Companies strive to present a uniform, transparent image of themselves and their brand, both externally and in its corporate structures. When employees and subcontractors see this company image, what its values and goals are, it makes working for a company easier. In addition, a consistent self-image strengthens the loyalty of the workforce, who can recognize their role in a well-networked structure. Employees who feel valued and understand relationships within the company tend to cooperate better with other departments and have an improved overall performance.
Externally, the CI determines what directions marketing campaigns should take, as well as what the targets should be and how to conduct market research. The self-image of a company has a significant impact on the measures it takes to present itself to customers and the public. On the other hand, thoughtless, contradictory measures can convey a flawed corporate identity.
Of course, corporate identity is subject to change. External circumstances such as social change and internal factors, like new product developments or restructuring can result in aspects of corporate identity needing to be rethought. However, it is advisable to be careful when making significant changes, as sudden differences in behavior may unsettle your customer base. If your brand appeals to your customers’ identity, a fundamental change may feel like a betrayal to them. However, altering your CI is something inevitable to accompany necessary changes. This is clearly visible in a field such as politics, where parties change their image often.
The other side of corporate identity is corporate image. This refers to the external perception of the company, which is both influences and is influenced by the corporate identity. If the company has a strong identity, it stands out from the competition and enjoys a certain image that establishes its reputation in the public domain. A corporate identity should be visible in all aspects of the company over time. Established companies with a good reputation do not do themselves any favors when they throw an existing corporate identity overboard. A sudden change in direction is likely to cause customers to turn on the company and even make negative public comments about it.