Article
Wall Street Journal

The Right and Wrong Way to Do ‘CEO Activism’

By: Aaron K Chatterji and Michael W. Toffel

Format:Print

Abstract

CEO activism—where leaders take public stands on controversial social and political issues that aren’t related to their company’s bottom line—has become increasingly common. CEO activism has attracted favorable media attention, but has also resulted in backlash and public scorn. Based on interviews with CEOs and other organizational leaders, this article provides six recommendations on when to engage in CEO activism and how to do so more effectively. Leaders should consider taking public stands when they are motivated by their employees, on issues that align with corporate values, and when the issue is live. To speak out effectively, leaders should set up a rapid-response team, prepare for backlash, and enlist the help of their corporate-communications professionals.