These CEOs Were Told They Were on the Wrong Side of History: They Weren't

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In September 2020, Coinbase CEO Brian Armstrong published a blog post stating that Coinbase would no longer engage in “broader societal issues.”

Armstrong didn’t dismiss the importance of those societal issues or his employees’ passion for them. Instead, he proclaimed that businesses only achieve great things when they are focused, and Coinbase had found political and social causes to be a distraction from their important work.

Then, in April 2021, Basecamp co-founders Jason Fried and David Heinemeier Hansson came to a similar conclusion, introducing their own policy banning political discussions on official company channels. They drew a clear line, stating, “We are not a social impact company,” but at the same time pledged not to restrict employee advocacy on personal channels or social media.

After 12 months of tumult from the pandemic and the cresting of global social justice movements, Armstrong, Fried and Heinemeier Hansson were among the first leaders to publicly withdraw from the political arena and rededicate to their company missions.

These leaders faced extensive criticism from media outlets and on social media for their public stances. They were told they were “on the wrong side of history” by friends and colleagues. Coinbase lost five percent of its workforce and a third of Basecamp’s small team took severance packages to leave the company.

However, these leaders’ actions look very different through today’s lens.

Though the media focused on the employees who left Coinbase and Basecamp, each company received a substantial influx of applications to fill those open roles. It turned out that, in being clear about what they valued and taking a principled stand on those values, they attracted plenty of candidates interested in a workplace that didn’t mix work and politics.

On top of it, many companies that have engaged heavily with social impact causes since 2020 are feeling strained today. It turns out trying to be everything to everyone, while well-intentioned, is a great way to lose focus as a company and burn out leaders.

Plus, there is even more ambivalence today on how companies should respond to social issues. The recent campus protests, continued toxic polarization, and the reexamination of several workplace policies and norms introduced since 2020 have many employees rethinking what they want from work. Even Google, arguably the tech giant most dedicated to social justice, was forced to draw a hard line with protestors within the company.

Meanwhile, Armstrong, Fried and Heinemeier Hansson appear to have no regrets about their stances. Coinbase and Basecamp—since rebranded as 37signals—have performed well in the ensuing years. In particular, Fried and Heinemeier Hansson have received contrite calls from both friends and critics who are now commending them for their foresight.??

Swimming against the tide is never easy. The truest test of values and character is not when we join the stampede, but rather when we take a principled stand against conventional wisdom at precisely the moment when it’s hardest to do so.

In a world that often renders verdicts on our decisions in real-time, time is still the best arbiter of ideas. That’s probably why I recently heard an author share that he only reads books that are over ten years old. He believes if people are still talking about a book after ten years, it’s certainly worth his time.

In that way, ideas and stances are a bit like wine.

Some people, ahead of their time, manage to share insights that appear more profound and prescient as the world catches up. These ideas age gracefully, their value increasing as they are validated by time, much like a fine wine that improves with age.

In contrast, other ideas are products of their moment, thriving on unsustainable trends. These ideas lose their luster when scrutinized over time, just as wine turns to vinegar when it isn’t airtight.

The ideas that stand the test of time and make a lasting impact often go against the grain when no one is willing or able to listen to them. They are driven by thoughtful conviction, not reactionary thinking or attempts to virtue signal.

I can’t help but wonder how many leaders today look back on Armstrong, Fried and Heinemeier Hansson’s statements and wish they had made a similarly bold choice.?

Quote of The Week

"All great truths begin as blasphemies." - George Bernard Shaw

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About Me

Robert Glazer is a serial entrepreneur, award-winning executive, bestselling author, and keynote speaker. He has a passion for helping individuals and organizations build their capacity and elevate their performance.

Learn more at www.robertglazer.com