When Should Companies Weigh in on Contentious Issues?
Feb 13, 2024
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Explore the expectations of organizations to address sociopolitical issues, including the challenges faced and consequences of remaining silent. Discover strategies to navigate corporate advocacy by involving employees and stakeholders in decision-making processes. Learn how organizational leaders can effectively handle contentious issues by prioritizing actionable problems and addressing internal challenges before engaging in dialogue.
Including employees in decision-making processes is crucial for ethical decision-making in corporations.
The rise of social media has forced companies into more interactive and fraught relationships with their stakeholders.
Deep dives
The Rise of Social Media and Stakeholder Capitalism
The rise of social media has forced companies into more interactive and fraught relationships with their stakeholders. Stakeholder capitalism has emerged as businesses are seen as more powerful and responsive than governments in solving issues like climate change and inequality. Young people expect organizations to adapt to their needs and values, leading to a complex and challenging landscape.
The Challenges of Speaking Out
Companies face challenges when responding to societal issues. While some organizations have chosen to speak out on various topics, the current climate has made many corporate leaders regret these decisions. The pressure to address multiple contentious issues has led to a desire for more restraint and caution in speaking up.
The Importance of Employee Voice
Employees have significant power and influence in the current information landscape. They have access to internal information and are skilled at holding companies accountable for their actions and statements. Including employees in decision-making processes, engaging in open dialogue, and considering diverse perspectives are crucial for ethical decision-making in corporations.
In a globally connected and highly politicized world, organizations are increasingly expected to comment on social, political, and environmental issues. But taking a stance doesn't always make business sense and can backfire when employees or consumers see a disconnect between leaders’ words and actions. Alison Taylor, associate professor at New York University, says there's a better way to make decisions on corporate speech, which includes involving workers in the process. Taylor is the author of the HBR book Higher Ground: How Business Can Do the Right Thing in a Turbulent World and the HBR article “Corporate Advocacy in a Time of Social Outrage.”
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