Almost everything about business today is political, in the sense that it requires consideration of a wide range of often controversial ethical, social, and ecological issues. Choices that may have been clear-cut in purely economic terms—such as what business to be in, where to do business, whom to do business with, and even how to price goods or hire and promote employees—can now easily become complicated by politics.
Strategy in a Hyperpolitical World
How to make smart choices when values clash
From the Magazine (November–December 2022)
· Long read
Summary.
The assumption that business and politics can and even should be kept separate is no longer realistic, the authors write, and messaging from the corporate affairs department is insufficient to defuse political issues when they arise. Delta’s troubles in Georgia and Disney’s in Florida are among the examples they cite. To make and implement the best strategic choices in this environment, leaders will have to: (1) develop robust principles to guide strategic choices; (2) address ethical issues early; (3) consistently communicate and implement their choices; (4) engage with and beyond the industry to shape the context; and (5) learn from mistakes to make better choices in the future.
A version of this article appeared in the November–December 2022 issue of Harvard Business Review.