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THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
THE IPSOS
                                 REPUTATION
                                    COUNCIL
                                         FINDINGS FROM THE FOURTEENTH SITTING
                                       Exploring the latest thinking and practice in corporate
                                                   reputation management across the world

                reputation.ipsos.com
LEADERS IN REPUTATION    RESEARCH
                 @ipsosreputation
THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
WELCOME TO THE LATEST
                                                                                                                                                                                                          03

                                                                     BRIEFING FROM THE IPSOS
     ABOUT THE IPSOS
     REPUTATION COUNCIL                                              REPUTATION COUNCIL
     ESTABLISHED IN 2009, THE IPSOS                                  OUR FOURTEENTH SITTING INVOLVES 150 SENIOR COMMUNICATORS FROM 19 COUNTRIES
     REPUTATION COUNCIL BRINGS TOGETHER                              – MAKING THIS A TRULY INTERNATIONAL VIEW.
     SENIOR COMMUNICATORS FROM SOME                                  In a world of constant disruption           the sustainability spotlight the most     We also wanted to understand
     OF THE MOST RESPECTED CORPORATIONS                              there has never been a greater need         – as well as examples of companies        the range of stakeholders Council
     IN THE WORLD.                                                   for companies to actively engage            that stood out as being at the cutting    members engaged with – if they
                                                                     with their stakeholders and wider           edge of best practice.                    prioritised distinctive groups, created
     The Reputation Council’s mission is to increase understanding   civil society. For many, issues such                                                  tailored messaging and whether they
     of the issues and challenges facing communicators in the        as climate change, sustainability           Many Council members asked us to          were specifically targeting social
     corporate environment, as well as capturing expert views        and social cohesion are no longer           include a section on communications       media influencers: and if so, what
     on key trends, issues and events in the wider world. Each       climbing the corporate agenda               planning in this year’s report and we     techniques they used.
     sitting of the Reputation Council provides a definitive         – they have reached its summit.             were happy to oblige. In this edition
     guide to the latest thinking and practice in the corporate                                                  we look at the major elements of the      Finally, we decided to retain our quick-fire
     communications world. The fourteenth sitting of the             Indeed, it seems that even ‘hard-headed’    planning process, including timing,       section from last year’s report. We asked
     Reputation Council involved 150 senior communicators            stakeholders such as investors no           key inputs, the degree of distinction     Council members questions on a variety
     based in 19 different countries.                                longer assess the reputation and            between internal and external             of subjects, such as the role businesses
                                                                     investment appeal of a company              communications and major challenges       play, relative to the government, in fixing
     With thanks to our global Reputation Council members            solely through key financial ratios. They   the communicator faces – now and in       society’s problems and whether fake
     for contributing to our latest edition – without your           want to see evidence of a company’s         the future.                               news and disinformation pose a material
     contribution, this report would not have been possible.         broader role in society, not least                                                    threat to business.
                                                                     because it is seen as an essential part     Part of communications planning
                                                                     of any sustainable business model.          is of course setting goals, and the       My thanks to all members for
                                                                                                                 management maxim that if you              participating in our fourteenth sitting
                                                                     We therefore took this opportunity          can’t measure it you can’t manage it,     of the Reputation Council and please
                                                                     to explore the degree to which              which quickly leads us to the             do get in touch if you would like to
     150 interviews conducted with Reputation Council members        Council members felt that the               topic of data. We were not only           discuss any of the issues we’ve covered.
     between 13th September 2019 and 31st January 2020.              escalation in the importance                interested in the types of data sources
                                                                     of sustainability was becoming              Council members used, but also the        MILORAD AJDER
     All 150 interviews with corporate communicators were            more pervasive in the corporate             way in which they integrated their
     conducted face-to-face or by telephone.                         environment. We also asked them to          data sources to provide strategic         Global Service Line Leader
                                                                     highlight industries that were under        reputation insights.                      Ipsos Corporate Reputation
     The graphs may not add to 100, this is down to rounding or
     not showing don’t know responses

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING
THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
GLOBAL PERSPECTIVES
                                                                                                             WHICH OF THE         Aerospace                                Financial Services                         Pharmaceuticals                    05

                                                                                                             FOLLOWING            Agriculture                              FMCGs                                      Retail

     ON SECTOR REPUTATIONS
                                                                                                             INDUSTRIES
                                                                                                                                  Automotive                               Government                                 Technology
                                                                                                             ARE FACING
                                                                                                             THE GREATEST         Construction                             Health                                     Telecommunications

                                                                                                             REPUTATION           Energy                                   Media                                      Tobacco
                                                                                                             CHALLENGES AT        Engineering                              Mining
                                                                                                             THE MOMENT?

     %                          0                              10                  20        30             40               50                              60                                       70                                        80

     GLOBAL                                3                             13
                                                       6

     NORTH AMERICA                     2                   7                                      32
                                                               10

     LATAM                                             6                                22             33
                                                                    11

     EUROPE                                        5
                                                       6

     ASIA - PACIFIC                                5                11        16

                                                                                                                                   Base: All Reputation Council members – Global (141), North America (41), LATAM (18), Europe (62), Asia-Pacific (19)

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                   GLOBAL PERSPECTIVES ON SECTOR REPUTATIONS
THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
07

     NORTH AMERICA                                                                                                                              EUROPE
                                                   They say ‘Techlash’ issues around
                                                   monopoly status, data privacy and                   “
                                                                                                   	So, companies like (Tech companies)
                                                                                                                                                                                                 2020. The reasons are well-rehearsed:
                                                                                                                                                                                                 for energy, the “acceleration of the
                                                                                                                                                                                                                                                          number of mentions, suggesting that
                                                                                                                                                                                                                                                          reputation challenges are not confined
     		    49% TECHNOLOGY                          tax are driving the conversation about             which are starting to be hugely           		    48% FINANCIAL SERVICES                     global dismay around climate”,                           to just one or two industries in today’s
                                                   this industry.                                     criticized in the USA, that was not the                                                    especially among the young; for                          turbulent world.
     		    32% ENERGY                                                                                 case before; about issues of freedom      		    45% ENERGY                                 finance, technological disruption,

     		    32% FINANCIAL SERVICES
                                                   The financial services sector (a “perennial
                                                   player” in this ranking, says one Council
                                                                                                      of speech, monopoly position, tax
                                                                                                      evasion... There’s a growing visibility
                                                                                                                                                In our previous report, Council
                                                                                                                                                                                                 demands for more transparent
                                                                                                                                                                                                 products and long-standing issues
                                                                                                                                                                                                                                                          	“
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                            Obviously the entire banking
                                                                                                      of all this.                                                                                                                                            sector: each time the trigger is a
                                                   member) continues to face a very                                                             members in Europe named finance                  about trust (“the public has a long
                                                                                                                                                                                                                                                              big scandal that crystallizes things,
     Unsurprisingly, in light of the current       bright spotlight; so too does the energy                                                     and energy as the sectors facing the             memory”). Notably, in Europe a variety
     media and public policy agenda,               industry. Council members expect the            	“
                                                                                                     (Energy industry) Accused of               biggest reputational challenges; there           of other sectors – pharma, FMCG,
                                                                                                                                                                                                                                                              so does its opacity and the fact
                                                                                                                                                                                                                                                              that it’s a sector that generates a
     Council members in North America              pressure on both these sectors to deliver           moving too slow on key issues            are no signs of that trend abating in            tech and automotive – also receive a                         lot of money.
     see the tech industry as facing the           credible Environmental, Social, and                 like climate change.
     greatest reputational challenges – the        Governance (ESG) responses to be even
     view of 49%, up from 44% last time.           more intense in the near future.

