Navigating The Rise Of Corporate Activism

When should companies choose to take a stand on social issues?

The headline of Bloomberg News reads, ‘Nike Decides a Colin Kaepernick Deal Is Worth the Backlash.’ The title comes in response to the company’s recent decision to have the controversial athlete serve as the face of its 30^th year anniversary ‘Just Do It’ campaign.  Nike’s announcement is on the heels of a recent headline in the Philadelphia Tribune which read, ‘Microsoft tells contractors to give new parents paid leave.’ Several months ago, a headline in Forbes read, ‘This Time It's Guns: Retail Activism Goes Mainstream with Dick's Sporting Goods.’

What this reflects is a trend: the increasing convergence of corporations expected to and electing to assert itself on social issues. 
 

The traditional role of a corporation is to sell products and services and generate profits for shareholders through innovation. In exchange for facilitating this growth, employees are repaid with wages and benefits. However, our world has become more digitized and increasingly the lines are blurred between individuals’ personas at work and home as the two become more integrated. This integration has in part contributed to the demand for purpose-driven businesses to build and maintain customer and employee loyalty.   
 
The Deloitte Millennials Survey highlights that both millennials and Gen Z’ers have desires that stretch beyond money. In fact, they are increasingly expecting more than traditional benefits – health care, and professional development to name a few. When employees and/ or external workers join a company now, often they expect the company and its leaders to “stand for something.”  There is an expectation that purpose-driven culture expressed through mission statements and realized through a plethora of social responsibility endeavors represent what is valued by one’s work environment.  Protecting those values as a sacred trust is also expected.
 
This can be a delicate balance for organizations, as it’s important to maintain neutrality on a wide assortment of political and social issues so as not to alienate stakeholders. On the other hand, recent studies highlight a growing support for corporate activism.  Speaking out on certain hot-button issues, however, can isolate a company’s consumers and employees, alike. Even in the current fast-paced, sociopolitical climate, conventional wisdom remains that it is better to err on the side of neutrality than speak out on issues that seemingly spring up every day. Yet, if a company asserts neutrality on any/all polarizing issues, how can it claim to be socially conscious?    
 
Naturally, every issue taken on may not suit the values of every individual and this is where judgement is required. A guiding principle that I subscribe to is that the interest of stakeholders including workforce, consumers and shareholders must be a top of mind consideration when sociopolitical issues enter the workplace.  We must consider what the company stands for; what is its purpose and if it shies away from acting on issues that challenge a reason for existing or the fabric of the culture it espouses.  And while neutrality is important, there are times when topics and events present consequential moments to step up and assert leadership.  This should be done in a way that creates safe spaces for respectful and open dialogue that asserts views, which are intended to resonate with the broad sentiments of the stakeholder communities being served.
 
Multinational, billion-dollar corporations can and should use their power to influence issues that directly impact the lives of their workforce and consumer base. These issues have both a social and moral implication and need to be tied back to your business. For Nike who seeks to provide inspiration and innovation for every athlete in the world, it is betting that its potentially polarizing decision to sign a sponsorship deal with Kaepernick will in the long term have no deleterious effect on business overall.  For Microsoft, its recent public pronouncement on contractor benefits fills a noted void currently under much public scrutiny and debate to influence public policy and legislation with respect to paid leave. After the mass shooting at a high school in Parkland, Florida, Dick’s Sporting Goods took initiative in response to this, after stating that it would no longer sell assault-style rifles, high capacity magazines or firearms to anyone under 21 years of age. Months later, it contends this change of policy has had no negative impact on its sales.
 
Leaders cannot stay silent on issues that arise outside the workplace and egregiously encroach on the environment developed internally. I am reminded of when SAP’s CEO, Bill McDermott, responded to the travel ban introduced last year by the executive branch of the federal government because it created a groundswell of concern throughout our globally-distributed organization at all levels. Bill saw the need to empower and reassure our workforce with an unequivocal statement on where he – and SAP as a company - stood, with an unwavering commitment to support each and every employee.
 
Issues like these call for companies to play a pivotal role and be definitive, as action or inaction directly impacts customers, shareholders, and the workforce. It is equally important to anticipate consequences, assess risk, and make a call you can stand by, often with very little time at your disposal.  
 
Social media has allowed anyone to become an active participant in the issues of our daily lives. The constantly changing digital landscape has blurred the lines between work and life, which means the things that impact us come to work with us, as well. Companies must be cognizant of the evolving social climate and, when matters call for it, take a stance that is consistent with company values. Navigating this social landscape is tricky – but striking a balance between maintaining neutrality and being vocal is a crucial element of success for companies in today’s business landscape.
 

Jewell Parkinson is Head of HR, Americas & APJ. She provides HR leadership for SAP Global Customer Operations and heads the regional HR Business Partner organization across North America, Latin America and Asia Pacific Japan. In this trusted-advisor role, she provides consultation on the design, delivery, and adoption of solutions that ensure SAP’s people strategy and consumer experiences yield a sustainable business impact to meet the needs of more than 45,000 employees. Connect Jewell Parkinson Follow @ParkinsonJewell