Ipsos Corporate Reputation

The Life of a Modern Communicator

Corporate communicators need to demonstrate a deep commercial understanding of the business issues their organisations face – this gives them credibility around the leadership table.
They operate in fast-moving and complex environments and need to be able to learn and adapt quickly.
Building strong relationships and networks with influencers and decision-makers (both internally and externally) is essential if they are to get things done.

There is little doubt that in the last 20 years we have witnessed the evolution of corporate communications from a predominantly PR orientated function to a more strategic all-encompassing management discipline.

This is in no small part due to the rise in the concept of the corporate brand – the idea that a company and what it stands for can provide added equity to its products and services as well as helping it to build relationships with a wide range of important internal and external stakeholders.

This change has led to the convergence of corporate strategy with corporate communications as companies seek to articulate their overriding purpose in a clear and compelling way.

What are the skills required by the modern corporate communicator?

Reputation Council members are adamant that the corporate communications function (or, more broadly speaking, corporate affairs) needs to be part of the strategic planning process. In other words, effective communications strategies can only be developed when senior communicators have an in-depth understanding of the business issues their organisations face:

"IF YOU ARE DEFINING A POLICY OF A BUSINESS… YOU NEED TO UNDERSTAND THE BUSINESS MODEL."
"BUSINESS PARTNERING... AND WITHIN BUSINESS PARTNERING I WOULD LOOK AT HAVING A DEEP KNOWLEDGE OF THE BUSINESS YOU ARE WORKING WITH."
"IN MY VIEW THE BEST ORGANISATIONS ARE INCLUDING THEIR COMMUNICATIONS DIRECTORS OR CORPORATE AFFAIRS DIRECTORS IN THE CONVERSATIONS ABOUT KEY BUSINESS DECISIONS RIGHT AT THE BEGINNING."

However, many respondents also felt strongly that broader business knowledge was not the only priority for today’s communicator. So-called ‘soft skills’ including empathy, judgement, flexibility, sincerity and enthusiasm were seen as vitally important in gaining the respect and support of colleagues and external stakeholders alike:

"FIRST OF ALL AN OPEN MIND AND CURIOSITY ARE IMPORTANT THINGS; FLEXIBILITY AND THE ABILITY TO COPE WITH A RAPIDLY CHANGING ENVIRONMENT."
"FLEXIBILITY, ADAPTABILITY, CURIOSITY AND CONFIDENCE."
"AN EAGERNESS AND HUNGER TO UNDERSTAND WHAT THE BIG ISSUES ARE AND ABLE TO COMMUNICATE THEM IN SIMPLE TERMS… A GOOD DEGREE OF INTELLIGENCE, EMOTIONAL INTELLIGENCE… AN INQUISITIVE NATURE."
Ultimately it’s about being seen as a trusted advisor

There was a clear consensus amongst Council members that the ultimate goal for most communicators was to be seen by the CEO and leadership team as a trusted advisor. The reason being that when this status is achieved it provides a powerful ‘platform’ for the effective co-ordination of reputation management activities – both internally and externally:

"IN MY VIEW THE BEST ORGANISATIONS ARE INCLUDING THEIR COMMUNICATIONS DIRECTORS OR CORPORATE AFFAIRS DIRECTORS IN THE CONVERSATIONS ABOUT KEY BUSINESS DECISIONS RIGHT AT THE BEGINNING."
"THAT TRUSTED ADVISOR ROLE IS VERY IMPORTANT: IT IS IMPORTANT THAT YOU GIVE A CLEAR AND UNAMBIGUOUS STEER TO THE BOARD, THE EXECUTIVE COMMITTEE AND THE CHIEF EXECUTIVE."
"YOU NEED TO HAVE AN EAR AT THE TOP TABLE. I WOULDN’T NECESSARILY SAY YOU NEED TO HAVE A SEAT AT IT, BUT YOU DEFINITELY NEED AN EAR AT THE TOP TABLE, SO A STRONG RELATIONSHIP WITH THE CHIEF EXECUTIVE, FINANCE DIRECTOR AND KEY MEMBERS OF THE C-SUITE. IDEALLY YOU WANT TO HAVE CONTROL OVER DIFFERENT LEVERS WITHIN THE REPUTATION TOOL KIT."
There’s no such thing as an average working day

Although it may well be a claim made by many functions within the corporate environment, there is no doubt that most Council members wholeheartedly believe that the average working day does not exist for them. The predominant view being that the nature of the corporate communications function within a global organisation means “that most of my days do not end up where I thought they were going to end at all.”

