Case-2: Organizational Politics

Politics is typically thought of as being connected to a government activity. However, it is suggested by Aransyah and Hetami (2021) that politics “is also an organizational activity to be associated with power and personal status” (p. 109). This second meaning of the word is what we are learning about in this Module.

According to the study of Aransyah and Hetami (2021), there are six indicators for when internal politics may occur: “unclear objectives, budget allocation, decision making, salary and promotion, power, and job dissatisfaction” (p. 109).

All organizations have internal politics. However, most organizations keep their political battles private and it is rare that the public will know the details about political intrigue within the major corporations.

In the 1960s, when the editor of The New York Times Magazine asked if corporations "have a social duty" to speak up, the head of U.S. Steel declared that's "quite beyond what a corporation should do" (Dokoupil & Finn, 2023, para. 3).

Things have changed quite a bit in the last 60 years. Companies no longer keep quiet about their political leanings or sides about social issues and wear the popular issues like value flags. The ones that do this most recently include Disney, Target, Budweiser (Bud Light), Nike, Levi Strauss, Amazon, Microsoft, Starbucks, McDonald’s, and Chick-fil-A. Some of these companies have met backlash due to their stand on issues while others have been lauded for taking a stand. Some of these companies have lost half the country as their customers because of the division of members in the country’s two main political parties. Only time will tell if the loss was a beneficial step in the right direction. Then the questions becomes, beneficial to whom?

Do some research online and you will quickly find stories about these and other companies embroiled in or leading an American revolution of social issues.

For this assignment, make sure to first carefully review the background materials regarding the causes of political behavior, types of political behavior, and the ethics of political behavior. Examples of the causes of political behavior include competition for resources, ambiguous organizational goals, lack of trust, and performance factors, although Aransyah and Hetami (2021) brought in five more indicators. Examples of types of political behavior include blaming others, selectively distributing information, managing impressions, and forming coalitions. Regarding ethics, consider the three main factors:

Does the political action violate individual rights?
Does it improve the welfare of those involved?
Does it increase distributive justice?
Once you have finished reviewing the background materials and have completed your research, select one of the mentioned companies and read up on their political intrigue, political behaviors, and organizational ethics. Then, write a 4- to 5-page paper addressing the following issues:

What individual and organizational factors might cause senior leaders to exhibit intense political behavior? Refer to some of the specific factors discussed in the assigned readings.
What types of political behaviors did your selected company's board members and CEOs exhibit? Be specific and use the types of political behaviors discussed in Chapter 10 of Luthans et al. (2021) and Aransyah and Hetami, (2021)..
What do you foresee for the future of organizational behaviors surrounding social issues for your selected organization (or others)?

Case Assignments are to be prepared in Microsoft Word and should be 4 to 5 pages, in addition to a cover page (course name and number, module number, session name, student name, and date prepared) and a reference list. The paper should be double-spaced, using 12 pt. type in the Times New Roman font. It should consist of a 3- to 4-sentence introduction, a body, and a 3- to 4-sentence conclusion, and use Trident's cover page. The reference list page must be in APA format, current edition, and contain 3 scholarly references (high-quality journal articles or textbooks).
Assignment content should include a brief introduction to the assignment, background information about the organization being studied, and discussion in terms of the concepts or theories being applied in the assignment.
Use headings and subheadings to improve presentation values.
Include both a References page and in-text citations. Attention is to be given to citing sources of information in-text as well as in the References page at the end of the paper.

Full Answer Section

   

There are a number of reasons why companies might choose to take a political stand. In some cases, companies may feel that they have a moral obligation to speak out on important issues. For example, a company that sells environmentally friendly products may feel that it is important to advocate for climate action. In other cases, companies may take a political stand in order to appeal to their target market. For example, a company that sells clothing to young people may choose to support LGBTQ rights.

The Impact of Companies Taking Political Stands on Their Customers

Taking a political stand can have a significant impact on a company's customers. Some customers may appreciate the company's stance and be more likely to do business with them. Other customers may be alienated by the company's stance and choose to boycott their products or services.

A study by the Pew Research Center found that 63% of Americans believe that companies should express their views on social and political issues. However, the study also found that there is a significant partisan divide on this issue, with 81% of Democrats and only 44% of Republicans believing that companies should express their views on social and political issues.

Companies need to be aware of the potential risks and rewards of taking a political stand. On the one hand, they may be able to appeal to a larger target market and build brand loyalty with their customers. On the other hand, they may alienate some of their customers and damage their reputation.

Examples of Companies Taking Political Stands

Here are some examples of companies that have taken political stands in recent years:

  • Nike: Nike has been a vocal supporter of LGBTQ rights and racial justice. In 2018, Nike released an ad featuring Colin Kaepernick, a former NFL player who was blackballed for kneeling during the national anthem in protest of police brutality. The ad sparked a boycott from some consumers, but Nike's sales ultimately increased.
  • Disney: Disney has also been a vocal supporter of LGBTQ rights. In 2022, Disney CEO Bob Chapek spoke out against Florida's "Don't Say Gay" bill, which prohibits classroom instruction on sexual orientation and gender identity in kindergarten through third grade. Disney's stance on the bill led to a boycott from some consumers, but the company has also received praise from many of its customers.
  • Chick-fil-A: Chick-fil-A is a fast food chain that has been known for its support of conservative causes. In 2012, the company's CEO Dan Cathy donated to organizations that oppose same-sex marriage. This led to a backlash from some consumers, but Chick-fil-A remains a popular restaurant chain.

Conclusion

Whether or not companies should take political stands is a complex issue. There are both potential risks and rewards to doing so. Companies need to weigh the potential benefits and drawbacks carefully before making a decision.

It is important to note that there is no one-size-fits-all answer to this question. The right approach for one company may not be the right approach for another company. Companies need to consider their own unique circumstances and their target market when making a decision about whether or not to take a political stand.

Sample Answer

   

Introduction

In recent years, there has been a growing trend of companies taking political stands. This is a departure from the traditional view that corporations should remain neutral on political issues and focus on their core business activities. However, companies are increasingly finding that they cannot ignore the political and social issues that are important to their customers and employees.