Why Shaping Social Evaluations Is Now a Leadership Imperative

Abstract This Handbook provides practitioner and academic insight to help identify how social evaluation matters to businesses, organisations, and leaders. This introductory chapter provides the context. It first identifies four societal issues where companies should expect social evaluations of their organisation to form; second, it highlights the factors that make decision-making more challenging than in the past; and lastly, it provides a point of view on how leaders can respond effectively. A decline in consensus around globalisation, coupled with increased polarisation, makes social evaluation more critical for business. Boards increasingly recognise that the ability of a business to access markets, secure the best talent, or build customer demand can hinge on managing social evaluation effectively. Many issues matter, but there are four that are almost universally relevant for global organisations: geopolitics, ‘culture wars’, climate change, and artificial intelligence. For global businesses, establishing a legitimate position on these issues is often highly contested and difficult, especially where cultures and norms come into conflict when assessed at global, regional, or local levels. Leaders need to manage these issues in a context marked by ever faster information flows, fragmented media, shifts in patterns of trust, an increasingly politicised workforce, intensifying activist demands, and increased transparency. Concepts such as materiality and purpose can help leaders think through the issues. In addition, leaders need to set up their organisation to have the internal and external connections and relationships necessary for identifying issues, then making, and implementing, well-informed decisions at the necessary pace.