5. The power of corporate reporting: how to create stakeholder trust and build brand loyalty

Part 5 – Express the Brand Story

What attracts people to specific brands and companies? Compelling brand stories.

As Richard Branson said about Virgin, “We would be nothing without our story.”

A good brand story told in a simple and human way can convey the essence of the organisation’s brand purpose.

Stakeholders are no different. For years, corporate reporting has been the primary communication for a company to explain and illustrate who they are from a past, present and future perspective.

These days, a report needs do so much more. With increased disclosure requirements on governance and sustainability, many are in danger of becoming textbooks, filled with charts and tables on performance.

It’s a vital part of modern reporting but it risks being unable to convey who the company really is – missing an opportunity to form a bond with stakeholders, including future investors and employees.

That’s when reporting can be brought to life through expressing the brand purpose.

As noted in the 2022 Edelman Trust Barometer:

‘88% of investors believe companies that prioritise purpose over profit are better long-term investments. Furthermore, 68% of global consumers said they would buy or advocate for brands based on their beliefs and values.’

What makes a great brand story or purpose?

We say it starts with passion. The passion and intent of the people who lead the organisation as well as those who work within the organisation, with a collective knowledge of why the company exists and their part in it. It can also come from the place where they do business, their customers and their products and services.

We find that great stories come from people, and people are an ideal way to illustrate the passion within an organisation, supported by eye-catching design and attention-grabbing writing, with a consistent and authentic narrative. This storytelling creates a human connection and fosters empathy from the reader.

As the demands on corporate reporting continue to increase, let’s not lose track of what reports have always done well: tell a brand story in a clear and inviting way; authenticating its purpose and showcasing strategy in action through impact and the value they bring.

Putting your company’s purpose at the foundation of your relationships with your stakeholders is critical to long-term success.

Employees need to understand and connect with your purpose; and when they do, they can be your staunchest advocates. Customers want to see and hear what you stand for as they increasingly look to do business with companies that share their values. And shareholders need to understand the guiding principle driving your vision and mission. They will be more likely to support you in difficult moments if they have a clear understanding of your strategy and what is behind it.

Larry Fink discusses this in more detail in his Letter to CEO’s, 2022.

Final Thoughts

Getting the brand story straight through corporate reporting helps to build brand equity and inspire trust.