NEW YORK, July 24, 2017 /PRNewswire/ -- Nearly
one-half of Millennials (47 percent) believe CEOs have a
responsibility to speak up about issues that are important to
society, far outpacing the sentiments of Gen Xers and Boomers (28
percent each). An even larger six in 10 Millennials (56 percent)
say that business leaders have a greater responsibility to speak
out now than in years past. This is according to CEO Activism in
2017: High Noon in the C-Suite, a report commissioned by global
communications and engagement firm Weber Shandwick in partnership
with KRC Research. This study follows The Dawn of CEO
Activism, among one of the first reports published in 2016 that
identified the risks and rewards for companies when their chief
executives speak out on hot-button issues.
"Over the past 12 months, the climate in the United States has changed dramatically as
business and policy have intersected more deeply than ever before,"
said Andy Polansky, CEO of Weber
Shandwick. "When dozens of CEOs spoke up about the new
administration's decisions regarding issues like climate change and
travel to the U.S. from select countries, for example, social media
ignited, protests erupted and media attention exploded. Navigating
how to communicate a company's point of view in this environment is
becoming increasingly complex and important. Future generations
will only pay closer attention to how companies communicate around
their values when it comes to deciding where to work or who to
purchase from."
Millennials' Buying Decisions Increasingly Influenced by CEO
Activism
CEO activism positively affects Millennials' purchase decisions,
according to the survey. Half of Millennials (51 percent) say they
would be more likely to buy from a company led by a CEO who speaks
out on an issue they agree with. This rate has increased since 2016
(46 percent). This form of "voting by wallet" is not to be ignored
as companies fiercely compete for customers. By comparison, CEO
activism is less likely to affect the purchase decisions of Gen
Xers and Boomers.
Millennial Employees Most Loyal to CEO Activist
Bosses
The war for talent is hyper-competitive and critical to
successful performance. In deciding whether to speak out, it is
imperative to consider the effect that CEO activism can have on
attracting and retaining talent. More than four in 10 Millennials
(44 percent) say they would be more loyal to their organization if
their own CEO took a public position on a hotly debated current
issue. While there is some risk – 19 percent say they would be less
loyal if their CEO spoke out – loyalty outweighs disloyalty by more
than twice as much.
"Millennials, more than other generations, expect CEOs to
champion their values," said Micho
Spring, global corporate practice chair of Weber Shandwick.
"Their early schooling in social media has extended beyond their
ability to influence social movements to impacting their workplace
and its leadership."
For Gen Xers and Boomers, the scales tip toward less loyalty.
Only 16 percent of Gen Xers and 18 percent of Boomers would be more
loyal if their own CEO spoke out, while two in 10 of each
generation (18 percent and 20 percent, respectively) would be less
loyal. Before taking a stand on an issue, it is important to
address the perspectives and concerns of this older segment of the
workforce to better understand what would or would not shift them
toward more positive perceptions of their companies.
The Risk of Silence
Weber Shandwick conducts ongoing CEO activism research to
provide companies with insights into what the public expects from
business leaders today. While our survey shows that Millennials are
favorable toward CEOs speaking out, Weber Shandwick's audits of
company reactions to recent policy decisions revealed that many
CEOs are also not responding.
This latest survey also asked consumers what they think the
risks are of not speaking out. Half of Americans (47 percent)
believe the biggest risk of a CEO not speaking out on a hotly
debated issue is some form of criticism, whether it comes from the
media (30 percent), customers (26 percent), employees (21 percent)
or the government (9 percent). Top perceived risks do not differ by
generation.
Additional Findings
In addition to the results outlined above, our research also
finds the following:
- Millennials are more likely to have heard of CEO
activism (48 percent) than Gen Xers (29 percent) and Boomers (35
percent).
- Millennials are more favorable in general of CEO
activism (42 percent) than Gen Xers (25 percent) and Boomers (24
percent). They also exhibit favorability even when an issue is
unrelated to the company's direct business (37 percent Millennials,
19 percent Gen Xers, 17 percent Boomers).
- Half of Millennials (50 percent) think CEO activism has an
influence on the government compared to 31 percent of both
Gen Xers and Boomers. Perhaps that is a strong reason for why they
favor CEOs taking a stand.
- Millennials perceive the primary reason CEOs take a public
position on an issue is to get attention in the media (36
percent). This is followed by selling more products or services (22
percent), showing how the issue aligns with their corporate values
(21 percent), and building their company's reputation (21
percent).
