
mechanisms. Later on, Balmer (1996)
summarised these relationships between an
organisation's internal and external publics,
by suggesting that the corporate personality
is projected through the corporate identity
mix, i.e. the organisation's behaviour,
communication and symbolism, to influence
the formation of the corporate images that
the organisation has with its publics.
Although the aforementioned authors have
been mainly focusing on the concept of
corporate image and its management,
increasingly authors consider the concepts of
corporate image and corporate reputation as
inter-related and emphasise the importance
of the internal aspects of corporate
reputation management. Corporate
reputation is considered as ``a snapshot that
reconciles the multiple images of a company
held by all its constituencies'' (Fombrun,
1996, p. 72) and employees have a key role to
play in communicating images to external
stakeholders, as part of the behavioural
element of the corporate identity mix
(Birkigt and Stadler, 1995).
Stuart (1999a) argues that employees' view
of corporate identity is an important part of
corporate reputation management, since the
more employees identify with their
organisation, the more likely they are to
show a supportive attitude towards it (Mael
and Ashforth, 1992) and the more likely they
are to accept the organisation's core values
and align their behaviour with
organisational objectives (Littlejohn, 1989).
Organisations therefore need to ensure that
their employees have a positive image of
their company for them to strongly identify
with it (Dutton et al., 1994). Moreover, it has
been suggested that, in order to encourage
stronger commitment to the organisation and
its core values, employees need to internalise
and adhere to the organisation's values and
norms in their attitudes and behaviour (Mael
and Ashforth, 1992; Stuart, 1999b; De
Chernatony, 1999). At the same time
organisations need to ensure that their
actions reflect ``what is distinctive, central
and enduring about the organisation's
identity'' (Dutton et al., 1994, p. 259) to
strengthen employees' identification. Senior
management are therefore increasingly faced
with the challenge to clearly define and
communicate the brand values internally, to
encourage employee identification with the
corporate identity and enhance commitment,
enthusiasm and consistent staff behaviour in
delivering the core values and organisational
objectives (De Chernatony, 1999).

Nevertheless, the literature review

conducted for the purposes of this paper
indicated that there is a lack of empirical
research testing and exploring these internal
aspects of the aforementioned corporate
reputation models in organisational settings.
In particular, although studies recognise the
importance of attuning the projected images
to the philosophy, culture and values of the
organisation, empirical research is required
to further explore the internal aspects of
corporate reputation management. In
practice, how important are staff perceived to
be in the corporate reputation management
process? In what ways should staff be
included in the corporate reputation
management process? How can organisations
encourage commitment, enthusiasm and
consistent staff behaviour in delivering the
brand values? These questions triggered the
following exploratory study.

Research methodology
The main objectives of this study were to
explore the perceived importance of staff in
corporate reputation management and
investigate how organisations can encourage
their staff's behaviour to reflect and deliver
the brand values through their internal
communication and human resource
management activities. A qualitative
approach was adopted involving semistructured in-depth interviews with
consultants who are dealing every day with
corporate reputation management issues.
The research was undertaken with directors
of three of the top five UK-based PR agencies,
three leading corporate identity
consultancies and an internal
communication consultancy. The interviews
took place at the consultancies' offices and at
the beginning of each interview consultants
were informed about the background and
objectives of this research. The interviews
lasted on average one hour and were taperecorded and transcribed. The research
findings are presented in the following
section.

Research findings
The research findings of this study are
presented in two parts. The first part
explores consultants' opinions regarding the
importance of staff in corporate reputation
management. The second part presents
consultants' views in terms of how
organisations can encourage and manage
their staff's behaviour to reflect and deliver
the brand values.

Manto Gotsi and Alan Wilson

Corporate reputation
management: ``living the
brand''

Downloaded by SELCUK UNIVERSITY At 18:01 05 February 2015 (PT)

Management Decision
39/2 [2001] 99104

The importance of staff in corporate

reputation management

Consistent with the academic literature, all

interviewees indicated that an organisation's
identity and specifically its employees are a
very important audience in corporate
reputation management. The respondents
emphasised that staff can assist in the
differentiation of an organisation from its
rivals, since ``the public increasingly wants
to know about the companies that stand
behind the brands and products presented to
them'' (Consultant D). They argued that
people and their talent are increasingly being
recognised by organisations as their most
important assets towards building a
favourable corporate reputation. This is the
case, even although the internal management
of corporate reputation is still quite a new
area and ``the financial spend on the internal
aspects of corporate reputation is still small''
(Consultant C). Consequently, as two
consultants suggested, reputation
management within organisations is
increasingly becoming much more identity
focused rather than solely dealing with
graphics and image creation for the external
publics. ``It's about being who you as a
company are and what you stand for''
(Consultant B) and much more about ``deep
thinking about the nature of the
organisation, what it represents and what's
important to it, what it believes is important
in terms of its role in the community and how
it projects this in terms of its core values''
(Consultant C).
So, in what ways can staff actually affect
the reputation of their organisation? All
interviewees suggested that staff and their
behaviour represent the reality of the
organisation to the customers and therefore,
if their behaviour does not live up to the
expectations created through the
organisation's external communication
campaigns, the organisation's overall
reputation will be damaged. Consultants
argued that visionary organisations realise
that front line personnel are the company.
``Because they know that when you walk into
a store it doesn't matter about the big
corporation, what matters is that moment of
transaction, it's just you and that 19-year old
person, and so that person has to deliver the
reputation. And if they don't, millions of
pounds on advertising and products are lost''
(Consultant A). Consultants suggest that
staff's behaviour projects images that
characterise the organisation in the eyes of
its external stakeholders. Hence it is very
important that their behaviour is consistent
with the values that the organisation stands
for, in line with the reputation that the

