About the author: Jason McGrath is EVP, Head of Corporate Reputation at Ipsos. Email at Jason.mcgrath@ipsos.com.

For the past decade, Ipsos’ research has observed a shift in the public’s expectations of the business community. Marked by the rise of social activism, heightened political polarization, and declining trust in government and traditional media, many Americans began to look to business to do more than simply drive shareholder value. Observing the shift, companies began to test the waters (and in some cases, make huge investments) to explore how they could better reflect the values of the various groups they serve and drive positive change. For some, this strategy unlocked growth and built trust, for others, it created huge risk and inflicted both reputational and financial damage. 

Many leaders say we’re in a “pendulum swing” moment. Today, six months into a new presidential term in the US, the landscape is more dynamic than ever; the stakes much higher. Companies are left wondering – how do we evolve to reflect the expectations of this “New America”? What are the expectations of our business beyond delivering strong financial performance? How do we make and communicate those investments without creating risk for the business? 

Ipsos’ latest polling data shows that a slim majority agree that if a company takes a stand on an issue that they do not agree with, they are less likely to buy their products or use their services (53%).  Only 13% disagree with this statement.  However, the “Say-Do” gap is still evident when exploring issues like this, as only 30% say they have completely stopped purchasing from a company due to their stance on political or current events. 

The underlying sentiment that companies must navigate is the belief that the system is broken, that the economy is rigged, that traditional politicians and parties don’t care about the average person, and that change is needed. In this context, we’re observing  heightened scrutiny of corporate practices, demands for greater transparency, and a more direct linkage between corporate values and consumer behavior. 

So, what are communications leaders to do? 

In this environment, CCOs and Corporate Affairs leaders tell us that it’s more important than ever to dive deep on stakeholder expectations, and evaluate the issues they want to engage on in terms of the issue’s relevance to the business and the company’s ability to authentically engage and follow through.  Following a model like the Ipsos PACE framework can help to determine whether the company can, or should, engage in a meaningful way.

  • Pertinent – are we addressing issues that our stakeholders care about?
  • Authentic – do we have an authentic voice on this issue, i.e., is it part of our mission and values?
  • Credible – can we credibly engage on this issue without fear of perceived greenwashing, or do our operations demonstrate credibility?
  • Effective – are we driving effective impact against the issue we’re trying to address?

The "New America" demands a proactive and nuanced approach to corporate communication.  Success hinges on a commitment to understanding stakeholder values, embracing transparency, and acting with demonstrable authenticity.  By integrating models like the Ipsos PACE framework and prioritizing genuine engagement, communications leaders can not only navigate this complex landscape but also build lasting trust and drive meaningful impact for their organizations and the communities they serve.

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