It's the economy stupid... but not at the cost of trust
Looking forward at 2010, some of Europe's most senior and respected corporate communicators have revealed that, while the economy is still the biggest issue they face, there is also a vital need to focus on trust, ethics and transparency. The second session of Ipsos's Reputation Council also looked at how to communicate with cynical stakeholders and the alignment of communications strategies with marketing and HR. The members confirmed that the recession, and the impact it has had on the practice of corporate communications, continues to dominate the concerns. The implications in terms of business performance, budgets and head count are all at the front of mind, as well as what a poor performance can mean for reputation. This has led to increased importance being placed on trust and transparency. Council members are aware that during a difficult economic climate they cannot be seen to compromise their ethical standards. For example, many are highlighting that tough market conditions are not affecting their commitment to environmental sustainability. Milorad Ajder, Managing Director, The Reputation Centre at Ipsos said: "Concerns over the economy are still clearly running high, not only in terms of what it means for budgets, but also how it affects messaging and communication. "The issues faced by the banking sector have made communicators more aware than ever of the importance of trust. Customers, stakeholders and the general public need to be reminded of a business' transparency and ethics in order to maintain their reputation." Council member Patrick Kerr, Director of Corporate Communications, Reed Elsevier said: "Ipsos's latest report demonstrates that trust is now widely recognised as the fundamental driver of successful corporate reputation management. It is also clear that trust needs to be nurtured internally as well as externally." Dealing with cynical stakeholders The Council also covered the issue of dealing with stakeholders. Over half of the members have experienced cynicism from stakeholders at some point. While many see this as `par for the course', others believe it is a question of targeting the more receptive stakeholders in preference to committed cynics. The Council gave the following advice to communicators who were experiencing difficulties with stakeholders:
- seek a commonality of interest,
- focus on the issues of most relevance to stakeholders (rather than single-mindedly pursuing the organisation's own agenda),
- ensure the organisation's communications are aligned with its behaviour,
- engage sympathetic third parties to tell the story on your behalf.
Ajder added: "While we talk about the prominence of `trust' as an issue, on a practical level it is `mistrust' and cynicism from stakeholders that many Council members are having to deal with, exacerbated by the recent crises and scandals. Against this backdrop the struggle continues for credible communications and meaningful stakeholder dialogue."
Reputation management from the inside out Given the prominence of the trust issue and the challenges of engaging cynical stakeholders, the Council believe it is vital for an organisation to be seen to have a consistent voice, whether it is talking to consumers/customers, employees or other stakeholders. The main benefits of aligning communications and HR strategies are seen as reinforcing the internal values and culture of the organisation and also having a direct impact on employee motivation and service delivery among customer-facing staff. Here too, strategy alignment is seen as a way to avoid a gap opening between what the organisation says and what its people do on the ground. It can also help attract the right sort of people to join the organisation. Ipsos's Reputation Council includes some of the most senior corporate communicators from around Europe. The Council brings unparalleled levels of communications expertise and, through our regular feedback sessions, provides an insight on a wide range of reputation issues, both within the corporate environment and the wider world. The over-arching mission behind the Council is to highlight the importance of reputation management as an agent for positive change - both commercially and socially. The premise is that people and organisations are more likely to perform well when the issue of reputation lies at the heart of the day-to-day decisions they make.
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About Ipsos Ipsos is one of the largest, and best known research companies in the UK and a key part of the Ipsos Group, a leading global research company. With a direct presence in 60 countries our clients benefit from specialist knowledge drawn from our five global practices: public affairs research, advertising testing and tracking, media evaluation, marketing research and consultancy, customer satisfaction and loyalty. For further information: Matt Flanders PR Manager T: +44 20 7347 3452 Email
