trustcommunicating what matters

1st edition

SWISS LISTED 2019 - 2020

Switzerland’s largest listed companies

trustcommunicating what matters

SWISS LISTED 2019Switzerland’s largest listed companies

“A man I do not trust could get no money from me on allthe bonds in Christendom… I think that is the

fundamental basis of business.”

JP Morgan, 1912

If a century ago trust was mainly based on personal relationships, digital plays a fundamental role in the relationship between companies and stakeholders. For this reason, we have chosen to name our research .trust (to be read “dot-trust”).

The dot of the digital ecosystem is like a window through which to get to know, understand, and engage businesses and brands. Our ultimate goal is not to measure just the quality of communications but how companies are able to generate trust with customers and consumers, current and potential employees, journalists and local stakeholders.

The image we have chosen to represent this concept is the interweaving of threads because we believe that trust is woven together by different strands, day by day. This new research aims to capture the ability of corporate communications to support companies’ competitiveness and inspire trust, the “currency” of business today just as it was 100 years ago.

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.TRUST: HOW TO GENERATE TRUST THROUGH COMMUNICATIONGaining the trust of investors, clients, and other stakeholders is the key to growing a business with solid foundations and prospects. Transparency, credibility of a company’s commitments, and strategic plans are all elements that earn it. The new Lundquist research series “.trust: communicating what matters” measures the ability of companies to generate trust.

HOW DOES COMMUNICATION HELP COMPANIES BE MORE COMPETITIVE?Companies today face two great challenges: transforming their business to respond to a shifting competitive context and playing a more active role in society. These changes also bring a radical shift in the way companies communicate.

Communication, in fact, holds an increasingly important role in forging trust and guaranteeing the solidity of a business. It must all begin with identifying key company-and stakeholder-specific topics. Companies need to then be able to present their strategic activity, in tandem with quantifiable achievements and concrete actions.

COMMUNICATING WHAT MATTERSPurpose, leadership, storytelling, innovation, and Global Sustainable Development Goals are being used as catch-all terms to discuss the future of a business. But what do they mean for businesses in concrete terms? How can businesses use these elements to strengthen their business and to elicit trust?

We concentrated on companies’ ability to channel clear and coherent messages through various digital channels, since this is how strategic communication is deployed.

For companies to have a common thread running through their digital communication strategies, they will need to share an overall vision amongst all company functions.

Moreover, we provide companies with the means of deploying communications to grow their business

.trust makes sense of new trends and gives companies building blocks for effective corporate communication

.trust is a privileged observatory that includes only companies that have been able to stand out because of their commitment to transparent digital corporate communications. We started with a sample of 55 of Switzerland’s largest listed companies, and only 28 made the cut (see page 11).

This research endeavour is borne of 15 years of experience in Lundquist, gained by listening to the needs of companies and stakeholders alike, and consulting listed and non-listed companies in Switzerland and across Europe to better their corporate communications.

HOW COMMUNICATION GENERATES TRUST How do you create a credible communications strategy in the eyes of stakeholders? As a starting point, there needs to be a strategic message that makes sense of the company’s major commitments and strategies, what we have termed a “line of sight”.

This alone is not enough, concrete examples of initiatives and the way a company works, as well as transparent communications of the results of these efforts are fundamental in substantiating a company’s narrative.

DISTINCTIVENESS (STRATEGIC AND ENGAGING NARRATION)

Making commitments concrete

Making sense of data and concrete actions

SUBSTANCE (DATA AND CONCRETE EXAMPLES)

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COMMUNICATING WHAT MATTERS:A WINNING STRATEGY

STRATEGY AND VISION AS A GUIDE FOR COMMUNICATION.trust rewards companies that are able to demonstrate how their mission or purpose are connected to the business, their strategy, and the way they operate. It is not enough to declare a strategy, but it must be substantiated to be credible. This means including concrete facts and data which provides more clarity about the company than any lofty statement could. Companies that are most convincing are also those that balance their communications strategy between clarity and engagement.

Further details on page 12 1

GIVE MEANING TO INNOVATION AND SUSTAINABILITYLeading companies in presenting innovation and sustainability projects that are consistent with their business strategy, vision, and mission. Substantiating these commitments involves providing concrete examples of initiatives, possibly supported by stories and articles (i.g. the circular economy, investments in local communities, digitisation, etc.).

Further details on page 152

MOVING PAST THE “LIKES”: MANAGERS AS INFLUENCERS ON COMPANY TOPICSCompanies that want to make a clear stand and have their voice heard would do well in having their CEOs act as flagbearers for company themes, especially when it comes to social media. What’s more, highlighting company leadership on corporate sites goes hand-in-hand with creating a more personalised and believable approach.

Further details on page 16 3

STORYTELLING: FROM A GOOD STORY TO SUBSTANTIVE NARRATIVES For users to feel more engaged in company themes and messages the expectation is for companies to concretely narrate their strategic experiences in terms of impacts, innovation, and transformation. A step above such storytelling would be to address the external realities and context the company operates within, using a tone that humanises companies’ efforts. Narrating the company’s vision, addressing hot topics, and creating an engaging story are the 3 basic elements for successful storytelling.

