The Value of Storytelling
Picture this:
Four MBA classmates and I are sitting in a large, somewhat imposing corporate conference room at one of the world’s largest chemical and gas manufacturers.
In front of us sit 12 Director and C-level executives from our client company, and they’ve come here specifically to hear what we think – as MBA students, as potential employees and investors, and as concerned citizens – about their current sustainability reporting materials.
After four months of intensive learning about best practices in CSR reporting – as well as doing a deep dive into this company’s business and industry – we developed a set of recommendations that really centered around the following:
A successful CSR report doesn’t just tell impact – it tells stories.
Granted this is an oversimplification, but not by much! From what we could gather, it’s clear that this company is committed to not only reducing its own carbon footprint but also that of its customers. When it comes to being an environmental steward and good corporate citizen, this company is doing lots of things right.
Yet, all of this great work had been lost on us initially as readers; in fact, it wasn’t until just days before our presentation that we realized how stellar this company really was.
How could this have happened? How, after hours and days spent poring over their sustainability documents, could we have possibly missed the point?
It comes down to communication. While this company was obviously successful in its sustainability efforts, it had done so little to communicate its story that we’d almost missed it entirely.
With that we presented a number of recommendations on how to present content and provide context in ways that are engaging, interactive and customized for stakeholders.
At the end of the presentation, during the Q&A period, one of the executives asked: “Why does it matter if we don’t tell people about what we do in sustainability. Isn’t it good enough that we do something at all?”
To that our team answered an emphatic “No”. It’s not enough to just do something.
Sure, comp
anies need to be mindful of greenwashing. Consumers can certainly smell insincerity from miles away - and these days they’ve gotten even better at sniffing out fake green marketing claims.
Nonetheless, it seems to me (and others out there) that this concern about greenwashing has gone too far. In fact in some cases, greenwashing worries are actually holding companies back from saying anything at all about sustainability – mainly for fear that someone, somewhere will find something to criticize.
Ladies and Gentlemen of Corporate America, take note:
A fear of greenwashing is not an excuse to stop you from telling your sustainability story!
In fact, by effectively communicating a company’s CSR successes – and, crucially, also its shortcomings – in authentic, transparent and collaborative ways, a company can achieve an array of benefits, including (but certainly not limited to):
- Proving to investors that it’s focused on the long-term viability of the business
- Giving consumers a voice and a stake in the company’s efforts to improve communities and the environment
- Demonstrating to its employees that the company’s values and culture are aligned with their own
- Engaging NGOs, the media and potential detractors in conversations around the company’s sustainability process, goals, and strategies.
By not focusing on the manner in which it told its sustainability story, our client company had inadvertently left very real value on the table – value that instead was being captured by competitors who had done a tremendous job on both the reporting and storytelling fronts.
Now, don’t get me wrong – to have a successful CSR program, a company surely needs to know its footprint, set strategic and forward-thinking goals, and report its numbers.
But to be a true leader in sustainability, a company must be able to go beyond its numbers and move towards an inclusive, engaging and heartfelt discussion with its stakeholders about its current sustainability journey.
In my research, I came up with a couple of good examples of companies that tell their sustainability stories in compelling ways (Cadbury, Shell, and Timberland, just to name a few). What companies do you think are doing a good job of communicating the story behind the numbers? I’d love to hear what you’ve found.
Great post Ashley but with one warning to highlight. The variation in quality of CSR and sustainability reports is as wide as the topics they attempt to cover. I agree that a good report should engage but there is growing concern about the vailidity of story based content.
With books like ‘One Report’ by Robert Eccles due out soon and increasing demand for meaningful reports across a diverse audience, and in particular, a still sceptical mainstream investment community. Different stakeholders need different information, presented in an appropriate format.
I’m certain integrated reporting will evolve and could potentially become complimentary to a narratively structured additional communication route, but not a traditional CSR report as we have known them.
Hi David – thanks so much for reading and for your spot-on comment. You’re right: storytelling is not a substitute for substance, and to be credible a company must actually have a program to back up its communication materials. And you brought up an equally important point about segmented or targeted communications for different audiences – this is especially crucial as different stakeholders need and want different information (and they want to find it quickly and easily!).
