How should companies handle politics?

How should companies handle politics? A question on many directors‘ minds amid a tense and polarised political environment. 

From the moment news began to break of the Trump assassination attempt, a new, bright spotlight fell on the divided political world both inside and outside the US – fuelled by animosity and defined by its strong rhetoric. 

How businesses handle this gulf of opinion differs for each organisation. In the face of this uncertainty, boards and other corporate leaders are left to ponder if they should take any action or make a statement to stakeholders.

And if so, what will they say?

Almost the entire world will be aware that a lone gunman attempted to assassinate former US President and 2024 contender Donald Trump at a rally in Pennsylvania last weekend. While he escaped with only an ear wound, two people died: the shooter and a rally attendee.

Moreover, the world will be aware of the attack’s aftermath: a shift in tone from the leadership on both sides of the heated US election away from animosity and toward calls for unity. Despite that, the vast American media engine has repeatedly seen blame games that only add to the divide. 

It’s a reminder that although most corporate leaders will want nothing to do with today’s polarised political environment, they may have to address it anyway. If it’s not the US election, it could be the UK or EU elections or even just a reaction to one of the world’s many geopolitical crises.

Boards have a massive responsibility to all the company’s stakeholders, including employees, consumers and management. It’s a board’s job to align corporate culture, employee/consumer sentiment and strategy in the best way possible. 

To turn a blind eye to political polarisation – especially if it’s clear that stakeholders want a comment on it – would be a core governance failure.

There’s no single correct answer, but this short list of questions should help you if you’re lost:

It’s the first question any board should ask. Sometimes, the company’s comments will be welcome. Others, they may be seen as unnecessary. This is the balance you need to get right, and it will always depend on the situation.

Something sudden and shocking like the Trump assassination attempt is more likely to require a response, especially from the boards of American companies, where supporters of both election candidates may work side by side. 

The same is true for international crises such as the wars in Ukraine or Gaza. It comes down to how the development affects your employees or consumers.

It’s one thing to make a statement; it’s another to decide what the statement will say. Will it adopt a stance? How strong will it be? 

Usually, companies that say something approach politics from a neutral standpoint or one that calls for de-escalation, dialogue, or similar, but it’s up to you.

This brings us to stakeholder engagement, a core part of a director’s skillset. 

When it comes to addressing political differences, it’s essential to ensure you make your comments through the appropriate channels. This needs planning and follow-through. You can’t trust a board or management statement to filter out from a quiet source. 

If you’re communicating with employees, call a meeting or organise an internal comms communique. If you’re communicating with consumers, issue a press release.

Unfortunately, corporate leaders can’t stop once a statement is released. You’re dealing with politics, which means opinions, which means feedback is likely on anything your company says. 

Because of that, you should consider how you’ll handle that feedback. Do stakeholders know whom to direct it to? Does that person have the resources to handle feedback? Do employees have somewhere safe within the company to voice their feelings if political events have really affected them?

We’re shifting to the long-term lens here, but it often helps to have a company-wide policy on political discussion in place to address future events. 

The good news is that the types of policies differ enormously across organisations, and many of them work, so you have options. It’s about finding what’s best for you. 

If you have a policy around politics, it will often centre on what discussions your company encourages or discourages in the workplace. 

Don’t forget that involving your employees in this process could be hugely beneficial. They’re the ones who the policy will affect, and they know better than anyone where their threshold for comfort will lie. Many companies ask employees to develop the policy themselves, and management/ the board need only approve it or suggest amendments.

Many directors would naturally hope that politics stays separate from their business strategy, but this is rarely the case in today’s heated world. Eventually, something will come up that you need to address. 

The important thing is to approach it calmly, constructively, and with agreement from all stakeholders.