It has been a month of the surreal, with companies and brands drawn into the maelstrom of politics and social outrage. The revelation of payments by AT&T and Novartis to President Trump’s lawyer, Michael Cohen, for “special access”; the inexplicable arrest of two African American men in a Starbucks store in Philadelphia; and the dramatic interruption of global trading patterns with a looming trade war between the U.S. and China as well as possible retaliatory tariffs from the EU and Japan on U.S. goods are among the unforeseen events.
The media eco-system has been permanently altered, with outrage and innuendo overwhelming expertise and rational discourse. Speed and social sensibility outrank thoughtful and curated. The CEO is compelled to speak up on societal issues by employees and consumers looking for stability and leadership. Information goes direct to end-user, amplified or rejected by advocates with their own news agenda.
In this fraught environment, the Chief Communications Officer has never been more essential. Our presumptions as communicators are challenged and the rules of engagement are bent. I offer these Chief Change Officers the following suggestions:
- Take Action to Rebuild Trust — In the wake of the Philadelphia controversy, the Starbucks team changed the rules for bathroom use and closed the stores for a half day on May 29 for a re-training of partners on proper interaction with customers.
- Step Up on Social Issues — The Edelman Trust Barometer found that 84 percent of people expect CEOs to inform conversations and policy debates on pressing issues such as automation, the future of jobs and globalization. But only 28 percent believe that the CEO is educating the public on these issues. Over half (56 percent) say they have no respect for CEOs who remain silent.
- Lead on Transparency — In the wake of the Cohen revelations, AT&T terminated its head of public affairs and Novartis asked its general counsel to retire early. Trust will be won or lost in the arena, not in the smoke-filled room. There needs to be a higher standard for lobbying; replace influence-peddling with a commitment to educate stakeholders as well as advocate on business-critical issues.
- Engage the Employee — Seventy-one percent of respondents in the Edelman Trust Barometer told us they are more likely to believe what they hear from employees over the CEO. The employees want to hear from the CEO directly; a spontaneous performance is rated substantially higher than a carefully crafted speech, with numbers as high as 80 percent trust in a direct presentation in France and Germany. CCOs should coach their Chief Executives to be visible, authentic and engaged with their greatest asset, the employee.
- Deploy Earned Persuasion — The turning point for United a year ago was a five-minute interview of CEO Oscar Munoz on the Today Show. While the media model is under assault, we know people’s trust in journalists is up 12 points from the previous year. Journalism is growing in its importance in informing and shaping consumer opinion.
- Collaborate with CMO — The recent double page Wall Street Journal ad and broadcast spot on regaining trust for Wells Fargo is the culmination of an 18-month partnership between CMO and CCO. The emphasis is on substantive operational changes and the CMO-led campaign benefits from the combination of earned and PR content. It is also a recognition that marketing can only succeed once the public is persuaded of system overhaul.
The CCO must be given the resources and the remit to enable the business and the corporate brand to succeed in this new world. There is no more essential element of corporate strategy than to win the battle for truth in a world lacking facts and rational discourse. As partners to the CCO, those of us in the agency world are committed to giving you more senior teams, a broad perspective from the outside world and honesty in the heat of battle. It is prime time every day; it is on us to deliver.
Richard Edelman is president and CEO.
