Thinking of Taking a Stand? Read this first.

Pressure continues to increase on CEOs to use their platforms to address political and social issues. This is often a heavy burden on leaders who must consider many constituencies before speaking out.  

It’s true: most consumers want companies and brands to weigh in on pressing social and political issues. But that often-cited statistic belies another fact of today’s increasingly polarized world: many consumers not only want CEOs to speak out, they want validation of their own views. And they’ll go to great lengths to act out against those holding positions with which they disagree.  Here’s how leaders should approach these decisions.

Understand The Risk

Leaders must consider the positive and negative ramifications before taking a stand, ensuring alignment with their personal brand, customers, and stakeholders. Importantly, they must also understand the political and social landscape into which they are considering wading. Many times, leaders can find themselves in an echo chamber on particular issues. Know that your C-Suite, employees, customers, and investors may all want different things on a particular issue. 

Often, speaking out on a particular issue - regardless of which side you take - can prove to be a lose-lose proposition. As I said in a recent Barron article, “Companies that venture into culture wars always face the risk of alienating someone.” That alienation could take the form of plummeting sales, loss of social media followers, or even a full-scale campaign to cancel you. 

If yours were the only reputation at stake, this might feel like a calculated risk. However, leaders are accountable not only to customers but also to boards, shareholders, and employees. The decision to make a controversial statement - or at least one that could be perceived as controversial - can have lasting impacts on revenue, talent, and recruitment. You may offend valuable current employees or even face difficulties in attracting new hires. Beyond your workforce, shareholders and board members may lose confidence in your ability to handle challenging circumstances. 

Ensure That Your Own House Is in Order 

We live in a world of soundbites, but you should also consider that making a public statement is not the only way to effect change and demonstrate your values. Before speaking publicly on an issue, leaders should make sure they have adequately addressed the same issue internally. Speaking out about the need for more diversity in the C-suite is going to sound particularly tone-deaf if your own corporation lacks diversity on its leadership team. Many companies will tout green initiatives, knowing that their supply chain is a significant contributor to pollution in a local community. Consistency between words and actions is essential to avoid the perception of disingenuity.

Be Clear in Your Messaging 

If you decide to wade into an issue, ensure your messaging is clear and unambiguous. Your words should be well-reasoned, supported by facts, and reflect a deep understanding of the issues at hand. State why this issue is important for your brand, what your position is, and concrete steps that should be taken to support your position. If your message doesn’t add much to the conversation, or you can’t come up with something clear, it’s better to say nothing. 

Carefully consider the timing of your response, the evolution of the issues, and how you want to be perceived. Is this an issue you need to be out on first? Are you offering too little too late? All of these things must be considered before you broadcast to the world. 

Prepare for Pushback

Regardless of whether you speak or stay silent, leaders must be prepared for pushback. Develop holding statements and customer responses, and ensure that your team is monitoring the news and social channels. Many of today’s pressing issues are fluid: you may determine that the decision to stay silent made sense last week, and this week it doesn’t. The best tactic is to plan for issues in advance and have your team monitor them closely as they arise. 

Clearly, there are no easy answers when it comes to addressing political and cultural issues. It’s an environment fraught with risk. If you find yourself weighing such a decision, give our team a call. We’re experienced at walking senior leaders through their most pressing challenges.