Should you get political as a business owner?
It can be hard to find your way through the intersection of business and politics. One wrong move could send you crashing down, but if you make it to the other side, you’ll get a standing ovation from your fans. More and more business leaders feel like they have to speak out about social and political issues, which means their brands are no longer just watching but also taking part in public discourse.
This guide is meant to help you, as a business owner, understand how hard this choice is. We will talk about what it means for a business to “get political,” weigh the possible benefits against the serious risks, and give you a way to make a decision that fits with your brand’s goals and values. By the end, you’ll know if it’s the right move for your business to take a political stance and how to do so in a smart way if you choose to do so.
What it means for a business to “get political”
It’s not always about supporting a certain candidate or party when we say a business is “getting political.” The political environment for a business is a big area that includes a lot of different actions and ways of talking to people. The first step to making an informed choice is to understand this range..
There are many ways for a business to take a political stance:
- Public Statements: Making official statements about social issues, laws, or what the government is doing. A tweet in support of a social movement or a press release against a new policy could be an example of this.
- Financial Contributions: Giving money from a business to political campaigns, parties, or Political Action Committees (PACs).
- Lobbying: Lobbying is when a business tries to change government policy and laws to benefit its own interests or values.
- Helping Causes: Working with and giving money or other resources to non-profits and advocacy groups that focus on certain social or political issues.
- Product and Marketing Alignment: Making products or marketing campaigns that show a certain point of view, like Nike’s campaign with Colin Kaepernick.
- Internal Policies: Putting in place workplace rules that show a political or social stance, like giving employees more time off for parental leave or encouraging them to get involved in politics.
There is a different level of risk and visibility for each of these actions. It’s very important to know what “getting political” means for your business.
The Good Side: Why Companies Get Involved in Politics
Talking about politics can be very good for a business, turning values into a strong asset. Here are the main reasons why you should take a stand.
Getting Customers Who Think Like You
More and more, people are choosing what to buy based on a brand’s values. A study by Sprout Social in 2022 found that 71% of people think brands should speak out about and raise awareness of sensitive issues. When your business backs a cause in public, it shows the market what you stand for. This can draw in a loyal group of customers who share those beliefs, which can create a strong bond that goes beyond a simple sale. These customers don’t just buy your product; they believe in what your brand stands for.
Creating Brand Loyalty That Can’t Be Broken
Standing up for something you really care about can make people very loyal. When customers see a brand that shares their values, it makes them trust the brand and feel connected to it. This loyalty leads to repeat business and strong word-of-mouth advertising. Customers become advocates, defending your brand online and telling their friends about it. This kind of earned media is priceless and can help keep your brand safe during hard times.
Making Your Brand Stand Out in a Crowded Market
In a market that is already full, having a strong opinion can set you apart the most. When products and services are similar, a consumer’s choice may come down to the values of the brand. Taking a clear position gives your brand a unique personality and an interesting story. This sets you apart from competitors who choose to stay quiet and lets you find a unique place in the market.
The Bad Part: The Dangers of Getting Involved in Politics
The risks of getting involved in politics are just as big as the rewards. A miscalculated move can have lasting negative consequences.
Making customers and stakeholders feel unwelcome
The most clear danger is alienation. For every customer you attract with a political stance, you risk alienating another who holds an opposing view. This can lead to a direct loss of revenue and market share. The effects go beyond customers to include employees, investors, and business partners who may not agree with what your company stands for. This friction between people inside and outside the company can hurt morale and stop work from getting done.
Dealing with Boycotts and Bad Press
In our world of constant connection, a political statement can quickly become popular for the wrong reasons. People may boycott you and spread bad news about you if they think your stance is insincere, poorly thought out, or just not popular. These reactions are even worse on social media, and a brand’s reputation can be ruined in just a few hours. Even after the initial outrage dies down, the effects of a political crisis can last for years, hurting sales and how people see your brand.
