Wokeness and Business

The term “woke” has been used to describe a focus on greater awareness and sensitivity to issues related to inclusivity, socio-economic justice, and sexual and racial diversity.

However, many perceive wokeness as a reason to judge others and classify parts of society negatively due to the woke community’s tendency to generalize issues rather than seek consensus on them.

In terms of business, wokeness can be classified as positive or negative, whatever use the proponent supports. It can and does create barriers to dialogue and creates divides that are difficult to eliminate.

On the one hand, many companies seek to promote values compatible with the original objectives of wokeness. This focus leads companies to ensure that their values underscore the positive objectives of wokeness to appeal to a broad segment of their clientele.

On the other, it riles the extremes when it goes too far in the eyes of some, and not far enough in the eyes of others.

Many companies view attracting different communities as beneficial to their bottom line.

But the reality is that no business can dominate 100% of a market. This is because you can’t please everybody. That’s the reason that many businesses carry a portfolio of brands and products to appeal to different customers and their needs

Politically, many voters, who are consumers, are fed up with being told what to think and feel by both sides of the divide. A business or a brand that injects itself into social issues in order to attract new users, must do so carefully and be mindful of the risks involved, lest it lose its current base of clients. In other words, know your customer, the value of your customer and understand the risk of loss versus the opportunity of the gain. 

One sees the results of not considering these factors in the case of Target. The company had sought to be inclusive of the LGBTQ community by selling products that appealed to this market. 

Conservative leaning customers reacted negatively, and the company changed course, removing these products from the market. Then the woke community reacted negatively, and the company returned the products to its marketing base. In the end, while it was not disastrous, Target’s reputation took a hit from customers on both sides of the political spectrum. 

Another recent example did have disastrous consequences to Budweiser beer which cost its parent company $395 million in lost US sales and its number one position among beers in that critical market. It had placed a photo of a transgender spokesperson Dylan Mulvaney on its cans of Bud Light. This led conservative elements to boycott the brand, costing brewer Anheuser-Busch tens of millions of dollars in losses.

Abrupt changes in corporate policy do not enhance the company’s value system, leaving consumers on both sides reacting negatively. "For a company to hire a trans person and then not publicly stand by them is worse, in my opinion, than not hiring a trans person at all," Mulvaney later said of her involvement with the brand, claiming she had endured "more transphobia and bullying than I could have ever imagined."

Companies must maintain their value system intact if they are to maintain corporate integrity and market confidence.

While the extreme right and left may rant and rave, the market is usually composed of the broad center that views corporate values of inclusivity and social justice as positive attributes. This is especially true of younger consumers, whose values do not reportedly appear to be in sync with either extreme. 

Indeed, some companies accused of wokeness by the extreme right and calling on their adherents to boycott them have proven successful in increasing market share and profitability. Others have lost market share and valuation as consumers take a decision to avoid their products.

Focusing on balancing bottom line with social responsibility requires understanding the company’s customer base. Designing marketing strategies that promote social values without shoving them down customers’ throats is essential. Taking a nuanced approach that respects the intelligence of the consumer can mitigate significant backlash.

Diversity, equity, and inclusion (DEI in modern corporate parlance) is here to stay. The trick towards successfully implementing it is to respect the consumer’s intelligence and not make them believe that they are being manipulated. Know your market and tailor your strategy carefully.

It will be important for progressives to ensure that the extremes proposed by the far left are also watered down to ensure that wokeness retains a centrist approach to business and not a capitulation to alien values or unwanted pressures on the majority of consumers.

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Keep reading: Woke

Edition: Estefanía Cardeña