Why Businesses Should Take a Stand on Divisive Issues
These are difficult times and no one has the right answer or the perfect response. Please understand, this post comes from a place of compassion and empathy. I stand with black communities and people of color. I also stand with the small businesses who are doing the best they can to survive the volatile market.
During polarizing times, it’s easier for brands to stay mute. Small businesses do not have the luxury of a full-scale public relations team and fear they will say the wrong thing. However, I’d like to make the case for…
Why staying out of “politics” is bad for your brand:
Sales could decrease. Nike’s sales increased 31% after their ad with Colin Kapernick, Believe in Something. The brand also saw an increase in value of $6 billion. The company’s founder, Phil Knight, had this to say about those results: “You can’t be afraid of offending people. You can’t try and go down the middle of the road. You have to take a stand on something, which is ultimately I think why the Kaepernick ad worked.”
In 2017, the United States instituted a travel ban on people from certain Muslim countries. Uber continued to service the JFK airport and did not take a vocal stance. Its competitor, Lyft, pledged to donate $1 million to the American Civil Liberties Union to support immigrants and refugees. As a result, the Lyft mobile application was downloaded more than Uber for the first time.
Consumers will stop buying. Edelman's 2017 Earned Brand report found 64% of consumers will not buy a brand because it stayed silent on an issue it had an obligation to address.
Employees could leave. A recent report by American Express found 81% of U.S. millennials said a successful business needs to have a genuine purpose.
Brand image could suffer. When you do not take a position on an important issue, your business appears oblivious or ignorant. It’s easy to not have an opinion or have an uneducated opinion. However, with so much information at our fingertips, you have to be lazy to be uneducated.
When to take a stand:
It’s impossible to have a policy on every political, social, and economic issue in the world. It’s also impossible to donate to every single charity. You will have to make the difficult decision of when to vocalize your stance. Your business should publicize its viewpoint if:
the issue has a direct impact on you personally, your business, or your target audience. Clearly, more issues will apply to your target audience so it can be difficult to decide. In that case, you will need to determine if…
the issue does not align with your business’ values. Many businesses have articulated their mission statement and values but very few frequently assess whether they are in line with those values. Ask yourself or your leadership team whether the current event contradicts your values and therefore needs to be addressed.
How to take a stand:
Define your business’ mission, values, and the impact it wants to make. Most of my clients tell me they want to make an impact. I challenge them to articulate what this means. Impact who? Intrinsic or extrinsic impact? If you choose to form a public stance, first communicate your values and why you support or don’t support the issue at hand.
Determine which platforms/issues are important to you. Since you can’t support every charity or speak for every cause, choose the ones that have a direct impact on your business and are in alignment with your values. This will help you communicate why you are taking action.
Ask yourself, “If we do not take a stand, what will the response be from employees and customers? If the situation has a direct impact on your target audience, you should assume they expect you to act quickly.
Do your research. Have candid conversations with your shareholders. Form an educated opinion. It’s easy to not have an opinion. However, you have to be lazy to be ignorant and uneducated these days.
Don’t just talk the talk, walk the walk. This is where many businesses are falling short right now. You can’t just pay lip service. Your customers and employees expect you to take action. Donate to a worthy charity. Review your HR practices and diversity metrics. Does your workforce represent the local population? Are there major pay gaps? Incorporate training and new KPIs to fill those gaps, whatever they may be. Stop promoting or selling products/brands that do not align with your values. Be very careful about the brands you choose to collaborate with and support. Keep communicating with your shareholders.
Stay focused on your goal to have a positive impact on your shareholders. As long as your decisions are in alignment with that and you continue to communicate your intention, your consumers will feel appreciated.
If you need help steering your business in the right direction or realigning your organization, I would love to serve you. Set up a complimentary consultation today!