There’s a lot of narrative about pushback on ESG, but I see a lack of alignment between that narrative and action. To be effective in business, you must recognize that everyone has a point, even if it’s different from yours. There’s quite a bit of pushback on ESG lately. Then you have to be ready to guide them whatever the consequence. But if they hear it and decide to move in a different direction, I’m okay. If they don’t really hear it, I’m annoyed. So if a CEO complains, ‘Now I have to talk about this, but I also have to run my company,’ I say, ‘Yes, you have to do both since workforces increasingly require that.’ĭoes it annoy you when a CEO ignores your advice? One of your most important stakeholder groups now is your employees. We’ve also seen a broadening of our major stakeholders. It’s not just a P&L (profit and loss) or the bottom line anymore. I think COVID and the racial reckoning have really changed what is required of a CEO. Scenarios have changed, and the culture has changed. You have to be aware of all these things all the time. In today’s corporate world, that is your business. What do you say to a CEO who might argue that wading into social issues distracts from running their core business? The ROI (return on investment) is there, so get in there. And 34% of consumers say they are more likely to buy from a brand that has supported LGBTQ rights, versus 19% who say less likely. workers say they are more likely to work for a pro-LGBTQ company, while 11% say the opposite. We have a great stat that shows standing firm is best. Playing devil’s advocate here: Shouldn’t CEOs fear this as they consider how vocal to be on social issues?īacktracking kills your credibility. There is so much vitriol aimed at the LGBTQ community now, and the threats of boycotts abound. That’s where a lot of companies and brands are getting tripped up-when they’re not being consistent. Because otherwise, I will question how genuine you were in the first place. If you’re going to take a position, stick with it. Our point of view is that action earns trust. Is there a case for just keeping your head down in the hopes of skirting controversy? It feels like CEOs are ‘damned if you do, damned if you don’t’ when it comes to hot-button issues. But those who were not or jumped in because of peer pressure or FOMO (fear of missing out) are the ones that have pulled away because they were never fully committed in the first place. The companies doing a lot before this period are still doing so. They raised expectations and engaged in conversations, but in some cases, they just joined a bandwagon. I’m a hard grader, so it’s a ‘C.’ Overall, companies did not come forward enough or meet their commitments. What grade do you give corporate America for following up on racial justice pledges made at the time? This interview has been edited and condensed for clarity.įortune: It’s almost Juneteenth and three years after George Floyd’s murder sparked protests nationwide. However painful it is now, companies that don’t stand up for the values they tout or that cave to the agitators will lose credibility with customers and workers alike, which is a serious threat to business, she says. “Increasingly, CEOs have to realize this is actually part of your job.” Today’s climate means navigating these problems while running a business. operations, Lisa Osborne Ross, tells Fortune she’s advising her clients, which include many top-tier Fortune 500 companies, to stick to their guns on issues like gay rights and racial justice, and not cave into the pressure. While it may be tempting for CEOs to steer clear of social landmines, the chief executive of public relations giant Edelman’s U.S. No company seems safe: Chick-fil-A, long known for socially conservative values, is facing boycott threats for hiring a diversity executive. This spring, Disney, Target, and Bud Light found themselves the targets of orchestrated campaigns to punish companies that support LGBTQ rights.
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