NEW YORK, July 25, 2018 /PRNewswire/ -- Significantly
more Americans in 2018 believe that CEOs who speak out on hotly
debated current issues influence the decisions and actions of
government (48 percent vs. 38 percent in 2017). This is according
to CEO Activism in 2018: The Purposeful CEO, a survey
of 1,006 adult Americans commissioned by global communications and
engagement firm Weber Shandwick in partnership with KRC Research.
This study follows The Dawn of CEO Activism (2016) and
High Noon in the C-Suite (2017), among the first
reports that identified the risks and rewards for companies when
their chief executives speak out on hot-button issues.
"Over the past 12 months, it has become more common for leaders
of companies to speak out on policy issues, and the American public
is paying attention to this new brand of CEO activism," said
Andy Polansky, CEO of Weber
Shandwick. "Americans are beginning to believe that such actions
can influence government policy. While most CEOs are not accustomed
to participating in the political arena, they and their companies
need to be prepared to navigate these uncharted waters, whether
they remain silent or not."
Democrats and Republicans alike see CEO activism as
legislatively influential (54 percent and 51 percent,
respectively), although Independents are less convinced (28
percent).
CEOs Must Lobby for Their Company Values
A large
segment of the American population – 77 percent – agree with the
statement, "CEOs need to speak out when their company's values are
violated or threatened." There is a significant gender gap on this
sentiment, with 81 percent of women agreeing vs. 74 percent of
men.
% agree
that…
|
Total
|
Full-Time
Employees
|
Men
|
Women
|
Caucasians
|
African
Americans
|
Hispanics
|
CEOs need to
speak
out when their
company's values are
violated or threatened
|
77%
|
79%
|
74%
|
81%*
|
77%
|
80%
|
75%
|
*Significantly higher
than comparative sub-group
|
When it comes to employee impact, one-third of Americans who are
employed (31 percent) report they would be more loyal to their
organization if the CEO took a public position on a hotly debated
current issue, overshadowing those who would be less loyal (23
percent). The largest segment (46 percent), however, is undecided,
which indicates that what issue a CEO decides to speak out on needs
to be carefully vetted to understand employee sentiment.
CEO Activism Increasingly Impacts Buying Behavior
CEO
activism positively affects U.S. consumer purchase decisions,
according to the survey. Nearly half of consumers (46 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 and only 10 percent say they
would be less likely. This rate of positivity has increased
significantly since 2017 (46 percent vs. 38 percent).
Americans Speak Out on Appropriate CEO Activism
Issues
The survey presented respondents with a list of 19
current issues and asked them to identify which ones they feel CEOs
and other business leaders should speak out and express their
opinion on. The top six issues, as chosen by respondents, are
decidedly issues of workplace management:
- Jobs skills/training (80 percent)
- Equal pay in the workplace (79 percent)
- Sexual harassment (77 percent)
- Privacy and personal data protection (71 percent)
- Healthcare coverage (70 percent)
- Maternity/paternity leave (69 percent)
The issues least desirable for CEOs to speak out on are the
legalization of marijuana (26 percent) and abortion at a mere 14
percent.
There are sizable variances by demographic group. The issues
with the widest gaps are:
- By Gender: Women are 11 percentage points more likely than men
to believe CEOs should speak out on gun control (40 percent vs. 29
percent, respectively)
- By Generation: Younger Millennials (22 to 29 years old) differ
widely from Older Millennials (30 to 37 years old) on several
issues. Most notably they are more likely to feel CEOs should speak
out on LGBTQ rights (46 percent vs. 29 percent), gender equality
(70 percent vs. 54 percent) and nationalism (42 percent vs. 28
percent)
- By Race: African Americans differ from Caucasians and/or
Hispanics on most issues. The biggest gaps in the issues that
African Americans believe CEOs should speak out on are race
relations (69 percent vs. 43 percent and 46 percent, respectively)
and immigration/refugees (58 percent vs. 35 percent and 37
percent).
A Guide to CEO Activism in the Era of Public
Service
CEOs speaking out on hotly debated current issues is
quickly becoming a new role that they and their boards and
management teams must address. CEO Activism in 2018: The
Purposeful CEO found key markers of this important
responsibility to be rising rapidly. Americans see CEO activists as
purpose-driven – affecting government, defending workplace values
& being the new public servants. Weber Shandwick recommends
CEOs and their companies consider the following guidelines when
approaching activism:
- Accept the expectation that CEOs have a role to play in
governmental policy. Decide sooner rather than later whether
your company wants its CEO speaking out on policy matters. Involve
government affairs personnel. The general public is beginning to
expect more from CEOs during these volatile times which are only
getting more turbulent and polarized as mid-term elections fast
approach in November 2018.
- Make your company values crystal clear, both internally and
externally. You may have to stand up for your corporate values
as employees, customers, investors, and others place pressure on
those at the top. CEO activism would have maximum effect, and less
risk of criticism, if it is obvious that the stance is in line with
company values or principles. CEOs and companies are finding that
they need to be accountable to their values or else.
- Make sure your own house is in order. Before speaking
out on a policy or societal matter, check to see that there will be
no surprises in who your company does business with when it comes
to government entities.
- Employee loyalty is being tested in new ways. With
nearly half of employees surveyed unsure whether they would feel
more loyal or less loyal in the event of a CEO activist event,
companies need to be firmly tapped into the pulse of employee
sentiment on societal issues before they make the wrong move.
- Recognize that some issues are "safer" than others.
Going outside the realm of workplace management issues, such as job
skills and training, can become risky but may be necessary to
address if company values collide with political or societal
issues.
"Our newest wave of research on CEO activism shows the perceived
growing influence of CEOs on the government according to the
American public," said Leslie
Gaines-Ross, chief reputation strategist of Weber Shandwick.
"With mid-term elections nearing, companies can no longer ignore
the mantle that Americans are placing on CEOs to be involved and
better public servants."
Please click here for the full CEO Activism in 2018: The
Purposeful CEO presentation. Click here for additional Weber
Shandwick research and insights on CEO activism.
About the Research
Weber Shandwick partnered with KRC
Research in May 2018 to conduct an
online survey of 1,006 U.S. adults 18 years of age and older,
representing the general population of America. It is the third
annual wave in of our CEO Activism research. The 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."
About Weber Shandwick
Weber Shandwick is a leading
global communications and marketing services firm in 78 cities with
a network extending to 128 cities around the world. 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 and 2018. Weber Shandwick was honored as PRWeek's
Global Agency of the Year in 2015, 2016, 2017 and 2018, The
Holmes Report's Global Agency of the Year in 2010, 2012, 2014,
2015 and 2017, 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, employee engagement, social impact, 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:
|
Kim Dixon
|
Company:
|
Weber
Shandwick
|
Phone:
|
212.546.7876
|
Email:
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kdixon@webershandwick.com
|
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