The brand factor; art integrated in the corporate brand

3.1.3.1 Art collections integrated in the corporate brand

In many corporations today the art collection is closely related to branding, and some corporations include the art in their brand, as a part of their public relations program. Thus art may be ascribed a similar function as the logo and visual profile of which the main task is to communicate desired messages to the external world; to customers, clients, business partners, competitors and the public. The tradition of using art as a part of the public relations program has developed during the twentieth century parallel to the growth of corporate art collections. According to Crane, leading business executives in USA in the seventies claimed that their corporations supported the arts partly as a social responsibility activity, and partly due to self interest; the latter both in respect of improving the work environment for their employees and as a part of their public relations program. (Crane 1987) She is questioning why corporations select art as

“a vehicle for public relations”, and mentions one hypothesis; that the arts have been used as a medium of communication with the middle class who consider the arts as expressions of the human condition, representing social values and beliefs.

As the former president of CBS has expressed, quoted in Crane; the essential values of the public;

…are most clearly evident, and in some instances evident only, in the arts – in music, the drama, and the dance, in the architecture and design and in the literature of the people and of the times. (Crane 1987)¹⁹⁶

Art collections may also give status to existing and emerging corporations in their efforts to create, improve or change their images. A common objective of high quality art collections is that it shall communicate that the corporation represents the same high quality. (Hagen 1999) As Martorella reports from an American bank:

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The primary objective for our program is to provide high-quality art consistent with our desire to project the bank as a leading, progressive and successful institution. (Martorella 1990)¹⁹⁷

Another example mentioned in chapter 2.1.3 is a Norwegian finance corporation included in my Master Thesis, which mainly collect and display naturalistic and National Romantic Norwegian art from the late nineteenth century, to express that they are financially stable and reliable, as National Romantic art in Norway is particularly expensive. A third example is described by the former curator of the art collection of Microsoft Corporation, Michael Klein. According to Klein the art collection of Microsoft should reflect the profile of the company, which is that Microsoft is a young corporation that employs a youthful workforce. Thus the collection consists mainly of contemporary art made by living artists.¹⁹⁸

Showing high quality also affects where the art is displayed. Serving as a reference for the customers and external business partners, the most important and valuable part of the art collection is often displayed in areas for business and customer contact, such as in “…executive reception areas and main corridors trafficked by high-powered clientele.” (Martorella 1990)¹⁹⁹ As mentioned by Shirley Reiff Howarth in the International Directory of Corporate Art

Collections, corporations have become more knowledgeable and selective when purchasing art. The function that is ascribed to the art collection has changed from being a promotion and selling tool to reflect internal cultural values:

The art collection is now viewed as a part of the company’s overall image...The art, rather than being used to promote and sell, is used instead to reflect the corporate culture and what is unique about that particular company.²⁰⁰

The human relation aspect of corporate art may also be used by some

corporations as a cover up for undesirable activity, for instance within industries marked by pollution and harmful emissions. According to Martorella this may be initiated by a desire to offset criticism of production and practices which can harm the environment, for instance oil and tobacco companies and production that can lead to cancer. In such cases the art collection, reflecting human values and social consciousness, may contribute to suppress critics and improve the image of the corporation. (Martorella 1990) As described by Crane, also the

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German artist Hans Haacke has argued that corporations have been seeking to influence liberals of the middle class by supporting art that was considered as

“high culture”, and thus they hoped to avoid liberal criticism. (Crane 1987)

3.1.3.2 Art as economic investment

The common conception of that corporations collect art to invest money may be a myth more than reality today, if art investment is considered as a way of

“storing money”, although the myth may be valid among private collectors and small businesses. In large global corporations however, often with 2-300,000 employees, the art collection can hardly be considered as the money box that can save them from economic disease in times of crisis, as in the global economic recession in 2009. According to Martorella, most corporations do not willingly discuss art as a money issue either. On the contrary, many are sceptical of using money on art, and purchasing art has to be justified to their shareholders and employees who would rather have preferred a raise in their salary. (Martorella 1990) By making art perceived as beneficial to employees, and showing good will by helping local artists, this contributes to justify corporate art investments.

Although the value of art may rise, art investments are potentially unpredictable, and many corporations express that they do not consider art as an investment. As claimed by Martorella it is rather the art dealers that focus on the investment potential of purchasing art. (Martorella 1990)

Although the investment factor of purchasing art may be low, the corporations have become smarter in avoiding art that will not last. The increased use of art curators and art advisors have improved their ability to choose important

expensive art that also represent a potential investment; not in the meaning of the potential for earning money, but to make sure that it is not a wasted use of money. One aspect of considering art as a useful economic investment is that high quality art displayed in lobbies and atriums contributes to improve the status of a corporate building, which means that corporations can achieve a higher rent for letting out available offices in buildings with high quality art. Sometimes it also improves the image of an undesirable neighborhood. (Martorella 1990) Through a selective art acquisition, high quality corporate art similar to high quality architecture and art museums such as the New Museum on Bowery street at the Lower East side of Manhattan, can also contribute to the gentrification of former undesirable areas. According to Crane, powerful businesses and real estate developers in New York, together with the tourist industry have benefited from the expansion of cultural activities. The arts infrastructure, consisting of galleries and related services has led to a gentrification of several areas of

Manhattan, for instance the Soho district where property values have increased after the creation of an artistic community in the area. (Crane 1987)

3.1.4 Corporate social responsibility; philanthropy and human values