Commentary

Talk the Walk

By Dale Hart January 6, 2011

Commentary_Dale

This article originally appeared in the February 2011 issue of Seattle magazine.

Companies large and small are embracing corporate social responsibility. But consumers, employees and investors want to know not only that companies are good corporate citizens, but also that they can back up their claimsthat they can be trusted. Any effort at spin, real or perceived, will be met with harsh criticism and serious damage to a companys brand.

Trust is hard to build, but in this context, its built on two simple principles: transparency and authenticity. Living up to those principles is easier said than done, but here are a few strategies.

Admit your shortcomings
It may sound counterintuitive, but companies that candidly acknowledge their shortcomings break down the negative expectations people have about corporate behavior. When a company is upfront about something that could be seen as a weakness, skeptical audiences are won over. Admitting faults is human, and consumers relate to that.

Starbucks is a good example: Of the 13 goals on its 2009 scorecard, four are graded needs improvement in big, bold type. The company earns points for honesty, and this frankness lends credibility to the areas receiving good marks. Since consumers and investors know Starbucks is forthright about shortcomings, they can trust that the company is honest about successes. Trust (or lack of it) affects how consumers receive everything else you say. If one area doesnt pass the sniff test, all other areas will be suspect.

Get real
Corporations often hide the fact that there is a group of living, breathing people behind the corporate banner. This approach creates emotional distance and kills authenticity. Here are a couple of ways to tear down that wall.

Include personal messages from top leaders. Authentic commitment to social responsibility comes from the top, and that commitment is more believable when there is a real person behind it. Alaska Air Group CEO Bill Ayers puts his face and signature behind his companys commitment to social responsibility, and consumers and shareholders recognize that hes put his reputation on the line.

Avoid anything that smacks of marketing. Avoid stock imagery in favor of real photos of real people. The same applies with words: Banish corporate-speak and shoot for a direct and personal tone (Starbucks annual report is virtually jargon-free). Step back from brand standards if they get in the way of the message.

Make content material and measurable
Meaningful reporting should communicate how social responsibility efforts affect key aspects of your business. For Alaska Air Group, emissions and fuel economy are central to business operations and have the greatest impact on the environment. Therefore, environmental reports make it clear that the companys fuel savings, 140 million gallons over the past four years, benefits the environment and represents a measurable and significant cost reduction.

Goals that cant be measured arent worth much. Hard facts are convincing, and businesses that state clear goals and show quantifiable progress earn and deserve more trust. When a company falls short, its an opportunity to outline concrete steps for addressing shortcomings.

Above all, clear reporting builds trust with the people who matter most. Investors want to know how social responsibility efforts affect the bottom line; business partners and employees want to know they work with a responsible company; and consumers expect businesses to be good corporate citizens. Transparent and authentic reporting of a companys corporate responsibility allows the business to recognize the benefits of those efforts and strengthen its reputation with consumers and partners.

Dale Hart spearheads brand, design and corporate social responsibility initiatives as partner at Seattle-based Methodologie, a communications strategy firm whose clients include Boeing, Group Health, Four Seasons and Gap Inc.

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