Juan Cardona (*)
The recent FITUR Tourism Fair in Madrid, with a record 150,000 participants, confirms that tourism is Spain's great economic engine. However, behind the success, the sector's main employers' associations lamented the reputation problem that is increasingly affecting them.
From being seen as a beneficial sector, tourism has come to be seen as a stress factor in some communities due to problems such as tourism overcrowding and its impact on the quality of life of local residents; environmental impact, particularly in the air transport sector; or lack of talent retention and a worrying shortage of skilled labour. Low wages and adverse working conditions, such as split working hours, have diminished the attractiveness of the tourism sector as an employment option for young people.
But reputational risks affect all sectors: from general business to banking and financial services, construction, airlines, agriculture, oil and gas, real estate, transport/logistics, electricity, pharmaceuticals, automotive or telecommunications... All these sectors have received more criticism in the media than tourism in 2023.
Indeed, this is a crucial challenge that touches all employers' and business associations: reputation management in the sector.
Being aware, leading
Historically, employers' organisations have focused on defending economic and political interests. Today, reality demands an expanded role: to be active managers of the reputation of their sectors. This transformation is essential in an era where public perception significantly influences economics and politics.
The example of tourism serves to illustrate the challenge of social leadership that all modern business associations and employers' associations face in upholding the reputation of the sector:
- Identification of reputational risks: Each sector must identify its specific challenges and put them at the forefront of the strategy. It involves active listening and the search for real solutions that are useful for all parties involved.
- Strengthening values and purpose: it is crucial to communicate how each sector contributes positively to society, by developing appropriate impact studies and connecting the narrative with the big challenges such as sustainability, innovation, the impact of artificial intelligence, etc.
- Collaboration and dialogue with stakeholders: Employers need to collaborate not only among companies, but also with civil society, governments and other stakeholders to build strong partnerships and better understand public expectations and concerns. Traditionally, industry or category reputation has been the domain of the leading companies. But the complexity of communication today requires a stronger backing, a stronger sectoral alliance to manage perception around the challenges and transformations affecting the various industries.
- Proactive and transparent communication: adopt an approach to communication that is consistent and clear, maintaining an open dialogue with society and anticipating potential reputational crises. It is necessary to banish "low profile" schemes or reactive communication or acting only in defence of partners when they come under attack.
- Investment in communication and digital marketing: Employers need to invest in modern communication skills and tools to reach a wider and more diverse audience. Having specialists, professionals and communication agencies; equipping themselves with communication and digital marketing skills to reach all audiences; training management teams in spokesperson communication; being able to bring messages to the public in a simple and understandable way... All of this requires providing this function with a significant financial budget.
Reputation management is not simply a public relations strategy; it is an integral responsibility that impacts the long-term survival and prosperity of any sector. Communication and reputation management become essential tools for effective and responsible social leadership.
This more holistic approach implies a significant shift for employers' and business associations. They must move from being mere defenders of economic interests to becoming guardians of the reputation of their sectors. This not only improves public perception, but also contributes to a more sustainable and ethical business environment.
The challenge is great, but the opportunities for employers who embrace this role are even greater. By proactively managing reputation, they can positively influence the direction of their sectors, ensuring their relevance and respect in an increasingly aware and connected world.
(*) Juan Cardona, Director of Proa Comunicación.