America’s racial reckoning, spurred by the killing of George Floyd last May, has inspired companies to increasingly take public stances on social justice issues.
Some corporations, such as Citigroup and Yelp, have demonstrated their support through monetary donations. Others have sought to address their role in perpetuating injustices, with several companies, including Amazon and Goldman Sachs, setting company-wide diversity goals. Last June, IBM said it would no longer sell facial recognition software to law enforcement after seeing the biases within the flawed technology. Later that month, Quaker Oats announced it would redesign its 130-year-old Aunt Jemima brand, which had been based on a racial stereotype. Even still, Americans say there’s much work to be done.
Just 32% of the U.S. population feels the country has progressed in addressing racial injustice over the past year, according to the Edelman Trust Barometer. While the changes companies have made haven’t gone unnoticed, Americans expect more, with 55% saying they want to see brands do more than make statements and monetary donations. And they’re rewarding those who step up: According to a recent survey of nearly 4,000 American adults by marketing consultancy Ketchum, 20% of consumers are more likely to support companies and leaders who publicly advocate for social justice causes and prioritize diversity and inclusion in their charitable efforts and hiring practices.
The events of the past year have played a significant role in shaping these expectations, says Jeremy Guterl, director of Ketchum Analytics. “Covid-19 and Black Lives Matter protests dovetailed into a catalyst for people to really reconsider what was important to them,” he adds.
Although some companies have taken steps that have been well-received, others have fumbled in the public eye. Ahead of Juneteenth, Old Navy released an advertisement featuring Black influencers buying Juneteenth merchandise from the retailer. After receiving backlash for commercializing and trying to profit from the holiday, the company suspended the campaign. Similarly, Food & Wine faced criticism over an Instagram post picturing pieces of grilled watermelon, a type of fruit stereotypically associated with Black people, and a caption discussing Black American joy and resilience.
How a diversity campaign is received can make or break a brand’s public perception, not to mention customer loyalty. When 29% of consumers say they’d boycott brands that fail to follow through on their commitments, and 42% say they’d take their business elsewhere, according to a study from social media software company Sprout Social, the ramifications can be serious.
“People are holding brands to a new standard and are asking them to be stewards of accountability,” says Gilpin, CMO of Sprout Social. “As we work to adapt to these new expectations, brands must be willing to speak out and answer the call.”
As brands speak out and answer these calls, their actions must be authentic, especially when 32% of consumers form perceptions based on the positive impact companies have on society, according to a survey by public relations firm FleishmanHillard’s TRUE Global Intelligence practice.
Adrianne Smith, chief diversity officer at FleishmanHillard, advises companies to follow the adage “don’t talk about it, be about it” in their corporate activism, pointing to Beyonce’s Ivy Park as an example. In 2019, the Grammy-winning artist reportedly declined a partnership with Reebok over a lack of diversity within the company, instead teaming up with Adidas. (Reebok and Adidas are both owned by Adidas Group.)
“There is a distinct line that brands, brand makers, and influencers have to make. You really have to take action versus continuing to talk about it,” she adds. “And I think that's what consumers want is they want to see the brands do the work.”
Authentic corporate activism requires balancing intention and impact, says Smith, and the FleishmanHillard report lists the top three actions companies can adopt to be authentic on diversity, equity and inclusion:
Provide staff with educational training on unconscious bias and DEI training. Progress requires participation from everyone in an organization, from the CEO to entry-level employees. Those who lead such programs should take care not to personalize the issues discussed. “Learning is never something you should be offended by,” Smith says. “Understanding people's issues and communities and moments of discontent, should not be something that offends but it should be something that educates and strengthens who you are as an individual and an organization.”
Have a clear DEI strategy and goals. Before releasing public statements and initiatives, companies should conduct an internal cultural analysis. “It’s important that organizations continue to reinforce the messages and act upon it,” Smith says.
Ensure the voices of those from underrepresented backgrounds are heard and acknowledged throughout the decision-making process. Incorporating various voices and perspectives can better equip companies to create more authentic corporate activism initiatives. “We're in the age of accountability,” Smith states. “Let us then move from accountability to sustainability and how we are making sure that everyone has equal opportunity to be represented for access to opportunity and we can just thrive.”