America appears to be in the early stages of its latest reinvention, collectively confronting the ugly skeletons of the past and moving forward as a country. As this “Great Reckoning” advances, companies and brands are finding it nearly impossible to stay on the sidelines of the fractured political and civic landscape. Wilks Communications Group Managing Director Brad Wilks shares his thoughts about the benefits and challenges of taking a stance on social issues.

America’s Brands Are Taking a Stand

In the last year, organizations have become increasingly drawn into the debate on issues such as voting rights, race equity, climate change, gender equality, inclusiveness, gun control and even whether raising corporate taxes is the best solution to fund infrastructure investments.

A recent example of this was the large outpouring of corporate opposition to legislation in several states in a move to suppress voting rights. The truth is, we all want to support brands that stand for causes we embrace, and companies should be thoughtfully assessing their public positions on critical moral and political issues.

I am convinced that one of the most pressing challenges chief communications officers and their advisors will face in the next few years is identifying ways to help their organizations take principled and authentic positions, proven out by substantial actions that back their position and are part of a strategy. Here are five observations for communicators to consider:

1. Avoiding the limelight may equal reputational risk: The traditional practice of quietly supporting favorite causes through political action committees or donations to friendly politicians has become a less tenable public policy strategy for today’s companies. Stakeholders, including employees, shareholders, customers, and influencers, expect your organization to have a clearly articulated position on key moral/societal issues. They will be watching carefully to assess your public comments (or lack thereof) and are fully prepared to wield their influence for or against you in the public square and on social media.

2. Any statement made in a vacuum can be counterproductive: Public statements in the absence of a clear strategy or prior track record of well-documented initiatives to address the issue at hand are likely to draw criticism from consumers or groups who view empty virtue signaling as an inauthentic public relations ploy rather than heartfelt actions that demonstrate your organization’s commitment to the cause.

3. Internal buy-in is critical: Before taking any public stance on a controversial issue, organizations would be well served to take the pulse of their employees to ensure they are aligned with that position. If there is no clear internal alignment, you should avoid making a statement that may result in backlash. A better solution would be to create an internal task force to make recommendations to management on a variety of social issues, followed by a thoughtful decision to take appropriate actions to address the challenge and not simply talk about it. Sometimes a good start is to reexamine your organization’s core values. Once you have aligned on values, they need to be translated into policies and procedures that demonstrate you are serious about living up to them.

4. Safety in numbers: Many of the recent examples of companies commenting on issues of political, societal, or moral concern have been made within the context of a concerted public campaign in conjunction with peers and competitors. This shows solidarity, amplifies the social impact of your position, and has far greater impact than any single organization taking a stand on its own.

5. Be prepared for backlash: Taking any kind of a public stand on a controversial topic is both courageous and risky. It will certainly be met by opposition by individuals or groups who disagree and may result in serious business consequences. H&M and Nike are just two of many brands facing consumer boycotts in China following calls to end cotton sourcing from the Xinjiang region. The NBA has faced backlash and revenue losses after one of its top executives expressed solidarity with pro-democracy protesters in Hong Kong, and Major League Baseball has faced conservative criticism for its decision to move the 2021 All-Star Game from Atlanta.

Companies and brands that aspire to leadership in shaping the world for good should be prepared to accept these challenges as the price of doing business and manage accordingly. While taking a stance may certainly come with risks, it can ultimately yield important benefits in terms of reputation, employee recruitment and retention, a rising share price and overall business success.

The emerging trend toward companies embracing a public point of view on pressing issues of the day may help organizations regain some of the public trust and credibility they ceded in recent decades. It may also help advance a broader societal agenda for businesses to demonstrate that their primary purpose is to advance the interests of society and not simply reward stockholders, and communications should be at the tip of the spear in propelling that agenda.

If you would like to learn more about how or whether your organization should embrace this growing trend, please contact us at hello@wilksgrp.com.