Business Management in An Election Year

As a business, navigating politics is always tricky. But especially in an election year, business management poses its own unique challenges, as companies prepare for the future, and moderate their public stances to avoid alienating customers and stakeholders. For smaller companies, tactful maneuvering and responses are particularly important.  

Strategic Foresight and Managing Risk 

Author and political analyst Jeff Bush commented on how companies can best position themselves for financial freedom in an election year. “Reacting to changes is no longer sufficient; foresight is crucial,” Bush urges. 

“Diversification, risk management, and policy awareness form the trifecta of effective business strategy during election years,” a Forbes article comments. 

To effectively manage potential crises related to events like the US election, companies must monitor political and security developments as they happen. By adopting comprehensive risk assessments and scenario planning, integrating threat monitoring with crisis management, and updating security assumptions, companies can proactively protect their assets and personnel amidst the political uncertainty of the election.

With tax and policy implications varying vastly between political parties, continual appraisal of public sentiment and market behavior is paramount. Prior to President Joe Biden stepping down from this year’s election, there was speculation that markets were already predicting a Trump victory come November. With current Vice President Kamala Harris the presumptive Democratic nominee, these conditions are sure to change, and companies need to keep their ear to the ground. 

Taking a Public Stance 

Companies also need to adeptly navigate if and when to take a political stance. During the 2020 election, CEO of Goya Foods Robert Unanue praised Donald Trump, and consumers weren’t happy about it, as many called to boycott the brand. 

In a recent survey by MIT Sloan, about 71.5% of respondents disagreed with the proposition that companies should avoid political statements. Only about 7% responded that companies should not make political statements. The remaining 21.5% of respondents were neutral. 

Many argue that political involvement can garner consumer support and loyalty. Others fear that silence on such topics might be worse than taking a stance. Ultimately, it’s important to know your consumer base to best appeal to their preferences.  

Vogue recently became more politically active by hiring a new Political Correspondent, Jack Schlossberg. Jack, a grandson of JFK, has been receiving lots of media attention for his strong social media presence and new Vogue article. Jack shares political takes online and encourages his viewers to engage in thoughtful, educated political discourse. 

Viewers are enthralled with Jack, and it seems Vogue has found a political angle that fits their brand identity. Yet, the if, when, and how of whether companies should make political statements should be determined on a case-by-case basis. 

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