18 March 2008

Authenticity is a must for corporations

So says a new report from the Arthur W. Page Society.

“Chief executives believe we're at one of those inflection points in business history when new technologies combine with new economic and societal conditions to change the game in fundamental ways,” says The Authentic Enterprise, a new report from the Arthur W. Page Society, an association for PR and corporate communications executives.

CEOs are predicting a rapid redefinition of accepted business beliefs. The report says, “Reactive approaches are no longer adequate.” Even the so-called “proactive” approaches of the last 20 years will be insufficient.

The authentic enterprise
Tom Nicholson, executive director, Arthur W. Page Society, says the report:

• identifies the rapidly changing context for global business and society;
• examines the drivers and implications of these shifts; and
• proposes a set of strategic options for CEOs and other C-suite executives.

“Specifically, the report examines how the digital networking revolution, globalization of the economy and stakeholder empowerment are creating both challenges and opportunities for corporations,” he says.

“Together, these forces have created a global playing field of unprecedented transparency and radically democratized access to information production, dissemination and consumption,” the report states.

Authenticity is vital
“Authenticity” will become ever more vital for successful corporations and their leaders. “It will be necessary to demonstrate authenticity in radically open environments,” the report says.

Trust now seems to be the new imperative. The report suggests this will be necessary at a broader societal level as well as at the enterprise level and lays out its call to action for leaders:

• define and activate core values in new ways;
• build and manage integrated, multi-stakeholder relationships;
• enable employees with new media skills and tools; and
• consciously build and manage trust in all dimensions.

The authentic enterprise
The CEO survey behind the report found that executives want their chief communication officers to take a more strategic and interactive role within the company’s senior leadership in driving these changes.

“But no single function will bear sole responsibility. The authentic enterprise requires a highly coordinated approach across marketing, HR, IT, legal, finance and other corporate functions, as well as line management. More than ever, leaders will need to hone their collaboration skills,” the report says.

Companies are becoming more transparent
“Among the implications for corporate communicators is the need not only to position, but also to define the corporation; not only to develop channels of communication, but also networks of relationships; and to shift from changing perceptions to changing realities,” Nicholson says.

Companies are becoming increasingly transparent. Product quality, for example is visible to customers, while company treatment of employees is visible across the corporation – and often to potential employees and public interest groups.

“Citizenship, environmental behavior, corporate governance standards, executive compensation practices and public policy recommendations are transparent to all,” the report says.

The report can be downloaded via the Arthur W. Page society website.

Have your say
21st century leaders are facing rapid changes brought about by increased globalization and societal shifts. According to this report, their ability to manage relationships successfully with customers, investors, partners, employees and other key audiences is now at stake – and corporations are increasingly engaging in fierce competition over their very identities.

What do these challenges mean for internal communicators? To what extent will internal communicators need to partner with colleagues in public relations, investor relations, corporate communication and marketing?

Are these artificial departmental distinctions a barrier to effectively supporting the organization and its leaders? How often are you required to move from your internal communication world into the external environment?

Discuss these issues with other comms practitioners by joining the Internal Comms Hub members' group on the Communicators' Network.

Other recommendations:
Creating and communicating values at BDO Stoy Hayward

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