Category: Uncategorized

The new role of corporate affairs in the intersection of innovation, regulation, and communication

At this year’s World Economic Forum in Davos, Microsoft CEO Satya Nadella highlighted the responsibility of tech companies to “consider the unintended consequences of new technology” and to communicate these openly. He also voiced hope for global agreement on common norms for artificial intelligence. Microsoft has long been a vocal advocate for the regulation of certain technologies, such as facial recognition software.

t’s uncommon for companies to call for government regulation of their own innovations, but Microsoft recognizes a crucial insight that many others are still grappling with innovation, regulation, and communication must be addressed as an interconnected triad.

Lack of Trust in Innovations

The critical interplay of innovation, regulation, and communication is underscored by the latest Edelman “Trust Barometer.” The report reveals a significant lack of trust in innovations among Germans: only 17% support AI, and just 20% back gene-based medicine, while 50% and 45%, respectively, fundamentally reject these technologies.

The report highlights that acceptance of innovations increases when people believe they are managed well—yet currently, only 14% of Germans have this confidence. A positive takeaway for decision-makers is that the economy is seen as the most trusted sector to implement innovations safely and responsibly. However, over half of respondent’s desire closer cooperation between companies and the government in introducing new technologies. Moreover, a clear majority (59%) expect CEOs to address the societal impacts of these advancements publicly.

Corporate affairs become the key to sustainable success.

Sabine Richter – Founder Faktor 3

These numbers underscore a critical insight: at the intersection of innovation, regulation, and communication, corporate affairs play a pivotal role in building trust—an essential component for sustainable progress. It’s not just about adhering to compliance requirements but about embedding these requirements into a robust communication strategy.

The trend towards proactive innovation regulation, as seen with initiatives like the AI Act, DMA, and DAS, presents companies with a unique opportunity to foster trust through transparent and proactive communication. By engaging in preventive dialogue and offering political advice grounded in practical experience, innovative companies can share their expertise and build essential know-how. This approach helps to mitigate the risks of excessive regulation—often driven by fear—by fostering informed, balanced regulatory frameworks.

Regulation as an opportunity

Modern innovation regulation demands something not traditionally found in the German and European regulatory frameworks: flexible, adaptive laws that can evolve with technological advancements. The AI Act begins to address this with initial flexible approaches, and the DMA’s emphasis on “preventive stakeholder dialogue” in competition issues signals progress in the right direction. For future regulations, it is essential for companies to actively advocate for these adaptive approaches to ensure they retain their license to operate and avoid the pitfalls of excessive regulation.

In this context, corporate affairs play a crucial role. It helps clarify the company’s stance on regulatory matters and underscores the importance of compliance. Ideally, regulation should be viewed not as a constraint but as an opportunity to enhance transparency in innovation processes and demonstrate a commitment to responsible advancement.

Support in corporate affairs

We offer a comprehensive array of services designed to support companies in achieving sustainable success. At the heart of our approach is strategic, well-founded communication.

Our services:

  • Stakeholder engagement: Effective corporate affairs strategies hinge on robust stakeholder engagement. This involves clear and proactive communication with regulatory authorities, customers, investors, and the public to build understanding and support for both self-imposed regulations and the company’s responses.
  • Transparency and accountability: In an era where regulation increasingly demands transparency and accountability, it’s crucial for companies to embed these values into their communication strategies. Openly presenting compliance efforts and innovation processes not only fosters trust but also showcases responsible management of potential risks and societal impacts.
  • Risk Communication: Corporate affairs must adeptly simplify complex regulatory issues, clearly conveying how the company manages potential risks and aligns its innovations with regulatory requirements. This involves making regulatory topics comprehensible and demonstrating a proactive approach to risk management.
  • Internal Communication and Training: Communicating values and guidelines related to regulation internally is essential for ensuring a unified and effective external brand image. Proper training and internal messaging help maintain consistency and coherence in how the company presents itself.
  • Building Reputation and Brand Positioning: Integrating regulatory topics into the brand strategy can enhance a company’s reputation as a responsible and innovative leader. By positioning regulatory compliance and innovation as core elements of the brand, companies can strengthen their market presence and appeal.

Interested in discussing corporate affairs? We look forward to hearing from you.