Further details on page 184

AIDING UX WITH STORYTELLING Effective content presentation can truly bring companies ahead of the game when it comes to gaining public attention and recognition. A company’s communication style is defined by its visual communication, language choice, page organisation (an interaction between page structure and design with content and meaning), and mobile navigation, all elements that create a good user experience.

Further details on page 215

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THE ELEMENTS OF SUCCESSFUL CORPORATE COMMUNICATIONWe evaluated corporate websites, social media channels, and Wikipedia presence, focussing the entire research around two fundamental pillars for creating trust and communicating the company’s leadership: “Substance” & “Distinctiveness”.

These two pillars, Substance and Distinctiveness, are then divided into a total of 10 subsections, composed of over 170 individual evaluation criteria that award a maximum of 100 points.

The reasoning behind our decision to focus on these two pillars as fundamental aspects in the creation of trust and leadership, is as follows:

Substance: evaluates a company’s ability to provide a forward-looking and integrated presentation of its purpose. This should then act as a common thread weaved through the business strategy, sustainability commitment, and innovation projects. Moreover, the way in which company management is able to channel these messages and reinforce company leadership is fundamental.

Distinctiveness: evaluates the way in which the company presents its substantive content, if they are able to create an effective narrative and use storytelling to engage their users and stakeholders. We take into consideration elements such as the use of stories, case studies, effectiveness of language and visual communication, the coherent use of social media, and good user experience (on mobile devices as well).

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1 . PROJECTING THE COMPANY IDENTITY How companies express their identity through a mission or vision that acts as an underlying theme throughout the entirety of the company’s narrative.

2 . DESIGNING THE FUTURE OF THE COMPANYThe future vision for the company is clear and concrete within the presentation of the company’s strategy and approach to innovation.

3 . CONVEYING SUSTAINABILITY EFFORTSThe company presents key information, including approach, material issues and stakeholder engagement, data, goals, and reporting.

4 . DEMONSTRATING LEADERSHIPThe opinion and visibility of company leadership is highlighted on the site and social media to engage stakeholders.

5 . ATTRACTING TALENT A detailed overview of what it is like to work at the company in addition to information on job openings and recruitment.

6 . COMMENDABLE CONTENTExtra points for companies that go the extra mile with out-of-the-box content.

SUBSTANCE

1 . TELLING STORIES & TAKING A STAND The company’s ability to present itself and its business through visual and textual narrative elements.

2 . BEING OPEN TO ENGAGEMENT Openness towards the public: company contacts and activity on various social media channels to engage in dialogue with company stakeholders.

3. INTERACTING WITH THE USER Content form and its presentation as means of better engaging the user. Particular attention is given to the effectiveness of language used and content design.

4 . MAKING IT EASY TO NAVIGATE Efficient navigation aids users in finding their way to the information they’re after and helps to define corporate identity.

DISTINCTIVENESS

NOTEThe size of thewedges correspond to theirrelative weight in the research

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WHAT’S YOUR STYLE?When it comes to providing information and doing so in an engaging way, it’s not a choice of either/or. Both are fundamental in explaining the business, and communication must carefully balance both aspects.

Because .trust is organised around two pillars that encompass the essential ingredients of effective business communication, it offers a new way to understand how companies are positioned in relation to their peers and competitors.

On the vertical axis (Substance) we measure the information that users need in order to understand a company, the facts and figures that define the substance of what it does.

On the horizontal axis (Distinctiveness), we measure user experience and engagement, from the presentation of stories and viewpoints, navigation and access to information, and use of social media.

This communication model positions companies and their peers according to their approach to communications. Find out what each quadrant means below.

Four communication styles

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THE EXPLAINERSThese are companies that have awell-defined identity but lack the

ability to engage effectively.The tendency here is to explain and

describe the company in rational tones. They tend to have overly

lengthy sites, made up of long-form text, numbers and documents.

RISKS AND OPPORTUNITIES: these sites tend to be weighed down

by large amounts of information and multiple menu levels, requiring

considerable effort from users looking to find out more about the company.

This will work for users willing to invest time and energy, but they are

increasingly rare.

THE TRADITIONALISTSThis is the most “dangerous” area to be in,

since it demonstrates the absence of a culture of transparency and attention to the digital

user. These companies tend to focus on technical and compliance disclosure, without

demonstrating a distinct corporate identity. Key themes (if any) are treated in a basic way.

RISKS AND OPPORTUNITIES:to avoid moving into the “explainers” or “glitterati” categories, these companies

should focus on transforming their traditional, dry disclosure into

distinctive communications.

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DISTINCTIVENESS

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THE NARRATORSThis category includes companies that present comprehensive and information-rich content, through stories or viewpoints, which are supported by proactive user engagement and social media use. Distinctive elements of the corporate identity are conveyed in both a rational and emotional way, without neglecting current industry and contextual issues.

RISKS AND OPPORTUNITIES: digital is driving a convergence between corporate and commercial communication. But be careful not to sacrifice important corporate content in the quest to simplify user experience.

THE GLITTERATICompanies in this category focus on visually striking elements. While their websites certainly give off a “wow factor”, the lack of substance and the inability to explore the content in further depth creates frustration.

RISKS AND OPPORTUNITIES: strong attention to digital is precious because it tends to put the user at the centre; however, being able to communicate with different stakeholders may imply the need for a cultural shift within the company.

