As a middle market CEO, you know by now that social networks have changed everything. Now more than ever, you need to consider social good to bolster your company's image.
When asked what obligations a company owed to its community, Noble Prize-winning economist Milton Friedman once replied none - the company's only obligation was to its stockholders.
But social networks have helped to create a new environment in which customers and those in the community expect company executives to be involved, engaged, and in touch. Even the president of the United States has time to tweet, and the White House has a blog available for public comment.
CEO isolation may still be an option, but it's not a good one. The ROI from even small investments of limited time and resources can be huge, creating committed customers and community defenders. There is no better PR than people in the community singing a company's praises for the work it does toward social good.
Here are five ways middle market CEOs can engage their community.
1. The CEO, or another top executive, needs to have a blog on the company website. Increasingly, people believe they should have access to management, and a company blog makes that easy. It allows the CEO, or a top executive, to explain what the company is doing and why - hiring, cutting back, expanding, releasing a new product or service, or addressing problems that have emerged. And it gives customers and the community the opportunity to respond directly to the people in charge. In an era where "transparency" has become a widely embraced value, increased communications show the company is listening.
2. Demonstrate the company is a good corporate citizen. CEOs should assess what is important to the community and embrace some of those values. Companies located near beaches or mountains might stress what they are doing to promote a clean environment. Companies located in or near the inner city might want to focus on the need for safe, quality public transportation and schools. Embracing community values makes the company part of the community.
3. Invest in things important to the community. Middle market companies with limited funds can still achieve big visibility with a small investment in local parks, schools, hospitals, senior centers, and community centers. For example, local YMCAs may post the names of donors in very visible places that allow residents to see that the company is committed to the community. Or a donated park bench with the company logo broadcasts the company's goodwill.
4. Encourage employees to get involved. The best way to multiply the CEO's outreach efforts is to encourage employees to volunteer at local organizations, promoting such things as fundraising drives or civic events. Volunteers are always needed, and when a proud company employee is taking the time to participate, it increases community support.
5. Sponsor a high-visibility program or event. For those middle market companies with more resources, sponsor or cosponsor an event - ideally one that draws a lot of local residents and media attention. Be sure to take some ownership in the project. It could be a run for some worthy cause, music in the park, or a project at a local school or religious event. Sponsorship sends the message that the company and the community care about the same things.
When companies create community goodwill, locals are much more willing to buy its products or services (if applicable) and to generally show support. When difficult times arise, such as an economic slowdown creating the need for some cutbacks, the community will be more willing to give the company the benefit of the doubt. Bad times do not necessarily result in bad feelings. If a company demonstrates that it is there for the community, then the community will be there for the company.
Merrill Matthews is an NCMM contributor and resident scholar with the Institute for Policy Innovation in Dallas, Texas. http://twitter.com/MerrillMatthews. Circle him on Google+