Our Stakeholder Engagement Category
Many years ago, I helped to organize a slogan competition at both the Labour and Conservative party Conferences in Britain. It was fascinating to see what slogans the delegates came up with as they wandered past our stand, representing British advertising. Of course most of the slogans offered on both sides of the political fence were identical and extraordinarily unimaginative, indistinguishable from the official party slogans at the time.
You know the sort of thing: “Forward to a Bright Tomorrow”, “Leading the Future”, “Power to all the People”, “We Make the Tough Decisions”, and so on. I cannot even remember most of them, except one, the one that I decided was the best, as it happens, from a Labour Party Delegate. It was very simple, although it took me a while before my politically overworked and feverish mind could encompass its simplicity:
“Tax is the cost of living in a civilized society”.
How true – and how rarely stated – is this?
The idea behind it is as old and as simple as buttons but the implication is huge, opening up a new line of significance for the assessment of corporate reputation.
Powerful individuals and big firms should be assessed, and their reputation proportionately enhanced, on the overall contribution they make to the communities and the populations in which they operate and from which they benefit. But I am not talking about corporate social responsibility, with its family days, site exhibitions, charitable contributions, patronages and local sponsorships. Important and valuable as these are, they are not the real benchmark of a socially responsible company.
The payment of tax, whether national, regional or local, is the real bottom line of corporate responsibility. Many companies cannot be faulted on their voluntary and well publicized efforts in social responsibility, but the same companies employ lots of effort and people to maximize their tax breaks and minimize their returns and are most unwilling see their profits taxed more than the absolute minimum necessary. Some of the tax bills of leading US corporations are, quite frankly, breathtaking in the complexity of thought and application that led to such a small assessment.
And many large US corporations are on record as insisting that the US should balance its budget and cut social spending so that the national debt can be managed but they also contribute hugely to that debt (of $14.5 trillion) with their extraordinarily and cleverly low tax bills.
A range of potential legislation comes to mind, but perhaps the first necessary regulatory change is that governments should remove tax concessions for all those self-serving charitable donations, sponsorships, scholarships and corporate foundations and simply ask corporations to enter a straight-as-a-die tax return on the basis of its turnover. The bigger the better. The bigger the more responsible. The bigger the contribution, dare I say, the better the reputation. I can certainly see a relatively easy corporate reputation assessment becoming available..
So, to corporations the message is: stop being charitable, stop these tricky and clever negotiations with the tax authorities and just start paying tax, for tax is the cost of living in a civilised society. For everybody. Including companies.
Do governments need to have a good reputation? Reputation surveys are two a penny these days, but according to most such surveys on occupations in the USA or in Europe and probably elsewhere, politicians and government officials rank lower than used car salesmen.
This is not quite the same as saying that governments have a bad reputation, but clearly an appreciation of the reputation of government in general terms can be gained from some assessment of the politicians who aspire to government and the civil servants who work for it.
There is little to indicate that people have a consistent definition of what constitutes a good reputation. So, if a government is looking for a good reputation, what exactly should it be doing? My own first reaction would be to ensure that its hands are clean, that there is no corruption and no instances of unethical behavior in the actions of civil servants or their political masters. To be unfair about it, this has probably never happened in the entire history of the world.
But who actually cares if a government has a bad reputation if it is doing a good job for those who elected it (or even if they didn’t elect it?)

And where are we supposed to measure this reputation? If for example a government’s reputation is bad at international level among other governments, and if that same government is very popular at home, or if its actions and policies and approaches are approved of by its own people but not by those of other countries, then what is the reputation call?
And maybe the government wants to fulfill an international promise it made, for example at Rio 20 years ago. These actions may not go down well at home but they will be received well abroad. What is the reputation call on that?
For congressmen or other elected parliamentarians, it is always going to be difficult, because reputation is not well-defined as a quality, and is easily confused with popularity.
I think the answer may be that reputation is an irrelevant consideration for government, because the business of the government is not about reputation.
Government has a mandate, or in undemocratic countries at least a disputed claim, to govern the country and reputation has almost nothing to do with it when you consider the important requirements of legitimacy, transparency, popularity, and especially stakeholder selectivity.