THE QUESTIONS THAT GUIDED OUR ANALYSIS • Does the company project its own vision for the future as well as communicating its role and mission?

• Does the company narrate their business context, including what factors contribute to its success and what creates trust in the brand?

• Does the company respond to the growing expectations of its clients and of the market context overall in terms of innovation, contribution to the development of the countries the companies operate within, attention to the supply chain, and fight against climate change?

• Does the company emotionally engage its readers? Do they provide concrete examples of the way they act in the market, environment, and

society?

• Is the company able to use different digital channels to convey their messages?

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HOW DO THE BEST COMPANIES IN SWITZERLAND COMMUNICATE?The .trust research series is a privileged observatory that analyses only companies that have consistently demonstrated a commitment towards transparent digital corporate communications. This is why our research only includes 28 Swiss companies out of an initial sample of 55.

There are companies that stand out in the sample, and they have achieved a standing in the Narrators quadrant (in the top right hand corner of the graph), since they are able to balance the presentation of a clear corporate vision as well as engage the user.

The companies that excel in the Narrators category are Roche, Swisscom, Nestlé, Sika, Novartis and Givaudan. These companies have a consolidated stance on transparency and invest greatly in their digital corporate communications. In particular, Roche is the company that was best able to communicate its role and the activities it is involved in that help it reach the goals laid out in its strategy, which is why it achieved the best results in Substance. Many Swiss companies fall into the Glitterati category, that is, 46% of companies.

This demonstrates a rather high dedication to form over function, as Swiss companies seem to be prioritizing the way they present company information over providing all the necessary substantive information.

No Swiss companies included in the list have made it into the

EXPLAINERS quadrant, which is the category that most heavily relies on

substance, without investing enough in making a company distinctive.

This is a clear indication that Swiss companies tend to lack a high

degree of concrete and relevant information that backs up their company narratives.

Just about 25% of companies can be categorized as TRADITIONALISTS.

To be sure, it is a positive sign that few companies fell into this category, as

it is a category in which companies present basic information with little

narrative effort.

Many companies in this quadrant have a clear stance, but they

invest too heavily in commercial statements without providing enough

evidence in their digital corporate communications.

Company positioning

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Straumann

SGS

Lonza

SchindlerCredit Suisse

Dufry

Richemont

Swiss Prime SiteIdorsia

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Swiss Sleepers and Traditionalists make upabout 62% of the initial company sample of 55 companies. Swiss companies now find themselves at a significant crossroads on the journey towards creating a distinct sustainable and trustworthy corporate communications culture.

While it might be appealing to take the easier path towards becoming a Glitterato with quick aesthetic fixes, companies should aim higher. In fact, companies should aspire to become Narrators, achievable only by balancing company communications with coherent and consistent facts and presentation styles.

Eight companies (29%) are in the NARRATORS category, meaning these companies are able to present a clear vision of the company supported by a distinct capability to engage the user-stakeholder. Their strength lies in their attention to Substantive information and therefore also have a very transparent approach to digital communications, although there is room for improvement.

Five of these eight companies are consumer companies.

Few companies have yet to invest enough in corporate storytelling and in content that is both engaging and concrete as a means of distinguishing their company’s digital presence.

In the most populated quadrant, the GLITTERATI, we see companies such as Barry Callebaut and Baloise, companies that have user friendly and visually appealing websites, without the necessary substantive information to make them credible.

Barry Callebaut is a particularly interesting case, in 2019 the company launched a new site and opted for simplicity and aesthetic presentation and left out some of the information that matters most to stakeholders. Simplicity does not always benefit a company when it comes to communicating with their stakeholders on digital platforms.

DISTINCTIVENESS

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Roche

Swisscom

Nestlé

Sika

Swiss Life

LafargeHolcim

Zurich Insurance

Givaudan

Sulzer

Clariant

Swiss ReGeorg Fisher

UBS

Barry Callebaut

Sonova

Schindler

Novartis

Credit SuisseABB

Baloise

OC Oerlikon

WHAT COMPANIES WERE INCLUDED IN .TRUST? The .trust sample began with the 55 companies that had been included in the 2018-2019 edition of Webranking research, which includes the largest Swiss companies by market cap.

We evaluated only the 28 companies that have reached a base-level of transparency and passed the Webranking “stress-test”, which means companies that were able to surpass the 50-point mark (out of a total of 100 points).

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Companyidentity

Future of thecompany

Sustainability efforts

Demonstrateleadership

Attractingtalent Commendable

content

71%

41%

41%

13%

49%

11%

THE ROLE OF A CLEAR PURPOSE In August of 2019, about 200 American CEOs at the Business Roundtable declared that companies not only need to cater to the interests of investors, but they also need to invest in the interest of their employees, the protection of the environment, and a correct handling of suppliers. This declaration on “the purpose of a corporation” responds to growing external pressures so that companies can face the problems of the contexts they operate within.

More and more companies are in need of redefining their mission and purpose, that is, the impact that they intend to have on society. However, to be credible it is important for companies to demonstrate that their purpose is not simply a marketing instrument, but that it also brings about significant changes in a company’s day-to-day business.

