OPINION All CEOs should read this Corporates should include another ‘P’ in their marketing plans: to support proper journalism, writes RYK VAN NIEKERK. This may well be the most effective way to protect our economy and corporate profits. T Ryk van Niekerk is the managing editor of Moneyweb. Financial journalism is in his blood. He has been in the industry for 20 years and is looking forward to the next 20. He has won numerous journalism awards. he current nosedive in economic activity in South Africa has hit many sectors like a sledgehammer. One of these is the media sector. Several media owners – including major players such as Caxton, Media24 and Arena – have announced the closure of longstanding household publications and the retrenchment of large numbers of staff, including journalists. Unfortunately, this is happening in a period during which the media plays a critical role in holding corrupt government officials and their private-sector participants to account. If not for journalists and committed South African publishers, these individuals and companies will never be held accountable, even if it is only in the court of public opinion. If it were not for the independent and mainstream media, the current looting would be exponentially higher. The pivotal role of journalists and publishers The reality is that unprosecuted corruption has brought the South African economy to its knees and government finances to the edge of a fiscal cliff, from which the country cannot retreat without strong, decisive leadership and strong institutions reflective of a properly functioning constitutional democracy. We do not see this. On the contrary, many of the allegedly corrupt individuals hold senior positions in the ruling party. The result is record-low business confidence and investment, recordhigh unemployment, inequality and poverty. However disheartening this may be, I firmly believe journalists and publishers played a pivotal role over the past decade in limiting the downward trajectory of the ethical and economic carnage we see today. LETTER FROM THE PRESIDENT President Cyril Ramaphosa, in a recent letter to his fellow South Africans, highlighted the importance of a free press, and its role in fostering democracy. He said the nation owed a debt of gratitude to South Africa’s hardworking and tenacious journalists. They have kept our people informed by disseminating key health messages about social distancing and hygiene. They have done so under extremely trying conditions, often with limited resources. President Ramaphosa also noted how the coronavirus crisis hit media houses hard. He also drew attention to the proliferation of fake news during the pandemic, primarily on social media platforms. This, he said, had “added to the urgency for more news that is accurate, fair and impartial. During this time our people have relied on our established media houses for information, once again underscoring their importance as pillars of our democracy”. 2 Lame Duck Digital Without journalists South Africa would not have known about the arms deal scandal; Nkandla; ‘travelgate’; state capture; the Guptas; corruption at Transnet, Eskom, SAA, PetroSA, PRASA, SARS and the Public Investment Corporation; allegations against Ace Magashule; COVID-19 tender fraud; VBS; Bank of Baroda; Bosasa; the Estina dairy farm; the Life Healthcare Esidimeni tragedy; fraud at Steinhoff and Tongaat Hulett; the ongoings at Sharemax/Nova and Picvest; EOH; or Krion. The list is long. In this context, the forced restructuring of media institutions, the introduction of paywalls which will limit mass access to investigative articles, and the imminent layoff of many experienced journalists will have a much more significant impact on society than their loss of income. Media institutions usually retrench the most ‘expensive’ journalists first, most notably investigative journalists. The reference to expensive does not relate to these journalists’ salaries, but to the trade of investigative journalism. It is the most costly form of journalism. During a recent (virtual) social gathering of a group of experienced journalists and editors, I asked the participants to name the investigative journalists who are making a difference. These journalists and editors could not even name 20 individuals. I have also put this scenario to many CEOs of listed companies over the past few months and every single one agreed with the importance of a strong, independent media and the role it plays in protecting our constitutional democracy. The CEOs also generally appreciate the role advertising plays in allowing journalists to execute this mandate. It is also evident in the fact that many institutions financially support(ed) the South African National Editors’ Forum relief fund for journalists who have already lost their jobs – a decision most certainly taken by CEOs themselves. But unfortunately, there is a If it were not for the independent and mainstream media, the current looting would be exponentially higher structural problem in most companies’ decision-making structures, which limits the CEO’s ‘appreciation’ from flowing through to media spend. Most companies’ advertising decisions lie with marketing managers, and these decisions are often purely based on the pillars of traditional marketing strategies to increase sales. If I can remember from my first-year marketing course, these pillars are the traditional five Ps of marketing: product; price; place; people and promotion. Corporate South Africa should support mainstream publications I believe corporate South Africa should add another ‘P’ to their marketing strategies: to support proper journalism. It is not a philanthropic pillar. The watchdog role journalism plays in South Africa contributes to the protection of our constitutional democracy and per definition the economy, and this is the economy in which all businesses operate. Without a growing economy, virtually no marketing strategy based on Ps will succeed. It is also a disgrace that some of South Africa’s international philanthropic institutions financially support the best financial journalists, and that some local companies have decided to advertise exclusively via Google and Facebook as it is cheaper. (These campaigns leave publishers with crumbs as the bulk of the revenue goes to the American giants.) Corporate South Africa should support mainstream publications, to allow these journalists to earn their keep through their skills and to contribute to a stronger constitutional democracy. This may well be the most effective way to protect our economy and corporate profits. Please discuss this column at your next board meeting.
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