In a constrained economy when companies reach for the red pen, communication budgets are often among the first to be cut. But history shows that scaling back on reputation and-building can have a negative knock-on effect, and that being faced with business contraction and a challenging marketplace is precisely when communication should be stepped up. 

For stakeholders, communication builds and maintains trust while assuring them of a company’s strategic direction. For staff, it reduces anxiety and maintains productivity, contributing to loyalty and commitment. Consistent communication shows that an organisation is aware of any issues and is responding to them to allow for future growth. 

During economic downturns, customers become more cautions, employees more anxious, and investors more wary to put money on the table. Adding silence to this environment creates a vacuum that will be filled by competitors, critics and false conclusions. Take the case of Pick n Pay’s multi-year turnaround. The company clearly stated what their strategy involved, what it is focused on achieving and how this will be done. While they expect to only achieve bottom-line profitability in 2028, they communicate milestones achieved as its balance sheet stabilises which has helped its share price. This example proves that companies that thrive in turbulent conditions are those that continue to speak with clarity, conviction and consistency, and who are positioning themselves as future leaders instead of a casualty of circumstance. 

Even with tighter purse strings, companies can remain communicative by using more targeted communication. The use of thought leadership and related content to help frame policy and regulatory debates happening in a specific industry or sector, helps companies and industry associations influence for the better the policy trajectory. Digital platforms are another channel where it is crucial to sustain authentic connection not only with customers but also clients. 

Bucking the trend to improve the bottom line by cutting the communications budget means resisting the temptation to retreat, and choosing visibility. In South Africa, where businesses are navigating electricity and/or water shedding, global trade tariffs and local policy uncertainties, the companies that demonstrate that they understand and can enact, solutions, are those that will be respected and supported. 

As many a South African businessman can attest, tough times present both risk and opportunity. Choosing to invest in communication is choosing to lead by giving shape to the conversation in the face of others’ silence. The true test of if a company has invested enough in their communication will only be visible when a crisis hits: is your leadership certain that it has solidified its reputation as an ethical, responsible corporate citizen who is trusted to do the right thing – or will the voices of its critics drown out your response? 

Lauren Cohen
Account Director