I’m still new to the world of CSR reporting but it’s interesting how much conversation is happening around the future of reporting – what works, what doesn’t, who’s leading the way, etc. With such an evolving field, it’s no wonder there’s still some gray area around best practices – and when you add to the mix the fact that each company is unique in its sustainability goals, practices and strategy, it gets complicated quickly. Regardless of whether it comes embedded in an actual report or as a page on a corporate website, I do still believe that effectively communicating the story behind the numbers will be crucial for companies that want to connect with consumers, reassure investors and engage their communities over the long term.
Thanks again for your thoughtful comment!
Loved your article (of course) Ashley. You’re right, this is a hot topic right now, and there isn’t a clear way forward. It seems we’re still in the early stages of adoption and adaptation. Kind of like the wild west for CSR and for reporting on it.
But I think your main point of communicating the story is absolutely essential. Right now, there’s a ton of good work happening, and that has merit on it’s own. But telling the story creates a greater momentum within society and embeds the changes within the conversations of citizens. Until that happens, CSR is remote and lacks an essential experiential quality. We have to be able to tell stories about it. That’s how ideas become actions, and ideologies become movements.
To David’s point, the right format, with the right content for the right audience is also essential. Reducing Shakespeare to bullet points is… dumb. But so is wasting inspirational stories by burying them within excel spreadsheets. CSR reports will evolve, but companies need to outgrow the need to squash these wonderful stories into financial reporting formats. Each genre deserves it’s own form.
I do believe that CSR needs to show up as a key methodology of business strategies/operations. But it demands more than what a jimmy-rigged financial format can allow.
So, like the wild west (too american??) we need some innovation and invention. And companies need some guts to do it differently than they have done in the past.
No guts, no glory! No stories, no revolution.
Thanks Chris – a terrific comment and I love the idea that we’re in the “Wild West” of CSR reporting! In the end, stories clearly must be balanced with true, substantive programs and outcomes. But, in my opinion, how you communicate those outcomes – in ways that are authentic, interactive, and engaging – is what really separates the leaders from the rest of the pack.
Interesting thoughts from you all. As ever, the problem is trying to produce one document to satisfy such a varied range of audiences.
I was just writing a blog post (to be published soon here: http://www.lundquist.it/blog/) about the merits of web-based reporting. At Lundquist we’re big fans of the internet for CSR communications. Adopting the corporate website as the natural place for CSR reporting (rather than just transposing a book-like document into web content once a year) brings significant advantages from a communications point of view. In terms of what are saying, Ashley, it allows companies to present stories in the form of case studies, video, images, etc. or even to get stakeholders to send in their own stories (see Nestlé’s CSV channel on YouTube for employees to submit their own stories about working on CSR initiatives).
Other parts of the website can be used for the more technical, data-driven parts of CSR communications. Even here, interactive charting functions can help draw the trends out of what might just seem like a wall of numbers.
Finally, I hear what you say about the fear of accusations of greenwashing. But companies must really take into account the vast amounts of scepticism with which their claims to “sustainability” or “responsibility” are met.
hiya… I agree that storytelling is a very effective way to get a message through. But I dont think that storytelling is what makes the differencein the case of sustainability reporting, though it can certainly enhance. The real difference is made when a Company knows what its sustainability program is all about (Plan A, Changing Diabetes, Ecomagination…ring any bells? …and yes even CSV of Nestle) and brands it with a concept which is rooted in materiality and writes the report around that concept, using data and reporting indicators to support the key message. Most Companies think Sustainability Report is the title. But actually this is the subtitle. The real title is the story. Once you know the real story your Company wants to tell, the report falls easily into place, in online or in print format, with or without storytelling.
elaine
http://www.csr-reporting.blogspot.com
Great post and interesting dialog in the comments! I think companies (and people) need to remember that CSR reports should be one component of a broader CSR communications strategy.
The report definitely serves a purpose (at least I hope it does, otherwise years of my career have been worthless!), but companies should remember to tell stories through other vehicles. Where in the marketing mix does it make sense to touch upon a sustainability program? How much should a company discuss community investment on its corporate website? What volunteer stories are appropriate for recruiting brochures?
