The role of the employer has evolved in recent years, with a range of expectations varying in workplaces, communities, and regions across the country. Increasingly, employers are contemplating its role—if any—on a range of social, racial, and economic issues locally, statewide, and nationally. Recognizing this trend and with interest in understanding the perspective among Massachusetts-based employers, the Roundtable recently hosted a conversation among a small group of members on the heels of the Supreme Court decision overturning Roe v. Wade. The discussion focused on business engagement on these issues and how companies respond, if at all, internally and externally. Other issues were also on the minds of members such as the global pandemic, repeated and senseless shootings, and economic headwinds with whispers of a recession. A collaborative discussion unfolded to address the question: What’s the role of employers in an ever-changing world?

As the Roundtable’s most recent Future of Work Survey reported, employers are leading with greater empathy and embracing the new norms resulting from remote work, from isolation to chaotic schedules. In the workplace, many employees have turned to their employers for reassurance on company values and what employers believe is the right thing to do. In fact, polling conducted by The CEO Forum reports 39% of surveyed Americans believe companies should be vocal on any issue that aligns or conflicts with the values of the company; and another 39% believe companies should be vocal only for issues specifically connected to the company brand or business. In turn, business leaders see an increased role among employers to engage on social, racial, and economic issues because it’s viewed as a moral imperative, good for business, what employees expect, and/or aligns with company values.

Companies, however, are navigating these unprecedented waters without a playbook, and therefore, may still question if, when, or how to best lead through these circumstances. Some have also decided to not weigh in, publicly or internally. For those employers who feel compelled to respond to recent events, as several Roundtable members have done, questions arise from the corner office to HR and legal to public affairs: If we respond to this, what about responding to that? Is this too divisive of an issue? Is this outside the scope of our business? How do we engage with employees in one region while we know the sentiment is different in another regional market? Do we share a statement internally, externally, or both?

Among Roundtable members, all roads seem to lead to the workforce—the talent today, untapped talent for tomorrow, and the rising talent for the future. Many employers are learning how to support their employees in the face of all this change, and how to communicate with them not only in Massachusetts but around the country and world. Employers are also considering what is the company culture that needs to be fostered and maintained to attract, retain, develop, and diversify talent so all employees and future employees have a sense of belonging, regardless of their background.

So, what is the role of employers in an ever-changing world? Our discussion with members revealed five themes:

  • Employee Prioritization: Employers engage on these issues primarily to be responsive to, and supportive of, employees. Yes, they are concerned about customers and shareholders, however in a survey of those who participated in the discussion, more than half prioritized employees as the primary driver for their engagement.
  • Fortitude: CEOs and corporate leaders need fortitude to engage on these issues, both internally and externally, and must align their position with their stated corporate values while also be willing to take a stand and withstand backlash. Moreover, sometimes it may not be relevant for employers to speak—their voice may not always be needed. As one Roundtable member said “Taking a stance, or declining to take a stance, can/will draw backlash in some form. [We] have to be prepared for that, learn from it, and make adjustments.”
  • Market Variation: The complexity of operating in varying markets presents challenges in developing engagement strategies for a company, depending upon the different dynamics in each market. A message delivered in one jurisdiction might be received by employees, policymakers, and others completely differently, and with different consequences, in another jurisdiction in which the company operates. Therefore, engagement strategies may vary between markets, making consistent messaging difficult.
  • Internal Communications: Given the primary focus on employees, many companies prioritize internal communications for these issues over public statements. While these activities are less likely to grab headlines, they are valuable engagement tools with employees, particularly through Employee Resource Groups (ERGs) and other internal employee engagement strategies, while also being credible and authentic to a company’s culture and values.
  • Backlash: In Florida, Disney lost a tax break for publicly supporting “Don’t Say Gay” legislation. In Texas, proposed legislation would bar corporations from doing business in Texas if they pay for abortions in states where the procedure is legal. In West Virginia, five major financial institutions are being barred from new state business for engaging in activity that was interpreted as boycotting the fossil fuel industry. Roundtable members expressed concern about this growing trend and the added pressure it creates for employers to determine when to speak out on issues impacting their employees. The potential for backlash may lead more employers to remain quiet on social, racial, and economic issues. As one Roundtable member said, “CEOs need to ask themselves where does this lead and does it end?”

The Roundtable intends to continue this conversation, providing various frameworks for decision making and how corporate responses may impact the Massachusetts economy. As the decision to overturn Roe v. Wade demonstrates, the employer voice is critical as public policy changes; such issues impact employee well-being and employer engagement is complicated. The Roundtable will continue to pursue business engagement strategies for members to share best practices and provide guidance and resources for employers to better determine their role in a rapidly changing work environment and world.