In 2007, Tiger Brands’ chief executive, Nick Dennis, fell on his proverbial sword and took the blame for the bread price-fixing scandal that shook South Africa. He was not involved in the collusion, but he took responsibility for the fact that it had taken place under his leadership and left the company. It was a bold move and potentially saved the organisation’s reputation.
Over the past few years there has been one reputational disaster after another Enron, News of the World, African Bank. These tumbling corporate facades reveal fraud, corruption and ethical failings that consumers were no longer willing to tolerate. The power is shifting from the hands of big business to those of the consumer, the traditional pyramid of the elite communicating to the masses inverted as the masses communicate their messages to the elite.
Recently Woolworths experienced an outcry around its milk products when activist group Grass Consumer Action accused it of not producing organic milk as promised by the labels on its bottles. Woolworths came back with good answers to the questions posed by the activists, but customers were quick to lash out, calling the company to account and demanding honesty.
“The age we live in is extremely transparent — if you are making claims that are perceived as disingenuous, you could bring down the wrath of the community,” says Estelle Nagel, head of PR for Gumtree South Africa. “Your narrative needs to be backed up by a genuine culture, values and achievements and you need to make your community members the heroes, turning them into ambassadors.”
Kevin Welman, managing director of FleishmanHillard SA agrees: “In a world of social media where every action, every statement, is captured and indexed online, it is vitally important that a brand walks its own talk. It’s critical for a brand to be authentic in its own actions. If the MD of a green brand drives a gas guzzling car, is the brand acting in an authentic manner? I think not, and the brand will ultimately suffer.”
Consumers are not as quick to trust in companies as they once were and brands need to understand how to build their reputations and engage with consumers and stakeholders in far more effective ways, in a much more sceptical climate. The organisation has to filter its messages throughout the organisation to ensure that brand values are demonstrated consistently by all stakeholders and in all messaging to ensure that consumer trust and loyalty are earned.
“This can be achieved through an unrelenting intent for core values to be upheld by every, single person in the business, from bottom to top, in every action, deed and behaviour,” says Ross Kennedy, CEO of Africa Albida Tourism. “Training, standard procedures, reviews, discipline and recognition all endorse this process.”
As Kennedy points out, it is not just consumers who need to be reassured, it is also employees. The people that make up the organisation are essential to the delivery of a brand’s message and must believe that what they are preaching is the truth and be given the tools to make it happen.
“A company’s main goal should be to deliver on its brand promise, and in this way stakeholders, end users and the internal workforce all win and can access the benefits,” says Rianette Leibowitz, CEO of Owitz Communications. “Connect with employees’ values and ensure they see the positive impact of their work and how it can change the world.”
Donna Rachelson, founder of Brand & Marketing YOU, adds: “Your employees are, in essence, your key target market and if they are empowered, educated and passionate about your brand, then there is no doubt that your customers will feel the same way.”
Creating brand ambassadors that help to build the company’s reputation and ensure that the message is carried in all words and deeds starts with training, understanding and, of course, empowerment.
“The most effective way of ensuring that your employees become ambassadors for the brand is to give them something to be proud of,” says Welman. “They want to understand why a leader or a business does what it does; they want to know its purpose.”
Having a strong message that is upheld throughout the organisation builds credibility and trust and it ensures that everyone knows what they are meant to do and where they fit into the overall structure. When people feel valued and that their contributions are of value, then they will be more committed to making it a success.
“In our organisation, leadership has been really good at linking projects and challenges to our narrative, which improves buy-in instantly,” says Nagel. “It’s the difference between feeling as though you are doing a task and achieving a goal or ideal.”
A business will also benefit from recruiting the right talent and allowing for brand ambassadors to be a part of staff training.
This level of commitment to a brand’s values is essential to the growth of the company and ensuring that it remains consistent both internally and externally. Employees take on the internal role, but the external one needs to match. One way of incorporating the two is to develop and implement an integrated communications strategy across PR, marketing, events, digital media and all internal departments so that every message is bang on target.
“Understanding the value of communication, reputation development and management is key to any organisation’s survival in this economy,” says Rachelson. “Businesses need to embrace modern technologies to enhance effective and transparent communication and have a system in place that ensures that communication is open and easily accessible by all staff.”
“A brand must decide how it wishes to be seen and then establish how it is perceived,” says Welman. “A bridging strategy must then be built to move a brand from where it is to where it wants to be. This brand perception shift is the sum of a thousand actions and words.”
Brands can never say that they are X or Y without acting in a way that backs this up, and customers, employees and other stakeholders must be able to recognise that the actions of the business match its campaigns and promises. If a product or service isn’t innovative, for example, don’t claim it.
“A negative impact may be seen if brand image and messaging conflict with the actions or delivery of the business,” says Kennedy. “This leads to confusion among employees and customers alike and a loss of market share. It can be managed by a good and active leadership at all levels of the business on a daily basis — continuity is key.”
Today brands are far more susceptible to sudden changes in public opinion. It is easier for consumers to voice their views and share their stories through social media platforms, and a brand’s reputation hangs on a dime.
“If you are authentic over time, and if you communicate honestly and openly, you are able to manage tough times more effectively,” says Welman. “You would have already built equity when the times were good. You cannot simply turn communication with any stakeholder on and off, it needs to be consistent.”
This article forms part of a larger supplement which can be found here. This supplement has been made possible by the Mail & Guardian’s advertisers. All content has been independently sourced by the M&G’s supplements editorial team