When Companies Take a Stand

(L-R) Frank DeMaria, Elie Jacobs

In April 2021, more than 1,800 business leaders, including the CEOs of Merck, American Airlines, and Levi Strauss, signed a public statement opposing restrictive voting laws in Georgia and other states. The letter ran as a full-page ad in the New York Times and the Washington Post, immediately sparking national debate. Some hailed it as a principled stand for democracy. Others saw it as corporate overreach. For many companies on the sidelines, the message was unmistakable: speaking out comes with real consequences, and so does staying silent.

Open letters, whether from coalitions, industry groups, or signed by their membership or individual business or non-profit leaders to promote or oppose regulatory or legislative action, have been around since the Romans—probably—and understandably so, as they are inexpensive and have traditionally been seen as low-risk. Letters have covered the entire spectrum of issues, from advocating for the preservation of clean energy tax credits to opposing anti-LGBTQ legislation and addressing data privacy concerns. These public declarations offer a way for companies to show unity, influence policy and signal what they want the public to view as their values. But with visibility comes scrutiny, and what once felt like a symbolic gesture now carries strategic weight.

There are compelling reasons why companies—especially those still building their reputations—might consider joining these efforts. When done thoughtfully, signing a letter can position a brand as a serious player in its industry, aligning it with larger coalitions and committing it to being a visible presence in the public eye. It can also reinforce corporate values in action, building trust with employees, customers, and partners who increasingly expect businesses to lead on social and environmental issues. And in an environment where reputational capital can determine how well a company weathers future crises, visible advocacy today can build the kind of credibility that pays off when it matters most.

But there are equally valid reasons to be cautious. Signing an open letter creates a permanent public record. If the issue evolves politically or becomes more divisive, companies risk being pulled into conversations they didn’t anticipate. A leadership change could also place the new executive in a challenging position. The media, shareholders, regulators and employees may all have follow-up questions, and not all of them will be easy to answer. What began as a smart alignment with the current climate can become a reputational liability under a future political environment or shifting cultural winds.

There’s also the challenge of internal consistency. A public stand on, say, racial justice or environmental responsibility will invite scrutiny of your hiring practices, board composition, supply chain and emissions data. If the message on paper doesn’t match the reality behind the scenes, the backlash can outweigh any goodwill the letter was meant to generate. Even well-intentioned advocacy can backfire if it exposes gaps between a company’s rhetoric and its actual behavior.

The truth is, not every open letter deserves your logo. Some are too vague to have impact. Others may be driven by organizers whose goals don’t fully align with yours. Signing can feel like a box-checking exercise, a performative gesture more about optics than outcomes. And while abstaining may seem safer, silence can be equally conspicuous, particularly if customers, employees or investors expect a position.

So what’s a smart communications leader to do? The best companies approach these decisions the same way they approach any other major reputational risk: strategically. That means pressure-testing the issue’s relevance to your business, aligning internally with legal and leadership teams, evaluating the letter’s tone and sponsors, and preparing for the follow-up. Because the moment your name appears, the questions will start: Why did you sign? What are you doing beyond this letter? How does this align with your mission and your actions?

There’s no universal playbook for when to take a public stand. What’s right for one company might be wrong for another, even within the same industry. But in today’s environment—where social, political and business dynamics collide in real time—these aren’t just PR decisions. They’re brand decisions. They’re leadership decisions. And increasingly, they’re trust decisions.

A public letter may only run for one day, but the reputational echo can last for years. Companies that choose wisely—and back up their words with consistent, credible action—won’t just protect their reputation. They’ll shape the future of their industry.

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