Tom Corfman is a senior marketing consultant with Ragan Consulting Group, which helps firms set up government thought management packages.
Chief executives of worldwide firms don’t normally become involved in native politics, however CEO Chris Kempczinski of Chicago-based McDonald’s Corp. has proven there’s an exception: When a mayor’s approval ranking is about 25%.
“Whereas it might wound our civic delight to listen to it, there’s a basic sense on the market that our metropolis is in disaster,” he mentioned on Sept. 14, 2022, in a speech earlier than The Financial Membership of Chicago, an unique group of enterprise leaders.
Kempczinski by no means talked about Mayor Lori Lightfoot by title as he voiced broadly felt issues about crime, bemoaned Metropolis Corridor’s frayed relationship with the enterprise neighborhood and griped about taxes. He didn’t have to.
“His feedback probably will function a blueprint for any pro-business mayoral candidate who has but to emerge,” wrote the Chicago Tribune Editorial Board in reward of the speech.
5 months later, Lightfoot was on her method out, ending third in a crowded subject of 9 candidates.
In response to a listing of eight questions, a McDonald’s spokesperson declined remark, saying by e-mail, “We’ve got nothing extra to share at the moment.”
In some methods, Kempczinski’s speech was the kickoff of the Chicago mayoral election, probably strengthening opposition to the incumbent that was already brewing among the many metropolis’s company elite. It additionally affords an opportunity to assessment three factors that CEOs ought to take into account earlier than leaping into native politics. However first, some background about politics within the Windy Metropolis, the place Ragan Consulting Group is predicated.
Almost 4 years in the past, Lightfoot turned the third Black, second girl and first brazenly homosexual particular person to grow to be town’s mayor. A former federal prosecutor and massive legislation agency accomplice, she rode to an upset win in 2019 over outrage about political corruption. (Think about that in Chicago!).
Whereas worries about crime performed a key position in Lightfoot’s defeat within the Feb. 28 non-partisan election, she was additionally harm by perceptions that she did not ship on guarantees to reform authorities, improve transparency and alter police techniques. Layered on prime of all that was her combative character. Liberal voters, the core of her assist in 2019, deserted her on this election.
Two candidates are combating to succeed Lightfoot in what’s going to probably be a ferocious runoff election on April 4. Paul Vallas, a former CEO of the Chicago Public Colleges beneath Mayor Richard M. Daley who’s receiving sturdy assist from the enterprise sector, garnered practically 34% of the votes. Brandon Johnson, a county commissioner who’s backed by town’s highly effective academics union, the place he’s an organizer, collected practically 22%. In a metropolis the place race performs a job in politics, Vallas is white and Johnson is Black.
The 2 candidates supply sharply completely different visions of how one can run the nation’s third largest metropolis, particularly on crime. Vallas is campaigning on a law-and-order message, whereas Johnson guarantees to enhance public security by spending extra on social providers, psychological well being care, schooling and housing.
McDonald’s, with 2022 income of $23.22 billion, has an extended historical past within the Chicago space, from its first restaurant in a suburb in 1955 to its headquarters transfer from the suburbs to town in 2018. Kempczinski started his remarks by describing the financial influence if his firm left.
“Two billion {dollars} a yr is the financial contribution of getting McDonald’s headquarters right here,” he mentioned, repeating the quantity.
“What if McDonald’s wasn’t right here? It will be $2 billion that left town in a single day,” he mentioned, snapping his fingers.
The speech earned nationwide media protection. When reporters seized on Kempczinski’s implied menace to relocate the corporate’s headquarters, McDonald’s PR workforce clarified that the corporate didn’t intend to maneuver. One week later, the corporate purchased a full-page print advert within the Tribune, promising its continued dedication to town, and posted it to its web site.
Sarcastically, Kempczinski’s remarks about Chicago overshadowed his personal announcement that the corporate was transferring an innovation middle with 100 staff from a suburb to its metropolis headquarters.
At a time when customers proceed to need chief executives to be extra engaged in social points, the speech is a exceptional instance. It additionally raises not less than three key questions that CEOs ought to take into account earlier than plunging into native politics.
1. Are you able to win? “Don’t Make No Waves, Don’t Again No Losers,” was the title of a landmark 1975 e book about Chicago politics. The precept nonetheless applies and never simply to Chicago. Even with all of Lightfoot’s disadvantages, her defeat was hardly a positive factor when Kempczinski spoke out. 5 months between his speech and the election is a very long time in politics.
This doesn’t imply CEOs shouldn’t become involved in political points they aren’t sure to have an effect on. However the likelihood of a positive consequence is an element to weigh. Politics is completely different than social points, the place taking a stand can resonate with staff and prospects, particularly when coupled with a plan to take motion.
2. Who’s the viewers? The members of the Financial Membership enthusiastically acquired Kempczinski’s remarks.
In an indication of approval by many enterprise executives, The Wall Avenue Journal Editorial Board thundered, “When residents not really feel secure at a serious restaurant chain and a CEO points a public plea, social order is breaking down.”
However earlier than getting into the fray, CEOs have to be aware of how their stance might be acquired by different audiences. Simply ask Disney, which didn’t anticipate the barrage unleased by Gov. Ron DeSantis (R-Fla).
In Chicago, a white, male CEO criticizing a Black, feminine elected official well-liked amongst many African People can produce unintended penalties. In 2021, Kempczinski drew protests at McDonald’s headquarters after the publication of a textual content message to Lightfoot during which he blamed the mother and father for the capturing deaths of a Black little one and a Latino teenage as a result of they “failed” their kids. He apologized and met with staff.
The corporate additionally has confronted harsh criticism over alleged discrimination towards Black franchisees.
But Kempczinski and McDonald’s suffered no backlash from his remarks.
3. Do you’ve gotten your information straight? In these circumstances, the CEO’s numbers have to be bombproof.
Lightfoot fired again, in fact, saying, “What would have been useful is for the McDonald’s CEO to teach himself earlier than he spoke.”
The town’s crime statistics, whereas excessive, are bettering, the administration mentioned. And a report variety of firms are transferring to town or considerably increasing, contradicting Kempczinski’s declare that fewer firms are headquartered right here. Taxes have modified little since McDonald’s moved to town practically 5 years in the past.
Furthermore, stories by Crain’s Chicago Enterprise evaluating Chicago with different cities on crime and enterprise local weather supply a extra average image of town.
But Kempczinski’s message was so sturdy that any questions in regards to the accuracy of his claims acquired scant consideration.
CEOs should decide their points properly. Kempczinski’s speech was not with out danger, however probably had its supposed impact. With the run-off lower than a month away, will the McDonald’s chief government supply one other Chicago evaluation?
COMMENT
One Response to “3 factors CEOs ought to take into account earlier than leaping into politics”
Assault the attackers! That’s the PR technique that made Lightfoot a loser.
When you don’t assault, the general public query is how responsible your aspect is however your assault spotlights how responsible the attacker is! Did they inform each side or just one aspect? Did they inform the peril of the choice, how the general public would LOSE from what the attackers need?
What wins isn’t “we’ve nothing extra to share at the moment” however “THE PUBLIC DESERVES MORE HONESTY!” Venceremos! Equal rights is healthier than so many wrongs. Expert PR communication assist the underdog present the general public how the attacking canine is a son of a bitch.
Assault with all of your coronary heart. The PR Day by day programs educate how one can study extra and earn extra as a result of you recognize extra and might do extra. Even just a little information can imply large bucks due to prime administration’s cry in a disaster: Winners Needed!