By THABANG CHILOANE
As the political season reaches its crescendo, with more than 50 countries worldwide heading for elections in 2024, this is a historic election year.
More than two billion voters will head to the polls in, among others, the US, India, Mexico and South Africa. Geopolitical volatility is the biggest risk identified in the World Economic Forum’s Chief Risk Officers Outlook 2023.
Discussions about integrity in communication frequently become associated with the electioneering tactics of politicians vying for votes.
However, the importance of integrity extends far beyond the realm of politics. In business, maintaining integrity in communication with stakeholders is ethical and essential for sustained success. This article will explore the essence of integrity in stakeholder communication, its significance, how it can be maintained and the consequences of its absence, supplemented by real-life corporate examples.
What is integrity in communication with stakeholders? Integrity in communication involves honesty, transparency and consistency in all messages conveyed to stakeholders. Stakeholders are not just investors; they include employees, customers, suppliers, community members and regulatory bodies.
Integrity means a company’s actions align with its stated values and promises, building trust and credibility.
The trust built from integrity in communications creates a robust foundation for long-term relationships with stakeholders. The relationships are crucial during crises or when making difficult decisions.
Stakeholders who trust a company are more likely to extend patience, offer support, and provide the benefit of the doubt in turbulent times.
Best practices for maintaining integrity in communication integrity is the cornerstone of a successful stakeholder relationship management strategy.
Professionals tasked with stakeholder relations must adopt several vital practices to ensure that integrity remains at the forefront of all communications:
Regular updates through newsletters, reports and meetings: Keeping stakeholders informed through regular updates is crucial. This includes the good news and the challenges the organisation faces. Newsletters and reports should be clear, factual and reflective of the current state of affairs within the organisation. Additionally, holding regular virtual or in-person meetings provides a platform for dialogue, where stakeholders can ask questions, provide feedback and feel genuinely involved in the organisation’s journey.
Immediate disclosure of issues that may impact stakeholders: When problems arise, prompt and transparent communication is critical. Delaying or hiding negative information can damage trust irreparably. For instance, if there is a data breach or a significant operational failure, stakeholders should hear about this directly from the organisation, along with an outline of the steps to address the issue and prevent future occurrences.
Consistent messages across all platforms and departments: Consistency is vital in maintaining integrity. Stakeholders should receive the same message whether they read an email, browse your website or speak to a customer service agent. To achieve this, all departments must be aligned with the organisation’s communication strategy. The alignment can be facilitated through regular training sessions and a well-maintained internal communication platform where updates and key messages are shared.
Engagement in honest and ethical marketing: Marketing efforts should reflect the value and capabilities of the products or services, avoiding exaggerations that mislead stakeholders. This involves adherence to ethical advertising standards and regulations, ensuring that all promotional materials are straightforward and substantiated.
Feedback mechanisms: Implementing robust feedback mechanisms allows stakeholders to express concerns, provide suggestions and voice their opinions regarding the company’s operations. This not only aids in maintaining transparency but also helps build stronger relationships as stakeholders feel their input is valued and considered in decision-making processes.
Training and development: Regular employee training and development programmes on ethics and communication can help ensure that everyone understands the importance of integrity in their roles and its impact on stakeholder relationships. This is particularly important in industries that face rapid change or complex regulatory requirements.
Use of technology for transparency: Technology such as customer relationship management systems can help track and maintain transparent and consistent communications. Thee systems ensure that all information shared is up-to-date and easily accessible to all relevant parties, minimising the risk of misinformation or communication breakdowns.
By adopting the practices, stakeholder relations professionals can ensure that their organisations not only talk about integrity but consistently demonstrate it in their actions and communications, building a foundation of trust that can endure challenges and foster long-term stakeholder loyalty.
Neglecting integrity can lead to significant repercussions. Enron’s downfall in 2001 due to fraudulent financial practices led to bankruptcy, destroyed trust and severe economic losses for employees and investors. Similarly, the 2017 Equifax data breach, which exposed the sensitive information of approximately 147 million people, led to lawsuits and plummeted trust in the company.
Conversely, companies that consistently communicate with integrity reap substantial benefits. Patagonia’s commitment to environmental and social responsibility resonates deeply with customers, enhancing loyalty and sales. Similarly, The Body Shop’s commitment to ethical sourcing and opposition to animal testing has built a loyal customer base that trusts the brand’s advocacy for environmental and social causes.
In conclusion, integrity in communication is a fundamental principle that should guide all stakeholder interactions. It is not merely a moral obligation but a strategic imperative that fosters trust, mitigates risks, and enhances corporate reputation.
Companies prioritising integrity in their stakeholder relations are more likely to thrive in the long term, enjoying the loyalty and support of their stakeholders through all business cycles.
Chiloane is the chairperson of the Institute for Stakeholder Relations Southern Africa. He writes in a personal capacity.