CCOs Assume Leading Role as CEOs Speak Out on Political Issues

CEOs traditionally commented publically only on issues that directly impacted their businesses. They almost always avoided controversial issues. Their jobs depended on company sales and profits – and that’s mostly what they talked about in public. They also usually welcomed an opportunity to influence government policies that impacted their business,

In a growing trend, more business leaders are speaking out and wading into politics. A range of CEOs spoke out against the alt-Right violence in Charlottesville, VA. CEOs disbanded President Trump’s Strategic and Policy Forum following Trump’s comments about the violence. In response, Trump attempted to preempt the mass resignations by dissolving the forum and another White House forum on manufacturing and economic policy.

The problem is that CEOs generally lack a deep understanding of politics. “Business executives as a group rarely show the kind of sophistication that the nation needs in politics. They give money to candidates of both parties, and they expect lower taxes, fat contracts, and gratitude. They have as little understanding of citizenship as politicians do of economics. Their interest in politics is as limited as politicians’ interest in profits,” writes Thomas G. Donlan in Barron’s.

“Do [CEOs] realize that most politicians embrace business leaders for the same corrupt reasons that the business leaders embrace the politicians?” Donlan asks. “When business leaders leap into bed with politicians, they think they will gain influence and respect. Thus, they become members of the oldest profession, and they run the risk of catching a serious social disease,” Donlan cautions.

An Opportunity for Chief Communications Officers

As CEOs become more embroiled in political issues and other current events, corporate chief communications officers are taking on more responsibilities in framing strategy and public statements.

“For corporate chief communication officers, this presents a huge opportunity to help CEOs navigate the pitfalls of speaking out, knowing that they can help build both the business and a more just world when they do so,” says Roger Bolton, president of the Arthur W. Page Society, an association for PR and communications executives and educators.

Top COOs now do more than prepare crisis communications plans and churn out press releases, argues Gary Sheffer, former vice president, communications & public affairs for General Electric. They examine the organization’s culture and recommend improvements.

“CCOs must contribute beyond communications by connecting dots and integrating conflicting interests. To be able to do this, CCOs must have deep understanding of how business works,” Sheffer writes in Fortune.

Research Findings on Mixing Business and Politics

A growing body of research states that CEOs can promote their businesses, attract customers, and increase sales by taking a public stance on public issues. Research by Melissa Dodd, an assistant professor in advertising and public relations at the University of Central Florida, indicates that older people are more likely to boycott a company when its views don’t align with their own, The Wall Street Journal Reports

Research from Weber Shandwick reveals that millennials are significantly more likely to buy products from – as well as work for – companies if their CEOs take public stances on hot-button issues that affect the company.

Researchers from Duke and Harvard writing in The New York Times say their research “suggest that CEO activism can sway public opinion – and also increase interest in buying the company’s products.”

The Risks of Doing Nothing

Companies face significant risks when commenting on political or controversial social issues. Whatever they say, they risk antagonizing one group or another. Still, sometimes taking a stance is riskier than keeping quiet and doing nothing. The CEOs on Trump’s White House forums may have faced more criticism if they had stayed.

“I’m not saying it isn’t courageous,” says Rob Friedman, senior director of global executive communications for Eli Lilly and Company. “I’m glad these CEOs did it. But what may seem like taking a stand in courage: They’d be in trouble if they didn’t.”

Some communications experts argue that CEOs have a responsibility to strive to improve society.

“CEOs are more than the head honchos of their companies; they are also the chief inspiration officers,” says Justina Chen, story strategist with Upstart Agency. “That means they have to consistently stand for their principles and be the ambassador for their company’s values.”

Bottom Line: As more CEOs speak out about public issues and events, responsibilities of chief communications officers will grow. Besides becoming responsible for advising CEOs about their public statements, CCOs will assume more important strategic powers in their organizations.