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THE

FUTURE

OFSEPTEMBER2023CORPORATECOMMUNICATIONSFOREWORD2023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYThepost-pandemicera

hassolidifiedcommunicationsasacriticalstrategicpartnerThe

post-COVID-19

era

has

solidified

communications

as

a

critical

strategic

partner

to

the

enterprise.

ChiefCommunications

Officers

(CCOs)and

the

communications

function

itselfcontinue

to

face

new

and

ongoing

pressures.In

turn,

they

are

rethinking

and

reshapingthe

role

as

theydrivedecision-making,

operations

andpriorities

for

thefuture.

In

just

two

years,

we’ve

seen

a

massive

shift,

from

communications

earninga

seat

atthe

table

withseniorleadership

to

owning

their

place

as

strategicadvisors.

CCOs

now

report

spendingnearly

one-fifth

of

their

time,

almosta

day

each

work

week,

counseling

the

CEO

on

non-communications

activities.

For

the

communications

professional,the

role

has

expanded,

and

the

stakes

have

increased.RADINA

RUSSELLU.S.

CorporatePractice

ChairIn

our

2023

Future

of

Corporate

Communications

study,

we

examine

the

current

state,

evolution,

and

forward-focus

ofthe

corporate

communications

function

in

today’s

multistakeholder

universe.

Building

on

our

2021

study,

whichmapped

the

state

of

communications

during

the

upheaval

brought

about

by

the

pandemic,

we

set

out

to

understandjust

how

much

progress

has

been

made

since,

bothatthe

leadership

level

and

for

the

function

broadly.For

this2023

study,

we

surveyed

more

than

200

C-level

or

senior-most

communications

executives

from

Fortune500

and

Forbes

Global

1000

companies

and

conductedmore

than

20

in-depth

interviews.

This

cross

section

ofleaders

from

mainly

U.S.

headquartered

companies

represents

an

array

of

sectors,

includingfinancial

services,health,

manufacturing,

retail,

and

technology.Respondents

represent

bothB2B

and

B2C

businesses.

Insightswereinformedby

Edelman

Trust

Barometer

research,

whichmost

recentlydocumentedthe

rise

in

employeeinfluenceon

organizations,

the

gapbetween

progress

on

DEI

issues

seen

among

executives

and

employees,and

other

major

trends.In

the

following

pages,

you’llfind

a

summary

ofthe

top

insights

from

this

research.

Notable

highlights

include:???????Leaders

are

increasingly

informingenterprise

decision-making

beyond

traditional

communicationsDemands

on

the

function

continue

to

expand,

but

resources

are

not

keepingpaceActionable

data

must

be

at

the

heart

of

advanced

communicationsEmployee

communities

are

more

complex

than

ever

and

have

reshaped

the

stakeholder

landscapePurposeis

still

a

vital

component

of

driving

longrange

strategicclarity

and

attracting

top

talentFor

most

respondents,the

challenge

of

integrating

new

technology,

includingAI,

is

front

ofmindCommunications

leaders

will

be

atthe

center

of

shaping

the

next

phase

of

stakeholder

capitalismThis

work

would

not

be

possible

without

the

collaboration

and

partnership

of

Edelman

Data

x

Intelligence

(DxI),our

data

consultancy

business.

We

thank

the

Observatory

on

Corporate

Reputation

(OCR),

who

helped

us

engagethe

leaders

who

participated

in

this

research.

We

also

thank

our

new

and

returning

contributors

foryour

timeand

perspective.We

hope

these

insightsprovoke

dialogue,

inform

decisions,and

help

youshape

the

futureof

your

function.2T

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STABLE

OF

CONTENTS2023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYCommunications

is

operating

atthe

nexus

of

valuecreation

andrisk

mitigation.

Is

the

functionequipped

to

deliver?More

than

a

year

haspassedsince

the

pandemic

officiallyended,

but

businesses

havecontinuedto

navigate

anarray

of

societal

pressures,geopolitical

issues,

andESGpriorities,

in

addition

to

facingongoingcalls

for

employerstolead

in

the

face

of

decliningtrust

in

other

institutions.Therole

ofthe

communicationsCHAPTER

1leader

continues

to

flex,with

CCOs

taking

on

moreresponsibility,

morepartnership,

and

broaderscopes

of

work.

