Publication Date

Fall 11-27-2024

School

School of Communication

Major

Communication Studies: Advertising and Public Relations

Keywords

Social License to Operate, stakeholders, social activism, corporations

Abstract

In a social and political landscape that is becoming quite divided, the role of publicly traded corporations in this landscape is up for much debate. On one end, speaking out can improve a corporation’s overall brand image, help relate to socially conscious customers, and help maintain customer loyalty. On the other end, however, it creates significant risks. Speaking out can alienate stakeholders, create damaging backlash, and generate detrimental financial repercussions. This significant paradox asks an important question that must be answered by each company at some point: Should corporations remain neutral on contentious issues to perhaps protect their business interests, or is it tactfully advantageous for them to publicly voice their opinion? While there are some that argue corporate silence is preferred, others insist there is an expectation for companies to use their platform to respond according to the expectations of their stakeholders. Ultimately, it can be argued that publicly traded corporations should not speak out on social or political issues as it will negatively affect their business and consumer relations.

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