Elizabeth Cogswell Baskin

Consumers and shareholders are watching the CEO — but so are employees

That must have been one hell of a conference call. A Who’s Who of CEOs, including Indra Nooyi of Pepsico, Virginia Rometty of IBM, Mary Barra of GM, Douglas McMillon of Walmart and Laurence Fink of BlackRock, all dialing in to discuss the appropriate reaction to Trump’s remarks regarding the Charlottesville tragedy.

Consumers and shareholders were waiting to see how CEOs responded, but so were their employees. These companies depend on a diverse workforce of employees from all walks of life. If the company claims internally to value diversity and leadership, if the corporate values include things like integrity and respect, those principles theoretically  apply to the top executive as well as the rank and file.

But, in practice, does the CEO actually make business decisions based on those principles? Most employees of those companies will never meet their CEOs. They may have little understanding of what their chief executives do from day to day. They may not even bother to read the chief executive’s blogs or attend their town halls or watch their videos on the intranet.

But employees identify with the companies they work for, and they see the CEO as the figurehead for the company. As the heads of global companies, these CEOs were being watched not just by employees in the U.S. but in countries around the world.

These business leaders aren’t politicians. One could make the argument that serving on an advisory council for the president is a business decision and not a moral one.

But CEOs depend on the hearts and minds of their employees to move their companies forward. It matters to employees to know their CEOs took a stand against moving backwards in our country’s ongoing stop-and-start progress towards equality.

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