When should corporates take a stand on high-profile social issues?
by Tony Jaques Ph.D., Director of Issue Outcomes Pty. Ltd. and author of Crisis Counsel: Navigating Legal and Communication Conflict
The likely overthrow of Roe v Wade to limit access to abortion in the United States has highlighted whether and when business corporations should take a stand on controversial high-profile social issues. Denim company Levi Strauss was one of the first major companies to weigh in on this debate, defining it as “a critical business issue.”
The company said efforts to further restrict or criminalize access to the full range of reproductive health care, including abortion, “would have far-reaching consequences for the American workforce, the US economy, and our nation’s pursuit of gender and racial equity.”
Stressing the business impact, their statement said research showed legal access to abortion leads to higher educational attainment, labour force participation, and earnings, and that women who don’t have access to abortion are more likely to leave the workforce.
Levi Strauss has a record supporting controversial high-profile social issues, including gun violence, yet such corporate advocacy is not without risk.
For example, a YouGov study in the US showed that, while more than half of millennials supported brands taking a stance on social issues, 59% of adults said they would boycott a brand if they disagreed with its public position on a particular issue.
Moreover, a new survey by the Brunswick Group suggests that corporate executives “vastly overestimate” the importance of speaking on social issues. Although 63% of corporate executives “agree unequivocally that companies should speak out on social issues” only 36% of voters feel the same.
So, how to navigate through this sometimes no-win morass of uncertainty, contradiction, and risk?
Business relevance for high-profile social issues
A company with a consumer brand, such as food or clothing, or cosmetics, is more likely to have an impact than one with no public profile, for example, producing generic raw materials for other manufacturers. And a trucking company, which uses large amounts of non-renewable fuel, is more likely to have credibility advocating climate change than campaigning on domestic violence.
Assess your position very carefully. It’s not just a matter of “address the issues our stakeholders care about.” Is this aligned with your core values and management commitment? Think no further than John Gibson, CEO of American videogame maker Tripwire, who praised the Supreme Court late last year for upholding abortion restrictions in Texas. With a key business partner cutting ties, Gibson was forced to resign. Management said: “His comments disregarded the values of our whole team, our partners, and much of our broader community.” Ouch!
Saying nothing about a high-profile social issue can speak volumes
Meantime, saying nothing, or very little, can in fact be saying something. Consider when Disney, the largest private employer in Florida, made a non-committal response to the State Governor’s ”Don’t Say Gay” bill designed to limit gender discussion in schools. Following a walkout by LGBTQI employees, Disney CEO Bob Chapek firmly denounced the plan and told staff: “You needed me to be a stronger ally in the fight for equal rights and I let you down. I am sorry”
Pick your social issues
Can we make a difference? Do we want to stand out from the pack? How many issues should we champion? Do we risk appearing opportunistic or unauthentic? Be selective and choose with care.
Actions versus words
Most importantly, public words need to be supported by real actions. Levi Strauss didn’t just talk about Roe v Wade but joined other companies providing travel and expense benefits for employees seeking an abortion. Similarly, in the face of anti-vaccine activism, Australian companies such as Amazon and Woolworths paid employees to get vaccinated or provided pop-up clinics on site.
Finally, recognise this challenge isn’t going away anytime soon. In fact, a report by USC Annenberg found that 90% of communicators expect increased commitment to social change and 55% expect an increase in purpose-driven campaigns. The question is: Are you prepared?
A Parting Thought
To do nothing is to be nothing (Anon)