Companies used to avoid political issues at almost any cost. But those still relying on a strategy of abstention and neutrality are quickly learning that it no longer works the way it once did. Sometimes it leads to more harm than good.
Companies Can’t Avoid Politics — and Shouldn’t Try To
Neutrality is no longer a viable option.
March 07, 2018
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Summary.
How can companies engage in political issues without alienating their customers? The authors argue that the key lies in understanding the psychology that shapes consumers’ responses to corporate political activities. When a company makes a statement on a political issue, the responses of stakeholders can be idiosyncratic, but some clear themes arise again and again. Overall, the authors suggest that stakeholders look for transparency, consistency, a business case for activism, and leadership. To succeed in the current political climate, business leaders must work to understand their customer base — and act in line with their values.