Pridelash
Here’s What You Need to Know
Pride month celebrations may still be going strong, but with widespread backlash towards companies looking to join the party, many are rethinking their RSVP. Last year, companies were called out for being “inauthentic” when it came to Pride-focused marketing, while this year most of the controversy stems from brands being “overly woke.” It’s enough to give you Pridelash. So what’s changed?
Hyperpolarization once reserved for the halls of Congress and around the Thanksgiving dinner table has permeated every facet of American life. This shift is making it increasingly difficult for corporations to navigate whether (and by how much) to embrace social issues. Bud Light, which lost its two-decade long place as America’s #1 beer this month, and Target have lost billions in market value over what used to seem like easy marketing decisions. This shift shouldn’t come as a surprise. Consumers want businesses to be more involved with social issues, but in a highly polarized country, what they believe that involvement should look like is fraught with controversy.
No company is immune. Red state stalwarts like Cracker Barrel and Chick-fil-A have come under just as much fire as in the last several months as firms like The North Face with a strong history of purpose-driven marketing – in Chick-fil-A’s case for a three-year old hiring announcement. Here’s what you need to know to avoid becoming the next target of activists’ “go woke, go broke” mantra.
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The Battle of Could vs. Should Is Heating Up
To borrow a quote from Jurassic Park’s esteemed Dr. Ian Malcolm, companies have been “so preoccupied with whether they could, they didn’t stop to think if they should.” A recent Newsweek poll finds that more than 7 in 10 Americans aged 25-44 supported the expression “go woke, go broke.” It is a dramatic change in the conventional wisdom that millennials, one of the most powerful consumer and voting blocs, want companies to embrace social issues in their marketing and communications. Meanwhile, a Brunswick Group study found 63% of corporate executives think “companies should speak out on social issues,” but just 36% of voters agree. This divergence has set up a true battle within corporate America on how best, if at all, to engage. Consumers, after all, are not the only stakeholder companies must consider, with pressure from employees, investors, and policymakers complicating firms’ desire to sit out particular debates.
Embracing Social Issues Means Embracing The Consequences
In a deeply divided nation, corporate activism can present challenges for organizations once reluctant to take public stands on contentious issues. As our CEO outlined in Forbes, “before endorsing broad proclamations, business needs to understand the expected actions these proclamations may entail.” In the 20th Century, corporations were more frequently regional and accessible. Now, many brands are owned by multinational conglomerates more removed from the everyday experiences of those they hope to serve. As a result, contends political reporter Salena Zito, marketing decisions on social and political issues are made more and more “to reflect the alienated world of the owners rather than the consumers who are their bread and butter.” This disconnect means companies take real risk when embracing social issues. Activists advancing their own agenda are looking for every opportunity to call business out for “performative” action. In Bud Light’s case, for example, their actions lost both the consumers they hoped to woo and the ones they already had. In this climate, full consideration of the short and long term effects of going “woke” is more important than ever.
Public Affairs Needs A Seat In The Room Where It Happens
In this age of digital sleuthing and viral vitriol, everything a business does, or says, is under a microscope. Businesses need to tread carefully when wading into the cultural fray. As we’ve shared before, “companies face new political and reputational risks from activists that have nationalized, digitized, and professionalized their efforts.” That requires public affairs and government relations staff to be at the table when business decisions are being made. No one is better positioned to provide inside expertise on the political and reputational risk taking a side carries. Without their voice in the conversation, corporations will continue to see real (and expensive) consequences for jumping on the social issues bandwagon.
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Same Stance, New Backlash
For Pride month this year, some companies did not do anything different than years prior. Target has long leaned into marketing products around celebratory months and Chick-fil-A’s “new” VP of Diversity, Equity, and Inclusion was actually hired in 2021. The thing that differentiates this year’s “woke” backlash is the lens through which these efforts are viewed. State legislatures across the country have thrust transgender rights to the national forefront, and Bud Light brought new activist scrutiny to the forefront this spring. Political and social debates are far from static, and the same position or action in a new context will cause a different reaction. Businesses must pay attention to these shifts and understand their operating environment to avoid a crisis of their own making. It will be hard to predict which way the pendulum will swing next, but companies should be well advised to remain nimble and proactive in today’s politically charged environment.
Avoid Surprise, And The Onslaught
The backlash to corporate social issue engagement will not end when the calendar flips to July. Companies will need to prioritize a holistic and strategic approach if they want to navigate the political and reputational risks to come. That means identifying your existing and potential vulnerabilities, fully understanding your stakeholders and their interests, appreciating the dynamics of the political environment across jurisdictions in which you operate, and building a system to avoid surprises.These steps are part of Delve’s proven playbook, so if we can help you avoid the onslaught, don’t hesitate to reach out.