     LATAM                                                                                                                                      ASIA - PACIFIC
                                                   environmental disasters account for
                                                   this climb, along with intensifying
                                                                                                   trust issues (e.g. money laundering) and
                                                                                                   residual stigma from the financial crisis.
                                                                                                                                                                                                 scrutiny, complexity and the impact of
                                                                                                                                                                                                 fintech make this the sector to watch,
                                                                                                                                                                                                                                                          	“
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                            The (finance) sector will remain
     		     61% MINING                             debates about the true impact of                                                             		    79% FINANCIAL SERVICES                     from a reputation perspective.                               highly scrutinised for a long

     		     33% MEDIA
                                                   extractives on society and the planet.          	“
                                                                                                   
                                                                                                     Mining, because of the disasters.          		    37% MEDIA                                  Some way behind is the media,
                                                                                                                                                                                                                                                              time due to its enormous reach
                                                                                                                                                                                                                                                              and complex landscape. The
                                                                                                       They questioned the practices that                                                                                                                     government will continue to stand
                                                   Media and Finance (both 33%)                                                                                                                  especially news media, although these
                                                                                                                                                                                                                                                              up for customers who use their
     		     33% FINANCIAL SERVICES                 complete the top three. Media
                                                                                                       were seen by the companies as
                                                                                                       of concern with the environment,
                                                                                                                                                As in the previous two waves, the finance        elicit fewer mentions than last year.
                                                                                                                                                                                                                                                              services and holding corporates to
                                                   independence, against a backdrop                    safety, people suitability, the          sector is singled out by a large majority        Business model transformation remains a                      account. But this paralyses the market
     In Latin America, 3 in 5 Council              of misinformation is a concern for                  contingency plan, all this was           of Council members. This view is centred         challenge, in the face of digital platforms                  because people will be waiting for
     members cite mining as the sector             Council members, along with the role                questioned, based on positionings        on Australia, as the industry digests the        and niche media, along with continuing                       the government to intervene.
     facing the biggest reputational               of traditional media in a digital world.            we used to adopt very passively.         implications of the Royal Commission,            trust issues driven by fake news and
     challenges this year (61%, up from            Financial firms are also seen to face digital                                                but across the region issues of regulatory       politically-divisive reporting.
     34%). Some notorious human and                challenges, along with some specific

                                                                                                                                                                                             Base: All Reputation Council members – Global (141), North America (41), LATAM (18), Europe (62), Asia-Pacific (19)

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                                                                              GLOBAL PERSPECTIVES ON SECTOR REPUTATIONS
THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
CONTENTS
                                                                                                     09

     12 - 21                                                           QUICK FIRE
     SHARED VALUE:
     THE CORPORATE
     IMPERATIVE                                                        10 - 11
                                                                       BUSINESS
     24 - 33                                                           COMMUNICATIONS:
                                                                       ‘EMOTION OVER REASON?’
     KEY AUDIENCES:
     STAKEHOLDERS
     & INFLUENCERS                                                     22 - 23
                                                                       CHANGING

                                                             36 - 45
                                                   12 - 21             EXPECTATIONS:
     36 - 45                                                           ‘A BROADER ROLE
     EXPECTING THE                                                     FOR BUSINESS?’
     UNEXPECTED:
     COMMUNICATIONS                                                    34 - 35
     PLANNING IN A                                                     BOARDROOM
     DISRUPTIVE                                                        CONCERNS:
     ENVIRONMENT                                                       ‘DISRUPTION
                                                                       AHEAD?’

     46 - 51
     EMBARKING ON
     THE DATA JOURNEY:
     SMOOTH SAILING
                                                   24 - 33

                                                             46 - 51
THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                          CONTENTS
THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
QUICK FIRE                                                                                                                                                                                                                               011
                                                                                                  ARE TECHNICAL EXPERTS                                                                       IN THE POST-TRUTH
     BUSINESS                                                                                     NOW MORE EFFECTIVE
                                                                                                  CORPORATE SPOKESPEOPLE
                                                                                                                                                                                              WORLD, MUST CORPORATE
                                                                                                                                                                                              COMMUNICATORS APPEAL
     COMMUNICATIONS:                                                                              THAN CEOS?                                                                                  TO EMOTION, NOT REASON?

 ‘E MOTION OVER                                                                                  60%
                                                                                                  Disagree
                                                                                                                                      29%
                                                                                                                                       Agree
                                                                                                                                                                                              53%
                                                                                                                                                                                              Disagree
                                                                                                                                                                                                                                  35%
                                                                                                                                                                                                                                   Agree

   REASON?’
                                                   DO TOO MANY BUSINESSES
                                                   USE THE LANGUAGE
                                                   OF SOCIAL PURPOSE,
                                                                                                                      13   % Unsure                                                                            13% Unsure
                                                                                                                    Base: 134 Council members                                                                   Base: 133 Council members
                                                   WITHOUT COMMITTING
                                                   TO REAL CHANGE?                                Council members say this is situational                                                     Today, as people struggle to decide
                                                                                                  – the most effective spokesperson             DO BUSINESSES SPEND                           what, and whom, they can really
                                                   13%                                  83%       will be determined by the issue, the          TOO MUCH TIME                                 trust, Council members are adamant
                                                   Disagree                              Agree    audience and the industry context.            BROADCASTING AND NOT                          that hard facts, reason and rationality
                                                                                                  The CEO will often have a broader                                                           are more important than ever. But
                                                                                                                                                ENOUGH TIME LISTENING?
                                                                                                  command of the agenda, and perhaps                                                          these have to be brought to life with
                                                   3% Unsure                                      the charisma or gravitas required                                                           appeals to human interest and values,
                                                                      Base: 134 Council members   for more strategic communication.             21%                                 72%       if they are to connect and cut through.
                                                                                                                                                Disagree                             Agree
                                                                                                  Conversely, technical experts can                                                           As one Council member said, today’s
                                                   Four in five Council members agree             elicit greater trust as ‘people like us’;                                                   communicator has to command both
                                                   that ‘purpose-washing’ is still more
                                                   prevalent than genuine commitment
                                                                                                  a number of members feel they                      7% Unsure                                logic and magic.
                                                                                                  are underutilised.                                              Base: 134 Council members
                                                   to change. True purpose has to have                                                                                                        	
                                                                                                                                                                                               “
                                                   a cost, or is easy to fake. Increasingly,      	
                                                                                                   “                                            This prompted Council members
                                                                                                                                                                                                I think we have gone from no
                                                   businesses are being held to account             The CEO still plays a massively                                                             emotion to full emotion and now
                                                                                                                                                to reflect that communication is a
                                                   if their actions don’t match their               important role in terms of being                                                            we are coming back. They have
                                                                                                    the figurehead and secondly                 two-way process, and a tricky one               seen emotion and they have seen
                                                   rhetoric: as one member put it,
                                                                                                    culture and setting the agenda for          to do well. Resources are finite, so            reason and now they want to see
                                                   “don’t be a thought leader, be an
                                                                                                    the organisation. So good CEOs              businesses can’t listen to everything –         that together.
                                                   action leader.”
                                                                                                    will always be more effective,              and can engage with even less. Being
                                                                                                    but a technical person has a very
                                                   	
                                                    “                                               valuable supporting role to play.
                                                                                                                                                equipped to distinguish the signal
                                                     I think we might have got away                                                             from the noise is key. Overall, though,
                                                     with it in the past, if you think                                                          most Council members are optimistic
                                                     about it, but that is not going to                                                         that businesses are committed to
                                                     happen as we move forward.                                                                 listening – and getting better at it.
                                                     People are going to be very
                                                     discerning about whether they                                                              	
                                                                                                                                                 “
                                                     think we are being authentic                                                                 You are caught in your bubble,
                                                     and ultimately trustworthy and                                                               you say what you think people
                                                     whether you will be able to build                                                            want to hear, you never actually
                                                     a reputation off that.                                                                       try to understand what they want.

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                                                 QUICK FIRE
THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
SHARED VALUE:
     THE CORPORATE
                                                                                                                         	“          The need for companies to deliver genuine value, as opposed to tokenistic corporate responsibility
                                                                                                                                      policy, that’s built into the company’s core purpose is becoming increasingly pronounced.
                                                                                                                                                                                                                                                                          013

     IMPERATIVE?                                                                                                         The US Business Roundtable (BRT)
                                                                                                                         last year dropped its commitment to
                                                                                                                         “shareholder primacy” 1 in favour
                                                                                                                         of shared value. Accordingly, and
                                                                                                                                                                               Or as old news – since at least
                                                                                                                                                                               the 1960s, organisations have had
                                                                                                                                                                               Corporate Social Responsibility (CSR)
                                                                                                                                                                               policies with the broad goal of,
                                                                                                                                                                                                                           It’s this shift, say members, that poses
                                                                                                                                                                                                                           a major challenge. It raises profound
                                                                                                                                                                                                                           questions about what exactly shared
                                                                                                                                                                                                                           value looks like, and how to measure
                                                                                                                         by the “modern standard for                           “contributing to the well-being of          it? How fundamentally should or can
                                                                                                                         corporate responsibility,” 2                          the communities and society they            businesses adapt? And how quickly?
                                                                                                                         businesses must focus on creating                     affect and on which they depend.” 4         And how to communicate intrinsic
                                                                                                                         value for all stakeholders, including                                                             changes in a way that cuts through
                                                                                                                         consumers, employees, supply chains,                  But for many Council members, the           with stakeholders?
                                                                                                                         governments, civil society and the                    BRT’s announcement does signal
                                                                                                                         planet, as well as shareholders.                      something real and burgeoning.
                                                                                                                                                                               Shared value is not the same as CSR,
                                                                                                                                                                                                                           	“
                                                                                                                                                                                                                           	Companies are trying to figure
                                                                                                                                                                                                                             out the balance between
                                                                                                                         Some commentators treated the BRT’s                   it’s argued. While CSR is essentially
                                                                                                                                                                                                                             responsibility to shareholders and
                                                                                                                         statement with scepticism – Larry                     philanthropic and extrinsic, shared value
                                                                                                                                                                                                                             to society. We were doing positive
                                                                                                                         Summers, for example described it                     requires that environmental and social        things before the BRT statement,
                                                                                                                         as a “rhetorical embrace” 3 aimed at                  value become functions of a business’         but it has brought focus.
                                                                                                                         warding off real regulatory change.                   operations themselves.

