The Shifting Landscape of Corporate DEI and What It Means for Your Business

By: Diana Muggeridge, Senior Director, Strategic Planning

Companies are rethinking their DEI platforms under pressure from both sides, driven by activists like Robby Starbuck. Today, we explore what it means and how to navigate it.

What We See:

It’s not easy for companies to navigate their role in societal issues, and the shift in activity around diversity, equity, and inclusion (DEI) proves it. These decisions not only shape corporate reputation but can also have an impact on enterprise value.

“To be silent is to be complicit.” Netflix

“Stands in solidarity with you.” Reebok

“Neither love nor terror makes one blind: indifference makes one blind.” HBO

“Believe in something, even if it means sacrificing everything.” Nike

• 37% of the informed public claim awareness of companies’ actions towalk back DEI policies, driven primarily by Republicans (43%) compared to Democrats (35%) and Independents (23%).
• 50% of the top 20 publications reporting on the topic are from right-leaning publications like Daily Truth Report and Breitbart.
• 60% of the top 20 social posts with the most engagement came from right-leaning voices like DC Draino and Fox News.

What It Means:

The recent wave of anti-DEI activism, particularly from the right, signals that companies must recognize a new and expanding fault line in societal and political issues. This isn’t just a Robby Starbuck problem; it reflects a broader shift in how companies manage reputation, as both sides of the political spectrum now actively scrutinize corporate values and actions.

“In general, there is permission to push back now publicly and privately because of the high-profile cases … They have given us permission toretreat [on DE&I].” Head of Communications, Fortune 500 Healthcare Company, Purple Strategies Executive Interview

This is new terrain for many companies. Unlike traditional crises like recalls, where established playbooks exist, the societal and political pressures around DEI are fluid and unfamiliar. Companies are navigating a landscape where almost any action can ignite backlash from either side, impacting both enterprise value and reputation in unpredictable ways.

That’s all to say while Starbuck doesn’t fully represent the corporate world’s DEI problem, he has thrown gasoline on it.

Advocates of DEI aren’t taking these actions sitting down, and their pushback on Starbuck and retreating companies is gaining momentum. The Human Rights Campaign—one of the biggest targets in Starbuck’s crosshairs—has come out swinging against companies who have walked back their policies.

And other influential voices are also starting to more directly challenge the anti-DEI push.

“Activist investors are weighing how to push back on at least seven public companies that have cut diversity programs targeted by Starbuck, who initiated an online campaign earlier this summer seeking to prove DEI has no place in business operations.” Bloomberg

“Far right actors [ ] are attempting to bully corporate America [to back away  from DEI policies].” Rep. Steven Horsford, D-Nev., chair of the Congressional Black Caucus

All of this activity is against the backdrop of the informed public, who are relatively split around their beliefs toward corporate DEI initiatives: 56% believe companies should continue prioritizing it as part of their strategy while 44% believe it’s gone too far, according to September Purple Strategies polling. But deep partisan splits further complicate companies’ path to managing this issue, with 80% of Democrats supporting corporate DEI initiatives and just 33% of Republicans feeling the same.

What To Do About It:

Companies find themselves needing to perform a balancing act, weighing the needs of a wide range of stakeholders. If targeted, no or insufficient response will intensify boycott pressure while any corrections will generate their own aftershocks.

And it’s not just companies with overtly conservative customer bases that need to pay mind, now that Starbuck has proven his model with companies with more moderate and diverse customers of the likes of Ford and Lowe’s. Every major company should be preparing for pressure from internal andexternal stakeholders around their DEI practices.

Here’s our guidance on what they should keep in mind:

• Balance societal, financial and policy pressures. This issue isn’t just balancing between left and right customers. Overcorrecting around a societal issue—at the potential disservice of financial andpolicy priorities—can create a new problem while trying to solve the last one. Reputation, and by extension enterprise value, is best managed when these three forces are in harmony.
• Ignore the trap. On these issues, it’s in the activists’ best interests todrive polarization and to force companies into picking a side, when in reality, many aren’t in a position to align too strongly with one side or another based on their key stakeholder set. It is important for companies to do what is most authentic to their business model andstakeholders.
• Focus on real impacts. So far, Starbuck’s campaign has yet togenerate a reported impact on company’s financials. It’s been reported that much of the volume he’s generated has actually resulted from bots. Without underestimating his power, companies would be wise to take a long-term view when making decisions andnot overcorrect to immediate perceived pressure.
• Plan for the rebound. Given the pace at which these issues move, having a scenario plan is a non-negotiable to ensuring companies can act quickly if they’re facing acute pressure. Companies almost always plan for what to do after a trigger event. But with a live issue like this one, they also need to make sure they don’t get caught flat-footed by what happens next.
• Don’t believe that a statement alone solves the problem.Companies’ response plan should have a statement, but not be one. This issue is being waged on new media channels, so a statement alone won’t suffice. Companies should build thoughtful plans that consider their full suite of stakeholders, utilize the right deployment of channels and voices, and even consider the role of third-party engagement to insulate the company’s voice and counteract the pressure.

In the end, it’s not just about reputation; it’s about ensuring that companies protect and grow their enterprise value in the face of competing pressure.

