15 Apr Green Leadership: Why CEOs’ Voices Matter
A new study from Reputation Leaders shows that when CEOs speak out on sustainability, the majority of US consumers (56%) feel more positive about the brand.
Today, Americans are paying attention not only to what companies sell but also to what they say and do. Especially when it comes to sustainability, the position of a company is often personified in its leadership, and our data reveals that a CEO’s commentary on such issues can shape public perception significantly.
This sentiment is even stronger among younger demographics, with three out of five (62%) of people under 45 responding positively, compared to 52% of those 45 and above. The workforce also tunes in with approval, with 60% of workers favouring sustainability discussions by CEOs versus 45% of non-workers.
In today’s climate, silence is not an option. Consumers are increasingly familiar with their favourite brand’s sustainability actions. A robust 54% express familiarity with the sustainability commitments of the brands they love, with younger consumers again leading the pack. This suggests that not only are CEOs expected to address environmental topics, but a brand’s sustainability is watched most closely by its core fanbase.
CEOs are encouraged to tackle environmental issues with clarity and vision, aligning eco-efforts with company values to address industry-specific challenges. Americans are much less enthusiastic for CEOs to take strong stances on geopolitical and social issues. Here, significant portions of the public prefer CEOs to speak to specific issues that align with brand values and to acknowledge divisive issues without taking sides.
The message is clear: inaction and silence are increasingly seen as complacency or indifference. Consumers are calling for corporate leadership that is vocal and proactive about sustainability. However, Business leaders today are navigating a delicate balance. They must be the voice of their company’s values and commitments, particularly on sustainability, while also being empathetic and discerning around societal discussions.