I’m guilty of trying to bring stories to life through a traditional CSR report, but that’s because we often don’t have the relationships (or resources) needed to influence other communications pieces. But in my opinion, reporting should be only one piece of the communications puzzle!
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Hi James, thanks for your comment and I’ll be sure to check out your blog post! You’re right – there’s a lot of opportunity that opens up when a sustainability report goes online. Not only can the content be more engaging and interactive, but like you said, the data side of the report can be turned into chart generators and dashboards that allow visitors to create customized, relevant information that matters to them. Thanks for again checking out The Changebase!
Hi Marcus – great point about sustainability reporting/communications being just one bucket in the overall marketing and communications mix.
Ideally everyone would be talking about these issues because they affect the business on so many levels (like you said, marketing campaigns, community investment, recruiting/HR etc). And yet I’m sure it’s easier said than done! My sense is that this is where the job of the CSR Director becomes about building relationships cross-functionally and making the case about the value of CSR on a business level. I can only imagine that this takes time, effort, and probably some real frustration. But it’s amazing and incredibly gratifying to be in a room with people (like in my experience that I wrote about above) where the light bulb goes on and suddenly – they get it!
Thanks as always for your thoughtful comments.
Hi Elaine, such a great point! One of the biggest recommendations we left our client with was the idea that there should be one cohesive, forward-looking story that tells the overarching theme for the report. In this company’s case, they hadn’t done that – so their reports (all 4 of them!) felt disjointed and disconnected, which only left me as a reader feeling more confused. And it’s so true about the story and the material issues/data reinforcing each other. In the end, if a company has a real CSR strategy, with strong metrics and goals in place, the narrative that the company uses to tell its sustainability story will naturally follow.
Thanks so much for taking the time to comment, and for providing your own blog as a resource for learning about CSR reporting. I’ve used it many times as a reference myself!
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Ashley,
Great article. The value and impact of story is so often missed by corporations. Daniel Pink’s Whole New Mind really speaks to this. Value is derived from our ability to connect. We are living in a conceptual era.
I’d like to echo and enhance Elaine’s comment about how a story can demonstrate a company’s true understanding of sustainability. The more aligned the CSR work is with the core competencies of the company, the better that story will become and the results that come from it.
In addition, story creates attachment points for employee and community connection. It inspires people. Human beings are social creatures.
The interesting thing is that on some level, the whole point of CSR is about making companies more humane, or at least documenting attempts to to right.
The need for story and data lends well to the online CSR and interactive csr format. I wonder what would happen if online CSR reporting became like a wiki with interactive ability. In some respects this speaks to the discussions last Fall about whether CSR managers should blog.
Matthew Rochte
CSR/Sustainability Consultant
OpportunitySustainability.com
Hi Matthew, thanks so much for your comment. You’re so right about the alignment of CSR story and strategy. A well defined and implemented CSR strategy most certainly reinforces and enhances the corporate strategy, and the resulting stories that come through this inherent alignment not only enhance the company’s actual commitment to sustainability but also strengthen its “fan base” of employees, consumers, and community. It’s really a win-win.
And I love your idea that “value is derived from our ability to connect”! So true!
Thanks again for visiting The Changebase.
Spot on, Ashley — and often there are multiple stories to tell that may be relevant for different audiences. Moreover, with interactive technologies, you don’t need to leave much out — just need to structure the information in a way that what’s most relevant is immediately accessible; and everything else is placed in an information architecture that’s user friendly and allows “drilling down” for additional details. Finally, the folks producing the reports should be sure to team with their communications and marketing departments to discuss how best to spread the stories, as well as get feedback from stakeholders; and possibly produce employee guides for living and sharing the stories in daily interactions with other stakeholders and through social media, of course.
Hi Perry, all great points. I especially like the idea of interactive reporting/storytelling – for example, a Build Your Own Report functionality on a company website. Like you said, it allows for customization of relevant content and easier navigation. All good things!
Thanks for checking out The Changebase and for your thoughts!