There is a steadily growing list of companies distancing themselves from the National Rifle Association (NRA) in the aftermath of the February 14th shooting in Parkland, Florida, including Alamo Rent a Car, Avis, Best Western, Delta Airlines Hertz, Best Western and North American Van Lines. Although a NRA statement released this weekend dismissed the decisions by their partners as “a shameful display of political and civic cowardice,” they may not want to dismiss or ignore what is clearly a growing trend of corporate social responsibility, with companies and organizations becoming even more inspired to act when failing to do so impacts their bottom line.
What are the deeper driving forces, beyond a catchy hashtag or a viral video, inspiring corporate actions that can force even a well-funded organization to sit up and notice?
- Seizing the Moment – One thing that made the Parkland school shooting different from the aftermath of other recent shootings is the refusal of the young survivors from Stoneman Douglas High School to accept what had become the standard “now is the time for thoughts and prayers” mantra that postponed meaningful discussion until media attention went elsewhere. The activists’ youth, the trauma they had been through at such a young age, and their dexterity with social media made the student voices harder to criticize and dismiss.
- The Tipping Point – When the same negative situation resurfaces time and time again, the impact can be cumulative. A good example is the recent controversy at Boston radio station WEEI. Although there had been complains on multiple occasions about insensitive comments made by their hosts over the years, the use of an offensive Asian accent to represent Tom Brady’s agent Don Yee was the final straw for advertisers. Once they stopped their ads, the station took the action of pulling programming for an entire day to have their staff undergo sensitivity training.
- Instant Impact – Unlike politicians, people in the business world don’t have the luxury of knowing the election that could decide their future is months or years away. It doesn’t take long for customers to leave and a business to fail.
- Peer Pressure – Word travels so quickly through social media that it’s taking less time for companies to feel the pressure to join others in their arena in taking either positive or negative action on an issue or risk being left behind. Since the passage of the reduction of the corporate tax rate, more than 300 companies have announced plans to use some of the money for tax cut bonuses, wage increases and other employee benefits.
- Socially Aware Companies – More companies are committing themselves to using their power to make a positive impact on the world through organizations such as Conscious Capitalism (which Teak is a member of), even on issues that don’t have a direct tie to their product or the work that they do.
While it is too soon to tell what path the NRA will take, they should be mindful of the fact that customers are not afraid to flex their financial muscles in ways that could impact them. Instead of buyer beware, it’s becoming buyer be bold and both corporations and organizations can’t afford to hide behind rhetoric and ignore the power of the purse to make things happen.
