Joe Santana: DEI strategist, author, speaker, Forbes Business Council member, and CEO of Joseph Santana, LLC.
Here’s a riddle. What do Disney, Target, the Los Angeles Dodgers, a whole other slew of companies and, most recently, Bud Light, have in common? The answer is easy. They’ve all gotten caught up in the culture wars.
While the aftermath of the murder of George Floyd and other Black citizens in the United States triggered an increase in vocal support for diversity, equity and inclusion (DEI) on the part of the leaders of major organizations, an “anti-woke” backlash brewed in the background and is now on many news headlines. The most prominent of these was the war between the governor of Florida and Disney until Anheuser-Busch drew all the heat to themselves following their 2023 Super Bowl commercial. Considering this, many CEOs might hesitate to take any supportive position for or against DEI.
And, of course, that is precisely what the dissenting crowd wants these CEOs to do. Either support their positions or be quiet. But that would be a mistake. Many studies show that consumers want their brands to take a stand and support the values that they support. For example, according to McKinsey, two-thirds of consumers use their values to determine their shopping habits. Another study tells us that 77% of consumers prefer to buy from companies that share their values. Other polls reveal that most people support DEI and that this number is growing. Neutrality is, therefore, not a good option.
So considering all this, how can today’s CEOs safely navigate their brands amid loud, heated, divisive controversies? As a DEI strategist, here’s my simple, two-part advice.
Listen to the signals and not the noise.
To better understand what I mean, let’s first look at the meaning of the terms signal and noise. In electronic communications, “signal” refers to the meaningful information or data transmitted or received. It represents vital information. The term “noise,” on the other hand, refers to any random disturbances that interfere with the quality of a signal during transmission or reception. So, for example, if you were listening to a radio station in an area with a lot of trees and mountains, the music or announcer’s voice would be the signal, and the crackling noise produced by bouncing signals and interference making it hard to hear the announcer or the music clearly would be the noise.
So what constitutes the signals in today’s social and business landscape relative to DEI? I’d say the fact that, according to the U.S. Census, by 2045, the United States’ majority population will be comprised of former minorities. Here’s another fact. Companies that are effective in DEI are already out-earning companies that are not by 35%. And here’s a third signal: According to a Boston Consulting Group study, these more diverse companies earn 19% more revenue from innovation. Tally all this up, and here is what these signals tell us: The 21st-century workforce and marketplace will be increasingly diverse, and we are already seeing a positive economic impact on companies that embrace DEI that is only set to increase as we continue through this transformation. So the signals here tell us that DEI is currently an economic performance multiplier set to become even more potent as we journey deeper into the increasingly diverse 21st century. Everything else is just noise.
Organizations should abandon the old rule of remaining neutral and pleasing everyone to succeed in today’s and tomorrow’s increasingly diverse and currently divided society. Instead, focus on your true values.
After you take a position, stand firm.
Let’s look at recent news surrounding Bud Light. Anheuser-Busch, the brewer of Budweiser, faced declining sales. To reach a broader customer base, including women and younger adults, they ran a promotion with transgender social media star Dylan Mulvaney. The commercial sparked a boycott and controversy among some customers. The company’s response was slow and indecisive. The company’s final communication attempted to appease vocal consumers while holding onto its new marketing targets. Ultimately, Bud Light’s sales volume dropped by over 28% compared to the previous year.
Compare this to Nike’s response and results in 2018 when they ran ads featuring controversial quarterback Colin Kaepernick, which sparked outrage and led to some burning Nike shoes and railing against the company. Nike didn’t run away. They leaned into it, watched sales rise 10% and earned $847 million.
The message here is don’t try to pander to dissenters after you choose to pursue the progressive 21st-century market. Be like Nike and not like Bud Light. Embrace the future and let go of the past. After taking a thoughtful and sincere position, inform opposing consumers that while you understand their preferences, this is your company’s stance.
Conclusion
In conclusion, business leaders must prioritize positions guided by signals, not extreme noise. They should anticipate and embrace backlashes, refusing to retreat. It’s time to accept that clients seeking a return to the past cannot be retained while pursuing a progressive 21st-century market. Organizations must abandon neutrality and the quest for universal approval to thrive in our increasingly diverse and currently divided society. Instead, prioritize true values and growing markets, rejecting valueless pandering. Communicate your sincere position to opposing consumers, acknowledging their preferences while standing firm in your company’s stance. Action and authenticity are the keys to success.
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