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Mark R. Kennedy - Shapeholders: Business Success in the Age of Activism

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Book:
Shapeholders: Business Success in the Age of Activism
Author:
Mark R Kennedy
Publisher:
Columbia University Press
Genre:
Books / Politics
Year:
2017
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Today, all it takes is one organizational misstep to sink a companys reputation. Social media can be a strict ethical enforcer, with the power to convince thousands to boycott products and services. Executives are stuck on appeasing stakeholdersshareholders, employees, and consumersbut they ignore shapeholders, regulators, the media, and social and political activists who have no stake in a company but will work hard to curb what they see as bad business practices. And they do so at their own peril.
In Shapeholders: Business Success in the Age of Activism, former congressman, Fortune 500 executive, and university president Mark Kennedy argues that shapeholders, as much as stakeholders, have significant power to determine a companys risks and opportunities, if not its survival. Many international, multi-billion-dollar corporations fail to anticipate activism, and they flounder on first contact. Kennedy zeroes in on the different languages that shapeholders and companies speak and their contrasting metrics for what constitutes acceptable business practice. Executives, he argues, must be visionaries who find profitableand probablecollaborations to diffuse political tensions. Kennedys decision matrix helps corporations align their business practices with shapeholder interests, anticipate their demands, and assess changing moral standards so that together they can plan a profitable route forward.

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Table of Contents

Shapeholders

Columbia University Press

Publishers Since 1893

New York Chichester, West Sussex

cup.columbia.edu

E-ISBN 978-0-231-54278-4

Library of Congress Cataloging-in-Publication Data

Names: Kennedy, Mark, 1957 author.

Title: Shapeholders: business success in the age of activism / Mark Kennedy.

Description: New York: Columbia University Press, [2017] | Series: Columbia Business School publishing | Includes bibliographical references and index.

Identifiers: LCCN 2016046846 (print) | LCCN 2017003119 (ebook) | ISBN 9780231180566 (cloth: alk. paper) | ISBN 9780231542784 (e-book)

Subjects: LCSH: Social responsibility of business. | CorporationsPublic relations. | CorporationsMoral and ethical aspects. | Corporate governance. | Strategic planning.

Classification: LCC HD60 .K48195 2017 (print) | LCC HD60 (ebook) | DDC 658.4/08dc23

LC record available at https://lccn.loc.gov/2016046846

A Columbia University Press E-book.

CUP would be pleased to hear about your reading experience with this e-book at .

Cover design: Jordan Wannemacher

Cover art: Neil Webb

This book is dedicated to Debbie, my true life partner, and our childrenCharles, Emily, Sarah, and Peter, of whom we could not be more proud.

Contents

1
Shapeholders

2
Social Activists

3
The Media

4
Politicians

5
Regulators

6
Align with a Purpose

7
Anticipate

8
Assess

9
Avert

10
Acquiesce

11
Advance Common Interests

12
Assemble to Win

13
Pope Francis, a CEO Worth Emulating

SOMETIMES THE SIMPLEST OF habits have the most profound impact.

In my family, every school year began with my six siblings and me lining up in front of the front door of our home and taking a first day of school photo. Perhaps this is a tradition in your family. After the photo my mother shared one piece of advice with us, the same advice every year. Her counsel was to be on the lookout for new students, those who were different from the others, and help them fit in.

This habit not only helped new kids in town, but it has been immensely beneficial to me. It led me to meet lifelong friends like Joe San and Ken Sun from Hong Kong. I have also found that cultivating a habit of perceiving differences and integrating those who are different into your circle is a good foundation for success in any walk of life.

When I was twenty-one, both my mother and I were delegates to the 1978 Minnesota Republican Party Convention. My mother was a single-issue voter. When deciding who we should vote to endorse, I was surprised that my mother decided against the candidate most zealous on her key issue and instead favored another candidate who, while affirming support for my mothers issue, also had a broader platform and therefore would have wider appeal and a greater chance of winning the election.

My mothers motivation was narrowly focused, but she took a very broad view in her approach. She instinctively understood that a candidates fixation only on her single issue would not lead to success, that advancing her one issue was more likely to be achieved by someone who perceived and embraced other concerns while pursuing that goal.

My father reinforced this idea of constantly seeking to bring others into your circle by teaching every child, grandchild, and mentee to look someone straight in the eye, give him or her a firm handshake, and say, Im _______, glad to meet you.

While I suspect many parents modeled the simple and easy to understand idea that good things happen from finding ways to unite with others for mutual benefit, my experience has been that this lesson is often left behind when people suit up for business or pursue politics.

Believing to my core that business can be a positive force for good, after two decades working in business I ran for Congress under the banner Kennedy Means Business as a businessman who was skilled at perceiving differences and finding a path to unity, of taking in the concerns of others as I advanced my own.

My mothers focus on attracting broad enough support to achieve results, not simply heated rhetoric to excite narrow interests, stuck with me. I understood that achieving desired outcomes in an electoral campaign required crossing the fifty-yard or midpoint line. Dancing in your own end zone or goal may be fun, but it achieves nothing. I focused on understanding the differences among voter segments and crafting an appeal that united them in support of my campaign.

During my campaigns I prohibited my staff from using the words Democrat and Republican in press releases. I counseled that if we cant explain the advantages of my position without resorting to partisan labels, we clearly are not explaining it in a way that will capture the swing voters who are essential to electoral success.

In the end, I beat the one in a hundred odds of defeating a four-term incumbent. I won by 155 votes out of a total of more than 290,000 votes. I would have lost if I had left the lessons of my youth behind.

As a congressman, I explored all sides and sought actionable consensus. A whole series of Hill rags automatically showed up in bulk at my offices front door each morningPolitico, Roll Call, The Hill, CQ Weekly, and the National Journal. To understand competing views, I supplemented these by ordering not only the New York Times and the Wall Street Journal to get the view from the left and the right, but also the Washington Post to get the broader Washington view, USA Today to get the mainstream America view, the Minneapolis Star Tribune to get the home-state view, and the Economist and the Financial Times to get the non-U.S. view.

My day began then as it does now with reading each publication, paying special attention to the contrast in how each topic was covered. What was the top story in one was buried in the middle of the B section in another. Competing newspapers headlines for the same event would give one the impression the papers were covering different topics. This habit helped me identify how I could frame my messaging and form my coalitions in ways that would push beyond agitation to achieve action.

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