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Opinion: Corporate America should wield its tools for lasting change

Truth Be Told

Posted online

While it may have once been good practice for corporations to avoid the political and societal challenges of the day, that’s undoubtedly no longer the case. With the growing sentiment in recent years that “silence is compliance,” statements and actions by corporate America defending or denouncing candidates and ideals have been on the rise.

The latest, and perhaps more fervent response, came after rioters stormed the Capitol on Jan. 6 with the intention to “stop the steal,” encouraged by President Donald Trump to apparently upend the work of Congress to solidify the win of Joe Biden in the 2020 presidential election.

Corporate America was relatively quick to respond with its punishment. Simon & Schuster canceled a book contract with U.S. Sen. Josh Hawley, R-Missouri, who questioned the validity of the election results. And a litany of companies announced their plans to pause donations to legislators for evaluation or to stop altogether.

Commerce Bank, Hallmark, Marriott, Morgan Stanley and Verizon are a handful of corporations that plan to pause giving and specifically end donations to elected officials who impeded the peaceful transfer of power, including Hawley. Hallmark even asked our state’s junior senator to return a previous donation over his actions. Closer to home, in Joplin, TAMKO Building Products CEO and major Hawley donor David Humphreys called on the Senate to censure Hawley for his role in provoking the riots.

Three of Trump’s banking partners have announced they are cutting ties with the president. One business ally that remains a loyal supporter of Trump is Mike Lindell, the CEO of MyPillow.

It’s been noted that this season is often a time when companies pause giving to reevaluate their political alliances. So, the lasting impact of the dozens of companies that made public statements following the attack on our nation’s Capitol on Jan. 6 is yet to be seen. How can and will corporate America shape our future political landscape with such statements, and will consumers hold them accountable?

To me, that follow through is key to the intentions of corporate stances. The same is true with the outpouring of corporate commentary that followed this summer’s Black Lives Matter protests sparked by the killing of George Floyd by a police officer. Many corporations made moving posts of solidarity and committed that Black lives, in fact, do matter.

While statements are a start, actions are a must. Otherwise, businesses run the risk of attempting to profit or win customers over tragedy. Or lose customers over hollow words.

The Harvard Law School Forum on Corporate Governance examined this issue of politics and purpose in corporate America. The research found that successful organizations that make bold statements on political or social topics are successful only when those decisions mesh within a stated corporate purpose, which informs which political and social issues are relevant to the company, align with its mission and are worth addressing.

“A clearly expressed statement of purpose can also unify leadership, employees, investors and other stakeholders behind initiatives that are aligned with the company’s role in society,” the Harvard paper from October 2020 reads. “The lack of such unity could undermine the effectiveness of company leadership and render political action and engagement ill-considered and self-defeating.”

The authors said it’s no longer a question of “whether” and “why” a CEO should engage in political issues, but rather “which” and “how.”

It’s a high-stakes game for companies to take a stand in today’s divisive culture. Even as pundits complain “too little, too late” as companies denounce Trump and his allies with mere days left in his presidency. Let’s not forget just 11 weeks ago more than 74 million Americans cast their vote for Trump to remain president and campaign flags bearing his name still wave around our city as Biden prepares for Inauguration Day.

But I’d be remiss to not mention that members of the GOP, including ardent supporters of the president, called out Trump and his extremist supporters over their roles in the violence. So, perhaps this moment required less courage for companies to take a stand.

Corporations wield powerful tools to enable or cut down politicians: money and influence. Used with purpose, these tools can bring to light misdeeds and good work alike. But these tools used without strategy can cause even good intentions to backfire.

The consumer impact will be insightful to watch. As worked up as people seem to be about certain statements from corporate America, how many of us will actually go out of the way to avoid companies we don’t align with and will the bottom-line impact have long-lasting effects?

Will we be willing to change banks, switch our cellphone carriers, trade out pillows or check the publisher of a book before reading? It may become impossible to only support companies we align with ideologically unless we’re willing to grow our own food and live off the grid. In reality, we’ve long supported with our wallets companies and people who disagreed with us. When is the last time you dug into corporate political giving disclosures before ordering lunch from a chain restaurant?

Perhaps a stated corporate purpose that’s simple for consumers to find and digest would be an ideal way to shop for companies we align with. This isn’t to say we’d fully agree on each political contribution or partnership, but rather that our values matched up and those non-negotiables we hold dear aren’t compromised.

Springfield Business Journal Features Editor Christine Temple can be reached at ctemple@sbj.net.

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