In today’s politically charged environment, companies ponder how to react if they become embroiled in controversial issues. Should they respond vigorously, indirectly or remain above the fray? Consumers seem to be taking sides, either for or against the new administration of President Trump. Corporations are caught in the middle and risk criticisms or boycott by pro- and anti-Trump consumers. In the current divisive environment, even actions that seem nonpolitical can prompt condemnations.
Besides attacking individual companies, President Trump has criticized individual business leaders and entire industries and shows no signing of slowing down. In some cases, companies have commented even when Trump did not specifically target their brand. Some companies, notably tech giants, have taken stances against Trump’s immigration ban.
Trump’s tweets do indeed impact stock valuations and credit quality of companies he targets, at least temporarily. Toyota’s credit rating, a measure of its likelihood of default, increased 27.2% from what markets had expected the day after Trump threaten the car maker with a border tax if it build a factory in Mexico, Jim Elder, director of risk services at S&P Global Market Intelligence, told CNBC.
A corporation’s astute public response can greatly improve the situation. Boeing’s stock recovered from a 1 percent drop in December after the it said contracts Trump criticized were worth about $170 million, much less that the $4 billion figure Trump had stated, CNBC reports.
Questions to Ponder
In an Advertising Age article, Jim Moorhead, senior counselor in APCO Worldwide’s International Advisory Council, recommends organizations consider these questions:
- How important is your relationship with the administration?
- What’s your status or relationship with the administration and have you been active in building a relationship with key government officials?
- Is this issue important to you from a business or values standpoint and do your stakeholders and employees expect to hear from you on this issue?
More Advice from PR Crisis Experts
PR crisis experts also offer these recommendations.
Subscribing to real-time alerts through a social media monitoring service that closely monitors mentions of your company, brand and executive leaders is essential. Tweets and other social media posts can spread rapidly and exponentially. That means a fast response is vital.
Don’t over-react. Consider simply correcting misinformation in a matter-of-fact response. However, assertiveness can be essential.
Take the long-term view. Trump may soon move on to a new target. Seek a strong long-term market position in the market rather than short-term sales gain.
Consider who your spokesperson will be, if you chose to respond assertively. The CEO may not necessarily be the best choice. Other executives may be better skilled at media combat. Surrogates, such as rank-and-file employees or issue experts, may be harder to demonize than the CEO.
Bottom Line: Corporations are increasingly becoming involved in political issues, sometimes willingly, sometimes unwillingly. In the current politically charged atmosphere, PR teams and the organizations they represent walk a perilous tight rope. These tips can help determine the best approaches to defuse charged political situations.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