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This article first appeared in Purple Point, our newsletter for perspectives and insights to navigate change and build enterprise value. Subscribe to Purple Point.

The earnings call: the most underleveraged tool in reputation management.

By: Jason Bargnes and Erica Goldman

When was the last time someone besides an analyst or institutional investor looked forward to an earnings call? Companies spend as much as 50% of their communications planning time focused on these quarterly events, but they often use them to communicate only one (albeit very important) slice of information about their overall value. Is this a missed opportunity?

What We See:

Most companies take a narrow view of earnings calls, focused only on updating shareholders and analysts about the company’s financial outlook. But these calls could be a powerful tool for building enterprise reputation equity. Purple’s research shows that quarterly earnings reports drive a significant portion of a company’s traditional media coverage, and multiple studies have shown that as much as 40% of a company’s market cap is based on reputation equity.

Given that earnings calls shape overall media coverage, they present a unique opportunity to reach multiple stakeholder audiences with a broader values story. However, many companies are not fully leveraging this potential.

• Earnings calls have barely evolved since the 1980s – they’ve just added presentation slides and video.
• Most companies deliver purely financial updates aimed solely at investors.
• Corporate financial teams often work in silos, disconnected from the teams that could help them tell a stronger story, like comms, brand, and external affairs.

Our analysis of recent earnings calls from the top 25 Fortune 500 companies showed that most organizations primarily share financial updates and often forego reputation topics entirely (e.g., impact stories or employee highlights that can help establish the character of a company). Even among companies that do share broader stories—including Apple, Cencora, and Marathon—purely financial, investor-focused topics dominate.

What It Means:

Earnings calls are powerful platforms, and too many companies are missing a vital opportunity to tell a compelling enterprise value story that resonates with all license-to-operate stakeholders, not just financial audiences.

• Earnings calls receive national media coverage that likely reaches most of your critical stakeholders including regulators, policy makers and influencers, and future talent. But if you only share your financial news, that’s all reporters will cover.
• Investors are looking for insights on how companies are planning for the future beyond just the numbers, by managing emerging technologies and sustainability.
• Even financial audiences are bored by profits-only updates. PwC’s Global 2023 Investor Survey showed that 77% of investors want to hear more than just financials during earnings calls.

What You Should Do:

To transform your earnings calls from a common procedure into a powerful reputation-strengthening tool, start here.

Craft a Stakeholder-Centric Narrative:
Seize the opportunity to reach more stakeholders. Frame financial results within your company’s mission, vision, and values to tell a story that resonates beyond the profit margins. Recognize that financial outcomes may sometimes be at odds with the expectations or concerns of certain stakeholders.

Know Your Audience(s):
Remember, stakeholders are human too. Conduct and leverage audience research to understand what they want to hear from you and how to frame the issue to ensure your messages meet them where they are.

Integrate Financial Communications:
Break down silos! Integrate your financial communications team with comms, brand, government affairs and external affairs for a cohesive, impactful narrative across all channels that will speak to all of your license to operate stakeholders.

Engage and Amplify:
Treat your earnings call like a state of the union or political convention—energize your audience, build momentum, and reinforce your brand narrative for long-lasting impact.

We see two opportunities to optimize the investment made in earnings calls:

• Take greater advantage of the captive investor audience to deliver more compelling content and a message that goes beyond performance. Give them the opportunity to assign additional value to your character and connectedness to the future.
• Recognize that your earnings call is your biggest and best channel to reach additional audiences directly or just as importantly, to drive amplification of your message through other impactful channels, without further cost.

Are you ready to help your company optimize these opportunities? So are we. Just drop us a line and subscribe to our Purple Point newsletter here for more updates.

By: Anya Benenson

Many corporate leaders are likely celebrating the Supreme Court’s recent decision to overturn the case that established Chevron deference; companies tend (understandably) to be displeased with the impact of stringent agency decisions on their operations. But while the end of Chevron may make it easier for some companies to do business, it won’t change the need to carefully manage corporate reputation.

Chevron was a forty-year precedent that required judges to defer to a federal agency’s reasonable interpretation of ambiguous statutes. The Court’s June 2024 decision in Loper Bright Enterprises v. Raimondo scales back federal agencies’ power to interpret the laws they administer in favor of the courts. The decision to end that practice is sure to have wide-reaching implications in industries ranging from healthcare to oil & gas, but consumers’ expectations that companies conform to their values remain a threat to corporate reputation.

While today’s DataPoint (below) tells us that public permission to speak on societal issues not connected to a company’s business has dropped, Purple’s research also shows that roughly 80% of the American public still believes that companies can and should speak out on social issues – a number that has not changed in over two years.

It is unsurprising, given that statistic, that consumer boycotts and viral social media attention can cause sustained reputational damage when corporations make public statements or business decisions contrary to their stakeholders’ values. Companies have encountered public backlash stemming from a range of values-based issues from both sides of the political spectrum.

Reputation challenges may come in the form of a labor dispute or a boycott in response to a company’s public position (or silence) on a hot-button issue. In view of consumers’ beliefs that companies should speak out about social issues, meeting stakeholder expectations while protecting corporate reputation can be a difficult needle to thread.

