Corporate America got woke. Now it's having second thoughts.

🌈 Abstract

The article discusses the shift in corporate attitudes towards social and environmental issues, as companies are becoming more cautious in their rhetoric and actions on topics like sustainability, diversity, and political stances. This "great un-wokening" is driven by a backlash against "woke capitalism" from conservative groups, as well as companies' concerns about the potential business risks of taking strong stances on divisive issues.

🙋 Q&A

[01] Unilever's Shift in Approach

1. What changes is Unilever making to its approach to sustainability and stakeholder focus?

• Unilever is becoming more realistic about what it can achieve on sustainability and environmental goals, and is paying more attention to shareholder interests compared to its previous focus on all stakeholders.
• The company is not doing a complete U-turn on its environmental, social, and governance (ESG) efforts, but is being more cautious in its rhetoric and actions.

2. What factors are driving Unilever's shift in approach?

• The backlash against "woke capitalism" from conservative groups, which has made companies more cautious about taking strong stances on divisive social and political issues.
• Concerns about the potential business risks of being targeted by anti-woke outcries, as seen with the Bud Light controversy.

[02] The Broader Trend of Corporate "Un-Wokening"

1. What is the broader trend of corporate "un-wokening" that the article describes?

• Many companies are reining in their rhetoric and actions on sustainability, diversity, equity, and inclusion (DEI), and social/political issues, becoming more cautious and silent on these topics.
• This is driven by a backlash against "woke capitalism" from conservative groups, as well as companies' concerns about the potential business risks of taking strong stances on divisive issues.

2. How are companies changing their approach to ESG and DEI communications?

• Mentions of ESG and DEI in S&P 500 companies' quarterly earnings calls have dropped significantly in recent years.
• Some companies that made bold commitments on these issues are now scaling back or being more cautious in how they discuss them.

3. What are some examples of the backlash against "woke capitalism" that companies are responding to?

• The Bud Light controversy, where the brand faced scrutiny from the right for partnering with a transgender influencer.
• Target facing backlash and store displays being destroyed over its long-running Pride merchandise campaign.

4. How does the article characterize the underlying motivations behind companies' shift in approach?

• The article suggests that companies' commitments to social responsibility have always been limited, as the primary goal of executives is still profit-making.
• The "great un-wokening" may indicate that corporate America was never truly as committed to the "woke" agenda as it had publicly professed.