Radio Flyer won best-in-class in the 2024 Family Business Visibility Rankings for clearly sharing … [+]
According to the Edelman Trust Barometer “Family businesses have always had a strong trust advantage over general businesses.” But trust is not something family businesses can take for granted. Edelman reports that trust in family businesses has been declining for years. A recent study noted a six-point drop in trust in family businesses, while trust in businesses in general is rising. Why? Edelman sees that family businesses are not working to build trust with their customers: “Almost 60 percent of companies do not communicate purpose externally. Eighty-four percent do not take a public stance on important issues.”
As corporate citizenship has become a greater expectation for companies, the business sector has stepped up. However, it can be a double-edged sword. Companies that profess their commitment to inclusion, environmental protection and other values can be criticized for being “woke” or engaging in “greenwashing.”
How do family businesses participate in this complicated but necessary conversation? The answer is surprisingly simple: stories. Stories help share values and impact in context. They help inspire and recruit employees. They help you connect with clients and customers in memorable and meaningful ways. Stories speak louder than jargon, louder than praise and labels.
First Annual B Corp Family Business VISIBILITY Rankings (Values, Impact, History)
To understand how family businesses are communicating, we looked at the extent to which 30 B Corp family businesses were sharing their values, impact, and stories. We chose B Corp companies because the certification process ensures that the family businesses selected for review have proven to others that they are indeed values-driven businesses. Each business was rated on an eight-point VISIBILITY scale.
The VISIBILITY Scale
8 The components of VISIBILITY rankings help a company understand how well it is communicating … [+]
Andy Crestodina, co-founder and CMO of Orbit Media, a B Corp certified digital marketing agency, reviewed the VISIbility ratings. “That’s really cool… I think it’s a really interesting way of valuing companies,” he said. Crestodina was not surprised to learn that only four companies were classified as Best in Class, meeting all criteria, and only eight achieved the level of Great Storytellers (scoring at least 6 out of 8 criteria).
Only 4 out of 30 family businesses evaluated obtained the best rating (8 out of 8) in terms of VISIBILITY … [+]
Almost half of the companies analyzed did not use storytelling techniques to share their foundation … [+]
“Storytelling is not fundamental for many brands. So there are a lot of lost stories. This would be one of them,” said Crestodina. “For many brands, especially in their digital presence, this is not discussed in detail.” The majority of companies (18) met less than 65% of the criteria, showing an opportunity to improve or start storytelling.
How to share your values, impact and story
Business leader and author Simon Sinek suggests that starting with the why, before moving on to the how and what, is a much more persuasive way to communicate a brand. Likewise, when a company tries to demonstrate its values, it is important to start with character. Most companies share their credentials and skills and reveal nothing about their character.
The 3 C’s of communicating values, impact and stories
For example, your company is B Corp certified. Its ingredients are organic and non-GMO. Their ice cream flavor won a blue ribbon at the state fair. These are your credentials. The measures it has taken to reduce its carbon footprint, the quality of its products and the integrity of its supply chain demonstrate its competence. Your character is shared through your stories. Here’s an example from one of the B Corp companies we analyzed:
Amy’s Kitchen tells an intimate story of its founders, Rachel and Andy, as they share their values and character: “In 1987, while Rachel was pregnant with Amy and on bed rest,” the Amy’s Kitchen website says. “Andy went looking for ready-made meals at the local natural supermarket. When he couldn’t find anything organic and vegetarian that satisfied his taste buds, they decided to make their own.”
Overlaid with family photos of their first kitchen and baby Amy, the story continues: “The first dish Rachel and Andy created was a pie. They made them by hand, sold them locally, and Amy’s Kitchen started in their home. They thought they would remain a small business simply making pies, but soon handwritten thank you letters started arriving.”
The family story of humble beginnings, growing up through community support, becoming a leader in the organic movement, and using grandmother’s recipes all tie into the family values that food should not be manufactured, but prepared with love. And the ripple effect it had on them as a family and as a company.
Top 3 Reasons Family Businesses Fail to Share Stories
1: They only share stories internally
Although B Corp companies have made a huge effort to become B Corp certified, 30% of the companies evaluated (8) did not even mention this on their websites. Some companies may believe that B Corp certification is more for internal communications. For companies like Orbit, the B Corp is often used internally as a compass when the team is struggling to find the right answer. “What would be the B-corpy thing to do?” Crestodina remembers asking when his team needed to make a business decision without clear, correct answers. B Corp certification serves as a guide for making decisions and attracting like-minded talent, Crestodina said.
2: They don’t understand the power of their stories
For others, their family stories are so embedded in the company culture that it’s difficult to extrapolate the stories and share them. When asked why family businesses have so much difficulty intentionally sharing their stories, Sankofa Legacy Advisors founder Thomasina Williams shared that for many family businesses, stories are the fabric of their lives, their work, and their lives. intergenerational communication. They themselves cannot see the stories, because they are living the stories. They don’t stop to reflect on their stories. They understand their role in the community, their commitment to the management of natural resources. They assume everyone already knows and understands their stories and values too.
3: Generational Divides
There is also a generational divide. Previous generations of family businesses intentionally separated their private lives from their business lives. Robert Pasin, a third-generation Chief Wagon Officer at B Corp-certified Radio Flyer, knows this conflict firsthand. “My grandfather and father were very averse to public relations. They didn’t want any media coverage,” Pasin shared. “Then when we were getting ready for our 80th birthday in 1997, I had a big fight with my dad.”
Pasin decided to hire a public relations firm to tell the story of his grandfather’s founding coming to the U.S. from Italy in 1914 and the birth of the first iconic Little Red Wagon. Although his father didn’t want their names in the newspaper, Pasin went ahead with the plan. “I felt like the company was really struggling. I was looking for something that could rejuvenate him,” Pasin said. He decided to go against his father’s wishes and celebrate the family’s founding story. Since the initial celebration, several campaigns have been carried out telling the family’s story. “We have received literally billions of media impressions telling our story. I think the long-term power of brand building is incredible.”
The conclusion
Family businesses are often a force for good, with values intrinsic to the founding generation. OB Lab brings this community together through its certification process, helping them reflect on how their business processes support their values.
But with new social demands for companies to be corporate citizens, it is no longer enough to simply do good. Companies must share their values and impact through their stories.
What stories do you have to tell? Whether you are a family business or a B Corp or not, you can use the VISIBILITY Ranking to understand how well your company is communicating its values, impact and stories.
