THE NEW CEO ACTIVISTSThe Situation
More and more CEOs are taking a
stand on divisive social issues— a
dramatic departure from tradition.
The Reason
They’re frustrated with the growing
political turmoil and paralysis in
the government. Stakeholders,
furthermore, are starting to expect
corporate leaders to speak out.
The Upshot
CEO activism can have unintended
consequences. In this article, the
authors look at recent examples of
such advocacy and piece together
a playbook for executives.Idea in Brief
been confi ned to the United States, there’s little reason to doubt
that it could develop into a global force. We believe that the more
CEOs speak up on social and political issues, the more they will
be expected to do so. And increasingly, CEO activism has strategic
implications: In the Twitter age, silence is more conspicuous— and
more consequential.
All this activity raises big questions that we will attempt to
address: Does CEO activism actually change hearts and minds? What
are the risks and potential rewards? And what is the playbook for
corporate leaders considering speaking out?
Why CEOs Speak Up
CEOs are weighing in on controversial topics for several reasons.
Some point to their corporate values to explain their advocacy, as
BOA’s Moynihan and Dan Schulman of PayPal did when taking a
stand against a North Carolina law requiring people to use the bath-
rooms corresponding with the gender on their birth certificates,
which became a referendum on transgender rights.
Other CEOs argue that companies should have a higher purpose
beyond maximizing shareholder value— a concept that has been
gaining traction in the business world. As Benioff told Time, “Today
CEOs need to stand up not just for their shareholders, but their
employees, their customers, their partners, the community, the
environment, schools, everybody.”