They

aretapped

to

inform

key

decisionsand

are

the

first

call

when

acrisis

hits.

They

are

oftenthe

frontline

responderstoemployees

seeking

toThe

State

of

Play

forCommunications

TodayCHAPTER

2The

New

LeadingIndicatorunderstand

company

positions,valuesand

impact,all

thewhile

inspiringteams

to

beeffective

messengers

ofthecorporate

brand.This

state

of

playhasawakened

CEOs

andBoards

tothe

value

that

communicationscan

and

must

provide.Executives

are

pushing

hardon

communications

leadersto

operate

as

a

strategicpartner

to

the

enterprise

thatanticipatesand

mitigateschallenges

and

seeks

outvalue-creation

opportunitiesacross

the

stakeholderIn

addition,

communicationsleaders

are

protecting

againstreputational

risk,

navigatingthe

evolving

frontiers

of

ESG,AI,

and

the

demandsforinnovation

driving

theCHAPTER

3ReputationBeginsInsidelandscape.agenda

forward.Amid

these

pressures,

CCOsare

demanding

a

stake

in

thestrategicconversations

takingplace,

to

ensure

they

candeliveron

these

newToday’s

CCO

oscillates

dailybetween

advisor,

confidantand

practitioner,serving

at

thenexus

of

nearly

all

companyfunctions.

Tomorrow’s

CCOwill

be

expected

to

steer

theenterprise

to

win

thewar

fortrust

by

leading

a

function

thatis

poised

to

deliver

inCHAPTER

4Tomorrow’sCommunicationsAgendaexpectations

ata

timewhen

mistakes

are

costly.allthese

capacities.3T

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SCHAPTER

12023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYThe

State

ofPlay

forCommunicationsTodaySenior

leadership

is

calling

on

communicationsto

adviseon

business

and

societal

concerns,firmly

cementing

the

function

and

its

leaderasa

critical

partner

in

enterprise

strategy.4T

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SCHAPTER

12023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYCommunications

leadershave

cemented

their

placeas

criticalstrategic

partners.Communications

leaders

are

increasingly

informing

and

advising

the

enterpriseon

strategy.Today,halfofCCOsconsiderthemselvestobeastrategicadvisortobusinessleadersintheorganization,comparedtojustoverathird(35%)in2021.At

the

time

thatwe

relaunched

the

Futureof

Corporate

Communicationsstudy

in

2021,we

wereseeing

signs

of

a

rising

tide,

one

that

was

elevatingthe

overall

importance

ofthe

communicationsfunction.The

COVID-19

pandemic

had

alreadycatapulted

communications

to

the

forefront

andforced

critical

changes

in

interactions

with

key

stakeholders,

most

notablyemployees

andcustomers.Atthesametime,only10%ofCCOsreportthattheyarestrugglingtobreakfromcostcenterpositioning,comparedto30%barelytwoyearsago.*The

modern

information

ecosystemand

rise

of

public

dialogue

around

keysocietal

andenvironmental

issues

has

kickstartedenormous

mindset

and

cultural

shiftson

the

part

ofexecutivesand

their

communications

partners.Today,

ongoinggeopolitical,

societal,

andenvironmental

pressures

on

business,

and

the

continuedcalls

for

employers

to

lead

in

the

face

oferodinginstitutional

trust,

have

placed

communicationsatthe

center

of

strategic

decision-makingfor

the

world’s

leadingenterprises.*The

2021

study

usedthe

term

“fullstrategic

partner”

rather

than

“fullstrategic

advisor.”By

placing

communicators

in

a

central

position

one

that

informsthe

enterprise’s

transformationagenda

the

upwardadvancement

ofthe

function

and

its

leaders

is

wellunderway.

