Consumers and stakeholders have great expectations from top management and leading brands. They trust not only the quality of products and services they receive, but also expect compliance with core values that demonstrate corporate social responsibility.
Each day there is a higher bar to reach in the business arena. Financial performance is not enough to measure success, fact that it is well documented by academics and experts like The RepTrack Company, formerly known as The Reputation Institute. CEO’s and top management must consider human and social capital. If they focus solely on marketing and sales goals without adopting a comprehensive business vision, they are like an explorer stepping on quicksand, putting themselves at great risk. All those factors build or affect the reputation, an intangible value that gains more importance nowadays, since it not only affects the business bottom line, but is tested during times of adversity.
After recent systemic racist acts in the United States of America, which have motivated massive protests around the globe condemning such behavior, many companies have expressed support to the “Black Lives Matter” movement. All of them will be judged by key publics who are evaluating if such campaigns are honest. I am sure companies like Nike, who have been consistently voicing their anti-racism message for the past few years, will be perceived as genuine and aligned to their brand character. Others, who are opportunistically joining the conversation without making diversity and inclusion values that reflect their beliefs, will pay the price of such inconsistency. I am referring to companies that posted anti-racist messages or joined Facebook ad boycott campaign “Stop the hate for profit”, but discriminate against women by offering lower salaries than men or reject disabled prospects for job posts they are capable for, to say the least. Make no mistake, some companies will learn the hard way that you cannot fool stakeholders. Sooner or later the truth will prevail. Now more than ever, besides facing the scrutiny of the press, businesses vulnerabilities are subject to negative comments in social media that could result in a major crisis.
The time has come for true leaders to examine their purpose and demonstrate their commitment with values like transparency, fairness, diversity, and inclusion as part of their corporate governance. They need to avoid the gimmicky messages and, instead, embrace core values and act upon it. It is insufficient to generate conversations about what is considered universal human rights. The topic is so relevant and crucial that in June 2020 the World Economic Forum (WEF) released Diversity, Equity and Inclusion 4.0, a toolkit for leaders to accelerate social progress in the future of work. I invite you all to examine this document and consider the moral, legal, and economic imperatives stated by the WEF to become an inclusive organization.
Without a strategic plan, that should be developed by a well-seasoned public relations practitioner, CEO’s and top management will not be able to demonstrate true commitment to diversity and inclusion values while achieving accountability. We, as the conscience of the company, have the expertise, the ethical commitment, and the skills to listen to our key publics, do research, identify the problem or opportunity and plan to resolve the situation, while aiming to attain social balance. Our discipline has also proven its significance and contribution to the overall business performance. There are business leaders who value our discipline while others suffer short-sightedness, viewing public relations only as a tool when making a positive announcement or reacting to crises.
Leading business executives and companies invest a lot of time and resources to attain a privileged position in the competitive marketplace, but they must be genuine, receptive, and step up to their stakeholders’ expectations. That is of utmost importance to be able to keep ahead of the pack and develop loyalty, as well as long term mutually beneficial relationships. Actions speak louder than words, and companies should always do the right thing, not because they are being judged but because it is part of their purpose; let’s say their corporate DNA. That is what sets a true leader apart.
Originally published in the Global Alliance for Public Relations and Communication Management website. Any thoughts or opinions expressed are that of the author and not of Global Alliance.
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