                                                                                                                         	“          The debate has
                                                                                                                                      been going in that
                                                                                                                                      direction for the thick
                                                                                                                                      end of a decade, at
                                                                                                                                      least in terms of talk.
                                                                                                                                      So, the reaction is,
                                                                                                                                      “yes of course,” and
                                                                                                                                      the next question is,
                                                                                                                                      “what are you going
                                                                                                                                      to do about it?”

     As the demand for businesses to create shared social    in society. But businesses face significant challenges in
     and environmental value increases, and the climate      closing the say-do gap and meaningfully embedding
     change doomsday clock counts down, Council members      sustainability in their strategies and business models.
     are seeing corporates coming to terms with their role

                                                                                                                         * For references in this article please see page 21

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                                                SHARED VALUE: THE CORPORATE IMPERATIVE?
THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
THE INCREASING DEMAND                                                                                                                                                                                                                                            015

                                                                                                                                                                	“
     FOR MEANINGFUL ACTION
                                                                                                                                                                       ent
                                                                                                                                                              investm h
     In dropping a credo it’s held since           For some members, the driving force
                                                                                                                                                 th a t th e
     1997, the BRT is reacting to demand           behind this change is the millennial     The factor that really                                                     uc
                                                                                                                                         can see             much, m at

                                                                                                                                                                                                                                                   	“
     for environmental and social action           generation (born around 1980-2000)       “changes everything,” 8          All of us unity is really                  th
     that is radically increasing. Much of this    – which, based on some projections                                             comm             ow    in the way he
                                                                                            however, that underpins                               n                    tt
     demand is directed at business.               will make up 75% of the global                                               o re in terested ate beyond jus ut
                                                                                                                             m                    r                       b
                                                                                            the shift to shared value,                    ses ope               portant                                                                                oving
                                                                                                                                                                                                                                          ability is m true
                                                   workforce by 2025 – flexing their
                                                                                            is climate change. It is            busines ancials stay im iness and                                                          w  s u s ta in
     To complicate matters, it comes               muscles as citizens, consumers and of                                              ls. Fin               o bus                                              This is ho                        ons to
                                                                                                                                                                                                                                  mmunicati as about
                                                                                            both an existential threat     financia how people d                  our analys
                                                                                                                                                                              t
                                                                                                                                                                                             “                      –  fro m  c o
     from multiple stakeholders across             course employees.                                                                  u t
                                                                                                                           it is abo that all the tim
                                                                                                                                                            e  in           eet              Be                                           ashing w
     many issues. The UN Sustainable                                                        and, “the wickedest kind
                                                                                                                                      e e                    g o  out to m s.               Gr caus              b u sin ess. Greenw ow the finance
                                                                                                                                w e s             en    w  e              use             sp eta T e of                             ation, n
     Development Goals, for example,               	“
                                                     You have work forces, in particular
                                                                                            of problem imaginable:
                                                                                            complex, interconnected,            b rief in gs or wh investment ho
                                                                                                                                                 the                                     Re otlig hun the            communic
                                                                                                                                                                                                                              str y  th ink
                                                                                                                                                                                                                                                         ability
                                                                                                                                                                                                                                           s of sustain ival.
     cover 17 areas of sustainable                                                                                                                                                         b     h   b    a
                                                                                                                                                                                       the elli t th erg ctio           indu                         l surv
     development, from sanitation to
                                                     the millennial work forces, that       and requiring massive                                                                    a     e on at
                                                                                                                                                                                              nv        Exan ns                          as financia
                                                                                                                                                                                        ll            h       d o
     gender equality to education. Every
                                                     are legitimately concerned about
                                                                                            collective action.” 9 It                                                                 to busi iron as p tinc the f
                                                     sustainability and corporate                                                                                                       t     n       m l
                                                                                                                                                                                    an ake ess en ced ion a  t

                                                                                                                                                                                                                              “
     one of these to a greater or lesser             responsibility in terms of whether     raises the stakes for                                                                 for d ac resp es h t, I th on
     degree presents a challenge for                 they want to work for a company.       what counts as value,                                                                    su cou on ave ink
                                                                                                                                                                                       sta nt sib g
     businesses. Each is a potential lens of                                                                                                                                               ina abi ilit ot
                                                                                            and makes demonstrable                                                                            bil lity y
                                                                                                                                                                                                                              I
                                                                                                                                                                                                                              nves
     scrutiny, with discoveries likely to be       But there’s evidence that the                                                                                                                 ity
                                                                                            action and impact                                                                                       .
     amplified and distorted online.               investment community is catching up.                                                                                                                                      our tors rat
                                                                                            a necessity for any                                                                                                                   s          e
                                                   Increasingly businesses are evaluated                                                                                                                                    prac ustaina us on
                                                                                            organisation. It makes                                                                                                               tices      bilit
     Expectations of corporate                     on non-financial, Environmental,                                                                                                                                        toda       . I th y
     citizenship have increased.                   Social and Governance (ESG), metrics
                                                                                            ‘greenwashing’ a threat to                                                                                                    has y every ink that
                                                                                                                                                                                                                              a           o
     Last year, more than half of                  alongside more traditional financial
                                                                                            reputation rather                                                                                                            imp sustain ne
                                                                                                                                                                                                                             erat        a
     Council members (56%)                         metrics. BlackRock CEO Larry Fink’s      than an asset. In sum,                                                                                                                ive. bility
                                                                                            “climate change has                                                                                                         	
     said that consumers expected                  recent letter to investors claims
                                                   that, “investors are increasingly        become a defining
     them to take a stand on
                                                   reckoning with these questions           factor in companies’
     socio-political issues,
                                                   and recognizing that climate risk is     long-term prospects.” 10
     against only a quarter                        investment risk.” 6 And BlackRock now
     (23%) who disagreed.5                         claims that, “sustainable investing is
                                                   the strongest foundation for client
     	“
       I think we live in a new and much           portfolios going forward.” 7
        more complex world within which
        it isn’t just shareholder value            IN THIS WAVE, MORE THAN HALF OF MEMBERS (57%)
        that means everything. I think
        corporates are generally aware             SAY THAT BUSINESS LEADERS ARE NOW OVERTAKING
        of their place in society now              POLITICIANS AS A FORCE FOR PROGRESSIVE CHANGE
        more than ever.                            IN THE WORLD (PAGE 23); WOULD THIS HAVE BEEN
                                                   THE CASE JUST 10 YEARS AGO?
THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                                            SHARED VALUE: THE CORPORATE IMPERATIVE?
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THE SAY-DO GAP                                                                                                                                                                                                                                                                                                  017

     A study by Boston Consulting Group                                                       priorities. Still, for many businesses,                                              The US Business Roundtable,               Do you see this as a long-term trend     creating shared value: competitive
     and MIT in the US in 2016 found that,         	“                                        financial and sustainable aims are seen                                              consisting of CEOs from some of           or something that could be reversed if   advantage through stakeholder

                                                                                                                                                       Base: 115 Council members
                                                    At present, keywords such as
     while 90% of executives described               Sustainable Development Goals are        as different in kind. Companies and                                                  the country’s biggest companies,          economic conditions deteriorate?         engagement, improving risk
     sustainability as important, only 60%           flying around in Japan and there is      CEOs are seen to live or die based                                                   recently issued a statement saying                                                 management, fostering innovation,
     of companies had incorporated it                consciousness about instilling social    on financial metrics, and investors                                                  that shareholder value was no longer      80% LONG-TERM TREND                      improving financial performance
     in their strategy, and just 25% had it          purpose into business purposes,          care far less about an organisation’s                                                the overriding corporate priority                                                  and building customer loyalty.11 And
     incorporated in their business models.          but I think that many companies are      performance on ESG metrics.                                                          and that companies should have a          11% COULD BE REVERSED                    at the same time, there are plenty of
                                                     wondering how to do it.                                                                                                       broader social purpose and remit.                                                  warnings about the long-term threats
     Four years on, for many Council                                                          On a scale of 1 to 5, how important                                                                                                                                     of failing to adapt. For example, the
     members, particularly outside                 While the majority of Council              is a company’s performance on                                                                                                                                           outgoing governor of the Bank of
     Europe, crossing this chasm from              members consider the shift towards
                                                   shared value to be a long-term
                                                                                              sustainability in determining
                                                                                                                                 Y IMPORT
                                                                                                                                                                                   	“
                                                                                                                                                                                    Some hedge fund managers may be
                                                                                                                                                                                                                             	“
                                                                                                                                                                                                                              If economic conditions deteriorate,
                                                                                                                                                                                                                                                                      England warned businesses in 2019
     recognition to meaningful action                                                         its valuation (share price)?     ER                                                                                                                                     that those who don’t move towards
                                                   trend, there is much less agreement                                                                                               more interested in immediate returns,     unless you can show immediate