The shift away from strict, agency-led federal rulemaking likely to result from the end of Chevron may create opportunities for corporations to operate with more freedom, but not without risk to their reputations. Business decisions contrary to stakeholder values remain likely to activate consumer and employee activism. That potential backlash – coupled with a media landscape that can be hostile to corporate interests – remains a significant threat to corporate reputation that can’t be cured by a weakened administrative state.

 

DataPoint

While a majority of the public (80%) thinks companies can and should stand up / speak out on issues – and that net number has not changed over the last three years – the proportion who think companies can speak on ANY issue that aligns or conflicts with their values has dropped 10 points in 2024 – with public sentiment shifting toward expecting companies to limit their engagement to issues connected to their business/brand. 

 

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This article first appeared in Purple Point, our newsletter for perspectives and insights to navigate change and build enterprise value. Subscribe to Purple Point.

When you work on issues of corporation (and even when you don’t), you notice that there are A LOT of trial lawyer ads like this one out there, trying to recruit plaintiffs to their case.

The claims made in ads like these, which look like they could have been created in 1 minute by AI, are believable to 51% of the Informed Public; 69% say they would be concerned if they were using the product discussed in the ad.

So it’s probably not surprising that this ad: which we created in 1 minute using AI, tested comparably to the real ad in our same poll: 42% found it believable, 62% said they would be concerned if they used this (not real) product.

The data:

• 69% say they trust jury verdicts when it comes to the safety of products (such as chemicals, foods and cosmetics) to say what is safe and what is not (almost as high as those who say they trust the FD (78%) and higher than those who say they trust the company making the products (59%)
• The fake ad performed almost as well as the real ad: 
  • Fake ad: 42% found it believable, 62% said they would concerned if they used the product discussed in the ad, 39% said they found the ad trustworthy
  • Real ad: 51% found it believable, 69% said they were concerned if they used the product discussed in the ad, 49% said they found the ad trustworthy

The threat of mass tort litigation is ever-present for many companies, but Plaintiffs’ attorneys are often able to wreak havoc on a company’s reputation with just a small ad buy on social media recruiting plaintiffs to their class.

Source: Purple Strategies Omnibus Survey of the US Informed Public. N=1,000. July 17-22, 2024.

 

 

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Purple Strategies is the thought leadership partner of The CEO Forum Group and Transformative CEO Summit series, featuring CEOs of leading companies discussing creative ways to solve today’s most pressing challenges. The Transformative CEO Summit on Healthcare brought together CEOs in the industry to explore future models of healthcare, the role of leadership, culture and supply chain agility in healthcare transformation, and the impact of AI.

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As the old year gave way to the new, healthcare executives gathered for the third annual Transformative CEO Summit on health to discuss some of the most pressing challenges in the space. Here are four topics that are on the minds of healthcare CEOs as 2024 begins.

(1) AI’s rapid advancement is changing the face of healthcare for both patients and medical professionals.

While AI has been in use in healthcare for decades, industry leaders at December’s Summit – including healthcare practitioners, administrators, and partners who serve this industry – expect these technologies to expand exponentially in the coming years on a range of applications – from reducing doctors’ research time and administrative work and addressing staff burnout, to advancements in behavioral health and improved disease diagnoses and treatment recommendations. Notwithstanding their concerns about setting proper boundaries for AI in healthcare (more on this below), experts believe that AI’s integration into healthcare operations will continue to revolutionize healthcare, leading to improved efficiency, better patient care, and significant progress in addressing critical health issues.

(2) The future of healthcare will revolve around personalized care and a deeper integration of AI in home-based services.

Leaders see healthcare moving toward virtual and home-based services, a major democratizing shift that is patient-driven and that will increasingly rely on technology for support and advancement. The goal is to make healthcare more inclusive, customized, and responsive. In addition to developing and embracing the technologies to support this transition, the move toward virtual/home-based healthcare will also require building capability and agility in the supply chain of healthcare products and services.

(3) AI should augment, not replace, the human element in healthcare.

Noting the broader fears some people have over AI’s potential to displace human-driven work and processes, industry leaders stress that effective integration of AI in the healthcare space should prioritize augmenting human involvement, not substituting it entirely. Human oversight of AI-driven processes will be necessary to maintain accuracy, transparency, and accountability where human judgment and decision making are required – particularly around as yet unresolved privacy and security concerns. The experts discussed that as this technology is rapidly developed and as those in this field race to deploy these technologies, there is an imperative for leaders to reflect on the applications and limitations of using technology in this space, especially as regulation struggles to keep pace.

(4) The greater focus on preventive care stems from a shift in healthcare paradigms toward proactive and patient-centric approaches.

The future of health will continue the shift in focus from sick care to well care. Experts at the Summit discussed the degree to which preventive care is often more cost-effective for all involved – by focusing on early detection and intervention, healthcare systems can potentially reduce the financial burden associated with treating chronic illnesses in later stages. Beyond the financial benefit, early identification and management of health issues contribute to better patient outcomes, often helping avoid the progression of diseases and resulting in improved quality of life and increased lifespan. The integration of technologies like AI allows for more personalized and predictive healthcare including the ability to analyze health data, identify risk factors, and enable timely interventions. A preventive care model also aligns with a patient-centered approach, focusing on individual wellbeing and empowering individuals to actively participate in their health.

