For the past few years, we’ve been fielding calls from CEOs and other C-suite leaders who find themselves under increasing pressure to engage in — and take public positions on — issues that their companies would have considered outside their purviews only a few years ago. Recent research, including Edelman’s Trust Barometer, suggests that this pressure is likely to persist and possibly increase.
How Boards Can Guide Company Strategy on Social Issues
Six principles for deciding whether, when, and how to weigh in.
December 15, 2022
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Summary.
Given shifting stakeholder expectations around corporate stances on social issues and the potential reputational and financial consequences of poor decisions, board directors must focus on their company’s capacity and strategy for addressing these issues. They should demand a framework for determining relevance; ask smart questions about alignment, opportunity and risks; gather feedback from stakeholders, especially employees; consider objectives and tactics; consult with a diverse advisory team; and look for potential areas of contradiction so as to avoid or prepare for criticism.