COVID-19 is causing a level of turmoil, instability and crisis in the economic, social and political spheres that the world has not seen in a long time. All nations are struggling daily to understand and identify a “new normal”, with little idea as to what that might mean, so that the reactivation of activities and social dynamics allows us to move forward while the pandemic is brought under control. When approaching this new social and economic order, companies must adapt to reality both at an operational level and at the social and functional level, adopting social initiatives that demonstrate empathy with their stakeholders, to avoid a crisis of corporate reputation.
To do so they must evaluate the actions that will guide their brands, especially considering their target audiences, which are increasingly attentive to the behaviour of the brands they favour in these times of crisis. For this reason, it is vitally important to review and carry out initiatives that are consistent with the current situation, generating trust among the public so as to reinforce one’s corporate reputation, which will eventually make the brand stronger once the worst is over.
Actions showing shared values and social sensibility are necessary for companies in the context of a social, economic and political crisis. If a company’s plan of action is oblivious to what its audience is experiencing, the social backlash from consumers may trigger a reputational crisis that calls for much stronger and costlier measures.
Demonstrating that one’s brand values are aligned with a corporate purpose is as vital as the tangible assets of the company. Each decision reveals whether the brand reflects what it really is, so the message and actions related to the current health crisis must communicate and reflect what its consumers expect the brand to represent in society in order to avoid a corporate reputation crisis.
Thousands of companies throughout the pandemic have adapted and converted their production to include those products or services that society most needs right now. One example is Colombia’s sugar mills, which have been wholly redeployed towards the extraction of more than 250,000 liters of pharmaceutical alcohol, to combat potential shortages.
Another case to highlight is that of the Union of Peruvian Breweries which donated drinking water, typically used in their plants, to the municipalities of Lima and Ate, benefitting 3,600 vulnerable families in the midst of this pandemic.
Companies should always look to communicate messages that acknowledge the problem at hand, but in particular transmitting a positive message, either of unity or of hope, will be well received by your audience. The Confederation of Production and Commerce (CPC) of Chile, together with several leaders from different sectors of the country’s economy, decided to launch a private emergency health fund that can be accessed to face the crisis – sending a positive message of unity and support.
With ever-easier access to data and the immediacy of information, companies must develop their brand by increasing efforts to generate positive actions around the world, thus strengthening their corporate reputation, in order to create much more meaningful and lasting relationships with their audience, who increasingly expect companies to demonstrate ethical values that make a difference beyond commercial self-interest.
