SWISS LISTED 2019 - 2020 Switzerland’s largest listed companies 1st edition trust communicating what matters trust communicating what matters “A man I do not trust could get no money from me on all the bonds in Christendom… I think that is the fundamental basis of business.” JP Morgan, 1912 SWISS LISTED 2019 Switzerland’s largest listed companies If a century ago trust was mainly based on personal relationships, digital plays a fundamental role in the relationship between companies and stakeholders. For this reason, we have chosen to name our research .trust (to be read “dot-trust”). The dot of the digital ecosystem is like a window through which to get to know, understand, and engage businesses and brands. Our ultimate goal is not to measure just the quality of communications but how companies are able to generate trust with customers and consumers, current and potential employees, journalists and local stakeholders. The image we have chosen to represent this concept is the interweaving of threads because we believe that trust is woven together by different strands, day by day. This new research aims to capture the ability of corporate communications to support companies’ competitiveness and inspire trust, the “currency” of business today just as it was 100 years ago. .TRUST: HOW TO GENERATE TRUST THROUGH COMMUNICATION Gaining the trust of investors, clients, and other stakeholders is the key to growing a business with solid foundations and prospects. Transparency, credibility of a company’s commitments, and strategic plans are all elements that earn it. The new Lundquist research series “.trust: communicating what matters” measures the ability of companies to generate trust. HOW DOES COMMUNICATION HELP COMPANIES BE We concentrated on companies’ ability to channel clear MORE COMPETITIVE? and coherent messages through various digital channels, Companies today face two great challenges: transforming since this is how strategic communication is deployed. their business to respond to a shifting competitive context and playing a more active role in society. These For companies to have a common thread running through changes also bring a radical shift in the way companies their digital communication strategies, they will need to communicate. share an overall vision amongst all company functions. Communication, in fact, holds an increasingly important role in forging trust and guaranteeing the solidity of a business. It must all begin with identifying key company- Moreover, we provide and stakeholder-specific topics. Companies need to then companies with the means of be able to present their strategic activity, in tandem with deploying communications to quantifiable achievements and concrete actions. grow their business COMMUNICATING WHAT MATTERS Purpose, leadership, storytelling, innovation, and Global Sustainable Development Goals are being used as catch- all terms to discuss the future of a business. But what .trust is a privileged observatory that includes only do they mean for businesses in concrete terms? How companies that have been able to stand out because can businesses use these elements to strengthen their of their commitment to transparent digital corporate business and to elicit trust? communications. We started with a sample of 55 of Switzerland’s largest listed companies, and only 28 made .trust makes sense of new the cut (see page 11). trends and gives companies This research endeavour is borne of 15 years of building blocks for effective experience in Lundquist, gained by listening to the needs corporate communication of companies and stakeholders alike, and consulting listed and non-listed companies in Switzerland and across Europe to better their corporate communications. HOW COMMUNICATION GENERATES TRUST How do you create a credible communications strategy in the eyes of stakeholders? DISTINCTIVENESS (STRATEGIC AND ENGAGING NARRATION) As a starting point, there needs to be a strategic message that makes sense of the company’s Making sense of data and major commitments and strategies, what we concrete actions have termed a “line of sight”. Making commitments concrete This alone is not enough, concrete examples of initiatives and the way a company works, as well as transparent communications of the results of SUBSTANCE (DATA AND CONCRETE EXAMPLES) these efforts are fundamental in substantiating a company’s narrative. 4 lundquist.trust COMMUNICATING WHAT MATTERS: A WINNING STRATEGY STRATEGY AND VISION AS A GUIDE FOR COMMUNICATION .trust rewards companies that are able to demonstrate how their mission or purpose are connected to the business, their strategy, and the way they operate. It is not enough to declare a strategy, but it must be substantiated to be credible. This means including concrete facts and data which provides more clarity about the company than any lofty statement could. Companies that are most convincing are also those that balance their communications strategy between clarity and engagement. 1 Further details on page 12 GIVE MEANING TO INNOVATION AND SUSTAINABILITY Leading companies in presenting innovation and sustainability projects that are consistent with their business strategy, vision, and mission. Substantiating these commitments involves providing concrete examples of initiatives, possibly supported by stories and articles (i.g. the circular economy, investments in local communities, digitisation, etc.). Further details on page 15 2 MOVING PAST THE “LIKES”: MANAGERS AS INFLUENCERS ON COMPANY TOPICS Companies that want to make a clear stand and have their voice heard would do well in having their CEOs act as flagbearers for company themes, especially when it comes to social media. What’s more, highlighting company leadership on corporate sites goes hand-in-hand with creating a more personalised and believable approach. 3 Further details on page 16 STORYTELLING: FROM A GOOD STORY TO SUBSTANTIVE NARRATIVES For users to feel more engaged in company themes and messages the expectation is for companies to concretely narrate their strategic experiences in terms of impacts, innovation, and transformation. A step above such storytelling would be to address the external realities and context the company operates within, using a tone that humanises companies’ efforts. Narrating the company’s vision, addressing hot topics, and creating an engaging story are the 3 basic elements for successful storytelling. Further details on page 18 4 AIDING UX WITH STORYTELLING Effective content presentation can truly bring companies ahead of the game when it comes to gaining public attention and recognition. A company’s communication style is defined by its visual communication, language choice, page organisation (an interaction between page structure and design with content and meaning), and mobile navigation, all elements that create a good user experience. 5 Further details on page 21 5 THE ELEMENTS OF SUCCESSFUL CORPORATE COMMUNICATION We evaluated corporate websites, social media channels, and Wikipedia presence, focussing the entire research around two fundamental pillars for creating trust and communicating the company’s leadership: “Substance” & “Distinctiveness”. These two pillars, Substance and Distinctiveness, are then divided into a total of 10 subsections, composed of over 170 individual evaluation criteria that award a maximum of 100 points. The reasoning behind our decision to focus on these two pillars as fundamental aspects in the creation of trust and leadership, is as follows: Substance: evaluates a company’s ability to provide a forward-looking and integrated presentation of its purpose. This should then act as a common thread weaved through the business strategy, sustainability commitment, and innovation projects. Moreover, the way in which company management is able to channel these messages and reinforce company leadership is fundamental. Distinctiveness: evaluates the way in which the company presents its substantive content, if they are able to create an effective narrative and use storytelling to engage their users and stakeholders. We take into consideration elements such as the use of stories, case studies, effectiveness of language and visual communication, the coherent use of social media, and good user experience (on mobile devices as well). 6 lundquist.trust SUBSTANCE 1 . PROJECTING THE COMPANY IDENTITY How companies express their identity through a mission or vision that acts as an underlying theme throughout the entirety of the company’s narrative. 2 . DESIGNING THE FUTURE OF THE COMPANY The future vision for the company is clear and concrete within the presentation of the company’s strategy and approach to innovation. 3 . CONVEYING SUSTAINABILITY EFFORTS The company presents key information, including approach, material issues and stakeholder engagement, data, goals, and reporting. 4 . DEMONSTRATING LEADERSHIP The opinion and visibility of company leadership is highlighted on the site and social media to engage stakeholders. 5 . ATTRACTING TALENT A detailed overview of what it is like to work at the company in addition to information on job openings and recruitment. 6 . COMMENDABLE CONTENT Extra points for companies that go the extra mile with out-of-the-box content. DISTINCTIVENESS 1 . TELLING STORIES & TAKING A STAND The company’s ability to present itself and its business through visual and textual narrative elements. 2 . BEING OPEN TO ENGAGEMENT Openness towards the public: company contacts and activity on various social media channels to engage in dialogue with company