Statements and Actions Should Be Based on Relevance, Resolve, Rewards and Repercussions
10/11/23 – – Should CEOs speak out about the horrors unfolding in the Middle East?
There’s no one right answer to that question. But there is a saying that can help leaders make informed decisions:
The wise speak because they have something to say. Fools speak because they have to say something.
Plato is credited with first expressing this thought. Even though his advice is a couple thousand years old, it holds up well today. In fact, given the pressure being placed on CEOs — by PR gurus, business school professors, employees and activist investors — to weigh in on controversial issues previously reserved for politicians and pundits, it may be more valuable than ever.
Yes, studies show that employees, customers and communities want businesses to speak out and take stands in alignment with their personal values and views. The problem is, not everybody has the same values and views. Today’s world is split pretty evenly between liberals and conservatives, Democrats and Republicans. Our toxic “you’re either with us or against us” environment leaves little common ground.
Make your feelings known about any important public issue and you’re likely to deeply offend half of your employees and customers.
Surely, you may say, this is a moment of moral clarity demanding public comment.
But if you can’t believe there could be differing views about these events, just turn on any cable news channel, visit the campus of Harvard University, or walk on the streets of New York where demonstrations supporting both sides of the conflict are taking place. In Congress there are representatives pointing fingers in all directions. And it’s a safe bet there is not consensus among the employees of any size company.
Passions are so high and polarized that even a nuanced position expressing hope for peace stands a good chance of coming under fire from internal and external audiences demanding absolute clarity aligned with their point of view.
So, should a CEO, understandably upset by what she or he is seeing, speak out now?
I encourage my clients to determine their response to issue-engagement opportunities by answering these four questions:
- How relevant is the issue to the operations and performance of your business?
- How strongly do you and your key internal and external stakeholders feel about the issue and what’s your level of resolve to stay meaningfully involved and make a difference even as the situation evolves?
- What rewards can your company expect from engagement or silence?
- What repercussions may come your way from taking a stand or taking a pass?
So far, most companies have opted for silence. The majority of those weighing in have had directly relevant things to say to important audiences, primarily their own employees.
JPMorgan Chase has offices and employees all over the world, including Israel. CEO Jamie Dimon in an internal message on Sunday reported on their safety and gave advice to employees traveling in the Middle East.
Similarly, Antonio Neri, CEO of Hewlett Packard Enterprise, posted updates on LinkedIn addressing the support being given his Middle East employees and their families. He did editorialize a bit, referring to the Hamas attack as “unjustified and inexcusable.”
Not everyone in the business world has been so restrained or internally focused.
Bill Ackman, founder of hedge fund Pershing Square Capital Management, leveled harsh criticism at Washington: “Terrorism loves a leadership vacuum and we have created one.”
Elon Musk placed the blame on Iran, stating that the country’s “official position is clear that the eradication of Israel is the actual goal, not just supporting the Palestinians.”
It’s hard to see how Ackman’s outspokenness will make a difference in this conflict or advance the interests of Pershing’s investors. And does Elan Musk’s commentary, whether you agree with it or not, make you feel any better about Tesla or X?
I’m not suggesting that silence is always the best answer or that CEOs should have no feelings about something so inhuman as the deeds depicted in news reports over the weekend. The key consideration whenever such gut-wrenching situations arise is not whether engagement will make the CEO feel better, but whether it will be in the best interests of the company.
Leadership is not a solo act. CEOs can take pressure off themselves and demonstrate respect for their employees by giving people at all levels of their companies (regardless of where they stand on any issue) time off from work to participate as private citizens in the political process as they see fit. Consider matching the donations made by employees to international emergency agencies in response to the Israel – Hamas conflict and offer grief counseling to those traumatized by these horrific events.
As for public statements, my best advice for CEOs is that whenever they feel like they have to say something about a controversial, sensitive issue, have a forward-looking discussion with their communications team focusing on relevance, resolve, rewards and repercussions. And heed the wisdom of Plato: Before saying something, figure out if you have something constructive to say.
What’s most important right now is that we all take time to address the fears and sadness within our own families, be kind to one another, and make a commitment to express our opinions at the ballot box.
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