Companies are evaluated utilizing publicly available information to determine if they engage in political or social issues.
Companies face increasing pressure to engage with controversial social & political issues, but the consequences of engaging can be devastating. Corporate political activism alienates customers & employees, damages brands, and increases legal risk.
Important political and social issues are appropriately debated in the civic and public spaces, not in the workplace or retail environment.
Download the playbooks below designed to help leaders manage businesses without engaging in corporate political activism.
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Though many companies have successfully disengaged from political activism, it’s better to prevent it from happening in the first place. Here’s some information about why.
Damaged brand perception can be costly and extremely challenging–or impossible–to restore.
Research shows political activism on issues seen as divisive by even a moderate percentage of the population generates negative public perception. Loss of customer base, revenue, and market share are the beginning. Sometimes legal or regulatory challenges arise that further damage customer perception.
Being embroiled in legal battles is costly and time consuming—even if you win.
Lawsuits are an organization's worst nightmare. Whether they come from employees or customers feeling discriminated against, watchdog groups, or regulators, they tie up time and resources that are best directed elsewhere.
When employees are operating under fear of discrimination or unable to separate personal views from business effectiveness, their overall productivity and quality of work decreases.
Employees are afraid to express personal views (even outside of the workplace) for fear of retaliation or losing their livelihood.
The risk of doing business with vendors–from infrastructure to supply chain–who engage in corporate political activism can be catastrophic. Vendor instability due to their increased risk exposure in the market, unexpected compliance requirements, or termination of service may directly threaten your business operations.
Companies are evaluated utilizing publicly available information to determine if they engage in political or social issues.