The backlash against North Carolina’s bathroom bill in 2016 led to significant economic losses for the state, as corporate America took a stand against discriminatory policies. However, more recently, there has been a noticeable decrease in corporate activism on social and political issues. Despite a record number of anti-LGBTQ bills being introduced in state legislatures, and the erosion of abortion rights in many states, few major corporations are engaging in the same level of political advocacy as before.
There are a few reasons for this shift in corporate behavior. One possibility is that businesses were more willing to take risks when the economy was thriving and customer sentiment was high. Another reason could be that the backlash and financial costs of previous progressive campaigns have made companies more cautious in a deeply polarized country. Additionally, consumers and businesses may simply be experiencing “outrage fatigue,” where the constant stream of political conflicts has desensitized people to taking action.
Cait Lamberton, a marketing professor at the University of Pennsylvania’s Wharton School of Business, suggests that companies may be reevaluating their approach to corporate activism in response to changing consumer attitudes and market dynamics. While there was a trend in recent years for brands to align themselves with social and ideological causes, this trend seems to be evolving as consumer interests shift and the political landscape becomes more divisive.
The recent controversy surrounding Bud Light’s ad featuring a trans social media influencer highlights the challenges that companies face when navigating cultural and political issues. Brands must strike a balance between appealing to their customer base and taking a stand on important issues. However, missteps or perceived insincerity can have significant negative consequences for a company’s reputation and bottom line.
When it comes to highly contentious issues like abortion rights, companies may feel less empowered to advocate for change, as the courts ultimately have the final say. While some companies, such as Coca-Cola and Delta, spoke out against restrictive voting bills in Georgia, there has been less corporate pushback against abortion bans. Companies may feel that they have limited influence in this area and are unsure of how to effectively address the issue within their corporate sphere.
Overall, the shifting landscape of corporate activism reflects a complex interplay of economic, social, and political factors. While companies have a long history of taking ideological positions, the current environment of heightened transparency, polarization, and economic uncertainty presents new challenges. As companies navigate these challenges, they must carefully consider the potential costs and benefits of taking a stand on divisive issues, while also aligning their actions with the values and interests of their customer base.
