Heidi Verplank

Environmental, social and governance (ESG) issues are increasingly affecting organizations and reshaping how they communicate with stakeholders. Public relations plays a central role in translating organizational values into real action, ensuring that companies promote real ESG efforts.

As reported in an article from Cision, ESG interest has been rising recently, which means it is more important than ever for PR professionals to be proficient in this topic (ESG Communication Trend Report).

In an article for PR Week, Belinda Scot stated, “Whilst we all want to be seen as doing a lot of good, it’s important to be clear and honest about achievements” (Derrick, 2022)

When looking at past ESG issues that organizations have faced, a lack of transparency and accountability only made the problems bigger and more difficult for PR professionals to fix.

Adidas and Ye

A prime example of an ESG issue affecting an organization occurred when Adidas was forced to reevaluate their partnership with Ye following problematic words and actions. The Adidas and Ye controversy shows how quickly a profitable partnership can become a liability when the celebrity does not align with brand values (Adidas and Ye: An ESG case study).

In society today, brands are judged not only by their actions, but also those of people they associate themselves with. More importantly, organizations are judged based on how they react in the face of an ESG issue.

Flint water crisis

The Flint water crisis shows how ESG issues can directly affect human lives, not only an organization’s reputation. When leaders failed to prioritize safety and transparency, the issue quickly became both a public health disaster and a communication failure (Nowling & Seeger, 2020).

Ignoring stakeholders only exacerbates the problem, particularly when the issue at hand is one of public health.

Susan G Komen

When Susan G. Komen For The Cure cut off funding to Planned Parenthood for breast cancer screening efforts, they faced a massive ESG issue. Inconsistency within their communication about the policy change placed them in the middle of a political spotlight, making them look like they made this choice due to partisan pressure.

Susan G. Komen For The Cure reversed their decision only days later, which failed to combat negative sentiment since the organization now looked open to political pressure (The Politics of Pink). This case teaches PR professionals that their decisions matter, particularly when in reference to ESG issues, as they have large affects on both stakeholders and the current political landscape.

School Board FInancial Crisis

As we learn from the case of a school board who mismanaged millions of dollars in their budget, accountability to your stakeholders is a critical piece of public relations. Since school boards are run as both corporations and governing bodies, they face the challenge of balancing public opinion with policy.

The school board’s decisions directly affected their publics, so they were forced to deal with not only internal affairs, but also external communication through PR and taking accountability (Tracy, 2007). This case shows the importance of maintaining relationships with affected publics when dealing with crises regarding ESG issues.

Why should my organization care?

All of these cases show the importance of taking accountability, especially when the issue is a environmental, social, or governance crisis. These types of issues revolve around more than corporate reputation, but have the potential to affect stakeholders’ everyday lives.

Ultimately, effective ESG communication succeeds when PR efforts align messaging with action, turning into a sustained and healthy relationship with stakeholders.

Works Cited

Adidas and Ye: An ESG case study (n.d.)

Derrick, S. (2022, June 30). How to bridge the say-do gap in ESG and communications. PRWeek.

ESG communication trend report. (n.d.). Cision. https://www.cision.com/resources/guides-and-reports/esg-communications-trend-report/

Nowling, W. D., & Seeger, M. W. (2020). Sensemaking and crisis revisited: The failure of sensemaking during the Flint water crisis. Journal of Applied Communication Research, 48(2), 270–289. https://doi.org/10.1080/00909882.2020.1734224

The Politics of Pink: Susan G. Komen for the Cure Steps Into Partisan Minefield (n.d.). In Conflict management (pp. 213–230)

Tracy, K. (2007). The discourse of crisis in public meetings: Case study of a school district’s multimillion dollar error. Journal of Applied Communication Research, 35(4), 418–441. https://doi.org/10.1080/00909880701617133

KEYWORDS

ESG, Public Relations, Crisis Communication, Accountability