The separation of business and politics has long been considered sacrosanct. While companies lobby to influence industry and legislative issues, at a macro policy level they generally aspire to be nonpartisan.
Why? Because political bias can alienate employees and customers alike, and in extreme cases can affect the favourability of the regulatory environment and a company’s licence to operate. What’s more, an outspoken opinion can set an expectation that lasts a lifetime in the digital age.
Against this context of political neutrality, we’ve seen the rise of corporate values. These principles have become as entrenched as a corporate religion, a code that governs behaviour, culture and the norms by which companies operate.
Values generate followers and attract customers and talent, with employees accepting lower salaries or fewer benefits in exchange for a brand they identify with. But organisations that profit from their values will pay a high price if they fall short on their promises. It’s no surprise that businesses have remained conspicuously nonpartisan for years, but with political ideologies becoming increasingly polarised, the question is whether or not it’s possible, or even desirable, to remain apolitical?
We’re witnessing a shift towards ‘un-corporate communications’ where leaders are willing to speak out to protect their brand’s core values. In the US we’ve seen a backlash against President Trump’s ‘travel ban’. Tech giants have become a ‘digital resistance’, defending not just the free movement of labour they need to operate, but the liberal democratic values their employees align with. Across the pond, Brexit may have been the first political issue to coax leaders off the fence in decades. Such actions are undeniably political and deeply aligned to the values of the companies involved.
We’re now entering uncharted territory. In this polarised political environment, remaining in the neutral zone is almost impossible for companies that trade on their values as an intrinsic part of their operating model. Leaders need to decide where their company stands on the most critical issues, and identify the lines that cannot be crossed.
The days of corporate neutrality are numbered – it’s time for companies to stand up and be counted.
