OWP liVe REPORT

14

current issues that matter to their stakeholders.”

commitment for a cause. “Activism is more of a signalling tool. It helps shore up loyalty among employees and customers, might persuade a few people on the margins, and possibly alienate others. Companies need to be mindful of the risks such as backlash, boycotts and cynicism,” said Bach. “The best protection from risk is to be authentic and spontaneous. Mean what you say and be quick to respond to emerging issues,” added Bach. Paradoxically, spontaneity when it comes to political activism requires careful preparation, alignment, and capacity building. Bach provided participants with a checklist to guide their efforts. > Accept that business is political. > Deeply understand your employees’ expectations. > Know what matters to your customers. > Let company values be your guide. > Be clear about your values, both internally and externally. > Begin the conversation internally, first with your leadership team, then across the organization. > Make sure the board supports you. > Make a plan to be ready when the spotlight is on you. What does this mean for you?

Which issues should CEOs express an opinion on?

L E A D E R S H I P

CEO political activism is a divisive issue in itself. Many companies spend time discussing whether their CEO should speak out on hotly debated current issues. And if so, which ones? Surveys in the US suggest employment-related issues - such as equal pay in the workplace and sexual harassment - are safest, while social issues - such as abortion and gun control - are seen as more controversial. As an emerging trend, not much research exists assessing the impact of CEO activism. The limited research so far shows CEOs can influence public opinion but no more so than other prominent leaders. Studies do show there is a positive effect on intent to purchase, but it is strongest among those who previously shared the same belief. On the flipside, CEO activism risks alienating consumers who disagree with the CEO’s public stance and is frequently seen as a cynical way for CEOs to get attention in the media rather than real Is CEO activism good for business?

DAVID BACH