We now live in an era where the mobilization of public opinion—through social media, consumer boycotts or street protests—is a weapon used to pressure corporations, and their leaders, to alter their behavior.
Such behaviour is not new. What’s new is that political parties and even governments are embracing the activist’s rulebook. The current U.S. administration is a case in point, with former activists now occupying official positions within the public bureaucracy and the president applying his executive resources to align firms with his policies.
As a result of this seismic shift, corporate leaders must prepare for an increasingly polarized world where neutrality is often no longer an option, and where the penalties for betting wrong are both economic and personal.
Additionally, targeting influential firms can potentially create a ripple effect that impacts the rest of that sector. This is one of US president favourite tactics, applied to to a variety of fields, from the legal sector to high tech. He knows, as sociologists of organizations know, that what corporations and individuals fear most is making mistakes that leave them on their own. Taking risks, or adopting a political stance, is always better when you are in good company.
Such “groupthink” can explain the plethora of high-tech leaders who attended the inaugration, and joined forces to pledge millions to support P]presidential policies at a recent White House reception. It also explains the stampede by large corporations to water down previously robust DEI commitments to better align with Trump’s anti-woke agenda.
Despite these shifts, executives are not completely powerless:
These tactics are meant to focus on a short term response to a specific crises, but that shouldn’t deflect from the point that all firms have a long-term obligation to act ethically and sustainably – and indeed that activism and activists play a vital role in calling out organisations when they fail to do so. Conflicts with social and political activists are often public, dramatic and happen fast. Everything is weaponized and carries with it high corporate and personal reputational stakes. Because these conflicts are so intensely emotional, they often provoke rushed and mistaken reactions. Keeping a cool head is essential. The only way to ensure a measured response and a positive outcome for you and your firm is through preparation: having clear plans, established protocols, and an expert team that is trained and ready to act.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
