CEOs have always held personal views on social issues. However, in this politically and socially divided world, sharing those views can be tricky. Thanks to social media, word travels fast, and one “wrong” public statement from a business leader on a hot-button issue gets heard by millions within the span of just a few hours. Just like that, a company can be on the outs with employees, customers, and investors.
For this reason, boards must be able to provide sound advice to CEOs on when and how to speak out about social issues. Many CEOs don’t want to stay silent on the things that matter most, but it’s important to speak in a way that doesn’t alienate the company’s most important stakeholders or jeopardize the business.
Here’s a guide for directors to help CEOs communicate in a way that is heartfelt, strategic, and effective.
What Boards Should Consider When Advising CEOs on Public Statements
As directors advise CEOs about whether and when to speak on social issues, they must consider several strategic considerations. These are some of the critical guiding principles that will ensure CEOs can make better decisions when speaking out on behalf of the business.
Alignment With Core Values
The issue that the CEO is considering speaking out about should be in alignment with public statements that the business already has available about its core values or corporate commitments.
For example, two of the core values of Starbucks are courage and belonging. The company has always been about embracing difficult conversations and treating people with dignity. For that reason, it made sense for company leaders to speak out about the war in Gaza back in October 2023.
Speaking out in alignment with core values gives CEOs clear guidelines for crafting their statements.
Additionally, these values allow them to justify their positions should they be called out by the public or company stakeholders.
Connection With the Business
The last thing directors want is to make controversial statements that leave members of the public wondering why the board or CEO even commented at all. If the issue has no connection with or impact on the business, it can feel out of place and, in some cases, even opportunistic for leaders to make a statement about it.
No director or CEO wants to start a public conflict that could have been avoided. Remaining strategic about the way leaders enter a conversation can keep the public perception of the business intact.
Statistically speaking, 92% of investors say that what a CEO says publicly about a societal issue impacts their opinion of the company, so considering public perception can have a real material impact across the organization.
Ability to Make Meaningful Impact
Customers, employees, investors, and other stakeholders will find it challenging to believe CEOs if there is no action behind their statements.
If the board or CEO chooses to speak out about a particular topic, it’s important that they articulate how the company will create change for the better.
In the Starbucks example, the company offered a giving match for partners wishing to donate to eligible 501(c)3 organizations providing humanitarian aid.
Tech giant Intel publicly published its quantitative climate action targets and will report each year on its progress toward those goals.
Public statements paired with meaningful action can help business leaders build credibility with the target audience because the public can hold the company accountable for its commitments.
This also makes company leaders come across as genuine and authentic in their statements.
Understanding of Stakeholder Expectations
The CEO should refrain from making a public statement until there is at least some indication of how the words might impact company stakeholders. For example, a leader may appear to side with the majority of shareholders on an issue, but their position may end up alienating their employees.
This mistake can lead to growing dissatisfaction within the company and, in some cases, a mass exodus, which can also hurt the company’s image with the public. Though it can be tough to avoid situations like this, it’s important to approach every topic with empathy and from the perspective of inclusion. Continue to reach out to stakeholders for feedback to know how to best proceed with subsequent communications.
Keeping Communications Expertise in Mind When Deciding on Board Composition
Undoubtedly, navigating the world of public relations is tricky for business leaders. Gone are the days when CEOs and boards could simply let social activists handle the commentary while they continued on with business as usual.
CEOs must increasingly take a stand on social issues for the benefit of both the business and society at large.
This is where having board members with communications expertise can be of significant benefit. Someone with this type of training and background will be able to spot public relations issues and opportunities early on and provide the board and CEO with sound counsel on how to handle them.
They’ll also be able to offer advice on how to balance competing stakeholder views and help leaders avoid costly mistakes.
When selecting new board members, the nomination committee should definitely consider business-related PR and communications experience. Scenario-based questions about how a potential director would handle an impending PR crisis or craft a statement about a hot-button issue can also help determine which candidates are in the best position to help the board and CEO improve public communications.
Strategic Communication Is Crucial in a Fractured World
Whether a CEO or director has strong feelings about social issues or not, business leaders should prioritize strategic communication. Before making a public statement, ensure that the issue at hand is relevant to the industry and aligned with the organization’s publicly available core values. Additionally, make sure that the company is ready to put action behind words.
Finally, it’s crucial for CEOs and directors to weigh the opinions and feedback of all stakeholders, avoiding alienating any groups when possible. Directors with PR expertise can help in this regard, educating the board on how to balance competing viewpoints and handle reputational crises should they occur.
With careful and empathetic communication, business leaders can meet expectations for public statements while ensuring as many people as possible feel included, respected, and heard.
