Simon Mainwaring

We First provides consulting and training to help companies tell the story of their good work in ways that build their business

February 20, 2018

How CEO’s Are Shaping Their Corporate Culture Through Open Letters

Written By Simon Mainwaring

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CEOs have long shaped corporate culture and strategy; however, public displays of corporate leadership are a relatively new phenomena. With increasing demand for accountability and transparency, largely driven by internet and social media adoption, consumers want to put a face to the companies they do business with and support. In fact, according to recent studies, over 75 percent of consumers say they are more likely to both trust and buy from companies with CEOs active on social media. Yet, just 40 percent of fortune 500 company CEOs use online social networks.

Photo Credit to Kevin Krejci

Conscious corporate leaders are now embracing the new paradigm of consumer engagement. That is, engaging the public in a dialogue, rather than corporate self-promotion or a monologue. By celebrating the human side of your brand, you can create a more meaningful and personal impression on consumers, which leads to consumer goodwill, loyalty and purchases. One powerful way that socially conscious CEOs are showing their humanity and leadership to key stakeholders is through purpose-driven open letters.

Here’s how CEOs are shaping brand image with open letters and social media.

Articulating a positive vision:

While CEOs have historically been tasked with optimizing short term financial gains for the benefit of shareholders, the new wave of innovative leaders is shifting focus towards the triple bottom line (financial, environmental, and social performance).

With a change in strategy comes a change in timelines. In other words, companies that wish to have a lasting positive effect on the planet must think about their business impacts for not just the next few quarters, but for decades and centuries to come.

By defining and sharing your company purpose (‘why you exist’) and its vision (‘the future you want to build’), you will not only gain strategic benefits, but you’ll also invite consumers to help you build your business and a better world with you.

Recently, Airbnb founder and CEO Brian Chesky tweeted an open letter he wrote on “Building a 21st Century Company.”  In the letter, Chesky shared his long-term vision of a world where “every one of us can belong anywhere.”  He also outlined how Airbnb is working on realizing this vision by having “an infinite time horizon” and serving “all of our stakeholders.” Chesky also announced that Airbnb will be publishing its first Annual Stakeholder Report, to measure its impact over time.

By openly sharing his purpose and vision with consumers and other stakeholders, Chesky is cultivating goodwill by affirming that his company will work to build a world that benefits everyone, not only Airbnb shareholders.

Sharing course corrections:

While some companies align build purpose into corporate  culture practices from the start – from supply chains to employee engagement to marketing – others have to align or redirect business practices with a higher purpose along the way. There is nothing wrong with embracing a new direction. Learning from experience is a fundamental part of being human and of being in business. And building a human brand is a fundamental part of earning consumer goodwill.

A good example of a conscious CEO using an open letter to shape brand image is Mark Zuckerberg. Facebook’s founder and CEO recently posted a letter on his Facebook page about how he is changing the direction of the company. “I’m changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions” Zuckerberg wrote. This directive not only alters internal corporate culture, but also impacts Facebook’s algorithm and advertising.

This change of course corresponds with the companies higher purpose to “bring the world closer together.”  What’s more, it shows that the brand is working towards a full integration of purpose beyond its marketing alone.  

Mitigating Damage:

Sometimes companies need more than a course correction. When PR crisis occurs, it’s important to take responsibility and own that your company can do things better.  

Again, this is part of building a human brand. It shows stakeholders that you are actively listening and taking efforts to mend bad behavior.

After Uber lost its license to operate in London due to concerns over public safety and corporate responsibility, the company’s new CEO Dara Khosrowshahi tweeted an open letter to apologize for misconduct (such as the lack of adequate driver screening, bad customer service and misogynistic corporate culture) and is hoping to continue discussions with Transport For London. After collecting nearly 900,000 signatures from Londoners in support of the driving service, Uber filed an appeal and can operate until the multi-day appeal is held later this year. This shows that fostering trust and community is essential to successfully running a business in today’s world and that a sincere apology from the CEO is a good starting place to mend PR crisis.

The key takeaway is that today’s consumers want to feel meaningful connections with the brands they support and actively engage with companies to shape culture. As the face of the company, CEOs have an important role to play. Therefore, it’s essential that corporate leaders share high-level insights in an approachable way by leveraging social media and open letters.