Answering the Trap Questions

Out: build a better (mouse)trap. In: avoid
trap questions. (Korn Ferry photo)

Leaders of major companies are more highly compensated than ever. To be fair, their jobs are also more complicated than ever.

They have to answer to a multitude of constituencies ("stakeholders"), some of whom are concerned with matters other than revenues and profits. The slightest verbal miscues, even not saying something, can put a CEO's job at risk.

Microsoft CEO Satya Nadella is a master at answering the "trap question." Here's an example of one from last month's Stanford economics conference:

"Let’s talk a little bit more about equity. Before the pandemic, the world was facing big challenges: climate change, structural racism, economic insecurity, wealth inequality and more....What is the responsibility of the corporations, particularly the underlying connection to racial justice in the U.S. and elsewhere?”

Before reading Mr. Nadella's answer, how would you respond, dear reader? All the problems on the list are intractable, beyond the capacity of even mighty Microsoft to solve. Also, "responsibility" is a trap word: if he says Microsoft is responsible, it can never succeed; if it is not responsible, he will sound callous.

Here is Mr. Nadella's answer, as described by WSJ writer Andy Kessler:

Mr. Nadella isn’t CEO of a trillion-dollar company for nothing. Coolly and calmly, he explained that “the social purpose of a company is to find profitable solutions to the challenges of people and planet,” crediting Oxford economist Colin Mayer for the definition. “Driving broad economic growth is perhaps the biggest thing that a company can do,” Mr. Nadella added. “In order to have the pie distributed evenly, the pie should first grow.”

As Andy Kessler explains:

finding “profitable solutions” is—shh, don’t give it away—basically the same as Milton Friedman’s “the social responsibility of business is to increase profits,” except with the crowd-pleasing word “planet” tacked on.

IMHO, public figures aren't liars when they say they are against climate change, racism, etc. However, they couldn't have gotten to where they are without a single-minded dedication to their business, their personal skills in sports or entertainment, or whatever else got them to the top of the heap.

Besides obeying the law, all other considerations are nice but secondary, and too many distractions could jeopardize their primary mission. Invest in social-media consultants, practice using words like "systemic racism", "sustainability", "equity", and others that placate the woke, and carry on.