Richard Edelman: A stakeholder society considers the views of NGOs, employees and consumers

At an event I attended a couple of weeks ago, I took note of what Richard Edelman said regarding the importance of effective, multi-pronged communication in today’s marketplace. Because effective communication is a big part of corporate social responsibility and because Edelman is one of the world’s leading independent PR firms, I asked Richard Edelman, President & CEO, to offer us his view on the importance of communications in the realm of corporate responsibility. I invite you to read the interview below and check out Richard's latest blog on this topic.

Why is it important that companies communicate their commitment to CSR?

First, employees are usually interested in working for companies that are not just interested in making money but also in improving our society. Therefore, if companies want to get the best people, they need to communicate well what they do and how they do it. Second, smart consumers are now demanding companies have a purpose. For example, they will buy a product if they see it as having a sustainable supply chain or appropriate packaging, even if more expensive. Third and most importantly, we’ve moved now from a shareholder society to a stakeholder society, in which the views of NGOs, employees and consumers are being considered.

What are the most effective means of communicating CSR?

It is a combination of speeches by top executives, employees’ blogs that tell their stories and mainstream media. However, telling the story only through words is not enough. Companies need to show what they are doing in video, too.

What are the most common shortcomings in CSR communications?

Just talking about CSR is not enough. Setting specific guidelines and performance measures is key. Everyone is expecting companies to make a commitment and then prove they follow through. It’s one thing to make a promise and another to keep it. In communicating CSR companies have to be quantitative.

What is the one thing that companies need to remember when communicating CSR initiatives?

First, companies should acknowledge where they are and show where they want to go. Even if they are not perfect today, they should be willing to be open and quantitative on their human rights policies, supply chain, etc. Also, companies should strive to be part of the broader solution. For instance, if a firm is trying to fix its supply chain in China, it should educate its suppliers to make them better. One should consider the broader solution, not just the immediate narrow little world.

How will communicating CSR change in the near future?

The expectation is that CSR become part of normal business and not a philanthropic act. CSR is becoming necessary - or what I call the ‘table stakes’ - required to play the game. Smart companies will accept this, make a virtue of it and talk about it as benefit. The one thing that’s going to change in communications is that you will need to show, not just tell, your story. This means taking people to where you are doing your business, making a video and becoming accountable in a visual sense as well.