Harvard Case - United Way: Taking a Public Stance on a Controversial Issue
"United Way: Taking a Public Stance on a Controversial Issue" Harvard business case study is written by Anthony Goerzen, Luke Fiske. It deals with the challenges in the field of Strategy. The case study is 9 page(s) long and it was first published on : Apr 15, 2016
At Fern Fort University, we recommend that United Way (UW) adopt a strategic approach to address the issue of "Taking a Public Stance on a Controversial Issue." This approach will involve a careful assessment of the potential risks and rewards associated with taking a stance, a clear articulation of UW's core values and mission, and a comprehensive communication strategy that engages stakeholders and builds trust.
2. Background
The case study revolves around United Way, a non-profit organization facing a critical decision: whether to take a public stance on a controversial issue, specifically, the potential impact of immigration on local communities. This decision is fraught with complexities, as it could alienate some donors and supporters while potentially attracting new ones. The main protagonists are:
- Brian Gallagher: President and CEO of United Way Worldwide, grappling with the ethical and strategic implications of taking a public stance.
- United Way Local Chapters: Facing diverse local contexts and potential backlash from taking a stance.
- Donors and Supporters: Holding varying opinions on the issue and potentially reacting differently to UW's stance.
3. Analysis of the Case Study
This case study can be analyzed through the lens of several frameworks:
1. Stakeholder Analysis: UW needs to consider the diverse stakeholders impacted by its decision, including donors, beneficiaries, local communities, employees, and the media. Understanding their perspectives, priorities, and potential reactions is crucial for informed decision-making.
2. SWOT Analysis: Analyzing UW's strengths, weaknesses, opportunities, and threats can provide a clearer picture of the potential benefits and risks associated with taking a public stance.
- Strengths: UW's strong brand reputation, extensive network, and community engagement.
- Weaknesses: Potential for alienating donors, risking financial stability, and facing criticism from opposing viewpoints.
- Opportunities: Gaining new supporters, strengthening community engagement, and becoming a leader in addressing social issues.
- Threats: Negative media attention, boycotts, and financial losses.
3. Porter's Five Forces: Analyzing the competitive landscape can help UW understand the potential impact of its decision on its competitive position.
- Threat of New Entrants: High, as new organizations can emerge to address specific social issues.
- Bargaining Power of Buyers: High, as donors can choose to support other organizations.
- Bargaining Power of Suppliers: Low, as UW primarily relies on volunteer labor and donations.
- Threat of Substitute Products: High, as various organizations address similar social issues.
- Rivalry Among Existing Competitors: High, as non-profit organizations compete for resources and support.
4. Corporate Social Responsibility (CSR): Taking a public stance aligns with UW's mission of addressing social issues and promoting community well-being. However, it requires careful consideration of the potential impact on stakeholders and alignment with UW's core values.
4. Recommendations
UW should adopt a strategic approach that balances its commitment to social justice with its need to maintain financial stability and stakeholder support. This approach should include:
1. Develop a Clear and Consistent Messaging Strategy: UW should articulate its stance on the issue in a clear, concise, and consistent manner, aligning it with its core values and mission. This messaging should be communicated across all platforms, including website, social media, and press releases.
2. Engage Stakeholders in Dialogue: UW should proactively engage with its stakeholders, including donors, beneficiaries, and local communities, to understand their perspectives and concerns. This engagement should be conducted through various channels, such as town hall meetings, focus groups, and online surveys.
3. Prioritize Transparency and Accountability: UW should be transparent about its decision-making process and accountable for its actions. This includes clearly communicating the rationale behind its stance and the potential impact on its operations.
4. Develop a Contingency Plan: UW should anticipate potential backlash and develop a contingency plan to address any negative consequences. This plan should include strategies for managing media relations, mitigating financial risks, and maintaining stakeholder support.
5. Leverage Technology and Analytics: UW should leverage technology and analytics to monitor public sentiment, identify potential supporters and detractors, and optimize its communication strategy.
5. Basis of Recommendations
These recommendations are based on the following considerations:
Core Competencies and Consistency with Mission: Taking a public stance aligns with UW's mission of addressing social issues and promoting community well-being. This decision should be consistent with UW's core values and strengths, such as its commitment to social justice and its ability to engage with diverse communities.
External Customers and Internal Clients: UW needs to consider the needs and expectations of its external customers (donors and beneficiaries) and its internal clients (employees and volunteers). A balanced approach that addresses the concerns of all stakeholders is essential.
Competitors: UW needs to consider the actions of its competitors and the potential impact of its decision on its competitive position. Taking a public stance could differentiate UW from other organizations and attract new supporters.
Attractiveness ' Quantitative Measures: While quantifying the impact of taking a public stance is difficult, UW should consider potential financial risks and rewards, such as the potential loss of donors versus the potential gain of new supporters.
6. Conclusion
Taking a public stance on a controversial issue is a complex decision for United Way. However, by adopting a strategic approach that balances its commitment to social justice with its need to maintain financial stability and stakeholder support, UW can navigate this challenge and continue to fulfill its mission of improving lives and building stronger communities.
7. Discussion
Other alternatives not selected include:
- Maintaining neutrality: This approach avoids alienating any stakeholders but may be perceived as lacking leadership and commitment to social justice.
- Taking a stance behind closed doors: This approach avoids public scrutiny but may not be effective in addressing the issue or influencing public opinion.
Key risks and assumptions associated with the recommended approach include:
- Risk of alienating donors: This risk can be mitigated by engaging with donors, clearly communicating UW's rationale, and highlighting the potential benefits of supporting its stance.
- Assumption of positive public response: This assumption may not be accurate, and UW should be prepared to manage potential backlash and criticism.
8. Next Steps
UW should implement the following steps to address the issue:
- Develop a clear and consistent messaging strategy: Within 3 months.
- Engage stakeholders in dialogue: Within 6 months.
- Develop a contingency plan: Within 6 months.
- Leverage technology and analytics: Ongoing.
By taking these steps, UW can effectively address the issue of taking a public stance on a controversial issue, while remaining true to its mission and values.
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Case Description
In June 2012, the Kingston, Frontenac, Lennox, and Addington chapter of the United Way had the opportunity to present its views at an upcoming public forum on a proposal to build a casino in Kingston, Ontario. The possibility of a casino in Kingston was a controversial and emotional topic; it was supported by influential business and government leaders but also had many detractors. Pro-casino advocates said a casino would create jobs, spur local business, and contribute millions of tax dollars to municipal coffers. Opponents contended that the social costs of a casino would outweigh the touted economic benefits and that a casino would lead to an increase in problem gambling. City councillors were evenly divided on the issue. For the United Way, many of the proponents and opponents alike were active and financially supportive of the organization. The United Way was asked to take a stand, and yet was hesitant to enter into a political debate. Was it possible for the United Way to uphold its values without alienating pro-business donors and local government officials?
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