It’s Time Corporates Stopped Trying to be Political Players
From our good friend in Australia, Tony Jaques, at Issues Outcome. Check out his website here.
With universities tying themselves in knots over free speech and campus protests, and corporations struggling to decide what to say on high profile issues, it’s time to revisit whether management should speak up or shut up.
Despite the headlines and dramatic TV footage, there are clear signs that some organisations are increasingly questioning the wisdom of getting drawn into divisive controversies, and public expectation is also beginning to change.
For example, new data from Leo Burnett’s 2024 Good Study shows 50% of Australians would boycott a brand over its position on current wars and conflicts. And only 39% believe brands should take a stance on social and political questions.
American commentator Ben Berkley highlighted the issue when he recently asked; “Does every societal conflict really require a corporate statement?” Over recent times:
• A survey of 400 American communications professionals found only 18% of brands are very likely to speak out on societal issues, despite shareholder demands. and more than half (55%) were unlikely to disseminate a point of view on social topics.
• UK-based IR Magazine ran a cover story which found some firms starting to take a step back on political issues and return the focus to shareholder value. John Galloway of Vanguard told the magazine a “new culture of caution is emerging” and firms are starting to question whether they should be coming out publicly on issues “that aren’t material to their operations”.
• A headline in Bloomberg proclaimed: “The Outspoken CEO is a Rapidly Dying Breed”, arguing that “companies are rethinking a recent willingness to publicly wade into contentious issues.”
• And the incoming Chairman of Qantas recently said corporate Australia had “done itself a bit of a disservice” with the way it had strongly supported the national referendum on an Aboriginal Voice to Parliament, which was rejected by voters.
The latest high-profile convert to so-called organisational neutrality is Harvard University, which has announced it will no longer take official positions on public policy issues and current events.
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