Evolving purpose: what’s next for stakeholder-centered business
Rinse and repeat. As each year ends, the typical marketer routine sets in. We turn to our Twitter feeds, inboxes and favorite publications to get our annual dose of year-ahead predictions – arming ourselves with useful tips to prepare, strategize and energize for the next 365 days. Yet, if 2020 taught us one thing, the act of rinse and repeat is down the drain. Predictions – for better or worse – can be obliterated by one major global event (and a cascade of subsequent events). As we look back to late December 2019, many of the forecasts set out by well-informed and intentioned pundits seem, well, naive in hindsight.
Porter Novelli share their predictions for the year ahead
Still, many of us (for good reason) have our eyes on the horizon. Armed with the (sometimes difficult) lessons of 2020, we can approach the New Year better prepared than ever. In fact, one key lesson is that the past year has acted as an accelerant for what Porter Novelli has been tracking for decades: this is a watershed moment for stakeholder-centered business. The pandemic taught us how interconnected our world truly is, the exponential growth of the racial justice movement has finally drawn attention to systemic inequality that can no longer be ignored and wildfires raging in Australia and the west coast of the United States brought the climate crisis to more urgent terms.
There is no going back.
Now, more than ever before, it’s clear that business must act responsibly, lead with purpose and take a community-first approach to decision making. Indeed, 71% of consumers believe the pandemic will force companies to act more responsibly in the long-term. Furthermore, six in 10 (62%) think companies have the opportunity, due to the pandemic, to be more thoughtful about how they incorporate sustainability into their business models moving forward.
So, what does this mean in the context of 2021? Let’s dive into how the events and trajectory of 2020 will impact the year ahead – and what’s next for stakeholder-first business:
Activism leads to issues acceleration
A decade ago companies had a long time to plan their strategies, from when a Greenpeace activist knocked on the door to the point an issue became front page news. Often companies could quietly sweep misdeeds under the rug before the general public was any the wiser. Not so in 2020, and certainly not in 2021. With the rise of cancel culture and the amplification of online voices, companies can no longer spend months attempting mitigation. They need to act – and fast. It’s up to brands to “see around corners” to understand levels of risk and exposure – and if they’re smart (and responsible), proactively address issues instead of waiting for the next trending hashtag.
Issues become un-siloed
A key lesson 2020 has nailed home is that ‘intersectionality’ is more than a buzzword, it’s a practical business application. We can’t discuss climate change without acknowledging its disproportionate impact on communities of color.
And the ‘return to office’ is more than a conversation around square footage or open workspaces – it’s also about how we can make future offices more accessible to those of all abilities and being intentional about disability inclusion. Companies must respond in turn by breaking down silos across the organization – is your DE&I team talking to the product innovation folks? They should be.
Transparency is the next leadership trend
Leaders who have taken a humble, human-first approach to communicating with their employees and customers have generated a level of trust among their stakeholders which will have a significant impact on their sales and retention rates in 2021. However, to avoid being perceived as opportunistic or ‘woke,’ leaders now need to carry their commitments to transparent, timely and authentic communication into their post-pandemic plans and not just return to hiding behind locked doors, polished facades and comms teams as employees begin to return to ‘normal’ working patterns.
Conversations around purpose will continue to be normalized
As the mandate for a stakeholder-first approach to business reaches a new level of fervency, investing and discussing your brand purpose will continue to be normalized. Over the year to come, you will see a whole new class of stakeholder-driven businesses enter the fray. More purpose means more progress across the board – and we’re here for that.
The terms ‘rinse’ and ‘repeat’ may no longer apply, but perhaps ‘re-center’ and ‘resurgence’ are more appropriate. While we’d all like to put 2020 behind us, let’s take the lessons we learned and apply them toward a more equitable future with a renewed (and accelerated) commitment to stakeholder-centered business.
Whether cancel culture is good for society or a harsh disavowal inflicted too quickly is a hotly debated topic, but good, bad or ugly, it's here to stay in 2021, and brands must learn how to navigate this new norm before one misstep puts them in a social media firestorm. So what should you do if this happens to you this year?
As part of our Predictions event taking place 25 - 29 Jan, Porter Novelli examined five brands that have recently been ‘cancelled’ to understand how long a cancellation lasts and what it takes to get back in the good graces of public opinion. You can watch the fascinating talk here.
Content by The Drum Network member:
Porter Novelli
Find out more