CEO activism: a must in sustainable marketing?
We are living in the digital era, where it is no longer possible to hide behind office walls. The pressure to tackle environmental and social issues is on the rise. As stakeholders are demanding more accountability from the corporate world, CEOs are expected to take the lead in addressing these concerns, with a clear public stand backed up by an action plan. Let’s take a closer look at the concept of CEO activism and its role in sustainable marketing.
Silence is not an option
CEO’s views = company’s views?
47% of U.S. adults associate CEOs’ social, environmental and political views with those of the company (Forrester)
68% believe that CEOs are the best positioned to drive real change (Morning Consult)
Is it possible to stay silent?
64% of people globally expect CEOs to lead social change when governments fail to do so (Edelman)
56% do not respect CEOs that stand aside (Edelman)
How about recruitment?
60% of jobseekers worldwide expect CEOs to speak publicly about controversial issues they care about (Edelman)
40% of Millenials would stay more loyal to a company with an activist CEO (Weber Shandwick)
Examples of CEO activism
Edward Stack, CEO of Dick’s Sporting Goods, taking on the gun lobby
The context: A mass shooting took place at a high school in Parkland, Florida, leaving 17 dead and 17 injured. It then appeared that the Parkland shooter had bought a shotgun at a Dick’s store, even though a gun from another store was used in the attack.
The issue: Insufficient gun control laws in the U.S. lead to firearms being the leading cause of death for children and teens.
The stand:
“We did everything by the book that we were supposed to do, from a legal standpoint, we followed everything we were supposed to do. And somehow this kid was still able to buy a gun from us.”
Edward Stack
The action: Stack banned the sale of assault-style guns and high-capacity magazines, as well as raised the minimum age for buying any kind of weapon to 21. “I don’t care what the financial implication is.”
The impact: Other major retailers such as Walmart and Fred Meyer adopted the same policies concerning gun sales. Levi Strauss & Co, RXR Reality and TOMS have signed a joint open letter with Dick’s Sporting Goods to push for better gun control at the legislative level. A new bill on background checks was passed, although there is still an on-going debate between the two major parties about other aspects of gun control.
Rose Marcario, CEO of Patagonia, advocating for public lands protection
The context: Several national monuments, including Bears Ears National Monument in southern Utah, were at risk of abolishing or downsizing due to political plans to convert some of the public lands for commercial use.
The issue: Certain political decisions are not fully transparent and disregard public opinion. The decision to abolish Bears Ears National Monument ignored over one million comments in support of preserving it.
The stand:
“Despite months of rhetoric claiming his respect for Teddy Roosevelt’s legacy of public lands protection, Secretary Zinke revealed he is just another politician looking to exploit and develop America’s public lands at the expense of our children and grandchildren […] If the president decides to usurp Congress’s authority and shrink the boundaries on his own, Patagonia will take legal action to defend our public lands. We hope everyone who cares about public lands will continue to let their voices be heard.”
Rose Marcario, CEO of Patagonia
The action: Patagonia spent around $700,000 on TV and radio ads campaigning for the preservation of the public lands. It was the first time in 45 years in business that the company launched a TV ad.
“Public lands are under threat now more than ever because you have a few self-serving politicians who want to sell them off and make money. Behind the politicians are the energy companies and the big corporations that want to use up those national resources. It’s just greed – this belongs to us – this belongs to all of the people in America. It’s our heritage. I hope my kids and grandkids will have the same experiences that I had.”
Yvon Chouinard, Founder of Patagonia
The impact: 350 companies including The North Face, KEEN, REI and others joined Patagonia’s movement. Although the campaign did not influence then-President Trump, the voices of the activists were eventually heard. President Biden reversed the cuts imposed by his predecessor, and the lands were restored to the public.
Kevin Johnson, CEO of Starbucks, acting on a racial-bias incident
The context: Two black men, who hadn’t bought anything from Starbucks, were denied using the restroom and arrested by the police for further investigation. A similar story happened to a black man at another Starbucks outlet, where a white man was given the code without purchasing anything, while the black man wasn’t. This has sparked a wave of protests calling to boycott Starbucks.
The issue: People still had fresh memories of the #BlackLivesMatter movement, which had raised the issue of racial bias, especially when it comes to interacting with the police.
“Anytime you call the police to confront black men, it could be a life-or-death situation. That's what people are reacting to.”
Calvin Alexander Ramsey
The stand:
"We’re committed to being a part of the solution. Closing our stores for racial bias training is just one step in a journey that requires dedication from every level of our company and partnerships in our local communities."
Kevin Johnson, CEO of Starbucks
The action: Starbucks closed more than 8,000 stores in the U.S. to provide racial-bias training to 175,000 employees. The company also added inclusion and diversity education to its staff onboarding procedure.
The impact: It is hard to estimate whether Starbucks’ CEO’s response was perceived as a genuine commitment to change, or as a crisis PR response. Reputation management expert Eric Schiffer notes, “People are already sceptical. They discount a lot of words.”
How to do it right
CEO activism is a double-edged sword. If done right, it can resonate well with the views of the stakeholders and improve the company’s image and reputation. If not, it can lead to backlash from those who disagree with a CEO's stance, accusations of opportunism or virtue signalling.
Authenticity, genuine commitment and aligning actions with words are essential to avoid accusations of greenwashing or insincerity.
The formula of good CEO activism is:
Make it relevant.
Make it personal.
Make it impactful.
Commit.
Continue.
Conclusion
CEO activism is a growing trend that allows company leaders to drive positive change and preserve or improve their corporate reputation. However, CEOs must navigate the risks and challenges associated with authenticity and alignment of actions with their stated values, and not simply see advocacy as a crisis PR tool. By carefully balancing risks and opportunities, CEO activism can be a powerful force for driving meaningful change, and a great sustainable marketing asset to the company.
