As social value plays a growing role in consumer and employee decision making, companies claim to care about everything from mental health to financial wellbeing to inclusivity in a bid to attract and retain talent, and ultimately to generate more business. Phrases like “we care about employee mental health” or “we prioritise the wellbeing of our workforce” have become commonplace in both internal and external communications. However, the reality is that there is often a lack of substantial action to back these phrases up, creating a lack of trust and sometimes leaving company culture worse off than it was before. A recent survey* on mental health demonstrated the impact that washing could have on a company’s culture, with 79% of UK employees not believing their employers when they discuss or promote their mental health initiatives.
The problems with ‘washing’
The consequences of ‘washing’ in any form are far-reaching, ultimately impacting a company’s overall business resilience by damaging employee and customer relations. When companies overegg their social and governance credentials, employees initially hopeful about positive change will quickly become disengaged and trust in the leadership team will rapidly erode. This will result in an organisation where employees don’t believe in the company, decreasing engagement and ultimately leading to higher turnover. More importantly, ‘washing’ perpetuates the broader idea that words are more important than actions – the very opposite of a supportive and healthy work environment.
Breaking the ‘washing’ cycle
In order to move away from unsubstantiated rhetoric, companies clearly need to focus on changing how, when, and what they communicate. This starts with consistent communication.
We generally see a spike in company’s communications on a certain issue around specific awareness days or following wider criticism of those particular issues. Rather than simply focusing on these awareness events, companies should decide what issues are important to them, and advocate for them all year round.
Communications also need to lay out their initiatives honestly, acknowledge the challenges with what they are currently doing, and outlining concrete plans for improvement. A recent study showed that 70% of consumers spend more with authentic brands. This means that companies won’t be punished for honesty, but instead foster trust, encourage an open dialogue, and develop loyalty from both their employees and their customers.
For internal communications, companies need to ensure that they involve employees in decision-making processes to do with wellbeing and other ‘S’ and ‘G’ initiatives. Part of the reason ‘washing’ is such a large problem is because of the lack of transparency and trust it creates. By involving employees and actively seeking feedback, companies are building trust rather than breaking it.
This means regular communication with employees, using tools such as anonymised pulse surveys and sentiment analysis. Technology is a useful tool for facilitating this, with best of breed platforms providing a direct and accessible means of engaging with employees, letting individuals hear about initiatives to improve their wellbeing in real time.
Finally, and perhaps most obviously, companies must ‘put their money where their mouth is’ and invest in the initiatives and causes they promote. This might mean talking less and doing more – it is critical that their actions align with their communications. In the long-term, this is what a firm’s employees and customers will value, and is what could improve their business as a whole.
Authentic corporate responsibility goes beyond rhetoric, creating a workplace where employees feel valued, supported, and empowered. By embracing genuine initiatives and advocating for systemic change, businesses can foster a positive work culture that benefits everyone involved.
*Research by MHR