Council members work an average 60-hour week (not including periodic monitoring of emails over the weekend, which 88% of Council members do). This covers activity within the head office environment but also conference calls with colleagues from markets in different time zones. To varying degrees, respondents divide their time between planning activities (strategy development, meetings with communication colleagues and other functions such as HR, campaign development, etc.) and responding to internal requests as well as unexpected external events (including potentially damaging issues):

"THERE IS NO AVERAGE DAY! EVERY DAY IS DIFFERENT AND THROWS UP DIFFERENT ISSUES, THE ABILITY TO MULTITASK AND SPIN A LOT OF PLATES AT THE SAME TIME AND THAT IS DRIVEN BY THIS HYPER-CONNECTIVITY OF EVERYTHING."
"I WORK WITH A PROACTIVE AND REACTIVE ROLE. THE PROACTIVE SIDE IS WHAT I DO TO MAKE THE COMPANY APPEAR SOMEWHERE, CONVEYING A MESSAGE. THE REACTIVE PART IS WHAT I DO WHEN SOMETHING APPEARS IN THE MEDIA, A REPUTATION CRISIS. THIS IS DIFFICULT BECAUSE IT IS UNEXPECTED. YOU NEED TO ACT AT A MOMENT’S NOTICE."
"THERE IS NO AVERAGE DAY, THAT’S THE EXCITING BIT ABOUT WORKING IN COMMUNICATIONS. NO DAY IS LIKE THE NEXT. A CHALLENGE BUT ALSO EXCITING."
Single biggest frustration

In many cases the size and complexity of the organisation they work for lies at the heart of many of the frustrations cited by Council members. Specific issues mentioned include the relatively slow pace at which change can be achieved, the difficulty of gaining access to the right people and the challenges in aligning messages throughout the organisation:

"THE MOST FRUSTRATING THING IS NOT BEING ABLE TO GET HOLD OF THE PEOPLE YOU WANT TO TALK TO, WHATEVER THE REASON. THEY MIGHT BE AVOIDING YOU OR THEY ARE TOO BUSY."
"TO CREATE THE GUIDELINES AND POLICIES NEEDED TO REACH OUR LONG-TERM GOALS IS DIFFICULT. IT IS A CHALLENGE TO MAKE SURE WE STICK TO OUR VISION AND THAT EVERYBODY IN OUR ORGANISATION UNDERSTANDS THE IMPORTANCE OF THIS."
"INTERNAL BUREAUCRACY – THE LENGTH OF TIME IT TAKES TO GET THINGS DONE."

Other frustrations include lack of resources and budget relative to the deliverables expected and lack of understanding or unrealistic expectations of the communications function – “expectation that communications can solve unsolvable problems”.

Final thoughts

It’s clear Council members believe the corporate communications function has never been more important to the long-term performance and health of the organisations they work for, although it is also clear that the function is highly scrutinised for evidence of its impact on business performance.

Indeed, there are some individuals within the corporate environment who are still to be convinced that it should sit alongside other support functions such as HR and Marketing.

However, what is not in doubt is the determination of Reputation Council members to maintain the momentum that has driven communications and reputation management higher up the corporate agenda.

Methodology: 127 interviews conducted with Reputation Council members between April and August 2017.

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The Reputation Council Report 2018: Full Report

Welcome to the latest briefing from the Ipsos Reputation Council.

This – our thirteenth sitting – has been the biggest and most international yet, involving 154 senior communicators from 20 countries.

As Paul Polman, CEO of Unilever, once said: “reputation has a habit of arriving on foot and departing on horseback”. In the past year, a welter of high-profile reputation scandals affecting businesses, their leaders and even whole industry sectors has, once again, focused our minds on the risks and rewards of this powerful but potentially volatile asset.

Some of these scandals have posed a genuine threat to companies’ continued survival or licence to operate. Others have fizzled out. In this edition, we examine how Reputation Council members distinguish between issues which might blow up into a genuine reputation crisis, and others that are just day-to-day turbulence. What indicators or early warning systems can communicators draw on, to help them build resilience?