It is necessary to use substance as a starting point: concrete facts and data better define a company in relation to any topic they might be addressing.This is precisely why .trust has rewarded companies that, on the one hand, were able to demonstrate how

their mission and vision is connected to their business, their strategy, and their modus operandi. And, on the other hand, that concretely expose their commitments. Most companies clearly define their mission and purpose (this research does not distinguish between the two even though the difference is substantial).

More companies like Roche, Sika, and Sonova are using a comprehensive approach wherein their mission is not presented as a simple declaration extrapolated from their annual report, but as a guide to understand the company’s business actions and approaches. This is what is conveyed through their communication.

An effective way to understand whether the mission is indeed an integrated part of the company (and not an empty statement), is to understand if it is linked to the company’s business and sustainability strategies. Although the majority of the companies considered

describe a strategic approach without limiting themselves to the presentation of their business plan, few make an explicit connection with their mission (29%). Some companies that do so successfully are Baloise, Givaudan, Nestlé, and Barry Callebaut.

Are the company’s mission and strategy following the same line?

BEST COMPANIES IN“FUTURE OF THE COMPANY”

Companies’ performance in SubstanceAverage score percentage of the maximum section score.

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Companies have always needed to be flexible towards their surroundings, adapting and responding to external changes that in today’s world have increased in pace and are without precedent.

This is precisely why the need for companies to invest in innovation has become fundamental for all companies, even among sectors that are traditionally conservative.

A majority of companies considered refer to innovation, while half of the companies sampled make a savvy connection between their innovation efforts and their strategies using concrete examples.

Companies to keep an eye on in this regard are Baloise, Givaudan, Nestlé, Novartis, Oc Oerlikon, Roche, and Sika.

Buzzword: Innovation

How to be credible in the presentation of your companystrategy: 5 key elements

1. Defining commitment The first step is to transmit a company vision, how the company is lookingto the future.

2. Connecting strategy and market trends A strategy needs to be contextualized in its broader business environment, including the challenges such an environment creates, and global and sector trends that influence the company.

Goals

3. Sharing precise goals The strategy needs to become concrete in the form of precise goals (both qualitative and quantitative), and not only economic or financial goals, but ones that touch on various aspects of the business.

Actions

4. Presenting actions to reach company goals To make the company’s commitment concrete, it is necessary to present examples of actions the company has taken to reach their objectives, either in the form of stories or case studies.

5. Measuring progress towards company goalsTo prove that the company is following through on commitments, it must highlight the steps taken in that direction. This means including data that provides solid proof that the company is “keeping their word”.

Progress

Based on our experience and practices collected in the analysis we have created a handbook for the presentation of a credible business and sustainability strategy.

GIVAUDAN Givaudan makes it clear that innovation is at the heart of their business, and they do well to link it with their sustainability commitments.

In fact, they specify that their innovation programs are directed towards expanding their natural ingredients base, increasing health and well-being by delivering healthier taste-alternatives, and ensuring a sustainable production process.

Exemplary Companies for innovation

Context

Commitment

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Exemplary Companies for innovation

WIKIPEDIA: WHY AND HOW TO INVEST IN IT

Entries about companies on Wikipedia, the 5th most visited website in the world, are part of any company’s digital corporate identity. For this reason, Wikipedia entries are evaluated within our new research .trust.

The vast majority of companies have their own Wikipedia article, in fact, only Idorsia is lacking one. However, only 7 articles out of 27 meet the criteria laid out by our research, made up of basic elements that any Wikipedia page should contain. These companies are Zurich Insurance Group, Swiss Life, Roche, OC Oerlikon, Nestlé, Credit Suisse, and ABB.

It is interesting to note that 14 companies do not satisfy one of the most basic criteria for a credible Wikipedia page (having a good number of references), and 8 companies present some form of alert which signals problems with the page such as self-promoting information or a lack of reliable sources.

“It may seem easy to step in and correct mistakes or fill in missing information but you need to do so correctly. Without full knowledge of Wikipedia’s rules and community etiquette, users risk generating alerts or even having their accounts or IPs blocked, thus provoking reputational damage”, says Daniele Righi, head of Lundquist’s Wikipedia research.

Companies can take part in the content-building process, together with the community, in a productive manner.

This is demonstrated by our 10 years of experience working with Wikipedia and supporting companies looking to establish a collaboration with the online encyclopaedia.

For further information: lundquist.it > Our thinking

BALOISE Baloise has an entire section of their website dedicated to their innovation timeline, a creative way of presenting their investments in R&D. Each innovation on their timeline links to a related video, story, or article. Baloise also connection

innovation efforts to their mission, stating explicitly that it is part of their “Simply Safe” strategic journey.

SIKA Innovation is key to the way Sika operates.

To substantiate this claim Sika dedicates an entire section of their website to Innovation, both in terms of the R&D efforts

they are pursuing, as well as the technologies they have developed and are perfecting for construction materials.

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A sustainability strategy is a key element when it comes to evaluating a company’s commitment for many stakeholders.

The fundamental elements to an effective presentation of sustainability information is similar to those that we have delineated for the business strategy.

While most companies considered present their sustainability strategies, few connect it to their mission or vision (29%), and even fewer prevent substantiating case studies (21%). This is definitely an area in which Swiss companies need to invest far more to see good results.

Some however, have been able to stand out particularly in this area, with Nestlé and Roche at the top of this list, followed by Sika, and Swisscom.