CEOs

andBoards

have

awakened

to

the

value

communications

can

and

must

provide,

and

they’re

pushingcommunications

leadersto

operate

as

a

strategic

partner

to

the

enterprise.ON

A

SCALE

OF

1

TO

10,

WITH

1

BEING

TRANSACTIONAL

AND

10

BEING

FULL

STRATEGIC

PARTNER,

HOW

IS

YOURCOMMUNICATIONS

FUNCTION

CURRENTLYREGARDED

BY

BUSINESS

LEADERS

IN

YOUR

ORGANIZATION?Value

creators

(8-10):(Shownamongn=200)2021202335%

à

52%Earninga

seat

at

the

table

(6-7):37%

à

37%Responsive/reactive

(1-5):30%

à

10%1.2.3.4.5.6.7.8.9.10.TRANSACTIONALFULL

STRATEGIC

PARTNER5T

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SCHAPTER

12023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYWith

elevated

positioning

comes

expandedresponsibility

—and

the

pressure

is

mounting.IspendmuchmoretimeworkingdirectlywithourCEOthanwithanyothermemberofhisexecutiveteam.It

is

no

coincidence

that

the

increase

in

the

proportion

ofcommunications

leaders

holdingstrategic

positions

withinthe

enterprise

comes

at

a

time

when

companies

arenavigating

treacherous

reputational

waters.Well

aware

that

reputational

risks

have

material

impact,

C-suites

and

boards

are

increasinglyleveraging

the

CCO

as

afrontline

advisor

who

informs

decision-makingacrossbusiness

and

societal

issues.We’reabsolutelybroughtinimmediately.We’reseenasacriticalpartoftheteam.It’sthe“well-oiledmachine”

partwhereitgetsmorechallenging.Most

communications

leaders

(64%)

report

being

broughtinto

conversations

about

important

business

decisionswhen

a

decision

path

has

been

only

tentativelyidentified.This

compares

to

just

9%

who

say

they

are

brought

in

afterdecisions

have

been

reached.As

a

result,

CCOs,

and

the

insightstheyprovide,

areincreasinglyviewed

as

critical

to

enterprise

success.However,

with

great

success

comes

even

greaterresponsibility,

and

the

pressure

is

mounting.Nearly

80%

of

communications

leaders

report

that

their

roleis

more

demanding

than

it

was12months

ago.

Andaccordingto

CCOs

we

surveyed,

“demands

from

boards

ofdirectors

or

other

senior

leaders”

is

the

number

one

forceimpacting

the

communications

function

and

agenda,

evenmore

than

the

regulatory

environment

or

AI.TOP6

FORCES

OR

FACTORS

MOST

IMPACTING

YOUR

COMMUNICATIONS

FUNCTION

AND

AGENDA:1.

Demands

from

board

of

directors

or

othersenior

leaders

2.

Pressure

to

engage

on

socialissues

3.

Anticipated

changes

in

regulatoryenvironment

4.

AI

disruptors

in

technology5.

Increased

importance

of

sustainabilityand

climate

6.

Geopolitical

issues6T

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SCHAPTER

12023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYCCOs

tell

us

that

nearlyone-fifth

(18%)

of

theirtimetoday

is

spentcounseling

theCEO

onnon-Commsactivities.Communicators

are

expected

to

manage

avastlyexpanded

set

of

stakeholders.A

number

of

respondents

referencedthe

dramatically

expandedlist

of

key

stakeholders

they

are

required

to

address

in

today’senvironment.Media,

customers,and

investors

have

long

been

focal

points.Todaycommunicators

must

also

prioritizeemployees,prospective

talent,

suppliers

and

partners,the

general

public,regulators,

activists,and

NGOs,

along

with

endless

permutationsof

subgroups

within

them.That’s

the

equivalent

ofalmostone

full

day

a

week.The

communications

function

is

also

tasked

with

a

significantlylonger

list

of

responsibilities

above

and

beyond

traditional

publicrelations,

crisis,

and

newsroom

activities.

