Hard times teach tough lessons. With global icons tumbling from once exalted positions of power and prestige in the wake of the subprime crisis, a clear distinction is emerging between companies that made strategic communications central to their operations and those that did not. Much of the erosion in some companies’ reputations is doubtless deserved. But some of the good ones also got painted with the same brush as a result of a general disillusionment rubbing off on them. The ease with which speculations gain momentum shows how these companies are paying the price for having treated image management as a secondary issue.
The best strategic communication plans engage in continual dialogue with stakeholder groups that can affect public perceptions. A company must also learn to listen to these groups so that it can preempt conflicts by adjusting its systems in response to changing societal or regulatory circumstances, moods and needs. Doing this is time-consuming, expensive and operationally demanding. But it is as fundamental an investment in the future of any business as its capital investment programme. It would not be too ambitious to argue that maintaining and enhancing stakeholder relationships is one of the pillars upon which a company’s commercial activities rest.
While the media has traditionally been seen as the most significant of external influencers, in a globallyconnected age even defining “media” has become a daunting proposition. While editors remain powerful, you can no longer discount the potential impact of a solitary blogger or a research house that is operating on the other side of the world. For example, when an unfounded rumour seeps onto the Internet, it is often impossible to prevent it from diffusing unless large numbers of online supporters spontaneously mobilise to counter it on your behalf. Such public support can’t be turned on like a tap—it can only be earned through a gradual process of stakeholder engagement. It is only by building a workable rapport with each of your corporate or brand audiences that you can call upon their support or understanding when needed. Such was the case with the Nano. Scores of stakeholder groups needed to be directly and intensively engaged with before the current triumph of the car’s launch.
Since the ability to forge such a broad constituency of support is vital to ensure the success of any complex and high-profile project, CEOs across India are increasingly investing in proactive and comprehensive communication strategies. This integration of public relations and public affairs into the strategic operations of companies is yielding many benefits. Principal is companies’ ability to be better understood by regulators, the media, suppliers, shareholders, and the public at large, and their ability to foresee and avoid, or at least minimize, conflicts with these diverse stakeholder groups. This can only smoothen the path to development, the ultimate reward for those of us practising strategic communications in India.
Niira Radia is Chairperson of Vaishnavi Corporate Communications
