Creative consultancy Radley Yeldar has got together with Business in the Community and produced a report on the future of corporate responsibility communications.
Within the study, the organisations identify nine predictions “to challenge your presumptions”. They look at how trends in the corporate responsibility communications area may develop over the next few years.
Below we have listed the nine key predictions and if you read on to the end, there is a fuller explanation of each one. Let us know what you think – do you agree with the report or do you see things going a different way in future? Any views welcome – as always.
Quick Take: Nine predictions for the future of CR communications
Prediction 1:
Boards will increasingly recognise that the CR reporting
process is a valuable internal management tool.
Prediction 2:
Boards will pay more attention to the accuracy of CR-related
information.
Prediction 3:
Companies will improve internal communication on CR.
Prediction 4:
Companies will make better use of existing
communication channels to deliver tailored messages
to specific stakeholders.
Prediction 5:
Boards will increasingly use the Annual Report and
Accounts as a tool to demonstrate accountability
to important stakeholders not just investors.
Prediction 6:
Companies will increasingly report material issues in
their Business Review but will keep a separate CR section.
Prediction 7:
The role of the CR manager will increasingly be driven
by an internal “pull” rather than an external “push”.
Prediction 8:
Companies will take a systematic approach to integrating
stakeholders’ interests into their decision-making
processes.
Prediction 9:
Companies that engage in dialogue through
partnerships will be better able to identify opportunities
for value creation.
If you want to read a more detailed explanation of these potential trends, keep reading…
The full nine predictions for the future of communicating CR
Prediction 1
Boards will increasingly
recognise that the CR reporting
process is a valuable internal
management tool.
Many CR managers have raised doubts about the
effectiveness of a stand-alone CR report as a
communication tool. But at the same time, they have
recognised that a robust CR reporting process can
be an effective management tool. The process of
producing an annual CR report can act as a vehicle
on which to build impact assessment, prioritisation;
target setting; monitoring and evaluation;
continuous improvement; awareness-raising etc …..
As CR becomes more closely linked with core
business strategy, the board will come to value the
CR reporting process more as a management tool
than as a communications tool. This will not lead to
less CR reporting, because the annual or biennial CR
report will remain an effective target or milestone.
Prediction 2
Boards will pay more attention
to the accuracy of CR-related
information.
With the codification of directors’ duties and the
integration of CR into core business strategies,
internal awareness of the importance of
environmental and social issues will increase. This
will increase the demand for CR-related information
at board-level. And, as more core business decisions
become dependent on CR-performance data, more
attention will be paid to its accuracy.
This will in turn lead to companies using more robust
data management systems and software, as well as
more independent verification and other forms of
assurance. Over time, the material CR issues will be
managed, monitored and evaluated as effectively as
financial issues not just because it is possible, but
because it matters to the business.
Prediction 3
Companies will improve internal
communication on CR.
Many companies now recognise that there are
two benefits to internal communication on CR:
first, good CR performance can improve employee
engagement and motivation; and second, CR
management requires employees to understand
their role in delivering CR objectives and
performance that are important to the company’s
success. Internal communication can help both
to build awareness and to change behaviour.
Many companies have traditionally focused on
communicating responsible business practice to
external stakeholders and, as a result, they may
have to learn new ways of communicating on CR.
In particular, employees with day-to-day experience
in a company may be more sceptical of an external facing
“corporate” CR message. Also, employees
will expect more two-way dialogue rather than
one-way reporting.
Prediction 4
Companies will make better
use of existing communication
channels to deliver tailored
messages to specific stakeholders.
Companies will use the annual CR reporting process
as a management tool, and as a source of CR-related
data and case studies. But with stakeholder
segmentation, prioritisation and engagement,
companies will better understand the specific
interests that each audience has. They will also
recognise that many of their existing communication
channels can be used to communicate with these
stakeholders.
As a result, while companies will continue to
produce CR reports (printed or online), they will
increasingly develop communications strategies that
integrate the CR stories and information contained
in the report into more of their communication
channels. This approach will more effectively
communicate that CR is integrated into everything
that the company does.
Prediction 5
Boards will increasingly use the
Annual Report and Accounts as a
tool to demonstrate accountability
to important stakeholders not
just investors.
Annual Report and Accounts are legal requirements
designed to ensure that shareholders have the
information they need to assess the effectiveness
of management. Although the Annual Report and
Accounts is one of the most important
communication tools, investors are not the only
stakeholders concerned with management
effectiveness.
The enhanced Business Review requires companies
to give information that target a broader audience
with a wider range of information. As Annual Report
and Accounts move increasingly online, and as
companies get better data management tools,
it will be easier to structure the information to
better address different audiences in a more cost
effective manner.
Prediction 6
Companies will increasingly
report material issues in their
Business Review but will keep
a separate CR section.
Companies that undertake materiality assessments
understand that there are a range of risks and
opportunities related to CR. Some of these are
relevant to the business now; others are not, but
may be so in the future. Companies that discuss
material CR issues in their Business Reviews
alongside other risks and opportunities will not
flag this as “CR content”. This will mean that the
role of the CR section in Annual Report and Accounts
will change, or it will disappear.
Since material issues will be addressed in the
Business Review, the CR section will be used to
discuss those issues that, while not material now,
should still be monitored by enlightened companies.
The CR section in Annual Report and Accounts will
evolve into a staging zone for issues that may
become material in the future and will indicate other
sources of information on CR.
Prediction 7
The role of the CR manager
will increasingly be driven by
an internal “pull” rather than
an external “push”.
Many companies began to report on their CR
performance in order to address vocal external
critics. This led to externally-focused CR strategies
and an externally-facing role for CR managers. As
companies adopt a broader approach to nonfinancial
value creation, and as CR priorities become
more directly linked to business risks
and objectives, CR managers will become more
inwardly focused and business-driven rather than
stakeholder-driven.
The CR manager will become a source of nonfinancial
management expertise and businesscritical
information. Instead of “negotiating”
performance improvements with different business
units, the CR manager will become an
implementation function acting on the board’s
guidance and with the active encouragement of
business units.
Prediction 8
Companies will take a systematic
approach to integrating
stakeholders’ interests into their
decision-making processes.
The concept of “stakeholder” is becoming
depoliticised and companies are now taking a
constructive approach towards understanding and
managing the networks of people that they
influence, and that influence them. Companies that
want to better understand non-financial value
creation are also engaging with stakeholders as
they once did only with customers – to understand
where common interests can create mutual benefit.
At the same time, a range of different stakeholder
engagement approaches is helping companies
connect with diverse interest groups in more
constructive ways. As companies get better at
stakeholder engagement, they will recognise that
the strategic value exceeds the operational risks,
and they will integrate stakeholder engagement into
strategic planning, priority setting, and new product
development.
Prediction 9
Companies that engage in dialogue
through partnerships will be better
able to identify opportunities for
value creation.
A company’s business consists of a complex set
of relationships with employees, suppliers,
customers, investors and governments. This network
gives companies an incredible reach into
communities globally, and makes them unique
agents for delivering change.
As they expand these networks to include other
partners, such as NGOs and community groups,
companies will be better placed to identify business
opportunities that also create social and
environmental value.
This will help contribute not only to their own longterm
success, but also to a more positive
appreciation of the role of business in society.
Prediction 10 (your turn)
Some of the people reading this
report will disagree with the
predictions and will send their
own prediction for the future of
CR communications.
If you have any strong feelings about this subject and would like to get in contact with Radley Yeldar and Business in the Community to put your views forward, they are happy to hear from anyone. Send your predictions to:predictions@ry.com or predictions@bitc.org.uk.
