Why most corporate and tech chiefs are saying the bare minimum about events in Minneapolis

Hello and welcome to Modern CEO! I’m Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning.

The corporate response to the Trump administration’s immigration enforcement actions has been muted at best. After the killings of two U.S. citizens by federal law enforcement in Minneapolis, the CEOs of more than 60 Minnesota-based companies issued a carefully worded letter calling for “an immediate de-escalation of tensions.” Target’s incoming CEO Michael Fiddelke sent a video message to employees calling the events “incredibly painful.” Apple CEO Tim Cook, who was lambasted for attending a White House movie screening hours after protester Alex Pretti was shot and killed, said he was “heartbroken.”

Few executives have been willing to criticize ICE’s sweeping clampdown, which has also resulted in the detention of U.S. citizens, refugees, and others legally in the country. OpenAI CEO Sam Altman came close, saying in a note to employees: “What’s happening with ICE is going too far. There is a big difference between deporting violent criminals and what’s happening now, and we need to get the distinction right.”

Corporate tepidness is strategic and, according to those who work with CEOs, unlikely to change. Whether they are willing to admit it or not—see this exchange between JPMorganChase CEO Jamie Dimon and Zanny Minton Beddoes of The Economist—CEOs are afraid of retaliation by the administration and backlash from activists who may feel statements in response to current events are either too “woke” or not full-throated enough. As a result, many companies are staying on the sidelines.

Fear and chaos

Communications experts say CEOs will never go back to the volume of commentary or commitments companies issued in the wake of George Floyd’s murder and the racial justice marches that followed. “In 2020, clients frequently asked us how best to weigh in on these kinds of issues,” says Jim O’Leary, North America CEO and global president of communications firm Weber Shandwick. “Today, there is a greater focus on assessing the risks of engaging.”

Another CEO adviser I contacted, who asked to remain anonymous so he could speak freely about a topic that many deem sensitive, says corporate leaders can and should speak out on issues that impact “the overall standing and reputation of U.S. businesses,” and affect employees, customers, and shareholders. “The goal for businesses in these moments should be to talk to their stakeholders—employees, customers, investors—not to garner headlines,” he adds. “It is about corporate and leadership values, not scoring points.”

Let’s be clear: The events unfolding in Minneapolis and other cities around the country are impacting businesses. “Silence isn’t neutral. It’s expensive,” says Reshma Saujani, founder and CEO of Moms First, which held a virtual call after the killing of Alex Pretti that attracted thousands of moms who discussed grassroots responses, including national strikes such as the one organized last Friday. “Letting this chaos continue is fiscal malpractice. Everyone I know is distracted. People feel scared. Workers are disappearing. Productivity is dropping. Local economies are taking a hit. You can’t run a healthy economy based on fear and chaos.”

CEOs may or may not wish to speak out about the killings of Pretti and Renee Nicole Good or the clashes in the street. But executives at every level need to be willing to support civil liberties and the rule of law, which are the very underpinnings of democracy and capitalism. If more CEOs rise to meet this moment, we may see what true leadership looks like.

Taking a stand

Has your company responded to the ICE crackdowns, and if so, how? Send your responses to me at stephaniemehta@mansueto.com, and we’ll publish excerpts in an upcoming newsletter.

Read more: CEOs speak out. Or not.

• CEOs who shy away from defending voting rights do so at their peril
• E.l.f.’s Tarang Amin is doubling down on board diversity
• We asked Minnesota’s biggest companies about ICE