In-depth interview with Jon Mertz , Purpose Entrepreneur
Excursus : Corporate Activism
Jon Mertz , Purpose Entrepreneur , Santa Fe , NM , USA , photo : Pixel Images , Inc .
Jon Mertz is the founder of Santa Fe Innovates , a social entrepreneurship programme and community . He is also a Doctoral Candidate in Interdisciplinary Leadership with a research focus on social entrepreneurial leadership and moral stance .
What is Corporate Activism ? Corporate activism is leading intentionally in the middle of business and society . Stakeholders are present at this interface where corporate activism seeks to engage them in understanding the issues and challenges faced by employees , customers , shareholders , citizens and others . Corporate activism then crafts solutions and policies to lead business and society to better outcomes .
Why is it that companies in the USA so readily engage in corporate activism ?
US corporate leaders engage in activism because employees and citizens expect it . According to the 2018 Edelman Trust Barometer , 64 percent of respondents believe CEOs should take the lead on change rather than wait for government action . Given the polarisation of our political institutions , many stakeholders know that society needs to make progress towards creating a better future and that corporate decision-makers can act and lead by example .
What are the biggest obstacles and challenges ? With the current polarisation in the
USA , CEOs risk losing tax incentives , and policy makers who see their position coming under attack can resort to various other manoeuvres . Some politicians will campaign against instances of activist corporate governance to score political points with their constituents . CEOs risk becoming easy political targets and having to tone down their stance on important issues .
In which sectors and on which issues is corporate activism already widespread ? There are many examples of corporate activism . These include migration , gender , gun control , voting rights and climate change . Employee activism is spurring additional conversations about accountability regarding sexual harassment , the role of artificial intelligence in military contracts , or the ways in which social media platforms may be doing more harm than good .
A practical example : After the storming of the Capitol in Washington on 6th January 2021 , Microsoft suspended political contributions until the 2022 election cycle , and investment group Charles Schwab stopped making any political donations at all . While some companies have espoused similar positions and then backed down , others remain true to their statements . In the new world of corporate activism , civic courage will be the differentiator for leaders .
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