Around the Boardroom table, the Director responsible for reputation or the external reputation management consultant often has the most contact with the outside world. And we know that business in the UK will have to change.
A Conservative Prime Minister is promising “an economy that works for everyone, not just the privileged few” and IPSOS Mori’s Veracity Index tells us that business leaders are less trusted than nurses, doctors and teachers – but also less trusted than civil servants, lawyers, pollsters, economists and bankers.
To recover its reputation, business needs to re-establish its contract with society. So when we’re asked about the Board away day, let’s put “The reputation of business” on the agenda. I believe that every organisation would benefit from a discussion of the Government’s corporate governance and inequality agenda and how it relates to them. My suggested topic list is:
- Is the Board close enough to society? Should we spend a greater proportion of the year where stakeholders are (employees, customers, intermediaries, influencers, shareholders, government, regulators) – and meet as many them as possible? Should Board meetings move around the country?
- Consider our executive pay from society’s point of view: Is the level of guaranteed earnings or the rate of increase (relative to the workforce generally) “unfair”?
- Should we introduce a greater level of transparency than all of the rules and regulations require, whether that is earnings data or whether senior management pay UK tax?
- Is community engagement central to our corporate purpose (and not isolated as “just CSR”)? Should we review all CSR budgets and ask whether our corporate spending reduces inequality in society? Is our spending directed to the areas of most concern to our stakeholders?
- Should we review recruitment policies – do they act to help the whole of society – and is it possible to meet the corporate purpose and help reduce inequality in society? Should we take and train school leavers wherever possible?
- Should we take action ahead of any Government review and ensure all stakeholders are represented at Board level (particularly employees)?
- Should we commit to reflect society (or our stakeholders) at all management levels, not just in terms of gender and ethnicity but also disability and possibly even non-university and state education backgrounds?
- Should we talk publicly and be higher profile in society, particularly our CEO and senior management? Should we talk more about broader issues and executive pay as well as the company’s products and services?
- Is it time to commit to reporting on more than just financials including our impact on society and on the environment?
In 2017, there will be winners and losers in what Philip Hammond has called a period of “unprecedented uncertainty”. Perhaps the winners will be those that gain reputational advantage by embracing the Government’s corporate governance and inequality agenda?