The general counsel can play an important role in providing advice concerning the emerging phenomenon of "CEO activism," in which companies and their CEOs publicly comment on leading social issues.
CEOs—including those in health care—are under increasing pressure from multiple constituencies to take positions on social or political matters that may implicate their own corporate values (e.g., gun control). This has been described as "part of a broad recasting of the voice of business in the nation's political and social dialogue, a transformation that has gained momentum in recent years as the country has engaged in fraught debates over everything from climate change to health care."
Yet such public positioning is not without significant reputational, performance and perhaps legal risk to the CEO and to the company. Such comments can disturb relationships with the board, confuse other members of the management team, undermine corporate relationships with legislators and affect consumer preferences.
To advise them on how best to balance the risks and rewards of public commentary, CEOs are turning to their general counsel as a wise counselor and guardian of the corporate reputation. The general counsel will supplement her technical legal analysis with consideration of applicable moral, ethical, political, economic and environmental factors. She will advise not only whether the proposed commentary is legal, but also whether it is the right thing to do, from the perspective of the corporation, its stakeholders, the public and sound policy.
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