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Each new day seems to bring a fresh story of a CEO, politician, or other leader landing themselves in hot water by speaking out on a controversial or provocative topic, whether it’s on DE&I, employee motivation and productivity, maternity leave, remote working, or another issue altogether.
Harvard Business Review has observed this trend – which it calls CEO activism - for several years now. Back in 2018, Bryan Moynihan, CEO, Bank of America told the Wall Street Journal: “Our jobs as CEOs now include driving what we think is right.” Indeed, countless CEOs have come out swinging with their perspective on areas such as race, gender identity, remote working, unionization, worker rights, and politics. This is mirrored by the growth in political polarization in the U.S.
As this leadership style becomes more popular, HR and leadership development leaders must consider ways to manage the level of controversial leadership in their company and protect their workforce from harm.
Why are controversial leaders on the rise?
Well, firstly, employees simply expect their CEOs and business leaders to speak out. 60% of respondents to Edelman’s 2022 trust barometer said that they expect CEOs to speak out on the controversial social or political issues that the employee cares about. The numbers are higher for specific topics such as jobs and the economy (76%), wage inequality (73%), and climate change (68%). So long as the leader has their interests at heart, employees are eager for them to speak out. Silence, in the case of many, speaks volumes.
However, plenty of CEOs are also happy to speak out on provocative topics because they are passionate about the issue. Many will remember in 2014 when Chick-fil-A CEO Dan Cathy shared his view that gay marriage is wrong. More recently, in 2023, CEOs from Google Deepmind, OpenAI, and other organizations co-signed a statement on AI safety. Many business leaders recognize their influence and are not afraid to act on it.
A more skeptical view is the old adage that there’s no such thing as bad press. Controversial views can drive engagement on social media, boost the profile of a leader, and keep them as ‘relevant’ in the eyes of the public. When their comments spark debate, they continue to make the headlines, and reap the benefits of celebrity status. Even Donald Trump’s appearances in court appear to improve his ratings in the polls. Being unafraid to speak out on controversial issues can help business leaders to develop their personal brand. Companies and HR teams should consider that business leaders have a growing list of case studies showing how embracing controversy could boost their personal brand.
The cost of controversial leaders
Controversial leadership can quickly spiral into disengagement, frustration, and even public condemnation. When employees see leaders at any level taking controversial stances on topics that directly affect their wellbeing – be it organizational, societal, or political issues – it risks alienating that individual and damaging their trust in the company. Musk’s controversial ultimatum and management style upon taking over X – formerly Twitter – saw hundreds leave the company in a mass exodus.
The line between activism and controversy is increasingly thin. And the line between controversy and toxicity is thinner still. Employee wellbeing and engagement are therefore at risk when business leaders are happy to ‘provoke’ or attack controversial topics head-on without the due level of care and attention.
Controversial leaders sow seeds of divisiveness and create toxic us-versus-them cultures within organizations, argues Tony Gigliotti, Senior Director, Talent Management & Organizational Development at UPMC. “They may pursue their own agenda without considering the consequences to others on the team or within the overall organization,” he argues. “Controversial leaders can create a highly stressful and competitive environment for employees, which may lead to burnout, low productivity, silos and infighting, and turnover.”
This in turn can “set the tone” for aspiring leaders within the organization which Giliotti argues can perpetuate this issue by creating a toxic cycle as new leaders emulate what they’ve observed and learned.
Controversial leadership can also be a one-way path to uncertainty. In extreme cases, CEO statements have seen stock prices experience major fluctuations. “At their worst, controversial leaders who act unfettered and without a moral compass may cause damage to the organizational brand and increase legal risk for the organization,” adds Gigliotti.
Disruption, not controversy, is the path forward
Many leaders who are perceived as controversial may argue they are unafraid of disruption and are passionate about their freedom of speech – which of course they are entitled to.
Joseph Varner, Chief People Officer, Woodside Homes, argues controversial leaders can be valuable when they are captivating, innovative and shake the status quo. However, they do represent a conscious choice and companies must offer clear communication about this path should they choose to take it. Whilst they have extremely high expectations, are passionate about their ideas, and are natural born winners, they can split your organization in half.
“Any organization that choses this path, has to understand that it will be a rollercoaster ride of ups and down,” Varner says. “You will lose people, hopefully the folks you want to lose however if executed properly, you will achieve your desired results, and then some. The best way to navigate risk is clear communication and to be transparent.”
Disruption can no doubt be positive when properly managed and conducted in pursuit of development, rather than divisiveness. Gigliotti suggests there is a difference between a controversial leader and a disruptive leader.
“A controversial leader conjures images of someone who purposefully creates divisiveness to pursue their narrow interests without adding value to their teams, customers, or overall organization,” he explains. “However, a disruptive leader shakes the status quo with vision and purpose and has intentions to create value, improve outcomes, and elevate their teams. Disruptive leaders can be direct and resolute, yet they balance this approach with integrity, care, and compassion.”
Companies should focus on making sure their leaders, rather than pushing their agendas on others, pursue disruption by outlining a compelling vision or journey of excellence, change, and renewal.
Gigliotti suggests companies should leverage performance evaluations and check-in conversations to provide direct feedback to the controversial leader with examples of how their volatility is affecting their reputation and credibility; the team’s morale, health, and productivity; and the organization’s brand. “Don’t sugarcoat the message: Be transparent and explain that continued volatile behavior will not be tolerated and will have consequences.”
He also advises options such as predicating rewards for leaders based on behavior alongside outcomes, administering a multi-rater assessment (e.g., 360-degree assessment,) and professional coaching if the leader is open to feedback.
Controversial leaders will continue to make the headlines and filter into our organizations. It's up to HR to curtail this trend.
