Unveiling the Power Play: The Impact of Israel-Hamas Conflict on Corporate America

ESG investing by Blackrock, advocacy for gay rights by Disney, and mainstream corporate America's response to Donald Trump after the Capitol riots demonstrate that companies often take a stand on various issues. These actions can have positive or negative effects on their profitability, such as Nike's partnership with Colin Kaepernick proving beneficial while Bud Light's support for transgender rights had the opposite effect.

While many companies wisely refrain from getting involved in the enduring Israeli-Palestinian conflict, the severity of Hamas's October 7 attacks on Israel made it impossible to remain silent.

According to Jeffrey Sonnenfeld, a professor at the Yale School of Management who specializes in corporate leadership, remaining silent implies cowardice. If companies choose not to voice their stance, it will be difficult for them to embrace and celebrate their corporate values.

In light of this, numerous companies have rallied in support of Israel. Satya Nadella, the CEO of Microsoft (MSFT), expressed his heartbreak over the atrocious terrorist attacks on Israel. Sundar Pichai, CEO of Google, conveyed deep sadness. Disney (DIS) decided to donate $2 million towards humanitarian relief efforts in Israel, and banks have also contributed millions. Overall, approximately 80 well-known American companies have denounced the Hamas attacks, as documented by Sonnenfeld, who keeps a comprehensive list.

Many organizations, particularly those located outside of the United States, have chosen to take a more cautious stance. One such example is Tottenham Hotspur Football Club in the United Kingdom, which has historically been linked with its Jewish fanbase. The club faced criticism when it expressed its shock and sadness regarding the escalating crisis in Israel and Gaza.

In response to the mention of Gaza, one fan exclaimed, "Never refer to yourselves as a Jewish club again." Another fan passionately expressed their disappointment, stating, "You are truly disgraceful."

Paddy Cosgrove, CEO of the Web Summit, which describes itself as the biggest tech conference in the world, was forced to apologize after accusing Israel of war crimes.

Google CEO Sundar Pichai has said he is "deeply saddened" by the October 7 attacks on Israel

Jose Luis Magana/AP

According to Lior Susan, a founding partner of venture capital firm Eclipse, it is not acceptable to stay hidden or be indecisive. Susan, who has experience serving in the Israeli special forces, emphasized that choosing not to take a position is, in fact, taking a position. He believes that companies should demonstrate moral clarity and strong leadership during the Israel-Hamas conflict.

Richard Griffiths, the managing director of London-based strategic communications consultancy Citigate Dewe Rogerson, echoes this sentiment. He mentions the Russian attacks on Ukraine as an example of how companies are now expected to take a stand and speak out.

However, he highlights that the situation becomes more intricate when it comes to the Israel-Hamas war. Griffiths advises that businesses should demonstrate solidarity with all individuals affected by the conflict, while prioritizing efforts to alleviate the humanitarian crisis.

Companies should stick to their guns once they have taken a stand, as stated by Griffiths. Any stand a company chooses should be aligned with the values and interests of employees, customers, and investors. It is crucial to first comprehend stakeholder expectations before making any decisions.

Sonnenfeld, whose list of foreign companies that continue operating in Russia has been attributed to hastening a massive exodus, emphasized the importance of companies confidently standing by their beliefs, no matter what they may be.