In other words reputation means nothing until you clarify for whom the reputation assessment is necessary.
For government it is an entirely conditional word. Could it also be so for companies?
At the beginning of the AGM season here is a pertinent question.
How do you deal with people who hate your company? There are some organizations and even more individuals who dislike companies so much that their dislike can seem to border on an obsessive hatred, an inability to think rationally or with moderation. Or, at least, this is how it can appear to companies who are being challenged or even threatened.
Every company has them. They can be lonely losers, self-obsessed, wielding specific and narrowly targeted influence way beyond the real circumstances of their actual situation. They can be embittered ex-employees with a burning grievance or sense of having been swindled or unfairly dismissed. They can be powerful, influential, rich and externally obsessed, like Ralph Nader, millionaire, Lebanon-born American king of NGOs, six-time candidate for President of the United States, and hero of the campaign against the US car industry and General Motors in the 1960s and 1970s.
Admittedly most companies hardly ever bother with the first two categories, but the third category is a recognized problem, posing a real and running threat to corporate reputation. General Motors was certainly obsessed with Nader. It hired private detectives to tap his phones, check his bins and exhaustively investigate his past. It also hired prostitutes to trap him in compromising situations (unsuccessfully). It is far too long ago for him to be accused of being a secret Muslim.
Nader sued the company for invasion of privacy and settled the case early for $425,000, a very large amount in the 1960s, equivalent to nearly $10 million today.
Nader’s lawsuit against GM was ultimately decided by the New York Court of Appeals, whose opinion in the case expanded tort law to cover “overzealous surveillance.” Nader used the proceeds from the lawsuit to start the pro-consumer Center for Study of Responsive Law and funding his own substantial additional projects. The car industry’s own goal was complete. Indeed it was a hat-trick.
Nonetheless, forty and fifty years on, companies still try to counter-spy, to uncover private facts and more about individuals who appear to display a hostile approach to them. They still try to smear those they perceive to be their enemies, and in doing so forget their lines, their responsibilities and their own stakeholders’ expectations.
I have, unhappily, witnessed a few of these operations, and none of the actions that I have observed to this effect has ever worked without some form of countervailing blow-back. Significantly none of the actions were ever taken on the basis of a management consensus; most were minority actions taken with the private approval of very senior management.
Sometimes, particularly with regard to social media, it’s best not to engage vociferous and determined opponents substantively once it becomes clear that a debate is not being offered.
But some companies get stubborn and self-righteous. They want not only to be right but they want proof and a certificate of it. Deep down, they want their critics to make public grovelling apologies, little realizing that in this there is no difference between them and their tormentors. Eventually they lose credibility with their real customers and other stakeholders by being seen to beat the same drum over and over and enter a corporate trance like an addled hippy.

However, companies need to mix circumspection with passion. They need always to be responsive. They don’t have to turn the other cheek but they should not hide and should never fail to respond with a sense of the debate as a whole and not just the last thing said.
They need also to remain genuine (as long as they had been before) and to show continued understanding of the issue or the grievance.
But really none of these things can be done if you do not demonstrate a transparent commitment to talk directly and openly with external groups and any other individuals who are taking you to task. They may not reply satisfactorily but you have done your best and you will thus impress the people and institutions watching you who really matter.
Let’s be clear about what is happening, not just in the social media but in modern social life generally. Not to put too fine a point on it, the doors of perception are both swinging open and getting a lot more difficult to walk through.
As communication channels proliferate, people are passing more data but communicating less with each other, and they are reverting to a hand flutter as they pass each other instead of stopping to talk.
Where is this all going? It is very difficult to peer through the rolling gloaming but while our eyesight improves, our lines of sight become more encumbered, and get refracted. We are declaiming and talking more, and we are debating and listening less.
As the US Presidential elections loom in the shadow glitz of the future, and recent elections in Europe are analysed and digested, we are realizing that people are starting to believe nothing. They are assuming that everything they are told is dubious, unlikely or just counterfeit, a product of spin, misdirection and lies.
