Much was left unsaid when President Trump tweeted Wednesday afternoon that “Rather than putting pressure on the businesspeople of the Manufacturing Council & Strategy & Policy Forum, I am ending both. Thank you all!”
It was a remarkable revolt from corporate America against the CEO President Donald Trump when the decision was made to disband two of the President’s economic advisory councils, which hosted many of America’s top corporate and labor leaders.
It’s no secret that during the 2016 election, President Donald Trump made his corporate experience and ability to make deals with the American business community major hallmarks of his campaign. In announcing the Manufacturing Jobs Initiative back in late January to much fanfare, the White House announced that: “The President will be meeting with some of the world’s most successful and creative business leaders to share their experiences and gain their insights. President Trump plans to continually seek information and perspectives from a diverse range of business leaders.”
The situation this week was reminiscent of when numerous companies announced their opposition to Trump’s January 27 executive order banning refugees from seven Muslim-majority countries, as well as when a number of prominent business leaders criticized Trump’s decision for the U.S. pull to pull out of the Paris climate treaty.
How Events Unfolded
Wednesday’s face-saving tweet from Trump came as enormous public pressure mounted on CEO’s to walk away from the councils and repudiate Trump for his failure to lay blame at the feet of white supremacists and neo-Nazis for the violence over the weekend in Charlottesville, which included a white supremacist driving his car into protesters, killing one and injuring 19 others.
On Monday, Merck CEO Ken Frazier became the first major American chief executive to quit the Manufacturing Council, declaring his move a matter of “personal conscience.”
Frazier’s decision was followed later on Monday by Under Armour CEO Kevin Plank and Intel CEO Brian Krzanich.
On Tuesday, a defiant Trump held a jaw-dropping impromptu press conference in the lobby of Trump Tower that doubled down on his Saturday statement declaring that counter-protesters were also to blame for the tragedy that left three dead and dozens hurt and that some “very fine people” were among the marchers at the white nationalist rally.
With threats of boycotts and the hashtag #Quitthecouncil trending all week, by the time of Wednesday’s announcement that the councils were being disbanded, the Manufacturing Council had already lost seven members, three of whom left on Monday, two on Tuesday (Alliance for American Manufacturing and AFL-CIO), and two (Campbell Soup and 3M) early on Wednesday.
Here are Five Things CEOs, Companies, & Communicators Need to Know About Weighing in on Social Issues in the Trump Era
1) People are looking for clarity and commitment in the Trump era (especially the public, customers, and employees). They are increasingly looking to executives and companies to speak out on hot-button issues. A Global Strategy Group study found that “81% of Americans believe that corporations should take action to address important issues facing society; 88% believe corporations have the power to influence social change.” Global Strategy Group’s Julie Hootkin and Tanya Meck add, “Moreover, companies who move swiftly and authentically gain the most credit. In short, Americans’ desire for corporate engagement isn’t just a preference – it’s an expectation.”
2) In the Trump era, silence is no longer an option for corporations. Make sure that your actions and words are consistent. It is just a matter of time before you will be tested and publicly held accountable for your decisions. Silence is not an option, and you must accept that you may never make everyone happy. On Monday, Trump sent two tweets lashing out at Merck CEO Kenneth Frazier, one of the few African American CEOs in the Fortune 500. And then on Tuesday, Trump responded to the three initial Manufacturing Council departures, tweeting, “For every CEO that drops out of the Manufacturing Council, I have many to take their place. Grandstanders should not have gone on. JOBS!”
3) Frame your response in terms of values and principles instead of politics. Speak out about (and affirm) those values when they are directly under threat. In announcing his decision, Frazier noted that “America’s leaders must honor our fundamental values by clearly rejecting expressions of hatred, bigotry and group supremacy, which run counter to the American ideal that all people are created equal.”
4) Millennials especially want to work for — and be loyal to — companies they believe reflect and align with their personal views and values. In this era of unprecedented activism and engagement, authenticity is essential.
5) Look out for your employees. Consider the ramifications of the administration’s action on your employees and their well-being. Be mindful that companies not seen as being on the correct side of societal issues or fighting for their employees can lose talent and incur consumer backlash, which can potentially affect your bottom line.
About the Author: Ryan Rudominer is a communications strategist with fifteen years of experience developing and directing successful public relations services and media strategies that break through all the noise on behalf of leading brands, advocacy organizations, and non-profits. He specializes in leading fully-integrated, high-impact advocacy and marketing campaigns that advance client goals, including media relations, message development, branding, and business development. His passion is leveraging the power of storytelling to connect people to causes, as well as purpose-driven brands and organizations.
This piece is cross-posted at CommPRO.biz