Björn Edlund discusses the importance of societal competence for business leaders and sustainability. He asks if leadership is ready to interact with stakeholders and understand how public opinion is formed. Edlund also questions if leaders can assess non-technical risk and are trained to manage issues through assertiveness and compromise. He notes that companies are vulnerable in the public sphere and must frame debates around delivering customer and societal value. Edlund proposes developing societal competence through helping leaders understand reputational vulnerabilities, preparing them for stakeholder engagement, and training them in assertive yet compromising issue management.

1. Communications and
Sustainability
Can business leaders learn societal competence?
World PR Forum
Stokholm 14 June 2010
Björn Edlund
former EVP Communications Royal Dutch Shell plc.
Independent Consultant Board Member
Edlund Consulting Ltd. Institute of Human Rights
and Business
Senior Advisor Senior Visiting Fellow
to Burson Marsteller, EMEA Henley Business School

2. Societal competence – no sustainability without it
Is the leadership ready for stakeholder interaction?
Do your business leaders understand how public
opinion is formed?
Can the leaders assess non‐technical risk?
Are leaders trained to manage issues through a
mixture of assertiveness and compromise?
Do leaders understand how vulnerable the company
is in the public plaza?
How can business frame and shape a debate about
delivering both customer value and societal value?

3. Societal competence – Lesson 1
Brand and reputation
Hope
Biases
Trust
Self‐interest
Fears
Investors Customers
Corporate Identity Communication
Who we are and Academics Communities/ Corporate
what we stand for Citizens
Reputation
Behaviour
Employees Government
NGOs Media
Performance
Effective relationships
How we see & portray Interaction with Overall estimation
ourselves stakeholders by stakeholders
3

4. Challenging landscape
• The oil and gas industry brings jobs, investment,
technology solutions, mobility, productivity,
progress, prosperity...and a daily warm shower...
• But
• Linkage to global warming
• Operations in environmentally sensitive
areas
• High income (for high investment)
• Big Oil – Big Company – trust?
• Huge desire for alternative energy...
HQ The Hague 2009
4 At the Brent Spar 1995

5. Can you hear the other dialogue?
Pyramid of Influence Integrated programme Sphere of Cross Information
Opinion forming elite
PR including
engagement
More
Upstream – Gvt
Internal
Profitable Relation
Comms
Downstream s
Brand
campaign
Mass audience
Traditional model New world order
• Building relationships is more than just filling • And become more aware of the drivers per
up a direct communication channel stakeholder group
• Linear stakeholder engagement approach • Advocacy and winning the must‐ win battles is a
does not reflect reality highly tactical game
• We need to better understand ‘the other • Don’t forget the young, more positive and news‐
dialogue’ around us… savvy generation
5

6. So what do we do with all this?

7. State your case – One reputation plan
‐ Four key themes from 2005 onwards
Key messages on
Primary themes Shell’s position
Strategy and Global Reputation Plan
per theme
The energy challenge
Technology and innovation Basis for all internal and
Finding factual external communication
Respect for people and the environment proof points on channels and
Preferred partner all messages stakeholder meetings
Mining for Marrying desirable
Underlying themes authentic and message components as
Delivering corporate strategy & business human stories emotional appeal, factual
performance data and authenticity
Management excellence Helping leaders
to improve story‐
telling
7

8. Integrated approach for key stakeholders
Active media strategy with
Engagement series interviews and available
based on Toolkit for opinion articles,
Country Chairs advertorials, social media
Advertising campaign techniques
communicating Shell’s
position and innovative Specific engagement with
PR engagement
solutions based on message Brand Governments using locally
house tailored global messaging on
Gvt energy frameworks
relations
Linking external programme CVPs Continued web dialogues on
with internal Retail Shell.com and national
Internal Comms
communications to involve websites involving Special
and inspire employees Publics…
CVP programme on Shell …and Energy –Concerned
stations helping customers to Consumers, providing them a
emit less and save money + platform for energy debates and
reach energy citizens solutions
8
2009 ‐ More energy, CO2 solutions

9. How do we develop better societal competence?
1. Do leaders understand how vulnerable the company is in the
public plaza?
– How can we help business leaders understand how public opinion is
formed?
2. Can the communications professionals help leaders assess
non‐technical risk?
– How do we prepare the leadership for stakeholder interaction?
3. Can business frame and shape a debate about delivering
both customer value and societal value?
– How can leaders be trained to manage issues through a mixture of
assertiveness and compromise?

10. Björn Edlund
Edlund Consulting Ltd.
edlund@bluewin.ch.