Silence, A Statement: The Business Cost Of Not Taking A Stand On Social Issues

Commenting on a social issue which is peripheral to core business activities is always a risk for any organisation or a business leader. The communication, or the lack of it, may result in a group of offended stakeholders, which, in turn, may affect the core business. Many leaders prefer to remain silent unless a social issue directly affects their core business. However, an organisation’s silence on a prominent social issue can also be a risky (non)action, especially when it is highly visible, e.g., when competitors are expressing their views. Recent research by Marco Shaojun Qin, Xueming Luo, Todd Schifeling and Yang Wang shows how the stakeholders, irrespective of their ideological position, may assume an organisation’s silence indicates support for the other side.1 This can have a negative impact on the organisation. So, how can top management and CEOs navigate the two-edged sword of communication on salient social issues? The research suggests that leaders should clearly state their positions on prominent social issues rather than remain silent