Connecting business and sustainability strategies

To be competitive, companies need to not only engage with their market, but they need to address their reputation, their talent, and their ability to attract individual attention.

OUR SUSTAINABILITY RESEARCH SERIES

When it comes to communicating a company’s sustainability commitments, companies are being called upon to give their readers concrete and convincing answers.

To do so, we need to break with the report-driven approach that can end up creating static and heavily technical content that ignores the needs of the digital user.

This extraordinary evolution in the sustainability scene is reflected in our .future research series, formerly known as CSR Online Awards, which concentrates on the interaction between the Substance and Distinctiveness of a company’s digital communications and disclosure of their sustainability commitments.

Our ambition with .future is to evaluate what companies are leading the way, and share some of the best practices and guidelines as to how companies can better construct their sustainability communications and prepare

for this evolving scenario. Our evaluation of the first Swiss .future 2018, which we published in collaboration with the Zurich-based Centre for Corporate Reporting, found that Swiss companies are sleeping on sustainability communications. To find out more, head over to our website: www.lundquist.it

THE BEST COMPANIES IN PRESENTING THEIR SUSTAINABILITY EFFORTS

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THE ROLE OF COMPANY LEADERS IN CREATING TRUST Narrating the commitment of a company’s top management on the corporate website and through social media is a key step in the journey towards gaining attention and forging a reputation.

Just as any organization, a company evolves within its temporal context and constantly projects a vision for the future. To generate trust, therefore, it is fundamental for company vertices to transmit this vision and purpose, and to express a concrete business strategy.

Our communication context continues to evolve, and requires companies to instil and maintain trust amongst its audiences, without taking it for granted.

With the rapid transmission of digital information, we have grown accustomed to having direct relationships with people, brands, and organizations, and we have gained the ability to follow the faces of those who work “behind the scenes” as a means of humanizing a company.

As a direct consequence, there is a growing mistrust of everything that reads as impersonal.

To be competitive, companies need to not only engage with their market, but they need to address their reputation, their talent, and their ability to attract individual attention.

The most followed CEOs are also those that post most frequently about topics related to their company. Novartis’ Vasant Narasimhan and UBS’ Sergio Ermotti reflect this statistic especially well, both CEOs post at least twice a week, and are in fact the only CEOs whose followers hit six figures. Other CEOs with a higher LinkedIn following are Jerome Lambert from Richemont, Christian Mumenthaler from Swiss Re and Gilles Andrier from Givaudan.

CEO Twitter presence is less common: only 4 CEOs of the companies included are present on this platform. However, the four that do have a Twitter account (UBS, Novartis, ABB, and Baloise) directly engage with key company topics.

The social media channels CEOs choose to use also reflects a company-specific decision. Almost all companies in fact are active on LinkedIn, preferred above Twitter, but especially above Facebook and Instagram.

MANAGERS CONTINUE TO HAVE LOW VISIBILITY ON CORPORATE SITESMany companies prefer to not highlight individual management figures, which is reflected particularly by the lack of the CEO’s “voice”, and even less so of other leadership figures that could provide interesting insight on various business areas or company activities. The section of the research “Demonstrating Leadership” has in fact received the lowest average scores in the entire research.

Often the presence of managers is reduced to a single citation within the website, but it is much rarer to find a more significant presence in the form of videos, for example.

However, social media provides the ideal platform to directly engage with the public and to promote themes that are at the heart of a company: about 61% of CEOs of the companies included in .trust have LinkedIn profiles.

THE MOST FOLLOWED CEOS ON LINKEDIN

Vasant Narasimhan Novartis

Sergio Ermotti UBS

Jerome Lambert Richemont Christian Mumenthaler

Swiss Re Gilles Andrier Givaudan

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Commendable examples on corporate sites

ROCHE Roche dedicates an entire page to its CEO Dr. Severin Schwan, complete with video interviews of his point of view on key company topics such as the digitisation of healthcare, as well as an overall company presentation. The company adds a personal touch with insights from their CEO on how he deals with stress, his ambitions, and his pride.

NOVARTISNovartis includes citations from their company management across their website, particularly well-placed when it comes to the company’s corporate responsibility and commitment to providing healthcare access in developing countries – an insight from Novartis’ Head of Sustainability.

ABB Dr. Peter Voser, ABB’s CEO is particularly active on Twitter, posting often about company topics and even more frequently retweeting company tweets as means of gaining visibility.The themes addressed on social media are in line with topics discussed throughout the corporate website and aid in providing audiences with a consistent company narrative.

UBS UBS is one of the few companies whose CEO posts frequently enough to attract a significant follower base. Dr. Sergio Ermotti’s posts are directly related to the company he represents, writing posts of his own and re-posting company posts. Ermotti stands out for his articles on LinkedIn as well, wherein he addresses some of the company’s material themes.

Commendable examples on social media

AREAS OF STRENGTH (% of companies included)

61% CEOs present on LinkedIn

93% companies post on Linkedin

WHERE TO INVEST MORE (% of companies included)

7% CEOs that post company-related information on LinkedIn

11% CEOs with a Twitter presence

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In the past few years, words such as “storytelling”, “brand journalism”, and “content marketing” are on everybody’s lips.