 

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Explore more from Purple Strategies in the Transformative CEO Summit series:

CEOS PIVOT FROM HEALTH CRISIS TO HUMAN CONNECTION | 2021 (READ)

CEOS STRIVE TO BUILD A BETTER WORKPLACE POST-PANDEMIC | 2021 (READ)

CEOS SHARE VIEWS ON ESG CHALLENGES AND OPPORTUNITIES | 2021 (READ)

CEOS EMBRACE EXPECTATION TO GO BEYOND CORPORATE INTO SOCIETAL LEADERSHIP | 2022 (READ)

CEOS FOSTER THE DYNAMIC PULL AT THE HEART OF BREAKTHROUGH INNOVATION | 2022 (READ)

CEOS UNLEASH THE POWER OF THE INDIVIDUAL | 2022 (READ)

PRIORITIZING PURPOSE IN THE NEW ERA OF CAPITALISM | 2023 (READ)

CEOS EMBRACE A MORE PUBLIC ERA OF LEADERSHIP | 2023 (READ)

CEOS EMBRACE RISK TO REVEAL COURAGE IN THE FACE OF CHANGE | 2023 (READ)

What would you do if you weren’t afraid? Four ways today’s CEOs are breaking out of their comfort zone. 

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Purple Strategies is the thought leadership partner of The CEO Forum Group and Transformative CEO Summit series, featuring CEOs of leading companies discussing creative ways to solve today’s most pressing challenges.

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As leaders, CEOs are constantly being asked to lead in situations that are outside of their comfort zone and present considerable risk. CEOs need to make daily decisions about issues like rapid advances in truly transformative technology like AI, how to manage ongoing geopolitical and macroeconomic headwinds, and meeting the ever-increasing expectations of key stakeholders. How leaders respond during these times can set up opportunities that benefit the business and its employees in the long-term, change an industry for the better, and even drive society forward. Meeting the moment requires courage in the face of uncertainty.

From discussions among CEOs at The CEO Forum Group’s latest Transformative CEO Summit, Purple Strategies identified concrete actions that leaders from across industries are taking that create the conditions to display courageous leadership in the face of change.

(1) Build and empower a team 

While CEOs are expected to own and lead their vision, transformative leaders acknowledge they are not doing it alone. The pursuit of that vision is a dynamic process that involves fostering collaboration, a shared sense of purpose, and reliance on a trusted team to provide courage and support.

First and foremost, stresses Steve Jones, Global Chairman & CEO of Allied Universal, is the importance of building a team of leaders with a mix of talent from inside the company/industry and outside of these spaces. Assembling a diverse and talented group with varied skills and experiences – including those within and outside the company – encourages more effective leadership over assembling a leadership team solely from within the organization, which can pose challenges such as limiting innovation or the development of an insular, exclusive culture.

That CEO focus on empowerment expands beyond the composition of a leadership team to a company’s broader culture as well. Nearly half of Summit CEOs surveyed selected collaboration and empowering team members to use their strengths and be leaders as the most important area to prioritize to improve the culture of their organization.

(2) Cultivate your own confidence and character 

CEOs often cultivate their confidence and character through courageous decision making. Every CEO at the Summit reported that they make decisions outside their comfort zone. Six in 10 said they do so frequently.

CEOs tap into different sources to drive that confidence for making tough decisions. Xavier Mufraggi, CEO of SVN International Corp., cites data as a source of confidence: While making a decision that might not be popular takes courage, he says, using data to back up results creates more confidence in sticking with a choice. Mara McNeill, CEO of Toyota Financial Savings Bank, notes her very appointment to the role as a source from which she derives confidence: “If I was put in this position, I’m supposed to be here.”

Scenario planning is another place CEOs develop confidence for their decisions. Creating a plan for how to operate in difficult situations, even in scenarios that might be unpredictable, is a key to successful leadership.

 (3) Foster psychological safety and a growth-mindset culture 

CEOs play a crucial role in developing an organization’s capacity to provide employees with psychological safety, which is critical to a willingness to take risks and contribute ideas. One way CEOs foster that needed safety is by creating a culture of consistently asking for feedback, starting with leadership. Modeling that behavior reduces stress on those who may feel uncomfortable sharing feedback unprompted and helps ensure important feedback is able to be received.

Another step CEOs are taking is putting developing leaders in new and challenging scenarios to help foster a culture of experimentation where all ideas are heard. Marc Miller, CEO of Universal Health Services, has seen that a leader’s cross-training and exposure to things outside of their daily responsibilities creates a sense of empathy when working with others.

CEOs also advise that, to create an open employee culture, failure should be embraced as a means of learning and growing. Humility on the part of leaders and CEOs in admitting mistakes, showing a willingness to learn, and seeking feedback are all important in strengthening trust with employees and unlocking the growth mindset CEOs want to see in their organizations.

(4) Embrace continuous learning 

Today’s modern leaders embrace continuous learning as a way to keep pace with – or ideally stay ahead of – change. AI adoption is an excellent current example of this in action. CEOs see AI as enabling businesses to analyze far more data than before, empowering leaders to use a data-driven approach to grow the business and stay ahead of industry changes.

