Importance of Corporate Branding in Investor Relations

Strategic corporate branding is an important element in investor relations / Investor Communications.

Beyond the visual communication of the brand identity, corporate brand is an expression of the company’s core purpose along with strategically developed business model, vision, mission values and ESG approach. People intrinsically perceive a corporate brand based on the value proposition it constantly communicates and through its visual identity consisting of shapes, colors. The outcome is a long-lasting brand association among stakeholders.

A well-defined corporate brand exist among most of the large companies. Among few of the mid-sized entities this practice exists at varying degrees. When it comes to small entities most of them lack a clearly defined corporate brand strategy. Indistinct and inconsistent corporate branding can be detrimental when it comes to stakeholder relations.

Corporate Branding in IR

When communicating the investor value proposition, corporate brand is an important aspect. Beyond operational achievements and financial performance, corporate brand and its inherent philosophy are the key ingredients for building the trust factor among investors, associates, media, analysts, and employees. Even when the financial performance is impacted many investors will continue to stay invested based on how they perceive the inherent value proposition of the company from the corporate brand communications.

IROs or CFOs are responsible for communicating the company’s financials and strategies to the investor community. When it comes to strengthening investor communication with various elements of the corporate brand the challenge is that the corporate branding is not under the direct purview of IROs or CFOs.

However, IROs must take up the  inconsistencies if any in the corporate brand modeling with the management and resolve it. Corporate communication agencies, branding agencies and majority of the annual report agencies have expertise in corporate brand development which can be explored.

Investor Relation Brand

Till such time, an alternate option is to create an investor relation brand consisting of the company’s operational business model and its value creation model with the company’s core purpose, vision, mission and values forming the core. Value creation model of the company can be further expanded using reporting methodologies such as six capitals promulgated by the Value Reporting Foundation.  In many instances such IR brand models have enabled strengthening corporate brands.