Reid Hoffman pushes back on the idea that business leaders should stay silent on political issues to avoid risk. He argues that feeling fear is the precise indicator that courage is required, and leaders have a responsibility commensurate with their power to speak up for society.
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Every act of courage—from leadership decisions to personal relationships—involves uncertainty, risk, and emotional exposure. The desire to be brave without being vulnerable is a fundamental, unwinnable conflict.
When CEOs face pressure to speak on political issues, acting as a unified group, like the 69 Minnesota CEOs did, provides safety in numbers. A coalition is harder for political actors to single out and punish than an individual executive.
Despite possessing immense wealth that provides insulation ('F You money'), many business leaders avoid criticizing the administration. They fear becoming a target, a risk that ordinary citizens like activist Renee Good take while billionaires do not.
Courage cannot be demanded or simply listed as a corporate value. A leader's key role is to be a 'context architect,' creating the organizational conditions for brave behavior. This includes allowing for failure, resourcing experimentation, and embodying courage personally, thereby enabling the entire organization to act bravely.
When facing controversy, McKinsey's leadership first asks where they should be humble and learn from mistakes (like their opioids work), and where they should be courageous and push back against criticism they disagree with (like their work in hard-to-abate climate sectors).
Stakeholders demand courageous leadership but foster a culture of intolerance. By failing to distinguish between major offenses and minor infractions and "canceling" leaders for mistakes, the public itself disincentivizes the very courage and authenticity it seeks, creating a paralyzing circular problem.
Bozoma Saint John argues that modern audiences expect corporate leaders to have and express a point of view on important issues. Avoiding a stance to prevent risk is no longer an option. Taking a stand and dealing with potential backlash is now an integral part of an executive's job.
Contrary to common belief, feeling fear is not what prevents leaders from being courageous. The real barrier is the defensive "armor"—behaviors like micromanagement or feigned intensity—that leaders adopt when afraid. The path to courage involves identifying and shedding this armor, not eliminating fear.
True corporate values are steadfast principles that guide a company regardless of the political or social climate. Values that are easily discarded when they become controversial are not core values but rather branding exercises. This inauthenticity risks significant consumer backlash when exposed.
Drawing lessons from former CEO Hank Paulson, David Solomon emphasizes that a leader's most crucial function is to maintain a clear direction—a 'compass pointing north'—and make the right call, even when it is unpopular or goes against the strong consensus of the room.
