Corporate activism: managing decisions, reputation and stakeholder expectations

Corporate activism: managing decisions, reputation and stakeholder expectations

February, 2022

In a column published by Expansión, Pablo Jiménez proposes a framework for assessing when and how a company should take a position on social, environmental or public-interest issues, considering its purpose, stakeholders and potential reputational risks.

In the column “El activismo corporativo es un acto de equilibrio” (“Corporate activism is a balancing act”), published by Expansión, our partner Pablo Jiménez examines the growing expectation for companies and their leaders to take positions on issues that matter to society and their various stakeholders.

To guide these decisions, Pablo proposes a three-stage framework: identify the relevant functions and stakeholders; assess whether the organization’s involvement would be authentic, relevant and capable of generating impact; and evaluate the potential benefits and risks of taking action—or not taking action—over the short, medium and long term.

The article highlights the importance of supporting decisions with verifiable information and maintaining consistency between an organization’s public positions, purpose and actions. This analysis is particularly relevant when decisions may affect corporate reputation, stakeholder trust and relationships with employees, clients and business partners.

Read the full column in Expansión.