Find the common thread in global communication

Communication World, Oct-Nov, 1998 by Diane Aboulafia-D'Jaen

An old Chinese toast is actually a curse: "May you live in interesting times."

These are interesting times. They present opportunities and challenges on a scale and scope never before imagined for professional communicators. Those who make the effort to understand what is happening and who are willing to rethink the role of communication in a global business environment are in for the ride of their lives.

But first, a look at the landscape:

Historical ethnic antipathies aside, the nations and economies of the world have become more interrelated over the past few years. Financial and political changes in one country usually have ramifications far beyond its own borders.

The effects of the 1997 run on East Asian currencies and the ongoing economic crisis in Japan have been felt in the U.S. and the rest of the world. The recent fluctuations in the U.S. stock indexes and the ongoing debate regarding whether we are witnessing normal corrections or the beginning of a bear market are evidence of that. Even such diverse and distant countries as Russia, South Africa, Brazil and Australia have been caught in the downdrafts of financial or currency volatility. On a global scale, the 1998 edition of the United Nations World Economic and Social Survey states that one of the "after-effects" of the currency crisis is that the world economy's rate of growth will show an estimated 16 percent decline for 1998, after two straight years of 3 percent growth.

Political instability in the former Soviet Union and the devaluation of the ruble have sent shockwaves of concern and uncertainty around the world. And meanwhile, no one seems to know how the new Eurodollar will be accepted in the European Economic Community or the effect it may have on international trade with (and within) EC member countries.

In addition to understanding the international implications of national political and economic events, communicators must also understand how people receive and process information from one market to the next. Advances in communication technology, ranging from cable and satellite television transmissions to cellular telephone capabilities to the Internet make the concept of time elastic. On the one hand, communication can be almost instantaneous via the Internet or cellular phones. On the other hand, because of ubiquitous cable television and broadcasts that rely on reruns and syndicated programming, some issues and subjects can have an extremely long shelf life.

For example, on a recent trip to Vietnam, I noticed on my hotel television set that an old segment of the U.S. Oprah Winfrey (TV) Show was being rebroadcast. The show was devoted to a controversial and inflammatory issue that involved a U.S.-based fast food chain. I had worked on this issue with the company and knew that it had been resolved a year earlier, but to the viewers of Star satellite in Southeast Asia, it was completely new information, as damaging to the company's reputation and as inflammatory as it had been initially in the U.S.

Even more than the rebroadcast of television, programming through the Internet has made the concept of targeted communication - or containment of an issue - seem like wishful thinking. A good search engine can find a wealth of information about any topic and any company virtually anywhere. A press release issued in Akron, Ohio, can be picked up by someone web surfing in Aleppo, Syria. A story (accurate or not) in a local newspaper can be called up and used as a source by a reporter - or by a government official or consumer - half a world away.

The common thread in all of this is that corporate communicators, operating in a local or multinational environment, are now being called upon to provide a global perspective on a broad range of issues that affect their company's bottom line.

Savvy companies realize that to succeed in today's world they will need to employ the arsenal of communication skills, disciplines, tools and technologies for issues that in the past might have been addressed solely by the government relations, legal or public affairs departments. They realize that communicators must be key players in positioning the company so that it can take full advantage of whatever opportunities exist or arise, and so that a buffer of goodwill provides some protection against the effects of potentially damaging situations.

Surprisingly, many of the factors that help companies establish a strong corporate reputation are consistent across international borders. Companies entering or hoping to expand their operations in new markets have found that it is critical to demonstrate how their presence will contribute to the local market. For manufacturing companies, this often means establishing a local plant to train workers in an industry sector and respond to protectionist sentiments. For service companies, such as banks, community outreach programs help to establish a favorable local identity.

In some countries good corporate citizenship is mandated. For example, Chile requires that a portion of each new foreign investment be deposited in the central bank for a set period of time. In other countries the requirements are less codified. In China, the expected role for large companies is that of a benevolent citizen who, in return for its contributions to society, is permitted to earn income in China. Several U.S. companies, including Levi-Strauss, Eastman Kodak and Coca-Cola, have initiated major programs that have had a beneficial effect on health, education or the economy.