Encountering opposition and resistance | GETTY
A downside of corporate activism is that the winds of public opinion can shift without warning. Business leaders need to follow the news and current events closely and react quickly so they are not found guilty in the court of public opinion for continuing to back the wrong laws, policies or politicians.
In January, several major corporations said they would stop contributing—at least for a while—to the political campaigns of the Republican members of Congress who voted against certifying the results of the 2020 presidential election.
Last week, in the aftermath backlash to their statements about the new restrictive voting law in Georgia, Coca-Cola and Delta Airlines changed their positions and issued strong statements opposing the controversial measure.
Yesterday, the AP reported that, “State legislators across the country who have pushed for new voting restrictions, and also seized on former President Donald Trump’s baseless claims of election fraud, have reaped more than $50 million in corporate donations in recent years, according to a new report by Public Citizen, a Washington-based government watchdog group.”
The AP story noted that, “Whether companies continue to give to these lawmakers will test how far risk-averse corporate leaders are willing to go in their increasingly forceful criticism of the restrictive efforts, which voting rights groups have excoriated as an attack on democracy.”
6 Typical Responses
Darin Detwiler is an assistant dean and associate teaching professor at the Northeastern University College of Professional Studies where he is focuses on corporate social responsibility and ethics. He observed that there are typical patterns when companies find themselves on the wrong side of a public policy issue. Detwiler said organizations will often:
Try to take control of the media coverage and add positively framed stories that promote their focus on the issues.
Go on “apology tours”.
Talk about themselves as being victims due to the action of others.
Decide to put some person in charge of (inclusion, ethics, community, stakeholder affairs, etc.)
Dedicate money to explore this issue.
Publicize new, dedicated training for employees (but not executives) on the issue.
He said the “... elephant in the room is that social media has allowed for people to not only learn more about these events (such as the businesses that have given significant money to the backers of the voting restrictions bill in Georgia) [but] are actively engaged in discourse over this.
“A growing percentage of Americans are no longer ignoring or staying passive (in regard to social media) on these issues, but are now becoming active…and even …loyalists and advocates on these issues,” Detwiler noted.
Advice For Business Leaders
There are several other steps companies can take when they find they are on the wrong side of public policy issues.
Implement Meaningful Changes
Eric Yaverbaum the CEO of Ericho Communications, said “Navigating social and political issues presents a unique set of challenges for brands. It's an area where it's not just about saying the right thing but making sure what you say aligns with your actions and your brand ethos.”
He noted that, “When a social issue dominates public discourse, brands will be pressured to weigh in—that's true now more than it ever was in the past (the old rule was for brands to avoid contentious issues altogether). But brands have to proceed with thought and care. As public views change, many brands will find themselves needing to change as well – but that change cannot be merely surface level; it has to be meaningful.”
Rebuild From The Inside
Yaverbaum counseled that, “You can't just paint over rust, you have to rebuild from the inside out. What this means is that when a brand finds itself on the wrong side of an issue, it has to do some soul searching and, if necessary, work to create a meaningful rebrand—it can't simply slap on a new logo or brand mascot.”
Don’t Dig A Deeper Hole
“Listening, understanding, taking action, and in many cases, making amends all have be a part of this process,” Yaverbaum advised. “Brands based on racist imagery for example—like the Washington Redskins, Aunt Jemima, and Uncle Ben's—have been called out for decades and yet continued to dig themselves in deeper rather than listen to what people were saying.”
Communicate
He recommended that, “When public opinion evolves, companies shouldn't simply adopt the stance because it's trending—this comes across as opportunistic and will result in further backlash.
“Instead, brands must communicate that they are taking the time to learn more about the issue, re-examine their history and position, and make significant internal changes; this also gives an organization a grace period in which to respond and communicates thoughtfulness and care (rather than knee-jerk deflections, inauthentic gloss-overs, or doubled-down defensiveness).”
Share The Reasoning
Yaverbaum said that, “Sharing the reasoning behind the change, including a new understanding you've gained, helps to make audiences more receptive to the change and makes it seem more genuine.
“Listening, acknowledging past wrongdoing and harm, while communicating what you've learned, how you're righting your past, and following through with real action, are all crucial steps brands need to take when they find themselves in this situation,” he concluded.
Align Words With Deeds
Lamell McMorris is the founder and CEO of strategic advisory firm Phase 2 Consulting. He recommended that, “When a company is facing public backlash, it is important for words and deeds to match.
‘So while the company is examining the external public policy issue, it’s important to ensure that whatever position the company takes is in alignment with existing corporate social responsibility efforts. This avoids further drama,’’ he said.