HBR’s Picks on Managing Social and Political Issues at Work

For better or worse, business and politics have become increasingly entangled: Everyone, from CEOs to frontline employees, is speaking up about social and political issues; corporate spending on both political lobbying and social responsibility efforts is common; and voter polarization is seeping into day-to-day interactions at work. When confronted with all of this at your organization, how should you respond?

Our new Big Idea series is focused on how to create a culture around employee and organizational speech, but there’s much more in our archive on similar topics.

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On Business Taking a Stand

If you’re a leader unsure if — or how — you or your organization should address an issue, start here:

The New CEO Activists
by Aaron K. Chatterji and Michael W. Toffel
Though U.S. corporations have long invested in political lobbying and campaign donations, a new trend has emerged in recent years: CEOs are taking very public stands on thorny political issues that have nothing to do with their firms’ businesses — even threatening to move business out of U.S. states that pass controversial laws.

But does CEO activism actually change public opinion and policies? What are its risks and rewards? And what is the playbook for leaders considering speaking out? The authors of this article examine those questions and explain the takeaways of their own research. One finding: Consumers tend to view CEO activism through the lens of their own political affiliations, so it can provoke both negative and positive responses. Nevertheless, in the age of Twitter, silence on an issue can be conspicuous — and consequential.

Bonus: Listen to Chatterji and Toffel talk about this topic on our HBR IdeaCast podcast and read a follow-up they published about three leaders in particular who took a stand: Why did they do it, and what can you learn from them?

When Should Your Company Speak Up About a Social Issue?
by Paul A. Argenti
Companies are increasingly under pressure to take a stand on high-profile sociopolitical issues. Sometimes there is a clear moral justification, as well as demand from customers, employees, and the communities in which you operate. At other times, the need to weigh in — and what kind of statement to make — will not be so clear. Before deciding, companies and leaders should ask three questions: (1) Does the issue align with our corporate mission and values? (2) Can we meaningfully influence the issue? (3) Will our constituents agree with our speaking out? Remember too that your words will be perceived as inauthentic, hypocritical, or “woke-washing” if you don’t take action to match them.

How Companies Should Weigh In on a Controversy
by David M. Bersoff, Sandra J. Sucher, and Peter Tufano
Executives need guidance about managing their organizations’ engagement with hot-button topics such as gender, climate, and racial discrimination. Success in this realm does not mean avoiding public controversy or achieving unanimous support among key stakeholders. Rather, it results from adhering to certain processes and strategies. The authors offer an approach that is anchored in data and managerial best practice but that is also sensitive to values and context. It can be helpful in figuring out which issues to address and how; in ameliorating disappointment among stakeholders; and in managing any potential blowback.

Should Businesses Take a Stand on Societal Issues?
HBR Cold Call
Harvard Business School senior lecturer Hubert Joly, who led the electronics retailer Best Buy for almost a decade, discusses examples from a case study featuring several corporate leaders who had to determine whether and how to engage with humanitarian crises, geopolitical conflict, racial justice, climate change, and more.

Why Ben & Jerry’s Speaks Out
by Alison Beard
How does a large company with a diverse customer base choose to take a prominent stand on highly politicized current events? An interview with Matthew McCarthy, Ben & Jerry’s former CEO, and Christopher Miller, global social mission director, on its swift and strong responses to the murder of George Floyd and the January 6 insurrection at the U.S. Capitol, why it believes in multi-issue corporate activism, and how organizations can become better social advocates.

The CEO of Dick’s Sporting Goods on Becoming a Gun Control Advocate
HBR IdeaCast
Ed Stack, the former chief executive of Dick’s Sporting Goods, decided after the Parkland school shooting to pull assault rifles and high-capacity magazines from all his company’s stores. The controversial choice hurt revenues. But the retailer weathered the storm, thanks to inclusive and thoughtful decision-making, careful communication with all stakeholders, and a strategic shift to new product lines. In this podcast episode, Stack explains why he chose to take such a public stance on a hot-button issue and how it has affected him personally and professionally.

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On Employees Taking a Stand

If your employees are speaking out about an issue — or if you are an employee who wants to raise an issue yourself — read the following:

The Wrong Way to Respond to Employee Activism
by Megan Reitz, John Higgins, and Emma Day-Duro
Leaders tend to be ill-equipped to handle outspoken employees. But with employee activism on the rise, managers who mishandle their response risk ongoing employee unrest and reputational damage to the organization. Research has shown that managers often fall into three traps: over-optimism, the belief that you can be apolitical, and a rush to quick fixes. By better understanding where each of these approaches goes wrong and engaging authentically, leaders can chart a better course.

