CEOs are frequently being asked to make a statement and to take a position regarding a myriad of political and social issues. As they increasingly embrace the needs and concerns of a multitude of stakeholders, they are asserting that their companies can âdo well by doing good.â Some recent studies support this claim with evidence that employees, customers, suppliers and society at large are more willing to work for, buy from, do business with and offer support for socially responsible companies. Moreover, the investor community has been backing this view by building up their âsustainabilityâ portfolios.
Taking ESG positions and making the necessary commitments are increasingly becoming an imperative for CEOs and their boards. To do so takes courage and conviction, but these virtues may not be enough; tolerance and forbearance may also be needed. CEOs are being pressured to take âwokeâ positions dictated by progressive activists, some of whom reject the fundamental tenets of free-market capitalism, including the profit motive. If CEOs resist, they will be shunned and shamed.