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Mind the gap: Should brands weigh in on divisive topics?
From issues of bodily autonomy to climate change to social equality, the world is increasingly polarized, and even companies can't escape hot-button topics. While once, organizations could keep their positions on divisive issues to themselves, consumers are demanding they take sides. But should they? And how can brands weigh in without alienating the people who disagree with their stance? Assistant professor Rhia Catapano explores how businesses can navigate these polarizing topics on the latest episode of the Executive Summary.
Show notes:
[0:00] In 2022, Disney and the state of Florida became embroiled in a polarizing debate over the state's alleged "Don't Say Gay" bill, which Disney opposed, albeit belatedly.
[0:56] Once, businesses could stay silent when hot topics arose, but today consumers are demanding they take sides.
[1:32] Meet Rhia Catapano, an assistant professor at the Rotman School of management who studies consumer persuasion.
[2:20] Brands most often worry about consumer boycotts when they take stances their audiences disagree with. But that worry might be misplaced.
[2:49] Consumers tend to buy from companies when it's inconvenient to maintain their boycott.
[3:14] We're also likely to change our memories, thinking we boycotted a product, even when we still loaded it into our carts.
[6:10] And we often believe signaling our intentions to boycott is "enough," so we feel less guilty even as we're purchasing items from a brand we've said we'll avoid.
[7:36] So if we're so bad at boycotting, why should businesses care? For one, the reputational hit is very real.
[7:51] There are always cases where brands don't have to worry - particularly when the audience boycotting the brand isn't it's target audience. See Nike, Colin Kaepernick and the social right in the U.S.
[8:31] But when the audiences align, boycotts are particularly effective in this age of social media. First, because social media makes it easier to propagate messages.
[9:23] Second, social media creates a "safe space" to share polarizing opinions.
[10:10] So how can companies navigate hot button issues? First, make sure you're not being a hypocrite.
[10:49] Consider how you frame your stance around an issue, and what you want to achieve by making public statements.
[13:08] Be real about whether you can take the heat.
[13:58] And consider new audience opportunities when your values don't align with your existing customer base. "It makes the most sense for the company to stick to what are their core values and what can they do that will align with what they've done in the past and what they want to do moving forward, rather than trying to please everyone.
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By Rotman School of ManagementFrom issues of bodily autonomy to climate change to social equality, the world is increasingly polarized, and even companies can't escape hot-button topics. While once, organizations could keep their positions on divisive issues to themselves, consumers are demanding they take sides. But should they? And how can brands weigh in without alienating the people who disagree with their stance? Assistant professor Rhia Catapano explores how businesses can navigate these polarizing topics on the latest episode of the Executive Summary.
Show notes:
[0:00] In 2022, Disney and the state of Florida became embroiled in a polarizing debate over the state's alleged "Don't Say Gay" bill, which Disney opposed, albeit belatedly.
[0:56] Once, businesses could stay silent when hot topics arose, but today consumers are demanding they take sides.
[1:32] Meet Rhia Catapano, an assistant professor at the Rotman School of management who studies consumer persuasion.
[2:20] Brands most often worry about consumer boycotts when they take stances their audiences disagree with. But that worry might be misplaced.
[2:49] Consumers tend to buy from companies when it's inconvenient to maintain their boycott.
[3:14] We're also likely to change our memories, thinking we boycotted a product, even when we still loaded it into our carts.
[6:10] And we often believe signaling our intentions to boycott is "enough," so we feel less guilty even as we're purchasing items from a brand we've said we'll avoid.
[7:36] So if we're so bad at boycotting, why should businesses care? For one, the reputational hit is very real.
[7:51] There are always cases where brands don't have to worry - particularly when the audience boycotting the brand isn't it's target audience. See Nike, Colin Kaepernick and the social right in the U.S.
[8:31] But when the audiences align, boycotts are particularly effective in this age of social media. First, because social media makes it easier to propagate messages.
[9:23] Second, social media creates a "safe space" to share polarizing opinions.
[10:10] So how can companies navigate hot button issues? First, make sure you're not being a hypocrite.
[10:49] Consider how you frame your stance around an issue, and what you want to achieve by making public statements.
[13:08] Be real about whether you can take the heat.
[13:58] And consider new audience opportunities when your values don't align with your existing customer base. "It makes the most sense for the company to stick to what are their core values and what can they do that will align with what they've done in the past and what they want to do moving forward, rather than trying to please everyone.