Stories, articles, videos and blogs: these are just some of the ways companies today are looking to go beyond traditional disclosure in their communications. Our Swiss results are encouraging: well over two thirds of the companies in our research sample are experimenting with these new forms of content.

What emerges from our analysis is that many companies lack maturity when it comes to their digital corporate communications: many engage in storytelling without providing substantive elements and clear messages to back up their claims.

A successful story needs to be able to face key company topics and topics of stakeholder and public interest, without engaging in unfounded self-praise.

THE “WHY” Storytelling has to link to

the company, its corporate identity and its strategic

vision, mission, or purpose, key elements in meeting

stakeholder expectations. It is important to use

storytelling as a medium to support business goals.

THE STORY The narrative presentation including the “who”, the “where” and the “when”, along with the technical execution of the story and its ability to prompt an emotional response in the user.

CORPORATE STORYTELLINGIn .trust, we have combined these two elements

so that we can evaluate not only how effective the content produced really is but also the story’s ability to depict a company’s daily reality, from its strategic commitments to the context whitin wich it operates.

INSPIRING TRUST THROUGH STORYTELLING Presenting the company transparently is essential for effective communication, but it is no longer enough. Companies need to invest in defining a clear corporate narrative, accompanied by concrete examples and case studies. These “exemplary narratives” bring the reader closer to the company.

New digital tools have provoked an explosion of activity, but the only form of effective storytelling is that which exposes the company’s strategic objectives and business context.

INGREDIENTS OF CORPORATE STORYTELLINGHow can storytelling content contribute to a relationship of trust with users and stakeholders? How can stories and articles effectively contribute to projecting the distinctive elements of a company?

Based on our years of experience in the field and multiple research projects, we have come to the conclusion that corporate storytelling can be broken down into two distinct parts (and this is what, ultimately, makes it different from brand storytelling and content marketing):

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BEST IN “STORYTELLING AND TAKING A STAND”

Storytelling elements fare relatively high within Swiss corporate communication standards. In fact, about 68% of companies use stories to develop their company themes on a deeper level. However, 6 companies out of the 28 evaluated present no narrative content, such as articles, case studies, or stories that assist the user-stakeholder to better understand the company.

Those that do present company stories most often write about their own products or business services (75%), sustainability (71%), and innovation and R&D topics (57%). There are still few companies that present narrative content related to their identity and business strategy, rather most present information that has a direct commercial purpose. Swiss company stories often address topics that are relevant internally, 64% go the extra mile and use stories as

a tool to explain the external context in which the company operates. However, only 7 companies do so consistently.

Notwithstanding this significant attention to storytelling, it is far rarer to find companies with stories in the fullest sense of the word. Many in fact present stories massed together with other articles and news items. Nestlé fares particularly well when it comes to the presentation of stories.

Visual communication is also significant for Swiss corporate sites, with a little more than half occasionally using images and videos. Though there is definite room for improvement: companies that develop a distinctive visual communications strategy fare best at captivating their audience. Swiss Life, Baloise, and Swisscom are examples of this.

Storytelling initiatives in Switzerland

Exemplary Companies

CLARIANT Other than the company’s consistent commitment to storytelling throughout the site, Clariant’s “Discover Value” section provides informative content that presents Clariant’s products and innovations, doing so in a very engaging and aesthetically pleasing way.

ROCHERoche demonstrates consistent effort towards storytelling and a significant amount of topic variation. Moreover, the website’s textual content is accompanied by coherent consistent visual elements.

Key elements for successful storytelling

ADOPT A FIRST-PERSON POINT OF VIEW Does content allow us to understand - and see - the company, its work and people? Does it reveal its strategy, mission and purpose?

1 THE TECHNICAL EXECUTION What formats are used for this type of content? How are they integrated into wider corporate communication? Does the digital ecosystem promote this content? Do they provide a human touch?

32 SPEAK TO THE CONTEXT AND HOT ISSUES Does content address industry topics and the business context? Does it provide a point of view on current issues?

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HOW TO GAIN ATTENTION IN AN INCREASINGLY CROWDED DIGITAL SCENE In the social and digital era, “noise” represents a significant challenge for communication. The cost of publishing and distributing content has plummeted, which has brought about an excess of information dissemination. In this context, it becomes increasingly more difficult for companies to attract attention from their intended audience. Other than the relevance and credibility of the content (substance) it is fundamental to display this information in a narrative and presentative manner, which must be engaging and easily accessible.

HOW TO ATTRACT ATTENTION Clear, concise and direct language, coherent visual communication in line with the company’s mission, a page structure that aids in the understanding of content, and overall aid for the navigation of the site (search engine, speed of the website from mobile devices as well, and navigability) are all fundamental aspects of effective communication.

It is interesting to note the efforts of many companies on the list in structuring their pages through “progressive disclosure”, highlighting general concepts first and delving into greater detail later in the page or the navigation structure.

What needs to be improved, however is the organization of the menu, that needs to prioritize ease of use over aesthetic appeal.

As was revealed through the Siteimprove analysis which is part of .trust, no companies have a particularly fast website on mobile devices.

OUR RESEARCH CHECKLIST FOR COMMUNICATING EFFECTIVELY

Clear and concise language Coherent visual communicationPage layout that aids users in prioritizing informationEase of navigation Good mobile user-experience

THE BEST COMPANIES IN USER EXPERIENCE

Swiss performance in Distinctiveness Average score percentage of the maximum section score.