Kai Klicker-Brunner
Head of Corporate Affairs
+49 40 67 94 46 0

Boundless Communication: Internal Communication as a Key Success Factor

Decentralization, home offices, and skills shortages make it clear: strategic internal communication must be given a significant place at the decision-making table. Integrating internal and external communication is no longer a luxury but a necessity. In an environment where the boundaries between “inside” and “outside” are increasingly blurred, consistent communication is crucial. It fosters a unified brand image, strengthens trust, and clarifies a company’s vision and goals.

What internal communication can learn from external communication

People follow people— that’s not new, is it? So why not apply this principle more in internal communication? It’s time to embed this insight into our internal strategies by creating and establishing “sender brands.” This means using the right tone and relevant topics on appropriate channels to foster internal ambassadors. This approach not only boosts employee engagement but also enhances the authenticity and credibility of corporate communication.

In an age where we are inundated with information, message fatigue has become a real challenge. This requires a selective and structured approach to communication channels. Emphasizing the differentiation between internal target groups can help manage this information overload effectively.

The data shows that each generation has different needs when it comes to communication.

Stefan Schraps – Founder Faktor 3

Information needs to be tailored and distributed based on its utility and the media preferences of different target groups. Studies on media consumption by Generation Z reveal that this generation is “always-on,” and they are most effectively reached through regular, brief updates about company events.

This approach caters to their desire to stay closely connected to the company’s news pulse. In contrast, other internal target groups may prefer less frequent but more comprehensive updates. Our cross-generational approach—though it might sound unconventional—is to communicate as little as possible but as much as necessary for each target group. By carefully selecting and targeting communications, we enhance message relevance and reduce the risk of information overload.

Learning from data

Using data to optimize communication is a well-established practice in external communications, but its potential for internal communication is often underutilized. Internal communication can also be measured effectively. Much of the necessary data is already available; it simply needs to be contextualized appropriately.

By analyzing metrics such as click rates from trackable links, penetration rates, usage statistics of communication tools, and other relevant data, we can gain insights and refine our internal communication strategies. This data-driven approach enables us to continuously enhance internal communication just as we do with our external efforts.

Tailored solutions

We provide a diverse array of services in internal communication to support companies. Our experienced team of consultants, strategists, creatives, and event specialists is fully prepared to assist you.

Our services:

  • Analysis and strategy for internal communication
  • Development and implementation of internal communication channels
  • Format development
  • Content creation and community management
  • Stakeholder and conflict management
  • Conception and implementation of internal campaigns
  • Support in changing corporate culture
  • KPIs and success measurement of internal measures

Interested in internal communications? We look forward to hearing from you.

Esther Kathmann
Teamlead Internal Comms
+49 40 67 94 46 0

From adversaries to partners – shaping sustainable transformation with NGOs

Climate change, resource scarcity, and social inequality are critical issues that companies must address with genuine commitment today. Informed consumers no longer accept empty promises; a society well-versed in climate issues demands tangible solutions. Furthermore, the EU is set to impose severe penalties for greenwashing, making authenticity and transparency essential.

Many NGOs have precisely what companies need today: expertise, credibility, and social acceptance. Prof. Dr. Claudia Brunner, President of Munich University SDI, advocates for new forms of collaboration between NGOs and companies.

“Together, they can drive innovation, open new markets, and advance the sustainable transformation of entire industries.” Brunner has been researching how traditionally opposing actors can successfully collaborate and, together with her colleague Prof. Dr. Torsten Oltmanns from Quadriga University Berlin, developed the concept of “Transformative Partnership.” Her conclusion:

When NGOs and companies combine their strengths, an incredible dynamic for change is created.

Prof. Dr. Claudia Brunner – President of Munich University SDI

Example: Energy Company. Transitioning to renewable energy, a partnership with the right environmental NGO not only enhances credibility but can also set new industry standards.

Example: Fashion Company. In an industry criticized for human rights violations and environmental damage, collaboration with NGOs advocating for fair labor practices and sustainable materials can drive genuine change and improve the company’s image. The partnership between HM and WWF to promote organic cotton exemplifies a win-win-win situation for the partners, society, and the planet.

Transformative partnerships hold significant potential but are not without challenges. Collaboration requires courage, perseverance, and a readiness to embrace new ideas and build trust. The key is to foster mutual understanding of roles and motivations— not necessarily to resolve all differences but to find ways to work together despite varying positions.

