The Business of Trust

By Teresa Henderson, Executive Vice President and General Manager

On January 25, Edelman’s 2011 Trust Barometer findings (http://www.edelman.com/trust/2011/)  were presented by CEO Richard Edelman at the World Economic Forum in Davos. And while trust in business, government, media and NGOs is up globally in comparison to 2010, trust in business in the U.S. is down. Surprised? Neither were we.

Also unsurprising are the industry sectors that are the least trusted in America. Banks and financial services companies ranked 15th and 16th out of 16 sectors measured in the study. Insurance companies fared only slightly better, and media companies ranked low, too. One oddity in the study: the relatively low trust Americans have in beer and liquor companies, which have typically fared well financially during recessionary times.

If it’s bad to be a broker, it’s good to be a geek: Technology once again ranked as the most trusted industry in the U.S. and, in fact, gained trust in the past 12 months. It’s also good again to “drive American” as successful rebounds by U.S. car companies fueled a jump by the automotive industry to number 2 on the most trusted list. My father, who spent most of his career at Chrysler Corp. and proudly wore a tie tack featuring the Chrysler pentastar, sometimes even on the weekend, would be proud.

Trust is proving to be money in the bank for today’s companies and has become a business imperative. When a company is trusted, 52 percent of people will believe positive information about the organization after hearing it only once or twice. Only 14 percent will accept negative information on the first or second go-round. Conversely, organizations that are not trusted get very little benefit of the doubt: 59 percent will believe negative information the first or second time it’s heard but only 9 percent will believe the first or second positive message.

So what should companies do if their organization or their industry at large is suffering from a deficit of trust? Here are four simple first steps to take – and stick to.

1. Align profit and purpose for social benefit. Today’s consumer is willing to pay more for goods and services offered by companies who are socially responsible. Today’s consumer is also willing to punish bad actors by not doing business with them. To paraphrase Spike Lee: do the right thing. Give back in a relevant way.

2. Speak up with multiple trusted voices. In addition to the CEO, call on credentialed academicians or subject matter experts to tell your story in a transparent fashion. And don’t rely on just a press release. Use video and online vehicles. Just use them appropriately.

3. Leaders must walk the walk and be accountable for their actions. This one is simple. Employees, boards of directors, shareholders and consumers expect those who are entrusted with running organizations to be fiscally, socially and morally responsible. There is no alternative.

4. Make trust deposits. Conserve water. Find ways to reduce your carbon footprint. Allow your employees to identify a non-profit organization that could benefit from their volunteer hours. Sponsor a health-awareness event in your community. These are just a few things that can be done in short order and it’s perfectly OK to talk about the steps your company is taking. (Get your employees involved and they will help you tell your stories without being asked.) You’ll be in a better position to weather any future storm.

Are You Engaged?

By Alison Cox, Vice President, Corporate

If you’re a frequent reader of this blog, you’ll notice a recurring theme among otherwise diverse topics – engaging your audiences. It’s not just a matter of knowing who you want to talk to, but understanding their issues and being willing to enter into discussions about those shared concerns. This isn’t necessarily a groundbreaking idea. Public relations has always been about communicating with diverse audiences, not just broadcasting information at them.

At Edelman, we have an approach to public relations that we call Public Engagement. Public Engagement acknowledges and embraces the evolution of society, changes in stakeholder behavior and adapts to the technological innovations that are changing the ways that we communicate with one another. Specifically, Public Engagement is about advancing shared interests in world of cross-influence.

Having said that, it’s important to point out that Public Engagement is about having conversations – listening to what others have to say, considering their positions and providing thoughtful commentary that moves the overall discussion forward. It’s about finding common ground – the shared interest – with audiences who, on the surface, may not seem to have the same goals. It’s about finding solutions through partnerships and dialogue.

One key thing to note about Public Engagement programs – they are always evolving and adapting based on what they hear from stakeholder audiences. These programs are transparent about the company’s interests or agenda, but still allow others to share opposing views. This can be challenging in online environments, particularly when dissenting opinions are being aired on your Facebook page or in a branded forum.

A quick Google search will turn up numerous high profile examples of companies that responded to online criticism by disabling comments, deleting posts or banning participants. It doesn't have to be that way. For a global trade association, Edelman created an advisory council made up of prominent bloggers and podcasters in the association's industry. Participants included advocates, affiliated blogs – and the association’s two most vocal detractors. There were no parameters or restrictions on what participants could say, nor did the association attempt to use the council members as a broadcast channel for its own news and views. By encouraging open dialogue and discussion about shared interests and concerns, the association eventually won over the detractors, who not only became less critical of the association’s policies, but at times, became advocates in their own right.

If you are still building your 2011 communications plan – and particularly if you believe your plan is finished, I would challenge you to consider whether or not you’re engaging in two-way conversation with your stakeholder audiences. You’ve thought about what you want to tell them, but how will you listen to what they have to say? If you have a corporate presence on social networking sites or in online communities, have you empowered your community ambassadors to do more broadcast information?

Are you engaged?