Make it easyto navigate

Telling stories &taking a stand

Being open to engagement

Interacting with the user

45%

58%

64%

57%

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TECHNOLOGY AT THE SERVICE OF USERSUser experience is the grouping of methods a company uses to optimize the experience of their audience.

To evaluate various websites’ user experience in a precise and consistent manner, we partnered up with Siteimprove, a software company founded in Copenhagen. Thanks to this collaboration we were able to monitor the effectiveness of various websites thanks to a platform that analyses over 300 parameters, grouped into four macro-categories.

The analysis conducted through the use of Siteimprove’s software significantly contributes to the evaluation of user experience in .trust, specifically with regards to those elements thatcan be classified as quantitative.

WHAT WE MEASURED THROUGH THE SITEIMPROVE PLATFORM

Quality assurance: We verified the presence of non-functioning links, both in HTML and in PDF documents, orthographical errors, and unsafe domains.

SEO: is the part that resulted in the best performance in our ranking. We analysed three different components that are needed to optimize the traffic coming from search engines: meta description, structural content with titles, velocity on mobile, and navigation paths.

Accessibility: the automatic evaluation of alt tag, meta description, and structural problems that can be an obstacle to smooth navigation.Swiss companies have a good average score.

Performance: evaluation of the loading speed of the homepage on mobile interface, slow and fast 3G simulation, 4G, and fixed landline. Swiss companies have a very low average score in this area.

“The analysis with Siteimprove highlights the fact that Swiss companies have done a good job in quality assurance in past few years when it comes to maintenance and website SEO, but they still lag behind when it comes to more current themes such as accessibility and performance of the mobile site.”

Marcus Kosak Managing Director Switzerland – Siteimprove

Exemplary companies

NESTLÉNestlé invests in a page structured for an

optimized mobile user experience, with a menu that is easy to use and a website that is overall

easy to navigate thanks to a logical flow and branching out of sections.

THE “Q-FACTOR” The .trust research series accredits companies based on the presence of necessary information on the corporate website, as well as the way in which it is presented.

This is why we both heavily weighted the Distinctiveness section and also introduced criteria for qualitative evaluation of the most relevant information of the Substance section.

SWISS PRIME SITE Swiss Prime Site is one of only two companies

that fare particularly well when it comes to website accessibility as demonstrated by our

partner Siteimprove’s analysis.

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THE PLACEMENT OF SWISS COMPANIES IN THE 2019 RESEARCH .trust rewards those companies that are best able to balance substantive and engaging content. We therefore divided the companies in different classes, based on their ability to balance these two elements without investing too much in one to the peril of the other.

NOTE

*WHAT COMPANIES WERE INCLUDED IN .TRUST? We believe that to reach effective corporate communication and gain the trust of stakeholders, first and foremost companies need to exhaustively communicate their identity and activity.

This is why the study only evaluated companies that were able to demonstrate consistent commitment, by having reached a good level of transparency in the 2018-2019 edition of Webranking (reaching 50 points and above). The companies that were excluded have been termed “Sleepers”.

To gain access to the next edition of .trust it will be possible to request an ad hoc re-evaluation of your corporate transparency.

HOW WAS THE ANALYSIS CONDUCTED? .trust evaluates the English version of corporate Websites and social media, concentrating on two elements that we consider to be essential to inspire trust in a company’s stakeholders: SUBSTANCE (50 maximum points) and DISTINCTIVENESS (50 maximum points).

The evaluations are carried out between September and October.

GOLD

SILVER

BRONZE

Roche

Swisscom

Nestlé

Sika

Swiss Life

LafargeHolcim

Zurich Insurance

Givaudan

Straumann

Sulzer

SGS

Lonza

Clariant

Swiss ReGeorg Fisher

UBS

Barry Callebaut

Sonova

Schindler

Novartis

Credit SuisseABB

Dufry

Richemont

Swiss Prime SiteIdorsia

Baloise

OC Oerlikon

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lundquist.trust

GOLD CLASS

Givaudan Nestlé

THE SLEEPERS (those not included in .trust)

ADECCOALCONBANQUE CANTONALE VAUDOISEBB BIOTECHBUCHER INDUSTRIESDKSH HOLDINGDORMAKABAEMS-CHEMIEFLUGHAFEN ZURICHGAMGEBERITHELVETIAJULIUS BAERKUEHNE+NAGEL INTERNATIONAL

LINDT & SPRUENGLILOGITECHMEDACTA GROUPPANALPINAPARTNERS GROUPPHILIP MORRISPSP SWISS PROPERTYSTADLER RAILSUNRISESWATCH GROUPTEMENOS GROUPVAT GROUPVIFOR PHARMA

SILVER CLASS

Baloise

ZurichInsurance Group

Credit Suisse

BRONZE CLASS

ABB Barry Callebaut

Novartis

Sonova

Schindler

Roche

Oc Oerlikon

UBS

ON THE BENCH

Clariant

Lafarge Holcim

Straumann

Dufry

Lonza

Sulzer

Georg Fischer

Richemont

Swiss Life

Idorsia

SGS

Swiss Prime Site

Swiss Re

Swisscom Sika

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ABOUT US

THE VALUE OF .TRUSTOur new .trust research series evaluates companies’ ability to narrate their strategic vision, the strengths of their brand and business, to communicate leadership and inspire trust amongst their stakeholders.

