March 10, 2004
Reputation May Start at the Top
But Communicators are the Cornerstones
by Philip Anast
In the wake of recent corporate scandals and accounting irregularities, 69 percent of Americans no longer trust corporations. That’s according to Al Golin, founder of Golin/Harris International and author of, “Trust or Consequences,” a book about building creative trust strategies for global business leaders. The loss of trust and confidence is not surprising. Continuing corporate scandals and the emergence of Sarbanes-Oxley legislation have put a lot of pressure on reputation management and corporate governance.
Golin shared his findings during a recent roundtable discussion on managing reputation in the new era of corporate governance, sponsored by the Publicity Club of Chicago. Joining him on the panel were Edelman reputation management head Kevin Cook and the Security and Exchange Commission’s Senior Associate Regional Director for the Midwest, Robert Burson.
How do public relations professionals do a better job of managing the messages coming out of their executive suites? Here are some panel suggestions:
1. Look at the big picture – Don’t get caught up in spinning the story
2. Tell the truth, and don’t be misleading either
3. Address crises and problems quickly and completely
4. Broaden the dialogue with stakeholders
5. Help your CEOs lead, and map out the new climate they face
The challenge is difficult, if your CEO is reclusive or doesn’t care. But there are some CEOs blazing a formidable trail. Ralph Larson, chairman and CEO of Johnson & Johnson, spends 75 percent of his time fostering communication within and outside his company.
More often than not, however, communication professionals are playing a game of bridging the disconnects between CEO thinking and rightful action.
Edelman’s Cook, for example, cited his agency’s survey of 1,400 global CEOs on the largest threats they face running their businesses. Over-regulation was the number one issue; reputation-related risk tied for sixth; corporate governance finished 10th out of 11 categories. Moreover, there has been an unintended consequence of the stiffer regulatory climate: Sarbanes-Oxley is driving CEOs to their “foxholes” instead of compelling them to open up and bolster their communications.
What does this all mean for professional communicators? For one thing, they need to have a seat at the table with legal and financial heads. They also need to impress upon their executives the long-term value of working with the media in bad times as well as good. And they need to believe that reputations can be nurtured and repaired, even in times like these.
Philip Anast is an Account Manager for Tech Image Ltd.
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