Executives in the era of no-holds barred activism | Fortune

"The purview of corporate senior executives is growing ever wider. Beyond incorporating the new technologies, the individualization of consumer preferences, the pressure of competitors, and the fragility of global supply chains, they must now contend with regulators, non-governmental organizations, and social movements that have adopted an "activist" style. We now live in an era where the mobilization of public opinion-through social media, consumer boycotts or street protests-is a weapon used to pressure corporations, and their leaders, to alter their behavior."

"Such behaviour is not new. What's new is that political parties and even governments are embracing the activist's rulebook. The current U.S. administration is a case in point, with former activists now occupying official positions within the public bureaucracy and the president applying his executive resources to align firms with his policies. As a result of this seismic shift, corporate leaders must prepare for an increasingly polarized world where neutrality is often no longer an option, and where the penalties for betting wrong are both economic and personal."

"The first step for managers is to understand the types of activist, their motives, and tactics. Sometimes this comes from a single high-profile individual. Investor Carl Icahn, for instance, attempted to install board members at McDonald's to change how its suppliers treated pregnant pigs-a cause raised by his daughter, an animal rights advocate. Other activists operate on ideological grounds. Bud Light faced backlash from a substantial part of its traditional customer base after partnering with a transgender influencer, a clash that cost it its market lead."

Corporate senior executives face expanding responsibilities as new technologies, individualized consumer preferences, competitors, and fragile global supply chains complicate strategy. Regulators, NGOs, social movements and political actors increasingly use activist tactics to influence corporate behavior through social media, boycotts and protests. Governments and political parties now sometimes adopt activist methods, deploying official resources to align firms with policy goals. As activism becomes more intertwined with politics, neutrality often becomes impractical and mistakes carry economic and personal consequences. Managers should map activist types, motives and tactics, and anticipate that wealthy firms and those seen as hypocritical are frequent targets.

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