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Moving from Transparency to Accountability in a Recessionary Economy
By: Jennifer Brinkmann | 12/09/2008
While transparency has become one of the hottest marketing buzz words, public relations professionals have been smirking. One of the tenets of sound public relations always has been transparency. It is at the core of building real and trusted relationships with consumers and other stakeholders. So, the good news is that all marketers -- whether in marketing or communications, or both -- are now working from the same hymn book. The bad news is that consumers have moved on.
Today's economic environment is creating activist consumers. Consumers, otherwise known as you and me, demand more. They want true corporate accountability. As more private industry lines up to receive taxpayer funded bailouts, transparency is no longer enough. Taxpayers want a say in executive compensation and in the business operations of the salvaged corporations. Now taxpayers are shareholders. Regardless of SEC or other regulations, taxpayers want to trust that these organizations are operating fairly and treating their employees and communities with respect. Consumers will no longer tolerate greed or misconduct.
Even those businesses that are not receiving government bailout dollars should take notice. If consumers begin to expect greater levels of accountability from their banks, car manufacturers and insurance companies, they certainly will demand the same from their healthcare providers and educational institutions. Eventually, they will expect the same from the companies who put food on their table and provide other household goods.
This new environment changes how we represent corporations and brands in the marketplace. The convergence of a weakened economy, the green movement, excess in executive compensation despite dismal performance, and the rising voice of the individual consumer via social media, creates an environment where accountability is the key to building trustworthy relationships with consumers, investors, policy makers and others.
What does this mean for marketing and communications strategies? First, reconsider how your organization defines corporate social responsibility. Is it simply your philosophy for giving back to the community? Does it address the environmental impact you are making on the world? Does it align with your business strategy, building a case for your business to exist and do good in our society? Does it address your performance as an employer? These are the types of questions people who matter to your company are going to begin to ask.
Once you define what corporate social responsibility means to your company, then you can brainstorm many ways to demonstrate that you are accountable to the people who matter to your business. Companies who take this approach, as simple as it may sound, will be well positioned for growth when the economy improves.
Posted in Brand Positioning, Public Relations
Michele Nix says:
Sat, December 13, 2008 at 4:37:pm
Jennifer, You make such a great point. Define your terms. And redefine them, especially as times change. Fifteen years ago or so, business used to define social responsibility as “community affairs.” The function was considered ancillary, “local” and was largely relegated to a one-person shop.
Today the definition is changing; it’s becoming broader; its role is becoming more prominent, we’re seeing CSR teams and CSR chiefs. As you rightly say, stakeholders are redefing the term, too, seeking a greater say about leadership, business conduct, money management, ethics and “good corporate citizenship.” I’m optimistic, though, and believe that smart corporate leaders, having been witness to the public outcry and brand demise accompanying the financial crisis, will take steps to revisit social responsibility and what it means to them…and make across-the-board accountability a core element of standard operating procedure.