The American people have chosen. A red wave swept the country, with electoral results comparable to the Reagan victory 40 years ago.
The essential question for business at this time of change is ‘Quo Vadis?’ (Where to go?)
Four years ago, the world was staggering through the horrors of COVID-19, with enforced isolation and high death rates causing severe alienation in the work force. During the pandemic, George Floyd was killed by a police officer in Minneapolis, prompting protests and civil unrest and employee pressure to remedy decades of injustice. Rising temperatures and unusual climate events accelerated environmental policies. Sino-American trade tensions forced companies to adapt supply chains, while the Russian invasion of Ukraine caused many corporations to pull out of Russia.
CEOs spoke out publicly on these issues to employees, consumers, and other stakeholders hungry for leadership. Business was filling a competence void left by Government. Trust moved local, to My Employer’s CEO, with ‘information from your employer’ becoming the most important source of objective information.
Fast-forward to 2023 and, as political momentum gathered, CEOs shifted gears, increasingly keeping their heads down, believing staying out of the fray to be a less risky proposition. Some companies backed away from DEI commitments, affected by pressure from politicians and activists including Robbie Starbuck. The vast majority held firm.
Now the Trump team is promising a fundamental shift in direction for Government. Much of the Trump platform will be welcomed by business, specifically deregulation, lower taxes, and a pro-growth agenda. But there will be areas of contention between business and the new administration, such as trade and tariffs. Without question, handling employee pressure is going to take up far more bandwidth for executive teams.
The election was all about the economy. This is the time when business can shine, with well-paid jobs and affordable products that provide a better quality of life. There is a place in the middle for business to operate with values and commercial clarity. Action on global matters can’t happen without business leadership but must be done without political ideology as an overlay.
This is the leadership opportunity of the moment; to show progress on problems that affect your business or industry directly, including advocating for policies that enhance company performance while building a strong culture. The decision to be made, therefore, is not whether to speak publicly on issues, but when. That’s just good business — and it’s what your employees and customers will certainly demand.
Richard Edelman is CEO.
