From McKinsey Quarterly:
“In a March 2009 McKinsey Quarterly survey of senior executives around the world, 85 and 72 percent of them, respectively, said that public trust in business and commitment to free markets had deteriorated. According to the 2009 Edelman Trust Barometer, those executives are reading the public mind correctly: 62 percent of respondents, across 20 countries, say that they “trust corporations less now than they did a year ago.”
The esteemed Quarterly seems obsessed with external constituencies, but does feature one sentence on internal communications, even as they slander PR with the word “spin:”
“Many companies, though, rely primarily on small, central corporate-affairs departments that can’t monitor or examine diverse reputational threats with sufficient sophistication. Moreover, traditional PR spin can’t deal with many NGO concerns, which must often be addressed by changing business operations and conducting two-way conversations. Managers of business units have a better position for spotting potential challenges but often fail to recognize their reputational significance. Internal communication about them may be inhibited by the absence of consistent methodologies for tracking and quantifying reputational risk…
“…they must try to influence stakeholders through techniques that go beyond traditional PR approaches, with an emphasis on two-way dialogue.”
Have these people never heard of two-way, symmetrical public relations? The Excellence Theory?
There is more:
“Reputations are built on a foundation not only of communications but also of deeds: stakeholders can see through PR that isn’t supported by real and consistent business activity.”
This is all presented as though it’s brand new — well, Grunig and Hunt called for symmetrical PR and ethical PR 25 years ago. Grrr.
“In this more complex world of influence strategy, no single kind of approach is likely to be sufficient to deal with fast-moving situations. Companies must instead initiate a multidisciplinary, cross-functional effort that can quickly identify reputational issues and plant responses in broader strategy, operations, and communications. The groups involved might include regulatory affairs, the general counsel, PR or corporate communications, marketing, corporate social responsibility, and investor relations.”
Jeepers, isn’t this exactly what top-shelf PR people have called for for years? Sheesh!
Read it for yourself (though, gosh, couldn’t they get a good editor?). (free, subscription req.)