It is always dangerous to talk about 'knowns' and 'unknowns' now that ex-U.S Secretary of Defense Donald Rumsfeld has had his say on that particular subject.
But when it comes to the subject of corporate reputation, it is worth considering this quotation, attributed to the British writer Aldous Huxley: "There are things known and there are things unknown, and in between are the doors of perception."
In the wake of the financial crisis the reputation of many listed businesses has taken a battering. The UK's biggest companies, those that make up the FTSE100, are no exception. But research just released by the UK's Charities Aid Foundation (CAF) reveals that there is a serious mismatch between what business may be doing, and what the general public thinks it is doing.
The FTSE 100 gave £2.5bn to good causes in 2012 - amounting to a £1.2bn rise since 2007 - despite the economic downturn. The average donation by a FTSE 100 company has trebled since 2007 from £1m to £3m. Donations to charity by the FTSE 100 are actually increasing at a faster pace than their pre-tax profits.
But consumers are largely unaware of this commitment, with people thinking that just over a third (36%) of the UK's biggest companies make donations to charity every year. In reality, nearly all of them (98%) do so.
In its report 'Corporate Giving by the FTSE 100', CAF calls for a more consistent way for companies to report and measure their giving so that they can be "clearer and more vocal about their work with charities." It also asks them to integrate "a clear social purpose" into the core of their business and increase their participation in employee giving schemes.
It also makes another, very important point. The report shows that younger people "are a lot pickier" when it comes to the companies with which they choose to do business. It says nearly two-thirds (65%) of 18-24 year olds are "more likely to buy a product or service from a company that makes donations to charity." This compares with 51% of the general public.
When it comes to working for a company that donates to charity, 61% of 18-24 year olds consider this to be an important consideration - with huge implications for recruitment.
CAF's report finds that the public are "misinformed" about which businesses do the most for charity. Asked to choose the top three most generous sectors, Consumer Services and Consumer Goods were found to be the most popular "by far." In reality, when ranked in terms of total donations, these industries were fifth and sixth, after Healthcare, Basic Materials, Financials and Telecommunications.
So what's going on ? It is all about the 'doors of perception.' According to CAF's research 61% of those interviewed say corporate responsibility is "just a PR exercise." However, 69% think that businesses have an obligation to support the local community in which they operate, and 44% think that business have an obligation to donate to charitable causes.
"We've seen a growing number of brands putting their ethical aims and values at the heart of their businesses, and many have been hugely successful, particularly among a younger age group" said John Low, Chief Executive of CAF. He called for companies to be "more transparent and vocal about the great work they're already doing for charities across the country", suggesting it was a means "to restore public trust in businesses after so many setbacks."
But for listed businesses to to connect with the younger generation, they will have to do more than use a megaphone to convey their message. First they need to learn how to deliver the defining values of their business in a whole new way, to include that "social purpose." Then they need to embrace the challenge of communicating it via social media, instead of just using #socialmedia as just another static corporate platform.