When a company claims that they are a people business, it is more than likely that they are quite the opposite. If you are told that customers come first, you will be put on hold for more than ten minutes or referred to a web site (how irritating is that?) If a company claims to be a thought leader, you can be sure that they are near the back of the elephant trail and waiting for the next idea to be prattled back down the line. The only certain outcome of this behavior is the graveyard.
Some tabloid newspapers have given up with the truth altogether because the truth doesn’t sell. Unfortunately this is true whether it is the media, second hand cars, third hand policies, corporate responsibility or snake oil. If something sells that does not necessarily give it value. It simply confirms a price.
But when people believe nothing, they will believe anything. One might be forgiven for suspecting that for this reason alone it is in the interest of all propagandists to keep people ignorant and suspicious, because like this they can be manipulated with the greatest of ease.
The way back is through genuine and committed communication, a communication that waits for an answer, that explains and illustrates, that is patient and painstaking.
For companies, the best way back to the foothills of corporate reputation would be the banning of all internal email messages within sites and a training course on how to use that dusty thing hidden by the books called a telephone.
But to be realistic, the indiscriminate use of email is adding to the growing communication problems that companies have with their stakeholders and especially with their employees.
Also, they should stop grabbing the tail of the company in front..
Apparently 675 million people around the world world are prepared to admit that they support Manchester United. This is ten times the population of the UK, and 150 times the population of the population of Manchester.
It is probably not the best example to take for the extraordinary brand loyalty that is provoked by football allegiance, as Manchester United is an unusual case, to say the least, in the width as well as the lack of profundity of the majority of their avowed support. Most of the 675 million are unlikely to be football fanatics in the “till I die” mold, but supportive enough, I suspect, to buy a lot of the merchandise on a regular basis. A majority of them don’t even know where Manchester is. I asked a Korean friend why he was wearing the colors of Manchester United. “Frank Lampard” he said.
Most English professional football clubs do not have a global following but the vast majority retain supporters mostly from around the locality of the club. But whomever they support, football fans are no normal consumers or customers. They are members of a tribe, usually from birth, by reason of their attachment or passion for the tribe and inordinate hostility to rivals. Characterization by colors, chanting, the threat of violence, collective social arrogance and the suspension of logic are the signs of a type of brand that many companies would, ahem, kill for.
But it’s not so simple. The fans make a big distinction between the ownership of their club and its soul. A crucial feature of the tribe is to pledge allegiance not to the management, least of all to the business management, but to the ‘soul’ of the club. This ‘soul’ may not necessarily include overt support for the club’s manager or indeed any of their players. Well mobilized fans can have an impact on the running of the club that shareholders of large companies could never have. And winning football games isn’t the mainspring of such support, otherwise no-one would support any clubs that did not win all the main competitions. But the link holds good for what the owners see as crucial: the income. Not just the gate money, but the TV rights, sponsorship, image rights, marketing rights, left rights, right rights, half rights and center rights.
In practice a tribal brand like that of a football club is not really a brand. But it does act like one in relation to the cash machines. But most brands would have been damaged beyond repair by a tenth of the issues that football clubs have.
Fans tolerate the sure knowledge that virtually all major football clubs are appallingly corrupt. Many have owners who are no more than wealthy international criminals from the dark corners of the world, grand thieves who cheapen and degrade the commercial products, take cash back-handers, make huge profit margines from the club’s commercial products, pay the players wages that make all of them millionaires within a couple of years and make City boardrooms blush with shame. They run their clubs without shame, using them as anything from milch-cow to plaything by cynically abusing the tribalist support they engender to inflate their wallets.
The best clubs in the land, including Chelsea, Manchester United, Manchester City and Liverpool, are all loss-making. It is no help also to observe that this is by no means unique to Britain. Or that, similar to many corporate brands, while the brand keeps the cash registers going throughout the world there is also a complete disconnect with reputation, since the reputation of most football clubs is down there with journalists, car salesmen and politicians.
And what of the players and their habits? Perhaps enough has been said already. A simple observation may suffice: Brand Beckham survives character Beckham. A true fan effectively turns a blind eye to his beloved. No brands, in short, have ever been abused so much and so regularly by the brand holders, with so little impact on the brand consumers. Bonkers Rovers till I die. Got it?
With thanks to Quentin Langley, Brandjack.











