Australian businesses face significant challenges in maintaining reputation relevance due to rapidly evolving stakeholder expectations, according to a newly released report by strategic communications agency Sefiani. The 2024 Communication that Matters Report, entitled “Reputation Relevance: Evolving the Corporate Self,” highlights the gap between corporate intentions and stakeholder perceptions.

The report indicates that while 93% of Australian brands have recently updated the approach to executing their purpose or mission, many lack sufficient insights into what matters to their local customers and stakeholders. The study, conducted by global research firm Censuswide, surveyed 100 marketing and communication leaders holding senior positions in Australian businesses. It found that only 30% of these businesses have comprehensive buyer personas and audience insights for all their stakeholder groups. Further, 49% rely solely on global insights, which do not accurately capture the nuances of the Australian market.

The report points out that companies tend to prioritise financial metrics over broader audience needs. It revealed that nearly half of the respondents, 48%, consider investors and C-suite leaders as their primary communication stakeholders. In contrast, only 18% prioritise customers, 5% focus on the community, and a mere 2% consider employees and future talent as priority stakeholders.

The report, which features contributions from communications leaders at prominent Australian organisations such as IKEA, Docusign, and the Parramatta Eels National Rugby League Club, aims to guide businesses in effectively communicating their brand purpose and mission.

Patricia Routledge, Country Communications Manager for IKEA Australia and New Zealand, described the importance of local insight in shaping their brand strategy. “Our business idea and vision have remained consistent for nearly a century, but our positioning and impact on our vision are driven by local insight. This method extends to our products, business model, and advocacy work,” Routledge said.

Technological advancements, sustainability, and economic instability are the primary drivers prompting businesses to revise how they execute their brand purpose and mission. According to the report, 58% of marketing and communication leaders identified technological changes as a significant factor. Sustainability and economic instability were both cited by 41% of respondents. The expectation is that a purposeful service aligns with positive business outcomes, such as increased sales, investment, and favourable stakeholder feedback.

Mandy Galmes, Managing Partner ANZ at Sefiani, stressed the long-term implications of disregarding evolving customer needs. “Ignoring changing customer needs can negatively impact long-term performance. How can a brand’s products and services remain relevant if they’re unaware of current and evolving stakeholder needs?” Galmes questioned. She advocated for using up-to-date, local insights to drive the development of purposeful products and services that align with stakeholder expectations to build stronger reputations and boost financial performance.

Robyn Sefiani, President ANZ & Reputation Counsel at Sefiani, underscored the consequences of misalignment between a company’s purpose and its actions. “In the past year alone, we’ve seen examples of misalignment between purpose and action significantly impacting corporate and brand reputations,” she noted. “Reputation is arguably a company’s most valuable asset. Without genuine stakeholder insights, Australian businesses risk disconnecting from their audiences, potentially eroding trust. Companies must demonstrate an understanding of their stakeholders’ needs and experiences to tangibly support them into the future.”