My dear friend Justo always emphasized that reputation must be based on two pillars, corporate behavior, and stakeholder recognition, to avoid falling into Plato’s cave. Walking like a duck, quacking like a duck, and flying like a duck to draw the conclusion that it is a duck did not suit him.
Acknowledgment without good behavior brings us closer to greenwashing. However, some purists will always say that this is not the canonical definition. I guess they know about towels and surfers! Yet good behavior without recognition leads to frustration.
The effort that companies, or some companies that is, are making to have sustainable corporate behavior is proving to be remarkable. By obligation or conviction, companies are becoming more and more sustainable, but, alas, there is a lack of recognition, or at least, little recognition. Investors are increasingly demanding more and more sustainable investments. Funders are increasingly taking ESG factors into account in their risk analysis. Is this enough? Consumers demand green products. Is this enough? Talent takes into account the business model’s sustainability. Is this enough? Society wants companies to be sustainable. Is this enough? All this is in the off chance that we are faced with a regulatory tsunami to convince the disbelievers.
Since sustainability is a new way of doing things and not a destructive behavior to continue doing what we used to do, but now painted in green, we must not only change our behavior but also seek recognition differently. How?
Well, just like that, shouting less and listening more. Treating stakeholders with maturity and seeking their commitment. With transparency and through a consistent narrative that, as much as possible, reduces uncertainty. By devoting more effort to managing expectations than talking about past glories. Less fanfare about excellent past performance and more co-creation to face the future. Fewer partitions between those who do things and those who tell things. More concern for satisfying needs and less for exploiting whims. Less strategic planning and more strategic thinking. Less inbreeding and more diversity. Ultimately, this plan is based on a new way of doing things and a new way of telling the story.
Manuel Sevillano, global director of Sustainability and Reputation at ATREVIA