Page 91 - Corporate Communication

Cornelissen-03.qxd 10/9/2004 9:04 AM Page 80

80 Mapping the Field

between identity and reputation and the pitfalls that this brings). Transparency,
according to Fombrun and Rindova is ‘a state in which the internal identity of the
firm reflects positively the expectations of key stakeholders and the beliefs of these
42
stakeholders about the firm reflect accurately the internally held identity’. Box 3.4
provides a case study of Starbucks, a company that is known for its efforts in achiev-
ing distinctiveness and transparency by aligning its identity and reputation.
Such transparency will be achieved when an organization is serious about its corpo-
rate identity; that is, when it frames values that are not only expected (as a socially
responsible firm) but also authentic and distinctive,and has put organizational structures,
processes and incentives in place to ensure that a consistent corporate identity is carried
over to important stakeholder groups.As I have indicated above,there are certain values
that an organization in any case needs to endorse (or at least needs to be seen to
endorse) as a fully responsible and professional firm.These values include general attri-
butes such as proficient management and leadership, social responsibility and commu-
nity involvement, market performance, quality of products and services, workforce and
labour conditions,and so on.Such attributes also provide the input for the general cate-
gories that companies are normally ranked on in such reputation indices as the Fortune
‘Most Admired Corporations’, the Reputation Quotient, and the Financial Times (FT)
‘Most Respected Companies’.Table 3.4 provides a summary of these three publicly syn-
dicated reputation measures. Each of these measures enjoys popularity with managers
but all have obvious limitations in that they fail to account for the views of multiple
stakeholder groups, and appear to be primarily tapping a firm’s financial performance
and assets.The Fortune measure,for instance,is known for its financial bias and the high
correlation between all of the measure’s nine (previously eight) attributes (> 0.60).
This means that these nine attributes produce when factor analysed one factor, so that
a company tends to rate high, average or low on all nine attributes. 43

Box 3.4 Starbucks Coffee Company: an exercise
in aligning identity and reputation

Starbucks, generally considered to be the most famous speciality coffee shop chain
in the world, today has over 6,000 stores in more than 30 countries, with three more
stores opening every day (Fortune, 2003). Many analysts have credited Starbucks
with having turned coffee from a commodity into an experience to savour.
Starbucks’ objective has always been to emerge as one of the most recognized and
respected brands in the world. Since it made its IPO (initial public offering) in 1992,
Starbucks had been growing at a rate of 20 per cent per annum and generating profits
at a rate of 30 per cent per annum. Starbucks has always felt that the key to its
growth and its business success lies in a rounded corporate identity, a better under-
standing of customers and a store experience that would generate a pull effect through
word-of-mouth. Howard Schultz, Starbucks’ founder and chairman, had early on in
the company’s history envisioned a retail experience that revolved around high quality
coffee, personalized, knowledgeable services and sociability. So, Starbucks put in place
various measures to make this experience appealing to millions of people and to create
a unique identity for Starbucks’ products and stores.