Two pieces of research caught my attention last week. The Wall Street Journal highlighted the growing influence of Corporate Affairs and Communications leaders in the C-Suite, while Deloitte’s latest research found that reputation management remains the top priority for Corporate Affairs functions, with nearly three-quarters of leaders now sitting on executive committees.
Deloitte has also previously published findings that 63% of a company’s market value is now attributed to reputation and 41% of companies that experience a major negative reputational event – report loss of brand value and revenue. The World Economic Forum also outlined that companies with strong reputations outperform competitors by up to 2.5 x in market value!
Firstly, before going any further I want to speak directly to the SMEs, founders and smaller businesses who might be about to ‘leave the chat’ as they assume this doesn’t apply to them and/or they can’t afford Corporate Affairs. There are affordable options and having someone you can call, even just for quick advice, is advisable (especially based on the findings above) – think consultant or Fractional Corporate Affairs Director.
Regardless of scale, almost every organisation will eventually face a situation where they need some level of Corporate Affairs expertise:
- a reputational risk
- difficult stakeholder
- regulatory challenges
- litigation
- a serious incident
- negative media or social media attention
- vexatious complaint/review
- leadership issues
- major organisational change
- unhappy customers/shareholders/employees
- or even just informing customers of fee or price increases.
Going back to the findings of the research, I think the message is clear: Communications is no longer about purely being judged on media coverage alone. It is being judged on business outcomes, stakeholder trust, risk management, organisational resilience and effective management of volatility. Finally!
Frankly, those of us who have spent years working in reputation management and corporate affairs could have told you that already. But it’s always nice to be validated, and it is very refreshing to hear that we are making headway in getting a permanent and strategic seat at the table. Because in my experience, it’s been something we have had to fight for.
A few years ago, there seemed to be a frustrating increase in organisations downgrading and positioning comms too far away from C/Suite and executive decision-making, reducing strategic access, presence and influence and pushing them under directors or HODs. This happened across both the commercial and public sector from what I could see and saw me frequently arguing that companies were exposing themselves to unnecessary risk. As a result, organisations often found themselves making decisions without a complete understanding of stakeholder, reputational and operational risk.
It’s also striking how often communications and marketing are among the first areas targeted during cost-saving exercises, despite being critical to growth, reputation and resilience, but I digress. Back to the findings.
Fortunately, the growing influence of Corporate Affairs functions reflects a more recent recognition that reputation, risk and stakeholder trust are strategic issues, not tactical ones. Comms shouldn’t just be a support function. If senior leaders are smart, they don’t just reduce comms to metrics, monitoring, reporting, social media fads, or ‘could you just’ moments (“could you just whip up a press release/make this go away/get this to go viral”).
The best communications professionals aren’t simply storytellers. They are risk spotters, strategic advisers, problem solvers, professional worriers and, often, an organisation’s conscience. I always say that good comms leaders are the ones asking the uncomfortable questions and are often seen as difficult, pokey or challenging, and that’s exactly what we should be!
Done well, you become the trusted voice in the room. The one who sees the 8pm Sunday-night call from the media at 10am on a Tuesday morning, two months before it happens. The one who joins the dots, rings the alarm bells early and helps leaders navigate issues before they escalate.
That’s why communications leaders are far more likely to help secure a positive outcome when they’re involved at the start of an issue, rather than being brought in at crisis point to pick up the pieces or implement ad-hoc marketing whims or fad based social media content. To do that, they need to be in the room, part of decision-making, culture shaping and strategic planning. Asking questions, spotting patterns, challenging assumptions, sense-checking ideas, acting as a critical friend and advising on stakeholder expectations, likely outcomes and both internal and external optics.
In a recent blog following the PRCA’s publication of its new definition of PR, I argued that strategic PR is fundamentally about prevention. It’s not about skirting scrutiny or suppressing criticism. Quite the opposite. It’s about helping organisations avoid preventable problems through good leadership, ethical decision-making and healthy organisational cultures. And when scrutiny does come, ensuring it is informed, fair, proportionate and rooted in fact rather than speculation or sensation. In my experience, that’s where Corporate Affairs and strategic communications deliver great value: not simply managing crises, but helping prevent them in the first place.
But…good corporate affairs and PR aren’t just about preventing issues and protecting organisations when things go wrong. It’s about helping them build trust, strengthen relationships, support growth and create opportunities. Good comms leaders are also the ones who can spot opportunity, see the long-game and set out strategic plans to build solid PR foundations that drive sustained growth, rather than just churning out glossy but essentially ineffective social media content, that creates one-off sales but doesn’t achieve brand loyalty.
Over more than 20 years, I’ve advised organisations through:
- criminal investigations
- litigation
- health and safety incidents
- major operational failures
- market shocks
- major organisational change
- profit loss
- reputational challenges
- public scrutiny
- stakeholder crises
- terrorism and national emergencies
I’ve worked in commercial environments from luxury hospitality, music and entertainment, to manufacturing and global defence, and within the public sector, for a significant period within policing where the consequences of getting communications wrong were measured not just in headlines, but in public confidence, operational effectiveness and public safety. The common thread is helping organisations navigate scrutiny, uncertainty and risk while maintaining trust.
The reality is that most smaller organisations won’t need a full-time Corporate Affairs Director five days a week. But they do need one when they’re making difficult decisions, navigating risk, preparing for scrutiny or dealing with issues that could impact reputation, trust or growth. Especially in high-risk sectors – education, law, engineering, hospitality, service provision, tech, manufacturing etc.
The organisations that thrive over the next decade will be the ones that understand that trust, reputation and preparedness are strategic assets worth investing in but that doesn’t just mean having large comms teams. It’s about having a good network and investing in it. Because communications isn’t just about telling your story, it’s about managing volatility and in today’s world volatility isn’t the exception, it’s the standard operating environment.
I offer strategic, experienced, calm and confidential counsel (and hands-on delivery) on corporate affairs, crisis comms and PR – either on a retained consultancy basis or I can act as a Fractional Corporate Affairs Director.
I can work within any budget scale, to make sure this support is accessible, affordable and effective, whether you are an SME, charity or larger enterprise.
Please get in touch to discuss.
Miriam
Director – Mulberry Brown Communications Ltd
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