Writing in yesterday’s Financial Times, Michael Skapinker argues that the central problem with corporate responsibility is that what the public expects may not be what shareholders want.
What’s needed, he says, is for companies to better communicate the business value of responsible business – and to do that they need a compelling narrative.
So far so good. Gaining the understanding and support of shareholders is an important part of a successful responsible business strategy. They are, after all, key stakeholders. And there’s no shortage of messages to tell. There are the financial opportunities of growth into new markets, reaching new customers, cost savings, potential for new products, and so on, as well as the benefits of improved employee satisfaction, loyalty etc., let alone the potential for brand and reputation strengthening and differentiation.
But too often the importance of that narrative is forgotten or lost. Whilst exploring ways to get shareholders on board, Michael Skapinker gets his teeth into General Electric’s corporate citizenship report and website, lamenting the lack of storytelling to engage the reader. Why, he asks, do they tell us about supporting girls through school in Kenya without giving case studies?
Having an engaging narrative is an important part of communications, but it’s not the golden key to getting shareholders on board!
If we’re thinking about General Electric, how about talking of the 17% increase in brand value as a result of their sustainable venture ecomagination? Or the fact that ecomagination’s revenue is set to grow at twice the rate of total company revenue over the next five years, having generated $18 billion in the tough climate of 2009?
Skapinker is right that responsibility communications benefit from a good narrative. But that narrative needs the richness of business value as well as heart-warming stories, to get all stakeholders on board.
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