Corporate affairs faces an influence gap
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Getting comms leaders into the executive meeting may be the easy part — getting the rest of the company to act on their advice is harder.
Why it matters: The reputational risks corporate affairs leaders have to manage often originate in business decisions about products, jobs, technology and public policy.
- But spotting those risks early is only valuable if the business is willing and able to do something about them.
Driving the news: A new Edelman "Future of Corporate Affairs" report found that 78% of senior communications and corporate affairs leaders are involved at the earliest stages of decisions related to external issues, yet 55% say organizational silos still limit their ability to respond.
The big picture: The research highlights gaps between the responsibilities of corporate affairs and the systems supporting the function.
- 96% have crisis plans and 83% use risk monitoring, yet 39% say they lack the data and insights needed to fully understand external risks.
- Comms teams are increasingly expected to work across legal, government affairs, HR and operations, but responsibility for addressing issues spanning those functions isn't always clear.
- 73% say their current measurement approach doesn't capture the full scope of their work, while 51% struggle to directly link corporate affairs activity to business performance.
What they're saying: "Corporate affairs leaders spent years working to gain influence over the decisions that matter, and most now have it," Jonathan Jordan, Edelman's U.S. head of corporate reputation, wrote in the report.
- "But that influence has grown faster than the mandate, capabilities, and ways of working meant to support it."
The fine print: Edelman Intelligence partnered with Craig Carroll and the Observatory on Corporate Reputation, surveying 157 communications and corporate affairs leaders in June and July, followed by in-depth interviews with 10 communications and corporate leaders.
- Participants were C-suite or similarly senior leaders from large, established companies across industries. Most represented multinational companies headquartered in North America.
Between the lines: The challenge is twofold: ensuring communications counsel can influence decisions the function doesn't own, and demonstrating the business value of that influence.
- That requires clearer accountability and coordination across functions, so reputational risks identified by communications can actually influence business decisions before options narrow.
- It also requires a different approach to measurement — one focused less on media coverage and sentiment and more on decisions improved, relationships preserved and problems prevented.
Yes, but: Some of those outcomes are inherently difficult to measure.
- "A crisis prevented produces no recovery story. A flawed course corrected early may never become visible outside the room where the decision changed," wrote Gregory Gittrich, Edelman's global head of intelligence.
The bottom line: The proverbial "seat at the table" means little if communications teams can't wield their influence or prove its impact.