A structured process and professional guidance are essential to avoid pitfalls. Success factors include careful partner selection, open dialogue, clear goals, effective project management, and strong support from top management.

Practical support

In collaboration with Prof. Dr. Brunner, we guide companies in implementing transformative partnerships. Whether addressing energy transitions, circular economies, or social justice, we provide scientific support to help you unlock the full potential of your collaboration.

Specifically, this means:

  • Identifying the right partners for transformation projects and moderating the dialogue to define viable common goals.
  • Providing professional project management and ensuring the involvement of all relevant stakeholders.
  • Acting as a neutral mediator between cultures, translating between the worlds of business and civil society.
  • Provide expert advice on both internal and external communication to secure support and enhance the project’s credibility.
  • Assist in positioning transformative partnerships as flagship projects to maximize their impact, serving as a symbol for the entire industry and society.

Ready to transform your workplace? We’re ready for a partnership!

Stefan Schraps
Founder
+49 40 67 94 46 0

Artificial intelligence in communication – the future is shaped by action

Artificial Intelligence keeps us on our toes: almost daily, we encounter new products, technological approaches, promises, and visions. It’s no wonder that the excitement about new possibilities can sometimes lead to exhaustion and overwhelm.

Understanding is the foundation

The speed of AI progress astonishes even seasoned experts. Developers need a “hungry public”—which means investments—and media outlets capitalize on the hype to generate high-reach headlines. For leaders and organizations, keeping pace with and understanding the genuine developments amid the race for ever-new superlatives is challenging. Currently, the reality is that after 70 years of research, computers can reliably distinguish cats from dogs and generate longer, human-like texts. While this is impressive, it raises the question: is it truly intelligent?

Waiting is not an option. Although we may still have some time before we face the “rule of machines,” AI’s rapid advancements in computing power and data models are creating high expectations, challenging organizations, and putting pressure on legislators. It’s unproductive to wait for clearer conditions. Company-wide AI bans create shadow structures, hesitation hampers learning processes, and excessive caution could grant competitors an insurmountable lead. Only those who actively test today’s “narrow AI” will be able to quickly and effectively adapt to the next stage of AI evolution.

The new diversity

Current AI is highly effective for automating simple tasks and reducing the workload of communicators. This requires a structured view of internal processes within the communication team and the space and guidance for agile AI experiments. These experiments can include quick scans of large data sets, smart knowledge databases, simple agents, supported creative processes, and rapid visualization.

The outcome is more time for complex tasks and, crucially, routine use of AI tools and techniques with a clear understanding of their capabilities and limitations. Armed with this knowledge, the synergy between humans and machines in both internal and external communication can be reimagined as a partnership rather than an existential competition. Agency partnerships and networks gain new significance as market competitors can easily generate average content at the push of a button. As Nick Law recently noted, “Mediocrity is free now.” Access to innovative partners who provide fresh insights, surprising tactics, and rapid evaluations of technological advancements will be essential for achieving excellence and maintaining a competitive edge.

Mediocrity is free now.

Nick Law – Creative Chairperson at Accenture Song

Generative AI is likely to transform communication and will undoubtedly improve significantly in the future. However, it’s improbable that the future of communication will be solely defined by intelligent bots delivering hyper-personalized messages at the push of a button. For context, chess computers have been defeating human grandmasters for over 20 years, yet (almost) no one watches their games against each other—while human chess remains more popular than ever. Similarly, communication will continue to require the human touch, especially when it truly matters.

AI will accompany us permanently

Artificial Intelligence is fascinating, full of potential, and challenging. We believe that a successful partnership in the AI age requires a shared understanding of this technology. To support this, we offer our retainer clients complimentary introductory events on AI technology. Additionally, as part of our collaboration, we continuously interpret and provide insights on significant developments in technology, regulation, and customer behavior.

Our AI services:

  • Development of AI applications for communication and communicators
  • Support in dealing with AI from the perspective of leadership, sales, internal communication, and change
  • Brand and target group strategies in the age of automation and synthetic content
  • Foresight workshops and vision building
  • Advice on regulation and governance
  • Data strategies for communication

Interested in learning more about Artificial Intelligence in communication? We look forward to hearing from you.

Sabine Richter
Founder
+49 40 67 94 46 0