The year 2023 will be remembered as the year of historic happenings around the world. From geopolitical tensions to global economic slowdown and from natural calamities to the rising influence of advanced technologies like Artificial Intelligence (AI), people experienced heightened uncertainty and anxiety. Brands too are feeling the heat of this changing global dynamics and facing the pressure to act upon the issues that concern people the most. In these testing times, conventional methods of communication and reputation management are not very effective in addressing the larger societal issues. The recently published WE Brand in Motion 2023 – “It’s Personal”, report reveals that the old rules of media relations, crisis communications and employee engagement are evolving. Hence, traditional approaches to communication and years-old corporate reputation strategies must evolve to address the concerns of new-aged generations.
New-age Corpcomm rules to strike a balance between Attention and Prioritisation
The WE Brand Motion 2023 report with India-specific findings states that it is time for communications leaders to embrace a new set of rules to respond to today’s accelerating demands of consumers and employees who are concerned with rising inflation, global climate crisis, and fear of job loss due to rising influence of AI. According to the report, 40% of Indian respondents think that brands should be talking more about how they are addressing the rising cost of living. Astonishingly, 99% of Indian respondents say strong employer-employee relations are key to a great corporate reputation. 60% of Indian respondents say responsible use of technology, including AI and customer data is quickly becoming a bigger factor in reputation. Brands who will take meaningful actions and offer practical solutions to address these concerns will see long-lasting positive effects on their corporate reputation and business success, the report states.
The report further reveals that transparency will be critical for brands to build trust among their audience. 8 out of 10 respondents say reputations can be improved if brands are transparent and authentic with the information. 73% of Indian respondents feel that brands can build trust by disseminating authentic data about their data that depicts their actions and results. 61% of respondents say that customers’ testimonials or reviews are one of the effective ways to build trust. 55% of respondents say that brand messaging (purpose statements) can be effective in building goodwill. The findings indicate that organisations will be required to make their communication consumer-centric and provide authentic information to their stakeholders.
Reprioritise to remain Relevant and build Trust in an increasingly Cynical world
Rising cost of living, global warming and job uncertainty are pushing brands to brainstorm on possible solutions to ease anxiety and cynicism among consumers and employees. The research shows that many brands know they need to make long-term commitments to solve bigger systemic issues, but they need a new set of rules to balance their attention and prioritisation. However, the impact of growing cynicism seems to have less impact in India. 6 in 10 Indian respondents believe that more than half of brands (55%) are delivering on their commitments. About 70% of Indian respondents want brands to clear their position during uncertain times. 4 out of 5 respondents agree that brands should be transparent in communicating to the public about their response to current and emerging issues in society. The brands that can navigate tough economic conditions by reassuring their commitment, ensuring transparency in disclosing data and admitting shortcomings will be viewed as bold and courageous, the report indicates.
Greater focus on Employer-employee relations to maintain Greater Reputation
The year 2023 will be known as the year of mass lay-offs worldwide. Several prominent global companies laid off thousands of employees citing pressures on earnings and uncertain market conditions. This led to trends like quiet quitting, coffee badging etc. Recently a statement from a veteran industry leader suggesting a 70-hour work week created uproar in the Indian corporate segment. On the other hand, the growing adoption of AI across job functions has created fear of job loss among employees. They want companies to clear their stand on the usage of AI-based technologies and safeguard their jobs. Employee advocacy is a prominent element of reputation building. Brands know the influence positive employee feedback can create for their image building. According to the WE Brand in Motion report, Internal communication and employee relations are going to be the essential components of the reputation management of organisations. Brands must consider employees as a core component of their corporate reputation, reviewing HR practices for potential risk areas and highlighting successes through proactive communications.
Post-COVID-19 pandemic, employees have become aware of their health and mental wellbeing. They expect organisations to respect work-life balance. They wish to associate with the companies which give importance to employee-centric policies. 50% of Indian respondents said a company with a strong corporate reputation can attract and retain top talent. 9 out of 10 respondents believe that employer-employee relations are among the essential characteristics for a brand to build and maintain reputation. 91% of them want companies to provide pay and benefits that allow people to take care of the needs of their families. 92% of respondents seek opportunities to learn and advance in their careers. 94% of Indian employees said that it matters to them if their employer is found to be underpaying certain staff. 46% of respondents say they would consider leaving a company if their employer is found to be underpaying certain staff. Brands can turn employee treatment into a reputation builder by proving that employees are a top priority. To accomplish this, raising average employee compensation to meet or exceed living wage for their market is the best way to prove their commitment to employees. Brands mustn’t shrink from their commitments when times are tough, the report states.
The WE Brand in Motion 2023 report highlights several critical issues that can influence brand messaging in upcoming years. Consumers and employees are becoming aware of their rights, and they expect brands to depict their stance on societal issues through meaningful actions and long-term policies. It will be interesting to see how brands leverage the power of communication to strengthen the ‘human’ aspects of their reputation-building strategies.
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