In 2010, businesses will come under pressure like never before. COP15 has unleashed a barrage of debate about the environment, encompassing scientific claims, political pressure, economic arguments, challenges and promises. The media, governments, NGOs and expert consumers will be demanding evidence of CSR principles.
In fact, the easiest target for politicians and regulators will be big business. If a business wishes to portray itself as a responsible citizen, it shouldn’t wait to see what happens when pressure comes bearing down at thunderous speed. It should act now, and move ahead of compliance.
With that goes the fact that consumers’ trust in business is also fading at a frightening rate, which is having a negative impact on the bottom line. There could be a major reappraisal of business’ CSR commitments by everyone from employees to unions, governments, consumers and pressure groups. Big businesses could prove to be the ideal scapegoat for the lack of action on environmental issues.
In the post-COP15 era two big shifts need to be taken into account. Firstly, the conversation has changed from a general, large-scale discussion of what has to change to one that centres on making a profit while behaving in a way that sustains the environment. The second major trend is the growing realisation that CEOs generally perceive one-off, feel-good CSR / environmental projects as a cost. Instead, the focus should be on how sustainable business practices can save money and improve the bottom line.
To demonstrate that companies are embracing sustainability it must be hard wired into the business. As a result, corporate communication teams are likely to be spending much more time with R&D and finance teams, looking at supply chains and working with partners. The relationship with NGOs must shift from the 80s model. Now NGOs should become serious business partners who can help you achieve sustainable objectives and advise on making responsible business decisions.
It will be crucial to understand the cycles, shifts and changes in influences in the global conversation between those three major pressure points of business and money, geo-politics, and the environment and science. Companies will need to recognize their own timelines in terms of how they reinvent their business and products to be more sustainable, and to anticipate the moments when they are most likely to come under pressure. It would be wise only to promote or talk about achievements when they are based on hard, measurable evidence.
As a matter of fact, comms directors should be ready to experience the same type of pressure felt by compliance officers in the world of financial services. It means to be aligned with the organisation’s lawyer and the finance director, and being on the board. It also means helping the organisation to monitor, adapt and shape itself around a new swathe of regulation, and ensuring that communications are moving at the same pace as all these developments.
The global discussion is now so broad and quick-moving that the old style approach of trying to monitor and understand the conversation is irrelevant. Organisations need to prove continuously that all the little initiatives are adding up to a move in the right direction, which ultimately starts to rebuild consumers’ trust. Then, instead of being an easy target for politicians, scientists and NGOs, businesses can get back on the front foot and start to have more of an equal engagement in this global conversation.
2010 is the year when corporate communications directors can decide how and where they will invest in sustainable activities. If you can take advantage of this opportunity and hard wire sustainability into your business, you are much more likely to help your organisation maintain its bottom line and also maintain the momentum of communications and reputation in the harsh influencer and media environment of 2010 onwards post COP15.
