How Conservatives Can Win the Corporate Culture War
How Conservatives Can Win the Corporate Culture War
Companies must let consumer opinion prevail or risk destroying their brand
(Transgender influencer Dylan Mulvaney holds a promotional Bud Light beer can. Source: Dylan Mulvaney’s Instagram)
A contentious issue in America’s raging culture war is the adoption of progressive (or “woke”) beliefs by large corporations. GOP-led crackdowns on these supposedly left-wing corporations have become a common sight, with fear of conservative culture fading into irrelevance. Are these actions based on impulsive, misguided reactions or legitimate concerns?
The Republican Party, once an omnipresent force that fought for businesses — big or small — has run amok in the face of corporate politics. In 2023, Governor Ron DeSantis fumbled a $1 billion Disney project in Florida, with company executives citing “anti-business” practices in a state once known for its business-friendly climate. The reason the relationship went sour: DeSantis claimed Disney went “woke” and repealed most of Disney World’s tax cuts.
At the empirical level, researchers at Harvard Business School have attempted to debunk these claims of a “woke” corporate America. They claim that corporate America is moving further right, with more executives registering as Republicans and donating more to the GOP than in previous years.
While these researchers set out to debunk the theory that U.S. corporations have become progressive, their reasoning is fundamentally flawed. The political leanings of top executives are in no way indicative of the political trend of their employer. These executives are astute businessmen and understand that publicly espousing conservative viewpoints in 2023 is a recipe for disaster, considering the phenomena of cancel culture and the broader trend against freedom of speech.
There is, however, considerable evidence that many corporations are suddenly adopting progressive messaging, both internally and externally. Notable brands such as The North Face and Bud Light have deviated from their relative neutrality towards social issues, recruiting drag queens and transgender activists for advertisement campaigns.
Furthermore, Fox Corporation drew fire from the right when the “inclusive” resources and monitoring practices for their employees were revealed to the public in early 2023. Recommended literature includes graphic erotica and dialogue that refers to the United States as “a genocidal empire.” Staff are also directed to sign up for Eskalera, an artificial intelligence program that tracks all interactions between employees and assigns each one scores on the “diversity index” and “inclusion index.” Worse scores can result in employee pay reductions.
Whether these practices are deplorable or crucial to promoting a safe workplace for all, it is in the best interest of the Republican Party to not intervene.
The end purpose of a corporate C-suite is to generate a profit. Whether they believe pandering to progressives aids that goal is their decision. Companies have no restrictions on their ability to profess political viewpoints; the First Amendment protects their statements as it does for citizens.
The GOP has enjoyed a reputation as the party of free markets and constitutional integrity. If it is to have a future, this must not change. This includes Republicans allowing perceived corporate “wokeness” to continue.
Luckily, conservatives do not need direct intervention to win the culture war. Instead, they must rely on consumer choice.
Less than half of U.S. adults believe that companies should take public stances on current events. In sharp contrast, 71.5% of expert panelists surveyed by MIT’s Sloan Management Review believe that corporations should continue to remain politically involved, with only 7% disagreeing. This exhibits a disconnect between the public and what the experts believe is the right path corporations should take.
Additionally, reports show that investors are beginning to lose faith in progressive ESG (environmental, social, and corporate governance) funds, with ESG funds in the U.S. seeing net outflows of $15.4 billion in the second quarter of 2023 alone. Anheuser-Busch recently reported that their Bud Light misstep cost them $395 million in revenue, Companies that remain neutral on social issues are significantly outperforming those that aren’t.
Thus, let them self-destruct. If becoming politically charged is what executives believe will boost the balance sheets, let it happen. The markets will take care of themselves, and politically charged corporations will fail.
[The opinions expressed in this magazine are the author's own and do not reflect the official policy or position of The Spectator, or any students or other contributors associated with the magazine. It is the intention of The Spectator to promote student thought and civil discourse, and it is our hope to maintain that civility in all discussions.]
