Tag Archives: King Report

Global movements affecting company Reputation

Some thoughts on responsible leadership, public activism and reputation

Right now trust in mainstream media, government, business and NGOs is lower than it’s ever been. Organisations have to work extra hard at building trust, loyalty and reputation, and to avoid crises that may cause harm to their operations and reputations.

Management and Leadership changes

In the past, management would decide on its company culture, inform stakeholders and the public what it stands for and how it does its business, sometimes explicitly stated in a company’s vision and mission. Once done, the company would brand itself in terms of its culture and its products. And we, the public, would believe everything it said.

However, over time the public would rate a business on the extent to which its products and actions matched its goals. Too often public perceptions and ratings were ignored, leading to loss of reputational capital, while managers and leaders focused only on the other ‘capital’ – profitability. Today, because of the glaring evidence of crises resulting from public reaction to irresponsible leadership, organizations are being forced to act more ethically.

Public perceptions

The public expects organisations (including government) to keep their promises. Individuals want to trust a business they deal with. Their perceptions of and attitudes towards a company must be positive before they can trust it. And business certainly needs loyal customers and stakeholders. No company can afford to ignore the reactions to their behaviours. They do so at their own peril. Managers and leaders must listen and adapt.

Social Media and Advocacy

Meanwhile globally, the rise of social media, and the grassroots engagement it affords, has contributed to the growth of people power. Companies are constantly being watched and evaluated by the man in the street who happily shares his perceptions, based on what he sees and hears in the media. These perceptions gain momentum and can lead to mass action, causing negative outcomes for the businesses concerned. There are so many examples of this, but H&M’s recent crisis over an alleged ‘racist’ advert is one. With the growth of public and employee word-of-mouth marketing, research has shown that advocacy statements by activists and ‘influencers’ on social media are far more powerful in terms of engagement and belief than content that comes directly from the brand or company.

Ethical Branding

Ethical business builds Reputation

Ethical branding is crucial as companies become aware of the importance of good corporate citizenship, responsible behaviour and transparency in all their dealings with internal and external stakeholders. More than ever before, building public trust is crucial to any business operation and its survival. Managers and leaders must ensure that the company performs well economically, ethically, legally, environmentally and socially, that is, as a corporate citizen.

The King Report, now in its 4^th form, is regarded as the ‘go-to guide’ on corporate governance for large companies. Government and SMMEs too would definitely gain by consulting the document. Basically, it highlights key aspects of creating a corporate environment for the 21^st century and beyond where corporate citizenship and responsible leadership are key. Only by focusing on its role in society and behaving with transparency can an organization ensure its reputation and sustainability.

My thoughts on the KPMG reputational crisis

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KPMG’s name and reputation remains in crisis and in the headlines. We just can’t stop talking about it. So let’s start learning from it. Having been involved in practising, lecturing and consulting in Corporate Communication, I can’t resist throwing out some of my own thoughts on the matter.

Loss of ethics loss of Reputation

In terms of corporate citizenship, ethical branding, responsible leadership, accountability and reputation, here are my offerings:

For many years now, the King Report has been the go-to document for guidelines on corporate governance, corporate citizenship and responsibility to one’s stakeholders, community, politico-economic and natural environment. Large corporate are obliged to take note and commit to upholding the principles and values contained in the King Report which is constantly being revised to ensure it remains valid, relevant and current.
Transformational leadership. It’s simple: know what it means. Know the code of conduct. Know how to motivate and inspire. Know the law but act ethically. Know your people and their feelings. Know the truth. Spread the truth.
Reputation management: Every company –small and large – must plan and manage its identity, its values and its behavior in order to manage outcomes and others’ perceptions of it. Only through critical strategic discussions with all stakeholders, including the media, can a company develop a strong positive reputation.
Crisis management – Plan, prepare, strategise for negative disruptive events that impact your operations and your reputation. Without a crisis plan you’re doomed. Public sharing is vital for a reputable organization to gain support. Don’t apologise unless you mean it and are prepared to pay the price.
Corporate culture: Vision, Ethos, Values, Beliefs and Behaviour. Accountability means to take responsibility for one’s decisions and actions and be adaptable to changes in the environment and courageous to stand one’s ground in the midst of potential threats, temptations and challenges. Be purpose- not greed-driven.