This

list

now

oftenincludes

broader

corporate

affairs

and

public

policy,

employerbrand

and

values,

leveraging

data

and

social

listening

toanticipate

behaviors,

developing

insights

to

inform

decisions,

andreputation

and

risk

management.77%Idon’treallythinkaboutitfromacommunicationsperspectiveanymore.It’sabroadercorporateaffairslens,intermsofbothcorporatereputationandcorporatecharacter.HowdowethinkaboutAgree

that

their

CEO

demands

moreof

themtoday

than

a

year

ago.managingourstakeholdersendtoend?66%MyrelationshipwiththeCEOhasevolved.If

we’dhadthisconversation6monthsago,I’dbesayingsomethingdifferent.Buttherearenowmoretouchpoints,andthere’smoreawareness,moreaccess.Say

thatthe

advisory

their

CEOseeks

extends

wellbeyondcommunications

to

impact

businessdecisions

across

the

enterprise(e.g.,

supply

chain,

product

issues,employee

issues,

among

others).This

is

evenhigher

(79%)

amongthose

communications

leaders

whosay

they

have

achieved

fullstrategic

advisor

positioning.7T

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12023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYYet

resources

are

not

keeping

pace

with

the

new

reality.26%

ofCCOssaycommunicationsismorelikelytolandonthebudgetchoppingAgainst

a

backdropof

global

economic

uncertainty

and

fractured

political

environments

around

theworld,

communications

is

being

asked

to

do

more,

yet

investment

in

the

function

has

stalled.blockthanotherdepartments,suchasmarketingorsales.Despite

the

gains

in

strategic

positioning

overthe

lasttwo

years,

operational

support

forcommunications

leaders

and

their

functions

continues

to

lag.

Moreover,

the

budget

commitmentsCCOs

do

have

on

paper

are

viewed

as

vulnerable.

Nearly

half(44%)

of

communications

leadersdon’t

feel

their

CEO

understands

the

resources

needed

to

inform

and

shape

the

enterprise’sdecision-making

or

to

deliver

successful

execution

of

communications

programs.73%

ofcommunicationsleadersbelieveitislikelythattheirplannedcommunicationsbudgetwillbechangedoverthenext6-12months.Comparedwith

our

2021

report,

a

smaller

proportion

of

CCOs

this

year

(40%)

expect

their

budgetsto

increase

over

the

next

year,

when

more

than

halfexpected

to

see

increasestwo

years

ago.

Inaddition,

just

over

a

quarter

(28%)

of

CCOs

today

expect

their

budgets

to

remain

flat,

versus

only16%

in

2021.

A

similar

share

of

CCOs

this

year

(30%,

versus

29%

previously)

say

they

are

facingmoderate

budget

cuts.

Promisingly,

the

proportion

facing

cuts

has

held

steady,

but

fewer

CCOs

canrely

on

budget

growth.Overall,

communications

is

still

strugglingto

receive

the

consistent

support

needed

to

evolve.

CCOsattribute

the

inconsistent

funding,

in

part,

to

the

ongoingdifficultyof

directly

linking

communicationsactivities

to

business

outcomes.IwouldlovetoEveryday,my

numberonechallengeis

solvingforhowwegetmorefundingtodowhatweneedto–andI’maskingthe

leaderwhoseesfundingrequestsfromacross

the

entirebusiness.Ourbusinesscasehas

tobepretty

tight.OurCEOseesthe

valuein

thefunction

as

asendadashboardof

accomplishmentstothe

boardeverymonth.Buthow

doyouputavalueonsomeof

thesewhole,andwe’vediscussedwhat’s

needed,butit’sstillnotahugebudget.metrics?TOP

RANKED

AREAS

OF

ANTICIPATED

INVESTMENT

OVER

THE

NEXT

18

MONTHS:61%

Capabilities

and

processes

61%Strategy49%

Platform

technologies

andsystems

41%

Culture

39%

Skills/training37%Back-end

data

and

analytics8T

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12023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYKey

ConsiderationsFor

all

the

gains

made

over

the

last

two

years,communications

leadersmust

continueto

evolve

the

function’s

positioning

within

the

enterprise,for

the

sake

of

enterprise

competitiveness

and

performance.1.Key

stakeholders,

and

what

influencesthem,

are

evolving.