                                                                                                                                    IS V

                                                                                                                                                 AN
     remains a key challenge.                                                                                                                                                                                                                                         zero-carbon emissions will ultimately
                                                                                                                                                                                     as opposed to pension funds that          ROI or growth because of the
                                                                                                                                            5

                                                                                                                                                   T
                                                   that a company’s performance on            1       IS NOT AT ALL IMPORTANT
                                                                                                                                                                                                                                                                      go bankrupt, “without question.” 12
                                                                                                                                                                                     want long-term sustainable returns        strength of being sustainability-
     	“
      I think companies are finding it
                                                   sustainability is currently important in
                                                   determining valuation.                         1     2        3          4          5
                                                                                                                                                                                     which can only come if a business is      oriented, you’re going to see
                                                                                                                                                                                                                                                                      So, what our Council members
                                                                                                                                                                                     planning to be sustainable.               companies get right back to basics.
        quite hard after the first wave of
        enthusiasm for green topics, where                                                    8% 15% 24%                  23% 22%                                                                                                                                     highlight is that, while there’s a
        they said lots of nice things, to
                                                   As these responses reveal, the say-do
                                                   gap is partly based on a perceived                                Base: 120 Council members
                                                                                                                                                                                   	“
                                                                                                                                                                                    If your business is run through short-
                                                                                                                                                                                                                             Understood in this way, sustainability
                                                                                                                                                                                                                             and purpose remain a risk and a cost
                                                                                                                                                                                                                                                                      growing long-term business case for
                                                                                                                                                                                                                                                                      focusing on shared value, the shift in
        embed that into what they actually
                                                   tension between short and long-term                                                                                               term measures all the time, would       to businesses.                           mindset required to set this in motion
        do day to day.
                                                                                                                                                                                     you ever put money into doing
                                                                                                                                                                                                                                                                      is proving difficult in the short-term.
                                                                                                                                                                                     something that might not return an
                                                                                                                                                                                                                             Meanwhile, the Harvard Business
                                                                                                                                                                                     investment for 5 years, when CEOs
                                                                                                                                                                                     are only there for 3 years?             Review enumerates the benefits of

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                                                                                           SHARED VALUE: THE CORPORATE IMPERATIVE?
THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
APPROACHES TO CLOSING                                                                    03.                                                                                                                                 019

     THE SAY-DO GAP                                                                           COMMITTING TO
                                                                                              OBJECTIVE TARGETS

                                                   01.
     Clearly, the scale of this challenge                                                     Several companies identified by
     differs by company and industry.                                                         Council members have made
     In some cases, there appears a                DELIVERING                                 commitments that align to external
                                                                                              standards. Microsoft, for example, has
     fundamental tension between historical        SUSTAINABLE PRODUCTS
     business models and sustainability                                                       committed to aligning its operations
     – for example, in extractive industries       For some businesses, sustainability is     with the UN’s recommended target
     or ‘fast’ fashion. This inevitably            the key feature of a product. Council      of 1.5°C global warming by 2030, a
     impacts the rate of change. But the           members cite Telsa’s electric cars         commitment certified by the Science
     lesson from Council members, is that          as a good example of this type.            Based Target Initiative (SBTi). Danone
     companies that are performing well            Oil companies that are investing in        is aiming to become a B corporation,
     on sustainability are at least moving         renewable energy also fall into this       thus will be legally required to
     towards, “a sustainable approach              category, though there is a long           consider the impact of their decisions
     that is not an add-on but is integral,        way to go before they become               on their workers, customers, suppliers,
     integrated to their business and their        providers of a sustainable product.        community, and the environment.
     strategy and their purpose.”                  The technology sector may count,
                                                   as it focuses on offering the
     EXAMPLES GIVEN BY                             technology to underpin
                                                   sustainability efforts of others.
                                                                                              04.
     COUNCIL MEMBERS                                                                          BECOMING
     OF BUSINESSES THAT                                                                       CORPORATE ‘ACTIVISTS’
     STAND OUT AS BEING AT
     THE CUTTING-EDGE OF
                                                   02.                                        Some companies are conspicuous in
                                                                                              supporting particular external causes.
                                                   CLEANING UP
     SUSTAINABILITY TEND TO                                                                   Patagonia is a flag-bearer for this
                                                   SUPPLY CHAINS                              approach, committing a percentage
     FALL INTO ONE OR MORE
                                                                                              of its revenue to support grass roots
     OF FOUR CATEGORIES.                           As the focus on sustainability
                                                                                              climate movements. Though clearly
                                                   increases, supply chains continue
                                                                                              it could not do this if it did not also
                                                   to be a problem for many companies
                                                                                              commit to other behaviours (e.g.
                                                   – sourcing of resources, labour
                                                                                              clean supply chains). Another example
                                                   conditions, air miles. Innovation in
                                                                                              would be Coca-Cola, which directly
                                                   packaging also falls under this banner,
                                                                                              supports the Global Environment and
                                                   in that by reducing the use of plastics,
                                                                                              Technology Foundation’s work in
                                                   businesses are aiming to reduce a
                                                                                              Africa to replenish water sources.
                                                   harmful by-product of distribution. For
                                                   Council members, Unilever, Nestlé
                                                   and Coca-Cola are good examples of         Each of these approaches does something to incorporate sustainability into strategy or business model, and offers
                                                   businesses focusing on this area.          established paths for other companies to start to cross the say-do gap towards shared value. And the greatest value,
                                                                                              of course, is likely to be delivered through a combination of these approaches.

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                        SHARED VALUE: THE CORPORATE IMPERATIVE?
KEY PRINCIPLES                                                                                                                                                              IN SUMMARY:                                           021

     COUNCIL MEMBERS
                                                   01.
                                                                                              	“
     IDENTIFY SEVERAL
                                                   MAKE COMMITMENTS
     PRINCIPLES THAT
     UNDERPIN ANY OF
                                                   THAT INSPIRE
                                                                                                    Above all, as one Reputation Council member
                                                                                                    puts it, the future must be ‘action-leadership’,
                                                                                                                                                                                 01.	Businesses are facing
                                                                                                                                                                                              significant challenges
                                                   Commitments need to be fundamentally             not just ‘thought-leadership.’
     THESE STRATEGIES:                                                                                                                                                                        in moving from CSR to
                                                   meaningful, credible and inspiring to                                                                                                      creating shared value.
                                                   a range of stakeholders, including
                                                   governments, customers, employees
                                                   and investors. Every business needs
                                                   to assess what issues it is best placed
                                                                                                                               03.                                               02.	While businesses recognise
                                                   to address and whether these issues
                                                                                                                               EVIDENCE-BASED                                                 the long-term importance
                                                                                                                               COMMUNICATIONS                                                 of shared value, there
                                                   are really the important ones for its                                                                                                      is a tension for some
                                                   stakeholders. And all businesses need                                       There is broad agreement                                       between this and short-
                                                   to make commitments on climate                                              that greenwashing is finished.                                 term priorities; this tension
                                                   change. To do these things, they must                                       Communications should be                                       underpins the say-do gap.
                                                   be prepared to innovate.                                                    evidence-based, and tailored to
                                                                                                                               the priorities of different stakeholder

                                                   02.
                                                                                                                               groups. Commitments should be
                                                                                                                               embedded in the corporate
                                                                                                                                                                                 03.	There are existing paradigms
                                                                                                                                                                                              to help companies begin
                                                   MEASURE SHARED VALUE                                                        narrative that companies tell internally                       to cross this gap: focusing
                                                                                                                               and externally.                                                on sustainable products,
                                                   There’s an adage: “what gets
                                                   measured, gets managed.”                                                                                                                   cleaning up supply chains,
                                                   Measurement of stakeholder opinion                                                                                                         making meaningful
                                                   should also inform strategy and                                                                                                            commitments or engaging in
                                                   communications, while helping                                                                                                              corporate activism.
                                                   provide evidence of the effectiveness
                                                   of a business’ commitments. Council
                                                   members see ESG-style measurement                                           REFERENCES
                                                   as key, in that it links directly to the                                    1 -	https://www.businessroundtable.org/          8 -	This Changes Everything: Capitalism vs. The
                                                   financial performance of businesses                                              business-roundtable-redefines-the-purpose-         Climate, by Naomi Klein
                                                   and CEOs.                                                                        of-a-corporation-to promote-an-economy-      9 -	Can Business Save the Earth? Innovating Our
                                                                                                                                    that-serves-all-americans                          Way to Sustainability, by Aaron Chatterji and
                                                                                                                               2 - Ibid                                                Michael Lenox.
                                                                                                                                                                                 10 -	https://www.blackrock.com/corporate/
                                                                                                                               3 -	https://www.ft.com/content/e21a9fac-c1f5-
                                                                                                                                                                                       investor-relations/larry-fink-ceo-letter
                                                                                                                                    11e9-a8e9-296ca66511c9
                                                                                                                                                                                 11 -	https://hbr.org/2016/10/the-comprehensive-
                                                                                                                               4 - https://hbr.org/2015/01/the-truth-about-csr         business-case-for-sustainability
                                                                                                                               5 -	https://reputation.ipsos-mori.com/taking     12 -	https://www.theguardian.com/
                                                                                                                                    -a-stand/                                          environment/2019/oct/13/firms-ignoring-
                                                                                                                               6 -	https://www.blackrock.com/corporate/               climate-crisis-bankrupt-mark-carney-bank-
                                                                                                                                    investor-relations/larry-fink-ceo-letter           england-governor
                                                                                                                               7 -	Ibid

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                        SHARED VALUE: THE CORPORATE IMPERATIVE?
QUICK FIRE                                                                                                                                                                                                                      023
                                                                                                                                      ARE BUSINESS LEADERS                          DOES BIG BUSINESS STILL
                                                                                                                                      OVERTAKING POLITICIANS                        NOT TAKE BOARDROOM
     CHANGING EXPECTATIONS:                                                                                                           AS A FORCE FOR                                DIVERSITY SERIOUSLY?