Todd Simon, Chairman of Omaha Steaks, spoke of the benefits of AI in helping to upskill employees. His company is already using AI technology to scan sales calls to identify the highest performing call reps, which in turn saves the business time and money. AI can also identify gaps in trainings, skill sets and culture.

Rather than avoid AI out of a sense of fear or risk, courageous CEOs are eager to deepen their understanding of AI before facing changes: four in ten Summit CEOs report feeling that investing in education and training around AI is the best way to unlock the promise of AI within their organization. By proactively leveraging AI-driven capabilities, CEOs can integrate new and accelerated opportunities for continuous learning into their business.

 

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Explore more from Purple Strategies in the Transformative CEO Summit series:

CEOS PIVOT FROM HEALTH CRISIS TO HUMAN CONNECTION | 2021 (READ)

CEOS STRIVE TO BUILD A BETTER WORKPLACE POST-PANDEMIC | 2021 (READ)

CEOS SHARE VIEWS ON ESG CHALLENGES AND OPPORTUNITIES | 2021 (READ)

CEOS EMBRACE EXPECTATION TO GO BEYOND CORPORATE INTO SOCIETAL LEADERSHIP | 2022 (READ)

CEOS FOSTER THE DYNAMIC PULL AT THE HEART OF BREAKTHROUGH INNOVATION | 2022 (READ)

CEOS UNLEASH THE POWER OF THE INDIVIDUAL | 2022 (READ)

PRIORITIZING PURPOSE IN THE NEW ERA OF CAPITALISM  |  2023 (READ)

CEOS EMBRACE A MORE PUBLIC ERA OF LEADERSHIP  |  2023 (READ)

Four Aspects of the Chief Executive Role Gaining Visibility

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Purple Strategies is the thought leadership partner of The CEO Forum Group and Transformative CEO Summit series, featuring CEOs of leading companies discussing creative ways to solve today’s most pressing challenges.

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The role of CEO has evolved beyond leader and decision maker in the corner office to take on a more public persona that embodies how the company wants to show up in the marketplace and with employees. The shift from a more company-centric, internal focus to leading in the spotlight was a prevailing theme shared among CEOs at the latest Transformative CEO Summit in June.

CEO attendees shared four parts of their jobs that are attracting more exposure, and how they’re continuing to build and lead successful companies when all eyes are on them.

(1) The Human Behind the Title

CEOs describe the expectations they’re feeling from employees, investors and others to be more authentic, approachable and vulnerable while running their companies.

In her keynote remarks, Esi Seng, CEO of Tate’s Bakery, said her goal was to inspire a community of CEOs to leverage “the power of real.” As she described it, “That means admitting your mistakes, not knowing all the answers, making dad jokes, and letting people see your flaws.” Employees will reciprocate this behavior, she added, and the exercise will help the business by resulting “in meaningful discussions and questions that provoke change and elevate the thinking.”

Finding the right balance of leadership and accessibility can be a challenge, but CEOs who master the art of authenticity while leading their companies can earn tremendous trust and confidence in the process.

(2) The Business Roadmap

With the rise of employee activism, CEOs are required to be more transparent and proactive with their workforces than ever.

Lynn Tilton, CEO of MD Helicopters, described her views on leadership, “Your greatest responsibility is to take people on that journey with you, to lead from the front.” She highlighted why it is so critical for CEOs to communicate about where the company is and where it’s going, adding, “It is not about what you accomplish yourself. But how many lives are better because you did what you did.”

In a period of heightened interest in what companies are doing and where they are going, CEOs are turning toward transparency and openness to keep employees engaged in the company’s journey.

(3) The Mechanics of Creating Culture

With five generations now in the workforce, CEOs describe the need to more actively and intentionally build an inclusive culture. The things that historically drove in-office company culture – serendipitous moments and impromptu conversations – are less prevalent with remote work and distributed workforces. To strengthen culture now, CEOs have to be even more deliberate.

Giordano Albertazzi, CEO of Vertiv said of his experience, “It’s about being extremely intentional in driving the right culture or the desired culture given where the organization is…  This is to the extent that I couldn’t fathom before I was in this current role, but you have to be relentless and very structured to make sure that that culture seeps through the organization.”

Culture is perhaps even more critical in a distributed and hybrid workforce, and the efforts CEOs are making to create strong ones are now more tangible and on display.

(4) The Leader’s POV on Emerging Technologies

Charged with steering their companies to a stronger future, CEOs have long needed to stay apprised of emerging technologies. However, what has changed is the expectations for them to communicate with key audiences about those technologies and their potential impacts. At this Transformative CEO Summit, the topic of artificial intelligence (AI) surfaced across discussion groups, with moderators and attendees seeking the CEOs’ perspectives on how they are thinking about the new technology and forecasting what it could mean for their industries.

While some cautioned against AI’s misuse, many CEOs described the promise they see from this emerging technology.

Adam von Gootkin, CEO of Highclere Castle Spirits, said, “By embracing AI, we can use the tool more effectively to tell our story and give people an immersive experience.”

Separately, Adam Goldstein, Executive Chairman of DLT Global, also added his support, “AI-related tools contain the opportunity to express who you are as a brand much better to customers and potential customers than anything that has existed up until now.”

