Over the past few years, companies have come under pressure from a variety of stakeholders, including employees, customers, investors, and the communities in which they operate, to take public stances on high-profile social and political movements. I’m here. And there were many movements to talk about, including Black Lives Matter, abortion laws, and LGBTQ+ rights, to name a few. But many business leaders aren’t sure what the right course of action is. Should they speak out on issues of social impact or remain silent on the sidelines?
In this PROvoke Media podcast, Andrea Hegelgans, Managing Director of Social Engagement Issues at Edelman, talks about why, when, and how to take a stand on social issues. Of course, it is impossible and unrealistic for companies and executives to speak out on every issue, so Mr. Hegelgans is working strategically to ensure that he does not take any actions that could negatively impact his reputation. We’ll explain in detail where to start.
“For many years, we’ve had a rule that we don’t want to go beyond our position as a company and speak out on issues that don’t directly relate to the business,” Hegelgans said on the podcast. “What has changed is that we are starting to see generational differences in what employees expect from their companies. It shows that they want to do more, not less.”
This year’s Edelman Trust Barometer data reveals that businesses maintain their position as the most trusted institutions and have even greater expectations due to governments’ failure to lead during the pandemic. ing. By an average margin of 5-to-1, respondents in the 28 countries surveyed want companies to play a greater role in tackling climate change, economic inequality, workforce reskilling, and racial injustice. I want it. All stakeholders want companies to fill that void, with approximately 60 percent of consumers purchasing brands based on their values ​​and beliefs, and approximately 6 in 10 employees They choose their workplace based on their values ​​and expect their CEO to take a stand on social issues. The percentage of investors who want to support businesses that align with their values.
“What employees want most is clarity on their values,” says Hegelgans. “And they want to know that it’s not just an external statement or just a marketing strategy, but actually a living, breathing organization.”
Edelman is putting a framework in place to help companies address social issues and make their voices heard. Hegelgans said this type of structure requires answering questions such as “Is this problem consistent with our strategy?” — helps make sure you’re walking into the right conversation. Her recommendation is to start with this approach and ensure the right internal stakeholders are involved. It’s true that companies need to understand that business expectations are changing, but their reputations can be at risk if they don’t act wisely in this evolution.
Topics include:
0:00: Introduction
1:10: The Dayton Hudson Story: The Beginning
06:32: What has changed in the last 30 years?
14:52: Gen Z’s influence on social change
16:49: Two approaches organizations can take
22:41: Edelman Social Issues Navigator Tool
26:28: Who needs to be in the room where the incident happened?
32:24: Are social issues a distraction or a leadership opportunity?
34:10: Defining the CEO in 2022