How Can You Protect Your Business Value?

  • Trends
    Reputation
    Polarization
    Risks
    Diversity, Equity & Inclusion
  • Sector
    IT and Communications
    Lifestyle
  • Countries
    Global
Nov 14 2024

Nowadays, every interaction feels like a battleground. The current landscape of public discourse has evolved into one of constant confrontation. Whether it’s the fleeting tension of a tweet, a heated exchange on TV, or even a trivial but anxiety-inducing wait in line at the bakery, conflict has shifted from the exception to the norm. And topics like politics, religion, or sports, once catalysts for constructive dialogue, have now become triggers for increasingly aggressive and violent conversations.

This omnipresent polarization divides opinions and intensifies our thoughts and emotions, turning a simple disagreement into visceral rejection. And as if ideological schisms weren’t challenging enough, we also face increasing emotional polarization. We know conflicts may stem from ideological differences, but intense and often extreme emotional responses can also fuel them. This emotional aspect of polarization adds complexity to managing communication and public relations. It requires more sensitivity and flexibility in strategies to connect with stakeholders and lessen the impact of these emotional tensions.

Take the United States, for example, where the political landscape is so polarized that entire communities debate whether polarization really exists in the country. On this matter, the Carnegie Endowment for International Peace has published a paper addressing potential solutions. “Although Americans aren’t as ideologically polarized as they think, they are emotionally polarized (affective polarization) (1),” states the paper. “In other words, they dislike the other political party members.” Let’s put aside politics, where division is even expected.

Almost every major event has the potential to become a battleground for conflicting ideologies. The 2024 Paris Olympic Games ceremony was no exception, highlighting several controversial dynamics in modern social communication. Some saw the ceremony as a showcase of cultural pride and international unity. In contrast, others viewed it through the lens of economic costs, religious beliefs, political implications, or gender identities and sexual orientations.
 

The emotional dimension of polarization adds another layer of complexity to communication management. It demands greater sensitivity and agility in strategy to connect with stakeholders.

 
Even Hollywood celebrities can spark division. Last August, actress Blake Lively found herself at the center of a Vogue Spain article (2) titled “Blake Lively and Her Reputation Crisis During the Tumultuous ‘Breaking the Circle’ Press Tour” The article focused on the polarization generated among her fans due to her behavior during the film’s promotion. Critics argued that instead of being a vocal advocate against gender-based violence, in line with the film’s central theme, she focused on promoting her role as a businesswoman and fashionista, igniting a firestorm on platforms like X and TikTok, even among her followers. This shows that polarization is no longer just a phenomenon between allies and detractors, but can also cause division among supporters.

Polarization has been a constant societal issue, but as we’ve seen, the interconnected nature of social media has exacerbated it, allowing polarizing voices to join forces and amplify their divisive messages.

Naturally, organizations and companies are not immune to this phenomenon. In fact, they are constantly under society’s scrutiny. In this environment, businesses must be prepared to overcome these challenges while taking steps to avoid alienating more stakeholders. Safeguarding businesses in today’s climate requires a focus on reputation.

How are a company’s actions impacting its reputation? How well-prepared is it to handle critical situations arising from potential polarization? The rules of the game have changed, and traditional management styles may be unable to keep pace. Companies need to recalibrate when and how to make themselves heard. There are two paths: Resilience and Antifragility, which shouldn’t be mutually exclusive.

The path of Resilience means being able to adapt and recover from adversity. It also requires

  • During quiet times, it’s essential to equip the company to recognize and analyze warning signals, maintain control, and respond quickly and effectively when necessary. This involves not only having a clear understanding of potential risks but also having action plans in place to help mitigate them.
  • Engage in active listening to ensure the company understands the diverse perspectives of its stakeholders. This process enables the company to collect feedback from various perspectives, predict potential issues more effectively, and proactively address concerns.

 

Companies must be prepared to face these challenges strategically. The goal? Avoid alienating more stakeholders while protecting and strengthening corporate reputation.

 
An Antifragility strategy requires the company to thrive and grow in volatile contexts, so the company doesn’t freeze in the face of this downpour of risks, falling like Tetris blocks.

  • Leading corporate communication is essential, as the worst-case scenario is facing a risk without a reputational buffer. At the very least, a strong reputation gives the company the benefit of the doubt.
  • Investing in initiatives that bring the company’s purpose to life, prioritizing these over short-term gains.
  • Applying a Brand/Reputation systemsthinking approach helps the company identify opportunities to develop its storydoing, which should align with brand pillars (Personality, Promise, Culture, and Purpose) and reputational drivers (Personality, Promise, Culture, Purpose, and Contribution).

In order to gain positive recognition from stakeholders, it is crucial to establish a reputation based on responsible and sustainable management. This requires deeply integrating a model that reflects the concerns of our stakeholders into every decision made. Companies that effectively align their corporate values with the expectations of their audiences will not only survive but thrive in our increasingly polarized environment. In a world where division and conflict are on the rise, organizations that demonstrate adaptability and strategic alignment will be the only ones capable of successfully navigating these turbulent times.
 

The real challenge in gaining the trust of our stakeholders lies in building a reputation grounded in a management model that is inherently responsible and sustainable.

 
(1) Polarization, Democracy, and Political Violence in the United States: What the Research Says
(2) Blake Lively y su crisis de reputación durante la tumultuosa gira de promoción de ‘Romper el círculo’

Sandra Ortiz
Sandra Ortiz
Peru Corporate Affairs Senior Director at LLYC

Sandra leads and hones corporate communication and crisis management strategies at LLYC Peru, both internally and externally. With over a decade of experience in reputation management, communication, and crisis consulting, she has worked at the Peruvian Superintendence of the Securities Market and a major auditing firm. She began her journey at LLYC in 2011 as a Consultant, rising to key positions like Public Relations Coordinator and Crisis & Litigation Manager. Sandra holds a degree in Communication and a Master’s in Media Practice from the University of Sydney. Her expertise includes developing communication strategies across various sectors, strengthening organizational reputation, and offering solutions to challenges in the Peruvian market. [Peru]