The technology sector has been wrestling with some unprecedented reputation issues recently. Concerns around privacy, data leaks, advertising practices, AI and automation have come together to create the phenomenon of ‘techlash’. We talk to Council members about the implications for their own businesses and the lessons that communicators can learn from the way in which the technology sector is responding to techlash.

We’re also beginning to see greater scrutiny of the role that CEOs should play in external communications, against a backdrop of issues such as pay ratio reporting, gender inequality, shrinking CEO tenures and the ‘celebrity leader’. In this edition, we explore Council members’ playbook for CEO-led communications, and look at how the CCO can ensure that these communications build, rather than destroy, reputation value.

The opportunities and challenges that come with communicating in a global context is a theme we’ve examined in past editions. In this sitting, we ask Council members how they strike the right balance between global and local messaging and narratives, and how they keep a finger on the pulse of their reputation (or reputations) around the world.

Lastly, we’ve introduced some new, ‘quickfire’ sections, in which we analyse Council members’ views on a number of contentious, topical talking points, such as the death of CSR, the distraction posed by social media, the need to pick a side in a polarising society, and whether consumers will overlook poor corporate behaviour if the price is right

I hope you enjoy this edition of the Reputation Council report. Please do get in touch if you’d like to find out more about any of the issues covered or discuss how they might affect your own business.

Milorad Ajder
Global Service Line Leader
Corporate Reputation
milorad.ajder@ipsos.com

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Global Perspectives on Sector Reputations

Which industries are facing the greatest reputation challenges at the moment?

NORTH AMERICA

Media: 44%

Tech: 44%

Pharma: 31%

Despite lingering reputational issues still plaguing the financial services sector, the recent assault on media and tech means that these two industries are seen to be facing the greatest reputational challenges in North America. Each of these industries is named by 44% of Council members.

Beyond these two industries, pharmaceuticals now holds the third position in terms of reputational challenges at 31%. Cost and value continue to drive the conversation, and with the US government putting more of a spotlight on drug costs, these reputational challenges are likely to continue.

"[Media has] got a constant drumbeat of ‘fake news’, how do you overcome that?"
"These are self-inflicted wounds [in the tech industry] – companies are not thinking through the implications of their actions on their customers."
LATIN AMERICA

Construction: 50%

Energy: 41%

Mining: 34%

In Latin America, construction rises to the top as the industry facing the greatest reputational challenges this year (50%). A number of corruption charges have embroiled not only specific companies throughout the region but also politicians and civil servants.

Energy (41%) and mining (34%) round out the top three most challenged industries, predominantly due to environmental concerns and a perception that they bring limited benefits to the local markets.

"There is a public perception that mining pollutes, does not produce profits for the country, and is a group of companies that do not add local value but add value to those who extract the material and take it away."
EUROPE

Finance: 44%

Energy: 43%

Finance remains one of the industries facing the greatest reputational challenge in Europe (mentioned by 44% of Council members). In the words of one Council member, “this crisis has not been solved yet, given that the image reconstruction process appears to be very slow.”

Additional challenges for the financial services sector include cyber security concerns and emerging FinTech players challenging the traditional financial companies.

Energy also continues to face reputational challenges, cited by 43% of Council members in Europe. Issues continue to focus on environmental concerns, climate change, sustainability and consumer costs.

"When energy companies don’t immediately pass on price savings from a barrel of oil to a consumer or to a client, then the negative repercussions are there immediately."
ASIA PACIFIC

Finance: 88%

Energy: 71%

Media: 71%

Consistent with last year, the financial services industry continues to suffer reputational challenges in APAC, though mentions are higher this year at 88% (up from 73% in the last wave). Council members continue to cite the lingering effects of the financial crisis.

The energy sector is also mentioned more frequently than last year (71%), and while affordability and sustainability are still key reasons, government policy is now referenced far more frequently by Council members.

This year, media is also mentioned by 65% of Council members in APAC, with many attributing this to a changing media landscape as well as the resounding cry of ‘fake news’.

"The energy policy is a mess. Can’t separate from political environment."
"The Trump phenomenon and the constant hammering of ‘fake news’."

In full: how Reputation Council members around the world perceived each sector's reputation

Methodology: 154 interviews conducted with Reputation Council members between 25th June and 12th November 2018. Base: All Reputation Council members – Global (145), North America (16), Europe (80), Latin America (32), APAC (17).

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