What Is the Importance of Corporate Identity?

Corporate identity is important for cohesion within a corporation as well as public perception and success on the open market. Typically, corporations establish an identity through the use of branding measures like logos, colors, and trademarks. They reinforce it with policies and business practices that support the identity and create room for growth. Corporations with unclear or poorly shaped identities may have trouble distinguishing themselves in the market.

Organizationally, corporate identity is important for employees who work within a company. When they act as representatives, they need to know what kind of image the company wishes to project, and how it wants to do business. Employees at every level represent the company formally and informally, and can play a role in the shaping of public perceptions about the organization. A company in the environmental sector, for example, may encourage staff to engage in environmentally friendly practices, and to stress the company's commitment to sustainability in meetings and other settings.

Corporate identity also plays a role in the reception of a company on the market. Consumers seek out brands they know and favor. A company with a strong identity can attract and retain more customers. It can also build up associations with that identity to make members of the public view it in a positive way. Organizations might, for example, sponsor events to have their logo thrust into the public eye on documentation like programs, fliers, posters, and banners.

Periodic shifts in corporate identity may occur as a company makes changes to its organizational culture and business practices. Sometimes, these are signaled with design changes. A company might rename itself, change a logo, or adopt different colors. Companies work closely with consultants on these activities to ensure the best possible results with a rebranding campaign. The company does not want to lose customers, or take bad associations to the new brand after getting rid of an old brand.

New companies or older companies with unclear goals may meet with identity consultants to discuss ways to improve their image or develop a more cohesive image. Consultants can recommend a variety of measures. These may include advertising campaigns, the development of better internal guidelines for staff members, and more participation in community events to make people aware of the company and its services. Ideally, every communication from a company, from a business card handed to a seatmate on an airplane to billboards in major urban areas, should promote a consistent and clear corporate identity.