Investor Warren Buffett describes the concept of institutional imperative as “the tendency of executives to mindlessly imitate the behavior of their peers, no matter how foolish it may be to do so.” He added, “I then thought that decent, intelligent and experienced managers would automatically make rational business decisions. But I learned over time that isn’t so. Instead, rationality frequently wilts when the institutional imperative comes into play.”
This unseen force has stifled innovation in businesses while focusing solely on short term financial gains for shareholders only. And covering up for this behavior through dubious communication practices has only complicated things. What role will marketing communication professionals have in expanding companies’ messaging beyond just shareholders going forward? Is change truly afoot, or will there be more of the same?
From the Boeing 737 MAX fiasco to the ever-changing excuses of Facebook to the anti-trust actions against Google, we’ll examine why the communication practices of honesty, trust and admiration will always emerge victorious over institutional imperative. During the quarter we will discuss evolving public and private sector stakeholder communications including, Shareholders, Board Members, and Funders, Communities, Employees, Suppliers, and Customers.”