Max Oliva, Associate Director of IE’s Social Impact Management
The McKinsey Quarterly has just Published an article which analyzes these issues, arguing that executives ignore socio-political debates at their own peril.
A majority of the executives they have surveyed acknowledge the fact that socio-political issues if not well managed and anticipated, are potential threats to the creation of value and have admitted that they handle these issues poorly.
That deficiency, they argue, is “the result of short-term financial pressures, a lack of familiarity with the issues, and the sense that specialists in the public-affairs and legal departments handle this sort of thing.” It is of strategic interest to correct this flaw.
What’s different today is “the intensifying pressure and the growing complexity of the forces, the speed with which they change, and the ability of activists to mobilize public opinion. Companies must now strive to anticipate and understand those expectations and to embed them in their business strategy.”
The challenge is to “find a way for companies to incorporate an awareness of socio-political issues more systematically into their core strategic decision-making processes.” And this must be seen not just as risks, but as an opportunity to differentiate your business.
To view the full article click here.
To view What Business Executives think in regards to Corporate Responsibility click here.

Increasingly, “a company’s sources of long-term value (for example, its brand, talent, and relationships) are affected by a rising tide of expectations among stakeholders about the social role of business.”
“Estimating the impact of most socio-political trends on corporate value requires executives to make assumptions and test sensitivities that MBA textbooks generally don’t discuss.”
“The case for adopting a wholeheartedly strategic approach to the socio-political agenda is threefold. First, these forces can alter an industry’s landscape in fundamental ways.
Second, the immediate financial and longer-term reputational impact of social issues that backfire can be enormous. And lastly, new product or market strategies can emerge from changing social and political forces.”
To view the full article click here.
To view What Business Executives think in regards to Corporate Responsibility click here.


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