THE IPSOS REPUTATION COUNCIL - FINDINGS FROM THE FOURTEENTH SITTING Exploring the latest thinking and practice in corporate reputation management ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
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
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
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
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
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
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
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 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?
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?
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
You can also read