he pandemic effect revealed a lot. We saw a great capacity for care, sacrifice, and compassion, but it also highlighted the injustice and prejudice entrenched throughout society. It changed how we—as leaders—interact with the world around us, accelerating progress, creating change, and causing action. Whatever your personal experience, the collective mood of awareness and expectations has changed, especially as it relates to business and its role in society. This is a trend that has been evolving but the pandemic put this change on steroids.
Nowhere are these increased expectations more apparent than on a business’s response to social issues. In early 2020, we could have predicted that businesses would respond to the demands for new products caused by the shortage of necessary goods. What we may not have predicted was the rising demand from consumers and employees for companies to engage on social issues on a fundamental level, using their clout to influence systemic changes in our society for issues such as voting rights, vaccine requirements, and climate action.
Clearly, the world has changed. Every company must address the challenge of when and how to engage on these emotional and politically in an authentic way that aligns with both their business objectives and what matters most to their stakeholders.
Business activism and the changing role of government
In the past, governments and NGOs have taken the lead in addressing these issues, especially in times of crisis. Today, these lines have blurred, partly due to the growing expectations of employees, lack of confidence in government, and increasing disinformation and hyper-partisanship.
Given these changes, business has a significant role as an honest broker, filling the void and being a catalyst for change. Businesses, and their leaders, know how to focus on a problem and organize to get things done. We can use these skills to be a catalyst for global understanding and collaboration, because an organization can only succeed when it operates in a predictable world, and as a steward of resources for the planet’s future. We must lead on social justice through our organizations’ own performance and practices—and the workforce of the future is demanding it.
After all, the business community has the best motivation of all: a company cannot be successful in a failed world. This message is fueling growth not only in the C-suite, but the Board Room and within the investor community. Business must find a way to make its voice heard as a partner for change and stay at the forefront of addressing these issues through remembering that the companies’ self-interests are aligned with society’s best interests. And as businesses continue to become a trusted partner, they must practice how to engage meaningfully with stakeholders.
The early signs of success
The pandemic created an imperative for multi-stakeholder engagements. For example, collaborations to create a vaccine and execute a mass distribution campaign could not have happened without a partnership between business and government. It taught us that if we set aside differences and focus on outcomes, anything is possible.
The impact of the business community can only grow from there as we turn to the other issues we must address as a society. As our employees push us to establish firm and clear commitments, how can we take what we have learned and embed it as part of our operating models for the future? This question is now facing corporate leadership daily, and leaders must ask when and how to engage in a way that leads to meaningful change.
By staying involved, companies are valued by employees and consumers, but they must demonstrate their commitment through strategic actions. Businesses must think carefully about when to engage and do so in a way that is appropriate for their brand and aligns with their mission and values.
And yet, leaders need to think about what to do when this engagement may not be universally supported or is not directly related to the objectives of the business, but still top of mind for stakeholders. Because lasting change takes time, and requires initial champions that are bold enough to be ahead of the curve.
How to decide to engage on social and political issues?
In post-COVID times, there is no room for reacting to social issues just through a single statement, and speed is vital. The decision to engage needs to be made rapidly—within 18 hours. Businesses must already understand the expectations of their stakeholders to offer a point of view. One way to do this is to establish channels of communication for employees to meaningfully engage with leadership on these issues, while engaging its philanthropic arm to compound impact.
To capitalize on stakeholder trust, businesses need a transparent decision-making framework, guiding them on when to proactively engage, and to embed socially conscious practices into their own internal policies daily.
The decision to engage must be at the systematic level, with great deference to stakeholder expectations. The process must be robust and repeatable, with clear reporting activities. Businesses must ensure to understand the nuances of the issue and consider their brand’s history and values. Businesses must ensure they are meaningfully influencing the issue, not just adding noise to the conversation and consider how their stakeholders may follow their lead in participating.
In addition, it is important that a response is not outsized for the issue, so as to not create unrealistic expectations for future engagement. When businesses consider their brand, they must think about what issues they want to be known for tackling and having a voice in the conversation. They must think about how they can leverage their reputation to push other stakeholders toward progress.
Actionable change cannot happen at only the top or bottom, but solutions must be woven throughout a company’s entire footprint. No matter the issue driving positive global and social impact must be proactive and integrated to build public and stakeholder trust. By meeting stakeholder expectations for proactive social engagement, companies leverage their reputation to impact stakeholders, becoming the ultimate catalysts for change.
While the pandemic has provided us a moment in history to engage and be at the forefront of change, our work as business leaders must be lasting, ready to adapt as societal needs change, and empower all aspects of our business to play a role in shaping a better future.
a global affairs media network
How Businesses Become Changemakers
Photo by Tim Gouw via Unsplash.
