May 2003
Tough Times Call for Corporate Straight Talk
No company is immune to the effects of a weakened economy or the revelation of rampant corporate misconduct. In this age of consumer cynicism, how do you salvage—or protect—your brand?
By Celia Canfield
We're living in strange—and strangely difficult—times. As we struggle to find diplomatic solutions on one side of the world, we worry about national and personal security at home. A weak stock market and faltering economy makes the rise in unemployment all the more disquieting. And our confidence in corporate practices is at an all-time low. Those of us who have been in business for several decades have faced such individual challenges before, but none of us has had to overcome them all at once.
It may be tempting—and certainly less daunting—to think about tackling each problem methodically, one at a time. Ultimately, however, we must realize that many of these issues are simply beyond our control. As much as we may want to, we're not the ones making decisions about national security, the aftermath of war, or the current economic environment.
"In an age when corporations are either guilty or suspected of protecting profits at any cost, it takes a lot more to successfully manage a brand." Confidence in corporate America tumbles
Yet there's one area where business leaders can—and should—affect change: restoring the populace's faith in corporate America. I recently read an opinion piece by Ed Keller, CEO of Roper ASW, entitled "To Regain Trust, Faking It Won't Do" (Advertising Age, February 24, 2003). Keller documented today's loss of faith in corporate America, a concept and practice that's critical to establishing this nation as a world leader. According to recent research, confidence levels in U.S. business organizations have tumbled from 64% in July 2002 to a mere 50% today. Keller notes that in 30 years of polling, U.S. corporations have never been perceived so poorly. Clearly, he says, it's time for "companies to restore the public's trust through their branding efforts."
According to Keller, a brand based on the benefits of products and services is a "good strategy when people trust companies implicitly." In an age when corporations are either guilty or suspected of protecting profits at any cost, it takes a lot more to successfully manage a brand. Indeed, business executives must realize that to counter consumer cynicism, a company's communication program must work overtime.
Honest, articulate communication is essential
Reestablishing consumers' trust takes honest, direct communication. Customers know when they're being fed empty promises and marketing hype; they respond far better to content that's articulate, relevant, and meaningful. At Tendo, we understand that well-written, journalistic-style information packages can help a company forge customer confidence and loyalty. Businesses that deliver straightforward, targeted information effectively answer the question that every consumer asks: What is your company doing for me?
Restore or preserve your brand and image
Tendo has recently participated in several corporate projects designed to rebuild or extend their customers' trust. One company, Cisco Systems, realized the importance of communicating just how much it invests in the community. Cisco Systems believes that a company is only as strong as its local and global community. More importantly, it understands the brand value of sharing that message with its constituents.
I believe that honest, articulate, and direct information that is regularly communicated can help a company restore—and preserve—consumer faith in its business practices. The result? A strong, reliable brand that can withstand any combination of national or global challenges.
About the author:
Celia Canfield is the CEO and founding partner of Tendo Communications. email her with your search successes and failures.
