This story was from the July issue
Companies both large and small are continuing with their global expansion plans, despite the economic conditions, according to an investor intentions survey by the Financial Times’ fDi magazine.
fDi found that more than half of the 150 multinational companies surveyed were planning to increase their investments in Asia over the coming year, and more than one-quarter were planning to increase investment in Europe.
“We look at globalisation far beyond cost and labour arbitrage, but rather tapping into global growth, innovation and talent,” Wim Elfrink, Cisco’s chief globalisation officer, told fDi.
The survey found that investment in 2009 will focus on R&D, sales, marketing and support. Jean-Philippe Courtois, European president of Microsoft International, said the firm would continue to invest in R&D.
“We firmly believe that companies who invest in innovation during tough economic times will achieve a significant competitive advantage in the longer term,” he said.
At the same time, however, a report by McKinsey shows that there is now increased pressure on companies to protect their reputation, not only because of the battering big business has received in the press in the aftermath of the global economic crisis.
A number of factors have converged to force companies to rethink their reputation management strategies. The speed and severity of the recent economic crisis is certainly one factor, but there are others that are equally as significant. Namely, the growth in importance of NGOs, the social media tools that promote interactivity and increased scrutiny and the declining trust in advertising.
The report recommends widening the burden of protecting the company’s reputation outside the central PR function. Engaging NGOs, journalists and other key opinion leaders in an open and honest conversation about the company’s goals and performance is essential. Likewise, actively participating in online conversations with customers in order to better understand their outlook and concerns will have to become a key focus for all senior leaders and department heads.
Increased transparency is the only way to protect and nurture a company’s reputation and indeed the global business climate will demand such transparency in years to come.
Conversis comments:
Well, I have to admit, my PR team has grown. It now includes every person I employ. Of course, this has always been true for client-facing employees, but I have now let loose all my staff on Twitter. They’re tweeting away for Conversis, sharing their expertise and engaging in conversations with clients and potential clients. And that’s just the beginning…
Read more:
‘View from the top’, fDi Magazine, 12 June 2009
© The Financial Times Limited 2009
‘Rebuilding corporate reputations’, The McKinsey Quarterly, 2 June 2009
© 1992-2009 McKinsey & Company