organisation wants to achieve. In addition, it

was stressed that employees are part of a
social environment where friends will ask
them about the company they work for. If
staff express negative views regarding their
organisation or if what they say does not
reflect the image the organisation is trying to
project through its advertising, ``friends will
believe the employees more than the
publicity'' (Consultant D).
As reputations are often made and broken
by people's actions, ``aligning brand actions
with brand promises is a critical test for
managers'' (Consultant B). This notion of
alignment between employee behaviour and
the values that the brand stands for was
evident in all consultants' responses.
Consultants suggested that organisations
need to ensure that there is no gap between
what the organisation is saying in the outside
world and what people believe inside the
business. As three consultants noted,
employees are ``brand ambassadors'' and only
if they ``live the brand'' will the reputation
management efforts succeed. Organisations
have to encourage staff to ``buy in'' to the
company's vision and values, they have to
make sure that everyone within the
organisation clearly understands what the
common set of values is, for staff to be able to
reflect them through their own behaviour.
Staff have to understand the brand, if they
are to ``live the brand'' and its values, and
ensure that all the manifestations of the
brand's identity are in line with those core
values. For this to happen, a consultant noted
that ``reputation has to be based on reality in
order to be credible'' (Consultant B).

``Living the brand'' how can organisations

encourage their staff's behaviour to reflect
and deliver the brand values?

A consultant indicated that aligning staff

behaviour with the brand's values and
ensuring that employees within the
organisation ``live the brand'' are a very
difficult task, much more difficult than
designing the visual identity of the
organisation. As he noted, ``it's much harder
to get people's behaviour and culture aligned
with a brand, because people are much more
unpredictable than graphics. People talk,
walk, think, do things; graphics just stay
there'' (Consultant E). In order to ensure that
the organisation is internally projecting
values that are consistent with the desired
external image, all consultants emphasised
that organisations need to align their
internal communication activities and
human resource management practices with
these brand values.

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Manto Gotsi and Alan Wilson

Corporate reputation
management: ``living the
brand''

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Management Decision
39/2 [2001] 99104

[ 102 ]

Aligning internal communication with

brand values

All interviewees stressed the importance of

effectively communicating internally the
brand values in building and sustaining a
favourable corporate reputation. Consultants
argue that, since organisations are
increasingly recognising their staff as an
important audience in corporate reputation
management, they should include their staff
in their corporate communication activities
to ensure that a consistent message is getting
across throughout the whole range of
stakeholders. As the consultants noted, ``you
have to treat your staff like any other
audience'' (Consultant A) and ``when you are
communicating always remember that there
is that other audience'' (Consultant B). So
what should organisations aim to
communicate internally to their staff?
Consultants suggested that they should aim
to encourage people to believe that they can
live up to the projected brand values, by
talking and listening to staff, recognising
their need to believe in the company's values
and vision. They argued that internal
communication must aim to broaden the
awareness and understanding of the brand's
values and the types of behaviour that are
intended to support them.
However, the majority of interviewees
proposed a rather top-down approach for
aligning internal communication activities
with brand values, where senior
management inform and communicate the
values to junior staff. Two consultants did
offer different perspectives emphasising the
need for feedback mechanisms in the
internal communication process, if
employees are to accept the brand values and
reflect them in their behaviour. Consultant A
argued that appropriate feedback
mechanisms have to take place internally to
ensure that learning can happen within the
organisation. And for this to be achieved ``it
tends not to be about posters on the wall or
newsletters. It tends to be much more about
involvement, encouragement, face-to-face
communication with senior people of the
organisation `walking the talk', living the
brand values to set an example'' (Consultant
E). The consultants also talked about special
events that some or all people should go
through, consisting of special experiences
that would impact on them emotionally and
build their passion for a different way of
working within the organisation. However,
as another consultant mentioned,
organisations need to take into consideration
the fact that there might be more than one
corporate culture and hence there is a need to
communicate the brand's values and

required image to all the sub-groups within

the organisation.

