Leeatt Rothschild is the founder and CEO of Packed with Purpose, where business gifts make a lasting impression because they give back.
Whether you’re a founder, chief people officer or VP of marketing, you know the tremendous weight behind your brand’s choice of words. That’s especially true for businesses navigating the complex decision of whether they should engage in politically polarizing topics.
More frequently, companies are pulling the teeth from their messaging by choosing neutral language or by hedging on controversial topics. Target, for example, reduced its Pride merchandise to “select stores” after last year’s backlash. Adidas similarly tried a balancing act two years ago. When they ended their partnership with Kanye West after the rapper’s antisemitic comments, they continued selling the remainder of their Adidas Yeezy inventory and donated a portion of the proceeds to combat antisemitic hate.
Playing It Safe Can Erode Brand Authenticity And Trust
Some businesses want to walk a neutral line, but what happens when you try to stay neutral in a world that demands authenticity? There may be safety in that path, but there’s also no hope of upward momentum when you’re severely risk averse, and there’s a significant risk of losing the trust of your team or customers. According to a Workforce Confidence Survey, 82% of U.S. professionals want their company’s values and culture to align with their own.
When done thoughtfully, there’s real value in being bold. There’s a strength in choosing powerful language. Making your beliefs known certainly comes with risks, but brands that strategically wear their purpose on their sleeves will win more hearts and minds than those who remain tepid.
The Upside Of Bold Authenticity
Chief human resource officers (CHROs) clearly understand the value of proclaiming their company’s belief system, and 70% said they will continue to take internal and external stances on sociopolitical events. We’re seeing that executed carefully across the political spectrum.
Take two polar opposite examples: Etsy and Tractor Supply. Etsy CHRO Toni Thompson recently framed her company’s employee benefits approach as one that emphasizes DEI and social impact. Toni could have easily made a safe choice and positioned Etsy broadly as one that values its employee benefits program. Instead, she chose polarizing language that signaled to Etsy’s employees and customers what their brand stands for, without reservation.
Tractor Supply made the opposite choice this summer. After backlash from its customer base, the company eliminated its DEI goals, withdrew its carbon emissions goals and ceased sponsorship of what they referred to as nonbusiness activities such as pride festivals and voting campaigns. The news release around the announcement was hyper-intentional in its language.
Tractor Supply wanted its customers to know they are “passionate about being good neighbors in our hometowns” and that they have “invested in the future of rural America.” Though backlash to their pivot came, Tractor Supply seemed to feel confident in its decision to listen to its core audience.
These were simple linguistic choices, but they carried with them considerable power to create deeper emotional connections with the people who matter most to their business. For companies that take a stand, the benefits are clear. They attract employees who are aligned with their mission, and their customers feel like they’re supporting a brand that reflects their own beliefs.
But There’s A Catch
When you align your business with a specific set of values, there will always be trade-offs. As with the Tractor Supply example, you may strengthen your relationship with one group, but irreparably alienate another. We’ve seen this play out with other brands like Bud Light. Last year, their attempt to align with Pride Month sparked backlash from a segment of their customer base. The company faced public scrutiny and consumer boycotts, highlighting the risk of taking a stand without fully accounting for your audience.
It’s not just about public perception, either. When you choose to take a strong stance on a topic, you have to ensure that it’s not just aligned with your values but also with the law. For example, any company’s strategic decisions about DEI have to account for potential legal challenges around anti-discrimination laws.
A wave of lawsuits and the Supreme Court’s recent rulings are making it easier for DEI programs to come under legal scrutiny. On the flip side, there’s been a rise in lawsuits around noncompliance for reasonable workplace accommodations, including Hobby Lobby’s $50,000 disability discrimination settlement. No matter what choice you make, your policies, procedures and language have to be buttoned up to avoid these growing risks.
How To Navigate These Risks Thoughtfully
Here’s the reality: With the rise of younger generations in the workforce, you can’t avoid these difficult conversations. Even as public opinion vacillates on their desire to see brands take public stances, younger generations are increasingly prioritizing companies that align with their values. According to LinkedIn, 87% of Gen-Z said they would quit their job over a disconnect in company values. The days of staying neutral are over.
When you choose to be bold about your beliefs, you need to do your homework on all your key stakeholders. Take internal surveys to understand what’s important to your workforce. Perform detailed analysis to learn what your customer base cares about beyond the narrow scope of your brand. Consult with your communications team to prepare for every possible reaction and establish a decision tree for managing any objection. Finally, and most importantly, ensure your legal counsel signs off on your plan and can detail your risk.
Between the polar opposite choices made by Etsy and Tractor Supply, the decision matrix was likely the same. They each made a calculated decision that reflected their audience’s priorities. Whether you agree with their decision or not, it’s clear they understood who their core stakeholders are and made a choice to stand by them.
Proclaiming your beliefs in business is not without its risks, but choosing to be bold, rather than timid, can deepen loyalty with those who share your values. Rather than maintaining your brand’s status quo by avoiding controversy, you can turn your key customers and team members into raving, loyal fans. If you take a stand strategically, the long-term business results can be sensational.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
