The hidden costs of employee activism on your charity

In recent years, the landscape of employee activism has shifted dramatically, reflecting a broader cultural shift of social awareness, generational values, and the rising expectation that organisations demonstrate their impact on society.

Employee activism can be a useful vehicle for organisational change and there are issues that leaders should expect to have to negotiate on, such as industrial relations and workplace culture concerns. Indeed, issues raised by movements such as #MeToo and #BLM have often only received serious attention because of concerns raised by employees.  

This surge in employee activism, although rooted in a desire for positive change, can have unintended negative impacts on charities, particularly if it does not align with the charitable objectives. Our recent survey of UK charity leaders and analysis of Charity Commission data shows that 82% are grappling with employee activism and need more strategic preparation to deal with activism effectively.

In this blog, we will consider some of the hidden effects that employee activism may have on your charity, as well as the potential regulatory and reputational risks it poses.

Distraction from charitable objectives

Charities are typically established with clear, focused objectives aimed at addressing specific societal needs and raising awareness of the cause. Whether it’s providing food and shelter, advancing education, or protecting the environment, the effectiveness of a charity hinges on its ability to concentrate resources and efforts on its mission.

Many requests made by employees on issues concerning industrial relations or workplace culture can be handled through normal channels and may well lead to constructive dialogue and organisational change. However, there are several demands that senior leadership and trustees will need more room for manoeuvre, such as campaigning, political activity and external-facing statements.

When employees push for the organisation to engage in contentious politicised debates, it diverts attention and resources away from these core activities. The Charity Commission, as the independent regulator of charities for England and Wales, provides guidance on political activities and campaigning, which trustees should consider before taking a public position.

Internal conflict

Employee activism can create divisions within an organisation, and employees may disagree with the charity’s stance on a particular issue. This can not only alienate a certain number of employees but can also lead to internal conflict, toxicity, and employee dissatisfaction, leading to low morale and productivity for charitable work.

A polarised work environment can be particularly damaging in a charity setting, where teamwork and a unified sense of purpose are important for success. It takes away from the charity’s fundamental work with time spent on drafting statements, organising internal discussions, and managing employee relations.

Donor relations and public perception

Charities rely heavily on the goodwill and support of their donors and taking a stand on contentious issues can potentially alienate a portion of the donor base. Donors who disagree with the stance may withdraw their support, while others might be hesitant to contribute to a charity that they perceive as politically biased.

The media is often interested in stories about charities engaging in politicised matters because charities are held to high standards of public accountability due to funding and their need to remain neutral. Often, charities who are seen as taking a stance on topics outside of their mission have a heightened risk of media attention, which can then affect public perception and people’s willingness to donate.

Legal and regulatory risks

Charities operate under specific legal and regulatory frameworks that govern their activities and the use of their resources. Engaging in activism on controversial issues could expose the organisation to legal risks, particularly if these activities are deemed to be outside the scope of the charity’s defined objectives. Regulatory scrutiny can result in penalties or loss of charitable status, which would be detrimental to the organisation’s ability to continue its work.

Internal conflict relating to employee activism can also create employment law challenges for charities. In our recent webinar, we were joined by employment law specialist Rachel Mathieson (Partner at Bates Wells) to discuss these issues from both a PR and legal perspective. You can watch the full webinar back on-demand by following this link.

Steps for charity leaders

A charity’s primary mission should remain its guiding star, and resources and efforts should be focused on achieving its core objectives. To mitigate the negative impacts of employee activism, charities should establish clear policies and guidelines regarding how and when they will engage with social and political issues and educate employees on the impact this type of activism has on their beneficiaries and, ultimately, their goal.

You can now download the white paper, which includes the complete results of our survey, as well as guidance to help your leadership team navigate this complex landscape effectively.

If you are a charity that has questions or concerns about managing employee activism or assessing your reputational risk, then contact one of our specialist charities PR consultants at [email protected].