In one of the most divisive presidential races in recent memory, supporters of both presumptive nominees have taken to social media and other mediums to voice political beliefs. But is publicizing one's political opinion a smart move for CEOs?
Many more are saying yes.
According to a report in the Harvard Business Review, earlier this month, Jonah Peretti, founder and CEO of BuzzFeed, made his opposition of Donald Trump public. He halted an advertising deal with the Republican National Committee valued at $1.3 million, reasoning, "The Trump campaign is directly opposed to the freedoms of our employees in the U.S. and around the world and in some cases, such as his proposed ban on international travel for Muslims, would make it impossible for our employees to do their jobs," he wrote in a memo.
More than ever before, corporate CEOs are taking a public stand on issues that are traditionally left up to politicians, NGO and advocacy groups, according to the report. And, they are speaking out on issues that are not necessarily tied to their companies' bottom lines. Executives such as Apple CEO Tim Cook, Salesforce.com CEO Marc Benioff and Starbucks CEO Howard Schultz are some high-profile examples.
"Regardless of what you think of these issues, it shouldn't surprise us that a CEO's voice can lead to major changes in a state or nationally," reporter Scott Laband recently wrote for Fox Business, according to the report. "CEOs have the ability to direct conversation and wield significant influence. At their best, they are leaders who think strategically, can persuade through direct discussion, networking and exert political influence."
In a survey of 1,027 U.S. adults by global communications firm Weber Shandwick and KRC Research, the American public revealed what they consider the five central pillars of CEO activism, according to the Harvard Business Review.
1. Favorability of CEO activism depends on how closely the issue connects to the company's business. Thirty-eight percent of Americans believe CEOs have an obligation to speak up on controversial issues. However, when the issue at hand does not have to do with the company's primary business, fewer people (20 percent) believed it was a good idea for the CEO to publicly comment.
2. CEO activism influences consumer's buying decisions. While 40 percent of survey respondents said they are more likely to buy from a company if they agree with the CEO's stance on an issue, 45 percent said they are less likely to if they disagree, according to the report.
3. CEO activism could strain employee loyalty. About a quarter of respondents — 26 percent — said they'd feel more loyalty to their organization if their leader took a public stance on an issue, but 19 percent said their loyalty would diminish. Thirty-three percent said their loyalty would not change and 22 percent were undecided, according to the report.
4. The public has a healthy dose of skepticism when it comes to CEO activism. While 38 percent of respondents said CEOs have a responsibility to be vocal about controversial issues, 36 percent said they believe CEO-activists' primary goal for speaking out is "to get media attention," according to the report. The next most popular responses were "to build a CEO's reputation" and "to sell more products or services," indicated by 21 percent of respondents.
5. Millennials are more likely to approve. People ages 18 to 35 are the most likely to approveof CEO activism. They are also most likely to be aware of CEOs who take on controversial issues, to feel favorably toward those who speak out and to buy from the companies whose CEOs they agree with.