Article | Wall Street Journal

The Right and Wrong Way To Do ‘CEO Activism’

by Aaron K Chatterji and Michael W. Toffel

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.

Keywords: Leadership; Social Issues; Communication Strategy; Performance Effectiveness;

Format: Print Find at Harvard Read Now

Citation:

Chatterji, Aaron K., and Michael W. Toffel. "The Right and Wrong Way To Do ‘CEO Activism’." Wall Street Journal (February 22, 2019).

About the Author

Photo
Michael W. Toffel
Senator John Heinz Professor of Environmental Management
Technology and Operations Management

View Profile »
View Publications »

 
Campus Map
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→ Map & Directions
Copyright © President & Fellows of Harvard College