This Meeting for the Friends of Aspen focused on the precious commodity of consumer trust, characterized as difficult to earn and even harder to keep. It was noted that new communications technologies have enabled the widespread availability of information today, making transparency a prerequisite for winning consumer trust in brands. To that end, new business tools are being developed, such that there is now talk in the United States of the emergence of a reputation economy. Even in outside business there has been a perceptible shift from visibility to credibility, and from storytelling to telling the true story.
It was observed that social networks have become a vital tool for shaping public opinion, acting as an extraordinary sounding board for news and involving a broad cross-section of the public in the conversation – sometimes with surprising results. Indeed, certain corporate scandals have elicited greater interaction than some tragic news stories. Just as was the case in pre-media societies, word of mouth has assumed renewed importance, with customers taking it upon themselves to act as brand ambassadors. The participants examined a number of case studies which were viewed as demonstrating that firms which immediately admit their mistakes are rewarded by netizens, indicating that consumers are on the look-out for genuine operators and that integrity is valued, as is transparency, which, if perceived as forcefully conceded, weakens confidence in a brand even if the information conveyed is true.
The importance accorded to transparency was deemed to be inextricably linked to the culture of the environment in which a firm operates and that of the firm itself. It is thus clear that corporate reputation does not only concern the brand-customer relationship, but also the entire network of stakeholder relations built around a firm, including those with shareholders, suppliers, and staff. Indeed, the reaction of staff when a firm’s image collapses was judged as an indicator of the shared set of values built up over the years. In certain recent cases, staff teams have rallied around the management, demonstrating a great sense of earned loyalty, while in other cases, they have distanced themselves.
It was noted that, in some instances, irresponsible behavior has not culminated in drastic reductions in sales, because consumers have continued to base their choices on other factors, such as value for money. In other cases, however, news of such abuses appearing on TV – and then amplified in the echo chambers of social media – have had a significant impact, at least in the short term. When faced with a crisis that could seriously jeopardize a firm’s reputation, it was suggested that solutions need to be found quickly, with crisis management playing a key role in such situations. The strategies put in place can vary widely, ranging from making an immediate and hard-hitting statement – which, along with providing justification, could potentially give renewed prominence and momentum to the very news item that sparked the media controversy – to employing a more considered and low-profile response.
Balance-sheet rigor, investing in research and development, not delocalizing, and adopting remunerative policies that are consonant with public opinion as well as above-board tax practices were all highlighted as business choices more apt to instill strong trust in consumers. It was stressed that there is a shift underway towards a civil economy, and that, in order for firms to stand out from the competition, they will increasingly need to build their value on intangible factors. Corporate social responsibility will play an ever-greater role in this regard, as an integral part of business strategy. Thirty case histories were considered as illustrations of how successful marketing campaigns can be built on social values – a feat which only firms whose operations are in keeping with such values can pull off. In conclusion, it was emphasized that ethics permeates culture and business, spheres that have often remained separate but which are now tending towards convergence.