Part three of Simon Freakley's Leadership on a tightrope series
Speaking out on current events or social issues is a political minefield for CEOs, which has become ever-more fraught due to social media and political polarization.
Sometimes, the issues are so morally clear—or so important to your employees, customers, or other stakeholders—that the path is straightforward. Where the Venn diagram of your company's purpose aligns with those of your various stakeholders, most CEOs know precisely what to do.
Other times, the issues may be more nuanced or peripheral to the interests of your key stakeholders. In these instances, the first question you must ask yourself is should we say anything? If yes, why? In many cases, saying nothing may be the right response.
A vocal minority of stakeholders—be they customers, employees, investors, or others in the community—may be demanding a specific response, conforming to their world view. Acquiescing to these demands can seem the easiest short-term course but can lead to ceding control over other areas of organizational policy and norms. And it also risks blowback from other stakeholders who may not agree.
A diversity of opinion is not just a strength within society, it is important within an organization to help avoid groupthink. But tolerance for a diversity of views does not mean allowing a vocal minority to dictate to everyone else or set company policy.
Keeping the Venn diagram of corporate purpose and stakeholder interests in mind can help CEOs navigate this potential minefield. A clear understanding of what you and your organization stands for is critical. This, and not others' potential responses, must be the compass.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
