Image credit: Mike Licht
As the world continues to absorb Britain’s momentous decision to leave the European Union, PR and marketing professionals mull what “Brexit” means to their particular industries and organizations. Practically all industries are considering how the departure will impact them, and PR and marketing is no different. Ignoring the issue could lead to a PR crisis.
Brexit is not just a British and European issue. Because of deep economic ties between the U.S. and the U.K., economic troubles can flow easily and quickly across the Atlantic. The United States exported $56 billion worth of goods to Britain last year, and Americans own $588 billion of investments in there, according to The Washington Post. Britain has invested almost half a trillion dollars of investments in the U.S. and employs more than a million workers here.
Caterpillar, the heavy equipment manufacturer headquartered in Peoria, Ill, is a prime example of an American company that benefits from Britain’s EU membership. It has 9,000 employees and 16 plants in Britain, and a huge chunk of its revenue comes from Europe.
Caught off Guard
The referendum results took most by surprise. Government leaders did not outline a departure plan, and most corporations did not analyze in any detail what Brexit would mean to them. In addition, the exit process, and the uncertainty it creates, will likely continue for some time. EU rules provide a two-year window for renegotiating treaties for any nation that opts to leave the union
With anxiety running high, it’s time for PR to assume the lead in analyzing possible repercussions to their organizations and reassuring major stakeholders, including customers, employees, suppliers and investors.
“Understand that the only immediate thing we have to fear is fear itself. Fear creates an immediate risk bringing uncertainty and instability,” writes Stuart Bruce, an international PR adviser and trainer based in the U.K., in his blog post 12 immediate actions for PR, corporate communications and public affairs professionals.
“Public relations, corporate communications, public affairs and corporate affairs professionals will have an essential role in helping employers and clients to navigate this period of momentous change,” Bruce says. “We are change agents and desperately need to forge the new relationships we need and the old ones that need to be maintained.”
Lack of Trust
Some observers say a lack of trust prompted Britons to leave the EU. The general population — especially the working class “have-nots” — distrusts government leaders and corporate leaders. The 2016 Edelman Trust Barometer found that “a yawning gap has opened between Britain’s haves and have-nots.”
The barometer revealed “a tale of two Britains.” The wealthy wished to remain in the EU; those struggling through government austerity spending cuts strongly favored Brexit. While they hold little respect for politicians, they distrust business leaders even more.
Many voters used the referendum as an opportunity to “stick it to” politicians and banks that they hold responsible for the financial crisis and ensuing recession, asserts Paul Holmes, publisher and CEO of The Holmes Group. The Brexit vote shows “what happens when business leaders and financial services companies behave as though they have no moral or legal obligations,” Holmes writes.
“In this environment, it is essential that a broad-based effort to restore trust and credibility should become a top priority for business leaders,” he says. That will require not just words but actions. Corporations will need to demonstrate that they are contributing positively to the societies in which they operate, and not simply exploiting them.”
A key PR role, then, involves educating C-level executives of the underlying public opinion about business and the need to serve the common good in order to regain public trust.
Bottom Line: As Brexit fears strike a range of industries, PR can help calm anxieties by relaying what Britain’s departure from the European means to their organizations. Quickly and accurately communicating those facts is the best antidote to fear, which feeds on uncertainty and lack of information.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