Is

it

time

to

updateyour

stakeholder

map?Consider

taking

this

opportunityto

revisit

the

fundamentals.

Who

are

yourmost

important

stakeholders,

where

are

they

getting

their

information,

andwhatis

influencingthem?

It

is

critical

for

communications

leaders

and

theirteamsto

understand

how

key

stakeholders

are

showing

up

and

whatmotivates

them,

to

anticipate

and

mitigate

challenges

as

well

as

seizeopportunities.2.3.As

reputational

risks

proliferatefrom

anever-expanding

set

ofstakeholders,

communications

leaders

need

to

reinforcetheir

strategicvalue

across

the

C-suite

and

position

themselves

to

inform

decision-making.

Don’t

wait

for

the

rest

ofthe

leadership

team

to

come

to

you.Pushto

provide

standing

updates

to

the

board;

bringbenchmarked,

data-enabled

insights;

and

insist

on

a

communications

team

memberparticipating

in

most

conversations

of

consequence.The

new

state

of

play

consists

of

regularaccess

to

and

interaction

with

the

CEO

andbroader

C-suite,

along

with

periodicreporting

to

the

board.

Are

you

advocatingfor

this

access

and

exposure?The

days

of

measuringcommunications

performance

solely

through

thelens

of

media

impressions

and

sentiment

are

in

the

past.

Yet

proving

theROI

of

communications

is

an

imperfect

task.

Because

the

stakeholderlandscape

and

enterprise

demands

are

rapidly

evolving,

communicationsleaders

would

be

wellserved

by

assertingownership

over

the

unmet

needto

define

communications’measurable

value

and

demonstrate

progressagainst

benchmarksand

targets.Doing

so

will

put

youon

equal

footingwithother

functional

leaders

more

accustomed

to

measuringtheirprogress

and

performance

against

stringent

enterprise

outcomes.The

business

case

for

communicationsneeds

to

be

airtight.

Is

it

time

to

revisithow

you

are

tracking

ROI?It'salwaysimportantto

goinwitha

reallystrong

case.What'sthe

valuethisinvestmentorhire

isgoingto

addto

the

company?It’snotabouthowitwill

make

mylifeeasierto

have

one

more

person.Rather,whatpercentage

increase

inperformance

canitdrive?9T

H

E

FU

T

U

RE

O

F

C

O

RPO

RA

T

E

C

O

M

M

U

N

IC

A

T

IO

N

SCHAPTER

22023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYThe

NewLeading

IndicatorCommunications

was

once

predominantlytasked

with

executing

C-suite

priorities

afterdecisions

had

been

taken.

With

CCOs

movinginto

more

strategic

roles,

that

positioning

haschanged.

Communications

insights

nowforeshadow

and

direct

executive

leaders’attention

to

the

next

frontier

of

both

valuecreation

and

reputational

risk.10T

H

E

FU

T

U

RE

O

F

C

O

RPO

RA

T

E

C

O

M

M

U

N

IC

A

T

IO

N

SCHAPTER

22023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYCommunicators

inform

and

guideenterprise

decision-making

from

acentral

positionas

connector.Discerning

and

interpreting

signals

from

an

expanding

stakeholder

setis

of

growing

importance

to

the

C-suite.MorethanjustCEOperspectiveoncommunicationshasshifted.NearlyallCCOswesurveyedagreethatotherC-suiteleadersintheirorganizationwouldsaythatthecommunicationsfunction:Beyond

crisis

management,executive

leadership

teams

and

boards

are

beginning

tounderstandhow

effective

stakeholder

management

can

drive

value

creation.Today,

the

single

most

important

change

driverimpacting

the

corporatecommunicationsagenda,

accordingto

communications

leaders,

is

demandsfromboards

of

directors

or

other

senior

leaders.

What’sbehindthisgroundswellof

internalleadership

pressure

on

communications?

