• What Influentials Want
  John Weckenmann
• Variances in Trust
  Rob Flaherty
• Moving the "Authentic Enterprise" Forward
  Tom Nicholson

What Influentials Want: The Three E's

Environment. Ethics. Employees.

These “three E's” are at the core of the gap between public expectations and perceived performance. The survey findings show that disparities in these areas are driving the deep levels of distrust among those who help shape public opinion. And the gaps are considerable.

When it comes to the environment, consumers expect companies to be good stewards. But among the 11 countries surveyed, doing right by the environment is the least-met corporate expectation. In the U.S., 64 percent of respondents say protecting the environment should be an important focus for companies but only 21 percent think companies are good environmental stewards. On ethics, consumers expect companies to follow ethical standards and to communicate honestly. In the U.S., 86 percent of respondents rank honesty as very important, yet only 22 percent believe CEOs are honest. Expectations related to employee issues scarcely fare better. Some 85 percent of U.S. respondents ranked “compensating employees fairly” as important, but only 26 percent think companies do. A full 77 percent believe that being an “open communicator with employees” is an important CEO trait – although only 22 percent believe CEOs are open with employees.

What are the implications for corporate public relations?

With low levels of trust associated with corporations and CEOs, firms need to build credibility around all corporate communications – particularly those coming from the CEO. Transparency is important, as is using the CEO in a broad range of communications, not just when reporting financial results or in times of crisis. The CEO should be active in employee communications, too.

Recognize that what's often at issue is the actual corporate behavior, not perceptions of behavior. Communicators need to be rigorous in how they assess and advise management on reputation issues – particularly around the three E's. Advocate for, and contribute meaningfully to, corporate responsibility initiatives that address those vulnerabilities.

And recognize regional differences. The study shows major regional variations in trust levels and expectations for corporate and CEO performance – including views on CEO pay and even the desirability of the CEO job. All of these factors have implications for managing global reputation programs and need to be factored into communications planning.