   ‘A BROADER ROLE
                                                                                                                                      PROGRESSIVE CHANGE
                                                                                                                                      IN THE WORLD?                                 42%                                 54%
                                                                                                                                                                                    Disagree                              Agree

    FOR BUSINESS?’                                                                                                                    32%
                                                                                                                                      Disagree
                                                                                                                                                                          57%
                                                                                                                                                                           Agree
                                                                                                                                                                                                 5% Unsure
                                                                                                                                                                                                       Base: 136 Council members

                                                                                                                                                 11% Unsure
                                                                                                                                                        Base: 129 Council members   While Council members’ opinions
                                                                                                                                                                                    appear divided, in fact there’s a
                                                                                                                                      Nearly three in five Council members          commonly-held view that businesses
                                                                                                                                      agree that, nowadays, it’s not unusual        do take diversity seriously, particularly
                                                                                                                                      to see business leaders flex their            around gender equality, but haven’t yet
                                                                                                                                      muscles as agents of social change.           made enough progress – “it’s hard.
                                                                                                                                      Some may be emboldened by                     The problem has been 30 years in
                                                                                                                                      front-runners like the US Business            the making and we are trying to fix
                                                                                                                                      Roundtable and BlackRock’s Larry Fink.        this in five.” Interestingly, more than a
                                                                                                                                      Up for debate: whether this is really         few members feel their own company
                                                                                                                                      new; what it tells us about today’s           is making better progress than the
                                                                                                                                      political class; and whether leaders          corporate world as a whole.
                                                                                                                                      are really willing to redraw their
                                                                                                                                      fundamental business models?
                                                                                                                                                                                    	
                                                                                                                                                                                     “They do take it seriously because
                                                                                                                                                                                      they have to take it seriously,
                                                                                                                                      	
                                                                                                                                       “                                              there’s legislative and regulatory
                                                                                                                                        We do see companies taking
                                                                                                                                                                                      reasons, but is it moving quickly
                                                                                                                                        stands and we’re seeing some
                                                     Three quarters of Council members          	
                                                                                                 “                                      change. But we’re not at a point
                                                                                                                                                                                      enough, and are we seeing
                                                                                                                                                                                      diversity, no.
     IS IT THE JOB OF                                see a clear societal role – and            Because business has a role and         where most of your ‘average
     GOVERNMENT, NOT                                 responsibility – for businesses.           responsibility in the world today,      Americans’ are going to see big
                                                     However, this should be as part            given the amount of money we            changes in their lives.
     BUSINESS, TO FIX                                                                           bring to the economy. It can no
                                                     of the solution, in partnership with
     SOCIETY’S PROBLEMS?                             governments and other stakeholders,        longer be that we are just there
                                                                                                to make money, we have to
                                                     and aligned with the company’s
      77%                                  19%       “skill set and intellectual capital”.
                                                                                                have a legacy and we have to
                                                                                                be able to answer the question
      Disagree                              Agree
                                                     Agenda-setting must still reside           ‘would the world be better or
                                                     with democratic government; however,       worse off without us?’ If we can’t
                                  4   % Unsure       corporates can often call on greater       answer that, we probably
                         Base: 137 Council members   financial muscle-power and ‘street-level   shouldn’t be in business; it is our
                                                     understanding’, to implement change.       duty and responsibility.

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                                        QUICK FIRE
KEY AUDIENCES:                                It is clear from our conversations
                                                   with Council members that the
                                                                                               giving a louder voice to a wider group
                                                                                               of audiences, including the public;
                                                                                                                                          members also stress that this has not
                                                                                                                                          diminished the role and importance
                                                                                                                                                                                          025

     STAKEHOLDERS
                                                   profile, influence and importance of                                                   of traditional stakeholders (e.g. in
                                                   stakeholder groups are continually
                                                   shifting and evolving. The vast majority
                                                                                               	“
                                                                                                 It gets back to the whole social media
                                                                                                                                          government or media). Interviews
                                                                                                                                          highlight that it’s not a case of new

     & INFLUENCERS
                                                                                                 piece. Everyone has a megaphone
                                                   of Council members name several                                                        stakeholders pushing aside the old
                                                                                                 and can be heard. We have to pay
                                                   stakeholder groups that have become                                                    players, but instead that there is now a
                                                                                                 closer attention and be more nimble
                                                   increasingly important in recent              to respond and engage.                   larger range of influential stakeholders
                                                   years. Many point to the emergence                                                     for corporate communicators to
                                                   and growth of some new influential          While recognising the growth in new        engage and manage.
                                                   audiences, driven by social media           influential stakeholders, many Council

                                                   STAKEHOLDERS THAT HAVE BECOME MORE OR LESS IMPORTANT
                                                   Q. Would you say that any particular groups have become significantly more important or influential, in recent years?
                                                   Q. And have any become significantly less important or influential?

                                                   TOP MENTIONS (SIZE OF CIRCLES ARE RELATIVE TO NUMBER OF MENTIONS)
                                                      Becoming more important             Becoming less important

                                                        Customers             Employees          Government              General             NGOs                    Media
                                                         / Clients                               / Politicians            public           / Charities

                                                         Investors           Social media         Regulators          Activist groups     Shareholders              Suppliers
                                                         / Analysts           influencers                             / Civil society
                                                                                                                                                             Base: 112 Council members

                                                   WHICH STAKEHOLDERS ARE BECOMING MORE / LESS INFLUENTIAL?
                                                   As shown on the following pages, a range of different audiences are recognised by Council members as becoming more
                                                   influential, but leading the way are customers and employees, closely followed by government/politicians and the general
                                                   public. Non-governmental organisations (NGOs), journalists and investors are also commonly mentioned.

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                              KEY AUDIENCES: STAKEHOLDERS & INFLUENCERS
EMPLOYEES                                                                                                                       027

                                                                                                                                      Closely related to the growth of        Employees are increasingly being         However, to do so, employees need
                                                                                                                                      individual activism and engagement,     thought of as credible communicators     to be both empowered and enabled.
                                                                                                                                      is the extent to which employees are    which companies need to “help            Similarly, employees need to receive
                                                                                                                                      now taken “much more seriously as a     empower as potential ambassadors         enough knowledge about their
                                                                                                                                      sophisticated stakeholder audience”.    for the business”. There is also a       organisation’s values and aspirations,
                                                                                                                                                                              recognition that taking good care of     so they feel confident enough to
                                                                                                                                      	“
                                                                                                                                        Employees have risen to the top
                                                                                                                                                                              the workforce can lead to a better-run
                                                                                                                                                                              company and being able to recruit the
                                                                                                                                                                                                                       discuss these with others. Messaging
                                                                                                                                                                                                                       should be aligned across the business
                                                                                                                                        as far as important audiences.
                                                                                                                                                                              best possible talent.                    and succinct in layman’s terms, so
                                                                                                                                        They were an afterthought,
                                                                                                                                                                                                                       that it can be easily digestible and
                                                                                                                                        even a couple of years ago.
                                                                                                                                        Understanding that employees          Our research shows that employees        easily relayed by employees. Inviting
                                                                                                                                        are at the heart of an organization   are seen to be a trusted source of       external stakeholders to facilities
                                                                                                                                        – that they’re the ones who drive     information. Organisations should        or events where they can engage
                                                                                                                                        the culture and the results – is      therefore leverage the potential         with employees is also viewed as an
                                                                                                                                        definitely a trend.                   influence that their employees hold      effective way to give voice to this
                                                                                                                                                                              as credible communicators.               increasingly important group.

