Business Leaders Are Holding Back on Addressing Societal Issues for Fear of Being Labelled ‘Woke’
Relevance, Time and Being Underprepared Are Holding Leaders Back from Being Vocal and Engaging on Societal Issues Across Digital Platforms
Leaders lack confidence about how to take a stand when dealing with societal issues — two-thirds of business leaders don't feel well enough equipped to speak confidently on societal issues
4 in 5 investors expect business leaders to take a stance on issues of importance
London, 17 July 2024 — Business leaders are increasingly expected to lead conversations on significant societal issues, according to new research from FTI Consulting (NYSE: FCN). The UK’s recent General Election highlighted a strong desire for societal change, and stakeholders — including governments, employees, investors and customers — expect businesses to contribute meaningfully to public debate.
Business leaders are setting the tone, with digital communications playing a pivotal role. With 85% of FTSE 100 chief executive officers (“CEOs”) on LinkedIn, and 60% actively engaging, social media has become a crucial arena for leadership on societal matters, addressing both employees and external audiences.
Now in its fourth year, the latest FTI Consulting Leading from the Front report: Walking the Tightrope: Navigating Societal Issues on Social Media, identifies the ongoing pressures from internal and external stakeholders on business leaders to be vocal. It reveals that 69% of 18- to 24-year-olds expect business leaders to speak out on societal issues relevant to their business, using their social media platforms as a socially responsible tool to drive positive change.
The research shows that leaders recognise the inherent benefits of speaking out on societal issues, understanding that being vocal improves reputational standing, acts as a competitive edge and strengthens customer loyalty. Seventy percent of surveyed leaders believed that effective social media engagement on societal issues had the ability of increasing shareholder value, and 83% understood it to increase the ability of attracting new talent.
“Posting about societal issues on social media can be challenging, not least for the leaders of large organisations,” said Andrew Williams, a Senior Managing Director in the Digital and Insights team within the Strategic Communications segment at FTI Consulting. “Yet business leaders themselves couldn’t be clearer about the benefits. Simply, they overwhelmingly believe that communicating about societal issues can support reputational and commercial value.”
The report uncovers a growing confidence gap amongst senior leaders, who despite recognising the societal and commercial impact of social media, lack confidence on how and when to take a stand. Concerns of being labelled as “woke” if they speak out on societal issues, being held accountable for solving the issue and the time commitment of speaking out, came up as reoccurring themes preventing leaders from vocalising their standpoint on societal issues. The research shows that being labelled as ‘woke’ was a defining factor, with 54% of surveyed leaders raising this as a concern.
“Being vocal on societal topics isn’t easy — nor should it be,” said Claire Twohill, a Managing Director in the Digital and Insights team within the Strategic Communications segment at FTI Consulting. “For business, leaders the question isn’t ‘should I speak up?’ but rather ‘how and when?’ It’s only through identification of relevant topics, knowing your unique position and engaging purposefully that leaders can feel confident and deliver genuine impact. Crucially, it’s a balancing act — the CEOs who are leading from the front on societal issues have a clear plan to guide their decision-making on when and how to speak on social media and beyond.”
Business leaders who are vocal on societal issues are unlocking significant impact, demonstrating the value of speaking out. Those leading the way are generating business, societal and digital impact, while highlighting their commitment to contribute and lead societal change. The report reveals that the ten FTSE 100 CEOs with the highest score, according to FTI Consulting’s Digital Impact Score model, are posting four times more frequently than those with the lowest scores.
The CEOs that are leading the way digitally recognise the importance of prioritising the “S” component of environmental, social and governance (“ESG”) to drive and engage with stakeholders online. They understand that the main issues audiences want addressed are those that relate to their everyday lives — cost of living (74%), mental health (68%), food poverty (68%) and healthcare (65%) — and that by engaging on these they can create value for themselves, their companies and society.
The report’s research findings that one in two business leaders believe having a clear framework would increase their confidence in speaking out, offers a clear strategy to guide CEOs and senior leaders on how and when to address societal issues on social media by evaluating potential reputational risks.
About the FTI Consulting Digital Impact Score
To help organisations understand the power of executives’ digital leadership voices, FTI Consulting used its proprietary Digital Impact Score model to analyse how impactful FSTE 100 executive committee members are online. With LinkedIn being the channel used more frequently during the study period by executives, this was the primary channel of focus. Each FTSE 100 executive was given a score out of 100, with individual points given to assess the impact of the executives’ presence and the reach and resonance of their content. Within the model, increased weight was given to executives who are building an engaged and powerful follower base by creating regular content grounded in knowledge and advice that effectively sparks conversations.
The research into the social media activities of FTSE 100 CEOs was conducted from 1 February 2023 – February 2024.
About
200 Aldersgate
Aldersgate Street
London, EC1A 4HD
Investor Contact:
+1.617.747.1791
mollie.hawkes@fticonsulting.com
Media Contact:
+44 20 7632 5071
helen.obi@fticonsulting.com
Source: FTI Consulting, Inc.