A

long

and

steady

accumulation

ofmultistakeholder

management

expectations

across

the

enterprise,

finally

comingto

a

head.1.

providesindispensablepartnership(95%),2.

delivershighoverallvalueacrosstheorganization(98%),The

post-pandemicreality

has

positioned

the

communications

function

and

its

leaderatthe

intersection

of

all

stakeholder

factors

that

might

drive

business.

At

the

sametime,

the

C-suite

and

the

Board

have

become

more

accustomed

to

bringingcommunications

in

atthe

ground

floorof

decision-making.

A

growingnumber

ofCEOs

andBoards

now

ask

communications

leaders

to

providestakeholder

insights

tointerpret

signals,

illuminate

what

matters,

support

decisions,

and

influencestakeholders

bothbefore

and

after

enterprise

actions.3.

strengthensconnectionsacrosstheenterprise(99%).There’sathousandpercentgreaterdemandandfrequencyof

demandon

ourfunction

thantherewas

justafewyearsago.Communicationshas

always

beenaconnector.Theroleof

thechiefcommunicationsofficerhas

grownbecauseof

theintersection

of

somanyissues.I’vebeenblessedwithaleadershipteamthatunderstandsthatcommunications

is

mosteffectivewhen

itpartnersacrossthe

entireenterprise.It’s

thephilosophy

of

partnershipacrossthe

c-suitebroughttolife.11T

H

E

FU

T

U

RE

O

F

C

O

RPO

RA

T

E

C

O

M

M

U

N

IC

A

T

IO

N

SCHAPTER

22023

EDELMANFUTURE

OF

CORPORATE

COMMUNICATIONS

STUDYThe

insightsgained

are

helping

CEOs

make

moreinformed

decisions

regarding

when

and

how

toaddress

issues

and

drive

change

in

anuncertainenvironment.76%

ofthegeneralpublicsaysCEOsmustdrivechangeratherthanmaintainthestatusquo.89%

expectCEOstoaddresstreatmentofemployees–thetopissuewheretheyfeelCEOsshouldtakeapublicstance.In

additionto

leading

the

business,

CEOs

are

increasinglyasked

to

take

a

stand

on

a

wide

range

of

domestic

andglobal

issues.According

to

our

2023

Trust

Barometer:

Trust

and

the

CEOSpecial

Analysis,

acrossthe

globe,

CEOs

are

expected

to

bedrivers

of

change,

with

the

treatment

of

employees

nowtopping

the

list

of

priorities.And

the

anti-ESG

movement

inthe

US

has

not

dampenedthe

public’s

expectations

forbusiness

and

its

leadersto

speak

up

and

pushfor

change

onclimate

change,

discrimination,the

wealthgap,

andimmigration.*2023

Edelman

Trust

Barometer

SpecialAnalysis:

Trust

and

the

CEO.

Generalpopulation,

27-mkt

avg.This

pressure

to

earn,

maintain

and

leveragebothpersonaland

enterprise

trust

has

CEOs

relying

on

the

CCO

for

bothexecutive

communications

support

and

to

inform

the

overallcorporate-level

strategy,

particularly

as

it

relatesto

socialissues

(8

out

of

10

CCO

respondentssay

they

collaboratedirectly

with

the

CEO

on

social

issues).

Overall,I’min

withmy

CEOatleastonceaweek,andwemustswapatleast10

emails

aday.communications

is

helping

to

anticipate

stakeholdermotivationsand

responses

and

inform

proactive

CEO

actionsand

communications.I’vealways

hadregularengagementwiththe

CEO.I’malsopartof

the

executiveleadershipteamthatmeets

quarterly.Almosteveryweek,my

CEOcalls

mein

themiddleof

the

night.AndsometimesIgointohis

officeandsay,this

is

ateachablemoment.If

youdon’thavethatkindofrelationship,this

jobis

verydifficulttodo.98%of

CCOs

say

theirrelationship

withtheir

CEO

is

moreimportant

than

everWe’vegrown

closeras

astrategicbusinesspartnerdu

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