Donald Trump’s presidential victory came as a shock to many, especially outside of the US. There is no doubt that his return to the presidency will shake up what has become ‘the norm’ across politics, foreign policy and, particularly, business.
The fight against ‘woke’ businesses was one of the main themes of Trump’s successful re-election campaign. For Trump, his Democrat opponents have become too fixated on ‘identity politics’, far removed from the everyday lives of ordinary Americans. That sense of detachment seems to have hindered the Democrats and powered Trump to victory.
There are no clear definitions of what being ‘woke’ is and certainly not where it comes to business. It could be suggested that a woke business is one that actively, and vocally, promotes social values such as diversity, equity, inclusion, environmental sustainability, and social justice. These may be the focus of a business’s values so are championed through policies, engagement, marketing, advertising, partnerships and other forms of communication.
A DIVIDING LINE
Many businesses promote such values because of a genuine commitment to those causes. Others may have, for more commercial reasons, focused on them. Businesses have spent more time talking about such issues because they mean something to their consumers but also in an effort to attract younger workers. There is also a belief that such issues resonate with investors as well, especially those looking to update their portfolios and move away from, for instance, extraction industries.
Whatever the drivers of such communication, the idea of ‘woke businesses’ has been used as a dividing line.
Part of the initial reflection by Democrats as to why they lost so badly appears to be that they backed liberal causes that did not resonate with many in the electorate. That may prove not to be borne out once the election data is properly interrogated but once aired such reactions become difficult to reappraise or rectify.
This leaves businesses in a difficult position with the knowledge that an incoming president is against such communication and potentially without the support of politicians who had previously backed such positions.
BOTH SIDES OF THE ATLANTIC
This also is not just an issue for US-based businesses. The same waves of suspicion about businesses have been evidenced elsewhere, not least in the UK. Trump may have compiled a list of ‘woke companies’, and others, such as the newly elected Conservative leader Kemi Badenoch, may adopt a similar ‘naming and shaming’ approach.
So, how should companies respond?
The reality is that this is another risk that needs to be managed and there will be different strategies on offer depending on the motivations for the commitment to the cause. It could be consumer, employee, leadership-led, demanded by the supply chain etc.
Once the commitment has been assessed and committed to then how fulsome and public does the commitment need to be?
Some will choose to remain committed in a high-profile way. That need for genuine commitment and to possibly stand up in public to defend the organisation’s values comes into play. Others may prefer a lower key, ‘woke hushing’ approach meaning that the commitment remains, but little is said about it in a public way.
Another option may be to move away from the commitments but that is far from a zero-risk option as it may antagonise some stakeholders.
There is no doubt that those companies that adopt a values-based approach could be a target politically and Trump’s victory has made that more likely.
But a company should never think just about the politics and the reaction of politicians. There are other audiences to consider. They should, however, always plan for how they will manage those political audiences and never assume they have friends that they can rely upon.
Communication and engagement are key.
First published in Influence