Navigating the "Get Woke, Go Broke" Phenomenon

In recent years, the term 'woke' has emerged as a colloquialism describing individuals and companies that are actively attentive to important societal facts and issues, particularly those related to racial and social justice.

To be exact, the textbook definition of woke per Merriam-Webster is to be "aware of and actively attentive to important societal facts and issues (especially issues of racial and social justice),"

Initially the term is seemingly harmless: advocating for the rights of marginalized communities and promoting inclusivity.

However, the phrase "go woke, go broke" has gained traction as a slogan used to criticize companies accused of exploiting progressive values for marketing purposes.

This blog delves into this intriguing phenomenon, examining how companies' ventures into "wokeness" have impacted their financial success and public image and how to strike the right balance of authentic DE&I.

The Target Saga:

One prominent example of the "go woke, go broke" narrative is the retail giant Target.

The organization promoted LGTBQ+ underwear for children. CEO Brian Cornell proudly defended the company's diversity, equity, and inclusion initiatives in response to objections raised by conservative groups regarding the LGBTQ+ merchandise. Despite well intentions, unfortunately Target's decision to cater to a niche market backfired dramatically.

Within a mere 10 days of Cornell's statement, the company incurred losses exceeding $10 billion, causing a significant dip in its stock price. Target's sales plummeted, and they were compelled to backtrack on certain products that were eventually deemed offensive.

Disney's Foray into Wokeness:

The Walt Disney Company, a global entertainment giant, also experienced the consequences of what some individuals are calling “excessive wokeness”. By introducing gay, lesbian, transgender, non-binary, and other minority characters into its animated series and films, Disney hoped to foster inclusivity. However, these moves triggered a significant backlash. Several movies, including "Lightyear," "The Little Mermaid," and "Elemental," were dubbed "flops" at the box office, and caused significant negative media attention.

In response to mounting controversies, Disney's chief diversity officer, Latondra Newton, resigned from her position. This incident serves as a cautionary tale for companies seeking to navigate the complexities of diversity and inclusion without alienating their core audience.

Bud Light's Backfire Story:

Perhaps the most prominent recent example is Anheuser-Busch's beer brand, Bud Light, which made headlines for employing transgender social media personality Dylan Mulvaney to promote its product. The company's gesture of sending her a commemorative can to celebrate her transition garnered widespread attention, but not in the way they had hoped.

Sales took a nosedive, impacting not only Bud Light but also the parent company's other beer brands. In just six weeks, the brand's stock valuation decreased by over 23 percent, resulting in a staggering loss of more than $15 billion. This example demonstrates that companies must tread carefully when aligning themselves with progressive movements, as a misstep can lead to dire financial consequences.

Embracing Genuine DE&I Efforts: Striking the Right Balance

Diversity, Equity, and Inclusion (DE&I) have unquestionably emerged as critical factors for job seekers, consumers, and investors in today's corporate landscape.

Alongside factors such as career development, work-life balance, and remote work opportunities, a diverse and inclusive workplace is now seen as essential for attracting and retaining top talent. This trend is particularly evident among Millennials and Gen Z, who strongly favor organizations that champion diversity (Kochhar, 2016). After all, a lack of representation can raise concerns about hierarchical and unequal cultures, potentially deterring top talent from joining or staying with the organization.

Consumers have increasingly expected large corporations to take a stand on social issues related to historical oppression and prioritize representation. Studies indicate that a significant portion of U.S. adults associate the social, environmental, and political views of CEOs with the values of the businesses they lead. Moreover, reports suggest that consumers are more inclined to trust brands that take a clear stance, with 43% favoring companies that express their positions on social, environmental, and political matters (Proulx, 2021).

Investors are also becoming more discerning, factoring in an organization's diversity efforts when making decisions about their investments (Pinilla & Hampole, 2020). This shift has led to Nasdaq Inc. mandating listed companies to have a minimum of two diverse directors, promoting gender and underrepresented minority or LGBTQ inclusion (Nguyen et al., 2020).

To meet expectations, companies are striving to demonstrate their commitment to DE&I through various means. They understand the importance of presenting a representative workforce to the public to avoid potential backlash. As a result, they often set ambitious diversity targets, launch hiring campaigns, and implement marketing initiatives to enhance their diversity image.

However, criticism arises when companies prioritize superficial diversity solutions instead of addressing the deeper systemic issues or taking meaningful action within their organization to foster genuine DE&I. Surface-level efforts, like merely showcasing historically marginalized groups or opportunistically aligning with social movements without tackling underlying challenges, is a recipe for backlash.

Finding the right balance in DE&I efforts is crucial. Companies need to ensure that their commitment to diversity is genuine and rooted in meaningful actions, rather than mere appearances. Taking sincere steps to create inclusive workplace cultures and implementing programs that promote equitable opportunities for all employees are vital.

But where do we draw the line? What constitutes authentic DE&I efforts that resonate with everyone?

Take a moment to consider: Has your organization publicly committed to promoting diversity, equity, or inclusion? Can you say in full confidence that this commitment was made with utmost integrity, or was it perhaps a response to the pressure to achieve instant and superficial diversity?

In my upcoming book, “Beyond Comfort Zones: The Real-Talk Approach to Diversity, Equity, and Inclusion” I explore the essence of genuine DE&I endeavors and emphasize the importance of moving beyond superficial approaches. Diversity is not just about optics but about building a culture of belonging as the key to sustainable success in DE&I.

The "go woke, go broke" phenomenon highlights the risks of exploitative practices in the name of progressiveness. It reminds companies that authenticity and sincerity in their DE&I endeavors are essential to maintain consumer trust and loyalty. Social media, as a powerful platform for consumer expression, can amplify both appreciation for genuine efforts and backlash against performative actions.

Ultimately, companies must recognize that DE&I is not a mere checkbox to tick off, but a continuous journey of growth and improvement that requires ongoing commitment, empathy, and understanding. By embracing genuine DE&I efforts, organizations can truly make a positive impact on their employees, customers, and society as a whole.

In a world where the "go woke, go broke" narrative looms large, safeguarding your organization's success has never been more crucial. If you're committed to navigating the complexities of Diversity, Equity, and Inclusion (DE&I) with authenticity and purpose, I invite you to be a part of my launch team.

Join My Launch Team Today and Receive a Complimentary PDF Copy of My Book!

As a team member, you'll have the opportunity to provide valuable feedback, share your experiences, and be part of the genuine DE&I movement. Together, we can inspire positive change and drive meaningful progress in the corporate world.

Works Cited:

Kochhar, S. (2016). Millennials@Work: Perspectives on diversity & inclusion. https://instituteforpr.org/millennialswork-perspectives-diversity-inclusion/.

Proulx, Mike. “A Brand’s Values Must Withstand the Pressure of Politics.” Forrester, 15 Apr. 2021, www.forrester.com/blogs/a-brands-values-must-withstand-the-pressure-of-politics/.

Pinilla, M., & Hampole, N. (2020, October 7). Investors are committing to action on diversity. Now what?: Blog: Sustainable Business Network and Consultancy.” BSR, https://www.bsr.org/en/our-insights/blog-view/investors-are-committing-to-action-on-diversity-now-what.

Nguyen, L., & Green, J. (2020, December 1). Nasdaq joins Goldman in corporate push for more diverse boards. Bloomberg. https://www.bloomberg.com/news/articles/2020-12-01/nasdaq-plans-to-require-more-diversity-on-listed-company-boards.