Evaluating The Risks And Benefits Of Public Stances
August 8, 2024
Evaluating The Risks And Benefits Of Public Stances
According to a Risk Management Magazine article by Linda Thomas Brooks, companies must carefully evaluate the risks and benefits of public stances on issues. Brooks cites a 2023 Bentley-Gallup report that reveals 41% of Americans believe businesses should speak out on current events, a 7% decline from 2022. Younger Americans, particularly those aged 18-29, are more supportive of companies taking public positions, creating tension between them and older business executives.
When deciding whether to make a public statement, Brooks suggests that organizations must first assess if doing so is necessary. It’s crucial to involve diverse perspectives in decision-making, including senior leadership and communications staff.
Some companies use scorecards or frameworks to evaluate the risks and benefits and guide these decisions. Once a decision is made, choosing the right spokesperson is vital, as well as ensuring the message is authentic and aligns with the company’s voice.
Ethical considerations, such as honesty and transparency, are essential. A PwC survey indicates a significant gap between executives’ perception of consumer trust and the reality, highlighting the importance of ethical behavior.
Organizations must be well-informed before making statements, avoiding misinformation and understanding that new data may require updates to previously stated positions.
Finally, Brooks adds that timing is also critical. Immediate responses are less important than thoughtful, well-informed ones. Companies should prioritize wisdom and timing over speed, ensuring they are fully prepared before making public pronouncements. Engaging the public effectively requires ongoing commitment and responsiveness, rather than hasty or superficial statements.
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