CEOs are no strangers to identifying and evaluating new technologies. But this Summit suggests that they are being asked to do so sooner and even more publicly.

As the CEO role continues to evolve, what used to be unseen parts of their job are becoming more visible. Important audiences are expecting more insight from executives into their company strategy, culture, future-proofing of the organization, and even their own very humanness and flaws. To build trust and meaningful relationships with these stakeholders, CEOs are learning to embrace the spotlight and guide their businesses to success with even more openness and transparency.

To learn about other dynamics impacting the reputation landscape facing top executives, visit Futurecasting by Purple Strategies.

 

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Explore more from Purple Strategies in the Transformative CEO Summit series:

CEOS PIVOT FROM HEALTH CRISIS TO HUMAN CONNECTION | 2021 (READ)

CEOS STRIVE TO BUILD A BETTER WORKPLACE POST-PANDEMIC | 2021 (READ)

CEOS SHARE VIEWS ON ESG CHALLENGES AND OPPORTUNITIES | 2021 (READ)

CEOS EMBRACE EXPECTATION TO GO BEYOND CORPORATE INTO SOCIETAL LEADERSHIP | 2022 (READ)

CEOS FOSTER THE DYNAMIC PULL AT THE HEART OF BREAKTHROUGH INNOVATION | 2022 (READ)

CEOS UNLEASH THE POWER OF THE INDIVIDUAL | 2022 (READ)

PRIORITIZING PURPOSE IN THE NEW ERA OF CAPITALISM  |  2023 (READ)

Seasoned Purple client counselors, managing directors and leaders Stephen Smith, Ashley Gibaldi and Nate Byer have been named partners in the firm.

Building on recent steps to expand and strengthen its leadership structure amid continued growth, Purple Strategies is excited to announce that three long-time leaders at the firm have been added to its partnership group: Stephen Smith, Ashley Gibaldi, and Nate Byer.

“For 15 years, Purple has helped some of the world’s biggest brands protect and create enterprise value through strategic reputation management. Stephen, Ashley and Nate have been consistently and increasingly integral to developing strategy and delivering insights that guide our clients on that journey,” said Steve McMahon, Purple co-founder and CEO. “As founders, one of the great joys Alex and I have experienced is watching the next generation of Purple leaders develop into world class strategists and leaders in their own right. Today our clients could ask for no better partners than Stephen, Ashley and Nate.”

About Stephen Smith

As the leader of Purple’s Strategic Planning group, Stephen leverages his experience across health care, logistics, manufacturing and technology both for reputation renewal and for challenges in public affairs.

Stephen joined Purple in 2009 with a strong background in digital innovation. And he’s played a key role in transforming the company’s service offerings by integrating digital services into its core operations, reshaping how its campaigns are conceived and executed.

In his current role, Stephen dives deep into client engagements, crafting insights from primary research, and shaping innovative campaign activations. His ability to adapt to shifting business landscapes, dedication to proactive problem-solving, and commitment to producing high-quality work mirror the core values of Purple. Stephen’s background prior to Purple – working with Senators Bill Frist, Mitt Romney, and Lamar Alexander – ensures that his approach to corporate reputation accounts for both politics and policy.

Stephen graduated from Princeton, earning a Bachelor of Arts degree in politics and political theory.

“Seeing Stephen lead a debate or workshop about client strategy is a thing to witness and never gets old – his brilliance and love for solving complex challenges is on full display, and every client and colleague he works with is better because of it. His leadership of our new Strategic Planning group, and now as a firm partner, is an acknowledgement of the value he has added to our firm since its very beginning.” – Steve McMahon

About Ashley Gibaldi

Ashley serves as an indispensable senior counselor at Purple Strategies helping the world’s leading companies across industries build and protect reputational equity ahead of and during issues or crises.

She excels in transforming multifaceted data into actionable insights, grounding everything we do from strategic planning to identifying persuasive messaging to highly targeted activations. Prior to joining Purple in 2010, Ashley worked at Edison Research on the highly visible National Exit Polls for a consortium of major news networks like CNN, NBC and ABC.

Ashley’s work has allowed companies to navigate unique and challenging environments to achieve business and desired outcomes. She has experience leading engagements with companies navigating relationships with unionized workforces. Ashley’s impact goes beyond leading client solutions as she’s equally dedicated to leading and growing Purple’s talent.

“There’s a big difference between saying you are insights-driven and actually putting insights at the heart of your work, and Ashley does that as well as anyone. Her unwavering commitment to being led by insights and her role in developing that skill in others have made her a valued and trusted partner to clients and colleagues alike. She has a unique ability to ask the right questions and challenge assumptions in ways that make the work and those around her better. For years, Ashley has brought so much to our firm and to her clients, and that’s why we are so proud to elevate her to partner. She is an incredibly valuable new addition to our partnership group.” – Steve McMahon

About Nate Byer

Nate leads the planning and execution of complex reputation management and renewal programs for a wide range of Purple clients. As the head of the firm’s Client & Campaign Expertise Group, Nate also works to build high-performing teams that generate value for clients as they seek novel ways to drive their businesses forward.

