People are interested in the stories behind the businesses or brands they choose to support. Like brands, corporate narratives shape perceptions, build trust, and foster loyalty. Connecting means meeting their expectations, a responsibility that businesses must uphold to provide certainty and positivity in challenging times.
Corporate narratives are expected to address the big picture. The previous article in this series examined strategies for communicating the company’s purpose, values, and culture. This article dives deep into the imperative of stakeholder partnerships and governance in business.
The word ‘externality’ has entered the everyday lexicon. The public cares about business’s impact on the economy, society, and the environment. People know companies’ actions ultimately affect them.
Corporate communication about the impact on stakeholders must address what’s material to them. If it sounds obvious, it’s surprisingly uncommon. Outlining how the company’s directors consider the effects on stakeholders during discussions and decision-making can be a good idea. Describing how the company’s leadership ensures fairness between stakeholders, including but not limited to the workforce, community, and the environment, goes a long way.
Businesses need people and entities to hold a stake in it. Corporate communication typically focuses on what’s in it for the holders. Still, a meaningful and transparent approach to this area presents a partnership or contract and, therefore, includes stakeholders’ impact on the company.
Explaining the various factors influencing a corporation’s interests helps companies be better
understood and appreciated. Therefore, it’s good practice to illustrate how engagement with stakeholders affects stewardship and to detail the outcomes of such engagement. It is critical to describe how considering the interests of stakeholders and the long-term impact of the company’s activities on the community and environment may significantly influence the company’s long-term success.
Stakeholder engagement is vital for establishing and nurturing relationships that generate and protect value. It entails employing diverse methods to interact with parties, comprehend their concerns, and prioritise their issues. Good corporate communication underlines how fostering strong business relationships with suppliers, customers, and other stakeholders is crucial for the company’s success and longevity. Often, this is equivalent to describing the company’s business model.
You know it to be true: people distrust faceless corporations. Powerful, anonymous Business seems counter to valued societal qualities such as authenticity, good governance, and accountability.
Addressing this notion involves communicating the leadership team’s experience, skills, roles, and responsibilities. Effective corporate communication emphasises how these aspects work together to provide guidance. Explain how diversity within the leadership, including gender and ethnicity, contributes to improved governance. Complete the circle by describing the succession criteria and plans for future leadership positions.
Stakeholders thoroughly investigate companies’ inner workings. It is wise to take a proactive approach to addressing leadership’s performance, accountability, and incentives. The goal is to show how directors prioritise upholding a reputation for high standards of business conduct and ensuring that incentives and rewards align with the company’s purpose and values.
Company policies matter, but they don’t make themselves. Many examine how compensation policies and practices support the business strategy and contribute to long-term, sustainable success. Therefore, it is vital to clearly outline the impact and results of engaging with stakeholders, such as shareholders and the workforce, on the policies.
Stakeholders expect businesses to explain how governance contributes to the success of the business model and the achievement of the Greater Good. Yet, or maybe because of this, this area of corporate communication is far too often patronising hot air. Evidencing the nitty-gritty, such as how directors receive accurate, timely, and precise information and how leadership regularly reviews the company’s risk management and internal control framework, helps communicate governance effectiveness and controls. It makes it real and feels authentic.
At Gather, we understand that brands, websites, and annual reports are often not only
the repository of the corporate narrative but also the vehicle to develop it. Through these projects and channels, firms can help build positive reputations and support the company’s success. Get in touch to discuss how we can help you.
If you’d like to discuss this, or any other subject, please get in touch with Richard Costa, Consultancy Director, at richardc@gather.london
We’d love to know what you think.