The Difficulty of Dealing with Complicated Problems
Political and social problems are not often easy. They are often nuanced and deeply rooted in complex histories. If a business doesn’t fully understand these waters before getting in, it could look like it doesn’t know what it’s doing or is trying to take advantage of the situation. Also, public opinion can change, and what is popular today might not be popular tomorrow. The political instability scale can change quickly, which makes it hard for a business to keep a consistent and real position over time.
Case Studies: Gaining Insight from Peers
Examining how other companies have navigated political waters provides valuable lessons.
Patagonia and Environmental Activism: A Success
The whole idea behind Patagonia’s brand is being good to the environment. The company fights for environmental protection, gives 1% of its sales to environmental causes, and has even sued the government to protect public lands. This unwavering dedication has created a very loyal customer base that sees their purchases as a way to help a bigger cause. Patagonia’s political stance is authentic because it is deeply woven into its mission, products, and corporate culture.
Pepsi and the Kendall Jenner Ad: A Failure
In 2017, Pepsi ran an ad in which Kendall Jenner joined a protest and gave a police officer a can of soda, which seemed to settle the argument. Many people were angry with the ad because it made light of important social justice movements like Black Lives Matter. People thought it was a cynical attempt to use a powerful social movement for business purposes. Pepsi quickly took down the ad and said sorry, but it hurt its brand a lot. The main point is that being real is a must; audiences can tell when someone is not being honest from a mile away.
A Framework for Thoughtful Engagement
If you think that taking a stand is the right thing for your business, you need to do it carefully and with a plan. Follow these steps to help you get started.
1. Understand your audience and your values
Listen before you say anything. Know what your target audience believes and values. What matters to them? Get information by using surveys, listening to social media, and getting direct feedback. At the same time, take a close look at your company’s core values. Your position should be a natural extension of your brand’s mission, not a response to something that is popular right now. If a political position isn’t real, it won’t resonate.
2. Pick Your Problems Smartly
You don’t need to say something about every issue. You really shouldn’t. Choose a few problems that really affect your business. For example, an environmentally friendly B Corp has a natural platform to talk about environmental policy. A tech company might work on things like data privacy or teaching people how to use computers. Focusing your efforts makes your engagement more credible and impactful.
3. Teach before you speak out
Give value to your platform. Instead of just saying what you think, teach your audience about how complicated the issue is. Share resources, have experts talk about their points of view, and show different points of view. You can build trust and show that you really care about the cause by making your brand a reliable source of information instead of just jumping on the bandwagon.
4. Help causes, not just candidates
Supporting non-profit groups that are doing the work on the ground is one of the safest and most effective ways to get involved. You can give a part of your profits, let employees volunteer for pay, or use your marketing channels to spread the word. This lets your business help with a problem without getting involved in partisan politics or supporting specific politicians. This method often lowers the risk of losing customers who have different political views.
How to Deal with the Relationship Between Business and Government
It’s also important to know how business and government are supposed to work together. This goes beyond public statements and enters the realm of PESTEL analysis (Political, Economic, Social, Technological, Environmental, Legal). The political part of a PESTEL analysis looks at how government policies, political instability, and dependence on government can affect your business.
Political instability can change the rules, make people less confident in the economy, and mess up supply chains. For instance, a business that relies a lot on government contracts is at risk when political power changes. In today’s political climate, you need to be proactive about managing risks. This means diversifying your customer base and keeping up with possible changes in the law.
Making Your Final Decision
Should your business get involved in politics? There is no one answer that works for everyone. The decision depends on your brand identity, your audience, your tolerance for risk, and the authenticity of your commitment.
A businessman who is also a politician might have a different point of view, but running a business and running a country are two very different things. Also, you need a special set of skills to run a business that gets involved in politics. It needs careful thought, strategic planning, and a thorough understanding of what might happen.
Be ready for people to see your silence as a stance if you choose to stay quiet. If you decide to speak out, do it from a place of honesty and with a clear plan. Think about the pros and cons carefully, learn from what other people have done right and wrong, and make a choice that you can live with no matter what happens.
Business Kiwi is an expert at helping business owners make tough strategic choices like this one. If you’re having trouble figuring out what your brand should do in today’s political climate, our experts can help you make an informed decision that fits with your long-term goals.
