Politicization Isn t Sustainable | City Journal
Our paper is one among a number of findings suggesting that virtue signaling is ineffective. For example, some research shows that companies boosting their corporate giving to charities that advance the CEO s interests end up reducing the firm s value through reductions in the shareholder valuation of firm cash holdings. Other research shows that low-performing CEOs can defer getting replaced by donating to charities affiliated with a large fraction of the firm s board members. How many executives have issued virtue-signaling statements to distract from their own poor management?
The implication for organizational decision-makers, whether in business or journalism, is to leave politics to its own domain. Notwithstanding any potential short-term benefits, politicizing heretofore neutral issues ultimately backfires not to mention its adverse effects on our already-polarized society. Companies should stick to their mission, whether that s providing exemplary service in a restaurant or creating user-friendly software. Their business, and their country, will thank them.
Ineffective, and boring.