Higher Expectations: How Organizations Engage with Social Change Issues

Social change issues matter to organizations because they matter to many of their employees and customers, both of whom affect overall profitability. This report reveals the findings of an online survey with over 500 respondents across various industries, functions, and levels, and interviews with10 human resources (HR), sustainability, and diversity and inclusion (D&I) leaders at global organizations in different industries. It outlines how organizations are responding to social change and the choices they have when they decide to do so.

Executive Summary 

The public prominence of social change issues is influencing how many organizations operate. The challenge for organizations is to determine the costs and benefits, and thus the overall impact, of taking a stand on the social change issues that affect customers, employees, owners, and the communities in which they operate. Simply put, social change issues matter to organizations because they matter to many of their employees and customers, both of whom affect overall profitability.

To determine how organizations approach social change, we conducted an online survey with over 500 respondents across various industries, functions, and levels, and interviewed 10 human resources (HR), sustainability, and diversity and inclusion (D&I) leaders at global organizations in different industries. This report outlines how organizations are responding to social change and the choices they have when they decide to do so.

Survey responses indicate that most employees expect their organizations to engage with social change issues:

• 90 percent reported it is at least moderately important that the organization they work for be involved in social change
• 32 percent of survey respondents reported that organizations should always respond to social change issues

The leaders we interviewed told us that large organizations and brands have an ability, if not a responsibility, to create change that most individuals cannot match on their own. Our research revealed that many organizations and employees realize it is getting harder to avoid engaging with social change issues. And CEOs agree: In The Conference Board 2019 C-Suite Challenge™, half of surveyed CEOs believe future customers will factor a company’s values and corporate citizenship more prominently into purchasing decisions.1

Some organizations have decided to get ahead of issues, while others engage with social change issues as part of their core values, and still others are propelled into action by customers, employees, or the media. This report doesn’t address the full spectrum of social change issues, which includes politics, climate change, and many other issues. Instead, we focus on a subset of social change issues that, though still broad in scope, are related to employees and their inclusion and rights in the workplace.

At The Conference Board, we define social change for organizations as:

“The use of an organization’s leadership, brand, and resources to influence ways of thinking about cultural and social norms, internally and/or publicly, globally and/or within a region.”

Survey respondents were asked how organizations should respond to a cross-section of 15 timely social change issues that affect employees: publicly only, both publicly and internally, internally only, or not issuing a response at all.

HR’s Role When the Organization Engages with Social Change Issues

HR plays an important role when an organization engages with social change issues that affect employees. In many cases, HR will lead the response efforts internally, often alongside employee networks. For public responses, HR can partner with the organization’s senior leadership and marketing & communications, corporate social responsibility/sustainability, public policy, and legal functions to provide consistent messaging to employees. HR can put in place guidelines to help the organization respond quickly and appropriately. Guidelines should be specific to an individual organization. When creating such guidelines, HR should work to:

Understand the social change issues that affect employees.

• Realize that it is an unreasonable expectation for people to come to work and check their views on social change issues at the door. You should be aware of what is going on externally to the organization, especially with issues that yield a lot of emotion. Keeping a pulse on current social change issues that affect employees is just as important as any other aspect of HR such as safety, ethics, and wellness.
• Ensure that leaders and decision makers are aware of the larger societal conversations and how they affect many employees. Recognize that a critical mass of employees who are passionate about an issue may push leadership to respond.
• Provide a forum to listen to employees to find out what they are most passionate about. Create opportunities for employees to channel feedback to the C-suite.

Partner with leadership to determine the internal response if the organization decides to pursue a specific social change issue.

• Find leaders in senior roles who are passionate about the issues and are willing to champion them thoughtfully.
• Consider how your organization measures the diversity and inclusion constructs that are often associated with social change issues (e.g., equity in terms of pay, opportunity, and training).
• Determine when to be proactive or reactive by formulating the best approach for your organization based on facts and business results. Know your constituents and bring them in on the issue.

Engage with the social change issue.

• If your organization is planning to release a public statement, ensure that internal communications are timely and consistent with the public response. Work with corporate communications and legal departments to develop a thoughtful response.
• Allow employees time to process and ask questions, especially if you’ve chosen to respond publicly. Sit down with employees to discuss particularly sensitive issues.