Get Woke Go Broke: Politics over Profit
Isaiah O’Connor
a 8 minute read
Now, it's been a while since I delved into the intricate dynamics of business and politics in my comprehensive four-part series. To reiterate, if your business operates outside the realm of politics, it's prudent to avoid political entanglements. I'm not suggesting that as an individual, you should completely disregard politics; your actions in your private life are entirely your own. However, recognizing the political landscape as a crucial aspect of your business strategy is essential. Specifically, pay attention to the laws governing your business operations. Two fundamental types of laws can pose threats: general laws affecting all businesses and targeted laws specific to your industry. Being aware of these potential challenges before they become law enables you to prepare for changes or, ideally, take proactive steps to prevent their enactment.
I discovered a new city law banning the sale of helium balloons on city property. As a balloon artist, this significantly affected my ability to generate income. Unfortunately, I found out about the law too late to attend the city council meeting. Regrettably, only the representatives from the anti-balloon lobby, advocating for the bill, had the opportunity to speak, resulting in the bill passing into law. This decision, in turn, eliminated a substantial sales day for me. In response, another lobby presented their case to the local parliament. Fortunately, the foremost balloon seller managed to participate in the meeting and successfully defended our industry. Instances like these emphasize the importance of making customers aware of legislative developments that directly impact your business. Their support becomes crucial in defending your business interests, as they may lose the benefits of your product or service if detrimental legislation is enacted.
Navigating the Political Landscape
However, in recent times, almost everything has become intertwined with politics, making it challenging to remain apolitical. Many organizations have opted to incorporate political messaging into their strategies, targeting a market that may not be receptive to such discourse. The primary issue arises when businesses decide to advocate for a message unrelated to their core product, inevitably taking a stance. By choosing a side, you automatically alienate the opposing side. Some businesses have prioritized their political stance over profits, deeming it worthwhile. The success of this approach depends on the size and location of your business. If the promoted politics align with the majority in your locale, and your business is confined to areas where your political alignment resonates with the customer base, this strategy might prove effective. However, generally, people prefer to avoid having political ideologies thrust upon them outside of designated political and news sources.
The "Get Woke, Go Broke" Phenomenon
This is where the term "Get Woke, Go Broke" comes into play. The majority of political messaging embraced by companies is often associated with what is termed "Woke ideology." The challenge lies in the fact that this ideology tends to lean heavily towards the far-left side of the political spectrum, proving to be offensive to those on the moderate and right side, constituting about 75% of the US population (source: Gallup). Potentially alienating three-quarters of your market for the sake of a minority 25% is a perilous path that can lead to disastrous consequences.
Cooperate setbacks
Recently, both Disney and Bud Light experienced significant setbacks after embracing the "Woke" narrative. In 2023, both companies incurred substantial losses. Disney, for instance, faced a staggering $900 million drop in its movie revenues alone, as reported by IMDb. Additionally, Bud Light suffered a $1.4 billion loss in sales during 2023
Disney's Struggle: An SEC Admission
Disney's acknowledgment of this issue is evident in its September SEC filing, where the company partially admits to the adverse impact of aligning with the "Woke" narrative. In their September SEC filing, Disney explicitly stated:
“We face risks relating to misalignment with public and consumer tastes and preferences for entertainment, travel, and consumer products, which impact demand for our entertainment offerings and products and the profitability of any of our businesses.”
The filing further elaborates:
“Generally, our revenues and profitability are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not achieve sufficient consumer acceptance. Further, consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brands.”
(Source: Disney's SEC Filing)
In essence, Disney acknowledges a misalignment between its social and environmental goals and the perspectives of its target market, resulting in significant losses. The company has ventured into political messaging, specifically embracing far-left progressive 'Woke' politics, leading to ongoing challenges.
Bud Light's Misstep and Boycott
Turning our attention to Bud Light, a brand that has traditionally targeted males aged 21 to 35, a demographic statistically more likely to lean conservative or moderate in their political views according to Gallup. In a controversial move, Bud Light hired the Trans Activist TikTok Star, Dylan Mulvany, for promotional activities. Dylan, being an extremely polarizing figure, especially for young conservative to moderate men, sparked a boycott. The repercussions were severe, with Bud Light experiencing a staggering 30% loss in sales, totaling $1.4 billion, not to mention declines in market cap and stock value (source: New York Post). This decision to intertwine politics with marketing proved costly, and the boycott continued to make headlines nearly a year later.
A Call for Balance in Business and Politics
While my analysis may appear one-sided, examining controversial businesses reveals a notable absence of conservative-leaning companies actively engaging in politics. Some businesses operate under a faith-based model, which has always been transparent and integral to their operations. In many instances, unless one actively seeks information online, the business's belief system remains undisclosed. Controversies often arise concerning where companies allocate their donations, but given that many businesses contribute to various political groups, these controversies may be somewhat inflated. For instance, In-n-Out Burger faced a boycott for supporting the Republican Party, while Apple encountered a boycott for its contributions to Democrats. From my perspective, a business making political donations doesn't necessarily equate to thrusting politics upon customers, as these actions are typically discreet and only brought to light by those with a specific political agenda to promote.
The Unwanted Intrusion of Politics
While I initially hoped to move on from discussing these issues, the trend persists as more companies opt to inject politics into their public image. This decision often clashes with a public that is growing weary of everything being political. The majority simply seeks to enjoy a movie, have a beer, or perhaps engage in a mundane activity like shaving without being inundated with political messages. The adage "Don't talk about politics and religion" used to serve as a social norm, but now it appears that discussions on these topics dominate, contributing to the detriment of companies across various sectors.
The Cancer of Politics in Business
In my opinion, drawn from careful observation, introducing politics into business resembles cancer, potentially undermining all your hard work. There are exceptions, of course, such as businesses explicitly centered around politics. I came across one called "The Best Political Shirts," thriving precisely because of its political nature, evident even in its name. It's essential to recall the enduring wisdom encapsulated in the age-old saying:
“You can please some of the people all of the time, you can please all of the people some of the time, but you can’t please all of the people all of the time”
This timeless insight serves as a poignant reminder of the delicate balance businesses must navigate in the intricate realm of public opinion and political involvement.
Your Friendly Neighborhood Entrepreneur
Isaiah O’Connor.
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Your Friendly Neighborhood Entrepreneur,
Isaiah O’Connor
