The Pressure to be Political
Should businesses stand up for social and political issues?
Law firms face potential conflicts and risks when they do
We’re living in times when people and businesses are expected to take a stand on the social and political issues of the day. Indeed, research has found that 70% of consumers believe it’s important for brands to speak out about social and political movements.1 Making these statements can help organisations demonstrate their values – and encourage the public to form stronger connections with them based on shared beliefs.
However, the volume and range of societal and geopolitical issues that have arisen over the past few years make commenting a political minefield of its own. Whether it is a decision to practice in a particular jurisdiction or comment upon a societal issue, the possibility of a law firm ‘getting it wrong’ is high – but what is ‘getting it right’?
“In today’s climate, firms may face pressure to make public statements about a range of issues, and yet judgment can be swift in response,” said Sharon Glynn, managing director at Travelers Europe. “The appropriate plan for businesses isn’t always clear – and often requires making decisions that carve out some middle ground.”
Anticipating ethical dilemmas in law
Law firms regularly face quandaries when it comes to brand and reputation. In the current business environment, a firm’s clients and business interests make a statement about their values – and what behaviours and practices they are (and aren’t) willing to tolerate.
Often, the path forward is murky. A firm may land on a slippery slope if they don’t carefully anticipate potential conflicts and risks.
In a business climate that can be swift to judge organisations for missteps, law firms may benefit from having a strong structure that helps them navigate risks that social and political issues present, as well as ethical issues that arise with clients. This structure might be a cross-functional ethics committee that includes people at different levels of the firm, as well as representatives from outside of the firm who can provide independent perspectives. Whatever form this structure might take, the firm could use it to think several moves ahead – and question their responses along the way. For example, how might a particular stance alienate key stakeholders? Could making a statement about a current event attract regulatory scrutiny? Are we leading ourselves into a communications trap, or generating other risks? Passing ethical problems through a filter like this can help a firm determine how they might manage such risks in reality.
Striking the right balance
Of course, some foundational work is required at the outset to ensure the firm’s values are clear – and getting there isn’t a straight path. Who determines what the firm’s values are? This can be a challenging question to answer when firms comprise an increasingly wide range of geographical locations, practice areas, demographic segments, and individual views.
Law firms also have responsibilities to their business and to the law itself. They must weigh the importance of making a particular statement against the importance of generating a profit for the business. They must uphold the principle of access to justice – even when popular opinion may not necessarily support that right.
But when firms do the work to balance those elements and set values that reflect them, they give themselves a stronger foundation from which to make decisions about the news of the day.
“Values are central to an organisation’s reputation,” said Paul Smith, senior risk management consultant at Travelers Europe. “Law firms that maintain strong structures for embedding their values into decision-making can better manage risks and prevent them from ballooning into problems that cause reputational damage. When a firm takes steps to weave their values into daily decisions, they not only protect themselves from unnecessary risks that consume their time and money. They also elevate their brand as an ethical, trusted resource.”
This article is provided for general informational purposes only. It does not, and it is not intended to, provide legal, technical, or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy issued by Travelers. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practices, checklists, or guidelines will result in a particular outcome. Furthermore, laws, regulations, standards, guidance and codes may change from time to time, and you should always refer to the most current requirements and take specific advice when dealing with specific situations. In no event will Travelers be liable in tort, contract or otherwise to anyone who has access to or uses this information.
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Sources
1
https://sproutsocial.com/insights/data/brands-creating-change/#about-the-data
