Corporate boards in the U.S. see significant risk to their companies in speaking out on social issues, in an environment of heightened political scrutiny, with less than a fifth of directors believing that they should encourage C-Suite leaders to speak publicly to reinforce company values, according to a new survey released by board education provider Corporate Board Member, GRC solutions provider Diligent, and advisory firm FTI Consulting.

For the study, “What Directors Think,” the organizations surveyed more than 200 U.S. public company directors on their priorities, challenges, outlook and impressions of the U.S. business climate.

According to the report, the survey found “a continuous shift for the role of the CEO from being more vocal to less outspoken,” as companies perceive significant risk in expressing opinions on social issues. Specifically, the survey found that 85% of directors believe that there is greater risk of losing customers by taking a stance by speaking out on an issue “amid today’s polarized political and social climates,” with only 15% seeing greater risk by refraining from taking a stance.

Similarly, only 18% of respondents said that they believe that the board should encourage executive leaders to speak publicly to reinforce their company’s views and values, and only 9% said that their CEO has ever voiced an opinion publicly on behalf of the company on potentially divisive political or social issues.

As U.S. board directors see high levels of risk in speaking out on issues, the survey found strong support for policies to control statements by executives, with more than 60% of respondents saying that corporate officers should check with the board or leadership team potentially divisive political or social issues, and 81% reporting that their companies have put in place policies regarding which individuals, if any, can make public statements on behalf of the company.

With companies facing high levels of perceived scrutiny, the survey found that sustainability issues were low on directors’ list of priorities this year, with only 11% reporting that developing or implementing the company’s sustainability strategy is a top priority, and only 2% saying that they would prioritize environmental sustainability or climate expertise if they were tasked to appoint a new director to the board.

The report said:

“Looking back at 2024, the increased polarization of the U.S. electorate, combined with more intense rhetoric and activist attacks against corporations, has created a tightrope for CEOs and executives to walk, as they contemplate when, where and how they should speak out or act on larger societal issues.”

Click here to access the report.