Prior to joining the firm, Nate pushed the limits of digital stakeholder engagement and led major advocacy and organizational change campaigns while at Blue State, an issue-focused agency specializing in grassroots mobilization. Before that he worked on numerous other campaign efforts including as a consultant to President Obama’s first presidential campaign while at GMMB, a campaign manager on environmentally focused legislative efforts, and as Press Secretary on a winning U.S. Senate race. He also spent two years working in and out of Afghanistan as part of President Obama’s stabilization efforts in the country with USAID’s Office of Transition Initiatives.

Nate graduated from Wesleyan University’s College of Social Studies and holds an MBA from Johns Hopkins University. He joined Purple Strategies in 2017.

“Nate’s impact on Purple’s success runs the full spectrum, from leading and managing critical client engagements, to mentoring and developing rising Purple talent, and now, as the new leader of our largest expertise group. The skill and rapport he’s built with client executives as a strategist and coach for reputation-building efforts has not just impacted their organizations but also enhanced their professional and personal brands as executive leaders within those companies. This is yet another way that Nate and Purple support our clients—as individuals—to become among their most trusted advisors. We’re delighted to now include Nate among our partnership group.” – Steve McMahon

 

“Becoming a partner at Purple doesn’t mean you’ve run a great race and you’ve come to the end but rather that you’ve accepted a great responsibility to give even more than you have before to uplift this enterprise and support the people in it,” said Alex Castellanos, Purple co-founder and Chairman. “Ashley, Nate and Stephen have done tremendous work in their many years at Purple and we are privileged to have them with us now as partners.”

In addition to Steve McMahon and Alex Castellanos, the three new partners join a partnership that includes Kristen Morgante, the firm’s Managing Partner and Chief Operating Officer; Jillayne Smyth Rogers, Chief Creative Officer; John Gatti; Chris Durlak; and Rory Cooper.

Five Insights from CEOs at the Third Annual Transformative CEO Summit

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Purple Strategies is the thought leadership partner of The CEO Forum Group and Transformative CEO Summit series, featuring CEOs of leading companies discussing creative ways to solve today’s most pressing challenges. 

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Millennials and Gen Z are increasingly choosing to buy from companies that align with their values, just as employees seek meaning in their professions. These ideas both connect to the idea of companies’ purpose – and they are not new. But the new era of capitalism, in which companies prioritize many stakeholders (and not just shareholders), was on the minds of several top executives and CEOs at The CEO Forum Group’s third Annual Transformative CEO Summit in March.

Their conclusion? Prioritizing their purpose to serve multiple stakeholders in addition to making profits enables companies to survive challenging circumstances and thrive in changing conditions.

In our role as thought leadership and polling partner of the CEO Forum and the Summits, Purple Strategies identified five insights from CEO discussions during the Summit that explain how purpose plays a more vital role than ever in how executives lead their businesses.

1) Purpose is about more than creating a good—it’s about delivering stakeholders a greater good.

In a Summit poll, CEOs universally (97%) agreed that changes are needed to make capitalism work for all stakeholders.

Companies want to find ways to add value to all their stakeholders, including communities, Genpact CEO Tiger Tyagarajan said, adding that this stakeholder mindset attracts employees and adds long-term value to shareholders. Genpact helps global companies undergo transformation.

For shareholders, the primary purpose of a company certainly is profit. But to maintain long-term profitability and build an organization for the future, transformative CEOs maintain that companies must create a mission-driven culture, be empathetic and authentic with their employees, maintain open communication with suppliers, help communities through philanthropic initiatives, and communicate the intangible value of the goods and services they provide to customers.

For Ravi Saligram, CEO of Newell Brands, the company’s purpose isn’t just about manufacturing a new Sharpie color or Yankee Candle scent. It’s about bringing joy, confidence and peace of mind to customers. The purpose of GE Aviation Services is to invent the future of flight, lift people up and bring them home safely, its CEO Russell Stokes said. For business magnate Lynn Tilton, former CEO of MD Helicopters, the military helicopter manufacturing company’s purpose is to serve those who served for the love of country.

2) Purpose unlocks employees’ passion so that they become the company’s “secret sauce.”

When employees feel that they are going to more than a job and that they have a stake in the business, they will perform miracles and create long-term shareholder value. To affect this result, leaders must treat employees like they are the company’s “secret sauce,” Saligram said. Others agree on the need to prioritize employee belonging.

“I’d rather have B players that drive the right culture, the right attitude and the right leadership than a team of A players with their own selfish attitudes,” Xerox CEO Steven Bandrowczak said.

A simple but unifying purpose can galvanize these needle-movers within the company, which in turn turbocharges productivity and innovation.

3) Purpose is the “North Star” that guides leadership through change.

CEOs agree that they need to lean into the company’s “North Star” when external factors force them to change. For example, companies have been grappling with the benefits and drawbacks of artificial intelligence and machine learning. While it allows them to simplify their supply chains and processes, thereby reaching their goals faster, there are potential pitfalls such as losing human connection. When thinking about how to reckon with those tradeoffs, CEOs look to their purpose to guide them.

When leaders face issues, from the COVID-19 pandemic to inflation to the Russia-Ukraine War, companies must rely on their “North Star.”

4) To further the company’s purpose, leaders need to communicate with empathy, transparency and authenticity.

