Best of frenemies: How to get ESG activists on side

1. Seek out partners before it’s too late

• To avoid public disputes that could damage your reputation, get ahead of the curve and form collaborations with activist groups before their ire is trained on you. 
• Choose partners that have complementary expertise in areas where your firm may be lacking.

2. Choose recognizable brands to boost credibility

• Collaborating with prominent non-profit organizations with expertise in ESG issues can help your firm overcome negative perceptions: your partner’s recognizable brand gives you greater credibility.
• Don’t be afraid to choose groups that are openly critical of your industry’s practices – it sends a stronger signal that you are listening and willing to address ESG issues.
• However, beware that supporters of more radical groups are less forgiving of private-sector collaborations and often refuse corporate donations and collaborations to preserve their reputation.

3. Build a mutually beneficial relationship

• In convincing activists to work with rather than against you, it’s important to build a symbiotic relationship. 
• It’s also key to improve trust and understanding between both parties by learning from one another, sharing information, and being transparent. 

4. Stress that this is a win-win game

• In your communications with partners, stress that, because of the massive environmental, social, and economic footprints of a multinational corporation, you have the potential to effect significant positive change in society: activists can tap into your firm’s market power and visibility and ultimately shape responsible business practices.
• Activists can also work within your company to better understand your business model, and help come up with solutions that, while delivering societal benefits, are also commercially viable.