Forget Influencers, We Need More Diplomats

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Forget Influencers, We Need More Diplomats

In today's interconnected marketplace, brands are increasingly held accountable not just for their products and services, but also for their values and actions. This shift necessitates a strategic approach known as brand diplomacy, which focuses on building and maintaining relationships with customers, shareholders and partners through tact and mutual respect. This is one way to mitigate reputational risk.

Brand diplomacy emphasizes good manners and trust over traditional marketing or public relations efforts. Key disciplines include:

  • Informational skills: Effective communication, critical analysis and cultural awareness.
  • Relational skills: Collaboration, composure and relationship management.
  • Operational skills: Advocacy, management and innovation.

 

Brand diplomacy involves engaging with stakeholders in a manner that fosters long-term loyalty and mitigates potential risks. This approach is particularly vital in an era when social media amplifies consumer voices, enabling collective action that can significantly impact corporate policies. By integrating these disciplines, organizations can manage brand risks and foster positive stakeholder relationships.

Some brands are better than others
Patagonia, for example, is an overtly political brand. It makes no apologies for its stance on sustainability and climate change. It even went out of its way to live those values by refusing to provide corporate branding for organizations because it reduced the value of the clothing in the resale market, thus polluting the planet. On the other hand, Bud Light experienced social media backlash for an Instagram influencer campaign and its response was to fire executives, change corporate policy and disappoint customers, suppliers, distributors and employees. Some brands are better at diplomacy than others, but firms can learn the skills needed to navigate these roads.

Develop your brand diplomacy skills
Firms can develop brand diplomacy skills by understanding the environment they operate in through thorough research and analysis. Organizations should identify their strengths, weakness, allies and adversaries to leverage relationships effectively. They need to think strategically about stakeholders’ desires and motivations. Strategy decision-makers should seek common ground and be willing to make concessions to advance objectives. It’s also important to be mindful of timeframes, especially in crisis situations.

Assessing maturity
Organizations should assess the maturity of their diplomacy skills across informational, relational and operational domains, ranging from basic to expert levels. This assessment helps identify areas for improvement and ensures that the brand's diplomatic efforts are aligned with its strategic objectives.

In an environment where consumer expectations are evolving, brand diplomacy offers a pathway for organizations to build trust, foster loyalty and navigate the complexities of stakeholder relationships. By embracing the principles of tact and mutual respect, brands can not only mitigate risks but also position themselves as leaders in their respective industries with their stakeholders. For a deeper dive, please see Verdantix Strategic Focus: Mitigating Reputational Risk In The Age Of Social Media.

Renee Murphy

Principal Analyst

Renee Murphy is a Principal Analyst in the Risk Management practice at Verdantix. Her current research targets GRC, with a particular focus on the integration of ESG into GRC. Prior to joining Verdantix, Renee was Chief Evangelist at Diligent Software; she also worked at Forrester for a decade, where she was Principal Analyst, covering risk management, audit and sustainability management.