IN RECENT YEARS, a growing number of business leaders have taken a public stance on important political and social issues ranging from inequality to climate change, gun control and immigration. And this is becoming less and less of a choice for them: Employees, customers and investors now expect corporations to speak up — and more importantly, to behave in accordance with their words.
I recently worked with the Canadian Centre for the Purpose of the Corporation (CCPC) to explore the advantages and risks of taking a stand on sensitive issues. In this article I will share my key findings. For those interested, the complete report is available on the CCPC website.
A World of Issues
In 2020, in the wake of the death of George Floyd, a significant majority of Fortune 1000 companies tweeted support for the Black Lives Matter (BLM) movement from corporate Twitter accounts. Following Russia’s invasion of Ukraine, Microsoft said it would remove Russian state-owned apps, and Facebook, Twitter and YouTube have all blocked Russian state media from running ads. And more recently, Walt Disney Co. publicly opposed Florida’s HB 1557 law (known as the ‘Don’t Say Gay’ bill), which would limit discussions of sexual orientation and gender identity in schools.
This shift in corporate behaviour begs a question: Should corporations be weighing in on these issues? And what are the pros and cons of doing so? On the one hand, research suggests that organizations can reap both reputational and financial rewards by taking a stand. In general, companies that state socially responsible values are viewed as more trustworthy, are better able to attract top talent and experience reduced wage requirements from their employees.
On the other hand, taking a stance on socio-political issues carries