Aligning human resource management

practices with brand values

Although all interviewees acknowledged the

importance of effective internal
communication in encouraging staff
awareness of the brand values, the
consultants argued that an over-reliance on a
stream of verbal and visual internal
communication is not adequate in itself for
encouraging staff to reflect the brand values
through their behaviour. One consultant
stated that ``the real proof of the pudding is
when the visions, values and sense of
purpose are translated into the detailed dayto-day changes to people's behaviour and
success criteria'' (Consultant B). The
consultants argued that in order for
employees' behaviour to reflect the brand
values it is essential for organisations to
align their human resource management
practices with the brand values. If
recruitment policies, performance appraisal,
training and remuneration structures are not
aligned with the brand values, conflicting
messages will be sent about which
behaviours are really important for the
organisation. One consultant therefore
emphasised that there is definitely a need for
the human resource management
department to be involved in the corporate
reputation management process, because
they can do things that improve how staff
behave, how they feel, which in turn will lead
to a better reputation for the business.
Starting with recruitment and selection,
three consultants noted that these processes
play a major role in the reputation
management process. They mentioned that
organisations need to ensure that they are
getting the right people whose personality
and skills fit their brands' values. As one
consultant suggested, ``there is a problem
when an organisation has a certain type of
culture and selects a group of people who
aren't ready to live in that type of
environment'' (Consultant A). He added that
it is a very expensive problem when
organisations select people just on their
functional skills and not on their cultural fit
with the organisation. Consultants therefore
propose that companies should be very clear
in their recruitment advertising about the
image they are projecting to their
prospective employees and very careful in
selecting people to fit the values their
organisations stand for. All the messages
about the nature and style of the
organisation, the core values that
characterise the company, the way things
work within the organisation and the culture

Manto Gotsi and Alan Wilson

Corporate reputation
management: ``living the
brand''

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Management Decision
39/2 [2001] 99104

that prevails are factors that consultants

suggest are becoming increasingly important
in the recruitment and selection process.
Moreover, all consultants emphasised the
importance of aligning training and
appraisal schemes with brand values, by
employing on-brand targets that encourage
on-brand behaviour. Objectives, appraisals
and working schedules all need to be
adopted to encourage behaviours that fit the
image of the company. However, the
consultants argued that, when aligning
human resource management practices
with brand values, organisations mainly
need to concentrate on how people are
rewarded and how their performance is
managed, what motivates them to project
on-brand behaviours. In particular, the
interviewees suggested that the reward
process has to be looked at in terms of the
performance management system and
organisations should try to shift away from
``hard financial measures that are all about
an individual's performance, to measures
which are more about team-based, crossorganisational performance and to
measures which are more about softer,
human characteristics that reflect the
nature of the behaviour that the brand
values are demanding as opposed to just
short-term financial requirements''
(Consultant C). It is important that staff are
rewarded for on-brand behaviour, to
encourage employees to ``live the brand''
and identify with the core values of their
organisation. Two consultants also noted
that organisations should aim to develop
regular monitoring systems to identify
employees' reactions to the brand values
and explore the extent to which employees
believe that the human resource
management practices are aligned with the
brand's values and hence encourage onbrand behaviour.

Conclusions and implications for

academics and practitioners
Although conceptual frameworks offered in
the corporate reputation literature
emphasise the importance of the corporate
identity and its manifestations in building
and sustaining a favourable corporate
reputation, there is a lack of empirical
research exploring the internal elements of
corporate reputation management. In order
to aid in the understanding of this process,
this paper has explored corporate reputation
management consultants' perspectives
regarding the internal aspects of corporate

reputation management. Findings revealed

that:
.
the public increasingly wants to know
about the companies that stand behind the
brands;
.
staff's behaviour projects images that
characterise the organisation in the eyes
of external stakeholders;
.
aligning brand actions with brand
promises is a critical test for managers;
.
staff have to understand the brand, if they
are to ``live the brand'' and its values;
.
feedback should be encouraged in the
internal communication process, if
employees are to accept the brand values
and reflect them in their behaviour;
.
vision, values and sense of purpose also
need to be translated into detailed day-today changes toward people's behaviour
and success criteria;
.
companies should be very clear in their
recruitment advertising about the image
they are projecting to their prospective
employees and very careful in selecting
people that fit the values for which their
organisations stand;
.
training and appraisal schemes need to be
aligned with brand values, by employing
on-brand targets that encourage on-brand
behaviour.
These findings have a number of
implications for both academics and
practitioners. At the theoretical level, the
study suggests that aligning internal
practices with brand values is an important
component of corporate reputation
management. Further empirical research is
therefore required to identify whether
organisations fully take this into account
when managing their corporate reputation.
Specifically research is needed to assess how
organisations actually manage to
communicate their brand values internally
and align their human resource management
practices with ``on-brand'' targets. Further
research could also explore whether
organisations recognise that a more holistic
approach rather than a top-down internal
communication process is required, that
encourages ``on-brand'' behaviour through all
the human resource management activities
that they employ. For practitioners, the
findings highlight the importance of staff and
their actions in influencing their
organisation's corporate reputation, as well
as the need to involve the human resource
management department in planning and
executing corporate reputation management
activities.

[ 103 ]

Manto Gotsi and Alan Wilson

Corporate reputation
management: ``living the
brand''

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Management Decision
39/2 [2001] 99104

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Application questions
1 How far should employees be involved in
defining the reputation management
strategy and processes?

[ 104 ]

2 How could especially disaffected

employees be brought back on side?

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