The repercussions can be significant when company executives take a stand on social problems. Not only does the firm run the risk of alienating workers, but taking a stand on a contentious issue can affect consumer purchasing behaviors and ultimately the business's image. However, research on corporate social responsibility normally supports the notion that when firms get involved in societal dilemmas, it can positively influence bottom line financial performance.
This article provides guide lines that leaders should consider to increase the odds of success and evaluates the pros and cons of taking a corporate stand on social problems that are sensitive. Particularly, we found that oftentimes it is not the stand a leader takes but rather how that leader takes that stand. Furthermore, we motivate business leaders to comprehend the legal repercussions before taking a stand on a societal issue, to use a tactical approach, and to consider the fragile balance between social activism and fiduciary duty.
PUBLICATION DATE: May 11, 2016 PRODUCT #: BH742-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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