In the past 5-10 years, it’s become more and more apparent that the public expects the brands they support to make a public statement about social issues they care about. In many cases it’s an easy decision, with a clear moral issue at hand and the consequences will be most severe if you don’t say anything, but in others it can be a tightrope walk to support one set of beliefs without offending another. Adding to the complexity, companies that decide to stay silent can feel the same level of backlash to those that decide to support a social cause. But should companies really be making comments about things they know little about? Do we care that a cookie company has decided to support a specific social cause? And is that support genuine, or is it just to avoid backlash…or is it more self-serving and only designed to grow market share? We’re looking at you Bud Light. Setting aside individual personal beliefs, which naturally are going to be biased, let’s have a look at this from a pragmatic point of view.
So, do we really care what companies think?
Well as it turns out, many people do. According to research from the Edelman Trust Barometer, 54% of employees globally believe that CEOs should speak publicly on controversial political and social issues they care about. Similarly, 53% of consumers agree that every brand has a responsibility to get involved in at least one social issue that does not directly impact its business.
What should your organization support, and how do you know?
Paul Argenti Professor of Corporate Communication at Dartmouth College’s Tuck School of Business in Hanover, New Hampshire, has put together 3 questions every organization should ask themselves before making a public statement. Depending on how you answer, you may be a leader who can speak out, or be better off staying silent.
Question 1: Does the issue align with your company’s strategy?
Your strategy is based in part on the company’s mission and values. If there is a misalignment with the issue you’re speaking out on, your statements will be viewed by your stakeholders — and the public — as inauthentic. Remember the brand you have established with your stakeholders and be aware of their expectations from you. Stepping outside that image you can have immediate consequences.
Question 2: Can you meaningfully influence the issue?
Does your company have the expertise and resources to make a difference? And are you willing to put your money where your mouth is? If not, but you speak out anyway, you risk being seen as hypocritical or as “woke-washing.”
Question 3: Will your stakeholders agree with speaking out?
Obviously, your company greatly reduces its risk of disrupting future business if key stakeholders generally agree with the proposed stance. When these constituencies disagree with each other, however, you must discuss and carefully weigh their relative importance to your business (e.g. a small customer segment with limited power vs. your largest investor).
When your answer to each of the questions is "no," it’s recommended not to speak out at all. However, not every situation is so clear cut. Often, companies will find themselves with a mix of "yes" and "no" answers to the three questions. If your management team answers "yes" to two of the questions but "no" to the third, carefully consider your next steps before speaking out. In such cases, it might be wise to follow others' lead. This could involve joining a coalition of companies or an industry association that has decided to speak out on the issue. Alternatively, you might have a specific division, product, or brand take a stance on the issue, rather than the company as a whole.
The bottom line:
Who are you and what do you stand for? Companies need to understand that expectations of business are changing for consumers, employees, investors and the public at large. Even if they have not yet been confronted with a decision to speak out on a potentially controversial topic, they will likely find themselves needing to make this decision in the future. The above framework by Paul Argenti offers a business case for how to respond, or not. But companies also need to weigh the morality around a given response, the intensity of emotion associated with a specific issue, and what the consequences of no response might mean. Using this approach, companies should be able to determine which issues are most relevant to their business to maximize the effectiveness of their actions both to make a positive impact on society and their bottom line. But above all, they need to be genuine in their actions.
“Wise men speak because they have something to say. Fools speak because they have to say something”. - Plato