How does the way US companies react to political events influence customers’ attitudes toward them?
United States President Donald Trump’s executive order temporarily banning immigration from seven Muslim countries has put corporate executives in a bind. Almost from the moment he announced the ban, questions poured in about where those executives stood on the issue.
The media have highlighted a cluster of companies that have made public statements against the executive order. For example, Netflix called it “un-American”, while Ford Motor Company said: “We do not support this policy or any other that goes against our values as a company.”
But overlooked are the many more companies that tried to distance themselves from the debate. Chevron, Disney, Verizon, GM, Wells Fargo and others have all taken a wait-and-see approach. An illustrative example is Morgan Stanley, which expressed concern and said it is “closely monitoring developments”.
Such responses are no doubt based on the prevailing wisdom that companies need to stay out of politics. Most large corporations have diverse constituencies that draw from both sides of the political spectrum. As a result, executives fear that attracting the political spotlight by taking a stand on the executive order will alienate either the millions of customers who voted for Trump or the millions who voted against him.
My research suggests their fears are misplaced. And in fact, the opposite may be true: It may be more dangerous to remain silent than to take a political stand.
Violating expectations
Consumers today form relationships with a company based not only on the quality of the products and services it sells but also on a set of expectations of how it should comport itself.
When companies violate these expectations by behaving inconsistently, consumers reconsider that relationship. Obviously, this can have a major impact on company performance if many customers experience a violation.
ãã®èšäºã¯ Finweek English ã® 9 March 2017 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã9,000 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã ?  ãµã€ã³ã€ã³
ãã®èšäºã¯ Finweek English ã® 9 March 2017 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã9,000 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã? ãµã€ã³ã€ã³
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SAâs manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuruâs mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacqâs Waterfall City.