10 May 2016
A peculiar thing happened during the tail end of the 20th century. It became okay to mislead people.
Throughout public and private life, from the front benches of the UK parliament, to the boardrooms of fortune 500 companies, the notion that unsavoury, unethical and immoral behaviour could be tolerated (and in some extreme cases rewarded) as long as you could spin it, became the norm.
And for a while at least, we bought it.
But by the 2000’s the veneer had begun to crack. From third way politics to the economic miracle of financial market deregulation, the world began to think; if it looks too good to be true, it must be.
Lehman Brothers’ collapse in 2008 and the ensuing global financial crisis finally sounded the death knell for spin. As the lies unravelled and the gravity of misconduct, poor judgement and disregard for social capital became apparent, we moved into a new era of cynicism.
What began as the public shaming of bankers and politicians quickly escalated to a mistrust pandemic. Today, cynicism is people’s default position.
You only need to look at the public outcry over UK Prime Minister David Cameron’s recent attempt to on his links to a Panama investment fund, to see it just doesn’t work.
Under the media spotlight and with mounting public pressure on social media, the Conservative leader ended up red-faced and apologetic – finally revealing he’d profited from the arrangement before becoming PM – after three days of stalling and four partial statements.
So where does this leave the modern organisation? How can any leader hope to stand in the face of the rising tide of public scorn?
Organisations have to focus on strategies that can help them build reputation and develop positive, two-way relationships with all stakeholders during the good times, rather than solely devote their attentions to burying the bad news when things go wrong.
Good PR isn’t about papering over the cracks any more. In today’s transparent, interconnected and highly scrutinised world, it has to be about good business.
Sociologist, Richard Sennett, offers an interesting explanation in his book, The Craftsman.
In our knowledge economy where ‘fake it ‘til you make it’ has sadly become an acceptable path to success, he says it’s very easy to stand out just by living by the “…enduring, basic human impulse, the desire to do a job well for its own sake.”
As VW found out to its cost during its recent emissions scandal, even the most well-resourced, well-executed brand development strategy will only count if it’s authentic.
Organisations have to start waking up to the fact their obligations lie beyond shareholders to wider society.
If you can get the basics right and do good, honest, work when everything is going well, your customers, employees and communities will stick with you when things don’t.
Reputation doesn’t happen overnight. It has to be built expertly, consistently and positively over time. It’s a craft.
Professor Chris Carter is Chair in Strategy and Organisation at University of Edinburgh Business School.
Together with communications expert, , he will lead a two-day masterclass on Strategic Communications exploring today’s reputational environment on 17 and 18 May.