A Passion for Baking Meets Online Networking

By Karen Marino, Marketing Specialist

Most people that know me know I have a passion…I love being in the kitchen, and specifically baking. Ask anyone in our office and they will tell you that I am the cupcake queen. In short…baking makes me happy.
I’m always amazed at the resources the Internet brings.

Back in 1996 I was surfing around on the Internet looking for recipes and stumbled across a live chat room for foodies on the website Epicurious.com, a Conde Nast site.

I joined the chat and, along with sharing recipes and talking about food and baking, over the years we’ve shared our lives too. Some of the members are married, some single, some are professional chefs and some are just learning how to cook. We celebrate births and new careers and provide support during tough times. Through online networking we’ve helped each other find jobs, get great travel deals and even find love a time or two.

We are located all over the country, really all over the world actually. Our group gets together in a various cities (from Cincinnati to Toronto to Texas and beyond ) to meet face-to-face, socialize and most of all, share our love of all things culinary. What could be better than chatting with someone in Greece and sharing a recipe for chicken fried steak…and receiving his or her favorite baklava recipe in return?

Several years ago Epicurious.com removed the live chat feature. We attempted to maintain contact with each other through email, but with so many of us, it was difficult. Then we found Facebook. Several friends took the initiative and started a special group page. We emailed and encouraged each other to join. We don’t chat live, but we still continue to build our group, share recipes, tips and what’s happening in our lives.

If you have a passion for something, you’re bound to find a group online that shares that same interest. Do a Google search and start looking. Get to know people and interact. I’ve made some great friends and although I don’t see them face to face very often and most of our interactions are through social media, they’re some of the best friends I will ever have.

Client Management: How to Prepare for Any Client Meeting

By Jay Andrew, Vice President, Corporate

We all know that client meetings are a great opportunity for productive and meaningful face time. They’re even better when you’re able to score attendance from a CEO or others on the leadership team. But these opportunities also present their own unique set of challenges and require a different type of preparation.

When a CEO agrees to attend your meeting, you need to recalibrate and move away from the approach you might use with your everyday client contact, such as providing project updates or discussing plan deliverables, timelines etc. While a CEO might find some of these things interesting, they will likely not care to be caught up in such detail.

I faced this situation a few weeks ago and had no feedback from the client on what the focus of the meeting would or should be. I knew that I really needed to prepare for this opportunity, but the question was how? I want to share with you a link to a PDF newsletter published by Andrew Sobel, a leading authority on client and business relationships, entitled Client Loyalty: Strategies for Building Inner Circle Relationships.

This particular issue of the newsletter couldn’t have been more timely or on point: How to Prepare for Any Client Meeting. Mr. Sobel isn’t kidding. While these tips are certainly common sense, there’s always value in going back to the basics, even for the most seasoned PR pro.

By the way, the meeting was a hit, extending well beyond the fifteen min utes we were promised. I credit Tips 8, 9 and 10 for this. Take a look.

8) Do you fully understand the perspectives of the various constituencies that surround your client? (e.g., senior management, subordinates, customers, capital markets, as well as different functions and organizational units?)
9) Will you present yourself and your views in a way that reinforces your standing as a deep generalist --someone with outstanding expertise but also possessing a broad, top management perspective and an understanding of the entire business “ecosystem” that surrounds your client?
10) In your meeting, will you exhibit a mindset of “independent wealth”? (i.e., you are totally focused on your client’s agenda, you demonstrate a love for your work, and you treat your client as an equal).

March Madness: It's not just business as usual

  By Jennifer Little, Senior Vice President, Consumer

As an avid college sports fan, the excitement and anticipation of March Madness is already being felt these last few days of February. I’m ready to find out who is “on the bubble”, see who is crowned this year’s “Cinderella team” and try to predict the “upsets”. With the Final Four (men’s) in Houston, it will be great to have basketball fans descend to Texas again weeks after North Texas hosted the Super Bowl (anyone know the odds of a weather disaster in Houston in April?).

Over the years, I’ve worked conference basketball tournaments as well as NCAA regional events. The atmosphere behind the scenes in the media room is just as thrilling and disappointing as seen on television. The players want to win and are crushed after a tournament loss. The coaches are skilled at encouraging the competition yet take the blame for not performing. From a media relations standpoint, there are many opportunities to observe different spokespersons and interview styles among these coaches and players.

In the world outside of hoops, March is also an exciting month, but everything in my opinion revolves around basketball. Daylight Savings Time starts on March 13, which is also Selection Show Sunday so it stays lighter longer for game watching and patio socializing. The weather also begins to get nicer even in some of the coldest spots in the country which doesn’t affect the conditions on the court, but helps travel weather. St. Patrick’s Day is March 17, adding extra celebration to Second Round games and providing ultimate craziness for the teams with green school colors. Many students across the country enjoy Spring Break in March adding to the travel fun of the tournament among college students in particular. Companies operating on a calendar year may be paying out bonuses to employees in March so fanatical basketball fans can blow their bank on Final Four tickets.