Cultivating Everyday Courage
by James R. Detert
Most acts of courage at work don’t come from whistleblowers. They come from respected insiders at all levels who speak up because they believe it’s the right thing to do. And when they manage the process well, these employees don’t necessarily pay a high price; indeed, they may see their status rise. People who succeed in their courageous acts, or suffer fewer negative consequences, tend to exhibit certain behaviors: They lay the groundwork for action; they carefully choose their battles; they manage messaging and emotions; and they follow up afterward.

How to Call Out Racial Injustice at Work
by James R. Detert and Laura Morgan Roberts
It takes courage to speak up about racial injustice at work. Raising these issues brings risk for anyone — but especially for Black employees. But the authors’ research points to five strategies that increase your chances of a positive reception: (1) Use allies to speak as a collective; (2) channel your emotions so that they give you strength but don’t detract from your argument; (3) anticipate your counterpart’s own emotions; (4) frame your argument in terms that align with your audience’s perspective; and (5) follow up afterward.

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On Politics and Business

If you’re trying to manage issues related to politics at work or your company’s direct involvement in politics, consider these pieces:

Next In

When Business and Politics Collide

Corporate Advocacy in a Time of Social Outrage

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Businesses can’t weigh in on every issue that employees care about. But they can create a culture of open dialogue and ethical transparency.

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Don’t Ban “Politics” at Work
by Megan Reitz and John Higgins
With political polarization on the rise and companies gauging the risks of employees’ internal political activism, some are opting to ban political speech at work entirely. The authors, experts in speaking up at work, explain the pitfalls of this approach and instead suggest asking a different question: How can we support employees and encourage them to handle difference, respect one another, listen, and learn? The answer, they suggest, requires four actions on the part of leaders: Building empathy and respect for others’ views, inviting different perspectives into the leadership fold, accepting mistakes gracefully, and teaching people how to disagree.

Leadership in a Politically Charged Age
by Nour Kteily and Eli J. Finkel
Why are discussions of politically charged issues often so fraught in the workplace today? How can managers ensure that they aren’t caught flat-footed by the conflict these issues sometimes create among employees? Not long ago such questions lay at the periphery of corporate life. But today they’re central. In recent decades we’ve witnessed a surge in the proportion of people whose identities are deeply informed by their political allegiances and who believe they need to bring those identities to work. The result is often conflict that can spiral dangerously out of control. This is a new and rapidly evolving problem, and most leaders are ill-equipped to cope with it. The authors provide a framework to help managers understand when and how political conflict can become corrosive, and they explain how to navigate it more effectively and even harness its potential to strengthen the workplace.

Strategy in a Hyperpolitical World
by Roger L. Martin and Martin Reeves
The assumption that business and politics can and even should be kept separate is no longer realistic, and messaging from the corporate affairs department is insufficient to defuse political issues when they arise. Delta’s troubles in Georgia and Disney’s in Florida are two prominent examples. To make and implement the best strategic choices in this environment, leaders will have to: (1) develop robust principles to guide strategic choices; (2) address ethical issues early; (3) consistently communicate and implement their choices; (4) engage with and beyond the industry to shape the context; and (5) learn from mistakes to make better choices in the future.

How — and When — Should Companies Engage in the Political Process?
by Ed Dolan
For all the discussion about the social responsibilities of the corporation, there’s been less discussion of how and whether companies should influence government. A new set of principles from the Erb Institute of the University of Michigan suggests some guidelines based around responsibility, legitimacy, accountability, and transparency.

Corporate Political Spending Is Bad Business
by Dorothy S. Lund and Leo E. Strine Jr.
Corporations are facing increased scrutiny over their political spending — particularly when their stated values seem to contradict their lobbying efforts. A 2020 report by the Center for Political Accountability offers many examples, including companies that have publicly demanded racial equality while contributing to groups and candidates that promote racial gerrymandering, and those that purport to be concerned about climate change while donating to groups that challenge the EPA’s clean-power plan. In this article, the authors argue that companies should halt political spending entirely to reduce the risk of blowback and enable executives to focus attention and resources on running their businesses.

The Business Case for Saving Democracy
by Rebecca Henderson
Democracy is in trouble. What’s at stake for business? Should corporations do something to reverse these trends? This article argues that strengthening democracy is the only way to ensure the widespread survival of free-market capitalism. Without the essential guardrails a democratic government can provide, nations are at risk of falling into left- or right-wing populism, neither of which is good for business or society. The piece further discusses the essential pillars a free market needs to survive and the steps that the corporate world could take to drive positive change.