In our last post, “3. The learning curve”, we homed in on the intersection between corporate citizenship, communication and reputation. We now turn our attention to the notion of authenticity in today’s hyper-connected world.
The prevalence of social media makes companies visible in ways that increase demands and expectations for disclosures. Companies are in an ever-brighter spotlight from which it is virtually impossible to escape and where stakeholders of all kinds can and do seek and obtain information.
Stakeholders expect authenticity and transparency, continuous interactive communication, and information exchanges built on relationships that go beyond one-way announcements.
While corporate communications and corporate responsibility teams are often at the forefront of listening to stakeholder concerns, other departments and functions are increasingly involved. Investor relations, for example, are seeing a spike in shareholder resolutions.
Businesses face increasing scrutiny from activists, media and investors who demand a variety of social reporting. These include multiple-bottomline reports, which focus not only on economic returns and impacts, but also on social and ecological factors.
To manage their own reputation, many companies feel the need to report regularly on environmental, social and governance (ESG) issues. The primary way is via their websites and press releases, along with disclosures in mandatory documents, typically in financial reports. Too many of these can be laudatory rather than open about the issues and challenges the business faces. This can, and does, fuel the paradox.
Just publishing a report isn't enough. Nor is cherry picking the information. Companies need to determine who will read it and how best to make sure they will find it credible.
In our next post, “5. True engagement”, we will turn our attention to the importance of stakeholders for communicating authentically on corporate citizenship.
