Usted es me todos: Best of the January-February 2018 Issue: The CEO as Social Activist

December 20, 2017

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The New CEO Activists

From Amy Bernstein
Editor, Harvard Business Review

CEOs used to avoid wading into controversy, and for good reason: Speaking out on a hot-button issue would surely alienate at least some customers. But the rules have changed. Social upheaval and government paralysis have prompted many corporate leaders to join the debates on LGBT rights, immigration, race and other contentious topics. In fact, in the age of Twitter, their customers and employees often expect this of them. So how can CEOs determine whether to add their voices to an issue of political (if not necessarily strategic) urgency? And how can they do so effectively? Ronnie Chatterji of Duke's Fuqua School and Mike Toffel of Harvard Business School explore these questions in "The New CEO Activists."

As a smart person once said, "Culture eats strategy for breakfast." This idea is a problem for any leader trying to execute on a new plan. The challenge is that so much of culture is unspoken and assumed, embedded in mindsets and behaviors. But that doesn't mean it's unmanageable. Boris Groysberg and J. Yo-Jud Cheng of HBS, along with Jeremiah Lee and Jesse Price of Spencer Stuart, have thoroughly analyzed the literature on culture, distilling it into a concise, practical manual for managers. In "The Leader's Guide to Corporate Culture," they identify eight distinct cultural styles and explain how to work with them for the long-term health of the organization.

Some other articles I'm excited about: "Ads That Don't Overstep," by HBS professor Leslie John, Darden School of Business professor Tami Kim, and IESE Business School professor Kate Barasz, discusses how to make sure your online targeting doesn't creep out your customers. "The Case for Plain-Language Contracts," by Shawn Burton, a general counsel at GE's aviation division, describes how he and his team translated excruciatingly dense legalese into language that pretty much anyone can understand. And finally, be sure to check out "The Best Leaders Are Great Teachers," in which Syd Finkelstein of Dartmouth's Tuck School argues that what sets exceptional business leaders apart is their unwavering commitment to developing their people. If you're lucky enough to have had bosses like these in your life—I certainly have—you'll know what a difference they make.

Thanks for reading,
Amy Bernstein

In the Issue:

The New CEO Activists

by Aaron K. Chatterji and Michael W. Toffel

Increasingly, a CEO's job is not simply about maximizing profits for shareholders or seeking favorable policy with behind-the-scenes D.C. lobbying. It's about publicly speaking up about social and economic issues they believe in. But, to quote researchers Chatterji and Toffel, "does CEO activism actually change hearts and minds? What are the risks and potential rewards? And what is the playbook for corporate leaders considering speaking out?" They provide research-backed answers, including the (perhaps unsurprising) fact that Democrats and Republicans have very different responses to activism—except on one key issue.

The Leader's Guide to Corporate Culture

by Boris Groysberg, Jeremiah Lee, Jesse Price, and J. Yo-Jud Cheng

Understanding your company's culture is critically important when it comes to everything from strategy to employee engagement. It's also a really hard thing to pin down. This in-depth review of the literature helpfully breaks down culture into eight main styles and explains how to identify yours—or change it if you're looking to make a shift. Plus, data. Lots and lots of beautifully visualized data.

Ads That Don't Overstep

by Leslie K. John, Tami Kim, and Kate Barasz

Admit it: You have a very specific sweater (or shoe or fitness product) that follows you from Facebook to Instagram and back again. The age of ad targeting is upon us, and it's often annoying and creepy. So how can marketers make sure their efforts don't fall into this trap? By better understanding how consumer trust works and by following five key guidelines when developing ad campaigns.

The Case for Plain-Language Contracts

by Shawn Burton

"What do you call a dense, overly lengthy contract that is loaded with legal jargon and virtually impossible for a nonlawyer to understand?" begins Burton, a general counsel at GE's aviation division. "The status quo." Quips aside, these mouthfuls of words can be stopped, and Burton provides plenty of proof from his experience—including the fact that the digital-services business's simplified contracts now take 60% less time to negotiate than the previous versions did.

The Best Leaders Are Great Teachers

by Sydney Finkelstein

Most leaders manage their employees with quarterly reviews and professional introductions, among other common development practices. However, the very best (and those with the highest-performing teams) approach their jobs like teachers, passing on technical skills, business principles, and life lessons on a daily basis. This article explains how to become such a manager, explaining "what to teach, when to teach, and how to make your lessons stick."