Public Relations in the New Normal
Millennials demand legitimate engagement by corporations on environmental and social issues. Nearly 90% polled in 2020 thought corporations have a responsibility to actively use their business to address world challenges such as climate change, DEI (diversity, equity, inclusion), and growing wealth inequalities.
As investors around the world call for greater corporate action and transparency on addressing ESG issues, the risks of greenwashing have never been greater for those on the front lines. Whether you’re communicating with the public, investors, or regulators, the messenger faces an increasingly complex challenge. In addition to the Biden administration creating an ESG task force to clamp down on inaccurate reporting and greenwashing, NGO watch dogs are increasingly calling “BS” on the greatest perpetrators of greenwashing. One study from an international consumer protection group called ICEPN found as many as 40% of company claims about sustainability were misleading or overstate their impact on the environment.” Now where does that leave the PR and Communication leaders responsible for meeting these increasing calls for corporate transparency? What risks must they be aware of and how can they overcome them?
At Calibrate Partners, we actively partner with PR teams and Communication firms to help them and their clients navigate this new normal. After wrestling with an interesting and invigorating year of client challenges, these are the most critical issues facing PR leaders in the new normal and key tactics you can deploy to address them today:
#1 Greenwashing Accusations are Imminent
A decade ago, a company could meet its “license to operate” requirements by buying carbon credits, donating to local nonprofits, and having employee volunteering days. In 2021, stakeholder expectations have shifted from corporations “doing less bad” on environmental and social issues to actively solving them on a daily basis. This means that any one-off effort peripheral to the daily operations of the business is not only a resource suck but also increases the probability of greenwashing accusations. As a PR professional, you may not have direct influence over the enterprise ESG strategy yet there are critical communication tactics you can deploy to reduce skepticism and increase trust and engagement.
What You Can Do About It
When communicating with external stakeholders, make sure your message is focused on what ESG issues present material risk and opportunities to the business and its key stakeholders, and what actions the company is specifically taking to address them. The impact of these actions on the local community and society at large also demonstrates corporate understanding and acknowledgement of how they can support the betterment of society through addressing the issue at hand. As a PR leader, make sure you brush up on the technical nuances of the issue and your company’s actions in addressing them as general sustainability claims without any supporting detail can sound of the same greenwashing alarms you’re trying to avoid.
#2 The Darkside of Corporate Purpose
In August 2019, the US Business Roundtable came out with the historic declaration that the purpose of a corporation must shift from shareholder primacy to stakeholder primacy. Their declaration read, “it is more critical than ever that businesses in the 21st century are focused on generating long-term value for all stakeholders and addressing the challenges we face, which will result in shared prosperity and sustainability for both business and society.” Now two years later after this historic announcement from America’s most powerful business association, wealth inequality and the devastating impacts of climate change have only increased. Corporate purpose statements like “do good,” “be the best partner to our customers and communities,” or “taking care of you so you can be your best” not only sound ridiculous but also have little brand value. It’s safe to say these types of corporate purpose statements could be from any company, in any industry, anywhere. So how can you ensure that your corporate purpose is credible, authentic, and recognizable to the stakeholders you’re trying to engage?
What You Can Do About It
Use the environmental and social benefits of your products and services as the foundation of your corporate purpose. This ensures your purpose is recognizable to the industry, specific to the brand, and a clear result of your ESG strategy. For example, if you’re in the food and beverage industry, your corporate purpose should have some inherent connection to solving hunger or addressing food deserts or malnutrition. At the end of the day, your corporate purpose should reflect the intent, actions, and results of your ESG strategy. By aligning your corporate purpose statement with the key issues engaged and outcomes delivered from your ESG efforts, you will nip any greenwashing whispers before they become outright accusations.
#3 Aligning the Say-Do Ratio from the Boardroom to the Streets
Corporate ESG commitments have far outweighed action and tangible progress. When long-term commitments are made behind closed doors of the Boardroom, implementation on the ground typically struggles and communication challenges always arise. How do you connect the dots between your enterprise commitments and local actions on the ground? How can you support the Board’s aspirations while ensuring your brand isn’t “cancelled” by stakeholders for slow implementation? How can you maintain trust on the ground when the Board’s ambitions have not been met with enough action?
What You Can Do About It
Do your best to ensure all corporate commitments are aligned thematically with action on the ground - Your events, franchisee locations, store openings, and local events all reinforce the same core messaging and optics that speak to your specific ESG strategy and associated corporate purpose. Take an inventory of all PR efforts to ensure they speak to your key material issues, allude to your enterprise strategy, and are in alignment with your corporation’s long-term commitments. Whether it be an ESG report or local PR release, make sure your communications include the following components:
Your material issues and the associated risks and opportunities they present to the business and key stakeholder groups,
Your corporate policy on each issue
Your long-term goal for each issue
The strategy you will implement to achieve your goal(s)
And how you will report on your progress using a recognized disclosure framework
The New Normal of Business, For All Businesses
Whether you’re a multi-national with operations around the world or a start-up founder beginning to scale, ESG communications are considered the “last mile” for cultivating trust and broad stakeholder support for your efforts. Align your corporate purpose with the technical elements of your ESG strategy and you will create an authentic and impactful connection with your stakeholders.
About Calibrate Partners
We partner with organizations to design, implement, and communicate their ESG performance. From ESG reports to climate risk disclosures, we help companies communicate their efforts to a broad range of stakeholder groups and remain compliant with emerging reporting regulations. Whether it be an ESG update or developing your corporate purpose, we help organizations bridge the technical and communications divide to garner broader support with those that matter most.
For more information or a free consultation, please visit Calibratepartners.io or contact us at: Noah@calibratepartners.io.
