Transparency
Key to Rebuilding Corporate Trust
By
Ronald C. Hanser, APR
EDITORIAL
(October 3, 2003) First do the
right thing, and then talk about it – that is the basis of sound public
relations.
America’s
stumbling economy and a continued lack of consumer confidence are symptoms
of a broader issue – broken trust due to not enough companies “doing
the right thing.”
Alarmingly,
only 53 percent of Americans have strong confidence that “our system of
free enterprise will work” and only 62 percent “believe the press”
– down 15 percent and 17 percent, respectively, in just two years,
according to the consumer research firm RoperASW.
In
Iowa, the number of journalists who say business executives have lied to
them or “knowingly misled” them is up 23 percentage points from 2001,
and the number of journalists who “trust Iowa’s business leaders” is
down 12 percent according to Hanser & Associates’ 2003
Business:Media Index.
Confidence
in our government, businesses and media is eroding, and diminishing trust
– which shows itself as skepticism and, at times, anger – is affecting
the economy.
And
trust is not easily regained. But honest communication can perform an
important role in achieving public confidence.
In
a new “How To” for restoring trust prepared by The Public Relations
The
Coalition released its first white paper “Restoring Trust in Business:
Models for Action” on September 17, 2003.
The document challenges corporate America to do three things:
1)
Adopt Ethical Principles
Adopt
ethics that define what your company believes and how you will act.
Articulate a set of ethical principles that are closely connected to your
core business processes and supported with deep management commitment and
company-wide discipline. These
principles should balance the interests of all, including ensuring
investors receive full and timely information.
2)
Pursue Transparency
Don’t
hide your company’s actions in a veil of secrecy. Create a process for
disclosure and transparency that is appropriate for your company and
industry in both current and future operations.
It should include a senior oversight committee.
3)
Measure Trust
Make
trust and ethics a Board-level corporate governance issue and establish a
formal system of measuring trust that touches all parts of the company.
This roadmap underscores the need for corporate leaders – CEOs in
particular – to create or reinforce an environment of accountability in
their organizations. Without a visible, concrete and measurable
commitment, society will continue to mistrust corporate leadership.
There’s
never been a better time to “do the right thing.”
Corporate
leaders can see where they stand in the process of restoring trust by
reviewing a checklist of actionable steps in the white paper. Free copies
are available online at here (PDF) or by phoning 515-224-1086.