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CEO Activism in 2018: Half of Americans Say CEO Activism Influences Government

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CEO Activism in 2018: Half of Americans Say CEO Activism Influences Government

-- Annual Weber Shandwick Study Finds 77 Percent of Americans Believe CEOs Need to Speak Out to Defend Company Values --

-- Americans Increasingly More Likely to Buy from Company with Activist CEO They Agree With (46% in 2018 Vs. 38% in 2017) --

PR Newswire

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:

  1. Jobs skills/training (80 percent)
  2. Equal pay in the workplace (79 percent)
  3. Sexual harassment (77 percent)
  4. Privacy and personal data protection (71 percent)
  5. Healthcare coverage (70 percent)
  6. 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.

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