Emerging Threats to Corporate Reputation:
Insights into the Shifting Landscape
OVERVIEW
America’s political environment has reached a fever pitch, creating an unmistakable dynamic for public affairs professionals tasked with managing and protecting the country’s most recognizable and valuable brands. Politics and reputation management are now inextricably linked, so Narrative Strategies commissioned a national survey to find out which issues present the biggest threat to companies and what they can do to successfully navigate them.
Nearly two-thirds (63%) of voters say they are willing to pay more for a product or service that has a good reputation, even as concerns over inflation and rising costs define their political and economic outlook. Keep reading for our key findings on protecting and enhancing corporate reputation and contact us at [email protected] to learn more.
KEY TAKEAWAYS
An overwhelmingly pessimistic attitude about the direction of the country, fueled in part by rising costs, has shifted voters’ focus away from companies’ stances on social issues and back to the basics of business. Americans want companies to provide good services at fair prices and treat their employees well. This change has recontextualized risks as broad support for workers grows and scrutiny of business ties with China mount. When managing corporate reputation for both external and internal purposes, the data from this survey suggests that companies should prioritize the following:
Get Back to the Basics
Corporate leaders should recognize that reputations are already under threat due to rising skepticism of big business among voters and lawmakers across the political spectrum. That skepticism has led to a rising tide of support for unions – and perception of corporate greed as one of the primary drivers of higher prices in the minds of many Americans. Business leaders are more frequently finding themselves at a disadvantage in the court of public opinion, underlining the need to succeed at the basics. Americans are looking for companies that focus on transparency, provide high-quality and affordable goods or services, and do right by the people they both employ and serve.
Pick a Lane
Strong corporate reputations should be built upon doing a few things and doing them well. Consumers reward traditional attributes like great customer service and high ethical standards but are less favorable toward companies that pursue broad, catch-all policies in an attempt to align with consumers’ values or political beliefs. Are there 1-2 issues that both you and your customer value? Champion those and leave the rest for others to handle.
Be Forthright About Foreign Investments
There’s good reason for the bipartisan concern in Washington when it comes to allying with China from a business perspective, and that matches the overwhelming concern from voters (58% believe China is a major threat). Scrutiny of business ties to China likely haven’t hit a fever pitch, with 75% of consumers believing that China plays a role in our supply chain problems and nearly half (49%) supporting companies moving operations out of the country. However, consumers understand that China is an important global trading partner and we cannot cut ourselves off from doing business there. Communicating what investments are doing for American workers and the American economy is paramount.
Communicate Your "Why"
Pessimism and economic headwinds define consumer sentiment, inviting skepticism about companies’ intentions. Companies must clearly communicate their positions, end goals, and benefit to consumers from the beginning – not after the backlash has already begun.
CONTINUE THE CONVERSATION
Reach out to [email protected] for a deeper dive into our data, strategic counsel, and other communications, reputation management, and public affairs support.
ABOUT NARRATIVE STRATEGIES
Narrative is a full-service strategic communications firm creatively solving today’s most demanding reputational and public affairs challenges at the convergence of business, media, and politics. Narrative is a premier partner for the world’s most influential brands by building upon our deep experience synthesizing complex issues and executing public affairs, media and public relations, crisis response, and other mission-critical initiatives. Our expertise spans industries and issue sets, including biopharmaceuticals, consumer products, energy, financial services, healthcare, manufacturing, tax, trade, technology, and more. We are powered by an award-winning team of senior strategists, detail-oriented practitioners, and imaginative creators who provide premium-level counsel and integrated service offerings that shape the ever-evolving communications landscape. To learn more, email [email protected].
