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Thought leadership
June 14, 2019

Leadership Index Edition 2

The Face of Disruption

As disruption becomes the new norm, we were curious about what the faces of that disruption looks like right now. Is it a fully realised concept in media coverage, or has it become a way for brands and leaders to position themselves, rather than being or driving disruption?

DISRUPT: (verb dis·rupt \dis-ˈrəpt\) to cause (something) to be unable to continue in the normal way; to interrupt the normal progress or activity of (something)

‘The face of disruption’ takes a look at who the disruptors are across ANZ and Asia, the common themes, those who hold a ‘celebrity like’ status and what observations can be made as these leaders are seen to evangelise change and drive results.

Since edition one, we’ve also updated our benchmark analysis of CEO profiles and media trends of Australia and New Zealand’s top 150 companies and examine the shifts as well as newcomers to the group.

Download a copy of the report here or if you would like to discuss the report further, get in touch with us today!

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26th March 2019

Isentia’s second edition of its Leadership Index has revealed two distinct styles of leadership in Australian business – conservatives and disruptors. The report revealed the top 25 CEOs and top five disruptive leaders in Australia, identifying their differing characteristics and the roles they play in modern business.

As well as updating its analysis of CEOs in Australia and New Zealand’s top 150 companies, Isentia explored the characteristics of Australian leadership through the lens of disruption. The top 150 companies were derived from a combined list of the ASX50, the NZX50, the 2018 IBIS World Top 500 companies published by The Australian Financial Review and Deloitte’s Top 200 data in New Zealand.

Isentia’s Chief Insights Officer, Khali Sakkas, says observations around the behaviour and portrayal of disruptive leaders are key in understanding modern businesses.

“Often in business we focus on measuring performance solely with financial metrics. However, this approach fails to recognise the impact of leadership trends and values,” Sakkas says. “We included a study of disruptive figures because in the current business climate, every single industry is seeing disruption, whether from technology developments or heightened customer expectations.

“Assessing disruptive personalities adds another layer of insight into the leadership of Australian business. No single individual featured in both the top 25 CEOs and the top five disruptive leaders. What we’re noticing is two distinct styles of leadership.

“Traditional CEOs are typically required to be risk averse, answering to shareholders and board members. On the other hand, the new generation of disruptors are usually undertaking a potential risk, yet their creativity can have a huge payoff.”

Disruptive leaders

To identify disruptive leaders, Isentia used its extensive media database to search for varying forms of the word “disrupt” in combination with leaders’ names. The most mentioned disruptors were global business leaders with celebrity status including Tesla’s Elon Musk and Amazon’s Jeff Bezos. Positive characteristics of this group included “ambitious” and “charismatic” while “erratic” and “impulsive” were listed as negative attributes. A significant 46 per cent of coverage regarding these individuals focused on their personal life, wealth and behaviour.

Coverage of Australian disruptors was often focused on business being disrupted, rather than the individual responsible for the change. Personalities were positioned as decisive and innovative leaders, with minimal negative attributes. The number one disruptive leader was Telstra CEO Andy Penn, who has led the telecommunications giant through a pivotal transformative period from mid-2018. With the rollout of the NBN, Telstra has required strong leadership to navigate the substantial changes to its business.

Penn exhibits the three most common traits of a disruptive leader: the ability to provide guidance in the face of circumstances outside of the business’ control, a focus on keeping technology front-of-mind in decision-making, and an aptitude for agile, flexible and forward-thinking ideas.

The top 25 CEOS

Isentia analysed more than 50,000 media items aired or published between 1 October and 31 December 2018 to provide an understanding of Australia and New Zealand’s top 150 companies. As in the first Leadership Index released in November, the CEO profiles and media trends of these businesses were assessed to reveal the top 25 CEOs. The three main factors that were evaluated were public perception, employee approval and financial performance.

Of the 150 companies assessed, the top 50 alone were mentioned in more than 700,000 media items. However, on average, the top CEOs were only present in nine per cent of their company’s coverage. BHP CEO, Andrew Mackenzie, retained his position as the number one leader in the final quarter of 2018.

Looking forward

The Isentia Leadership Index is designed to provide a benchmark to compare leadership profiles over time, highlighting key trends and figures as they shift each year.

“Broadening our report to include a study of disruption has really enriched our understanding of Australian leadership. It will be interesting to see which style of leadership becomes more prevalent in the coming years, as we continue to undertake our Leadership Index. Suggestions for other research topics are always welcome,” Sakkas says.

-ENDS-

For more information, please contact:

Sophie Willis
Howorth Communications
sophie@howorth.com.au 0458 111 948

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Media Release
Isentia Leadership Index reveals two distinct CEO styles

Isentia’s second edition of its Leadership Index has revealed two distinct styles of leadership

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The Australian Competition and Consumer Commission has published anti-greenwashing guidelines for businesses making environmental and sustainability claims. Despite these efforts, media coverage of greenwashing, particularly focusing on senate inquiries and regulatory court cases against major offenders, continues to expose brands and industries stretching the truth in their sustainability messaging. This exposure is causing a growing disconnect between consumers and corporations, as audiences increasingly call out misleading practices and question the authenticity of corporate sustainability claims.Isentia’s sister brand, Pulsar conducted recent research exploring media and public discourse around sustainability. Part of this report examines how greenwashing is covered in the news and on social media, particularly in relation to the broader sustainability discourse. Let’s investigate those themes in more depth here.

