CMA Final · Cost and Management Audit · Evaluation of Corporate Image
A company has strong brand recall and a high advertising spend, yet a management audit finds that its employees, suppliers and regulators hold a poor view of its ethics, and the favourable customer view rests only on advertising. What is the most appropriate audit conclusion about its corporate image?
The image is fragile because the image projected through advertising differs from the image actually held by employees, suppliers and regulators. Corporate image evaluation covers all key stakeholder groups and any gap between projection and perception, so high brand recall alone does not show a sound image.
- AThe image is sound because brand recall is high
- BThe image is fragile, as projected image and the actual image held by multiple stakeholders divergeCorrect
- CImage cannot be evaluated unless profit rises
- DThe gap is irrelevant because only customers matter
Explanation
Image evaluation considers the perception of all key publics and the gap between the image the firm projects and the image actually held. Advertising-driven favourability with poor views among employees, suppliers and regulators indicates a weak, easily damaged image. Relying on recall alone ignores these gaps, and the claim that only customers matter contradicts the multi-stakeholder approach.
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