Seat at the Table

It’s always notable when a major corporation makes a serious business move to enhance it’s green focus and reputation.  It’s particularly notable when a major private equity firm like Kohlberg Kravis Roberts & Company - a firm that represents the bottom line investor value focus of private equity - makes such a move.  This is a firm that only makes moves if they think there’s a real financial return.

Today’s New York Times covers Kohlberg’s partnership with the Environmental Defense Fund to improve the performance of the companies in which the private equity firm invests.  The move shows that being environmentally friendly is not simply a reputation issue but a bottom line business issue.  How the value of being an eco-friendly company may differ depending on the business - more sales for a consumer company, sustainable energy plans for a manufacturer - but the move by Kohlberg shows that there is real financial value to be found in being eco-friendly.  The result, first for Kohlberg and potential for their companies, a greener reputation.

This is the cart and horse lesson for companies.  Kohlberg and the Environmental Defense Fund did not first do a PR push to say how they will become green.  They announced a specific business move the commits the private equity firm to pushing its companies to be environmentally friendly in a way that has  positive business impact.  The PR driven reputation can then come from the business moves being made.

Hopefully, we will soon see examples from this partnership that provide additional lessons from corporate America.  Reputation does not simply result from a strong public relations and reputation management strategy, but from a strategy that is wrapped around real, substantial business moves.  If you’re in corporate communications the question you should be asking yourself is "would my company have me suggest a similar move or do a reputation evaluation of such a move that would be considered by senior management."  If the answer is yes, then you’re a business executive with PR expertise that sits at the table.  If the answer is no, then your are  PR executive waiting to execute what those at the table decide.