Every participant in our industry maintains their requisite licensing to operate. It is one of the explicit ‘hygiene factors’ without which industry participants simply cannot operate. What we have lost, however, is our implicit license to operate – our ‘social licence’.
Firstly, what is ‘social licence’?
‘Social licence’ defines our corporate social responsibility and community relationships, underpinning how we engage with social, community and environmental issues. Social licence implies trust, openness and transparency with our key stakeholder groups and hence is a critical piece of the infrastructure on which we build a successful future.
Social licence is a bit like the equity you have in your brand. It’s hard to define, but you know when it’s gone.
What do consumers really think of you?
In the eyes of government (of either persuasion), as industry issues have emerged in the last few years, we have not responded in a way that met expectations in terms of the opportunity to self-regulate to prevent recurrence. Accordingly, and unsurprisingly, over the last 5 years we have been subjected to numerous Inquiries, Parliamentary Joint Committees and other scrutiny, as government perceives we are not acting in a way that the public (their key constituency) expects.
Almost without noticing, as a profession we have become the subject of public derision – despite the undoubted great work we do every day in helping Australians achieve their life goals.
How can I change this perception within my business?
Industry-wide, we need to reach out to and meaningfully engage with our industry competitors, including consumer groups and industry super funds to fix this issue.
Just an importantly, you can help with changing perceptions through the everyday conversations you’re having with your clients. It’s the old saying, ‘think globally and act locally’.
Make sure you actively engage and spend meaningful time with your clients, articulating how you help them achieve their goals in life. Talk about the values your business holds and how you live these values. Importantly, address any concerns directly that your clients may have about financial planners. Ask them whether they’ve seen any negative press, and address any objections through open and transparent conversation about your approach and how your business and you personally will help your clients achieve success.
More broadly, embrace change such as additional transparency around qualifications and ongoing professional development. These are important building blocks for public confidence and critical to helping restore pride in the great work we do every day.