Social media data is decreasing while online news activity re-engages, indicating incident-led conversations. Regulatory bodies like the ACCC, and state and federal governments are tackling greenwashing by identifying major corporate offenders and their misleading actions, such as 'recyclable' packaging, carbon credit misuse, lack of transparency in fossil fuel investments, and exploitation of government climate programs. Audience conversations often align with news coverage on these matters.
The term in Australia particularly gained traction among social audiences around November 2022 when the UN called out the Australian government for allowing the use of carbon offsets in corporate emissions reduction strategies. News of the apparent collusion between the government and large corporations has caused public faith and trust in both to dwindle. As these stories emerge, Australia's positive sustainability impact on the international stage is significantly undermined.

https://twitter.com/janegarcia/status/1591662729664004099

When we look at which sectors are most discussed within the greenwashing topic, energy, finance, and food take the lead.

Much of the discussion regarding the energy and finance sectors emphasises their interconnectedness, particularly the investment by financial institutions, including super funds, in environmentally harmful industries. Despite some super funds claiming to offer options that avoid unsustainable investments, reports have revealed that they collectively hold millions of shares in the fossil fuel industry. 

Many industries are being criticised for using carbon credits, such as REDD+ offsets, to appear more sustainable. Advertising, marketing, and public relations also play a significant role in promoting misleading sustainability initiatives, thereby contributing to greenwashing. However, stakeholders are aware that the advertising and communications industries have a huge impact on the profitability and success of an industry or product. The European Union’s Product Environmental Footprint classification system, for example, has been criticised by Australia’s wool industry for being unfair to wool products and for greenwashing. This, they argue, not only undermines the pursuit of a green transition within fashion but also damages a vital industry.

Mercer stands out as a most mentioned brand within the topic of greenwashing. This is due to ASIC pursuing a civic penalty case against them which alleged they misled members about its sustainability investments. This is groundbreaking for audiences to witness as it would be the first time the consumer watchdog has taken a company to court for alleged greenwashing.

https://twitter.com/BillHareClimate/status/1630404986130808833

Much of the conversation focuses on misinformation and lack of transparency in communication and marketing. Certifications like Fair Trade are being questioned, particularly for products like chocolate, and eco-certification for farmed salmon. It particularly muddies the waters for political figures when they get entangled with brands coming under scrutiny for such greenwashing.

https://twitter.com/JosieMcskimming/status/1750987402691362858

Furthermore, some companies feature in the media conversation due to their involvement in a senate enquiry initiated in March 2023, with a report expected by June 28th this year. 

Analysis of the ANZ reveals a shift in mindset, with consumers emphasising individual actions for solutions like composting or guerilla campaigns on mislabelled environmentally friendly salmon products. Grassroots and individual activism leading to actions like divestment from conflicting companies. Community groups like uni student clubs showcase how groups with shared values and experiences can make noise and incite change with how universities invest. However, there are ongoing debates as to whether it’s the role of sectors like higher education or Super Funds to prioritise the environmental implications of their decisions.

The rise in curiosity around greenwashing highlights the growing consumer demand for transparency and genuine sustainability from brands. As regulatory scrutiny and public awareness increase, brands must ensure their sustainability claims are genuine or face reputation damage.

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Blog
The Eco-Spin Cycle: how brand’s sustainability claims come out in the wash

Regulators are cracking down on corporate greenwashing, but what does media discussion reveal about its impact on brand-consumer relations?

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As the spotlight on sustainability intensifies year by year, it has become a focal point for legislators, media entities, and audiences worldwide.

This dynamic environment demands that brands and institutions elevate their standards in messaging and actions, holding them accountable like never before. For professionals in the PR & Comms realm, it is imperative to grasp not only how sustainability is being discussed but also the potential pitfalls, such as greenwashing, and gain a profound understanding of the diverse audiences receiving these messages.

Explore over 20 beautifully crafted pages of data visualisation that illuminate audience insights sourced from social media, news outlets, and search engines. Gain valuable perspectives on how one of the defining issues of our time is being discussed and understood.

Our exploration of this crucial topic delves deep into uncovering insights that are indispensable for crafting effective strategies, both tactical and long-term:

-Unraveling trends in the sustainability conversation

-Assessing brand & industry reputations

-Navigating greenwashing & misinformation

-Understanding the diverse audiences of sustainability

To access these insights, simply fill in the form

Download now

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Blog
Sustainability: Mapping the Media & Public Conversations

From accusations of greenwashing to the role of misinformation, we explore the comms landscape around sustainability.

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Get in touch or request a demo.