Israel-Hamas War Puts Pressure on Companies to Speak Up
Since the tragic events of October 7, when innocent Israeli civilians were victims of Hamas terrorists’ actions, senior executives have faced the challenge of whether to say something on behalf of their organizations – and then what to say.
As Bloomberg pointed out in a wide-ranging look at the issue, “Many companies won’t have a choice but to face investors, employees and other stakeholders who have come to expect their corporate leaders to weigh in on global events.”
In line with the guidance we often provide to clients confronting contentious situations, an organization’s messaging must be aligned with core values.
Given the evolving nature of the Middle East situation, we strongly recommend that senior leadership engage in candid discussions with partners, senior advisors, key clients, and other stakeholders. These conversations will empower organizations to be well-prepared to respond swiftly to significant developments, making decisions based on their values and a clear understanding of the potential consequences.
We hope the Bloomberg article below proves valuable in guiding your organization’s decision-making process.
Please don’t hesitate to reach out to us if you have any questions or need further assistance.
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From Bloomberg:
Israel-Hamas War Puts Pressure on Companies to Speak Up
Before Adena Friedman presented Nasdaq Inc.’s financial results on Wednesday’s quarterly earnings call, the stock exchange’s CEO said the company was “horrified by the acts of terrorist violence” in Israel and denounced the “subsequent loss of innocent lives in Israel, Gaza and the wider region.”
She echoed similar statements from chief executive officers at Goldman Sachs Group Inc., BlackRock Inc., United Airlines Holdings Inc. and other companies, who are facing increasing pressure to speak up on a conflict where the human cost is rising by the hour.
Crisis communications experts say their phones have been vibrating out of their pockets as CEOs seek help calibrating their messages both inside and outside their companies. With third-quarter earnings season ramping up, many companies won’t have a choice but to face investors, employees and other stakeholders who have come to expect their corporate leaders to weigh in on global events.
CEOs are “all asking the same question,” said
Davia Temin, founder of New York crisis consultancy Temin and Company. “If you say something, it’s about what you say. But equally you are at risk if you say nothing, because silence is a statement, so silence is controversial, as well.”
The public messages that are now trickling out on earnings calls mark a shift from the immediate days after the brutal Oct. 7 attack on Israel and the ensuing retaliation against Hamas. Major global companies have so far been generally reluctant to wade into the fray, with only about a fifth of the 100 largest companies in the S&P 500 issuing formal statements about the conflict as of Oct. 17. Nearly all of them, by contrast, released public statements on the Russia-Ukraine war.
That, in turn, has led to criticism from some employees that their corporate leaders haven’t spoken up quickly enough.
Take Nike Inc., which hasn’t issued a public statement. While the head of the sneaker maker’s Europe, Middle East and Africa division sent an email to staff shortly after the attack about the violence’s “devastating impact,” it wasn’t until nearly a week afterward that CEO John Donahoe decried the “horrific attacks in Israel, tragic loss of innocent Israeli and Palestinian lives” in a company-wide message.
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