Roundtable Discussion on CEO Responsibilities and Communication on Social Issues

Disney CEO Bob Chapek

Corporate Executive Officers have a more difficult job these days when it comes to decisions and communication — internally and publicly — when it comes to social issues. They aren’t often allowed to disassociate themselves and the brand from what personally matters to stakeholders to where they can say something along the lines of ‘business is business and personal is personal.’

Holding tight to that false belief has become dangerous and reckless leadership.

“We have to work with the world as it is, not how we want it to be.”

Jim Crickell

This week an article was published that again pointed to the reality where a CEO and organization didn’t know what they should have known when it comes to judgment and leadership communication on an issue of great importance to segment of their stakeholders.

“Disney CEO apologizes to employees for response to Florida 'Don't Say Gay' bill,” was written by reporter Daniel Arkin and published at NBCNews.com.

Communication Intelligence examines this challenge in a roundtable discussion, examining what CEOs have to learn and fully understand to navigate the treacherous waters when it comes to organizational, media and societal expectations.

In brief, the Disney story, generally speaking, is not that different from other organizational errors and communication to problems. Low social awareness, real or perceived weakness or absence of empathy and blind spots as to how they are conducting business and responding to hurt and pain.

In this particular case, Disney didn’t have a good lay of the land and how employees, media, social media, advocate groups and some of the public would experience its decision-making, be impacted by it, feel because of it and interpret the messages, communicated and inferred.

“‘You needed me to be a stronger ally in the fight for equal rights and I let you down. I am sorry," Chapek said in the letter, which was published on Disney's website.’”

He went on to say, “We are hard at work creating a new framework for our political giving that will ensure our advocacy better reflects our values.”

"I am committed to this work and to you all, and will continue to engage with the LGBTQ+ community so that I can become a better ally," he added. "You will hear more about our progress in the coming weeks." Chapek addressed that criticism at the company's annual shareholder meeting, saying:

"I know that many are upset that we did not speak out against the bill.."

“We were opposed to the bill from the outset, but we chose not to take a public position on it because we thought we could be more effective working behind the scenes, engaging directly with lawmakers on both sides of the aisle," Chapek added.

"We denounce any legislation that infringes on your fundamental human rights. You deserve to be safe, respected, and able to live your lives as your whole selves free from discrimination," Walt Disney Animation Studios said in part.

Communication Intelligence Roundtable

Conversing in this 3-question discussion today will be Drew Plant, a public relations strategist at Plant Communications, Karenthia A. Barber, a business consultant, senior advisor and coach at her firm, Karenthia A. Barber, and Eric Pliner, CEO of YSC Consulting and author of Difficult Decisions.

Drew Plant

Communication Intelligence: CEOs have learned the painful way how stakeholders expect them to be mouthpieces for what they see as moral obligations. How are CEOs and organizations not yet recognizing the risk and demands of the culture as we know it now?

Plant: Millennials were already helping morph the workforce to focus as much on corporate conscience as on corporate culture. Add to that the two years the pandemic has given the rest of us to start questioning our work lives, including the role an employer plays, especially in tense and divided times.

Savvy leaders and their organizations have been following this trend. Some may not adjust but (for) benefit of the doubt, many want to and are, though they may stumble along the way.

How they handle the stumble is the test, not being infallible.

Before and now, effective leaders surround themselves with a diversity of advisors, who each should be able to call bullsh*t. If your workforce and advisors look like the population at large, someone near should be able to help sound out varied perspectives.

Barber: Corporate activism is not new and is expected to continue yet it has been highlighted because of the increased polarization of the country and the current social and political climate.

The consequences for businesses that speak up too early, too often or alienate or offend too many people are real and any CEO who doesn’t understand the importance of leading in a culturally and politically responsible manner way will experience major challenges.

Pliner: Our ethical context has changed. It’s no longer possible to be apolitical. Where CEOs and other leaders could historically avoid engaging in open discussion of difficult content as a way of avoiding controversy, many stakeholders now expect their leaders to come down on one side or another, and interpret silence as a perspective.

Where involvement in political matters is often something that businesses prefer to do behind closed doors — via candidate contributions or influencing legislation — a shift in our ethical context over the past few years now demands that leaders speak out publicly about issues of importance to their employees, customers, investors, shareholders and communities.

It’s not enough to just speak out – they must also demonstrate clear actions that align to their public statements or they will be excoriated as hypocritical.

Much of this shift is a function of concerted efforts attached to organizing by the Movement for Black Lives following the murder of George Floyd in Minneapolis in May of 2020.

Karenthia A. Barber

Communication Intelligence: When changes in actions and apologies come, how are they seen -- as easy mistakes to be made or as CEOs and organizations getting caught red handed and doing the obligatory apology and toeing the line? And does that matter to groups if they get what they expect in the end?

Plant: If misspeaking or miss-stepping in a foolhardy or headstrong way, a CEO or other leader is less likely to be forgiven. On the flip side, if a CEO genuinely is trying to get it right, flubs things, but then quickly comes back out to own their misstep, apologize, perhaps walk (their) stakeholders through what happened, and make things right, (they’re) far more likely to be forgiven.

Increasingly, employees do ultimately value hearing what they need to. They desire a more human workplace and they'll most times return that sentiment when needed, if the CEO in question has endeavored over time to build trust and confidence and rapport.

Barber: Employees and consumers today seek out, respect, and remain with companies that take a stand on issues of importance to them. There will always be some who may disagree, but leaders need to stand up for their company’s values.

The most important thing a company should keep in mind when deciding whether to take up a political position or get involved in a controversial social issue is to determine if the position is in line with the company’s core values and brand identity. Thus, if a company claims to stand for a certain principle or value the actions of the CEO must be consistent with that.

Eric Pliner, CEO of YSC Consulting

Communication Intelligence: What is a better preventive strategy against conflicts regarding social issues when it comes to actions and executive communication?

Plant: Leaders should have and consult communications plans, including crisis plans, before speaking on controversial happenings. In this case, (Governor Ron) DeSantis and his ilk were heralding the coming of this legislation, so time was available to craft messaging and soft-sound it before going out with anything.

Too, with corporate America embracing DEI (Diversity Equity and Inclusion) efforts with new fervor, they surely realize their workforce will increasingly reflect overall diversity. That should mean they are recognizing and including a broader audience.

And, again, if a CEO or other leaders have built and banked trust and respect along the way, it better enables them to navigate rough waters that may occur later.

Barber: All corporate communication should be aligned with the stated corporate values. The government relations, marketing and Diversity and Inclusion team should be tasked with proactively advising the CEO on social-political issues that have potential impact on the company, its employees and stakeholders.

It's better to come out immediately with a statement and demonstrate appropriate commitment to the issue and identifying that the position is in alignment with your corporate values. In addition, it is important to identify your next steps.

Although many companies came out fast, reacting after George Floyd’s murder, many were also heavily criticized for saying the right thing fast — but lacked action beyond the statements.

Pliner: Leaders that want to avoid having to backtrack or apologize to important stakeholders should let go of the notion of trying to keep everyone happy, and instead focus on the relationship among their personal morals, the ethical context, and their role responsibilities to different stakeholders.

Had Bob Chapek done so from the beginning, he and the Disney team would’ve gotten to this outcome faster and without angering key stakeholders.