The research represents a privileged observatory that includes companies able to distinguish themselves through their efforts towards transparent digital communication.

For further information on the research and to request an in-depth analysis of your company, please contact:

Arianna Evans Country Manager for Switzerland arianna.evans@lundquist.it

Lundquist bridges the gap between companies and their audiences: that’s because we get to know both intimately. As specialists in corporate communications and sustainability, we are independent, international, and trusted to guide companies towards greater transparency and stakeholder requirements.

We put our minds to work using structured and rigorous approaches to ensure each project is unique and tailored to the client’s specific circumstances.

For more information: lundquist.it

For the analysis of user experience, we collaborated with Siteimprove, a software company

that aims to simplify the handling of websites. Its intelligent automation software provides all

necessary guidance for managing a website with excellent performance.

CONTACTS

Markus Kosak

Managing Director Switzerland

T: +41 445510346 - E: mkk@siteimprove.com

www.siteimprove.com

.futureThis research series

investigates how companiesuse their digital channels

to inform and engage with stakeholders on sustainability

issues. .future helps companies understand trends, assess their current situation and

get concrete suggestions to improve their sustainability

communications.

WebrankingSince 1997, Webranking

monitors corporate and financialcommunications through thedigital channels of the largest

listed companies in Europe.It measures the gap betweenstakeholder expectations andwhat companies are actuallypresenting. The research isbased on a yearly survey of

stakeholders’ needs.

WikipediaGoing back to 2008,

we have been monitoring the exhaustiveness of

Wikipedia articles about major corporations. Through the

study, we defined guidelines for companies to help them engage with the Wikipedia

community in a constructive manner.

Blurring BoundariesNew in 2018, the research seeks to guide companies through the transforming

landscape of sustainability reporting. It focuses specifically on integration of sustainability

themes into the broaderreporting ecosystem and

provides a benchmark of 50sustainability leaders

in Europe.

Our approach is grounded in 15 years of experience and of research projects that measure the efficacy of corporate communications.

Research as a foundation for our approach

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lundquist.trust

.trust is part of a structured program that Lundquist implements to help companies communicate more effectively by engaging public interest, investor interest, and client and media interest. Our goal is to find the right balance between external points of view and corporate communications goals.

Thanks to its clear and measurable criteria, .trust can help to resolve weaknesses in digital corporate communications and define strategies to improve both in the short and long term.

It’s a great opportunity to raise awareness internally about the importance of communications, engagement and dialogue as assets for successful communications strategies and for learning from best practice companies.

HOW WE CAN HELPThe .trust research is a tool that allows you to better understand the degree of maturity of your digital corporate communications. It measures a company’s ability to inspire trust through its digital communications, looking at transparency of information, stakeholder engagement, and distinctiveness.

The research provides the foundation for higher-level strategic projects by understanding and establishing where the company’s starting point is.

The challenge for companies is then to create a coherent and convincing narrative, capable of describing the company’s role today, and its vision for the future. To better face this challenge, order a .trust assessment from Lundquist!

Our goal is to support companies during this phase, as attention from traditional disclosure shifts to effective corporate communications. This is why our new research activities evaluate transparency levels (“Substance”) and companies’ ability to create an effective and engaging corporate narrative (“Distinctiveness”).

Thanks to our understanding of stakeholder expectations and our corporate experience, we are able to support companies not only in improving the effectiveness of their corporate communications but also in defining clear communication strategies and presenting them effectively, engaging in dialogue with stakeholders.

Our experience

MEASURE EFFECTIVENESS• Thanks to our research and our experience, we measure the effectiveness of your digital communication compared to peers and best practices. • We present tactical actions and concrete suggestions for improvement• We help companies understand the needs of their stakeholders and the navigation on the site• We help companies in the handling of their Wikipedia entries

ENGAGE FOR A SUSTAINABLE FUTURE• Thanks to an approach based on stakeholder needs and an analysis of company priorities, we help create a culture of sustainability that represents a real addedvalue for the company• We define sustainability and communication strategies that help companies face impacts and stand out• Within the company we create a sustainability culture through dialogue and training

TAKE REPORTING TO THE NEXT LEVEL• We support companies in the creation of sustainability documents (sustainability reports, NFD, thematic reports, abstracts, etc.) following a narrative approach that surpasses mere compliance, and values a company’s key messages and distinctive elements• We design communication projects that begin from the definition of material themes to guide and structure visual and textual content, all starting from the needs of the audience

BRING YOUR VISION TO LIFE• We help define a “line of sight” that creates coherence in company messages• We define content strategy that guides the organization and production of content• We give life and concreteness to content by defining a consistent tone of voice and visual strategy• We provide ideas for engagement campaigns

How we meet your needs

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Joakim LundquistLundquist CEO

t (+39) 339 5013612joakim.lundquist@lundquist.it

Sara RusconiContent Strategist

and Lundquist Partner

t (+39) 347 2457669sara.rusconi@lundquist.it

James OsborneHead of Sustainabilityand Lundquist Partner

t (+39) 349 7937853james.osborne@lundquist.it

Get in touch for more informationabout our work