Three Myths Fueling Companies’ Icy Silence on Politics

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In 1963, as the U.S. civil rights movement reached a new peak, most U.S. companies stayed quiet. That changed after events in Birmingham, Alabama. Images of peaceful demonstrators, including children, being attacked by police dogs and high-powered fire hoses shocked the country. Economic boycotts of segregated businesses in and near Birmingham followed. Under pressure from all sides, local business leaders spoke up and pushed city officials to negotiate. That shift helped lead to desegregation commitments.

Companies were not acting as ethical heroes; economic risk clearly mattered. But so did the reality, and the morality, of what was happening in the country’s streets.

Twenty years later, on a global stage, multinational businesses and U.S. academic institutions were drawn into the struggle against apartheid in South Africa, with calls to divest from investments and economic activity with the country. Once again, business was pulled into a societal reckoning, whether it wanted to be or not.

According to the author in the U.S., businesses are in a similar moment today? And how will history, or our future selves, judge the choices we make now?

The deaths and general violence brought tens of thousands of citizens into the streets to demonstrate. Like the Birmingham businesses 60 years ago, Minnesota’s companies couldn’t help but see what was going on. So the silence from much of big business was striking. Yes, dozens of CEOs of Minnesota-based companies released a joint statement calling for de-escalation and coordination between federal and local governments, but they didn’t say anything beyond that. Companies outside the targeted areas stayed silent — even ones with big footprints in places where agents were clashing with citizens.

Companies in Minneapolis and beyond have clearly been trying to lay low. But they hold extraordinary economic and political influence, and there are obligations that come with that power. Acting on that duty means that leaders must deal honestly with some myths and blind spots that are holding them back.

The Myths That Leaders Hide Behind.  In his conversations with executives across the U.S. and across industrial sectors, a familiar set of assumptions keeps surfacing. They boil down to three myths about the role of business in society and politics.  We don’t engage in politics.  Staying quiet reduces risk. And it’s not our job.

What Now?  It’s tempting to try and offer a neat checklist of things to do. This isn’t really one of those moments, but here are a few principles worth considering.  First, saying nothing about major societal issues is a decision, and often a high-risk one.  Second, decision thresholds (leaders’ own “red lines”) should be examined and articulated.  Third, not every decision should be reduced to a narrow cost-benefit analysis.  Fourth, it’s valuable to broaden the circle of perspective and advice.  Finally, don’t act alone.

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