Finally, companies should strategise for sustainability. Their strategies must translate into best practice – setting standards and acting as examples for conducting ethical business, based on principles and values of trust, integrity, professionalism, not greed, status and power.

Corporate governance and CSR – is it for REAL?

You’re a Corporate Communication Strategist? But what do you do?

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You’re a Corporate Communication Strategist? But what do you do?
In order to explain what I do as a Communication Strategist, I need to first point to a few crucial factors that answer the question “Why do you do what you do?”
1. The world is a different place now. Business is only one part of a much greater system and, to sustain harmony in the world, organisations have to consider their place in and their responsibility to the bigger system. They have to act in a way that enhances the concept of interdependence between economic, financial, environmental, political and social factors. The business arena is ‘being watched’ by activists and thought leaders who are very ready and able to expose companies that cause disharmony; so much so that regulators and governments are responding to the pressure by imposing guidelines and conditions for how organisations should behave if they want to be seen as reputable and sustainable global players.
2. A business is not self-sufficient, it needs all kinds of support from those on whom it depends for its existence. Today, people and consumers know more and expect much more from business. They want to feel that a business identifies with them and their needs, not the other way around, and ‘speaks to’ them.
3. There are thousands of similar products and services out there, so why should people choose yours? What you offer, over-and-above your product, counts for a lot now, and it is involves more than a transactional relationship, it must be real engagement with your people – an emotional connection. Differentiation through communication not products.

A communication strategist understands these factors and reaches out to the business world to develop a deep appreciation of how these factors impact a business’s operations, growth and success. The strategist engages with organisations through communication learning from each other, getting to know the company’s situation and responding to stakeholder needs appropriately to achieve business goals.
Tony Manning, once said, “Organizations are managed conversations.” Every day you and your organization communicate. There is an ongoing flow of information, ideas, opinions and emotions between an organisation and its audience or stakeholders – but is this communication well-planned to achieve its goals? Is it sufficiently strategic?
For corporate conversations to be meaningful and have a positive impact on the company and its publics, they need to be planned, appropriate and relevant. And the messages that come from a company must reflect its personality and its purpose. Developing a strategic communication plan moves the company in the right direction, getting internal and external audiences to buy into its vision, plans and activities.

The plan begins with YOU. Your company’s purpose and vision is fundamental to your success. If you don’t know your company’s purpose or even your own, finding one is your first priority. You also need to identify those with whom you want to share, collaborate and build your company, and then harness the power of communication to get them to work with you to accomplish your business goals.
Many business owners, managers and leaders need a helping hand in developing a clear, consistent and effective communication strategy. That is where the communication strategist comes in: she begins their conversation by getting the ‘boss’ to reflect on the business, its purpose and goals, its strengths, weaknesses and challenges, asking questions like: what is the outcome you want? What stands in your way? How do you overcome these obstacles?
At REAL Communication Consulting, we use well-researched methods to develop a strategic communication plan. We divide the process into ten ‘conversations’ in which you:
1. Identify your purpose and develop a vision or mission statement
2. Develop a corporate identity or brand to reflect who you are
3. Identify specific communication goals that support your business goals
4. Communicate mindfully with your stakeholders to learn what is important to them
5. Find alignment between your perceptions and those of your stakeholders
6. Develop the key strategic messages to achieve your goals
7. Create and deliver communication that speaks to your key stakeholders
8. Clarify meaning to minimize misunderstanding, wasted time, and negative emotions
9. Plan feedback and measurement methods to ensure that communication achieves its goal
10. Develop reflective practices that help you develop your communication expertise.

A communication strategy helps you create a productive communication environment, generating trust and a culture of interactive, engaging and meaningful communication in your organization.
Once your business starts on this journey, it will see itself as part of a much larger system with greater goals for future sustainability, and it will begin considering ways to make not only its business, but the world, a better place.