Mallen Baker's Blog

Seeking the voice of credibility

5 Jan 2010

Here's an interesting idea from Centrica in response to one of the ongoing problems of corporate social responsibility reporting.

Here's the problem. Customers don't read CSR reports. By and large, they never will. But building credibility with customers is a key aim for any business. So the missing link is a breed of trusted, expert commentators who read the reports and then uses their judgement to tell the story.

Centrica, the UK energy utility, have obviously decided that the way to build trust is to cut out the middle man altogether. According to a recent item in the Financial Times, they are creating a panel of British Gas (their main brand) customers who can come into the firm, ask whatever questions they like, and then report back on their findings.

The public report part is the key. We all know the power of the customer voice. Since websites like Amazon began opening their product pages up to customer reviews, we have come to trust the voice of others - people like us - far more than we do the adverts or the experts.

So far, the voice of the customer has only been heard on products. But could there be a way to really use this power with the aim of producing a trusted voice on broader social and environmental responsibility?

It could work for Centrica if they used direct communication about the plan to all their customers - and guarantee to send the summary of the exercise - unedited but with responses - through the same channels. The obvious route is via the bills sent out to customers.

That would be a starting point. Then create a space for people to respond online. Centrica is pretty good on this already, with blogs and online chat sessions already hosted on their site.

It would be a brave company that did this in the way I've described, however. I don't expect to see it as a model any time soon.

Online is one thing. But a guaranteed direct channel to all other customers?

The alternative is a low grade public relations exercise. A number of customers are given insight into the company, invited to make a commentary, and this is publicised via a press release emphasising the positive.

The cynical will say that by taking ordinary customers with no input from expert commentators, the company has easily been able pull the wool over people's eyes and co-opt them to the cause.

The company will know that they are doing a lot more good stuff than customers usually know about, or give them credit for. And simply making this visible will have a positive impact on the people that get to see it.

Of course, the company runs the exact opposite risk. A panel like this could turn very hostile very easily - particularly given the recent history of dissatisfaction with energy pricing. That, of course, is why the company won't give its panel a guaranteed unedited line of communication to all customers directly. But that risk is where the trust is really developed.

The truth is that Centrica will gain more from the intelligence it gains about what customers want to know, what they think when they see the company from the inside and what impresses them, and what makes them angry. They should then use this intelligence to shape future comms with all customers. The public statement by the panel is nice, but it's not going to carry weight.

Customers won't trust an energy utility company just because other customers tell them they should. This is not about the public report, it's about the company learning from a key stakeholder, and using that knowledge to communicate better with them in the future.

We still need a new breed of trusted expert commentators who will read the reports, ask the questions, and then tell the stories of which companies are doing well, and which are not.

Unfortunately, as of today, the trusted people are not experts. And the experts are not trusted.

So well done Centrica for trying something new.

Tags: CSR reporting audiences stakeholders corporate social responsibility Centrica Mallen Baker

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