Political outrage looms over businesses
Business leaders hoping late summer would offer a break from mounting political and social pressures have had a rude awakening.
Two lethal shootings and a third attempt at Walmart stores put the retailer back into the spotlight on gun rights. Exercise companies Soulcycle and Equinox worked to fend off a boycott triggered by investor Steve Ross’ support for President Donald Trump. Les Wexner, CEO of Victoria’s Secret’s Columbusbased parent company L Brands, tried again to distance the company from alleged sex trafficker Jeffrey Epstein, as well as models’ complaints of harassment.
Since 2017, when business leaders were pressured to step down from President Donald Trump’s advisory council, companies have found it increasingly hard to separate business from politics. Calls for action have become a quagmire for executives, and there’s no clear consensus on how to respond.
“The more people Wexner look to businesses to make a political statement, the more dangerous it is for businesses not to make a political statement,” said Kabrina Chang, who teaches business ethics at Boston University’s Questrom School of Business. “For better or worse, society is looking to business more than ever.”
Employers are just as likely to face pressure from their own employees. A Walmart employee was locked out of corporate email and chat services last week after he tried to organize a protest over gun sales. Twitter, Amazon, and Alphabet’s Youtube and Google have all bowed to pressure from their employees or customers to block or limit content or contracts that are considered offensive.
It’s not always clear what if anything a company should do. Sometimes, the best option is to try to wait it out, Boston University’s Chang said. Most controversies are short-lived, and there’s no way to please everyone.
Stanford research shows that whatever they do, companies should proceed with caution, because people are more likely to stop buying over positions they disagree with than company positions they support.