Navigating Social Issues — Why Companies Must Put a Stake in the Ground
Clyde Group recently conducted a survey on behalf of one of our clients asking people whether they thought companies should get involved in social issues. Quite surprisingly to me, the answer was a resounding “no.” But in the wake of the tragic school shooting in Parkland, Florida, it has been clearly demonstrated that a vocal portion of Americans do expect companies to have a social conscience. We are living in an era where, when controversy comes calling, companies cannot lower the shades and pretend they’re not home.
As social media exploded with calls for corporate boycotts, banks, airlines, insurance carriers, security firms, movers and car rental companies began severing their ties with the NRA. Dick’s Sporting Goods proactively inserted itself into the movement, announcing it would no longer stock assault-style rifles and it was ending the sale of firearms to people younger than 21. Kroger and Walmart quickly followed suit and announced they would also raise the age limit for gun sales.
Boycotts are nothing new, but companies are now finding themselves caught up in issues that may seem far beyond their span of control. When Papa John’s CEO blamed weak 2017 Q4 sales on NFL “take a knee” protests, the company’s leadership obviously did not anticipate a neo-Nazi group declaring them the “official pizza of the alt-right.” FedEx and Delta Airlines made very different decisions around their NRA partnerships following the Parkland shooting and both are suffering the consequences — with one facing Twitter backlash and deafening boycott threats, and the other being dealt a harsh punishment by Georgia lawmakers in the form of lost tax incentives. As much as companies may wish to stay on the sidelines, we are witnessing an era where companies may need to put a stake in the ground on contentious social issues.
We advise our clients to make good use of their “peacetime” by establishing what they stand for and believe in BEFORE a crisis strikes. Here are some important questions companies should ask themselves:
- What do we as an organization stand for?
- What do we care about and believe in?
- What do our stakeholders (clients, customers, employees, etc.) care about and believe in?
- Across the spectrum of social issues, which ones are most likely to impact us?
- What are the major social issues not directly relevant to our business that we should think about anyway?
- When should we be proactive versus reactive?
- What are we willing to fight for, and what are we willing to give up in that fight?
By establishing your company’s narrative, when a controversy does emerge — and it will — you won’t be in a mad scramble trying to figure out what to do. You’ll already have established a thoughtful, values-based lens through which to guide your response.
It may seem like a communications exercise, but it’s actually about risk management. How many companies have we seen take a bad situation and make it worse through hasty and ill-considered decision-making? As your company grows and your brand matures, the world will come to expect more from you.
Take Airbnb for example. When some of its hosts were accused of not accepting reservations from people of certain ethnicities, the company could have said “Hey, we’re just a platform. We’re not responsible for the actions of our hosts.” But Airbnb has defined itself as providing a welcoming experience for everyone, “regardless of their race, religion, national origin, ethnicity, disability, sex, gender identity, sexual orientation, or age.” As such, it began enforcing a strict new anti-discrimination policy and cancelled reservations made by members of various hate groups.
Contrast this approach with other companies, which only take action after a deluge of criticism and bad press. The state of North Carolina lost an estimated $3.76 billion learning this lesson when it suffered crushing economic pressure to repeal and replace HB2.
Smart leaders don’t wait around for the news to happen to them. By establishing your corporate principles and then demonstrating behaviors consistent those values, your company will better navigate the current landmines of our era, protecting your brand and retaining the trust of your stakeholders. In today’s turbulent landscape, if you don’t establish who you are and what you stand for, sooner or later someone else will do it for you.
