The world is in the middle of its most important political year in decades, with more than 60 elections involving half of the citizens on the earth. There are counter-vailing signals from the populace, with the far Right gaining seats in the European Parliament, while the Left won in both France and the UK.
Anti-corporate rhetoric is rising on both sides of the political divide, with business being blamed by populists for food price inflation, loss of high-paid jobs to globalization, and the geopolitical perils of free trade. The new activism is now nationalistic and muscular in its opposition to immigration and regulation.
What should business do in this context? The strategy must be Policy Not Politics. Business has legitimate interests to defend. It has a unique ability to deliver on its commitments, while also serving as an influential and diplomatic voice in bridging the divide created by the rise in vitriolic hyper-partisan rhetoric. It also has stakeholders with elevated expectations, whether employees or consumers. In short, this is not the time to put your head down and wait for the storm to pass. Here are issues that are core to business and therefore safe to advocate:
- On trade, make the case for jobs from exports. Recognize the mutual benefit in competitive advantage, with lower wage nations able to give consumers a better product at a fair price. Support the in-sourcing of supply chain when a matter of economic and national security.
- On inflation, explain the disruption of supply chain during COVID and the ensuing geo-political forces that have changed trade flows. Fight back populist notions, such as price controls (five percent maximum rise in apartment rental prices proposed last week in the U.S.).
- On sustainability, assure stakeholders that initiatives are based on both smart business - rising temperatures and more frequent climate events (floods, hurricanes) have cost and revenue implications – and a responsibility to the communities which house your operations.
- On diversity, equity, and inclusion, stay true to your commitments and the goal of a representative workforce able to serve its future customer base with excellence. Listen to critics and consider modifying programs but stick to your values.
- On the workplace, reassure employees by committing to upskilling and accelerating tech transfer, so that job loss from artificial intelligence is not the number one fear. Continue the progress on pay, closing the gap between blue- and white-collar workers.
How can business manage these issues in the coming months?
- Be a citizen of your community. Encourage your employees to vote by giving them time off to go to the polls. Take an interest in local education, security, and health care.
- Be a safe space - At a time of heightened polarization and political violence, be a unifier – the workplace is where employees trust that they can bring different perspectives and opinions without trepidation.
- Be a source of truth - The state of misinformation will continue to intensify in the coming months. Employers must use their internal channels, and their position as the most trusted source of information, to share the facts.
- Be a beacon of hope - CEOs need to show people the possibility of the future, so that they are willing to trust innovation and embrace change. Given that trust is local, highest in my CEO and my Employer, companies have a special responsibility to engender optimism.
Business is the most trusted institution because it is the most effective, delivering performance through a combination of competence and ethics. In this period of political instability, Business can do much to calm the waters. It has to address these issues directly and transparently with stakeholders, not just lobby in Washington. And Business must show that it’s acting in the interest of the public and for the betterment of society. As Shakespeare wrote in Henry V, “Once more unto the breach, dear friends…The Game’s afoot, follow your spirit.”