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SMiB09 Tim Callington

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The Challenge and Opportunity of Public Engagement

Tim Callington (Edelman) - How accountability can still mean profitability in the digital age.

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SMiB09 Tim Callington

  1. 1. Public engagement: How accountability can still mean profitability in the digital age<br />
  2. 2. &quot;The social responsibility of business is to increase its profits.&quot;<br />
  3. 3. Conversation and collaboration makes customers and brands influential<br />
  4. 4. Emerging from “Dell Hell”<br />
  5. 5. It&apos;s been a rule of business for generations that most companies assume they are in a struggle.<br />They assume their interests are different from the rest of their environment&apos;s:<br />Employees have an interest in higher salaries and more benefits<br />Customers have an interest in lower prices and better service<br />Governments have an interest in higher taxes and greater regulatory restrictions<br />Shareholders have an interest in receiving greater profits from investments<br />
  6. 6. The Internet gives an opportunity to escapethe “struggle”<br />It encourages and enables people to gather in common interest rather than opposition.<br />&quot;CEOs need to engage critics - it&apos;s even possible there is a justifiable gripe that the CEO needs to be made aware of. I can&apos;t promise I&apos;ll win a critic round but I&apos;ll never stop trying and I&apos;ll become better informed in the process.“<br />- Don Elgie, CEO Creston<br />
  7. 7. Left 4 Dead: Winning respect<br />
  8. 8. Authority is dispersing. We’re moving from a shareholder to stakeholder society<br />Trust in traditional authority figures is falling:<br />In some countries, trust in the CEO has fallen below 20%.<br />The credibility of corporate advertising (13%) and corporate websites (24%) has dropped <br />Meanwhile, people trust the credibility of Internet searches (35%) as much as newspapers (34%) to find new information<br />So it’s not surprising people need to hear something between 3-5 times on average before they believe it’s true<br />Source: Edelman Trust Barometer 2009<br />
  9. 9. Addressing stakeholder concerns<br />Photograph: Jake Perks<br />
  10. 10. Engaging employees<br />
  11. 11. Shareholder value is only part of the equation<br />Business can behave responsibly, accountably and openly and by engaging stakeholders still benefit the bottom line.<br />…In other words, to sell the proposition make sure what you say and what you do match.<br />
  12. 12. “What you’re doing speaks so loud I can’t hear what you’re saying.”<br />- Ralph Waldo Emerson<br />