- Millennials are most likely to have taken an action
because of a CEO's stance on an issue (74 percent) followed by Gen
Xers (63 percent) and Boomers (55 percent). The top action taken by
Millennials is talking about the CEO's stance with people they
know. Given Gen Xers' and Boomers' general displeasure with CEO
activism, it is not surprising that they register their displeasure
by boycotting a CEO activist's company.
"Our research on CEO activism continues to show strong
enthusiasm among the Millennial generation for CEOs speaking out,"
said Leslie Gaines-Ross, chief
reputation strategist of Weber Shandwick. "For companies looking to
increase sales, recruitment, innovation and word of mouth,
Millennials' bias toward CEO activism should not be overlooked.
This generation is heavily purpose-driven and is already changing
the game when it comes to how we work and where people want to
work."
A Guide to CEO Activism
CEOs speaking out on hotly debated current issues comes with
both risks and rewards, and the generational gap we revealed in
response to CEO activism makes these factors even more pronounced.
Based on our study, Weber Shandwick identified 15 strategies that
CEOs and their companies should consider when approaching activism,
10 of which are below. For more information, click here to read the
full CEO Activism in 2017: High Noon in the C-Suite
report.
- Don't ignore the slippery generational slope. Millennials are
moving into the next generation of leadership and they do not want
their CEOs to be bystanders.
- Estimate the price of silence. Millennials are watching.
- Be fully prepared to commit time and company resources.
- Look in the mirror to make sure your organization practices
what it preaches. You will be held accountable.
- Consider the channels, messages and tone of voice used when
speaking out. Ensure the reasons behind the CEO's stance are
clearly articulated and vetted.
- Strength in numbers such as petitions, coalitions, etc. might
be a viable solution to a steady drumbeat of contentious political
and social issues.
- Have a crisis preparedness plan for a potential social media
firestorm.
- Expect to be asked to speak up the next time a hot button issue
arises.
- Develop a thick skin and anticipate criticism.
- Establish a firm link between the issue, your company's values
and its business.
About the Research
Weber Shandwick partnered with KRC Research in March and
April 2017 to conduct an online
survey of 1,021 U.S. adults 18 years of age and older, representing
the general population of America. It is the second annual wave in
of our CEO Activism research. They survey describes CEO activism to
respondents as follows: "In the past year or so, some chief
executive officers (CEOs, or top leaders of companies) have spoken
out publicly and taken a stand on controversial issues. For
example, CEOs have spoken up about social, political and
environmental issues such as climate change, income fairness,
same-sex marriage, immigration, gun control and discrimination."
The generations are defined as follows: Millennials (ages 18-36),
Gen Xers (ages 37-52), Boomers (ages 53-71).
About Weber Shandwick
Weber Shandwick is a leading global communications and
engagement firm in 79 cities across 34 countries, with a network
extending to 127 cities in 81 countries. The firm's diverse team of
strategists, analysts, producers, designers, developers and
campaign activators has won the most prestigious awards in the
world for innovative, creative approaches and impactful work. Weber
Shandwick was the only public relations agency included on the
Advertising Age Agency A-list in 2014 and 2015 and the only
PR firm designated an A-List Agency Standout in 2017. Weber
Shandwick was honored as PRWeek's Global Agency of the Year
in 2015, 2016 and 2017, The Holmes Report's Global Agency of
the Year in 2010, 2012, 2014 and 2015 and The Holmes
Report's Global Digital Agency of the Year in 2016. The firm
deploys deep expertise across sectors and specialty areas,
including consumer marketing, corporate reputation, healthcare,
technology, public affairs, financial services, corporate social
responsibility, financial communications and crisis management,
using proprietary social, digital and analytics methodologies.
Weber Shandwick is part of the Interpublic Group (NYSE: IPG). For
more information, visit http://www.webershandwick.com
About KRC Research
KRC Research is a global full-service nonpartisan opinion
research and strategy firm. A unit of the Interpublic Group of
Companies (NYSE: IPG), KRC Research offers the quality and custom
service of a small firm with the reach of a global organization.
For over 30 years, KRC Research has worked on behalf of
corporations, governments, not-for-profits and the communications
firms that represent them. Staffed with multidisciplinary research
professionals, KRC combines sophisticated research tools with
real-world communications experience. For more information, visit
www.krcresearch.com
Contact: Michelle Giuda
Company: Weber Shandwick
Phone: 212.445.8088
Email: mgiuda@webershandwick.com
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SOURCE Weber Shandwick