Charles Gasparino: 'Woke' Hypocrisy Is Hurting Businesses
Aug 14, 2024
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Charles Gasparino, a senior correspondent for Fox Business Network and columnist for the New York Post, dives deep into corporate America's pitfalls in his latest discussion. He critiques major brands like Anheuser-Busch, Disney, and Target for being distracted by 'woke' initiatives, risking customer loyalty and profits. Gasparino argues that social responsibility should align with business success, using examples like Ed Rensi's effective leadership. He also explores the potential economic impacts of the upcoming 2024 elections.
Corporate leaders have increasingly adopted progressive ideologies like DEI and ESG, impacting profitability and customer satisfaction negatively.
The backlash against wokeness was exemplified by Anheuser-Busch's failed marketing strategies, leading to significant financial struggles and brand alienation.
ESG initiatives, while intended to reflect ethical practices, have become controversial, raising questions about their true motivations and effectiveness in corporate governance.
Deep dives
The Corporate Shift Towards Wokeness
Companies like Anheuser-Busch, Target, and Disney have faced backlash for their recent policies and marketing strategies that lean towards progressive values, which some perceive as wokeness. This trend began when corporate leaders gradually adopted ideologies such as stakeholder capitalism, DEI (Diversity, Equity, and Inclusion) programs, and ESG (Environmental, Social, and Governance) principles, which often conflict with customer satisfaction and shareholder interests. Charles Gasparino explores how this corporate radicalization evolved, suggesting that many CEOs have become entranced by these ideologies, leading to missteps that alienate substantial customer bases and affect profitability. Acknowledging that not all consumers embrace these changes, he points to the consumer backlash that resulted when families encountered unanticipated social messages while shopping or enjoying entertainment.
The Decline of Anheuser-Busch
Anheuser-Busch's recent financial struggles illustrate the dangers of a corporate focus on progressive values over traditional marketing strategies. Historical connections with Americana and traditional masculinity have seemingly eroded since being acquired by the multinational conglomerate InBev, leading to misguided marketing decisions like the partnership with trans influencer Dylan Mulvaney. The company's attempts to undergo a 'inclusive' rebranding alienated its core consumer base, resulting in a massive drop in Budweiser's sales. As competitors like Modelo rise in popularity, Gasparino examines whether Anheuser-Busch can recover its former status or if it has permanently lost its place in the market.
Disney's Political Engagement
Disney's foray into social issues showcases the complications of corporate engagement in political matters. While serving a diverse and family-oriented customer base, the company has faced significant backlash, especially following its response to Florida's education policies and its perceived stance on LGBTQ+ rights. Bob Chapek's leadership was characterized by attempts to balance progressive demands from within the company against the more conservative views of many Disney patrons. Ultimately, the tensions culminated in consumer discontent and disillusionment with a brand that once epitomized family-friendly entertainment, highlighting the repercussions of corporate activism.
The Role of ESG in Corporate America
The concept of ESG has gained momentum within corporate governance, but it has sparked debate regarding its effectiveness and motivations among leadership. Larry Fink’s BlackRock, which heavily pushed ESG narratives, faced challenges as states began withdrawing funds based on their associated political implications. Fink acknowledged that while the initiative aimed to reflect ethical investment practices, it was also a strategy to align with progressive state pension fund demands. This duality raises questions about whether such strategies truly serve social good or simply act as a means of financial survival within a politically charged landscape.
Market Reactions to Wokeness
Gasparino points out that the pivot towards wokeness in corporate America has prompted significant consumer backlash and market volatility, with potential recessionary signals across various sectors. Polls indicate that while companies might try to attract two or three specific demographics, many consumers nationwide do not identify with such ideologies and feel alienated by them. Furthermore, there's a growing disbelief towards companies that indulge in politically charged marketing without genuinely committing to their representations. As wokeness continues to permeate corporate cultures, the enduring question remains whether organizations can rebound from these mixed messages and what that means for their financial futures.
Charles Gasparino is a senior correspondent for the Fox Business Network and a columnist for the New York Post. He's also the author of the new book Go Woke, Go Broke: The Inside Story of the Radicalization of Corporate America. Gasparino analyzes major missteps by companies such as Anheuser-Busch, Target, and Disney and explores how CEOs and top management become entranced by things like stakeholder capitalism; diversity, equity, and inclusion programs; and environmental, social, and governance plans to the detriment of customer satisfaction, public relations, and the bottom line.
Four years out from the COVID-19 pandemic and the death of George Floyd, Gasparino talks with Reason's Nick Gillespie about whether peak woke has ended and why he views people like Ed Rensi, the former head of McDonald's, as models for how businesses can make profits while being socially responsible. They also discuss how the 2024 election will impact the economy.
0:00—Introduction
1:12—The origins of Gasparino's book, Go Woke Go Broke
9:24—Bud Light X Dylan Mulvaney controversy
18:05—Corporate wokeness started with CEOs
25:06—Trump-world tried to save Bud Light
31:35—Ben & Jerry's pioneered corporate political activism
33:13—Wokeness at Disney
45:22—Does wokeness sell?
47:28—Where is the corporate advocacy for Uyghurs?
49:36—BlackRock, Larry Fink & ESG
59:00—How ESG worsened inflation
1:00:56—Ed Rensi's innovative interventions
1:05:52—Corporate wokeness is in recession
1:07:30—CEOs against campus wokeness
1:10:00—Would Donald Trump or Kamala Harris be worse for the economy?
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