Cheryl Fields Tyler is CEO of Blue beyond advicebuilding effective organizations where both business and people thrive.
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It is clear that employees today expect companies to be a positive force in multiple dimensions, including on a personal level, “for us” in our day-to-day experience and “for the world”, including our communities and society at large. This “for-the-world” mandate requires business leaders to embrace a role many never expected – from taking clear public positions on social issues to building capabilities within organizations for challenging conversations and learning across differences.
Social leadership is now a core business activity.
One of the most cited sources on this subject is the Edelman Trust barometer, who reported earlier this year that the social role of business can no longer be ignored. When considering a job, 60% of employees want their CEO to speak out on controversial issues they care about, while even higher percentages expect CEOs to shape conversation and policy on topics such as jobs and the economy (76%) and wage inequality (73%).
This is especially true for younger employees. According to a recent survey, many workers under 45 say their companies need to get active on the toughest controversial issues. In a revealing statistic with implications for the ongoing battle for talent that continues even in this cooling economy: “Young employees are more than 2.5 times more likely to say that a company’s public views on controversial topics matter when choosing of an employer than their older counterparts. Even among the over-45s, almost 1 in 4 consider this an important factor.”
Businesses are microcosms of the larger society.
My company’s research reflects these findings and raises the bar even further for companies to lead in new ways, both internally and externally. Workplaces are now considered one of the main sources of community, a true microcosm of our society with the same variety of viewpoints, experiences and other aspects of diversity. I like to call this the ‘new commons’ – one of the few places where we come together in mutual interest and with enough shared values to work together productively.
Our survey of 753 employees found that nearly 60% of employees – and nearly 70% of those who identify as belonging to younger and/or underrepresented groups – want leaders to use the workplace as a forum for learning and having authentic discussions. conduct on social issues. Building the ability at all levels to have conversations that are aligned with your company’s purpose, the core values and goals you hold dear—and characterized by psychological safety and a growth mindset—is important to creating workplaces where all people can thrive.
How can CEOs navigate this paradigm shift?
It’s clear that people want CEOs and business leaders to take positions, and they trust us to create the shared context of values, information, capabilities and connection. So how should we deploy the moral capital invested in us by employees, investors, key stakeholders and society?
1. Establish a clear framework for answering social issues.
This includes educating your leadership, employees and board (if you have one) on why and how you should invest your moral capital; reaffirming the values you stand for; setting expectations and establishing processes about how social issues are socialized with leadership and communicated both internally and externally; and understanding and preparation for potential kickback and safety hazards.
2. Create a response team for social issues.
This team allows key members such as the CHRO, DEI, communications, legal and investor relations leaders to anticipate and address potential issues. Deputy members, such as subject matter experts within the organization, should be consulted for consultation and support as needed. The team can then make recommendations to the CEO and they can agree on an action plan.
The CEO may also consult with the leadership team or board of directors. Company leaders should be advised of all decisions, ideally prior to employee and/or external communications, recognizing that this is not always possible.
3. Develop criteria for the community response team to evaluate.
Think about questions like the following:
• What are the internal and external expectations to respond?
• Is there anything we need to address to be credible on this social issue?
• Does this issue allow us to take a position that is consistent with our company’s goals and values?
• Does remaining silent or neutral harm our morale, negatively impact our corporate culture, or derail Diversity, Equality, and Inclusion (DEI) efforts?
• How might taking this position necessitate policy changes or affect philanthropic efforts and community relations?
4. Prioritize internal learning and dialogue.
It’s important to create – and continually reinforce – practices for active listening and continuous learning about the issues that matter to the people in your organization. As a leader, you may be afraid to say something offensive, but it’s also important to be aware that remaining silent or neutral can be seen as tacit agreement. At the same time, it is impossible to discuss every problem. Be guided by your purpose and values.
I understand that dealing with these employee expectations can be difficult. Many business leaders never expected to be in the spotlight on sensitive, complex or polarizing social topics. And while employees may want your company to take a stand, they will almost certainly not be on the same wavelength when it comes to these issues. However, as business leaders, it is essential that we understand the trust placed in us – and that we rise to the challenge. Being a force for good isn’t just a slogan, it’s a business imperative.
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