      CUSTOMERS
      While many explained the increased           organised and sophisticated in              will do. And it has really required
      importance of customers as being             getting their voices and views heard        us to look at what information
      the audience which ultimately buy            on socio-political issues;                  can we produce that will be
      their products and services (“We’re not                                                  easy to send to these individuals
      an NGO, we’re not the government,
      we’re a company that makes products.
                                                   	“
                                                     The informed public, the political
                                                                                               and engage with them but not
                                                                                               necessarily require us to have
                                                     and socially interested ones have not     meeting after meeting after meeting.
      We’re here to serve the customers.”),
                                                     really played a part in the past but
      others point to the fact that customers                                                While engaging with an individual
                                                     have now become more important.
      are becoming more aware and vocal                                                      is one solution, many also turn to
      on socio-political issues;                                                             NGOs as a partner to help influence
                                                   Several corporate communicators
                                                   observed the growth of “individual        the views of activists and “shape the
      	“
        Customers, maybe over the last             activists”, highlighting the influence    external landscape”. NGOs are also
        10 years, have become more                 that one voice can now have;              seen to be increasingly important to
        important than ever, only because                                                    understand the views of consumers
        they are such an important voice
        in a lot of the debates on health or
                                                   	“
                                                     One of the areas we have seen
                                                                                             while also providing, as one member
                                                                                             stated, “a useful sounding board for
        the environment or packaging or              massively grow is individual            us as we are developing plans”. Just
        whatever it might be.                        activism and how that can actually
                                                                                             like the wider public and individual
                                                     be really quite challenging…as a
                                                                                             activists, NGOs are becoming
                                                     company, we are not set up to
      Similarly, the wider public’s influence                                                increasingly organised and influential
                                                     meet with all these individuals
      is growing as they become more                 because otherwise that is all we        on socio-political issues.

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                                          KEY AUDIENCES: STAKEHOLDERS & INFLUENCERS
GOVERNMENT / POLITICIANS                                                                                                                                                                                                                                              029

     Despite being considered a traditional          they do not have enough               Council members note that the
     stakeholder audience, many corporate            information to analyze properly.      importance of politicians ebbs and
     communicators report that politicians           Politicians are taking advantage of   flows depending on elections and
     are increasingly important to them.             some distorted information in an      other key political events. During a
                                                     opportunistic and populist way.
     As with the public and NGOs, some                                                     normal election cycle, the work of
     politicians are also increasingly vocal                                               corporate communicators is strategic
                                                   Politicians’ ability to determine
     and impactful through their use of social                                             and deliberate, whereas when things
                                                   license to operate is also cited
     media platforms, and occasionally the                                                 are more unpredictable at election
                                                   as a key consideration, with
     views shared on such platforms can be                                                 time “there is almost no point…
                                                   corporate communicators working
     disruptive, damaging and misleading;                                                  because there is going to be such
                                                   hard to ensure their company’s
                                                                                           a huge turnover…when we get
     	“
       Government has gotten more
                                                   views are heard in policy and
                                                   regulatory discussions;
                                                                                           through the election there is a huge
                                                                                           task to be done in terms of mapping
        vocal. They were always
                                                                                           your stakeholders and working out
        important, but now they’re very
        reactionary, so you have to be
                                                   	“
                                                     We actually don’t want to be          where the balance of power lies
        able to anticipate what they will be         the one that the politicians          and where we need to focus.”
        reactionary about.                           have in their sights, but we do       With increased political uncertainty
                                                     want to make sure that we’re          around the globe, communicators

        “
        Customers [are] more informed
                                                     at the table contributing to the
                                                     policy discussion.
                                                                                           are having to adapt and evolve their
                                                                                           approach for engagement with this
        and empowered, but sometimes                                                       important group.

                                                                                                                                  MEDIA
                                                                                                                                  In contrast to views about politicians,           time with various traditional media      would have done 5-10 years ago.
                                                                                                                                  there is much less consensus when                 audiences… they are important            There are just a lot of sources
                                                                                                                                  it comes to the media. Council                    allies for us.                           now online where people use and
                                                                                                                                  members are split on the importance                                                        reuse content and they just don’t
                                                                                                                                                                                  However, others feel that while            necessarily want to pay for it.
                                                                                                                                  of this group, being just as likely to say
                                                                                                                                  it’s on the rise as to say it is diminishing.   traditional media continues to be
                                                                                                                                                                                                                           To a large extent, the perceived
                                                                                                                                  Some feel that the media continues              important, its influence is less than
                                                                                                                                                                                                                           importance of the media will vary
                                                                                                                                  to be a key channel of information              in the past, largely due to the growth
                                                                                                                                                                                                                           from across sector, issue and outlet.
                                                                                                                                  that can be used to communicate a               of social media and online sources
                                                                                                                                                                                                                           For communicators in today’s
                                                                                                                                  company’s message;                              of information;
                                                                                                                                                                                                                           environment, the key is knowing

                                                                                                                                  	“
                                                                                                                                    I wouldn’t underestimate the
                                                                                                                                                                                  	“
                                                                                                                                                                                    They are still important, but I do
                                                                                                                                                                                                                           which media voices have influence
                                                                                                                                                                                                                           on the issues that matter to
                                                                                                                                    relationship with traditional media             think they are less influential than   your organisation and targeting
                                                                                                                                    either, you do so at your peril. We             they used to be, definitely they       engagement efforts accordingly.
                                                                                                                                    try to invest in the right amount of            take up less of my time than they

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                                               KEY AUDIENCES: STAKEHOLDERS & INFLUENCERS
COMMUNICATING                                             Considering the growing voice of the
                                                               public, we asked Council members
                                                                                                           channels of delivering the messaging
                                                                                                           will vary by audience;
                                                                                                                                                   it is especially relevant as a means of
                                                                                                                                                   concentrating messaging towards a
                                                                                                                                                                                                   031

     WITH THE PUBLIC                                           how they go about engaging with
                                                               this audience. Members highlight the        	“
                                                                                                                                                   group of people who are most likely
                                                                                                                                                   to absorb the messaging, react to the

     A TAILORED OR
                                                               need for a targeted approach, where           We tailor messaging to each           messaging, and influence the views
                                                                                                             audience; however, we have
                                                               budgets allow:                                                                      of others. Understanding the views of
                                                                                                             core messaging that our
                                                                                                                                                   these engaged publics can also act
                                                                                                             messages all ladder from to

           ONE-SIZE-FITS-ALL
                                                               	“
                                                                 I think it’s fundamental to have
                                                                                                             create unique messages.               as an early indicator of future trends,
                                                                                                                                                   as they are more likely to be ahead
                                                                 a specific approach for each
                                                                                                           While it is common practice for brand   of the curve in terms of their views,
                                                                 audience. Specific to different
                                                                                                                                                   awareness of issues, and behaviour;
                                                   APPROACH?     segments… To move away from               and marketing functions to tailor
                                                                 something generic and closer              communications towards their core
                                                                 to particularities.                       target customer audience, corporate     	“
                                                                                                                                                     These are the engaged, interested,
                                                                                                           communicators are also increasingly       active people within their local
                                                               This doesn’t necessarily mean that          taking a targeted approach in their       communities and the broader
                                                               different parts of the general public       communications with the public. While     industry circles. If we can reach
                                                               will receive different messages; in fact,   the concept of the engaged citizen        them, and if they can understand
                                                               often the messaging across audiences        and early adopters is not a new one,      what we’re doing, then that helps
                                                               will be aligned, but the formats and                                                  create grounds for them.

                                                               ENGAGING WITH SOCIAL
                                                               MEDIA INFLUENCERS                                                                                                     31%
                                                                                                                                                   Around a third do a little / started to
                                                               Q. To what extent do you try to                                                      do so / depends on circumstances
                                                                  understand and engage with
                                                                  social media influencers?

                                                                44%
                                                                Around two-fifths say                                                                                               17%
                                                                they do a lot / regularly                                                                              Around a fifth say
                                                                                                                                                                       they don’t do any

                                                                                                                                                                                     9%
                                                                                                                                                                  Around a tenth say this
                                                                                                                                                              is done by other functions

