Brand Reputation: Risks and Rewards of Taking a Stand

Nicole Gagnon, Senior Advisor, Stern Strategy GroupIn today’s highly politicized world, should brands and thought leaders take a stance on social issues, or is that reputational and business suicide? The past couple months have seen companies like Uber, Starbucks, Google and Nordstrom enter the fray. Some brand reputations benefited; some suffered. Marketing and PR pros are looking for patterns to emerge, but unfortunately, there is no right or wrong answer.Many of us grew up learning that, in polite conversation, you should veer away from three topics: sports, religion and politics. The thinking is because people have strong convictions about these topics, you must avoid them to avoid conflict. But isn’t the fact that we have strong convictions – the fact that these topics are so important to us – the same reason why we should talk about them? Maybe.We’ve also long heard that politics has no place in business. Over the years, I’ve counseled many business leaders on whether and how they might be positioned on issues that matter to their companies. Social and political trends drive the big scale market changes, global economics and changing regulations that have huge impacts on businesses and organizations. So how can they avoid having a strategy and thoughts on these issues?Speaking out on social and political issues can be a risky path. But it can be a risk worth taking.Here are some brand reputation guiding principles to consider:No matter what, be true to your (organization’s) self. Stand by your values and your message. For example, if you are a thought leader known for your ideas on leadership, it may be relevant for you to share your perspective on whether a business leader can translate corporate experience to a political office. But if you are an expert on IT software, your audience may not understand or appreciate why you suddenly start blogging about gun rights.Consider your purpose. Why do you want to speak out? Is the issue impacting your employees and they need you to be a voice for them? Does the topic resonate with your customers and relate to why they work with you? Is it connected to your organization’s mission? Those are all good reasons to take a stance. You need to ask: Is this a fight you want to get into? Are you adding value to the debate or just letting off steam?Don’t be negative. I’ve long been the black sheep in my family when it comes to politics, going against the grain and what my parents and siblings believe. It’s been a hard lesson, but we’ve learned to share our beliefs with respect and love. Businesses and thought leaders who speak out on an issue most effectively do it with positive intentions, to add perspective, share new value, or offer an authentic and personal response to something going on in the world.Know your risk. If you are considering taking a moral stance as a pure sales tactic, think twice. Companies seen as looking to capitalize on political trends can suffer. By speaking out on controversial issues, you will get more attention. That may be a good thing. But understand that same spotlight also means more scrutiny. So be prepared to follow through; back it up and walk the talk.This study says 81 percent of Americans believe corporations should take action to address important issues facing society, and 88 percent believe corporations have the power to influence social change. Ultimately, you should take a stance if the issue is close to your heart and makes sense for your business. You may alienate some, but if speaking up brings you closer to your mission, that should be okay in the long term. Ultimately, being aligned and vocal on a social issue can help you define and strengthen your true self and connect more deeply with your core audience.[author]About the Author: Nicole has been helping the firm's clients realize their dreams for more than 18 years. As senior advisor, she is relied upon for her direct counsel, out-of-the-box thinking and creative programming. Her greatest joy is seeing others – clients, colleagues and peers alike – get to that "aha" moment.[/author]