When should CEOs speak out on politics?
As executives flee White House business councils this week, they reflect an increased boldness in U.S. businesses to address political topics.
In the fallout of President Trump’s remarks on the violence in Charlottesville this week, it’s clear that corporations are increasingly willing to take political stances.
Trump hastily dissolved two business advisory councils this week as chief executives began resigning over his remarks about an eruption of violence in Charlottesville, Virginia, sparked by a far-right rally around a Confederate monument. Among them, Intel, Merck, Under Armour, 3M, and the Campbell Soup Company.
The clash turned to horror when a white supremacist allegedly plowed his Dodge Challenger into a crowd of anti-Nazi protesters, killing a woman and injuring 19 people.
Making political statements can be perilous for companies, but sometimes it’s riskier not to take a stand, two experts in executive communications suggest.
Companies have a fiduciary responsibility to their shareholders, and that consideration plays into CEO’s political positions, says Rob Friedman, a communications consultant and senior director of Global Executive Communications for Eli Lilly and Company. There’s a risk any time a corporation wades into politics, because it can be a lose-lose situation, Friedman adds.
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