This month’s presidential inauguration caps just one of many debates roiling individuals among the general public, your clients and customers, your industry competitors and your internal colleagues.
But unlike elections, in which citizens cast secret ballots that determine a winner, other controversies go on indefinitely, often in public. Befitting our constitutional right to free speech, advocates mount campaigns arguing their points and seeking declarations of support for their side and/or denunciations of the other side.
A challenge arises when external or internal pressure compels your organization to take a stance on an issue. Some hope for a statement aligning the company with their position. Others demand an action, such as cutting off business with certain suppliers, states or countries.
To be sure, this could be an opportunity to solidify a relationship with a key audience. But if the issue has divided the nation or the world, it’s likely your choice will anger someone and quite possibly everyone.
The Role of Business in Societal Issues
Last year the Harvard Business Review reported that surveys of 75,000 people around the world found the vast majority believed a company’s priorities were “to produce safe and reliable products” and conduct business like any other player in the economy.
But authors David M. Bersoff, Sandra J. Sucher and Peter Tufano added that 75% of respondents said societal duties of businesses were also important. “Those duties include, for example, tackling climate change, addressing discrimination, supporting local communities, and stepping in when government is ineffectual,” they wrote.
Their research showed two tiers of societal concerns. A majority of respondents expected companies to take a stand on issues “associated with where and how the company’s products are made and any potential effects of using them; that are related to its core values; and that affect the physical environment in which the company operates.”
The second tier revealed that companies can get in trouble by getting involved in areas not directly related to their business. The authors noted that these respondents’ expectations “reflect a general sentiment against virtue signaling, CEO vanity activism, and opportunism,” they added.
Annual Review of Controversial Issues: A Proactive Approach
Our experience has shown that organization leaders ideally conduct an annual review of controversial issues to determine which ones they may want to address publicly. To help produce these answers – and to help decide new issues – we have developed a list of questions for organization leaders to consider. The goal isn’t to find a perfect solution but to engage in a thoughtful process to identify the organization’s authentic position – and then to decide if or how they want to express it publicly.
Examples of our inquiries include:
- How does this situation involve or impact us or our team, individual members or others we care about?
- What cultural, ethical or legal demands or prohibitions surround this issue?
- What are the current or future financial implications of this issue and/or our action/inaction regarding it?
- How does the issue align with or impact our organization’s mission and values?
- Should we be demonstrating leadership on this issue, including if it is an extension of a related issue to which we are committed to?
- What would our investors, team or customers expect of us in this situation?
- Are we willing to take a stand that might ultimately cause us to lose customers, team members and/or investors?
- What is the right thing to do?
Once you have decided your position, determine whether and how to express this position to particular audiences. To help organize that action, consider questions such as:
- Is this part of our brand or what makes our organization unique?
- If contacted by media, is this one of the issues we have agreed to address in advance to address publicly?
- Even if not contacted by media, do we want to make a proactive statement internally, to our clients or in the media?
- If we are taking a stand, how can we explain to people who disagree with us that we understand their position and take it seriously?
Myriad causes and concerns will continue to percolate and occasionally explode through society. People on all sides of the issue will voice their opinions and occasionally demand that your organization take a stand. Consider these ideas to help find your voice and use it appropriately.
Dave Poston is CEO and general counsel of Poston Communications.