Regardless of your interests, March Madness will probably be felt until the Championship game on April 4. I’ll admit that at times it will be business as usual. Many organizations send emails to employees “banning” them from streaming games on their computers as not to crash the system. With afternoon games on work days, it’s the ideal time to venture out of the office for lunch to the restaurant with the best flatscreen TVs. For some, it might be time to take a sick day. I’m just thankful that the portable television (that we helped introduce for a client) in my office gets the network broadcasting all the tournament games. If I decide to get a little crazy, I might even take it off mute!

2011 Is the Year of Mobile Marketing

  By Kate Sutherland, Account Supervisor, Consumer

The Association of Travel Marketing Executives (ATME) recently brought together leading industry executives to discuss what was new and exciting for the coming year. While the entire panel agreed that the past few years had been difficult for each of their industries they were all optimistic for a strong 2011 and had a fresh outlook on how to attract new customers.

Mobile marketing is the number one new tactic being employed from airlines to hotels in order to stay front of mind with travelers. Jim Zito, VP of Interactive Marketing at Morgans Hotel Group; Hugh Riley, secretary general, Caribbean Tourism Organization; Chris Rossi, SVP of Virgin Atlantic Airways; and Shirley Tafoya, president of Travelzoo all agreed that providing consumers with an easier way to access information on their mobile devices was key to attracting and keeping customers engaged with their product. The focus will be on creating new applications that are both functional and unique. For example, Virgin Airlines will focus on making it easier for passengers to check in online and receive real-time flight information, while Travelzoo is trying to find a way to quickly and easily make their sales available through their own application.

The overall consensus: this will be a “test and learn” year for mobile. I work with a variety of travel clients, and can speak from experience when I say that mobile is a major focus for 2011. Whether it’s to sell a product, or provide a service, over the next few months I have a number of clients rolling out new mobile features on both the Blackberry and iPhone.

What about social media?

While social media was the focus of 2010, there is a definite shift in priorities moving forward. Last year, everyone had a “jump in and see what happens” attitude, without considering where exactly social media best fit for their company. Was it a PR tool, customer service tool or a sales tool? It was everything. I had one client learn the hard way that social media, like traditional media, requires strategy. We had another company, with a number of different Twitter accounts, sending several different messages out daily. It created disconnect for the brand and, ultimately, confused the consumer. In the end, every client should recognize that social media should be approached like any PR campaign – through careful planning and strategic entry into the appropriate mediums.

This issue was not exclusive to my client.  Many companies learned the hard way that social media does NOT fit everywhere. Now they are taking a step back and evaluating the ROI on social. Where does it work, how do you best engage through social and where is it not a fit? The answer really depends on the industry and clientele, but each company agreed they will work hard to find a “home” for social media this year to more effectively communicate their key messages, product offerings or engage with customers directly.

Interestingly, hotels and airlines have very different outlooks on how to use social media. While Morgan’s Hotel group has great success using social media to get information out about events and parties at their U.S. hotels, Virgin uses it strictly as a customer service tool to help passengers especially when they experience problems with their trips. Regardless of how it is used, a dedicated staff or person is key to making a social media strategy a success. Offering real-time information and responses was an important lesson learned last year for each company.

The final message from the day – whether it is mobile marketing or other social media strategies - is that being proactive, interactive and innovative is the only way to succeed in gaining customers' attention and loyalty.

To Gain Public Trust, CEOs Must Dare To Engage Risk

By Tony Shelton, Executive Vice President, Crisis and Training

In the wake of the BP spill, automotive recalls and banking fiascos, the public is even less interested in giving the benefit of the doubt to companies that seem more interested in positioning for a legal defense than in making things right.

In fact, Edelman’s 2011 Global Trust Barometer shows unmistakably that today’s CEOs have to be able to demonstrate accountability and action in a crisis. Trust must be earned, and companies today must work even harder to earn it.

Recently, Edelman’s U.S. Crisis Leadership Team -- including Edelman Southwest’s Allen Caudle and Tony Shelton -- met in San Francisco to examine how best to prepare and support executives in successfully engaging new levels of reputational risks in this age of heightened expectations.

The Edelman crisis network is uniquely qualified and experienced to prepare executives for increased scrutiny and responsibility.

For example, Edelman is the company that:

• First used the Internet as a crisis response tool

• Counseled U.S. Airways following the emergency landing of US Airways Flight 1549 in the Hudson River

• Headed up communications for Air France following the disappearance of its flight off the coast of Brazil

• Counseled Imperial Sugar following a deadly explosion at its plant in Georgia.

With this experience as a foundation, Edelman’s crisis practice leaders are preparing executives to engage reputational threats of a ferocity that could hardly have been imagined even five years ago.

A major concept is that the expression of the risk -- whether it is a company whistleblower on 60 Minutes, a Congressional investigation or a sudden crisis event -- must be seen as basic subject matter. The higher level of reasoning that will guide the executive in communication in such situations crosses boundaries of skill sets, media and stakeholder groups.

Successful risk engagement goes beyond protection of the corporate reputation. Its goal must be nothing less than advancement of the reputation.

Whenever the next major oil spill or high-profile recall comes, Edelman’s crisis and risk experts across the country and around the world will be ready to support, advise and guide their clients in this critical pursuit.