THE corporate sector has yet to realise the value of public perception for its long-term sustainability. The global financial crisis smashed the myth of ‘nothing succeeds like success’. Some openness in the corporate culture can do better for both business and society.

Corporate social responsibility initiatives undertaken by many big companies have increased their engagement with the local community, but most people still identify successful growing companies with their use or ‘misuse’ of power and strength.

“Their [companies’] success is often shrouded in mystery. It partially explains why big corporations’ contribution to growth, job creation, technological advancement and revenue generation, provision of goods and services, fails to command the kind of respect they deserve in a society,” commented a senior executive. He pointed out that the culture of secrecy is more entrenched in multinational corporations.

“There are laid down procedures to respond to queries. The nature of private business is such that loosening of checks and balances regarding the flow of information can create chaos, which no company can afford,” commented Humayun Bashir, former CEO of IBM Pakistan.

A positive public perception is absolutely necessary for long-term sustainability of any company — Saad Amanullah Khan, former CEO of Gillette Pakistan

He contested the impression that the corporate sector holds contempt for the press. “Most companies hold press briefings and, if given time, respond to requests. But clearance has to be sought on policy matters,” he explained.

When his attention was drawn to a recent event where a journalist accompanying a 20-member ICT trade delegation from Pakistan to Silicon Valley was shut out of briefings by companies like Microsoft, Google, Cisco and Oracle, he was intrigued. “The organisers of the trip will be in a better position to explain the mishap.”

During the visit, the aforementioned companies not only declined to entertain the lone journalist, but also refused to respond online to questions related to their business plans in Pakistan.

“They probably had none worth mentioning,” another senior executive commented candidly.

Ruhail Muhammad, CEO of Engro Fertilisers, acknowledged the trust deficit between companies and citizens. He attributed the attitude to: (i) very high expectations in terms of employment generation; (ii) pressure from the government to fill in for gaps in social service delivery; (iii) promotion of populist ideas by the media; (iv) treating profit as a bad word, equivalent to exploitation.

“I can’t speak for others, but Engro has always been very generous in sharing information; we are accessible and consider ourselves accountable to society,” he was clear.

“A positive public perception is absolutely necessary for long-term sustainability of any company,” said Saad Amanullah Khan, former CEO of Gillette Pakistan, who resigned last year to become more active in social pursuits. Amanullah was one of the moderators at a Pakistani investors conference held in Dubai soon after the 2013 elections.

He was surprised over the conduct of the ICT giants vis a vis the Pakistani media representative. “Someone made a faux pas.”

Some executives who wished to remain anonymous felt that the private sector avoided the press as it misconstrued facts and sensationalised issues to the chagrin of companies and cited numerous examples of inaccurate and irresponsible reporting.

According to a mid-2014 ‘corporate perception indicator survey’ carried out by Burson-Marsteller and CNBC and available online, “only 36pc Americans feel corporations are ‘a source of hope’ for their economy.”

The survey was conducted in 25 global markets and included opinion data from 25,000 general public participants and 1,800 senior corporate executives. The report says, “Not surprisingly, the general public is much more skeptical, compared to executives, of power and reach of corporations.”

Commenting on the arrogance of the big and mighty, the report says, “the public polled in developed markets feel that the corporations have not been humbled by the recession and haven’t been acting more responsibly either. In the US last year, the Securities and Exchange Commission announced a record $3.4bn in fines, and 2011 was the year with most actions filed in the agency’s history.”

The survey reports that “40pc of millennials see corporations as a source of fear. They don’t even think their good deeds are genuine; 49pc think that corporations are only undertaking philanthropic efforts for tax benefits”.

Dilating on the tendency to misuse influence to earn favours and indulge in irresponsible business practices behind a shiny exterior, a former regulator known for his grit told Dawn that the idea of proceeding against companies violating rules is not to discourage business.

“I am all for market and competition, but misdeeds by companies can’t be permitted as it throttles opportunities for growth and development,” he told this scribe, while citing many examples where businesses overstep their boundaries.

“In Pakistan, you can’t exclude the security dimension when discussing the accessibility of executives to media,” a young executive working for a bank commented.

Published in Dawn, Economic & Business, October 27th, 2014