Earlier this year, the Corporate Reputation team at FTI Consulting highlighted how the gap between what companies say and what they do has narrowed significantly - a phenomenon they describe as “Narrative Slack”.
That gap once allowed organisations to build credibility ahead of delivery. Today, that space is far more limited. Claims are tested quickly, amplified by AI and social media. When they do not hold up, the impact is no longer confined to perception. It changes behaviour.
Across the UK, most consumers reassess a company's credibility when its words and actions no longer align. For many, this directly influences purchasing decisions, leading them to stop buying from a company or switch to a competitor.
Investors respond to the same issue differently. Gaps between claims and delivery are often seen as an indicator of a company's ability to execute. This can reduce confidence, increase scrutiny and, over time, influence how capital is allocated.
FTI's latest deep dive into the changing dynamics of reputation management combines quantitative research among investors and consumers to explore the consequences of narrative slack. The findings reveal how misalignment between words and actions erodes trust and the types of penalties consumers and investors are most likely to impose on organisations that get it wrong.
