Cathy McGee, Trinity Business School Finalist in the CoBS 2024 Student CSR Article Competition, takes an interesting perspective on the role and responsibility of businesses in ensuring a counter-weight to increased social fragmentation. 

To Be or not to Be Ethical? The Dilemma of Political Polarisation by Cathy McGee.

In recent times, the phenomenon of political polarisation has been growing on a global scale, with increasing support for extremist parties both on the right- and left-wing spectrums. In many cases this political extremism has led to violence, such as the 2021 January 6^th US Capitol Attack in the USA and the Dublin riots in Ireland in November 2023.

Prior to this riot, Ireland had generally been viewed as welcoming towards migrants, but this event marked the beginning of a host of anti-immigrant protests and burning of buildings by a small minority. During the Dublin riots, many iconic businesses such as Arnotts and Asics suffered a lot of damage, as well as looting. Occurrences like these demonstrate the existential risk posed to businesses of political polarisation, as in cases like this, law and order suffers a enormous strain, and conditions make business operations challenging.

But what does the term ‘political polarisation’ really refer to? Well, Britannica defines it as “the division of a country’s entire population into two diametrically opposed political camps” or in simpler terms creating a divisive mindset of ‘them’ versus ‘us’ in a domestic environment. Political polarisation has implications for all of society’s stakeholders If you look at a general public level, families and friends can become estranged due to their widely differing views. In fact, there are many who argue that countries such as the US are even in danger of another Civil War.

The Role of Social Media

Social media has played a huge role in creating this divisive world state in which we find ourselves, and there are many people who are calling for Social Media companies to take responsibility for the promotion of ‘fake news’ and disinformation.

A key aspect of the increase in political polarisation is the lack of clarity around truth and the fact that claims are not verified in the majority of cases, so people can get away with saying whatever they like. Also, recently in documentaries such as ‘The Social Dilemma’, many people who have worked within big tech companies such as Meta and Alphabet have spoken out about the negative effects that social media platforms and the internet can have on society in general, such as short videos on social media acting as a strong rallying cry to protest and the creation of echo chambers, in which people only receive recommended content that reinforces their beliefs.

A Brookings report conducted after the Capitol Hill insurrection of 2021, found that social media is not the primary cause behind political polarisation and there are increasing calls for more legislation around the spreading of disinformation. Social media also gives a platform to conspiracy theorists, who otherwise would not be able to spread their wild theories.

Globalisation

We live in a globalised world, and even though some would argue that deglobalisation is gaining more traction, the butterfly effect (Lorenz’s idea that “the flap of a butterfly’s wings might ultimately cause a tornado”- the idea that small actions can have a very big effect (Dizikes, 2011)) is still clearly visible from world changing events such as the global Covid-19 pandemic, from which every country in the world suffered.

This increased global interconnectedness creates less barriers for international travel and also facilitates easier internationalisation for businesses, but on the flip side, the increasing number of migrants in many countries is worsening the polarisation situation, as some of the native population become worried about the increased competition for resources and lack of investment in infrastructure to support the increased number of people living within a community.

Pressure to take a stance

Business has become a politicised environment, in which on one-hand consumers expect businesses to take a stance, but when these businesses do take a stance, they often receive negative repercussions from stakeholders who hold opposing views. An example of this was Gillette’s 2019 ad campaign entitled ‘The Best Men Can Be’, which caused a debate among whether Gillette had any right to involve itself in a political movement such as the #Metoo movement.

One way in which companies can mitigate the effects of this criticism is by ensuring that they employ a diverse workforce who act as a sounding board for any stance that the business wishes to take on controversial issues and so can be minimised (Reeves, Lefevre and Quinlan, 2021).

In the current climate of two major conflicts (Russia-Ukraine and Israel-Palestine) in many countries there are increasing calls to pick a side, and many multinational companies have taken the decision to exit controversial markets such as Russia. In the case of Israel and Palestine, the BDS (Boycott, Divestment and Sanctions) movement is viewed by many as being an effective way of putting pressure on Israel to respond to concerns about Palestine through economic pressure.

There are also many consumers who consciously choose brands based on their political stances, such as Patagonia and their heavy emphasis on sustainability. With this type of consumer, often they will perceive the neutrality of a business as equivalent to being opposed to their views, and therefore neutrality could result in a lot of negative Public Relations within this market segment.

Going with the flow or going against the tide

There are many occasions when there are businesses that are faced with a very difficult decision – should they follow the same policies as other businesses in their country, or should they stick to their values and identity as a company and take a stance which may lose them customers? A perfect real-life example of this conundrum is the case of the US company Ben & Jerry’s decision to exit the Occupied Palestinian Territory due to ethical concerns.

This decision very much went against the US policy of Israeli support. Ben & Jerry’s is owned by Unilever who had differing stances on the Israel-Palestine situation and therefore stopped Ben & Jerry’s exit from the market by selling the rights to the brand within both Israel and the Occupied Palestinian Territory (Unilever, 2022).

The role of international organisations

Organisations that unite countries such as the EU, NATO or the G7 can help to bring countries that at times have very little in common together, while putting aside their differences, in order to work towards the common good.

Although it also should be noted that even though these organisations bring countries and ideologies together, they can also be exclusionary, such as the case of Turkey and EU admission. Turkey has for years been trying to join the EU, but to no avail. Membership of entities such as the UN ensures that countries can be held accountable when they are involved in unethical behaviours.

Where do global issues such as Climate Change fit into all of this?

Even though the experts are more or less resoundingly calling for climate action in order to limit the negative effects of climate change, disinformation, as a result of political polarisation, is querying the reality of the threat of climate change.

A fragmented world cannot tackle issues that require complete global cooperation. However, climate summits such as the United Nations Climate Change Conference (also known as COP) play an important role in ensuring that many countries, even with differing views on Climate issues, participate in dialogue.

Useful links:

• Link up with Cathy McGee on LinkedIn
• Read a related article: Divided We Fall: The Ripple Effects of Political Polarization in Society
• Discover Trinity Business School, Trinity College Dublin
• Browse the TBS programme portfolio and apply.

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