First, revisit the purpose of the business. The purpose should
be inspirational for everyone with a stake in the business.
There are very few businesses that do not make a social
contribution. You take away oil or banking, the utilities or
transport businesses and watch the knock on effect on everyone's
lives. The social aspect of a business mission is not a
superficial aspect of branding. Within this new sense of purpose
is the concept of balance. Increasingly, shareholders understand
that managing simply to secure financial results can bite you on
the bottom line.
Create a workforce committed to your purpose
Articulating your purpose gains you at least two things. First,
you communicate a consumer benefit (and win a bit more trust).
Second, you stand more chance of achieving that rare thing -
employees working together for a common goal. Creating a
co-operative culture where employees work together on a shared
goal won't happen by accident. A co-operative culture involves a
planned approach, employee involvement, the sharing of best
practice and common policies and processes.
Define "how we do things around here"
People have a lust for a clear framework of how to behave.
These are usually called values. The fact is there are many ways
of defining how you do things in your business. Shell has their
business principles. Southern Sun Group of South Africa has
defined its top ten accountabilities to stakeholders. Johnson &
Johnson has a credo.
But there are three critical factors: " your convictions need
to emerge from your business " they need to be genuine
convictions and strong enough to remain in place when tested "
and they need to be translated into practice
Manage the intangibles
The model of business success has changed. Past financial
success only provides one dimension of value. Other factors
which can add to the value of a business include a clear
strategy, a strong Board, customer loyalty, employee skills, new
revenue streams, competitive differentiation, reputation and
innovation. If you successfully manage values and value you earn
trust.
Develop a clear strategy for CSR (corporate social
responsibility)
Here's a prediction. In the next decade or so CSR will merge
into corporate governance and corporate reputation. For example
in the UK, there's the Business Impact Task Force model and the
GoodCorporation mark.
You need to define why you want to manage CSR. And that varies
from company to company. Drivers include attracting ethical
investment, compliance, competitive differentiation, improving
reputation or winning customer loyalty.
Create a brand with personality
People who win trust are open, visible, engaging and they tend
to have their own personality. That personality is diverse. You
can see it in the buzz as you walk into the reception of Asda HQ
in the UK. You can see it in the amazing ideas of Semco from
Brazil who devolve "to the max". And you can see it in
the words of Ralph Larsen, chairman and CEO of Johnson & Johnson in its
European CSR report for 2000 (that's an invitation to seek them
out).
Listen and involve people in strange new ways
Why is this at seven? The first step to win trust is to listen.
If a company does not have its finger on the pulse of
stakeholder opinion, it doesn't have a feel for its corporate
health. And it's not just about good old fashioned quantitative
and qualitative research.
The truth is there are a bunch of new ways of engaging
customers. We are already seeing more engagement through digital
TV. And for the last few years I've been proposing businesses
use their access to market to move beyond employee volunteering
to customer volunteering for social causes. It's coming.
Manage risk including risks relating to trust
It's bizarre that the risk management or corporate audit
departments still focus on financial risk. New corporate
governance requirements in the UK and the new Company Law Review
know that directors have wider responsibilities. Manage risk
effectively and you can head off chunky financial risk like more
regulation and legislation, windfall taxes or consumer boycotts.
My own conviction is a new discipline will emerge called
integrity risk management. It's not difficult. It's applied
common sense.
Leverage social change
Businesses still tend to think good corporate responsibility is
about managing the footprint of their impact on society. But
real progress will be achieved when they use their muscle to
achieve genuine social change linked to their business. I see a
growth in campaigns which go beyond basic charitable
fund-raising or PR into new territory - working on a single
cause and campaigns which make a tangible social difference.
It's a difficult balancing act but it can be done in a way
which wins trust and leads to genuine social and business
benefit. There is nothing wrong with mutual benefit. And there
is nothing wrong with business playing a social role.
Invest in communications but make it a dialogue
There are wonderful hidden stories about the contribution of
business. Look at the recent social web sites of BT and Diageo.
There are many hidden gems in almost every business. But even
the best don't invest. They don't invest in communications. And
when they do they make several key mistakes:
"they sometimes forget that people are interested in people "
they sometimes forget that good communications are about a
dialogue not about an annual report " and they sometimes forget
that we are as interested in future plans as past performance
So: what is this?
So what are these ten steps? They don't add up to PR, corporate
responsibility, or branding. So what are we talking about here?
Is it a new concept? Could we call it sustainable branding or
trust marketing? I prefer business common sense.
And it isn't hair-brained wishful thinking. Many of these
actions are taking place today in businesses of many sizes.
Also, let's not imagine this is only relevant for companies.
This is as relevant for governments and not for profit
institutions. It's the way things are going.
Our choice is simple. We can create sustainable businesses
which are authentic, aim for balanced results, behave
responsibly and win trust because they deserve it, or we can we
can step boldly down a cul-de-sac of increased consumer
cynicism. Where do you want to be? In the wake or in the
vanguard?
John Drummond: Is Chief Executive of
Corporate
Culture, a communications and campaigning business based in
Liverpool and London. For more information on building customer
trust or delivering change for good, visit www.corporateculture.co.uk.