Empathy is understanding how people see the world, not just how they feel. That has widespread effects on how CEOs run their businesses. CEOs must keep this in mind when communicating, for example, the impact technology has on employees in their organizations and communities at large. While technology pushes organizations to operate more efficiently, human relationships keep them running like well-oiled machines.

To that end, leaders must communicate with empathy when explaining not only the purpose and goals of technological changes, but also how those changes will personally affect employees and benefit the team (and not create winners and losers). And because thinking about goals as opposed to thinking about people activates a different part of the brain, leaders must mindfully communicate their vision with understanding.

“CEOs must be real and not appear artificial because people respond to realness, which is underused in a time of crisis,” Dr. Stephen Klasko, former CEO of Jefferson Health, said.

5) Leaders must leave their ivory towers to understand how the public views their purpose.

Purpose weaves through the fabric of an organization, not just in the C-Suite. To understand how purpose is perceived and acted upon within companies, transformative CEOs say leaders need to seek out the view beyond the corner office.

In addition to reviewing numbers and spreadsheets, leaders must walk the halls and get out in communities to fully grasp how their business is doing. This qualitative information will help their businesses better align with their customers’ values and needs.

Often, executives will hear things on the ground that might not show up in reports. CEOs can gather feedback to see if they are fulfilling their purpose, and if there are any discrepancies or omissions, they can alter the company’s course. Xerox, for example, hosts small town halls to understand how they are doing. Bigelow Tea has a State of the Union with employees every three to four months where CEO Cindi Bigelow shares her appreciation for her employees, conveys the importance of community over self, and talks about the company’s success.

 

A company’s purpose affects how it operates: from hiring and retaining the best talent, to motivating younger employees, to fostering a hustle culture, to propelling through uncertainty. Prioritizing customers, unlocking employees’ passion, maintaining principles, communicating with empathy, and leaning into purpose during times of change will help companies be successful in the new era of stakeholder capitalism.

 

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Explore more from Purple Strategies in the Transformative CEO Summit series:

CEOs Pivot From Health Crisis To Human Connection | 2021 (Read)

CEOs Strive To Build A Better Workplace Post-Pandemic | 2021 (Read)

CEOs Share Views On ESG Challenges And Opportunities | 2021 (Read)

CEOs Embrace Expectation To Go Beyond Corporate Into Societal Leadership | 2022 (Read)

CEOs Foster The Dynamic Pull At The Heart Of Breakthrough Innovation | 2022 (Read)

CEOs Unleash The Power Of The Individual | 2022 (Read)

The firm has tapped experienced Purple leaders and executive-level additions for key appointments and new roles in support of its people, clients and continued growth.

Solidifying the structure of the organization to support continued dynamic growth has been a key priority for Purple Strategies in recent years. The firm announced today several key appointments and new roles to help Purple efficiently grow and develop during its next chapter.

“As we approach our 15^th year as Purple, having grown from a small startup to a firm of 150 and growing, we’re intently focused on maintaining the density of talent and the collaborative culture that has been the foundation of the deep client partnerships we’ve built,” said Kristen Morgante, Purple Strategies Managing Partner and COO. “Over the past two years we’ve been thoughtful in working through how we can scale what makes Purple so special to fit not just the size we are now but also the firm we’ll be three, five and even 10 years into the future. The new structure we’ve created, organized around expertise, will allow us that freedom to scale. And we are exceedingly fortunate to have a cohort of talented leaders who are passionate about Purple stepping into new roles and helping to bring this reimagined Purple to life.”

Leading the firm’s new expertise groups are some of Purple’s most gifted and seasoned strategic leaders: Nate Byer, Client & Campaign; Crystal Benton, Communications; Jillayne Smyth-Rogers, Creative, Content & Production; Bradley Engle, Paid & Audience Solutions; Denise Brien, Research; and Stephen Smith, Strategic Planning. These leaders will guide development of Purple team members and Purple thinking alongside their client leadership roles.

“CEOs and other executives turn to Purple as partners in navigating growth, change and challenges, knowing our unique approach and deep bench of reputation strategists will help them and their companies be their best selves,” said Steve McMahon, Purple Strategies CEO. “Our newly defined expertise groups, with the guidance of these Purple leaders, will help ensure our unique Purple thinking continues to drive our work and client offerings as we grow.”

Purple’s leadership is also being strengthened with key appointments in operations, including three new additions to the firm. Colleen Connors, who comes to Purple most recently from The ONE Campaign where she was Chief Talent Officer, and prior to that was Executive Vice President, Global Talent, for Porter Novelli, has joined the firm as its first Chief People Officer. Ben Seto, most recently CFO of the American Petroleum Institute and before that CFO of Ankura Consulting Group, joins the firm as Chief Financial Officer. Jackie Le, joining Purple from accounting roles in an AM Law 100 firm, is the firm’s new Controller. In an internal move, Purple managing director Rebecca Ballard, who has led communications, marketing and engagement for the firm, has been named Purple’s first Chief of Staff. These appointments build on the firm’s recent announcement of veteran media and marketing executive Angela R. Bundrant as head of brand and business development.

“As part of our reimagining of Purple’s structure, we worked to build out the operations side of the organization to a level of talent and experience that could match the dynamic growth of our client work and expertise, and I’m so pleased we’ve been able to achieve that,” Morgante said.