If a large portion of a company's customer base becomes involved in some type of protest, board members should monitor what unforeseen risks the public reaction to the protest issue may pose to the company.
Following the recent deaths of two American citizens at the hands of federal immigration agents during protests in Minneapolis, Minnesota, many businesses in the state issued public statements about how the tactics of agents tracking illegal immigrants create a volatile and dangerous environment for local businesses and their communities. As the Department of Homeland Security continues to implement immigration enforcement efforts across the country, boards may need to review their environmental, social, and governance (ESG) policies, paying particular attention to how CEOs and executives should respond to social and political issues.
CEOs and executives from Best Buy, Target, US Bancorp, 3M, and other Minnesota-based companies signed an open letter from the Minnesota Chamber of Commerce calling for “immediate de-escalation of tensions and for state, local, and federal authorities to work together to find real solutions” in the wake of the killings of Renee Good and Alex Preti during protests against U.S. Immigration and Customs Enforcement (ICE) operations in Minneapolis.
Responding to a tragic death as part of a group reduces the risk of community backlash and government retaliation. But corporate board members need to know that there are also risks to remaining silent on these issues. Companies should discuss internally to determine which course of action is best for each particular issue and act promptly at the appropriate time.
For example, a company like Home Depot, whose parking lots are targeted by ICE raids across the country, may need to publicly state its stance on immigration enforcement much sooner than a company like Verizon. Some companies' profits will be adversely affected by labor shortages due to immigration enforcement. Some companies may lose revenue because part of their customer base disagrees with their stance on immigration. The risks associated with this issue are real.
As companies review their ESG policies, there are several things board members should consider regarding immigration.
Consult with your legal advisor to develop an ESG strategy for immigration. Immigration enforcement stances and company policies regarding immigration must comply with current law. Have your company's policies kept up with the more aggressive changes in immigration enforcement in recent years? If necessary, seek outside consultants to ensure your company is in compliance with laws regarding the employment of foreign workers. Knowing the law can help your company address and prepare for government I-9 audits that verify an employee's authorization to work in the United States.
Convey the company's position and policy regarding immigration control. In some cases, there may be pressure from employees or shareholders to speak out on issues. Once the board and management agree on the company's position on immigration matters, communicate as much sensible information as possible to those stakeholders. Employees need to understand the company's position in case they are dealing directly with customers or clients. Shareholders must be informed if a company's position on immigration could affect its stock price.
Make an emergency plan for a protest against your company or an ICE raid on your facility. Issues such as immigration can have unintended consequences. Boards need to anticipate and plan for the worst-case scenario. How will your company respond to customer protests over its handling of immigration matters? What steps should employees follow if your company faces an ICE raid? Boards should prepare for these and other possibilities.
