A Swift Reputation (Delve’s Version)
Here’s What You Need To Know
America has voted, or at least TIME’s editors, and Taylor Swift is the Person of the Year. If you are in corporate public affairs though, a more apt choice might be Dylan Mulvaney photographed in a certain swimsuit purchased at Target. That’s because while most Americans may agree on Taylor’s version, there are plenty of forces arrayed on both sides of our politics to keep us from shaking off polarization on many other cultural issues. As a result, corporate public affairs professionals are living in a post-Bud Light era in which anyone can be a Target.
In the last six months, we have seen a continuous drumbeat of consumer activism directed at even the most established brands, and unlike past boycotts and activism, it is causing real and lasting reputational damage. In the post-Bud Light era, any company, regardless of size or reputation, can become a target for public backlash and boycotts.
It is all happening as companies learn how challenging it can be to navigate our new stakeholder economy. As our CEO noted recently in Forbes, “the ease of digital activism empowers stakeholders to voice their concerns and apply pressure more swiftly than ever before.” Here’s what you need to know to navigate this newly complex landscape.
Subscribe to Receive Insights
"*" indicates required fields
Everything Has Changed
Today’s boycotts are far from the grassroots movements of the past. They have evolved into highly professionalized, digitized, and globalized campaigns. Activist groups, often perceived by the media as the ‘Davids’ in a battle against corporate ‘Goliaths’, are increasingly well-resourced and highly coordinated. This shift means that any public relations crisis is not just a local or isolated event but can quickly gain global attention. Any misstep by an organization can become a catalyst for these well-prepared groups, who may have been waiting for just such an opportunity to advance their broader agendas. This reality means companies must be acutely aware of potential issues into which they could inadvertently step, because once the rage machine spins up, the damage has been done.
It’s not just about defending against fair criticism; in today’s environment, scrutiny is inevitable, and attacks can come regardless of their merit. Take the attacks against companies like McDonald’s, Starbucks, and Dior for perceived support of Israel after the October 7 attacks. This new era of the stakeholder economy means constant scrutiny from a widening range of actors, including employees, investors, consumers, policymakers, the media, and beyond.
We Are Never Getting Back Together
Historically, even high-profile boycotts, such as those against Nike or Chick-fil-A, often fizzled out without long-term damage to the companies. Now, the reality has changed dramatically. Modern boycotts, fueled by social media and global connectivity, can inflict lasting damage on a brand’s reputation, severely impacting their bottom line and stakeholder relationships in an enduring way.
Related Posts:
Today, the sting of boycotts can cause real and lasting damage. Just this year, Anheuser-Busch’s sales fell another 13.5% in the third quarter and profits fell 29% “as an ongoing backlash” over the company’s ill-fated outreach to a transgender influencer. Target saw a big drop in sales during the two quarters following “strong reaction” against its Pride merchandise – its first sales declines in six years. Now X, the company formerly known as Twitter, faces up to $75 million in lost ad revenue over allegations it has not done enough to police anti-Semitic hate speech on its platform.
This shift is partly due to the changing nature of brand equity in today’s fractured media environment. In a landscape with reduced brand loyalty and heightened consumer awareness, a company’s reputation has become more critical and valued than ever before. Once a reputational hit occurs, it can disrupt an organization’s relationship with consumers, employees, the media, and the public for the long term. These impacts are not just superficial or transient; they cause real, quantifiable damage to a company’s ability to operate.
I Knew You Were Trouble
In today’s hyper-connected and fast-paced business environment, waiting for a crisis to strike before acting is fraught with risk. Organizations must adopt a proactive stance, constantly monitoring for weak signals that could signify potential issues on the horizon. As we’ve advised before, public affairs professionals need a seat at the table in their organization’s strategic discussions to ensure their insights are incorporated into enterprise risk assessments.
That seat at the table can’t get offered only after a crisis hits. Having public affairs professionals armed with the right insights and experience anticipating and avoiding crises is critical to ensuring business decisions have political and reputational risk analysis baked into them from the start, not towards the end.
To ensure they have the right insights at that table, those public affairs professionals keen understanding of global – and local – sentiments informed by robust, systematic assessments of the policy and political landscape and the full range of stakeholders who can shape it. The time to make friends or mitigate opposition is not after a crisis hits, but before the drumbeat of a boycott or public backlash begins. Seasoned crisis communicators know how to leverage those assessments to strategize on the communication channels and messages most likely to resonate correctly with the public and stakeholders in various potential crisis scenarios.
Endgame
In navigating the treacherous waters of modern consumer activism, preparation is key, but remember, you don’t have to face these challenges alone. Delve acts as your partner in anticipating and understanding this uncertainty. Delve can bring rigorous and systematic analysis, crafted by expert risk analysts, to the crisis planning work by your internal public affairs operation and external advisors. With Delve, you’re not just preparing for potential crises; you’re equipping your team with the insights and tools you need to anticipate risks, ensuring your organization remains a step ahead in a world where proactive management is no longer a luxury, but a necessity for survival.