Navigating the Risky Waters of Social Activism

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When Companies Become Social Activists speaks to business research by Booz & Co.

In joining a boycott, and thus “acting as activists themselves,” companies turn the situation to their benefit, the study shows. Besides “forging alliances with otherwise hostile stakeholders,” companies attract positive media attention and “save face while…pressuring their peers to follow suit.” According to one former executive interviewed for the study, they even build goodwill that can buffer them from reputational crises down the road.

On the one hand, this is a no-brainer decision for a top leader:  If some conflict, incident or practice seriously harms the company, he or she must do something.  On the other hand, what that something actually is may be a tough, complicated call.

It calls upon the company to truly examine its heart and soul - its values, that is.  Because the company is not an abstract entity, it calls upon its people to deeply reflect on what matters the most to them.  In both cases, they have to make a very careful decision and take measured action.

A boycott is one thing.  A group of people voice their disagreement or disgruntlement, and they do so peacefully and rightfully.

A riot is another thing.  I imagine the prospects of a boycott going terribly awry are always there.  It doesn't mean a top leader should categorically halt all forms of social activism.  Rather, it bears upon him or her to weigh possible scenarios and outcomes, before moving forward.