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Four Questions to inspire decision-makers to build personal and company trust: M.E.M.O.® Map, Execute, Measure, and Optimize—The Framework for Trust and Governance.
Elon Musk’s active involvement in a political campaign and a government transition is nothing new for a high-profile CEO or shareholder, whether in the US or Europe. However, it raises important governance questions: How much influence should Boards of Directors have over a CEO’s political engagement, and where is the line between personal expression and corporate accountability?
Have Boards aligned their Trust Pillars to establish clear guidelines for a CEO’s political activities and their potential impact on the organization?
02.Execute:
Are governance systems in place to address risks arising from a CEO’s political involvement, ensuring accountability without limiting individual rights?
03.Measure:
How are Boards assessing the impact of a CEO’s political actions on employees, investors, regulatory relationships, and the company’s brand trust?
04.Otimize:
What governance adjustments can Boards implement to ensure transparency and alignment between a CEO’s political engagement and the organization’s values?
*Trust Pillars are the core values and strategies that align your company’s objectives with stakeholder expectations, ensuring transparency and accountability.
Trust is the currency of sustainable business—lose it, and the cost is more than financial.
Benchmarks: Home Depot Political Contributions Controversy (2020). Backlash over co-founder Bernie Marcus’s political donations led to public boycotts. Lesson: Boards must monitor political contributions and associated reputational risks. AT&T Lobbying Scandal (2018). Paid $600,000 to Trump’s lawyer for political insights, causing public backlash. Lesson: Boards need strict oversight on lobbying efforts to ensure ethical transparency. Nike’s Colin Kaepernick Campaign (2018). Took a political stance supporting racial justice, sparking controversy but boosting sales. Lesson: Boards must assess political engagement alignment with corporate values and stakeholders.
How should Boards balance political engagement with governance and stakeholder trust? Share your thoughts.
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Gui Athia—Mentor, Keynote Speaker, and Advisor. Author of Get the M.E.M.O.
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