                                                               Base: 77 Council members

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                       KEY AUDIENCES: STAKEHOLDERS & INFLUENCERS
However, as one Council member points
     out, it is important to identify and understand
                                                       followers have to say. As a member states,
                                                       this can lead to exceptional levels of insight;         CONCLUSIONS                                    033

     the characteristics of the most engaged
     segment of the public, and to do so regularly     	“
     as their profile can change over time;              I have been working with 10 or 15
                                                         micro influencers who might have                      The increased breadth and influence
                                                         less than 1,000 followers and actually                of the stakeholder audiences with
     	“
       The difficulty is in identifying them             their network can be exceptionally                    which communicators must now
        because they are not the same as they            interesting as well because you get                   engage highlights the fact that
        were 20 years ago, 10 years ago, now.            some very rich in-depth engagement                    building and protecting corporate
        So being able to identify the right slice        with some very interesting insights.                  reputation is a complex challenge.
        of humanity that can give information                                                                  Communicators need to be adept
        in advance, and then gain time for             However, not all corporate communicators                at determining the difference
        companies. It’s a difficult task.              engage with social media influencers.                   between noise and influence, with
                                                       Some feel that the financial costs are too              resources directed accordingly to
     Closely aligned with the increased                great or that social media influencers are              ensure effective relationships are
     need to treat the engaged public as a             “less impactful now”. One Council member                built with the stakeholder groups
     core stakeholder group, is the growing            also warns of the danger caused by                      that matter most. In mapping
     importance of social media influencers;           interacting with such influencers, pointing             out their stakeholder audiences,
                                                       to the risks of handing over control of your            the relative importance of each
     	“
       Very important, an extremely important
                                                       reputation to social media ambassadors,
                                                       and emphasising the need for careful
                                                                                                               group should be determined by
                                                                                                               its level of influence over the
        audience because they really have the
                                                       monitoring when going down this route;                  issues affecting an organisations’
        power to influence both consumption
        and behaviour. And they influence both                                                                 reputation, rather than the channel
        from the point of view of selling our          	“
                                                         Every time you interact with someone,
                                                                                                               through which the influence is
        products and advancing our causes.                                                                     created. This is reflected in the
                                                         you create a contract with someone,
        Digital influencers are extremely                                                                      experiences of Council members
                                                         you are transferring the responsibility
        important. I think the digital influencer                                                              where traditional stakeholders
                                                         to that person. In other words, I would
        will gain even more relevance.                                                                         are given as much consideration
                                                         need to closely monitor the integrity,
                                                         the behaviour of my ambassadors.                      as emerging influencers. As
     When engaging with social media influencers,                                                              technological change continues
     Council members talk about how they first go      Similarly, it is important to underline the fact that   to give voice to new audiences,
     about identifying and selecting a small pool of   Council members are far less likely to name             the ability to map, understand and
     highly relevant and influential individuals;      social media influencers as an increasingly             prioritise stakeholder audiences
                                                       important stakeholder group than they are to            will become increasingly important
     	“
       It is about the quality of audience really,
                                                       name other audiences such as employees,                 in determining corporate
        are we talking to the right people.            politicians, the wider public and NGOs. Indeed,         communications success.
                                                       while social media has undoubtedly been a
     The conversation shouldn’t be one-way.            driver of change, Ipsos Corporate Reputation’s
     While some focus on engaging with                 experience of working with stakeholder
     influencers as a catalyst or ambassador           audiences highlights that direct engagement
     to get messaging across, it is also worth         remains the most effective way to ensure a
     listening to what influencers and their           voice on your key issues.

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                  KEY AUDIENCES: STAKEHOLDERS & INFLUENCERS
QUICK FIRE                                                                                                                                                                                                                                                                035
                                                                                                                                                                                                                              DO FAKE NEWS AND
                                                                                                                                                                                                                              DISINFORMATION POSE
     BOARDROOM CONCERNS:                                                                                                                                                                                                      A MATERIAL THREAT TO

 ‘DISRUPTION
                                                                                                                                                                                                                              OUR BUSINESS?

                                                                                                                                                                                                                              39%                                   59%

  AHEAD?’
                                                                                                                                                                                                                              Disagree                              Agree

                                                                                                                                                                                                                                         2% Unsure
                                                                                                                                                                                                                                                 Base: 135 Council members

                                                                                                                                                                                                                              Three in five Council members agree
                                                                                                                                                                                                                              that fake news is a material threat,
                                                                                                                                                                                                                              but estimates of its severity vary. Few
                                                                                                                                                                                                                              see it as an existential threat, because
                                                                                                                                                                                                                              businesses are adapting to manage
                                                                                                                                                                                                                              the risks, and audiences are learning to
                                                                                                                                                                                                                              distinguish what’s real and what’s fake.
                                                                                                                                                                                                                              But it’s high on the risk register, and not
                                                                                                                                                                                                                              going away any time soon.

                                                                                                                                     ARE SOCIAL MEDIA PLATFORMS NOW TOO COMPROMISED
                                                                                                                                                                                                                              	“
                                                                                                                                                                                                                                That is just the sort of ‘what is
                                                                                                                                                                                                                                someone going to say one day
                                                                                                                                     TO BE CREDIBLE FOR CORPORATE COMMUNICATIONS?                                               about us?’ and how quickly that
                                                                                                                                                                                                                                travels. You can’t predict any of
                                                                                                                                     71%                                25%       (both for corpcomms, and for linking          that – you can prepare for it but
                                                                                                                                     Disagree                            Agree    execs across a business) and Instagram        you can’t predict it. It is the one
                                                                                                                                                                                  (for storytelling and human interest) are     thing that will keep any comms
                                                                                                                                                                                  increasing in importance. The golden          person awake at night.
                                                                                                                                                5% Unsure                         rules? Fit the platform to the purpose,
     IS OUR CORPORATE                               Among Council members, this is            be the concern of everyone in the                       Base: 133 Council members
                                                    now a given. The importance of            business, not just the top tier.                                                    and be ready to manage the risks.
     REPUTATION A
                                                    reputation is “accelerating” across a
     BOARD-LEVEL CONCERN?                                                                     	                                     Despite a widespread view among              	
                                                                                                                                                                                   “
                                                    number of fronts – governance, risk,
                                                    employee engagement, commercial
                                                                                               “Absolutely. Our Chief Operating
                                                                                                                                     Council members that certain platforms         Need to be alert but that’s where
                                                                                                                                     “need to clean up their act”, most
     6%                                   93%       performance – as is the role of the
                                                                                                Officer reviews our corporate
                                                                                                                                     are not ready to write the obituary for
                                                                                                                                                                                    our stakeholders are, so we need
                                                                                                                                                                                    to be part of that discussion.
     Disagree                              Agree                                                reputation quarterly and it is
                                                    CCO as trusted advisor to the board on                                           social media. The reason is simple –
                                                                                                reviewed with our Board of                                                        	There is nothing compromised
                                                    reputation. However, some members           Directors, so it starts at the top   this is where stakeholder conversations        about them. Social media is a
       1% Unsure                                    point out that reputation should really     and filters all the way down.        happen, so businesses have to engage.          huge enabler, I do not have a
                        Base: 137 Council members                                                                                    Indeed, platforms such as LinkedIn             down on social media.

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                                                                                                  QUICK FIRE
EXPECTING THE UNEXPECTED:                                                                                           There are a number of components that
                                                                                                                         make up the blueprint of an effective
                                                                                                                                                                 In this sitting of the Reputation Council, we’ve explored what the key factors are
                                                                                                                                                                 in successful communications planning, the most important changes in how
                                                                                                                                                                                                                                                             037

     COMMUNICATIONS
                                                                                                                         communications planning cycle.          corporate communicators work and the future of the function. In addition, we
                                                                                                                                                                 touch on other hot topics of debate, including the balance between internal and
                                                                                                                         AMONG THEM THERE ARE:                   external communications and the timings of the communications planning.

     PLANNING IN                                                                                                                 imely actions to
                                                                                                                                T

     A DISRUPTIVE
                                                                                                                                support business
                                                                                                                                strategy throughout
                                                                                                                                the financial year

     ENVIRONMENT                                                                                                                I nsightful inputs to
                                                                                                                                 maximise chances
                                                                                                                                 of conveying a
                                                                                                                                 comprehensive message

                                                                                                                                The involvement of
                                                                                                                                  appropriate internal
                                                                                                                                  stakeholders

                                                                                                                                 he right balance of
                                                                                                                                T
                                                                                                                                aligned and unified
                                                                                                                                internal and external
                                                                                                                                communications

                                                                                                                                 ability to adapt to
                                                                                                                                An
                                                                                                                                the unexpected

     The success of a communications strategy is in large part   planning the year ahead whilst remaining sufficiently
     dependent on sound planning. Corporate communicators        nimble to react to unexpected and hard-to-predict
     need to ensure that their function is fully integrated in   circumstances that often present communications
     the business. It needs to be capable of both proactively    challenges in the short term.

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                             EXPECTING THE UNEXPECTED: COMMUNICATIONS PLANNING IN A DISRUPTIVE ENVIRONMENT
FIVE KEY FACTORS IN SUCCESSFUL                                                                                                    03.                                      04.                                          05.                                            039

     COMMUNICATIONS PLANNING                                                                                                           BUDGET AVAILABLE
                                                                                                                                       Financial constraints are a key
                                                                                                                                                                                EXTERNAL SOURCES
                                                                                                                                                                                Specialist opinion research, brought in
                                                                                                                                                                                                                             PEERS
                                                                                                                                                                                                                             It is often the case that corporate
                                                                                                                                       factor to consider and corporate         from third party sources to understand       communicators discuss the challenges
                                                                                                                                       communications are often required        the perceptions and expectations of          and opportunities facing their
                                                                                                                                       to maximise impact with limited          various stakeholder groups, or test          businesses with their networks of
                                                                                                                                       resources. This is an essential factor   the validity of specific campaigns or        peers in the sector. Confidentiality
                                                                                                                                       in determining the day-to-day            initiatives is also a common input. It’s     certainly plays a key role here, but
                                                                                                                                       execution of the plans.                  objective nature makes it particularly       Council members often see this
                                                                                                                                                                                powerful in some businesses, as it           as a key way to validate current
                                                                                                                                       	“
                                                                                                                                         There’s the budget process, which
                                                                                                                                                                                brings clarity when conflicting internal
                                                                                                                                                                                points of view.
                                                                                                                                                                                                                             approaches and discuss fresh ideas.

