Building Private Sector Diplomacy: An Interview With Richard Edelman

In June 2009, Richard Edelman, CEO & President of Edelman [full disclosure, I am employed by Edelman] was interviewed by McKinsey, regarding the role of private-sector diplomacy (in which business works in cooperation with NGOs and government to address major global issues)  and mutual social responsibility (a combination of cause-related marketing and CSR, which empowers consumers as agents of change) in rebuilding trust in the wake of the financial crisis.

I don’t usually publish agency or client-related content on Sustainability Conversations, but I found that the video here (and published today) is particularly relevant and insightful.

Some key takeaways from the interview:

• Companies do not have “an appointment for life”

Private-sector diplomacy refers to a different role for business in society: it refers to a kind of diplomatic role in which companies (or other organizations) speak to multiple  stakeholders in (and this is very important) an ongoing manner. It’s not a transaction or a one-off only. Companies are also expected to be much more transparent about how they are doing and what they are doing. It is the same as running for office, in a certain way. Companies don’t have appointment for life.

• An increasing coalescence of brand and corporate reputation

Both are now interlinked.  Consumers are questioning existing brand behavior and asking whether they believe in companies’ overall practices themselves (which comes down to corporate DNA, values and strategic priorities). A coherent story must be told between that which is the umbrella image and the actions of the various operating companies and/or brands.

• Every company is a media company

Companies have the opportunity to become their own media company in a sense—creating their own content, pointing people to it, hosting conversations and, most importantly, be willing to put up the good, the bad, and the ugly – in a transparent and authentic way.

• Act in a democratic and decentralized way

In the world of social media, we have  moved from an authority-driven society (authority of the elites) to an experience-driven society, from peers-to peers. It is critical to give a voice to the people, and let them be part of the solution.

• Be present and consistent

According to the Edelman Trust Barometer, the average person uses eight sources of media each day. That same person needs to hear or see something three-to-five times to believe it. So organizations need to involve audiences consistently across all media, adapting the discussion and style to the specific medium.