The question of if and when companies should take a stand on a controversial political or social issue is itself a controversial issue in public relations and reputation management. Some experts say corporations that take a stand on an issue risk alienating many customers, employees, investors and other constituents. Large corporations with diverse customer bases are the most likely to upset either Democrats or Republicans or liberals or conservatives if they side with one view.
Other public relations experts argue that corporations can walk the reputational tight rope by carefully selecting issues to address adequately explaining reasons for taking their position. Companies must stake positions that are an extension of their values and reflect what their organization is willing to commit to address over time.
“Knowing when to speak up requires a real examination of how your values relate to today’s issues,” says Kristin Hollins, FleishmanHillard’s corporate reputation practice group lead for the Americas, in a press release. “Our research found that you can maintain loyalty from consumers who might disagree with your position, as long as you explain why you’re doing what you’re doing and how it relates to your company values.”
The PR firm’s survey of 1,000 consumers found that:
- 66% of U.S. consumers have stopped using a company’s products or services because its response to an issue does not support their personal views.
- 43% of consumers said they are extremely or very likely to continue to support a company if it can explain why it took a particular position, even if they disagree with the position.
- 61% said that even if they disagree with a company’s position, they believe it is important for companies to express their views. Among millennials, that number increases to 75%.
- 90% said companies often or sometimes take advantage of issues for their own benefit. As a result, 55% of consumers felt less favorable towards the company. Women and Boomers are more likely to feel less favorable toward companies if they think they’re taking advantage of issues for their own benefit.
Pick Your Battles Carefully
Not every issue deserves a company statement. It’s essential to carefully consider when to stake a position and when to remain silent. Taking a stand needs to serve a larger purpose.
“It’s critical for organizations to have a firm grasp on the issues that matter most to its stakeholders, and understand how those issues intersect with its own values and business,” Hollins said. “While it’s impossible to please everyone, it is possible to understand your audiences and their point of view. Companies will benefit from doing their research early and often, knowing this zeitgeist isn’t shifting anytime soon.”
How to Understand the Brand’s Audience
Extensive research, including social media analytics, can help a company better understand its customer base and predict consumers’ reactions.
Experts cite Nike’s recent advertisement featuring Colin Kaepernick, the former NFL quarterback known for taking a knee during the National Anthem. The ad immediately produced a significant backlash, including calls for boycotts and the burning of Nike products. However, the ad’s messages resonated with Nike’s target audience. Nike sales and stock price increased after the ad aired. The commercial continues to run on the major TV networks and has millions of views on YouTube.
On the other hand, Pepsi’s commercial that featured Kendall Jenner handing out sodas and a Black Lives Matter protest showed what can happen from lack of audience research,. Pepsi wanted to show its support for the Black Lives Matter movement but offended its audience because it didn’t consider the message from various angles and the viewpoints of different audience segments, writes Pratik Dholakiya, founder of The 20 Media, for Convince & Convert. Pepsi quickly pulled the commercial from the air.
Bottom Line: While corporations risk angering customers and other stakeholders when they take a stand on a political issue, they can mitigate risks with a well-developed communications plan. One key is to explain why the corporation decided to take a position on the issue.
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.
