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Corporate Reputations, Branding and People Management... Butterworth-Heinemann is an imprint of ElsevierLinacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Suite 400, Burl

Corporate Reputations,

Branding and People Management

To Sue and Christine for their help and encouragement throughout this project

– Graeme

To my husband, Christopher, and our children, Alexander and James

– Susan

Corporate Reputations,

Branding and People Management:

A Strategic Approach to HR

Graeme Martin

and Susan Hetrick

A MSTERDAM • B OSTON • H EIDELBERG • L ONDON • N EW Y ORK • O XFORD

P ARIS • S AN D IEGO • S AN FRANCISCO • S INGAPORE • S YDNEY • T OKYO

Butterworth-Heinemann is an imprint of Elsevier

Butterworth-Heinemann is an imprint of Elsevier

Linacre House, Jordan Hill, Oxford OX2 8DP, UK

30 Corporate Drive, Suite 400, Burlington, MA 01803, USA

First edition 2006

Copyright © 2006, Graeme Martin and Susan Hetrick

Published by Elsevier Ltd All rights reserved.

The right of Graeme Martin and Susan Hetrick to be identified as the authors of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988

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Library of Congress Cataloguing in Publication Data Control Number:

2006925279

ISBN–13: 978-0-7506-6950-4

ISBN–10: 0-7506-6950-0

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1 The importance of the corporate agenda and

3 Organizational identity, action and image:

4 The quality of individual employment

relationships and individual employee behaviour 115

5 Four lenses on HR strategy and the employment

6 New developments in HR strategy and the

7 Corporate reputation and branding in global companies: the challenges for people management and HR 227

8 Corporate communications and the

9 Corporate strategy, corporate leadership,

10 The corporate agenda and the HR function:

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In the fast-changing, increasingly global and competitive world

of business, the ability of organizations to create and sustain strong corporate brands and reputations is one of the only ways to stay ahead In most organizations, the main responsi-bility for reputation management and corporate branding rests with marketing, communications and public relations departments Yet, as most of us working in the field know only too well, it is people who create reputations for excellence and memorable brands; it is also the actions of people that can destroy these vitally important intangible assets Moreover, attracting, retaining and engaging talented people in indus-tries such as my own means we are increasingly reliant on high-quality reputations and brands This is one of the reasons why

we, as a leading global financial services company, continue to invest so much time, money and effort into building our cor-porate reputation, and in sustaining our position as an

‘employer of choice’ We know that engaged employees equals business success and profitability

This book is essential reading for CEOs, marketing and HR practitioners who are serious about making a valued contribu-tion to the success of their organizacontribu-tion This book outlines the future scope and contribution of human resources to business strategy It is one of the first serious studies of the corporate landscape and is very well researched and practical I hope you get as much out of this book as I have

Neil Roden Group HR Director, RBS

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This book is the first in a series designed to help senior practi-tioners in human resource management (HRM) develop their knowledge and skills in the strategic issues facing them and their organizations Like others, we believe the term ‘strategic’

is often over-hyped; we limit its use in this context to mean

‘important’ And, in our view, there are few more important considerations for senior managers than creating and sustain-ing excellent reputations and brands for their organizations For example, survey evidence produced by a major interna-tional consultancy firm, Hill & Knowlton, in 2006 showed that reputations and brands were among the top items on the agenda of CEOs, including those in China Why this should be the case has been addressed by John Kay, a leading British economist, who opined:

The distinction between the role of shareholders and employees was clear when shareholders had bought the plant and employees worked in it But the principal assets

of the modern company are knowledge, brands and

reputation, which are in the heads and hands of employees

( J Kay, 2004, The Truth About Markets: Why Some Nations are

Rich but Most Remain Poor London: Penguin, p 58)

So organizations need to capitalize on reputations and brands

to be different from others to create and sustain sustainable

competitive advantage; at the same time, they also need to be

seen as legitimate, especially in an environment in which they

are increasingly distrusted by large sections of the community Thus, in addition to corporate branding, many businesses are