October 7, 2021
The pandemic made us more aware of systemic injustice entrenched throughout our societies and has accelerated an evolution in how businesses think about how they engage with social and political issues, writes APCO Worldwide Founder Margery Kraus.
T
he pandemic effect revealed a lot. We saw a great capacity for care, sacrifice, and compassion, but it also highlighted the injustice and prejudice entrenched throughout society. It changed how we—as leaders—interact with the world around us, accelerating progress, creating change, and causing action. Whatever your personal experience, the collective mood of awareness and expectations has changed, especially as it relates to business and its role in society. This is a trend that has been evolving but the pandemic put this change on steroids.
Nowhere are these increased expectations more apparent than on a business’s response to social issues. In early 2020, we could have predicted that businesses would respond to the demands for new products caused by the shortage of necessary goods. What we may not have predicted was the rising demand from consumers and employees for companies to engage on social issues on a fundamental level, using their clout to influence systemic changes in our society for issues such as voting rights, vaccine requirements, and climate action.
Clearly, the world has changed. Every company must address the challenge of when and how to engage on these emotional and politically in an authentic way that aligns with both their business objectives and what matters most to their stakeholders.
Business activism and the changing role of government
In the past, governments and NGOs have taken the lead in addressing these issues, especially in times of crisis. Today, these lines have blurred, partly due to the growing expectations of employees, lack of confidence in government, and increasing disinformation and hyper-partisanship.
Given these changes, business has a significant role as an honest broker, filling the void and being a catalyst for change. Businesses, and their leaders, know how to focus on a problem and organize to get things done. We can use these skills to be a catalyst for global understanding and collaboration, because an organization can only succeed when it operates in a predictable world, and as a steward of resources for the planet’s future. We must lead on social justice through our organizations’ own performance and practices—and the workforce of the future is demanding it.
After all, the business community has the best motivation of all: a company cannot be successful in a failed world. This message is fueling growth not only in the C-suite, but the Board Room and within the investor community. Business must find a way to make its voice heard as a partner for change and stay at the forefront of addressing these issues through remembering that the companies’ self-interests are aligned with society’s best interests. And as businesses continue to become a trusted partner, they must practice how to engage meaningfully with stakeholders.
The early signs of success
The pandemic created an imperative for multi-stakeholder engagements. For example, collaborations to create a vaccine and execute a mass distribution campaign could not have happened without a partnership between business and government. It taught us that if we set aside differences and focus on outcomes, anything is possible.
The impact of the business community can only grow from there as we turn to the other issues we must address as a society. As our employees push us to establish firm and clear commitments, how can we take what we have learned and embed it as part of our operating models for the future? This question is now facing corporate leadership daily, and leaders must ask when and how to engage in a way that leads to meaningful change.
By staying involved, companies are valued by employees and consumers, but they must demonstrate their commitment through strategic actions. Businesses must think carefully about when to engage and do so in a way that is appropriate for their brand and aligns with their mission and values.
And yet, leaders need to think about what to do when this engagement may not be universally supported or is not directly related to the objectives of the business, but still top of mind for stakeholders. Because lasting change takes time, and requires initial champions that are bold enough to be ahead of the curve.
How to decide to engage on social and political issues?
In post-COVID times, there is no room for reacting to social issues just through a single statement, and speed is vital. The decision to engage needs to be made rapidly—within 18 hours. Businesses must already understand the expectations of their stakeholders to offer a point of view. One way to do this is to establish channels of communication for employees to meaningfully engage with leadership on these issues, while engaging its philanthropic arm to compound impact.
To capitalize on stakeholder trust, businesses need a transparent decision-making framework, guiding them on when to proactively engage, and to embed socially conscious practices into their own internal policies daily.
The decision to engage must be at the systematic level, with great deference to stakeholder expectations. The process must be robust and repeatable, with clear reporting activities. Businesses must ensure to understand the nuances of the issue and consider their brand’s history and values. Businesses must ensure they are meaningfully influencing the issue, not just adding noise to the conversation and consider how their stakeholders may follow their lead in participating.
In addition, it is important that a response is not outsized for the issue, so as to not create unrealistic expectations for future engagement. When businesses consider their brand, they must think about what issues they want to be known for tackling and having a voice in the conversation. They must think about how they can leverage their reputation to push other stakeholders toward progress.
Actionable change cannot happen at only the top or bottom, but solutions must be woven throughout a company’s entire footprint. No matter the issue driving positive global and social impact must be proactive and integrated to build public and stakeholder trust. By meeting stakeholder expectations for proactive social engagement, companies leverage their reputation to impact stakeholders, becoming the ultimate catalysts for change.
While the pandemic has provided us a moment in history to engage and be at the forefront of change, our work as business leaders must be lasting, ready to adapt as societal needs change, and empower all aspects of our business to play a role in shaping a better future.
