CEO activism, the growing trend of top executives speaking out on sensitive social and political issues, has been labeled the “new normal.”
But behind the scenes, executives do not feel in control or comfortable with this normal, Harvard Business Review reports. They are struggling to anticipate and respond to intensifying pressure from the public, investors, and—above all—their employees.
There are also conflicting views of how CEOs should proceed. One survey suggests the public wants chief executives to lead on social change without waiting for the government to act. A separate survey shows public support for corporate engagement on such issues as sexual harassment and equal pay—though not on gun control or abortion.
Companies that work with at BSR, a nonprofit sustainability business network, may feel trapped, but BSR counters that although every conceivable action carries considerable risk, inaction may not be much of an option, either. Here are their best tips:
- Companies must consider values, not just shared value. And prioritize their activism with where business success coincides with their view of social good.
- Employees are now a company’s most powerful interest group.
- Polarization heightens risk. Companies seem to face the greatest peril when an issue is politically polarizing to customers and has more to do with values than with long-term financial consequences.
- A company’s rhetoric must be aligned with its expenditures and financial donations.
