Andrew Griffin
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Worried about climate change? Blame the budget airlines. Obese? It’s the fault of the food companies. Drunk last night? The brewers forced you to drink that extra pint.
There is no end to what we will blame companies for. But in truth, we know it’s not really their fault. We can’t blame them when we drive to the airport to fly to Málaga for 1p. We are aware that we have never had so much healthy food to choose from and that we really should do a bit more exercise. And we know we only have ourselves to blame if we have a drink too many and fall down the stairs.
But a scapegoat is a convenient thing. So if others are constantly telling us it is somehow Ryanair’s fault, Exxon’s fault, McDonald’s fault or Tesco’s fault, we will happily jump on that bandwagon when it suits. And there is no shortage of public issues that need scapegoats.
So where is the business voice telling us that we the public – egged on by politicians, the media and NGOs – have got it all wrong? Where are the companies fighting back at the wilder allegations of publicity-hungry campaign groups, self-interested organisations and junk scientists? I’ll tell you where they are: they are at corporate social responsibility conferences, “engaging” with other people’s agendas.
Of course, there is nothing wrong with listening. Companies must always listen, learn and seek to improve. But this “engagement” is too often a one-way street: the terms of engagement are dictated by others. The “corporate responsibility” agenda in particular is dominated by antibusiness campaigners. And their style is not generally to engage; it is to criticise, demand and oppose. This is understandable: NGOs, like the media and politicians, all thrive on conflict. Quiet and constructive dialogue is rarely in their interests.
Business, on the other hand, has taught itself not to fight back, even when under serious fire. Companies have persuaded themselves that “engagement” means refusing to enter into public disputes. Many companies meet high-profile campaigning groups at a senior level for “constructive engagement” but then refuse to defend themselves publicly when the same campaigners fire untrue allegations at them.
Engagement has somehow become appeasement. And it isn’t working. Polls suggest that business is, if anything, getting more unpopular. Trust in business is down at about 30-40 per cent: an incredible two in every three people do not trust business. And the media is still full of reasons why we should all hate the private sector and all that it represents. Business may say that it is has a strong voice on issues “behind the scenes”, but it is in the public domain that blame is assigned and reputations are decided.
Take the example of obesity. When the obesity “crisis” first hit the headlines, companies rushed to do the right thing, in part to avoid food becoming the next tobacco in terms of perceptions and lawsuits. Initiative after initiative showed the food industry was taking the issue seriously. But in July 2006 Tony Blair said that if food companies didn’t do anything about obesity and food quality, the Government would need to step in.
Didn’t do anything? The food industry has done an enormous amount. They have changed their products, by reformulating them to contain less salt, less sugar and less fat, to increase choice and to cut out larger portion sizes. They have changed their labels, to show consumers what is contained in the product (whichever of the two food labelling schemes you prefer, British food has never been so clearly labelled). And they have changed their marketing, to emphasise to consumers that they should “enjoy responsibly” or “be treatwise”.
The Government rewarded food companies for their initiatives by banning “junk” food advertisements. The industry was not impressed, but only has itself to blame. It allowed the issue of obesity to be discussed in a one-dimensional way. Some companies did state that food was just one part of the obesity equation, but soon backed down after the inevitable backlash. There was no joint industry effort to turn the public debate around. With its strong “socially responsible” initiatives but weak public voice, the industry succeeded only in reinforcing an incorrect public perception that food content – rather than, say, sedentary lifestyles – is the primary cause of obesity. This made government intervention easier, not harder.
The next target looks set be the alcohol industry. With Iain Duncan Smith’s policy group this week recommending tax increases, both main political parties have now floated regulatory solutions to the binge-drinking problem. With this issue now getting an even higher profile than obesity, there is only one way the debate is going unless a strong industry voice is heard.
Business has to change its tack. It should challenge the shift away from individual responsibility and towards corporate blame. It should stop quietly following opinion and start boldly leading it. A key first step is to change the debate on corporate social responsibility (CSR).
Some CSR initiatives are laudable; others are laughable. They are all done, however, under an umbrella that has been put up by others. The term itself suggests that companies are not intrinsically socially responsible, requiring instead a programme of activities and promises to make them palatable to the world. It is not surprising, therefore, that CSR is managed reactively, defensively and on the territory of others. So much so, it is in danger of becoming a Trojan horse for anti-corporate campaigners to attack the very existence of successful companies.
Companies must fight against this underlying agenda, not engage with it. They must listen, build bridges and seek solutions wherever possible, but take a stand where necessary. They should set, rather than follow, the terms of debate on key issues. And they should do this with the confidence and assertiveness that comes with millions of “votes” a day from those who buy their products and services.
Companies may feel that they are constantly under fire and that, if they fight their corner, they will be shot down. They are, and they will. But some fights are worth fighting. Companies need to show us the way and, occasionally, show us their teeth.
Andrew Griffin is managing director of Regester Larkin, the crisis and issues management consultancy, and author of a forthcoming book, New Strategies for Reputation Management
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