                                                                                                                                         is happening now. The amount of
                                                                                                                                         money you have to spend dictates                                                    	“
                                                                                                                                         some of the things you’re going to     	“
                                                                                                                                                                                  External analysis – strategy and
                                                                                                                                                                                                                               External stakeholders, inside market
                                                                                                                                                                                                                                intelligence, customer intelligence,
                                                                                                                                         be doing – so budget dollars.            insights. What is happening in the            – several sources are integrated.
                                                                                                                                                                                  surrounding culture, what are the
                                                                                                                                                                                  pressures coming at you?

                                                   01.                                    02.
                                                   BUSINESS OBJECTIVES                    SENIOR LEADERSHIP
                                                   Business strategy and priorities       Top management and senior decision
     GOOD CORPORATE                                for the year ahead are at the heart    makers often have an active voice in
                                                   of communications planning.            shaping the communications strategy
     COMMUNICATIONS
                                                   The overall organisational             of the business. They input their views
     PLANNING IS DESIGNED                          strategy both short and long-term      at any stage of the design and/or
     IN CLOSE COOPERATION                          (i.e. five- or ten-year strategies)    signing off the final version of the plan.
     WITH THE BUSINESS IT                          shapes both the overarching and
     SERVES. THERE ARE A                           tactical comms initiatives.            	“
                                                                                            First and foremost, it’s from the
     NUMBER OF SOURCES
     OF INFORMATION, BOTH                          	“
                                                     Business strategy from the
                                                                                            general manager and board
                                                                                            leadership of that business. We
                                                                                            don’t plan anything until we’ve sat
     INTERNAL AND EXTERNAL,                          management department.
                                                     And financial information from the     down with them and discussed
     THAT MEMBERS CONSIDER                           finance department.                    their strategic priorities for the year

                                                                                                                                       	“
     WHEN PLANNING:                                                                         ahead. I very much view corporate
                                                                                            communications as supporting
                                                                                            that strategic roadmap rather than                   Business operating strategy dictates priorities; research with consumers for the business;
                                                                                            telling them what their strategic                    financials (opportunities and threats); business performance.
                                                                                            roadmap should be.

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                                                            EXPECTING THE UNEXPECTED: COMMUNICATIONS PLANNING IN A DISRUPTIVE ENVIRONMENT
THE MOST IMPORTANT CHANGES IN HOW                                                                                                 THE BIGGEST CHALLENGES IN THE                                                                           041

     CORPORATE COMMUNICATORS WORK                                                                                                      COMMUNICATIONS PLANNING PROCESS
     The past decade has brought deep transformations to the way organisations are expected to interact with their stakeholders.                   As the role of the corporate                 With increasingly complex organisational
     From day-to-day execution to overall strategies for stakeholder engagement, here are some of the changes most commonly                        communicator becomes increasingly            structures and competing priorities,
     mentioned by Council members:                                                                                                                 complex, Council members discuss             coordinating processes and messages
                                                                                                                                                   some of the obstacles they face in their     is a common challenge that needs to
     01.                                           	“
                                                     Communication process has
                                                                                             other internal departments. Externally,
                                                                                             the communications process has
                                                                                                                                                   jobs today. The most important are:          be considered. Equally, balancing short
                                                                                                                                                                                                and long-term priorities is frequently a
     IMMEDIACY                                                                               moved from ‘broadcasting’ to
     The 24h news cycle requires corporate
     communicators to react quickly to
                                                     changed tremendously, there
                                                     are fewer journalists, print            ‘dialogue’, with stakeholders expecting
                                                                                             a higher degree of interaction than
                                                                                                                                                   01.                                          difficult exercise.

     news stories and have a point of view
                                                     has decreased in importance,
                                                     development in fields of digital,       in the past.
                                                                                                                                                   ALLOWING TIME FOR                            	“
                                                                                                                                                                                                  Changing priorities, short term
     on critical issues with the potential to        social media, podcasts, videos                                                                THE UNEXPECTED
                                                                                                                                                                                                  objectives… Once we have the
     affect their organisation’s reputation.         and so on, a new audience is
                                                     being addressed, the middle man
                                                                                             	“
                                                                                               There is a breakdown in silos within
                                                                                                                                                   Increased scrutiny of an organisation’s
                                                                                                                                                   activities and a global remit often lead
                                                                                                                                                                                                  strategy and plans, we have to
                                                                                                                                                                                                  change it.
     	“
       I think the more we globalize, there
                                                     (journalist) is cut out.                  business and this reflects a merging
                                                                                               of communication disciplines.
                                                                                                                                                   to reputational crises that need to be
                                                                                                                                                   dealt with decisively. Time commitments
        will be much longer working hours.
        Especially in communications, the          03.
                                                                                               It used to be that internal
                                                                                               communications, marketing and
                                                                                                                                                   vary depending on their severity, but
                                                                                                                                                   Council members agree on the need to
                                                                                                                                                                                                03.
        reaction is important. If something                                                    corporate communications were
                                                                                                                                                   carve out time to cope with unexpected
                                                                                                                                                                                                LOCAL IMPLEMENTATION
        happens somewhere it needs to be           STORY-TELLING                               really separate areas but with                                                                   OF GLOBAL STRATEGIES
                                                   Standard press releases are no longer                                                           challenges in a volatile environment.
        dealt with. If there is an increase in                                                 so much blurring of boundaries
                                                                                                                                                                                                With Council members normally being
        overseas matters that cannot wait          good-enough to get a company’s              between those and that has forced
        until the next day, I wouldn’t say         point across. Stakeholders increasingly     a greater degree of collaborative                   	“
                                                                                                                                                     It’s being in such a reactive
                                                                                                                                                                                                part of leading global organisations,
                                                                                                                                                                                                they often find that transposing global
        we need to be in operation 24 hours        expect creative story-telling for press     and integrated working which then
                                                                                                                                                     environment. There are issues and          messaging into their local context
        but monitoring them will be tough.         officers to stand out from the crowd.       becomes a bit of a self-fulfilling
                                                                                                                                                     crises that we’ve had to deal with         is a delicate process that requires
                                                                                               prophesy because you then get
                                                                                                                                                     here. We have protesters. We have
                                                                                               more blurring of boundaries, it                                                                  careful consideration to account for
                                                   	“                                                                                               environmental issues. We have
     02.                                             We’ve changed how we think
                                                     about external communications.
                                                                                               just keeps feeding itself as a way
                                                                                               of working.
                                                                                                                                                     animal welfare issues. These things
                                                                                                                                                     tend to pop up relatively quickly
                                                                                                                                                                                                cultural differences.

     THE SHIFT TO DIGITAL                            We’ve gone from “press release                                                                  and you have to react to them.             	“
     New communications channels, social             happy” to storytelling outside of       	“
                                                                                               Really acting like an agency;
                                                                                                                                                     That, unfortunately, gets in the
                                                                                                                                                                                                  “The biggest difficulty is aligning
                                                                                                                                                                                                  each global business strategy with
     media in particular, require corporate          the traditional press release. We                                                               way of some of the more proactive
                                                     can’t just check off ‘press release’      bringing the full amount of                                                                        each region. The difficulty is that
     communicators to adapt their skillset                                                                                                           things that we’d like to do to talk
                                                     - we need to be more creative.”           expertise within the team. You                                                                     what you see at headquarters is
     and nurture more multi-disciplinary                                                                                                             about our reputation and show
                                                                                               could be working on something                                                                      different from what you see locally,
     teams. There is also the need to                                                                                                                how we’re activating on purpose.
                                                                                               that you don’t support directly. We                                                                so I think it’s very difficult to get
     coordinate the messaging across
                                                   04.                                         try to be as collaborative as we can                                                               this alignment. The most common
     platforms and interact with stakeholders
     in a more direct way than in the past.        COLLABORATION
                                                                                               and bring the expertise that we
                                                                                               have in-house to any number of
                                                                                               initiatives that we’re working on.
                                                                                                                                                   02.                                            thing is the fact that we have a
                                                                                                                                                                                                  global team and the local team
     Ensuring consistency and a single voice       These days, communications teams                                                                DECENTRALISATION                               brings the raw information from
     is of paramount importance.                                                                                                                                                                  the locals.
                                                   are expected to work closely with                                                               AND COORDINATION

THE IPSOS REPUTATION COUNCIL: FOURTEENTH SITTING                                                                                                               EXPECTING THE UNEXPECTED: COMMUNICATIONS PLANNING IN A DISRUPTIVE ENVIRONMENT
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