The wave of corporate activism following events like George Floyd's murder has receded. Many business leaders now believe that social engagement 'went too far' and have retreated to focusing on their businesses, avoiding controversial political topics.
Faced with a politicized environment, Mercy Corps temporarily removed web pages with terms like 'climate.' The goal was not to abandon the mission, but to find new language to describe their work without triggering political opposition, allowing them to continue engaging stakeholders effectively.
In just five years, the corporate environment has swung from encouraging open discussion on social issues like race to fearing it. This "whipsaw" is driven by ideological extremes on both sides, making it difficult for leaders to find a rational middle ground for authentic engagement.
Bozoma Saint John argues that modern audiences expect corporate leaders to have and express a point of view on important issues. Avoiding a stance to prevent risk is no longer an option. Taking a stand and dealing with potential backlash is now an integral part of an executive's job.
Patagonia avoids performative activism by only speaking out on issues where it has deep-seated authenticity (business and environment) and can be genuinely additive to the conversation. This strategic filter helps them navigate when to engage and when to stay silent.
Activism isn't binary. A 'covert' approach involves expressing values through business decisions like partnerships, hiring, or amplified voices. This is a valid, often safer, alternative to direct 'overt' public statements, allowing for a spectrum of engagement based on comfort and capacity.
True corporate values are steadfast principles that guide a company regardless of the political or social climate. Values that are easily discarded when they become controversial are not core values but rather branding exercises. This inauthenticity risks significant consumer backlash when exposed.
Top tech leaders are aligning with the Trump administration not out of ideological conviction, but from a mix of FOMO and fear. In a transactional and unpredictable political climate, sticking together is a short-term strategy to avoid being individually targeted or losing a competitive edge.
Reflecting on his own experiences, Elon Musk advises business leaders to stay out of politics. He concludes that engaging in the political arena is a 'blood sport' where opponents 'go for the jugular,' and that his conclusion is to do less of it.
Don't expect corporate America to be a bulwark for democracy. The vast and growing wealth gap creates an overwhelming incentive for CEOs to align with authoritarians who offer a direct path to personal enrichment through cronyism, overriding any commitment to democratic principles.
The new iteration of "woke" is less about confrontation and more about subtle integration into mainstream culture. It makes progressive ideas palatable to a wider audience, achieving cultural penetration without triggering a culture war, a trend dubbed the "evolution of woke."