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Business As A Force For Good (Part Four): How Can Leaders Navigate The Shift In Business' Societal Role?

Cheryl Fields Tyler is CEO of Blue Beyond Consulting, building effective organizations where both the business and the people thrive.

It's clear that employees today expect business to be a force for good in multiple dimensions—including on a personal level, "for us" in our day-to-day experience at work, and "for the world," inclusive of our communities and society as a whole. This "for-the-world" mandate requires business leaders to embrace a role many never anticipated—from taking clear public stands on societal issues to building capabilities inside organizations for challenging conversations and learning across differences.

Societal leadership is now a core function of business.

One of the most widely quoted resources on this subject is the Edelman Trust Barometer, which earlier this year reported that business' societal role is here to stay. 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 like jobs and the economy (76%) and wage inequality (73%).

This is particularly true of younger employees. According to a recent survey, many employees under 45 say their company should become active on the toughest of controversial issues. In a revealing statistic with implications for the ongoing talent war that persists even in this cooling economy: "Young workers are more than 2.5 times more likely to say a company's public stances on controversial topics are important when choosing an employer than their older counterparts. However, even among those employees over 45, nearly 1 in 4 consider this an important factor."

Companies are microcosms of the larger society.

My company's research mirrors these findings and raises the bar even higher for business to lead in new ways—internally as well as externally. Workplaces are now considered one of the most important sources of community, a veritable microcosm of our society with the same variety of viewpoints, experiences and other aspects of diversity. I like to refer to this as the "new commons"—one of the only places where we gather in mutual interest and with sufficiently shared values to work together productively.

Our survey of 753 employees revealed that nearly 60% of employees—and nearly 70% of those who identify as being from younger and/or underrepresented groups—want leaders to use the workplace as a forum to learn and hold authentic discussions about societal topics. Building the capability across all levels to have conversations that are aligned with your company purpose, core values and causes that you hold dear—and characterized by psychological safety and a growth mindset—is important for 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 stands, and they are trusting us to create the shared context of values, information, capabilities and connection. So how are we to deploy the moral capital invested in us by employees, investors, key stakeholders and society?

1. Establish a clear framework for responding to societal issues.

This involves educating your leadership, employees and board (if you have one) on why and how to invest your moral capital; reaffirming the values you stand for; setting expectations and establishing processes about how societal issues will be socialized with leadership and communicated both internally and externally; and understanding and preparing for potential blowback and security risks.

2. Create a societal-issue response team.

On this team, core members, such as the CHRO, DEI, communications, legal and investor relations leaders, can anticipate and raise potential issues to address. Adjunct members, such as subject matter experts within the organization, should be consulted for thought partnership and support as needed. The team can then make recommendations to the CEO, and they can agree upon a course of action.

The CEO can also confer with the leadership team or board. Business leaders should be notified of any decisions, ideally in advance of employee and/or external communication, recognizing this may not always be possible.

3. Develop criteria for the societal response team to evaluate.

Consider questions like the following:

• What are the internal and external expectations for responding?

• Is there anything we need to address to be credible on this societal issue?

• Does this issue allow us to take a stand that's aligned with our company purpose and values?

• Does staying silent or neutral erode our moral capital, negatively impact our company culture or derail diversity, equity and inclusion (DEI) efforts?

• How might taking this stand necessitate policy changes or impact philanthropic efforts and community relationships?

4. Prioritize internal learning and dialogue.

It's important to create—and continually strengthen—practices for active listening and ongoing learning about the issues that matter to the people inside your organization. As a leader, you may be afraid of saying something offensive—but it's also important to be aware that staying silent or neutral may be viewed as tacit agreement. At the same time, it's impossible to speak to every issue. Let your purpose and values guide you.

I understand that these expectations from employees can be difficult to navigate. Many business leaders never expected to be in the spotlight on sensitive, complex or polarizing societal topics. And while employees may want your company to take a stand, they almost certainly will not be on the same page when it comes to these issues. However as business leaders, it's essential that we understand the trust being vested in us—and to step up to the challenge. Being a force for good isn't just a slogan—it's a business imperative.


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