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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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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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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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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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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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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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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
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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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