- Written by Jonathan Josephs
- BBC News business reporter
“Shut up and make an Oreo.”
Darryl Brewster reflects on discussions about child nutrition and the safe use of ingredients on the board of American food giant Nabisco. It was back in 2004 when, as president, he was trying to make biscuits and other products healthier.
However, one of the directors wanted him to keep the company solely focused on making biscuits and making profits for shareholders. Eventually, changes were made, including the removal of trans fats and the introduction of more transparent labels.
In the nearly two decades since, the nature of business leadership has changed, with companies becoming increasingly vocal on social and political issues from nutrition to climate change to diversity.
Brewster says “it’s no longer an opportunity” to just make money. Mr. Brewster currently serves as Chief Corporate Purpose Officer, helping many of the world’s largest companies develop their messaging around these issues.
“Companies need to think through the issues that are relevant to them, and how to respond and possibly take action before these become major issues.
“Companies are realizing that in order to increase their profits over time, they need to be good global citizens.”
Following the U.S. Supreme Court’s decision last month to limit women’s right to abortion, some of the nation’s largest companies are opposing the decision and paying for their employees to travel to another state for abortions. he offered.
One of those leading the response was Yelp, an online business review platform.
“By creating travel coverage, we not only wanted to protect and protect our own employees, but we also wanted to ensure that our employees, consumers, and customers benefit from this protection,” said Miriam Warren, Yelp’s Chief Diversity Officer. We are also aware that our company had asked for our voice to be raised regarding this matter.” problem. “
About 61% of U.S. adults think abortion should be legal in all or most cases, and 37% think abortion should be illegal in all or most cases, according to a Pew Research Center survey. I think it should.
“After the Roe v. Wade Ace Attorney a few weeks ago, we realized that we needed to speak up even more loudly on this issue, and in doing so, we needed to speak out even more loudly on this issue, and in doing so, not just from our employees, but from people across the country. ‘And now even the world is in that position,’ Ms. Warren says.
Yelp has more than 244 million reviews of businesses in more than 30 countries and voices on issues such as transgender and LGBTQ+ rights, gun control and free speech in the United States.
“Fundamentally, we have taken positions on issues that are human rights issues,” Ms. Warren said. ”[Those affected] They are our colleagues, our customers, and our consumers. And it would be an incredible missed opportunity on a moral level if we didn’t take a stance against the huge platforms available to us. [and] At a social level. ”
The idea that businesses can positively influence these conversations is gaining public support. Edelman’s Trust Barometer, which he surveyed of more than 36,000 people in 28 countries, gave companies significantly higher scores than governments and media in this regard. Businesses trailed non-governmental organizations by just one point.
However, 52% of respondents said that capitalism as it exists today does more harm than good to the world.
Mr Warren said while anecdotal evidence suggested the activity was good for business, it was not motivated by increasing profits for the company, which made nearly $40m (about £34m) last year.
“A lot of corporate players are quiet and may be trying to remain neutral. Frankly, I don’t think neutrality is going to be viewed favorably, especially from a historical perspective. .”
However, even if a company wants to speak out on a particular issue, it is not always wise to do so.
“Sometimes it’s best to say nothing at all. You can’t win,” said Paul Argenti, a professor of corporate communications at Dartmouth College in the US.
As a consultant to major companies such as Wall Street bank Goldman Sachs and Japanese conglomerate Mitsui & Co., he has developed a framework for companies to think about when and why they should speak up. .
The first thing he asks is, “Is this somehow related to the overall strategy, business, or core context of what they do?”
He continued, “The second thing I’m asking is if we can actually do something about this case and this issue.
“And the last part is how your voters will react. Will most people be positive about your decision, or will there be important decisions that could do you more harm than good?” Will key voters turn against you?”
When these tests are met, or when leaders are passionate about an issue, companies can have a positive impact. One example, Professor Argenti said, is Apple’s CEO Tim Cook’s commitment to tackling climate change, which he communicated to investors who did not agree to sell their shares in 2014. That’s what it means. “This is a very bold move by a company.”
In contrast, Professor Argenti says one of the worst things a company can do is change its attitude about an issue when under pressure. Disney recently lost its special tax status in Florida, which is believed to have saved it tens of millions of dollars over the years, after it voiced opposition to the state’s “Don’t Say I’m Gay” bill. He did not say anything at first, but his employees persuaded him to intervene.
There was disagreement among shareholders, with KLP Asset Management, Norway’s largest pension fund, opposing the deal, saying Unilever was “prioritizing profits over human rights”.
Unilever said it was a “complex and sensitive issue” and had never supported a boycott in the region.
Shareholders may disagree with a company’s decisions or stance on a particular issue, but they can still exert influence, even if they are unable to push for change.
However, they consider the increased support for their plan to be a positive development and a “strong message to management.” Their pressure led one of the three companies, Moderna, to tie executive bonuses to vaccine distribution.
CECP’s Darryl Brewster wants companies to be more vocal about social and political issues in an increasingly politically divided world.
“Business has an opportunity to find, if not to find common ground, then to find higher ground to which society can aspire.
“I think issues like climate change and social justice are very important and companies can play a leading role, working with other companies and working with governments.
“But I think there’s a void that we’ve seen in a lot of places. There’s an opportunity and a need for companies that actually serve the majority of the population to really intervene on these important topics. actually exists.”
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