CEOs Should Get Political, But Only Authentically

CEOs Should Get Political, But Only Authentically

Our CEO Ray Morris weighs in on taking an authentic political stand and how CREDO Mobile made that move, previously considered “public relations suicide,” to becoming a leader bringing about change on social and political issues, which is now a business necessity.

“CEOs Should Get Political, But Only Authentically” originally published on Forbes.com, April 25, 2018.

“Republicans buy shoes too.” The controversial quote, attributed to basketball legend Michael Jordan when he refused to endorse Harvey Gantt over avowed racist Jesse Helms in a 1990 Senate race, had dogged him ever since, despite doubts over the statement’s authenticity. Nonetheless, it reflected a longstanding brick wall between business and politics. After all, who wants to put off potential customers?

But there is a limit to this mindset, even for the biggest corporations. When President Trump equated both sides in the Charlottesville protests, his CEO-led business advisory councils disbanded – just one example of how his behavior and rhetoric have compelled companies to ignore the historic wall between corporations and issue activism. Recent Super Bowl commercials confirm this trend, hawking beer with touching (albeit often ham-handed) immigrant stories, and car ads calling out racial and gender bias. As corporate activism surges under this administration, it seems that companies are rushing to appeal to today’s consumers by standing with DREAMers, proclaiming environmental bona fides or dropping sponsorships with the National Rifle Association (NRA) after horrific school shootings.

How did taking a political stand shift from public relations suicide to business necessity, and how can we know when companies are acting authentically or with solely financial motives?

When our company, CREDO Mobile, was started more than 30 years ago, the founders wanted to show that a company could have a true moral compass as well as a strong political voice. Our goal was not to function as a tool of political candidates or parties. Rather, we sought to do the right thing and see if we could achieve our business goals as well as our vision for a more progressive future while inspiring the public to take action.

We pursued these two ends authentically, acting on our values, not from pressure to adapt to consumer whims. It worked because our customers liked the quality of products and also appreciated the ability to put their monthly bills to work for causes they care about, like funding Planned Parenthood, Doctors Without Borders, Friends of the Earth, the American Civil Liberties Union and dozens of others. CEOs just now wading into the political fray shouldn’t do so to woo customers — they should do it because it’s the right and necessary thing to do.

The evidence supports this approach. A company’s reputation can hinge on its response (or lack thereof) to developments in politics and broader society. As a Global Strategy Group (GSG) survey found, 81% of consumers believe CEOs should play a leadership role in bringing about change on social and political issues, and they are actively trying to understand where the companies stand on certain issues — a marked increase over previous years. In fact, the study shows that consumers are willing to go beyond simply tolerating a company’s activism and now actually embrace it, suggesting that all else being equal, a huge swath of the market will be loyal to a company that fights for their values.

There is an important caveat, bringing us back to the importance of authenticity: While it’s crucial to take a stand on critical issues, companies must do so quickly. GSG found that following a current event, half of Americans now expect a response from a corporation within 24 hours. This separates the authentically political from bandwagon jumpers-on because this timeframe is just too short for poll-testing, focus-grouping and hand-wringing over risking the bottom line. Companies that act from their long-held values can continue doing so with confidence, knowing their customers will remain loyal.

Article reposted with permission from Forbes Technology Council. Read the original article here.