Should Businesses Get Involved in Social Issues?

Corporations have been more and more political. Is this a good thing?

I am passionate about both business and social activism.

So, do I believe that businesses should be involved in social issues?

No, I do not. Let me tell you why.

We’re in the midst of a huge era for corporations to appear to be any degree of political. That’s not their job, to weigh in on social issues. That’s for individuals. Corporations should be absolutely vanilla.

Large corporations that have the ability to speak loudly and broadly on social issues also have a huge cross section of shareholders.

If I am a shareholder of a large corporation, I’m investing my dollars into them to do what they do, whether that be building a product, supplying a service, whatever it may be. I am not authorizing them to get involved in issues with which I may or may not agree, on my dollar.

Some might argue that I can simply pull my money out. Yes, but the larger point is that the company is mixing their purposes when they do that.

And, from a company perspective, why would you take the risk? Most political issues, particularly ones that are emotionally charged (and I won’t suggest any of them here), usually split the country along some sort of 50–50 line. Violently pro or violently against. Why, as a company or as a fiduciary in running the company, run the risk of offending? Of turning off half of your potential customer base? That’s certainly not operating in the best interest of your shareholders.

Sorry to be bland, but it is a mistake from the fiduciary responsibilities that corporate offices have to engage in politics, on behalf of the corporation. When company ABC decides to promote a product or cause, they should anticipate, expect and plan for the loss of the potential marketplace. Don’t use social, emotional or political issues as a way to further your commercial enterprise.

Let’s look at this from the perspective of entertainment, in which there is also no place for politics. If I were a star performer, the lead actor of a movie (yes, you’re welcome to get a good chuckle at that), having that role does not suddenly mean I have substantial comments to make in regards to political issues, of which I probably only have a superficial understanding.

Don’t conflate your influence in one area to influence in an unrelated sphere. If I enjoy watching your movies, that does not mean I will enjoy listening to you pontificate on emotional and political subjects. Those two don’t correlate. And in a business, when you want everyone to be buying in to your “movie,” again, why would you risk it?

Now, let me be clear. I am not suggesting that people and employees shouldn’t have personal opinions. Please do, and please be vociferous in sharing those opinions with others, if that’s the sort of thing you like to do.

Hypothetically, if you’re the CEO and you want to pontificate on certain issues, you have that right. So long as you are using your personal resources, personal platform, and you’re not speaking on behalf of your corporation, then so be it.

So there is this push lately for social activism. Hallelujah. I applaud that. I’m a big believer that in great vibrant, respectful and appropriate debate comes a better solution. I think that’s the value and beauty of a democracy, that we have those debates. So let’s engage in them… But let’s engage in them individually on issues that affect us individually.

It’s better for a company to stick to its message as to its product or service, generate returns for its shareholders and employees, and encourage all of them–shareholders, employees, and customers–to become engaged in whatever causes stirs their soul.

That’s the way you maximize your market. That’s the way that you build a consistent brand. That’s the way you ensure your likely return for your shareholders.

After all, isn’t that the purpose of a commercial enterprise?

Aaron Webber is a serial entrepreneur and CEO of Webber Investments LLC, as well as a Managing Partner at Madison Wall Agencies.

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