The courage to lead in the era of woke capitalism

It’s been two years since the United Nations issued its “code red for humanity” in the climate crisis and it’s recently become clear that we’re off-track in meeting the 2030 UN Sustainable Development Goals (SDGs). Our own research reveals that employees and younger consumers overwhelmingly expect companies to take public stances on social and environmental issues and want steadfast corporate leadership and advocacy. Yet, the dialogue on Environment, Social and Governance — or ESG — has become deeply politicized, leading some companies to pull back on ESG commitments and communications at a time when urgent action is needed.

Two weeks ago, our Seattle team welcomed clients and communications professionals representing nearly 15 different companies in the Seattle area to an event which explored how organizations can stay true to their purpose and engage stakeholders in these important issues.

I had the pleasure of moderating a discussion with Kate Olsen, North America Lead for Social Impact & Sustainability and Lee Anderson-Brooke, Senior Principal at United Minds, The Weber Shandwick Collective’s global management consultancy, about how companies can demonstrate leadership on social and environmental issues without putting their brand at the middle of a culture war.

Ultimately, there is no question that companies need to help tackle the climate crisis and other issues at the center of the UN Sustainable Development Goals — and employees and other stakeholders expect businesses to speak out on issues of concern to them. Throughout the discussion, Kate and Lee shared several strategies companies can employ to mitigate risk while defining a leadership role and meeting stakeholder expectations:

• Focus on ESG actions and communications that are most material to your company and best demonstrate your corporate values.
• Articulate a clear and comprehensive purpose strategy that details culture, impact, sustainability and philanthropic priorities, with a clear lane for ESG within investor communications.
• Create a social issues framework to guide decision-making about when and how your company will speak out. Operationalize this process across communications and other functions and prepare in advance.
• Use data and AI tools to understand influential narratives surrounding key issues and identify the voices driving them. While the conversations on climate, for example, are highly polarized with echo chambers on both sides, there are opportunities to insert constructive, positive and diverse voices that can successfully engage the “moveable middle”.

There is no doubt that the current narrative around ESG presents challenges that will be further amplified as we enter the 2024 election year. However, companies that prioritize action, collaboration and authentic out-front leadership are likely to come out ahead.

By, Megan Taubeneck, SVP, Social Impact & Sustainability