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Last week, during a press conference, US House of Representatives Speaker Kevin McCarthy expressed his opposition to “anti-woke” provisions in a military spending bill. These provisions aimed to restrict abortion rights, diversity training, and transgender healthcare. Notably, McCarthy mentioned Disneyland, alluding to the company’s recent struggles in Florida due to its stance against governor Ron DeSantis’s “don’t say gay” bill. This incident highlights the ongoing cultural conflicts that have engulfed corporate America.
Companies like Disney and Bud Light have faced challenges in the culture wars. Disney has been targeted by conservative lawsuits, a corporate oversight board in Florida influenced by state Republicans, and the possibility of a nearby prison development that has led to substantial disinvestment. Bud Light, on the other hand, lost its market dominance after a transgender influencer (sponsored by the company) expressed support for a brand-sponsored contest, triggering a significant sales decline. Other companies, such as North Face, also encountered backlash for releasing a drag queen video during Pride month. Numerous examples of companies struggling to navigate the culture wars abound.
Public activism and commerce intertwining have been part of American history. From boycotts of British goods leading up to the Revolutionary War, to consumer boycotts during labor movements, civil rights struggles, and the women’s movement, campaigns against corporations have existed for a long time. However, today’s “woke capitalism” presents new challenges. Companies must address multiple politically divisive issues concurrently. Identity-related matters, influenced by the Black Lives Matter movement, have prompted major corporations to announce diversity initiatives and invest significantly in racial justice. Additionally, the rise of ESG and stakeholder capitalism has forced companies to consider a broader range of concerns, such as board diversity, supply chain sustainability, and industry-specific issues like sugar consumption, gun sales, immigration policy, and online child safety.
Navigating these complex issues poses difficulties for many companies. Delta, for instance, attempted to address consumer concerns about gun control by discontinuing corporate discounts for the National Rifle Association. However, this decision resulted in the loss of a $38 million tax break from Georgia, where the company is headquartered. Under Armour faced backlash from both progressives and Republicans for different reasons. Positive comments about President Donald Trump by the CEO upset progressives, while pulling out of Trump’s American Manufacturing Council following racial tensions and violence in Charlottesville angered Republicans.
These challenges are amplified by the speed and influence of social media. Multinational organizations must now contend with national sensitivities across different countries, as seen in Beijing’s refusal to broadcast NBA games after a manager expressed support for Hong Kong’s pro-democracy protests and Chinese consumer boycotts of H&M, Nike, and Adidas over concerns about forced labor in Xinjiang.
While winning the culture wars is a daunting task, a few companies have managed to navigate the landscape successfully. Mattel’s Barbie brand, for example, has embraced postmodern feminist ideals with innovative marketing campaigns. Through hiring art-house director Greta Gerwig to create a film that satirizes the notion of woman-as-object while featuring Barbie lookalike Margot Robbie, Mattel has transformed its brand image. Barbie now offers dolls in various skin tones, body types, and inclusive features like hijabs, Down syndrome representation, prosthetic limbs, and wheelchairs. Importantly, Barbie remains apolitical, allowing her to transcend contentious issues.
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