3 Reasons CEOs Should Stand Up to Conservative Anti-Woke Bullying

Ron DeSantis may have dropped out of the presidential race, but the crusade he and his fellow conservatives are on against all things related to diversity, equity and inclusion (DE&I) shows little sign of waning. Last year saw Republican attorney generals in 21 states warning money managers about “pushing political goals,” and silly arguments that Silicon Valley Bank failed because it was distracted by “DEI and politics.” More recently, conservatives like Elise Stefanik toppled a pair of university presidents whose institutions they felt had become captive of DE&I, bragging “two down, one to go” on social media following the ouster.

As companies from Nike and Keurig to United Airlines and Kellogg’s come under fire for supporting women, people of color and trans people, the New York Times found that this is a targeted campaign. The paper uncovered “thousands of emails” amounting to a “playbook” for attacking companies and organizations supporting racial and gender equity. The message the campaign is sending is simple: “Back away from DE&I or else.”

Having advised executives and business leaders on DE&I issues for 30 years, CEOs would be smart to stand up to conservative bullying on issues of equity. Here’s why:

Smart leaders recognize DE&I is profitable. There is a clear moral reason to support inclusion. But as we saw in the wake of George Floyd’s murder in 2020, companies often increase their profitability when they’ve committed to DE&I. The protest in 2018 over NFL quarterback and Nike spokesman Colin Kaepernick’s anthem protest resulted in a 10% jump in the sneaker company’s sales. Despite claims that Kellogg’s “Together With Pride” partnership with the Gay & Lesbian Alliance Against Defamation (GLAAD) was “Supporting the homosexual agenda” and “just bad business,” the cereal maker is doing very well, indeed.

Savvy executives understand that DE&I creates more productive employees. How business leaders manage inclusion has a clear impact on employee morale and productivity. While former Disney CEO Bob Chapek’s botched response to DeSantis’ “Don’t Say Gay” law caused employee walkouts and resulted in a written apology to his workers, his successor, Bob Iger, refused to be bullied by DeSantis. Despite the company’s complicated history with LGBTQ+ issues, under Iger’s leadership Disney has refused to let a politician dictate its core values or turn away from its employees. In a world where people of color and women already comprise the majority of employees, Iger realizes it is in his company’s enlightened best interest to work with these populations, not against them — and that by treating all employees with dignity and respect they will be more motivated, inventive and productive.

Sharp CEOs see how DE&I taps into new markets. Inclusion can also help a brand reinvigorate itself or expand its customer base, as evidenced by AirBnB’s “Belong Anywhere” campaign or Target’s inclusive marketing and adaptive wear for populations of differing needs. Indeed, that was what Anheuser-Busch’s Alissa Heinerscheid was counting on when she initiated a March Madness partnership between Bud Light and trans influencer Dylan Mulvaney who had 10 million followers on TikTok. The 171-year-old beer company had clearly wanted to tap into this market since it celebrated Pride Month in 2019. With the Mulvaney campaign, the company was recognizing that inclusivity was critical to attracting young consumers to an iconic but outdated brand.

Despite the clear evidence that DE&I is good for business over the long haul, some leaders have been spooked. After Bud Light protests featuring Kid Rock shooting Bud Light cans with an assault rifle and presidential aspirant Nikki Haley mocking Mulvaney as “this man dressed up like a girl,” and a blip in the company’s share price, Anheuser-Busch was scared enough to put Heinerscheid on leave. It released a statement from its CEO that the company “never intended to be part of a discussion that divides people.” But by allowing itself to be bullied by a few celebrities into rejecting diverse employees and customers, it is doing just that.

Ultimately, what I try to remind CEOs is that while conservatives may talk a big game about taking their business elsewhere, in reality, the vast majority of consumers, voters and shareholders couldn’t care less. Despite opponents of racial and gender equity using conservative media and social media to intimidate and bully, corporate America and its customers are becoming more diverse, not less — with more dollars to spend, not fewer. That’s why leaning into values like inclusion and belonging is not only the right thing to do — it’s also the economically smart thing to do for your company.

Written by Colette A.M. Phillips.

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