All companies have a social impact
The co-founders at Basecamp miss the realization that every company has a social impact. Ignoring it will not lessen organizational tensions or raise productivity. Instead, leaders need to broaden perspectives for better decisions and social cohesion at the intersection of business and society.
Basecamp, a tech company delivering project collaboration solutions, has created a media stir by announcing that it will eliminate "societal and political discussions on our company Basecamp account." The two leaders of Basecamp seem frustrated by the lack of consensus on any issues of concern. They also want to separate work from society, so employees should tune out everything but the work to be done – productivity over a broader purpose and shareholders over stakeholders.
Social impact is embedded in every company.
Jason Fried, CEO and co-founder of Basecamp, made a short-sighted and inaccurate statement in his blog announcement. He declared, "We are not a social impact company."
Viewing a company as having no social impact is narrow-minded. Every company has a social impact, and the choice can be intentional or unintentional. Every employee is impacted through their compensation, how the organization treats them, and how their talents and skills are developed through projects and other initiatives. As Bob Chapman, CEO and chairman at Barry-Wehmiller Companies, states, "You can also have a profitable business model but really hurt people getting there." Businesses have a negative or positive social impact – it's a leadership choice.
Every employee is also a citizen, and societal issues impact them, too. It is too simplistic to think that society's problems distressing team members can be shut out during work hours. When discrimination happens in communities, it impacts individuals at work. When mass shootings occur in communities, it affects individuals at work. When our government institutions are attacked, everyone is impacted – at work, home, and in our society. The impact can be direct or experienced through interactions with neighbors and friends. We are connected, and we should stimulate strong links between citizens in our businesses and communities.
It's about individual choices and leaving individuals alone. Not really.
Jason Fried seems to think we are in the world alone. After all, in his view, it's about making individual choices. While there is a sliver of truth in this thought, we are never alone. Our personal choices impact others. Also, we make better choices when we share perspectives with a respectful and diverse group. We need to make choices as impartial spectators, considering the impact on those different from us.
David Heinemeier Hansson, co-founder & CTO at Basecamp, believes it is not their responsibility to change people. He states that there is "little chance of actually changing anyone's mind." Why do you have to change people's minds? I believe having a better understanding of an issue is productive and a good citizenship example to set. Today, we are too narrow in red and blue. Instead, we need more examples of encouraging a mixed purple perspective on ideas and solutions. We are stronger when we collaborate, compromise, and facilitate exchanges for understanding and achieving common ground.
Of course, there are exceptions… for the top two.
Issues relevant to their business can be discussed (although it is unclear if this can happen on their company Basecamp channels). The exceptions include antitrust, privacy, and employee surveillance. If an employee is unclear on these topics, they can reach up for guidance. While Basecamp leaders want to continue to engage in politics relevant to their business or products, they do not want to get involved in policies that impact their employees. It's about the shareholders, not the stakeholders.
More than a backward look at capitalism, this is apathetic and restrictive leadership. What is suitable for the top two leaders is not good for the rest of the 60 employees.
The two leaders are stressed out by the unpleasant political and societal issues that affect their employees. Therefore, they'll vacate their leadership responsibilities and let employees struggle individually with issues such as voter restrictions, growing climate change impacts, and discrimination.
Jason Fried and David Heinemeier Hansson lack willpower and character in their leadership. Unfortunately, it negatively impacts their team members.
Every corporation is a citizen.
Adam Winkler, UCLA law professor and author, outlines how corporations have pursued and won civil rights much earlier than many minority groups. With civil rights come citizenship responsibilities. Business leaders are responsible for encouraging thoughtful citizenship and social capital within their companies, especially when other sectors have become strident in their views. We need more places to promote an exchange of concerns, ideas, and policies. Company leaders can carve out lunch hours or after-work time to host meaningful conversations. It should not be about changing minds but broadening them.
Every company has a social impact.
While the conversations about stakeholder capitalism are a refreshing change, it is sad to see a good company like Basecamp take a big step backward to shareholder capitalism, ignoring how societal issues impact work. It seems these two leaders shifted to a self-centered way of thinking about their business and wealth. After all, in their minds, it is tough to tackle these societal issues, so let everyone figure them out alone. Meanwhile, get back to work.
Taking these actions is wrong-headed. Yes, it is uncomfortable to discuss societal issues, but they are not going away and will continue to impact employees. Rather than encourage broader perspectives, they are now putting boundaries around individuals and limiting the development of social capital and, consequently, social cohesion. In these troubling political times, progressive business leaders have begun to stand up to protect our institutions. While some continue to be a bright light forward, a few prefer to look backward, seeking comfort in their limited worldview.
Ignore Jason Fried and David Heinemeier Hansson. They are not leading. We need business leaders who understand their corporate citizenship responsibilities.
References
Buss, D. (2020, January 29). Love your people: The new respect revolution. ChiefExecutive.net.
Fried, J. (2021, April 26). Changes at Basecamp.
Hansson, D.H. (2021, April 26). Basecamp's new etiquette regarding societal politics at work.
Waterhouse, B. C. (2018, February 23). Review | How big business elites have funded and won political rights for corporations. Washington Post.