What if a single social media post of yours led to accusations of – and investigation into – greenwashing?
It’s something I know many leaders are wary of in the wake of the ACCC’s stern warning.
“Businesses using broad claims like ‘environmentally friendly’, ‘green’, or ‘sustainable’ are obliged to back up these claims through reliable scientific reports, transparent supply chain information, reputable third-party certification or other forms of evidence.”
Your online comments are under the microscope, too.
For anyone already anxious about what they should say or do online, this crack down is yet another level of scrutiny to consider in your comms. Social media critics are one thing – regulators, another.
So should you ‘avoid risk’ by avoiding social?
Is it safer to say – nothing?
The truth is, there’s another, far more prevalent risk scenario here. One that very rarely gets the attention it deserves.
Silence.
It goes without saying – no leader wants to post something online that causes outrage, fines or a sell down. But, in most cases, the likelihood of that scenario is minimal at best.
The overwhelming majority of executives hold their position due to sound judgement and expertise practiced over many years.
Rather than making a bad call, it’s more likely – and more damaging – to make no call online. A risk more than half of all ASX200 CEOs are facing, according to our research.
As Vanessa Liell, Partner at Orizontas, shared in a recent chat about ESG: “The real risk that leaders and organisations face now is inertia.”
Why inertia?
When you do or say nothing, you relinquish control of your narrative. Silence from leadership leaves gaps that will be questioned – or filled – by others. Activists, for example.
The most effective risk mitigation strategy any leader can have right now is participation. Take back control.
How?
Through purposeful, consistent, transparent and considered communication online – led from the top down, backed by sound policy and authentic actions.
ACCC CRACKDOWN: WHAT YOU CAN DO.
Warnings like the ACCC’s serve as a timely reason for everyone to review online strategy, policy, governance and internal processes.
To help you kick start this conversation with your team – or around the boardroom table – here are some questions and actions to consider:
Are your executive teams’ online efforts a true representation of your ESG strategy? When key stakeholders look at what you and other leaders are doing online, will they see the evidence and integrity of your ESG strategy? Or are there gaps that will lead to questions or distrust?
Are ESG claims made online accurate? Has your team audited any ESG claims made online – by you or your brand – against the key issues identified in the ACCC’s sweep (p. 8-11). These include:
– Vague and unqualified claims;
– A lack of substantiating information;
– Use of absolute claims;
– Use of comparisons;
– Exaggerating benefits or omitting relevant information;
– The use of aspirational claims, with little information on how these goals will be achieved;
– Use of third-party certifications; and/or
– Use of images which appear to be trustmarks.
Are you being consistent? Are any ESG claims communicated online through your brand or more traditional channels – website, annual reports – also reflected by what you’re saying and doing online?
Are you being watchful? Ask those managing your monitoring and moderation workflows to assess their breadth, accuracy and efficiency. And to keep an eye out for signs of unwarranted activism.
When striking the balance between communicating progress and mitigating risk feels uncomfortable, I encourage you and the team to resist the urge to stay silent online.
In my recent AICD article, I applauded the efforts of Medibank CEO David Koczkar who remained visible and accessible online during the business’ cyber attack last year. Actions like his – and fellow leaders who seize the opportunity to control their narrative – invite far less risk than many imagine.
After all, the choices leaders make on social media today have a direct impact on where people invest tomorrow – both their hard-earned cash and their careers.
Silence, not participation, is the far greater risk.
Take care,
Roge
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