A recent article in the Harvard Business Review How Companies Should Weigh in on a Controversy starts with parallel stories of Bud Light and transgender influencer Dylan Mulvaney, and Brazilian cosmetics company Natura and its sponsorship of a transgender actor Thammy Miranda. Bud Light experienced a firestorm backlash and lost customers and market share; Natura stood by its decision and benefited financially.
These outcomes remind us of the importance of looking before you leap and fully understanding your customer/stakeholder base before you speak out on an issue. Beer and cosmetics customers likely share different social views. The question frequently raised is whether companies, associations, or even government agencies should comment on a controversy or public issue they didn’t start but does impact their workforce.
Values have shifted over time. The Business Roundtable, a nonprofit lobbyist association based in Washington, D.C. whose members are chief executive officers of major United States companies, changed its mission statement a few years ago to reflect the pursuit of societal good, not just profit. The HBR authors cite a study that after making money, the societal duties of business were also deemed central by 75% of respondents.
Deciding how to respond to the George Floyd murder was easy for almost all organizations. Employees, shareholders, and boards of directors demanded at least an internal statement, if not an external one.
Since that societal crisis, speaking out has become more complicated. For example, many stakeholders have wanted companies, non-profits, and educational institutions to take a stand on the Israel/Hamas war, and employee healthcare in the wake of the Dobbs decision. The HBR also details the complexity of Walmart’s recent decision not to sell certain types of firearms, and Target’s decision to tone down its celebration of LGBT Pride Month. It can be tricky to stay true to your values and to the stakeholders who are loyal because of those values, while also addressing the concerns of other stakeholders.
We agree with the HBR authors’ position that there is no template, and that responding to stakeholders is complicated.
CommCore’s advice:
- Gather all organization stakeholders.
- Listen to multiple points of view, including external counsel who work with many organizations.
- Decide between the need to take a stand vs nice to have a position.
- Differentiate between societal issues and partisan politics that may further divide employees and stakeholders.
- Monitor feedback in all channels.
- Be careful not to posture with a point of view vs taking action.
Additional Resources:
- VIDEO: How CommCore Provides Media Training Virtually.
- New Team Member Highlight Series Q&A – Samantha Seifert – New York, NY
- Important Communications Trends from 2023 That Are Impacting 2024 (Audio: CEO Andy Gilman on EE Voice Podcast)
- All About CommCore’s New Self-Paced Presentation Skills Training Course
- CommCore’s Crisis Work Highlighted in Business Insider
- What Type of Communications Training Does Your Team Need? Try Our Interactive Guide
- VIDEO: How to Engage Your Audience
- Is Your Team Ready for Crisis? Find Out With Our PressureTest
- CEO Andy Gilman Quoted in The Wall Street Journal
- CEO Andy Gilman Quoted in CNN Business
- Ready for a Reputation Crisis? Find Out Now! CEO Andy Gilman’s Advice Featured in Forbes
- DC Politicians Have CommCore on Speed-Dial, But It’s More About Prevention
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